Company Analysis of Firms in Education Sector

CORE EDUCATION

2003 - Incorporated

2004 – MoU with VSNL to

jointly serve customers with fleet

management services

2009- Supplying

alternate teachers is a big business in the UK and they

made a tie-up with Oxford University

for the same.

2006 Acquired Software

technology Services ,

USA for IT related

services

2007 Established

presence in UK with acquisition

of Hamlet , Symbia and

Azzuri which are involved in

consulting , technology and

IT services

2008 Acquired K-12

Education a unit of US based education

company for online support.

-order from Karnataka State Open University

(KSOU)

2005 - Entered US Market with

acquisition of Enterprise Computing

Services because they wanted to enter into cloud

computing

2010-order covering 947

schools from the Government of Maharashtra

-US contract for 375 schools covering 700,000

students

-Gets Gujarat Computer Aided Learning (CAL) project for 645 Schools

2011-gets Government approval to establish Industrial Training

Center-acquires US$ 35 million UK

based education firm

2012-Bihar Government

entrusts CORE Education to

digitalize primary education within the

state.-Mackeen and CORE

Education in joint venture for Qatar's

education transformation

2013

-launches its first International MBA program in association with Wilfrid

Laurier University

-Corporate Restructure forum approached for debt restructuring

-Cut the staff by 250 as part of revival plan

2014Decided to dispose non

core assets and real property worth Rs 400

crore as part of it’s revival strategy !!

2012-13 was very challenging for CORE in terms of decrease in sales , increase

in receivables , most of them due to late payment by Govt. Debt restructuring is being done using 200 crore of fresh funding. CORE has announced the launch of new products/services XLR8 and EXPLORE .

XLR8 is the new assessment platform and will take over the role of Assessment Center 3

CORE’s new partnership with T-Mobile, will allow them to offer broadband connectivity for all of our mobile devices

Tie-up with Anthro Corp - Along with technology furniture and mobile carts for laptops, Anthro and CORE are working together to create a security/charging cabinet for the Kuno solution. This solution will replace the current Jinx solution provided by Tech Innovations, which was not able to keep up with demand, and will allow CORE to be more competitive and achieve greater margins

CORE EDUCATION -Recent Developments

PRODUCT AND SERVICES

DESCRIPTION

K121. CORE ICT CORE ICT acts as an education service provider for computer education,

computer literacy, computer-aided learning and teachers’ training projects in schools

2. MODEL Schools CORE Model Schools are based on the belief that within every child is an innate potential for greatness. It identifies the specific skill set of each child and helps him/her derive motivation from within as well as from the environment.

3. CORE E-Content ( 2D and 3D )

CORE Education specializes in developing customized e-Content to meet the objectives of any educational environment in the K-12 domain. The content comprises of subject-specific 2D/3D animations, interactivity, voiceovers and assessments to aid comprehensions.

Employability Education services 1. CORE Vocational Training

The aim is to offer skill-specific training that will help students find excellent job opportunities in the global workplace.

CORE PRODUCTS/SERVICES

PRODUCTS AND SERVICES DESCRIPTION

CORE Higher Education Services1. Teacher Training Programs The training needs of Polytechnics & Engineering Colleges differ

and consequently, the training that the teachers need to undergo also has to be different. CORE Education builds customized Teacher Training modules depending on the type of the institute, course and the expectations. Teachers are qualified in the subject matter but sometimes lack industry exposure; hence the CORE Teacher training program addresses not just the technology needs and also offers the requisite industry exposure.

2. EDMASTERY Systematic assessment of employee performance is the key to unlocking their productivity. edMastery offers a robust, web-based testing and reporting system that delivers customizable assessments through a simple interface - that lets organizations aid their employees in mastering the requisite skills.

3. CORE Campus Management System ( CMS )

Managing the information workflow within a campus can be daunting. CORE CMS is a web based software package for the comprehensive Information Management and Decision Support System, including Administrative, Academic, Resource, Financial Management, Student Information, Student Tracking and Teacher Monitoring.



