Indian Education Market

Opportunities for US Companies

The importance of educated, skilled and employable manpower in India has gained significance in
recent times given its stage of economic development. The Foreign Education Providers Bill, once
approved by the Union Cabinet, is expected to open up significant investment opportunities by US
companies and institutions in the higher education space in India. With the passage of this bill, foreign
education providers will be able to set up independent colleges which will be treated as deemed
universities, offering independent degrees without having to seek affiliation from an Indian university or
tying up with one in partnership. This in turn will raise the standard of higher education available to
greater numbers of Indian students. This follows The Right of Children to Free and Compulsory
Education Act enacted by the parliament in August, 2009 which has come into force from April 1, 2010.

Breakdown of Private Education Sector in formal and non-formal Markets

(*Source: Grant Thornton’s Report: Education in India: Securing the demographic Dividend, March 2010)

Opportunities for US Companies in the Indian Education Market

More than half of all Indian students studying overseas choose U.S. universities. The attraction of
a U.S. education can be attributed to its variety and flexibility as well as grounding in practical and
career-focused training. The number of Indian students enrolling at the bachelor’s level, over
12,500, continues to be substantial. These students seek a foundation in both critical thinking and
practical application of learning that is characteristic of American undergraduate education. This
presents an opportunity to set up local collaboration and investments especially in higher
education, vocational training, and multimedia based education.

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 Higher Education Market in India
India has one of the largest and oldest systems of higher education. There are 324 universities, of which
131 have affiliated universities. In addition, there are private and accredited universities, institutions
created by an act of Parliament, independent institutes and over 16,000 colleges. Together they offer a
wide range of degree and diploma programs. But despite such large numbers, demand outstrips supply
by a wide margin. There are approximately 9.5 million students enrolled in higher education in India.
This number is projected to rise to 11 million over the next three years. Competition is fierce for limited
seats in competitive engineering and management programs. Reservation policies and a quota system
designed to promote education opportunities for underprivileged groups in India, further limits
enrollment opportunities for many Indians.

Education Sub-segment Market Size and Growth Opportunities

Employability in focus as services such

Vocational Training $1.4 bn; growth of 22%
as banking, airline, retail grow

Career focused - Engineering, Medicine

Private Professional Colleges $7 bn; growth of 16%
and MBA preferred

Core Education Segment with high

K-12 Schools $20 bn; growth of 13% propensity to spend amongst middle
class

Career focused - Engineering, Medicine

Test preparation $1.7 bn; growth of 20%
and MBA preferred

High adoption in middle/upper middle

Child Skill Enhancement $800 mn; growth of 20%
class in urban areas

*Source: CLSA

Private Education Market in India

According to data from CLSA, the market for Kindergarten to Grade 12 (K-12) segment is US$20bn, private
professional colleges at US$7bn and tutoring at US$5bn. These are the largest segments of the total private
education market estimated to be worth over US$40bn. Other meaningful and fast-growing areas include
vocational training at US$1.4bn, test preparation at US$1.7bn and preschools at US$1bn. India’s 75,000
private schools account for 7% of total institutions, but enroll 40% of the country’s 219 million students –
even as some 142 million children are not in the school system.

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 About Us
IMaCS Virtus Global Partners, Inc. is a New York based advisory firm that offers services to North
American companies and funds seeking India related growth and investment opportunities. The firm is a
joint venture between Virtus Global Partners and ICRA Management Consulting Services Limited, which
is a fully-owned subsidiary of ICRA Limited, one of India's leading credit rating agencies.

Our mission is to enable our clients to transform their business by adding India as a key part of their
global footprint. Our clients benefit from our local presence, strong relationships, knowledge of local
business practice, experience, and financial expertise.

Our Professionals
Our team possesses a deep understanding of the business environment, both in the US and India and is
well connected with companies, financial institutions, governmental agencies, and private equity firms
in both markets. We have an established track record of over 15 years and 1,000 engagements providing
advisory services to a diversified client base across energy, manufacturing, infrastructure, and retail. We
also work with multilateral and bilateral government agencies, banks and financial institutions, and
regulators. We are headquartered in New York with eight offices in India.

Our Services

India Strategy & Roadmap

• Strategy Recommendations • Implementation Roadmap
• Investment Strategy • Market Strategy

Partner / Target Search

• Joint Ventures • Strategic Alliances
• Outsourcing • Distribution and Licensing Agreements

M&A Advisory
• Target Identification • Synergy Valuation
• Price Negotiations • Deal Structuring

Project / Bid Advisory

• Techno-Economic Analysis • Financial Modeling
• Concession Agreements • Contract Preparation

Operations Setup and Support

• Location Assessment • Business Structure Setup
• Organization Design • Risk Management

Market Assessment
• Demand Assessment • Competition Assessment
• Industry Landscape Analysis • Customer Acquisition Strategy

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 Representative Experience
Below is a partial list of our engagements in India for North American and European companies:
• Preparation of India entry strategy for a leading international EPC contractor.
• Business feasibility and India entry strategy for a leading North American Bank for the mortgage finance
business in India
• Market analysis and Product pricing strategy for launch of commercial vehicles in India by a global OEM.
• Financial evaluation of vendors for an international automobile company setting up a joint venture in India.
• Formulating an India entry strategy and business plan for a global monoline insurance company.
• Market study and Commercial viability assessment for setting up a 150 MW Lignite Based Power Project in
India for an international developer of power projects.
• Formulating an India entry strategy for a leading global bank.
• Assessment and Due diligence of joint venture partner for an international power project investor
• Market Assessment of commercial vehicles gearbox and seatbelts in India for a leading international auto-
component manufacturer.
• Financial assessment and valuation of India based utility companies for an international strategic investor
seeking acquisition of stake in a State Owned Public Sector Utility

Representative Global Clients

Offices
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Please visit our website www.ivgpartners.com. For further information, please contact:
- Anil Kumar in New York at akumar@ivgpartners.com or +001-646-807-9290
- Ravi Chauksey in Mumbai at rchauksey@ivgpartners.com or +91-9819234478

501 Fifth Avenue, Suite 302, New York, NY 10017; (646) 807-9290 www.ivgpartners.com