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May 11, 2009

Analysis of K-12 market for multimedia content

Sanjoy Sanyal has an interesting post analysing the market for multimedia content for schools in the context of a new entrant: the Manipal Group.
The key proposition is simple enough: use technology to deliver top quality standardized learning at low cost independent of the physical location of the student. It is a thought that has been at the core of technology-aided learning. There is considerable interest in this market. Educomp with its Smart class, Everonn with its ViTELs, NIIT with its Interactive Classroom and IL&FS Educational & Technology Services are direct competitors. Smart class accounted for 60% of Educomp’s Rs. 145 cr (USD 29 mil.) revenue in the quarter ended Dec 09 (source: website).

How scalable is this business? Consider the following facts.
India has about a 1 million schools out of which 75,000 are private schools. The private schools are further classified into:
• Approx. 30,000 Government aided schools with an average monthly fee of Rs. 450 (USD 9).
• Approx. 30,000 un-aided “standard” private schools with an average monthly of Rs. 750 (USD 15)
• Approx 15000 un-aided “premium” schools with monthly fee upwards of Rs, 1250 (USD 25)

At this point, the key addressable market is the 45,000 private unaided schools. According to a IDFC-SSKI report the reach of the key players is about 1000 schools each for Educomp and NIIT and 1000 schools for Everonn and IL&FS combined. That leaves a lot of room for growth.

Incidentally, my company recently produced a report on the Private Equity investors' take on the Education market. You can download the free report here.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at