New Project Proposal Report

CORPORATE FINANCE

REPORT ON PROJECT: SPORTS SCHOOL

Sun Valley School of Sports

You don’t win Silver - You lose Gold

Submitted to- Prof. Vikas Srivastava

Submitted By- Group 4 Pgpbf (2009-2011)

Abhishek Sharma , Ajitav Sinha , Akhil Goyal, Mohit Choudhary, Priyanka Ojha,

Sneha Jaiswal , V.Vinitha

PGPBF, NIBM Pune

Executive Summary

Project – SUN VALLEY is an exclusive SPORTS SCHOOL with the objective of ‘catching them young’ and bringing GOLD for India in the Olympics of 2020. The school will be located in a 60 acre campus in Vikhroli village in Pune. The school will be fully residential and co-ed. The school will have classes from standard III to standard XII. The school will coach the students in weight lifting, swimming, shooting, judo, cycling, boxing and athletics. For the academic program, the school will adopt the curriculum of National Open School (NOS)

Cap Ex Investment – Initial investment of Rs. 34.85 crore with incremental of Rs. 0.64 crore in the third and fifth years each. Land is provided free of cost by the Government of Maharashtra

Demand & Capacity – Full capacity of 400 students per annum. First two years’ operation at 50% capacity and next two years 75%.Full capacity with effect from fifth year.

Capital Structure – 56% owner’s equity and 44% bank loan (term loan) running for 5 years

Cost of Capital – 11% with debt at 14% and equity at 10%

Revenue Stream – Fee of Rs. 2.5 lakh per student per annum for the initial two years and increased to Rs. 3.0 lakh from the third year onwards

Profit – Profit after Tax since third year of operation and accumulated losses wiped out in fifth year of operation

Break Even – 17.5 years

Growth Rate – CAGR of 13% and approaching 7% in the long run

NPV – Rs. 15 crore

IRR – 17%

Management Team – The management team comprises of 7 members who are the Promoters of the Company and 2 Independent Directors, one of

2

whom is a current Cabinet Minister and another is a retired IAS officer.

Index

Contents Page No.

1. Introduction 5- 6

Concept

Objective & Vision

Business Model

2. Market Study 8– 10

Demand Projection

SWOT Analysis

Competitor Analysis

Marketing Mix

3. Technical Study 12 – 17

Costing

Steps for setting up a school

4. Financial Study 19 -24

Financing Plan

Leverage

Cost of Capital

Break Even & Sensitivity Analysis

Projected Financial Statements

NPV & IRR calculation

5. Economic Study 26 -28

General Macroeconomic condition

Porter’s Five-forces Model

6. Management Team 30 –33

Details of Board

McKinsey’s 7S Framework

CSR

3

7. Snapshots with Layout 34- 36

Introduction

4

The Concept

The system of sports school was founded in 1930s in the erstwhile USSR. Sports school is a type

of educational institution that prepares young students for the highest achievements in the field of

sports while also giving them the necessary academic proficiency for their future. One of the most

powerful system of the present times in sports education is practiced in the People’s Republic of

China. The success is for all to see – China has garnered 51 gold medals (highest) in the 2008

Beijing Olympics and most of them were from the students of such sports schools.

In the year 1973 the Government of Haryana started the Motilal Nehru School of Sports, Rai with

a prime objective to provide excellent education facilities with extra emphasis on sports to

deserving students. However, the focus later shifted to academics and sports became mere

exercise. The investment made by most States in sports has been negligible. In consequence, we

have not succeeded in creating a national sports culture, thus also impairing excellence in sports.

It is estimated that out of a population of adolescents and youth of some 77 crore, only 5 crore or

so have any access to organized sports and games, to the neglect of nearly 72 crore of our

children.

The Parliament Standing Committee on Human Resource Development identified the lack of

sports culture in the country and the non-integration of sports with the formal education system as

the major problems behind India’s lacklustre performance in sports.