CORE ADVANCED TECHNOLOGY

CORE Education offers a wide range of technology-led educational products and services - from hardware and software acquisition to installation and maintenance, monitoring, administration and help desk to end-of-life-cycle Management.

CORE CONSULTING and STAFFING1. Contract Staffing K12 and Higher Education institutions have unique staffing needs. Both

types of organization are budget focused, seasonally affected, and require staff with specific skills. CORE provides staffing services on contract basis to education institutions.

2. Recruitment Services CORE assists clients in recruiting permanent staff to join their teams. They also provide market intelligence reports to clients to help them determine that the compensation and benefits offered are competitive with the market.

3. Consulting Services Through consulting services, they provide teams of subject matter experts work to assist a K12 School or University complete a project or deploy a new system.


Core Education has an order book of over 135,000 students with its vocational footprint in 14 states in India

CORE has 12000 ICT schools in india

They have bid for 50 model schools in india and have an order book of 1500 crore from India itself

REACH OF CORE ( INDIA)

FY 2006 FY 2012 FY 2013

Schools Served/Year

~15000 ~88,000 ~88750

Children reached/Year

~8,000,000 ~35,000,000 ~35,000,000

Teachers Covered/Year

0 ~100,000 ~105,000

Total Clients ~75 ~2,000 ~2,200 (+)

Total Countries served

2 15 15

Reach Of Core ( Overall )

Rs In Millions

FY2011 FY2012 FY2013

REVENUE 10,912.3 16,378.6 19,074.8 EXPENDITURE 6,994.5 10,120.5 11,964.0 EBIDTA 3,917.8 6,258.0 7,110.8 PBT 2,718.6 4,281.7 3,826.9 PAT 2,250.1 3,230.9 2,708.9 Net Worth 11,826.5 17,908.6 21,253.6 Total Assets 7,628.2 18,068.0 19,515.0

CORE FINANCIALS

INDICATORS FY11 FY12 FY13

EBIDTA Margin 36% 38% 37%PAT Margin 21% 20% 14%Debtor’s Months 5.38 4.48 4.26ROI 10.0% 9.1% 6.3%ROCE 17.4% 16.2% 11.5%

KEY INDICATORS

Initiatives in Vocational training to be taken in coming years as this area has less capital requirements and decent margins are on offer

Continuous Teacher Professional Development Program in association with Univ. Of Oxford to be launched to train teachers

Company is looking forward to starting programs in UAE with content support coming from BIT Ranchi. Expansion into Middle East and Africa is the focus for coming years.

Core has decided to stay away from setting up of schools as it requires infusion of capital. They want to focus more on services

FUTURE PLANS

EDUCOMP

E D U C O M P E D U C A T I

1994-Incorporation of Company

1998 Launched

eCampus – a student

information system

2008-Acquires 51pc stake in US-based Learning.com.

-Entered into a 50-50 strategic partnership with

EuroKids-Acquisition of 51% stake

in Takshila Managemet Services Pvt. Ltd

2003 Launched

Smart_ClassTM Content Solutions , Divested the

international custom content business to

Carlyle

2004ISO 9001: 2001 certification

for ICT solutions .Signed US pilot with Santa Barbara School Districts Entered the Asia Pacific

market with pilots in Singapore

2006Educomp Solutions signs Award of Contracts worth

Rs 500 mn. Educomp launches online maths

portal

2002 Set up a fully

owned US subsidiary Edumatics

Corporation and Launched

Learning Mate NHance , a

Learning Content Management

Platform

2009-Announces Joint

Venture with Pearson to support Vocational

Learning in India

2011-Educomp, India Today group

firm in pact to set up 30 schools.

Acquired Gateforum in Feb 2011

Gateforum is a leader in India for providing preparatory

tools for Graduate Aptitude Test in Engineering (GATE),

2012- Cut 3,500 jobs in

the last three months and has also initiated

measures to spur growth.

- Gurgaon based firm hired to facilitate structure , system and sales related

strategies

2013- Educomp and HCL partner

forBusiness Standard ( Life Cycle

Services)-Sold IndiaCan to JV Pearson.

