Slide 1: Coaching Classes Market – India
September 2010
Slide 2: Executive Summary
Coaching class market in India is highly fragmented and regional in nature Coaching class market i worth INR X bn in 20--; expected to grow to INR V bn by 20-Market is divided into two parts – Private tuitions market and entrance test prep market
Market
Private tuitions makes up x% of coaching class market but has limited potential to scale due to high dependence on reputed local teachers Entrance test prep market is growing as this segment is process driven and easy to scale up
Types of coaching provided to students are academic and job oriented coaching Drivers: High propensity to spend on education, growth in double income nuclear families, high teacher-pupil ratio in schools and increase competition at graduation and post-graduation level, Rising number of aspirants for foreign degrees Challenges: Person centric business, change in entrance test pattern, lack of government and financial support, and lack of proper faculty and funds for education Coaching institutes are diversifying into mainstream education and opening pre - schools, K12 schools, B-Schools and vocational training institutes PE/VC firms also investing in coaching institutes with the capacity to scale operations Increasing demand for online tutoring in domestic market Demand for correspondence coaching materials also increasing Few players like AA have been able to scale up operations in fragmented tuition segment Incumbent players like BB, CC. have y% market share in MBA test preparation space
Drivers & Challenges
LE P M A S
Trends
Competition
COACHING CLASSES MARKET IN INDIA 2010.PPT
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Slide 3: •Market Overview •Drivers & Challenges •Trends •Competition •Key Developments
COACHING CLASSES MARKET IN INDIA 2010.PPT
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Slide 4: Coaching classes market is highly fragmented and regional in nature
Coaching Classes Market – Overview
•Coaching classes accounts for major share of the informal education market in India •Coaching classes are a prominent feature in India that complements the mainstream education system •Estimated worth INRX bn in 20-- with high growth potential •Market is highly fragmented and regional or localized in nature •Comprises of two segments:
Market Size & Growth
INR bn
600 500 400 300 200 100 0
P% U X Y Z
V
Private Tuitions targeted primarily at students in Grade 5 - 12 Entrance Test Preparation Market targeted at:
– Graduate level (engineering, medical, BBA etc) – Post-graduation level (MBA, GMAT, GRE etc)
LE P M A S
20-20-20-20-20-Note: Figures are for the respective calendar years
Coaching Class Market Break-up (20--)
Segment 1 H% Segment 2 G%
I% Segment 3
Source: COACHING CLASSES MARKET IN INDIA 2010.PPT
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Slide 5: Drivers and Challenges – Summary
Challenges Drivers
High propensity to spend on education Growth in double income nuclear families and favourable demographics High teacher-pupil ratio in school Increasing competition at graduate and post-graduate level Rising number of aspirants for foreign degrees Person – centric business Change in entrance test pattern Lack of government and financial institutions support Lack of proper faculty and funds for education
COACHING CLASSES MARKET IN INDIA 2010.PPT
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Slide 6: Trends – Summary
Demand for correspondence coaching materials increasing
Coaching institutes enter mainstream education
Key Trends Increasing demand for online tutoring in domestic market
PE/VC firms showing interest in education sector
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Slide 7: Players in the Market (1/8)
Company Snapshot: Company A
Corporate Information
Headquarters Founded Courses Offered Key People City B 19--
Financial Performance
Total Income INR mn Profit q p y z r INR mn
200 150 100 50 0
Course 1, Course 2 Mr. Y
Business Highlights
• It is coming out with a public issue of INR J bn on date 20-• It has recently forayed into Education Consultancy and Management Services (ECAMS), catering to K-12 and Higher Education segments
LE P M A S
400 200 0
600
x 20--
20--
20--
Geographical Presence
x1 centres x3 centres x2 centres
x4 centres Number of centres pertains to
coaching centres only Source: COACHING CLASSES MARKET IN INDIA 2010.PPT
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Slide 8: Thank you for the attention
The Coaching Classes – India 2010 report is a part of Research on India’s Education Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal
Phone: E-Mail: +91 22 4098 7530 gagan.uppal@netscribes.com
Gaurav Kumar
Phone: E-Mail: +91 33 4064 6214 gaurav.kumar@netscribes.com
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