Even a small country like Cuba, whose population of about 11.5 million is comparable to that of

NCT Delhi, boasts approximately 2 million athletes, of whom 23,000 are in the high performance

category in 38 different sports disciplines at the national and international level. With the sports

culture permeating every aspect of Cuban society, national athletes are folk heroes and receive

national recognition and lifetime financial support.

Cuba spends about 13 per cent of its national budget on sports and related activities. The outcome

in terms of excellence in sports is starkly measured by comparing the number of medals in

absolute numbers and the number of medals per ten million of the population won by Cuba,

China and India respectively at the most recent Olympics and Asian Games put together.

Country No. of medals Medals per 10 million pop. Cuba: 179 157.2 China: 379 2.8 India: 55 0.5

5

Objective

We plan to set up an exclusive SPORTS SCHOOL with the objective of ‘catching them young’

and bringing GOLD in the Olympics of 2020. The school is set up along the Russian & Chinese

model of identifying sporting talent in children at a young age and nurturing them for

representing the country at international level tournaments.

Vision

Our vision is to create a world class infrastructure with state of the art sporting complex and top

level coaches & supporting staff to nurture talents with an ultimate objective to stabilize India at

the pinnacle of world Sports and help become a leading contender in Olympics.

Business Model

The school will be set up as a private limited venture. The school will be located in a sprawling 60

acres campus in Vikhroli village that is 7 kms away from Hadapsar in Pune. The school will be

fully residential and co-ed. In addition to state of the art training in sports, the school will offer

academic programs to equip the upcoming sportsmen and women with requisite knowledge for

their future. For the academic program, the school will adopt the curriculum of National Open

School (NOS).

The school will have classes from standard III to standard XII with two sections for each

standard. Each section will have a maximum of 20 students. The maximum seats in the school

will be 400. The admission of students will be on the basis of entrance test combined with talent

scouting for inherent sporting talent.

The school will coach the students in sports which have been selected based on the medal tally in

Olympics viz. - weight lifting, swimming, shooting, judo, cycling, boxing and athletics. These

games are competed at individual levels and contribute to 51% of total gold medals at stake in the

Olympics.

6

MarKET STUDY

7

Demand Projection

India has the largest student population in the world with over 13.5crore pupils in primary

education. In the last five years, the government has been focusing on the Education Sector

through increased fund allocations. In the current year also, the government has increased the

allocation by 20% from Rs. 28,674 crore to Rs. 34,400 crore. The allocation is expected to

continue to increase in the foreseeable future as well. The government has imposed an Education

cess on income tax to fund its various programs, which target to improve the quality and reach of

education in India. Student enrolments have grown at a good rate of 3.2% CAGR over 1999-2000

to 2004-05 for primary enrolments, and 3.9% for upper primary enrolments.

With increase in per-capita income there is a greater propensity to educate children at premier

institutions. The parents whose children are studying at these schools expect a higher standard of

education and have comparatively higher expectations from these schools in terms of

infrastructure, facilities and courseware. For example, 50% of parents spending close to Rs. 3 - 4

lakh per year to educate their children at Doon School, Dehra Dun own medium sized business

and come from small towns like Moradabad, Panipat, Yamuna Nagar etc.

Formal schooling, globally known as K12 (Kindergarten to 12th grade) is India’s core education

market and occupies the largest space in the education system, growing at 14% CAGR. As for

India’s middle class households, we believe this segment of society would continue to spend a

large part of its income to fund the education (with an eye on quality) of its children. Overall, we

believe Budget allocations and high spending by the Indian middle class on education are

expected to fuel growth of private schools in India.

40% of the school going children attend private schools, which are approx 7% of the total number

of schools in the country. This indicates a clear preference for private schooling over public

education system. The quality of education in private schooling is better despite the higher costs.