- Sold all Euro Kids shares.- Initiated discussions with its lenders and has approached

corporate debt restructuring (CDR) forum to restructure its rupee debt to correct the asset

liability mismatch on its balance sheet.

O N

2010Acquired

Vidyamandir classes (VMC) in August

2010Educomp Solutions picked up a strategic stake in engineering

test prep player Vidya Mandir Classes

(VMC) for Rs 340 million

It migrated back to BOOT Model in 2013 for its Smart Classes - a model where hardware costs will have to be paid up front.

Entered into a 5 Yr contract with hardware vendor Haier for hardware services / products. Tied up for Rs 200 crore school financing from a leading private sector bank In the FY 2012-13 they came up with a number of new products such as Smartclass Tab , English

Mentor and EduIgnite that have been discussed in detail later. Their plans of consolidation has started with the aim of more cutomer centric services than function

centric ones. They have decided to do away with all their loss making businesses Went for a strategic JV with Raffles Foundation , Singapore

EDUCOMP RECENT DEVELOPEMENTS

Educomp was making its debts disappear by forming a dummy company named EduSmart which took 5yr contracts on behalf of Educomp and pledged bank to give it money upfront which it then handed over to Educomp

Inspite of such negative news , Educomp raised $150 million in a new funding from a foreign investor.

EDUCOMP RECENT DEVELOPEMENTS

PRODUCT AND SERVICES DESCRIPTION

Smart Class Involves setup of 3D Labs and digital content library and teaching system.

ICT ( EduReach) Teacher training and content developement

Vocational Training Ended its JV with Pearson by selling its stake in IndiaCan

Higher Education -JV with Raffles-Partnership with Great Lakes Institute of Management-Programs for Design, Engineering, Business Administration and Business Studies

Pre Schools Sold all its stake in EuroKids

Online and Supplemental Education

-Test Preparation (Gateforum, VMC, Leap)-Admission Advisory services (Learnhub, Study Places)

EDUCOMP BIZ VERTICALS


SMARTCLASS TABLETS This is a revolutionary tablet product launched by the Company in the first quarter of FY14. Keen to capitalize on the immense, unfolding digital opportunity, the Company has developed this game-changing product,which is aimed at eventually replacing schools bags.

ENGLISH MENTOR English Mentor –successfully test launched in FY13.English Mentor has been evolved as a unique English Learning programme that bridges the gap between academic learning and skill development.

EDUIGNITE Self assessment product for students.Acts as a career guidance tool, with extensive psychometric tests, counselling, one-to-one sessions, interactive seminars

EDUCOMP BIZ VERTICALS

Reached to 14823 schools and 6.8 million students

Number of Smart Class classrooms went up from 6.5 mn in 2012 to 13.3 mn in 2013

ICT ( Eureach ) reached 10771 schools with 5.9 mn students

K12 segment present in 51 schools now

REACH OF EDUCOMP

FY09 FY10 FY11 FY12 FY130

2000

4000

6000

8000

10000

12000

14000

16000

17373077

6538

12562

14823

EDUCOMP REACH

Number of schools with SmartClass


2000

4000

6000

8000

10000

12000

14000

16000

18000

6004

15426

1057211535

10771

Number of schools with ICT

Rs In Millions

FY2011 FY2012 FY2013

REVENUE 13,509.0 14,912.8 12,109.3

EXPENDITURE 7,941.1 10,781.1 10,592.6

EBIDTA 5,567.9 4,131.7 1,516.7

PBT 4,083.1 1,945.3 (1,532.9)

PAT 3,405.3 1,370.6 (1,428.8)

Net Worth 21,784.4 25,045.4 26,847.2

Total Assets 21,471.1 27,652.3 27,893.7

EDUCOMP FINANCIALS


EBIDTA Margin 41% 28% 13%

PAT Margin 25% 9% -12%

Debtor’s Months 5.41 8.28 15.22

ROI 8.0% 2.6% -2.6%

ROCE 11.8% 5.7% 0.8%

KEY INDICATORS

Educomp , in the coming yrs , plans to ONLY facilitate the training of resource co-ordinators for it’s smart classes which will reduce it’s HR and administrative costs.

