a quarterly report by - Technopak

Currently, the total number of students enrolled
in K-12 schools in the country is ~317 Mn, which
comprises of 147 Mn in the age bracket of 6 -11
years, 72 Mn in the age bracket of 11-14 years
and 97 Mn in the age bracket of 14-18 years.
The number of students eligible for enrollment is
expected to grow to 328 Mn by 2013 and further to
351 Mn by year 2018. Clearly, India will need to add
at least 34 Mn additional seats in K-12 segment in
the next ten years to cater to the education needs
of its continuously growing population, as shown
in Exhibit 2.
The cost per additional seat, at a conservative
estimate is~ US$ 2400 (cost of land included
at ~US$ 1 Mn per acre ). This translates into a
minimum investment requirement of US$ 80 Bn
of investment over the next 10 years to establish
these 34 Mn seats.
The enrollment in higher education is currently at
17 Mn at a Gross Enrollment Ratio (GER) of 13%.
Enrollments are projected to grow at a CAGR of
5.6%, reaching 22 Mn by the year 2013 and 29
Mn by the year 2018.As per these estimates, 12
Mn additional seats in the higher education would
perspective
a quar terly repor t by
need to be created by the year 2018 as shown in Exhibit 3. The cost per seat in a regular higher education
institution is ~US$ 8300. Therefore, the total investment that India needs for creating the projected additional
capacity in higher education alone would require an investment of ~US$ 100 Bn.
The vocational education and training landscape of India is extremely underdeveloped. India currently
has 5,500 industrial training institutes and 1,745 polytechnics as compared to 500,000 similar institutes in
China. This infrastructure caters to only ~2.5 Mn people annually. There are 175 trade training programs
in India compared to 1,500 in the USA. Clearly there is a pronounced skill gap in terms of both quality and
quantity in the country.
As estimated 85-90 Mn people with vocational skills would be required in various sectors between 2008-
2013. According to industry sources, the split of people intake sector-wise over the next 5 years will be 44.8%
from the services sector, 31.2% from agriculture
and 12.6% from manufacturing.
Cost per seat will vary significantly in this segment
depending on the location, scale, positioning of
training service and investment by private players
vs. the government. Indicative costs per seat in the
private sector are outlined for a few representative
short term vocational streams as shown in
Exhibit 4.
Exhibit 2
400
300
200
100
0
Exhibit 3
Parameters
Total Current and Projected Growth in
K-12 Enrollment (Mn)
97
72
147
2008
97
74
158
Health &
Beauty
100
171
2013 2018
Counseling
Volume 02 / 2009
6-11
11-14
14-18
Source: Technopak analysis
Exhibit 4
Cost per Seat Estimation in Few Vocational
Streams of Education
English
Speaking
No. of Students 1380 560 1180
Capex- 1 Centre (US$) 195,800 133,333 100,000
Cost Per Seat (US$) * 145 240 84
80
Total Current and Projected Growth in
Higher Education Enrollment (Mn)
GER
13%
17
GER
17%
22
2008 2013
GER
21%
29
Age Groups
Enrollments
in Higher Education
2018
Source: Technopak analysis
Source: Technopak analysis
| Volume 02
Forecasting the Financial Potential in Education | 70