There are over 75,000 private schools with investment of over US$20billion. The growth of

private schools is fast because of the absence of quality public schools. A growing awareness

about the importance of quality education and increasing ability and willingness of Indians to pay

for good education is driving private sector education forward.

8

SWOT Analysis

Strengths : Specialisation in sports

Focus on Olympics

A head coach for each game

Weaknesses: Sports education is a new

concept

Few specialised coaches available

Opportunities: Increased coverage & penetration of sports

Success of Indians in Beijing Olympics has raised hopes and demand for more sportsmen & women

Threats: In India people are Academic

centric.

Competition is with Sports Authority of India, Sports schools by Govt.

Competitor Analysis

The competition will be from existing premier residential schools like Doon School of Dehra

Dun, Lovedale School of Ooty, Boarding Schools of Darjeeling & Shimla as well as Sports

Schools set up by the State Governments. Though the infrastructure, ambience and facilities are

compatible with the former, their focus is academics while ours is Sports. Comparing with govt.

run sports schools, our infrastructure, coaching and exposure is much higher. The annual fee

structure of Rs 2.5-3 lakh is placed lower than the premier schools (with fee ranging from Rs 5-6

lakh) but higher than the govt. run sports schools (fee ranging from Rs 0.5-1.5 lakh)

Marketing Mix

Product: In this project we are basically selling the concept and not just the school. In India,

sports is considered as a leisure activity or the means to land a job through sports quota.

Besides, apart from cricket no other sport activity is encouraged. We plan to sell the

concept of winning GOLD for the country. The highlight would be state-of-the-art

coaching for students who have an inherent talent for sporting activities along with

quality academic knowledge.

Price: Proposed School Fees- Rs 2.5 lakh per annum for the initial two years, which will be

hiked to Rs 3.0 lakh per annum from the third year.

We plan to seek active corporate sponsorship in terms of scholarships in various sports

activities/ exchange programs and international expertise.

9

Place: We are targeting students at pan-India level. Talent scouts would visit schools’ sports

meets and camps to identify potential candidates.

Promotion:

For the promotion of the school following strategies will be adopted-

The communication about the school will be made through pamphlet distribution, advertisement on TV, in magazines, newspapers and hoardings in a particular niche area. The advertisement campaign will run all over the country.

We are also planning for a campaign in the up-coming Commonwealth Games and London Olympics in 2012 and other national and international level sports championship.

We plan to rope in Olympians like Abhinav Bindra & Vijender Singh as brand ambassadors for helping us in the promotion of the school.

10

TECHNICAL

STUDY

11

For the first year of operations, the school will be operating at 50% capacity as students up to

standard VII only will be enrolled. There will be proportionate capacity addition as number of

students increase

Costing

Cost of ProjectRs in Crore

Building Construction 30.00Furniture & Fixtures 0.50Athletic Arena/ Track 1.00Sports Equipment 0.40Vehicles 0.20Computer & Equipment 0.18Preliminary Expenses 2.57  34.85

Sports Equipments

No Game Batch Size Cost in USD

1 Wrestling 10 1669.50

2 Swimming 20 1712.19

3 Shooting 10 5001.13

4 Judo 10 839.60

5 Cycling 20 18825.80

6 Boxing 10 1085.04

7 Athletics 100 33114.38

Total 62247.64

Exchange rate 47.5

Amount in Rs crore 0.30

Dress & Replacements Rs in crore 0.10 per student Rs. 5000 p.a

12

Total Amt Rs in Crore 0.40

Manpower Description

S. no. Particulars No Per month Total per month1 Head Coach 10* 25000 2500002 Asst Coach 7 # 20000 1400003 gym instructor 1 20000 200004 dietician 1 20000 200005 doctor 1 25000 250006 nurse 1 10000 100007 visiting physician 1 4000 40008 physiotherapist 1 25000 250009 counsellor 1 20000 2000010 Teachers 10 20000 200000

