Vol.
XXXVIII, 19th June11 26st Jun11
Four-S EDUTRACK
Weekly Update on Indian Education Sector
In the Spotlight
Medical courses at IITs
After churning out successful technocrats, the Indian Institute of Technology, Kharagpur, is in the process of starting MBBS, MS and MD courses on its campus. The institution will submit a detailed project report to the Union human resource development ministry (MHRD) next month.
Content
In the Spotlight Investment Activity News & Policy Update 1 2 3 4 5 5 6
Corporate Developments The institute expects the ministry to table a bill to amend the existing statute of the IITs to allow them to introduce medical studies as well as set up a hospital during the monsoon session. Stock Market Update If Parliament passes the bill, IIT Kharagpur will be the first among the six IITs to set upin-glim01 from 220.227.137.92 on 2011-07-24 13:53:17 EDT. DownloadPDF. a medical school. The draft proposal ISIEmergingMarketsPDF Peer Benchmarking submitted to MHRD speaks about introducing postgraduate courses in technology oriented medical education. The detailed About Four-S Services project report seeks to set up a seven-storied building for a medical hospital.
Initially, the institute planned to open a 700-bed hospital. Now, the plan has been modified into 450 beds to start with. The new hospital will have major departments like oncology, cardiology, radiology and neurology. Initially the institute was planning to start only postgraduate courses like MS and MD. However, due to guidelines and restrictions of the Medical Council of India under which MS & MD courses can be started only after starting undergraduate courses, IIT-Kharagpur will now introduce MBBS courses as well.
The institute might either use AIPMT to admit candidates or introduce a separate Biology paper in IIT-JEE.
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FOUR-S EDUTRACK
Investment activity Private Equity
Date 3-May-11 1-Jun-11 23-Jun-11 Investor(s) Target Stake (%) Amount ($Mn) Business NA 30% NA 4.3 NA 15.0 Pre-Schools/K-12 Schools Vocational Training Education Services Stage Growth Early Growth ON Mauritius, Matrix Partners Tree House Education and India & Foundation Capital Accessories Pvt. Ltd Rajasthan Ventures Capital Fund Fidelity Growth Partners Shree Eduserve Pvt Ltd Mind Shaper Technologies
Mergers & Acquisitions
Date 9-May-11 24-May-11 24-May-11 Acquirer Educomp Solutions Core Projects & Technologies DMC Education Target Great Lakes Institute of Management ITN Mark Education Plansteps Stake (%) Amount ($Mn) NA 33.3 NA 25.0 NA 10.0 Target's Business Higher Education Education Services Supplemental Education
*Only last 3 PE deals and M&A deals have been highlighted above
Year-to-date PE Investments
Investment Amount (in $mn) No. of Deals
Year-to-date M&A Deals
Total Transaction Value (in $mn) No. of Deals
In $mn
60.0 40.0
In $ mn
ISIEmergingMarketsPDF in-glim01 from 220.227.137.92 on 2011-07-24 13:53:17 EDT. DownloadPDF. 11 160.0 12 250 140.0 10 9 200 120.0 6 8 100.0 150 80.0 6
195.3
100
5 10.3
69.5
20.0
0.0
2 0
50
0
145.1
YTD'10 YTD'11
YTD'10
YTD'11
Four-S Indian PE Directory 2010 A Guide to choosing private equity partners
Detailed listing of ~330 Active PE/VC Investors in India - PE/VC players that have invested in the past 3 years. A first-of-its-kind, the directory offers Deal History in India for individual investor. Management, investment profile and Contact details. User-friendly Spreadsheet Format. It comes from Four-S Services, the most trusted deal information bank in India.
Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com
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FOUR-S EDUTRACK
News Update & Policy Developments
Navodaya Vidyalayas to get exemption from two key RTE provisions Thousands of children waiting to take the entrance test for admission into the prestigious Navodaya Vidyalayas can now finally appear as the law ministry has exempted it from two key provisions of the Right to Education Act. The two key provisions no screening and 25% reservation for economically weaker sections -- will not be applicable to 444 Navodaya Vidyalayas across the country. 14 Engineering colleges to get `2.3bn quality boost In a bid to create an ecosystem of research and innovation, 14 engineering colleges in the Karnataka state will receive a grant of `2.3bn under a World Bank-assisted quality improvement programme. Over the next three years, six unaided, seven aided and a government engineering college will receive an aid of `125mn each to enhance enrolment in post-graduate education, set up centres of excellence in multi-disciplinary areas and improve competence of faculty under the second phase of Technical Education Quality Improvement Programme (TEQIP). CBSE assessment centre soon. The Central Board of Secondary Education (CBSE) has planned to establish a centre for assessment, evaluation and research for students and teachers to develop international capabilities, besides updating the course of instructions for examinations. According to a senior CBSE official, the centre will conduct entrance examinations, perform research and strengthen learning, besides granting qualifying certificates to successful candidates studying in affiliated schools. The centre will function through an executive council and CBSEs chairman will also be its chairman. AICTE lowers bar for polytechnic students. The All India Council of Technical Education (AICTE) has allowed students scoring 35% and above in Class X to apply for polytechnic courses, beginning this year, lowering it from 50%. Polytechnic admissions went online last year. Andhra Pradesh CM announces state to provide 15 lakh jobs in the next three years
Andhra Pradesh Chief Minister Sri N. Kiran Kumar Reddy has The Centre and the state government will share the cost in announced that the State Government is contemplating to ISIEmergingMarketsPDF the 31 colleges selected for the EDT. the ratio of 75:25. Out ofin-glim01 from 220.227.137.92 on 2011-07-24 13:53:17 in the DownloadPDF. provide 1.5mn jobs next three years by upgrading the World Bank-funded programme from across India, 14 are skills of the unemployed youth through special skill from Karnataka. development programmes. Himachal seeks extension of ICT Project to Middle Schools Himachal Government had requested the Government of India to extend the ongoing ICT (Information and Communication Technology) @School Scheme under implementation in the Government Senior Secondary Schools to Government Middle Schools in the State as well with a view to provide students quality education.
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FOUR-S EDUTRACK
Corporate Development
Everonn to set-up 271 vocational training centres Everonn Skills, the vocational training arm of Everonn Education, plans to set-up 271 skills development and training centres across India. Currently, Everonn Skill has 15 centers operational and is looking to expand capacity to 71 centers in the next three months. At full capacity, these 71 centers can train 7-8 lakh students. It will also be present in Tier II and III cities. Everonn Education (Everonn) had recently entered into JV with India's National Skill Development Corp. (NSDC) to train 150mn people by 2022 across 21 focus sectors creating a revenue potential of `144bn over the next 10 years. Shriram New Horizons forays into school education Shriram New Horizons Ltd (SRNH), a joint venture between Shri Ram group of India and US-based New Horizons Worldwide announced its foray into schools under the 'Shri Ram' brand, in association with Shri Ram Education Trust. As per the plan, the company will open a chain of play schools as well as institutions offering education from nursery to XII standard (K12 schools) under 'Shri Ram Global Schools' across ISIEmergingMarketsPDF in-glim01 from 220.227.137.92 on 2011-07-24 13:53:17 EDT. DownloadPDF. India. EdServ forays into mobile application space EdServ, an education