Description
It describes Industry Trends of education industry, PEST Analysis of education Industry, Competitor Analysis, SWOT analysis, Company Description, General Information about Educomp company, it's Finance performance, SWOT analysis of Educomp and Various Strategies employed.
Analysis Of
1
Table of content
Sr No 1 2 Introduction Company description Product lines Acquisition & Joint Ventures R&D 3 General information Shareholding pattern Management 4 5 6 7 8 Financial performance of the company SWOT Analysis Competitors STRATEGIES ROAD AHEAD Content Page no. 3 4 5 6 7 8 9 9 10 16 17 18 19
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1. Company Description
Educomp is the largest Education Company in India and the only company spread across the entire education system. Educomp group empoTheyrs over 20 million learners and educators across 32,000 schools to imagine, think and create a better future. From preschool toddlers to post graduate students, from core curriculum subjects at the school & college level to vocational & employability skills for young, about-to-enter-the-job-market adults; Educomp reaches out to the entire education life cycle. Educomp reaches out to over 5.3 million students in over 10,000 private schools, over 6 million students in over 11000 government schools. They also run over 840 pre-schools, 69 K12 schools, seven colleges, one higher education campus, 343 Vocational Training Centers, 74 Test Prep Centers, and have 4.2 million users of its online learning properties. Educomp is a leader in digital content solutions for the K12 segment. Educomp smartclass is its teacher-led educational content solution provider that improves learning outcomes in Private Schools. The smartclass Class Transformation System (or CTS) and the smartclass Digital Teaching System (or DTS) are the biggest and most innovative initiatives in the space of digital classroom content and digital classroom hardware respectively. For government schools its EduReach has partnered with 14 state governments, implementing large scale public-private-partnership projects, taking IT education and IT enabled learning to the remotest of schools across the nation. As part of this program, the Company sets up Computer Labs in Government Schools, provides Multimedia Content in regional language, testing and certification in computer education, full time assistants as Theyll as teacher training, monitoring and supervision. Educomp is in kindergarten space through Little Millennium and EuroKids; two of India’s chains of pre-schools. Its high school chains offer quality education across the socioeconomic spectrum from the richest of the rich to the poorest of the poor. Its chains of Schools under the brands of The Millennium Schools, Takshila Schools and Universal Academy Schools straddle across top tier cities, middle tier cities and semi-urban areas respectively. Its International Schools have been planned to become benchmark of the best practices in education. The Company also has a portfolio of iconic brands for co-branded schools with Shriram Schools, PSBB Group of Schools, Vasant Valley Schools, and Sri Kanchi Kamakoti Peetam. It is also present in education sectors like engineering, management and designing. Raffles Millennium International Colleges are an Educomp Raffles Joint Venture. These design colleges are operational in Delhi, Bangalore, Chandigarh, Kolkata, Hyderabad, Ahmadabad and Chennai. Armed with an international faculty, drawn from US, UK, Italy, Spain and Singapore, they offer classes in Fashion Design, Interior Design, Fashion Marketing, Graphic Design, Product Design, JeTheyllery Design, Commerce and Interactive Multimedia Design. Its JRE Group of Institutions deliver AICTE approved postgraduate and undergraduate programs in Management and Engineering.
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Its presence in each of the education verticals is marked with technology-enabled products, high quality people, structured processes and entrepreneurial leadership, that come together to deliver unmatched value. They have made significant forays into vocational training and employability skills. IndiaCan, an Educomp Pearson Joint Venture is amongst the top three players in its areas of presence. IndiaCan has over 340 points of presence across the country, reaching over 93,000 students through its three verticals across ETEN, PurpleLeap and Consumer Vocational.
Product Lines Their online and supplemental education solution is consistently reaching out to students and teachers with innovative solutions leveraging the best of technology. Educomp Online and WizIQ are premium e-learning platforms. LearbHub and Studyplaces are admissions advisory services of Educomp. Learning HIts and Mathguru offer etutoring. EduIgnite is an assessment and counselling arm of Educomp. Vidya Mandir Classes, Gateforum and Educomp Leap are Educomp’s popular test prep verticals.