They plan to get into a bilateral business model with customers with no room for middle men or vendors. They also plan to exit most of the supplemental groups by the end of FY 14 except it’s US subsidiary Learning.com in which they see immense potential to do well in coming years

They have decided not to make any major bids for some time and focus only on the work in hand and services they offer- a strategy to reduce their working capital expenditure in ICT related business.

In K12 ,rationalisation of expenses to be done to reduce expenses and focus will be on consulting business and at the same time the aim will be grow the K12 school portfolio to 100 JV schools in next 5 years .

FUTURE PLANS

EVERONN EDUCATIONS

EVERONN EDUCATIONS LIMITED

2000 – Formation of Everonn

Systems Ltd after being founded in

1987- Gets contract for

330 schools in Tamilnadu

2004Launched Zebra CrossSM Virtual

Classroom networkCreate

Knowledge n Resource Deptt.

2002Partners Hughes Net for virtual

classrooms

2007Point of presence has crossed 2000

Institutional Education and

Virtual classrooms

2010Everonn’s Global

School of Business

launched in Chennai

Enter vccational educatio space

2006Launch of

Retail Centres to

cater to varied

segments of customers.

2005 Test Launch of Virtual Learning at schools and Corporates.

2009-Starts counselling

services for students-First co. to Starts education on move

through mobile phns-Launches Education

India program to build institutes

-Launches pre school programs

- Chnaged name from Everonn systems to Everonn education

2011Launch of ‘International Skills School’. The first Master

Resource-Engenious schools for rural children launched

-Launch of 'Everonn World' to facilitate further dissemination of Everonn’s products and services

Everonn's subsidiary also inked a deal with National Skill Corporation Development a few months back, which is expected to fetch an estimated revenue of Rs 14, 000 crore to the company

- Everonn MD arrested for bribery and tax evasion charges followed by chairman JJ Irani resignation.

Inspite of this , Varkey Group bought 12 percent of their shares

2012-Acquires Centum

Learning from Bharti Group to expand its reach in the Indian

training space- Partners Micromax to

offer curriculum support programmes on Tablets

-Varkey Group takes over tha management

after buying majority of shares

2013-Everonn Education approves

debt restructuring plan-Terminated its plans to buy

Centum Learning Ltd, a privately held company of the

Bharti Group-Everonn slumped 8 percent to

Rs 54.50 after rating agency CARE downgraded the

company’s credit rating to default. The company has been unable to pay interest on Rs 810 crore worth of loans to banks.

PRODUCT/SERVICES DESCRIPTION

Instructional Computing Technology (ICT)

Providing computer education, computer literacy and computer-aided learning projects for several Government Schools across the country

School solutions (iSchool) Combines the orthodox system of learning with digitized content and teaching tools to make learning an interactive experience. iSchool's multimedia based digital content is mapped to a given syllabus for interactive sessions

Everonn World Envisages promoting people with entrepreneurial skills onto education. Training services are delivered through technology enabled classrooms, linked to the Everonn Studios at Chennai and New Delhi through a dedicated V-Sat infrastructureAt present there are 21 Everonn World centers operating in various parts of the country with a capacity to train 6700 every day

PRODUCTS AND SERVICES

PRODUCTS/SERVICES DESCRIPTIONTechnology Solutions • Knowledge Solutions comprise of Knowledge

Resource Development & Research, Digital Learning and Teacher Training• Software Solutions provide Office Automation and Institutional Resource Planning • Platform Solutions facilitates the Virtual Learning Environment

Primary Education Caters to the K-12 segment by setting up brick-and-mortar schools that follow varied curricula. These include a chain of Pre Schools, CBSE Schools and Budget schools

Vocational Education Imparts industry relevant skills/ vocational training - skill, reskill and up-skill - to students across nine of the 20 high-growth sectors identified by National Skill Development Corporation (NSDC)


Area FY 10 FY 11

Schools operational in 5862 6628

Schools signed up for iSchool 1017 1455

Colleges signed for Everonn World

1567 1920

EVERONN REACH

Note:-

1. ICT has two projects in the pipeline which includes 4396 schools in Karnataka and 4424 schools in Gujarat. 2. VITELS at the end of FY12 stood at 1,497, colleges at 1,955 and Retail centers at 59 . With respect to the schools

business (within VITELS), EEDU continues to maintain the trend of increasing penetration on a per school basis. For FY 2012, average number of classrooms per school stood at 3.0 against 2.2 in FY11.