TOTAL 714000

Annual Rs in Crore 0.86

11 Principal 1 35000 3500012 Vice Principal 2 30000 6000013 Support Staff 12 10000 120000

TOTAL 215000

Amount Rs in Crore 0.26

Computer & AccessoriesS. no. Particulars price /unit unit required total amount in Rs

1Computer 30000 55* 1650000

2Printer 3000 20 60000

3 Projector 5000 10 500004 White Board 3000 10 300005 MFD 15000 1 15000

TOTAL Rs in Crore     0.18

*one for 2 students-one for each teacher-one for each class-15 office one for 4 teachers-2 in lab(2 for 20 students)-1 each fr princi, VCs-12 office staff.

*1 head coach each for 6 games & 4 for athletics #1 asst. coach each for 6 games & 1 for athletics

13

14

Outsourced Activities Rs in Crore Scope

Food & Refreshments 1.50 As per diet chart for each student( Rs. 250 per person per day)

Security 0.12 Round the clock security

Repair & Maintenance 0.12Repair & Maintain electrical & plumbing fittings, vehicle, sports

equipments

Housekeeping 0.24 Cleaning, Gardening, Aesthetic Management,

Vehicle

Particularsin Rs lakhs.

Tata Motors School Bus 10.55Tata Motors School small van 6.5Tata Indica 2.95   Amount Rs. in crores 0.2

S no. Preliminary Expenses1 Company Registration Fee     500002 Legal Advisory Charges     1000003 CA charges     1000004 Approvals for land & Building     250005 Misc Expenses     3500006 Interest on loan for constuction period     150000007 Promotion Expenses     100000008 Approval & Affiliation for school     25000

 Total in Rs.     25650000       Amount Rs in Crore     2.57       

Amortised over 10 years @ Rs. 0.26 crore each year

15

Furniture and Fixtures1

Particularsprice /unit

unit required

total amount in Rs

2 class room desk & table 1000 200 2000003 bed+mattreses+pillow 6000 200 12000004 study table 3000 200 6000005 mess table + chair 4000 50 2000006 teachers table+chair 2500 10 250007 Coaches & others

table+chair 3000 20 600008 principal's office 100000 1 1000009 VC's office 60000 2 12000010 Audi chairs 500 300 15000011 Dispensary     130000012 Lockers & Cabinets     1000000

TOTAL     4955000Total in Rs crores     0.50

16

Rules and Regulations for Starting a school in Pune :

Cost of Construction:

1 School Building sq. feet Rs per sq. Feet

(in crores)

  Plinth Area 100000 1000 10.00  Electrical 100000 40 0.40  Plumbing and water supply 100000 30 0.30  Central A.C. 100000 50 0.50         

2 Girls Hostel                 Plinth Area 40000 1000 4.00  Electrical 40000 50 0.20  Plumbing and water supply 40000 50 0.20  Central A.C. 40000 75 0.30         

3 Boys Hostel                 Plinth Area 40000 1000 4.00  Electrical 40000 50 0.20  Plumbing and water supply 40000 50 0.20  Central A.C. 40000 75 0.30         

4 Staff Quarters                 Plinth Area 20000 1000 2.00  Electrical 20000 50 0.10  Plumbing and water supply 20000 50 0.10  Central A.C. 20000 100 0.20         

5 INDOOR STADIUM & AUDITORIUM                 Plinth Area 10000 800 0.80  Electrical & Furniture 10000 100 0.10         

6 Football Ground     0.607 Basketball ground     0.408 Canteen building     0.209 Swimming pool     0.78

10 Repairs & maintenance room     0.1011 Watchman's cabin     0.0212 Landscaping & Decorating     3.0013 Compound wall + gate + roads     1.00

  Total     30.00

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The players in starting a new school are:

Government agencies:

• Registrar of societies

• Charity commissioners’ office

• Zilla Parishad

• Pune Municipal Corporation (P.M.C.)