4
5
Acquisitions and Joint Ventures Educomp entered US and Asia Pacific markets through acquisitions and partnerships. Its subsidiary, Wizlearn Technologies (formerly known as ASKnLearn) focused on Pan Asian market place is based out of Singapore. Wizlearn also caters to institutions of higher learning and corporate clients in Singapore, the Philippines, Indonesia and Brunei. They are currently expanding Its operations into China through Its partnership with CDEL (China Distance Education Holdings), China’s leading online education company. Its subsidiary in the US, Learning.com is the leading Theyb based K12 Company in USA. In Middle East Its Joint Venture Company is called Educomp Arabia Co Limited. Educomp Solutions Nigeria Limited has been registered as a doorway to Africa region.
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R&D The backbone of its expansion across the global value chain is a strong R&D dedicated to creating quality Content to serve the entire education ecosystem. The innovative bouquet of educational aids include 750 text books and work books, 19,000 lesson plans, 26,000 work sheets, 11,000 activities and 3,000 projects, over 500 teaching manuals.
2. General information
Educomp Solutions Limited, founded in 1994 by its current Chairman & MD Shantanu Prakash, is a globally diversified education solutions provider and the largest education company in India. The company, headquartered in Gurgaon, Haryana, today has 27 offices worldwide including an office each in Canada and Sri Lanka, two in Singapore, three in the United States, and 20 in India. Educomp reaches out to over 5.3 million students in over 10,000 private schools, over 6 million students in over 11000 government schools. They also run over 840 pre-schools, 69 K12 schools, seven colleges, one higher education campus, 343 Vocational Training Centers, 74 Test Prep Centers, and have 4.2 million users of its online learning properties. The Company is listed on the Bombay Stock Exchange and the National Stock Exchange. It has an employee base of over 10,000 professionals (including contractual employees with various state governments). Its commitment and sincerity in defining what learning can be, is what sets us apart. In the study India’s Best Companies to Work For 2009, Educomp was ranked the Number 1 Company in Education & Training. This study was conducted by The Economic Times in collaboration with the Great Place to Work Institute. The Great Place to Work Institute ranks Best Workplaces globally.
7
Shareholding pattern It is a BSE and NSE listed company having it shareholding pattern as follows:
others, 1.30% Bank/MF, 1.30% public, 11.70% Promoters, 49.50% Foreign instituteional investor/foreign financial Institution, 32.60% body corporate, 3.60%
Management Top management includes professionals from reputed institutes like IIMs, IITs having great experience in the field. Shantanu Prakash Sanjay Jain Ashish Gupta Gopal Jain Shonu Chandra Sankalp Srivastava Mr. Rajiv K. Luthra Dr. Shayama Chona Jagdish Prakash Mohit Maheshwari
Chairman and Managing Director Group CEO Sr.VP-Finance & CFO Directors Directors Directors Directors Directors Directors Secretary
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3. Financial performance of the company:
9
10
11
12
13
FACTSHEET:
14
4. SWOT Analysis
STRENGTHS First mover advantage Develop content in regional languages. Huge subscriber base Innovations- easy to understand. Expanded into developing educational products that Theyre employment oriented. low prices against competitors. Expansion through -Acquisition and joint ventures abroad & integration and diversification strategies. Training for teachers acted as a barriers for new entrants. Shortage of teachers and NCLB helped it in tapping tutorial market (SES).
THEYAKNESSES Requires trained staff – so less teachers available. Devotion of time by female teachers. Govt. schools low spending on infrastructure. Awareness about other products than SMART CLASS. Dependency on EDUCOMP for technical assistance. Changes require investment. Charges on per student basis. 1. Dependent on no. students. 2. Dependent on reputation of school. Less acceptability in society.
OPPORTUNITIES NCLB act of US. Emerging IT era. Lack of standardize and high quality education in tier III towns. Shortage of over 2lakhs schools in country. Increased govt focus on education. Rising income of middle class segment & educational priority for Indian parents. Analysts expected company to register strong growth despite of economic slowdown.
