E LEARNING

The E Learning market in India is a $360 million market as per the 2008 data. It is expected to reach $3750 million by 2012 excluding the corporate level e-learning. The E-learning market can be divided into two segments:

1. Online Education
2. Multimedia & ICT in schools

Online Education

The online Education is a $200 million market out of the total $360 million of the E-learning market, and is expected to reach $2500 million by 2012. This is shown in the following table:

Expected Growth of Online Education

Multimedia and ICT in Schools

The schools may be private and public schools. In 2008, the private schools and public schools comprised of $70 million and $90 million respectively. This is expected to grow to $500 million and $700 million for private and public school respectively by 2012. This is shown in the following table:

Expected Market Growth in Multimedia and ICT in schools

Main Drivers of the E-Learning Market

1. Low penetration in schools.
2. The government initiatives
3. Increase in broadband and internet penetration.
4. Increase in demand for Online Courses.
5. Increase in sales of Personal Computers.

In 2008 every 50 individual out of 1000 owned a PC.

Low penetration in School: Out of the 9, 50,000 public schools and 50,000 private schools, the penetration rate of E-learning is just around 3% and 1% respectively. This provides a big opportunity for the private equity players who are focusing on this sector.

The government initiatives: From the year 1999, government has been aiming to improve the computer literacy at school level and is encouraging and promoting the computer education.

Such as:

1. Sarva Siksha Abhiyan
2. ICT program

Sarva Siksha Abhiyan: During the 10^th 5 year plan, the government invested $11 billion and it was increased to $68 billion during the 11^th 5 year plan. See below Chart.

ICT program: Presently there are 45,000 schools under the ICT program and was expected to add more than 29,000 more schools during the year 2008-2009.

Increase in broadband and internet penetration:

1. Online Tutor demand in India has increased drastically with the increase in broadband penetration.
2. Due to this increased penetration, many players are also looking to enter into the market.

As you can see from the below tables, the internet usage levels (regular usage (people who use at least once in a month)) in the urban can grow at 10% from 2008 to 2009 and in rural the growth rate is 7% for the same time period. The internet subscriber during 2008 was 15.2 million and is expected to grow to 45.4 million by 2012. The broadband subscribers are expected to reach 27.3 million by 2012 from 5.8 million during 2008.

Increase in demand for Online Courses:

1. Many renowned institutes like IIM, IIT, and other players are encouraging students to access there course works and materials online.
2. Working professionals are increasingly enrolling in the online education.

Factors affecting the E-Learning Market

1. Due to the systematic procedures, the receivables from the government of India get delayed.
2. The bills are raised by the companies usually only during the end of each quarter.
3. The bills that are raised to government schools take long time to be cleared, and the debtor days have been increased to 170 – 180 days for the private players.
4. Companies need high working capital due to the high debtor days.
5. Only AICTE certified institutes can offer online courses.

Internet Usage (regular usage alone)

Expected Internet and Broadband Subscriber base