Rs In Millions

FY2011 FY2012 FY2013

REVENUE 4247 3596.2 1229.6

EXPENDITURE 2692.2 3473.9 2268.5

EBIDTA 1554.8 122.3 (1038.9)

PBT 951.7 (1217) (5136)

PAT 676.4 (905) (3281)

Net Worth 5,282.8 5,886.9 2,605.9

Total Assets 8,336.9 12,577.6 10,790.8

EVERONN FINANCIALS


EBIDTA Margin 37% 3% -84%

PAT Margin 16% -25% -267%


ROI 8.1% -7.2% -30.4%

ROCE 15.4% -2.8% 0.3%

KEY INDICATORS

OPPORTUNITIES

• Govt has target of training 500 million people by 2022. Everonn is looking to tap this opportunity through it’s vocational training group

• Increasing the penetration of classes per school in the iSchool segment (Currently 3 classes per school versus Educomp’s 15 classes per school).

• Working on models to start K-12 and business schools.

STRENGTHS• Curriculum focussed digital content for school

and relationships with them.• Good management team in form of GEMS

education and Varkey group. Increases their network too.

• Self made content which is modified whenever needed.

• Good R&D team and tie up with NSDC.

THREATS•

Uncertainty in domestic and international economyFrequent changes in curriculum and teaching methodologies

• Revenues are difficult to predict due to which stocks don’t do well

• Delay in payments from Govt agencies which Everonn has ties with.

• Uncertainty in domestic and international economies.

WEAKNESSES• ICT is not ideal for Everonn due to its high

competition and lack of material comptt advantage.

• Edures group of Everonn has lack of differentiation and earns less profits.

• The financials for last three years have not been very encouraging. Their stock prices have not been able to instill much confidence

S W

TO

SWOT ANALYSIS

Everonn has planned for a Rs 70 cr capex for K12 schools by the end of 2014. The plan is to build 50-60 brick and mortal K12 schools by the end of 5 years.

They plan to focus on K12 , services and skills technology and at the same time aim to slow down in the higher education business.

They plan to cut down debt but take some loans for the K12 business to meet the goals they have set themselves for five years from now.

They also plan to increase their penetration in existing schools and colleges rather than focussing too much on new clients.

EVERONN FUTURE PLANS

ZEE LEARNING SOLUTIONS

2010

-Incorporated on 4th Jan , started business on 20th Jan

- Plan to spend Rs 700 cr in setting up of 300 schools across India- Launch of Dance India Dance Academy

- Launch of Mount Litera Pre Schools

- Tied up with Japan’s Gakken for innovative education where Gakkan looked after R&D and Zee learnings was involved in running and managing the program

-Zee Learn Ltd. signs a MoU with Government of Gujarat and Ahmedabad Municipal Corporation for Primary Education improvement.

ZEE

LEARNING

2011

-Merger with Essel Entertainment which was originally the parent company.

-Launched Brain Café ,another identity for Zee Learn Gakken science academy as an

innovative learning tool for schools

-Won the Bloomberg CXO Award 2011 for “Best Implementation of Student

and Faculty Engagement Solutions”

2012

- Launches ZeeQ- the first ever edcation based channel

for children- Wins Best Company to

Work For Award

2013

-Zee Learn raises $20 mn through issue of 5617977 GDRs where each GDR accounted for 10 shares.

-KidZee reports 27 percent growth rate this year

- To tap the growing aspiration of global standards schooleducation amongst parents, Zee Learn launched

international standard Pre-school by the name of MountLitera World Pre-school (MLWP).