THREAT It’s a capital intensive business. Being an emerging and growing business it invites competition. Analysts felt that payments from govt. could be delayed. Risk of change in govt. policy. Gaining acceptance in tier II and tier III cities.
15
5. Competitors:
Some of the prominent competitors of Educomp are as follows: CORE Education & Technologies Ltd. Everonn Education Ltd. Jetking Infotrain Ltd. NIIT Ltd. Nimbus Foods Industries Ltd. Software Technology Group International Ltd. Zee Learn Ltd.
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6. STRATEGIES
EDUCOMP recognized scope and opportunity for providing IT Enabled learning solutions in Indian schools in mid 90s.initially it concentrated on increasing awareness of computers among students and teachers. EDUCOMP has two subsidiaries – 1. EDUINFRA 2. EDUMANAGE EDUCOMP deployed a trained program administrator at every school that implemented smart class. Smart assessment system (SAS) was available for teachers so that they could frame multiple choice questions to assess students. It focused on acquisitions, acquired equity stakes in global companies like Learning.com, Ask n learn Pvt ltd, to expand its smart class product globally. For govt. schools, they adopted PPP strategy and also provided content in regional languages.. They partnered with WIPRO & MICROSOFT and many NGO’S for executing its teacher training program. It follows the franchising route to expand pre schools. It handled issue of lack of good faculties at smaller locations by VSAT enabled learning centers.
17
7. ROAD AHEAD They created competitive edge by providing innovative products like Parent empoTheyrment program, Kindermusik. It plans to serve 15 million learners by 2010 & aims to become top 5 K-12 education companies worldwide by 2012. It is to expand it courses offered and include business management ,hospitality and tourism management to enhance employability.
It plans to develop schools in collaboration with real-estate developers. “Contrary to popular beliefs education is highly valued by people of all classes and communities of India, therefore there is increasing pressure from people at bottom of the social pyramid for quality education with a rising no. of families prepared to spent large proportion of their household incomes to provide high quality education to their children and EDUCOMP hope to facilitate this process….” -SHANTANU PRAKASH
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doc_310685498.docx
It describes Industry Trends of education industry, PEST Analysis of education Industry, Competitor Analysis, SWOT analysis, Company Description, General Information about Educomp company, it's Finance performance, SWOT analysis of Educomp and Various Strategies employed.
Analysis Of
1
Table of content
Sr No 1 2 Introduction Company description Product lines Acquisition & Joint Ventures R&D 3 General information Shareholding pattern Management 4 5 6 7 8 Financial performance of the company SWOT Analysis Competitors STRATEGIES ROAD AHEAD Content Page no. 3 4 5 6 7 8 9 9 10 16 17 18 19
2
1. Company Description
Educomp is the largest Education Company in India and the only company spread across the entire education system. Educomp group empoTheyrs over 20 million learners and educators across 32,000 schools to imagine, think and create a better future. From preschool toddlers to post graduate students, from core curriculum subjects at the school & college level to vocational & employability skills for young, about-to-enter-the-job-market adults; Educomp reaches out to the entire education life cycle. Educomp reaches out to over 5.3 million students in over 10,000 private schools, over 6 million students in over 11000 government schools. They also run over 840 pre-schools, 69 K12 schools, seven colleges, one higher education campus, 343 Vocational Training Centers, 74 Test Prep Centers, and have 4.2 million users of its online learning properties. Educomp is a leader in digital content solutions for the K12 segment. Educomp smartclass is its teacher-led educational content solution provider that improves learning outcomes in Private Schools. The smartclass Class Transformation System (or CTS) and the smartclass Digital Teaching System (or DTS) are the biggest and most innovative initiatives in the space of digital classroom content and digital classroom hardware respectively. For government schools its EduReach has partnered with 14 state governments, implementing large scale public-private-partnership projects, taking IT education and IT enabled learning to the remotest of schools across the nation. As part of this program, the Company sets up Computer Labs in Government Schools, provides Multimedia Content in regional language, testing and certification in computer education, full time assistants as Theyll as teacher training, monitoring and supervision. Educomp is in kindergarten space through Little Millennium and EuroKids; two of India’s chains of pre-schools. Its high school chains offer quality education across the socioeconomic spectrum from the richest of the rich to the poorest of the poor. Its chains of Schools under the brands of The Millennium Schools, Takshila Schools and Universal Academy Schools straddle across top tier cities, middle tier cities and semi-urban areas respectively. Its International Schools have been planned to become benchmark of the best practices in education. The Company also has a portfolio of iconic brands for co-branded schools with Shriram Schools, PSBB Group of Schools, Vasant Valley Schools, and Sri Kanchi Kamakoti Peetam. It is also present in education sectors like engineering, management and designing. Raffles Millennium International Colleges are an Educomp Raffles Joint Venture. These design colleges are operational in Delhi, Bangalore, Chandigarh, Kolkata, Hyderabad, Ahmadabad and Chennai. Armed with an international faculty, drawn from US, UK, Italy, Spain and Singapore, they offer classes in Fashion Design, Interior Design, Fashion Marketing, Graphic Design, Product Design, JeTheyllery Design, Commerce and Interactive Multimedia Design. Its JRE Group of Institutions deliver AICTE approved postgraduate and undergraduate programs in Management and Engineering.