Actual Procedure for starting a school:

Step 1: Applications for starting a new school should be submitted to Zilla Parishad

Step 2: The Zilla Committee reviews the application and then it is sent to the Mantralaya. The

Mantrakaya has the final say to accept or reject the application based on the reports sent by

Zilla Parishad. The entire process requires 6 months.

Step 3: Register the school as a trust according to the Societies Registration Act, 1860 and

Bombay Public Trust Act, 1950.

Step 4: Apply for recognition to the Zilla Parishad or PMC.

Step 5: Obtain a temporary licence for the school.

Step 6: Affliation to National Open school certificate.

18

FINANCIAL

STUDY

19

FINANCIAL PLAN & ITS REASONS:

(Rs in Crore) InitialSubsequent Increment

Equity capital 18.00 2.50Term loan 15.36

Special Incentive from Govt. 1.49 3.00Loan from friends & Relatives 2.50

TOTAL 34.85

Newly formulated company so the proportion of owner’s equity is higher;

Long term debt for covering approx 60% of construction has been raised. This would

account for the “discipline of debt”;

Govt subsidies to promote sports culture in the country providing interest free capital

To plug in deficit financing, we propose to raise interest free additional finance from

friends & relatives;

Since there is no working capital gap, we are not raising any finance for working capital;

Internal accruals from fifth year onwards would be sufficient to meet the operating

expenses;

The promoters would not receive any remuneration or dividends, till 5th year. Henceforth,

we propose to declare dividends @ 20% of PAT.

DSCR and Interest Coverage Calculation

Particulars I II III IV V Total

EBIT 0.51 0.58 2.90 2.94 4.32

PAT -1.82 -1.34 0.99 1.31 2.58 1.72

Depreciation 1.18 1.11 1.12 1.08 1.06 5.54

Interest 2.08 1.67 1.24 0.81 0.38 6.16

Amortisation Exp 0.26 0.26 0.26 0.26 0.26 1.29

Cash Accruals 1.69 1.69 3.60 3.46 4.27 14.71

Interest 2.07 1.66 1.23 0.80 0.38 6.15

Installment 2.30 3.07 3.07 3.07 3.07 14.59

Payments 4.37 4.73 4.31 3.88 3.45 20.74

DSCR 0.39* 0.36* 0.84* 0.89* 1.24

ICR 0.25* 0.35* 2.35* 3.64 11.45

* The deficit made good by capital infusion

20

COST OF CAPITAL:-

To arrive at the cost of capital, we used WACC methodology.

It includes cost of debt and cost of equity.

To get the cost of debt, we considered a term loan charging an interest rate of 14% p.a. In this we

take into consideration the tax effect. The effective cost of debt comes out to be 14(1-0.3); =9.8%

To get the cost of equity, we used the CAPM approach, according to which,

where:

ke=cost of equity

Rf= Risk free rate ; considered 7% as per average Treasury-bonds discount rate.

β = Coefficient of systematic risk

Rm= Market returns of NSE for the period Sept 2008 to Aug 2009.

Beta value was calculated using the fundamental approach

Here the historical beta we are considering is of “Bhagwati Banquets and Hotels Ltd.” a

comparable hospitality industry firm.

We calculated the historical beta by regressing their returns against NSE returns. This was

the levered beta of the firm which we unlevered and again re-levered using our capital

structure.

21

ke =Rf + β(Rm-Rf)

Relevering the historical beta:

βrelevered = βunlevered [1+ (1-t)(D/E)target]

The beta for our firm came out to be 0.69 and we adjusted it for our new venture to a more

realistic value of 0.80

After arriving at the cost of debt and cost of equity, we used the WACC method,

ko = kd(D/D+E) +ke(E/D+E)

The weights of debt and equity is taken from the balance sheet.

Debt is 15.36 cr whereas equity is 20.5 cr.