PRODUCTS/SERVICES DESCRIPTION

SCHOOL NETWORK1. Mount Litera Zee Schools • second largest chain of schools in the private-unaided category with 65 signed-up schools

and 30 operational schools across the country.• Zee Learn acts as a consultant to Mount Litera Zee Schools and provides Education

management and Advisory services including School set up assistance, teacher training, Assessment, teaching materials, Branding and enrolment assistance.

• ZLL’s unique, proprietary K-12 education model - Litera Octave provides students with the opportunity to achieve their true, unique potential. Litera Octave is an integrated educational model that has been honed over years of research and development

2. KIDZEE Pre-School • With over 900+ pre-schools in more than 330+ cities across the country, Kidzee is the largest pre-school chain in Asia.

• Currently Kidzees across the country have over 40000 students.• Its proprietary pedagogy, ILLUME is what sets Kidzee a class apart from other pre-school

chains. Illume is an approach that helps parents and teachers spot the unique potential in each child and help them realize it.


PRODUCTS/SERVICES DESCRIPTION

3. Mount Litera World Preschool • international standard pre-school. With its Q-8 advantage, state-of-the-art infrastructure and personalised attention to each child, MLWP provides a global education to young children.

• MLWP is committed to provide best in class learning opportunities for children to explore, express and enjoy.

SCHOOL INNOVATIONS1. BRAINCAFE • tied up with Gakken Education Co. (Japan) to offer BrainCafé

Science classes in India• integrated eight level concept builder program for students of class I

to VIII. The programs shall run in schools as supplement to the regular curriculum and would bring better understanding and appreciation of the world of Science.

2. School Management Services • Zee Learn also provides School Management Services for existing schools.

• begin with a school audit and carry out a gap analysis between current state and ideal state . Based on this analysis we make and implement an action plan to improve student outcomes.


PRODUCTS/ SERVICES DESCRIPTION

YOUTH VOCATIONAL EDUCATIONZICA ( Zee Institute of Creative Art ) • nation's first full-fledged Classical and Digital Animation

Training Academy that trains youth in classical 2D and modern 3D animation.

• The institute has adopted a novel training style and is focussed entirely on creating a stimulating environment for its curriculum.

• now operating with over 25 centres in more than 15 major cities across India

ZIMA ( Zee Institute of Media Arts ) • a reputed name in the world of direction, cinematography, editing, sound, film animation, visual effects and the training of other high end software like Autodesk, Smoke and Flame.

• Offers the platform and infrastructure supporting the media education, which are carefully engineered and implemented to provide the best quality of education


Overall students – 2,70,000 in FY 2012-13

REACH of ZEE LEARNING

SCHOOL TYPE REACH/DESCRIPTION

KIDZEE • 1250 Centres in over 350 ities• Largest pre-school in India• 73800 kids across India

Mount India Litera • Uses Litera Octave• 61 operational schools• 30 new signups in FY12-13

Braincafe • 95 new schools• Over 100,000 students

Zima • 16 cities and 31 creative art industries

Zica • 140 shools , 61 operational. Enrollment increased to 1960 in this FY


200

400

600

800

1000

1200

1400

667718

871

1074

1266

KIDZEE REACH

KIDZEE SIGNUPS

FY10 FY11 FY12 FY130

10000

20000

30000

40000

50000

60000

70000

80000

KIDZEE ENROLMENTS

FY11 FY12 FY130

20

40

60

80

100

120

140

160

81

105

135

MOUNT LITERA REACH

MOUNT LITERA Signups

FY11 FY12 FY130

2000

4000

6000

8000

10000

12000

14000

16000

4226

7767

14582

0

ENROLLMENTS

FY11 FY12 FY130

50

100

150

200

250

300

350

400

450

500

280

345

450

ZIMA-Enrolments

FY11 FY12 FY130

500

1000

1500

2000

2500

907

1191

1960

ZICA- Enrolments

YOUTH VOCATIONAL CENTRES

Rs In Millions FY2013 FY2012

REVENUE 1014 616

EXPENDITURE 1086 828

EBIDTA (72) (212)

INTEREST 62 33

DEPRECIATION 66 30

PBT (200) (274)

TAX 14 2

PAT (214) (276)