3
Its presence in each of the education verticals is marked with technology-enabled products, high quality people, structured processes and entrepreneurial leadership, that come together to deliver unmatched value. They have made significant forays into vocational training and employability skills. IndiaCan, an Educomp Pearson Joint Venture is amongst the top three players in its areas of presence. IndiaCan has over 340 points of presence across the country, reaching over 93,000 students through its three verticals across ETEN, PurpleLeap and Consumer Vocational.
Product Lines Their online and supplemental education solution is consistently reaching out to students and teachers with innovative solutions leveraging the best of technology. Educomp Online and WizIQ are premium e-learning platforms. LearbHub and Studyplaces are admissions advisory services of Educomp. Learning HIts and Mathguru offer etutoring. EduIgnite is an assessment and counselling arm of Educomp. Vidya Mandir Classes, Gateforum and Educomp Leap are Educomp’s popular test prep verticals.
4
5
Acquisitions and Joint Ventures Educomp entered US and Asia Pacific markets through acquisitions and partnerships. Its subsidiary, Wizlearn Technologies (formerly known as ASKnLearn) focused on Pan Asian market place is based out of Singapore. Wizlearn also caters to institutions of higher learning and corporate clients in Singapore, the Philippines, Indonesia and Brunei. They are currently expanding Its operations into China through Its partnership with CDEL (China Distance Education Holdings), China’s leading online education company. Its subsidiary in the US, Learning.com is the leading Theyb based K12 Company in USA. In Middle East Its Joint Venture Company is called Educomp Arabia Co Limited. Educomp Solutions Nigeria Limited has been registered as a doorway to Africa region.
6
R&D The backbone of its expansion across the global value chain is a strong R&D dedicated to creating quality Content to serve the entire education ecosystem. The innovative bouquet of educational aids include 750 text books and work books, 19,000 lesson plans, 26,000 work sheets, 11,000 activities and 3,000 projects, over 500 teaching manuals.
2. General information
Educomp Solutions Limited, founded in 1994 by its current Chairman & MD Shantanu Prakash, is a globally diversified education solutions provider and the largest education company in India. The company, headquartered in Gurgaon, Haryana, today has 27 offices worldwide including an office each in Canada and Sri Lanka, two in Singapore, three in the United States, and 20 in India. Educomp reaches out to over 5.3 million students in over 10,000 private schools, over 6 million students in over 11000 government schools. They also run over 840 pre-schools, 69 K12 schools, seven colleges, one higher education campus, 343 Vocational Training Centers, 74 Test Prep Centers, and have 4.2 million users of its online learning properties. The Company is listed on the Bombay Stock Exchange and the National Stock Exchange. It has an employee base of over 10,000 professionals (including contractual employees with various state governments). Its commitment and sincerity in defining what learning can be, is what sets us apart. In the study India’s Best Companies to Work For 2009, Educomp was ranked the Number 1 Company in Education & Training. This study was conducted by The Economic Times in collaboration with the Great Place to Work Institute. The Great Place to Work Institute ranks Best Workplaces globally.