The overall cost of capital comes out to be 10.77%

22

BREAK-EVEN ANALYSIS:

Key assumptions made for the break-even analysis are :

We have used Free Cash Flows to the Firm(FCFF) for arriving at a break-even.

FCFF is calculated as

PAT is taken as at the end of 3rd year as it is the 1st positive one we are getting.

Interest is added back as we are considering break-even for both the debt and equity

holders.

As already mentioned in the economic analysis, we are assuming the growth rate(g) of

13% which is on the lower side of the expected growth of 15-17%.

The discount ratebove equation is taken as the cost of capital (k) calculated earlier.

CALCULATION METHODOLOGY:

Initial CAPEX = FCFF [1+(1+g)/(1+k) + ((1+g)/(1+k))2 +………+((1+g)/(1+k))n]

where n is the number of years for break-even.

Solving the above equation as a summation of GP having common ratio (1+g)/(1+k), the

value of n came out to be 14.58 years.

The particular point in this calculation is that we need to add 3 years to the B-E calculated as

it was taken at the end of first 3 years.

Thus, the B-E for our project comes out to be 17.58 years.

23

FCFF=PAT+INTEREST (1-TAX)+DEPRECIATION

SENSITIVITY ANALYSIS:

Scenario 1: Number of students remains same=300, fee varies.

FEE

VARIATION

-20% -10% BASE=3lacs +10% +20%

REVENUE 7.2 8.1 9 9.9 10.8

VC 2.58 2.58 2.58 2.58 2.58

CONTRIBUTION 4.62 5.52 6.42 7.32 8.22

FC 2.4 2.4 2.4 2.4 2.4

PROFIT 2.22 3.12 4.02 4.92 5.82

Scenario 2: Number of students vary, so does variable cost, fee remains same=3 lacs

Variable costs= Total Cost-(Salaries +Repairs & Maintenance .+Security+ Housekeeping

+wages & salary)

= 4.98-2.4

Total VC for 300 students =2.58 crore

Thus VC per student = 0.0086 crore

24

STUDENT

VARIATION

-20% -10% BASE=300

students

+10% +20%

REVENUE 7.2 8.1 9 9.9 10.8

VC 2.064 2.322 2.58 2.838 3.096

CONTRIBUTION 5.136 5.778 6.42 7.062 7.704

FC 2.4 2.4 2.4 2.4 2.4

PROFIT 2.736 3.378 4.02 4.662 5.304

Analysis:

As observed from the above graph, the slope of the fee variance curve is more than that of student variance. Thus the profit is more sensitive to fee changes than the change in number of students.

25

ECONOMIC

STUDY

26

General Macroeconomic Framework

Recent performance: The Indian economy confronted one of the severest external shocks in

2008-09 in the form of an intense global financial crisis coupled with a global recession, but

exhibited notable resilience, with GDP growth at 6.7% in the year 2008-09.

GDP growth of second quarter of 2009-10 surprised on the upside growing at 7.9%. Growth had

slowed to 7.4% for 2008 and is expected to remain below trend over the next few quarters.

Second quarter expansion came on the back of high government spending and a stronger

performance in the manufacturing sector.

Outlook: Growth will slide to 6.6% in CY-2010, while the medium term outlook remains

favorable. The move towards gradual liberalization and deregulation will continue under the new

government; but a major overhaul is unlikely in terms of FDI in education sector. As per IMF‘s

outlook, medium term growth will return to 7-8% for India but not before 2011.

The adverse impact of the deficient monsoon on food prices and inflation expectations suggest

upside risks to inflation. RBI has revised its inflation projection upwards from the earlier 4% to

5%. With inflation posing a threat to growth and high forex inflows, as a response interest rates

are expected to harden in the future.

Education Sector

Our economy’s growth, development and ability to handle global competition is all dependent on

the availability, reliability and quality of the education offered to its ‘leaders of the future’.

As per the Indian Education Survey Report-2009, K12 market is expected to grow at 14% CAGR.