Net Worth 1194.7 1402.3

ZEE FINANCIALS

PS1. EBITDA Losses lowered byRs.140 mn 2. Loss before tax reduced by Rs. 74 mn

FY11 FY12 FY13

-400

-200

0

200

400

600

800

1000

1200

REVENUEEBIDTAPAT

INR

TRENDS IN FINANCIALS


EBIDTA Margin 45% 54% 54%

PAT Margin 23% 28% 29%


ROI 4.9% 6.4% 7.5%

ROCE 6.7% 10% 9.1%

KEY INDICATORS

Strengths

•KIDZEE – With an R&D team of over 60 members , Kidzee has made significant intervention across the spectrum of education with special focus on curriculum design and content creation•To develop Higher Order Thinking Skills (HOTS) among students, they have developed a sries of programs under Braincafe.•ZICA and ZIMA - Through a mix of degrees, diplomas and certificate courses, they offer a plethora of option of options to both fresh graduates and professionals.

Opportunities

In the budget presented during the fiscal, the government has allocated Rs. 658.67 bn to education, an increase of 17% over the last year.-- The space left unattended by the government can be picked up by ZLL along with other Private players • The School Solution business is estimated to be revenue of USD 4.5 bn in 2012 and is expected to grow at a CAGR of 21.1% to USD 8 bn.

-- With Braincafe school solution which is widely appreciated by schools and parents, they are there to tap on this opportunity

Threats

• LOW BARRIERS TO ENTRY - Education seector’s high growth has ensured that there are too many new entrants to the industry

• OBSOLESCENCE RISK - The risk that products developed by the company will lose competitive edge

• INTEREST RATE RISK – The risk of company’s borrowing cost increasing with respect to existing obligations or loans.

Weakness

--They are finding it hard to become profitable. The PAT figures have been constantly negative over the last couple of years

-- They are too dependednt on Kidzee for their growth. Other segments are not performing well

S W

TO

Primary factors

SWOT ANALYSIS

Kidzee will be the main growth driver in the coming years and Mount Litera K12 schools will try to match it in terms of growth in the next few years.

Pre School Business of Zee Learning to reach Rs 13,300 crore by the end of 2015-16

They aim to setup 500 K12 schools by the next five years

They plan to tap the enormous opportunities available in tier 2 and tier 3 cities by adding more centres in such places

FUTURE PLANS

PHYZOK LEARNING SOLUTIONS

Started as a start up called Saakshar in 2008.

Started as an education support system which could improve the existing framework of school education in rural areas.

Their setup aims to enhance the quality of rural education by using technology to take video lectures , resource material , interactive modules , counselling progress effective valuation to the classrooms.

The company aims to bring together experienced teachers , rural consultants , child psychologists and software professionals to create a package of exceptional support service for rural secondary schools.

Phyzok- Company History & Description

Saakshar could not produce expected revenues , nor could they bring in money on time due to delay in payments by schools in rural areas.

One of Saakshar’s exit strategies was to start functioning in urban areas in form of interactive classes and workshops.

Phyzok , the urban and more advanced version , conducts workshops for class 7 th to 10th students in a span of 8 hours

Practical demonstrations are planned out in Phyzok’s own labs. They have a small team comprising of 20 odd people.

Phyzok is incubated under Business Incubator , BITS .

Emergence Of Phyzok

Live and interactive demonstrations. Real life simulations from Phyzok Labs Backed by audio/visual and technology aid Supplemented with concept demonstration / group activities Flipped classrooms are used. Closely linked to course curriculum. The come up with contests like Inspire and Spark which promote

entrepreneurship.

Phyzok Workshop Features

In 2014 – 2015 , they aim to enter the lucrative segments of preschool , K12 , vocational training.

Right now they have tie ups with urban and rural schools where they go once in a while and arrange workshops.

They plan to modify their system in such a manner that everything becomes efficient.

FUTURE PLANS - PHYZOK

Company Analysis of Firms in Education Sector

Economy & Finance

vocational

rural areas

teacher training

bharti group

litera octave

unique potential

english mentor

zee institute