7
Shareholding pattern It is a BSE and NSE listed company having it shareholding pattern as follows:
others, 1.30% Bank/MF, 1.30% public, 11.70% Promoters, 49.50% Foreign instituteional investor/foreign financial Institution, 32.60% body corporate, 3.60%
Management Top management includes professionals from reputed institutes like IIMs, IITs having great experience in the field. Shantanu Prakash Sanjay Jain Ashish Gupta Gopal Jain Shonu Chandra Sankalp Srivastava Mr. Rajiv K. Luthra Dr. Shayama Chona Jagdish Prakash Mohit Maheshwari
Chairman and Managing Director Group CEO Sr.VP-Finance & CFO Directors Directors Directors Directors Directors Directors Secretary
8
3. Financial performance of the company:
9
10
11
12
13
FACTSHEET:
14
4. SWOT Analysis
STRENGTHS First mover advantage Develop content in regional languages. Huge subscriber base Innovations- easy to understand. Expanded into developing educational products that Theyre employment oriented. low prices against competitors. Expansion through -Acquisition and joint ventures abroad & integration and diversification strategies. Training for teachers acted as a barriers for new entrants. Shortage of teachers and NCLB helped it in tapping tutorial market (SES).
THEYAKNESSES Requires trained staff – so less teachers available. Devotion of time by female teachers. Govt. schools low spending on infrastructure. Awareness about other products than SMART CLASS. Dependency on EDUCOMP for technical assistance. Changes require investment. Charges on per student basis. 1. Dependent on no. students. 2. Dependent on reputation of school. Less acceptability in society.
OPPORTUNITIES NCLB act of US. Emerging IT era. Lack of standardize and high quality education in tier III towns. Shortage of over 2lakhs schools in country. Increased govt focus on education. Rising income of middle class segment & educational priority for Indian parents. Analysts expected company to register strong growth despite of economic slowdown.
THREAT It’s a capital intensive business. Being an emerging and growing business it invites competition. Analysts felt that payments from govt. could be delayed. Risk of change in govt. policy. Gaining acceptance in tier II and tier III cities.
15
5. Competitors:
Some of the prominent competitors of Educomp are as follows: CORE Education & Technologies Ltd. Everonn Education Ltd. Jetking Infotrain Ltd. NIIT Ltd. Nimbus Foods Industries Ltd. Software Technology Group International Ltd. Zee Learn Ltd.
16
6. STRATEGIES
EDUCOMP recognized scope and opportunity for providing IT Enabled learning solutions in Indian schools in mid 90s.initially it concentrated on increasing awareness of computers among students and teachers. EDUCOMP has two subsidiaries – 1. EDUINFRA 2. EDUMANAGE EDUCOMP deployed a trained program administrator at every school that implemented smart class. Smart assessment system (SAS) was available for teachers so that they could frame multiple choice questions to assess students. It focused on acquisitions, acquired equity stakes in global companies like Learning.com, Ask n learn Pvt ltd, to expand its smart class product globally. For govt. schools, they adopted PPP strategy and also provided content in regional languages.. They partnered with WIPRO & MICROSOFT and many NGO’S for executing its teacher training program. It follows the franchising route to expand pre schools. It handled issue of lack of good faculties at smaller locations by VSAT enabled learning centers.
17
7. ROAD AHEAD They created competitive edge by providing innovative products like Parent empoTheyrment program, Kindermusik. It plans to serve 15 million learners by 2010 & aims to become top 5 K-12 education companies worldwide by 2012. It is to expand it courses offered and include business management ,hospitality and tourism management to enhance employability.
It plans to develop schools in collaboration with real-estate developers. “Contrary to popular beliefs education is highly valued by people of all classes and communities of India, therefore there is increasing pressure from people at bottom of the social pyramid for quality education with a rising no. of families prepared to spent large proportion of their household incomes to provide high quality education to their children and EDUCOMP hope to facilitate this process….” -SHANTANU PRAKASH
18
doc_310685498.docx