Indian Education Investment Report 2014

Indian Education Investment Report 2014 is a pioneering effort on part of Franchise India Holdings Limited to bring forth the persisting gaps, changing consumption patterns, demographical investments and business opportunities existent in the current Indian Education sector.

The Education market in India currently stands at a whopping YOY growth of 15 per cent. However, there is further demand of investments to the tune of USD 100 billion for construction and provisioning of educational facilities, especially in K-12 and higher Education segments.

The current spending on education stands at INR 1,035 per month for an urban household and INR 293 for a rural household. However, consumers are willing to spend even higher amounts if given access to quality education and this has brought private players to the forefront. Likewise, the private sector is rapidly spreading its horizon in the education market and currently accounts for 48 per cent of its total revenue. Realising the pertinence of private sector to uplift Indian education, the Government has launched Public Private Partnerships (PPP) to invest in the education market.

Besides being a regulated industry in the formal sector to an extent, the education industry offers numerous investment opportunities for prospective investors. The report highlights some of these opportunities and further elaborates the current demographical investment trends across different education segments:

• Preschool education
• K-12 education
• Higher education
• Vocational training/institutions

The preschool education market, largely unregulated, is set for a 26 per cent growth over the next few years. This exemplifies the opportunity for education providers to enter preschool education. Some of the new business opportunities existing in the preschool segment include teacher's training, inclusion of day care centres, provisioning of after-school extra-curricular activities and edutainment products.

The K-12 market, though regulated, offers a number of opportunities, especially in the informal sector, such as automated learning platforms, integration of ICT in classrooms, diversification of information sector in formal K-12 market and integration of preschool education with primary schooling.

Higher education market is also flourishing with CAGR of 19 per cent expected over the next couple of years. Investments in this sector are likely to be made in setting up educational hubs and incubation centres, expanding existing institutions, developing physical infrastructure, combining vocational education with mainstream education, making alternative use of premises and e-learning.

In terms of vocational training, the major prospective sectors from an investment perspective seem to be banking and financial services, hospitality, IT/ITES and, beauty & wellness.

Overall, the report aims to capture the current gaps and trends in the education investment market and brings to the forefront the overall consumption patterns, investment opportunities and growth factors that are currently catapulting the Indian education scenario.