We are assuming 13% growth rate for our school considering the novel concept and the growth os

sports industry in India. The long term growth rate would approach that of the economy at 7%.

The higher offtake of education loans, pay commission rewards & recent settlement in case of

PSBs are expected to drive demand. The private consumption has already increased from 1.6% to

5.6% on year-on-year basis.

27

Industry Analysis using Porter’s Five-forces Model

A classic business tool and probably the mostly widely used framework for strategic industry

analysis is commonly known as Porter’s Five Forces with five controlling economic processes:

Degree of industry rivalry and competitive intensity

Barriers to entry into the industry

Threats of available product or service substitutes

Degree of buyer power to negotiate

Degree of supplier power to negotiate

Degree of Industry Rivalry Assessment

The education industry has a high fixed cost ratio and the premier school market is effectively

concentrated, which makes competitive rivalry predictably high. To some extent, the benefits of

being a growth industry offset the high degree of rivalry. Overall rivalry is mitigated because

several schools have large capacity enrollments, and are content seeing premier schools satisfy

growing demand by targeting niche markets. An overall competitive rivalry assessment is

moderate.

Barriers to Entry/ Exit

Residential schools are usually very large organizations with extensive administrative operations,

pervasive facilities and grounds, invaluable brands and a alumni base that can have a legacy well

over a hundred years old. These characteristics, the capital and endowments required to support

these long-term assets, including land grant entitlements, almost per se define large economies of

scale, which certainly represent formidable barriers to entry. Probably one of the most

controversial barriers to entry into specific areas of higher education is the requirements and

restrictions imposed by accrediting associations. General assessment shows that in a school there

is no exit barrier as such especially in private schools, but here a government aid is involved so

the exit barrier in this case will be higher.

Threat of Product or Service Substitution Assessment

There are an estimated 1.07 million schools and that quantity alone would arguably indicate a

wide variety of education options. Price points widely differ between the public and private

education segments. Since private schools are perceived as high in quality relative to government

28

schools, the student is already price conditioned which makes transferring to a more expensive

private school a realistic option.

Degree of Buyer Power Assessment

Buyers are widely fragmented across the market and in general, these potential students have

limited influence on the higher education industry. The role of freely available and instantaneous

information relating to course descriptions, college amenities, and school rankings most certainly

shifts the information asymmetries giving potential students more power of choice. This shift, to a

degree, offsets the effect of market fragmentation and consequently gives buyer power an overall

neutral assessment.

Degree of Supplier Power Assessment

Schools and colleges frequently represent large stable contracts to vendors, so the ensuing

competition for bids among these vendors is typically frenzied. Within the education industry,

there are numerous suppliers of a variety of products and services, fragmented across the

industry. An overall supplier power assessment is low.

29

MANAGEMENT

TEAM

30

MANAGEMENT TEAM:

The management team comprises of a Board, which consists of 7 members who are the Promoters

of the Company and 2 independent Directors. The members are zealous and passionate to pursue

the organizational objectives.

Brief profile of the Directors is as below:

Name of Director Qualification Specialisation Networth (in Rs

Crore)

Dr V Vinitha MCA, Ph. D. Educationist 30

Mr Abhishek Sharma BE (IT), MBA Finance 25

Mr Akhil Goyal M. Tech IT 20

Mr Mohit Chaudhary B. Tech, Eminent

sports personality

Sports 20

Ms Priyanka Ojha MBA Public Relations &

Marketing

25

Ms Sneha Jaiswal MBA Administration 20

Mr Jairam Ramesh Politician,

Economist

Independent Director

Mr Harnam Singh (Retd IAS,

Maharashtra Cadre)

Independent Director

Mr Ajitav Sinha BA (Eco), Reputed

Coach

Sports 30

31

McKinsey’s 7-S framework:

McKinsey & Co's 7S framework provides a useful framework for analyzing the strategic

attributes of our organisation. Strategy, structure and systems can be considered as the "hardware"

of success whilst style, staff, skills and shared values can be seen as the "software". Companies,

in which these soft elements are present, are usually more successful at the implementation of

strategy. There is no particular order to the 7Ss.