services company, has signaled its foray into the mobile application space with the launch of HumThum.com, a mobile handset-based knowledge application. This knowledge application can be accessed anywhere anytime from a mobile smartphone. EdServ has been providing online education support services through its business division www.lampsglow.com. Students have to register online to access contents for relevant programmes such as CA coaching or test preparation for IITJEE or AIEEE test. The fee is based on a per-hour basis and includes recorded as well as live sessions. Students are given user names and passwords to help log into his account. In the pilot phase of the roll out, over 50,000 students have reportedly accessed HumThums mobile application. CLSA Capital Close To Putting `1bn in Resonance Coaching Kota-based Resonance Eduventures Pvt Ltd, a test preparation company offering coaching for IIT-JEE and other engineering entrance exams, is raising `1bn ($22 million) from CLSA Capital Partners. CLSA Capital Partners, an Asian independent brokerage and investment group with $2.7 billion in funds under management, is said to be leading the negotiations. The asset management firm is investing `1bn for up to 12 percent stake in the company, thereby valuing the firm at a little over ` 8.5bn
Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com
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FOUR-S EDUTRACK
Stock Market Performance
Company Market Cap (` mn) Educomp 38,102 Core Projects 33,403 Navneet 14,542 Everonn 9,523 NIIT Ltd 8,957 Career Point 6,086 Aptech 4,374 Edserv 1,994 Compucom 1,409 Jetking 493 Greycells 215 Visu Intl. 113 Price (In ` ) 397 302 61 500 54 336 90 128 18 84 36 3 Percentage Price Change 1 Week 1M 3M 6M 12M -4.5% -5.3% -5.2% -23.6% -26.1% 4.4% 3.9% -4.0% 0.7% 41.2% -4.3% 1.4% 12.7% -2.2% 21.9% -6.3% -8.7% -10.1% -16.3% 47.8% -4.4% 4.5% 2.7% -0.9% -18.9% 0.7% 1.5% -7.6% -12.7% -6.0% -2.4% -8.6% -26.3% -35.7% -5.5% -9.4% -5.2% -15.9% -18.6% -6.3% -10.1% 3.0% -6.8% 49.5% -7.6% -19.0% -22.5% -38.9% -50.2% -5.9% -9.5% -23.3% -21.8% -5.9% -12.7% -2.6% 4.2% -25.5% -41.2%
Peer Benchmarking
Figures in ` millions
Companies Revenue EBITDA PAT ISIEmergingMarketsPDF in-glim01 from 220.227.137.92 on 2011-07-24 13:53:17 EDT. DownloadPDF. Q4 FY10 Q4 FY11 YoY Q4 FY10 Q4 FY11 YoY Q4 FY10 Q4 FY11 YoY NIIT 2,950.0 3,237.0 10% 475.0 405.0 -15% 247.0 378.0 53% Educomp 3,478.4 5,072.0 46% 1,667.0 2,026.0 22% 649.0 1,457.0 124% Core Projects 2,390.9 2,976.6 24% 894.7 1,200.0 34% 547.6 702.8 28% Navneet 1,006.1 950.7 -6% 162.9 167.9 3% 81.0 79.0 -2% Everonn 1,050.0 1,340.0 28% 320.0 550.0 72% 160.0 260.0 63% Aptech 280.2 445.0 59% -36.8 10.2 NM -30.8 332.5 NM Edserv 207.9 421.6 103% 87.2 176.1 102% 61.9 115.2 86% Career Point 171.9 197.0 15% 81.6 108.4 33% 52.8 76.5 45% Compucom 149.1 180.1 21% 72.9 103.6 42% 16.1 30.3 88% Jetking 98.6 82.3 -17% 26.9 13.2 -51% 23.0 5.5 -76% Visu 82.6 52.8 -36% 20.0 22.3 12% 4.9 2.1 -57% Greycells 22.3 24.7 11% 4.1 4.8 15% 1.8 4.3 138%
Companies NIIT Educomp Core Projects Navneet Everonn Aptech Edserv Career Point Compucom Jetking Visu Greycells FY'10 11,993.0 11,650.0 8,469.8 2,607.6 2,934.9 1,261.1 521.1 616.6 620.6 448.3 240.5 76.5 Revenue FY11 12,483.0 13,925.0 10,912.3 2,688.5 4,247.0 1,907.6 1,221.6 786.2 726.0 394.4 151.0 109.8 EBITDA FY11 1,593.0 9,841.0 3,936.0 477.0 1,554.8 213.4 562.9 404.7 397.8 103.8 57.8 -8.6 PAT FY11 922.0 3,367.0 2,250.1 238.1 676.4 449.8 412.2 273.7 120.4 67.4 5.0 -40.7
Margins Q4 FY11 EBITDA NPM 13% 12% 40% 29% 40% 24% 18% 8% 41% 19% 2% 75% 42% 27% 55% 39% 58% 17% 16% 7% 42% 4% 19% 17%
Margins FY11 EBITDA NPM 13% 7% 71% 24% 36% 21% 18% 9% 37% 16% 11% 24% 46% 34% 51% 35% 55% 17% 26% 17% 38% 3% -8% -37%
YoY 4% 20% 29% 3% 45% 51% 134% 28% 17% -12% -37% 43%
FY'10 1,569.0 7,258.0 2,816.4 412.1 1,009.6 166.6 251.8 300.7 313.0 147.1 53.8 5.9
YoY 2% 36% 40% 16% 54% 28% 124% 35% 27% -29% 7% NA
FY'10 702.0 2,759.0 1,722.2 200.4 454.5 -178.8 180.1 198.7 93.5 98.0 16.4 -0.0
YoY 31% 22% 31% 19% 49% NM 129% 38% 29% -31% -70% NA
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Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com
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Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com
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Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com
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