Each of the 7Ss is elaborated on below:

Shared Values

Shared values imply that all our employees share the same guiding values. Ours being an

organization for a national cause, we give high importance to values. We believe that each child

has inherent potential to achieve glory and plan to channelise their talent to secure a bright future

for them in Sports. The students are selected purely on merit and are nurtured in an environment

that promotes team spirit and working for a higher-than-self goal.

32

Strategy

The integrated vision and direction of the company, as well as the manner in which it is derived,

articulates, communicates and implements that vision and direction. We will formulate a strategy

and devise time bound tactics to achieve our main objective. To reiterate a few, we wish to

provide facilities akin to those available in developed nations. We would adopt China model to

groom as many talents as possible and then segregate between “winners and potential winners”.

Structure

The policies and procedures which govern the way in which the organisation acts within itself and

within the domain of its environment are also of utmost importance. There is a well defined

structure in our organization. The top management consist of the Directors. Reporting to them

would be the principal who would manage the different sports instructors and teachers. Assisting

in his job would be two VPs, each being responsible for Academics & Administration and Sports.

The hostel supervisor will also report to the Vice-Principal (A&A). There would be proper

synergy among all the tiers of management for achieving our goals.

Systems

The decision making systems within the organisation can range from management intuition, to

structured computer systems to complex expert systems and artificial intelligence.

The school operates on an ERP package that integrates all the operations and keeps track of each

student’s activities and schedule, including training, tuition, diet, etc. The school adopts the On-

Demand Examination system for academics. We would be adopting a technology that would help

us to keep a track of the individual development as well as structure our housekeeping in an

efficient way.

Style

Style refers to the employees shared and common way of thinking and behaving - unwritten

norms of behaviour and thought:

• Leadership Style: We believe in a democratic set up, where every individual would have a

platform to voice their concerns/ suggestions. Top management would basically be facilitator and

communicate with the Board on all issues of importance

• Organizational Culture describes the psychology, attitudes, experiences, beliefs and values

(personal and cultural values) of an organization. It has been defined as "the specific collection of

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values and norms that are shared by people and groups in an organization and that control the way

we interact with each other and with stakeholders outside the organization."

Skills

Skills refer to the fact that employees have the necessary skills to carry out the organisation's

strategy.

The school plans to have a tie up with reputed clubs in corresponding sports – at both national

and international level to keep the trainers and students abreast with the latest methodologies in

sports training. We plan to invite the top ranked sportsman/woman and their coach to the school

for an annual honorary camp to help the students and trainers to gain from their experience and

strategies. We also plan to conduct inter school competition in different sporting faculties to hone

the skill of students and expose them at a wider platform for mental toughness and psychological

edge.

Staff

Staff is an asset and it highlights the importance of hiring capable people with adequate exposure

at the highest level. There has to be a continuous training development programme for them and

should be made to attend workshops, seminars, conducted by apex sporting bodies. Selection,

training, reward and recognition, retention, motivation and assignment to appropriate work are all

key issues.

We employ specialised coaches for each sports and the ratio of students to trainer is 10:1. Our key

area of focus is on providing support system to all the students on the individual basis.

Corporate Social Responsibility

Sponsorship to meritorious students

Special Camps for under-privileged children and possible sponsorship

Green Buildings

Solar Power & Rain Water Harvesting

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Sun Valley Sports School model:

Bird’s Eye View - Projection

Logo & Motto:

You Don’t win Silver, You lose Gold

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Uniforms:

School Uniform Sports Uniform

Sports in Sun Valley:

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Sunvalley Infrastructure:

View of Academic Building

Auditorium

Swimming Pool

Athletic Track

School Bus Cafeteria

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Class rooms

Hostels

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