Adani Group Want to Invest in Education Sector

Amount = 10,000cr

Introduction
With nearly 27% of India's population in the 0-14 year old group,
India's education sector offers ample opportunities for growth. In 2020,
India's Gross Enrollment Ratio (GER) in tertiary education was 27.1%.
India's education sector was valued at her US$117 billion in FY2020
and is projected to reach US$25,225 billion by FY2020.

India's online education sector is growing fast with $2 growth. 28 billion

is expected between 2021 and 2025, at a CAGR of nearly 20%. Indian
higher education institutions are focusing on creating online programs
due to increasing consumer demand. A total of 71 Indian institutions
have qualified for Times Higher Education's World University Rankings
2022, up from 63 in 2020.

Amazon has launched a global computer science education initiative in

India. Amazon India has also launched the second edition of its
Machine Learning (ML) Summer School. It is intended to provide
students with the opportunity to learn key ML technologies from
Amazon scientists and prepare them for careers in science.

To liberalize the sector, the government has taken initiatives such as

the Higher Education Bill and the National Accreditation Regulator for
Foreign Education Institutions Bill. The government programs
Revitalizing Infrastructure and Systems in Education (RISE) and the
Education Quality Improvement and Inclusion Program (EQUIP) are
helping the government to address unresolved challenges facing the
education sector. Increase.

The National Education Policy (NEP), which will be fully implemented

over the decade 2021-2022, will focus on quality VET. Under the
National Education Policy 2021, the government will establish regional
and national virology laboratories, more than 15,000 schools, 100 new
Sinic schools and 750 eclavian-style boarding schools in tribal areas.

The Central Government has approved the New India Literacy Program
for the fiscal year 22-27, covering all aspects of adult education, in line
with the National Education Policy 2020 and Budget Announcement
2022-23.
 This commission, in collaboration with central and state agencies, aims
to empower female students in the workforce by offering sessions on
personal development, professional career her skills, digital literacy,
and effective use of social media. Get ready for the market. In this
scenario, infrastructure investment in the education sector could
increase significantly.

Why investing in Education sector is good for business

The Indian education sector is one of the largest in the world with an estimated
market size expected to reach Rs 570 crore by 2020. During these difficult
times, we all have to accept that the government finds it difficult to cope with
the current educational situation in this country. Difficulties in obtaining financial
aid, rising school dropout rates and the permanent nature of India's classrooms
are some of the thorny issues. The education sector is one of the best
investment areas in the country.

Considering the investment opportunities in online learning and distance

learning, the market size could be among the top 5 industries in India. There are
many reasons and ways for entrepreneurs to invest in the education industry to
ultimately yield higher returns and make a big difference in the current tough
education scenario. First, the government consistently invests heavily in the
school education sector. The alarming proportion of children who drop out of
school, especially in rural areas, is a key reason why efforts to improve school
environments are important.

New government initiatives and investments are opening up tremendous

opportunities for large corporations and start-ups to bring about tremendous
transformation. The most attractive sector of the education industry is the pre-
school and school sector, where a sharp increase in parents' willingness to send
their children to international schools is opening new doors for education
entrepreneurs. I'm here. Companies can invest in innovation and expertise to
make the classroom more advanced. The field of education is not limited to the
classroom only.

All these factors that are lagging behind the Indian education sector to improve
the quality of education, create technology classrooms and ensure methods and
strategies to prevent children from dropping out of school. You can use it for
improvement and expect high profit. Plus, an investment.

Segment analysis
Regulatory uncertainty is a big deal for investors, but it's not enough to deter
them. Additionally, an ed tech company or corporation that provides
educational services is not limited to non-profit status. In most cases,
education-centric laws also do not apply. With this in mind, companies that
provide educational and construction services to educational institutions are
the most likely places for investors to invest. This opens up a wide range of
options for investors, such as providing administrative services, curriculum
design and appropriate training for teachers. The advantage of investing in
these segments is that they are market players that cover the entire
education sector, regardless of school or college.

Other possible segments that could be eyed for aggressive investment plans
are

 Test-prep services- Tutoring as a practice has been forced to

undergo monumental changes as it becomes increasingly difficult to
pass state/national entrance exams for colleges and employment
opportunities. Reliance on institutional methods and teacher-centred
approaches has changed significantly to meet the promise of
performance and content delivery models. As companies serving
students promise high scalability, this sector Investing in is
important. However, this scalability will only occur if companies can
continue to deliver consistent quality teaching materials and meet
the individual needs of their students. To do this, these companies
need to streamline the technical methods of delivering content,
assessing students, and benchmarking self-directed learning. The
key to investing in successful companies in this segment of the
market is for investors to invest large amounts from time to time
and build a long investment horizon before betting on profits.
 Vocational education- Given India's large population and the
distribution of per capita incomes in most cities, college-educated
students are more likely to find employment than to receive higher
education in the form of research opportunities. much higher.
However, from an industry-specific perspective, graduates lack
practical relevance and cannot be employed in the industry. Here,
investors can focus on investing in private companies that provide
upskilling opportunities for students to pursue her IT and hospitality
industry. Currently, the IT training market is one of the largest
vocational training segments and is expected to grow into a multi-
million-dollar industry.
 Educational services- Foreign investors can offer investment
opportunities in educational institutions that help educate and
develop student skills to improve employment opportunities. This
market sector differs from vocational education in that the scope of
regulation does not include profit-based educational services
provided to students. Foreign investors can use the PPP program to
develop courses based on their employability in specific industries.
 PPP Model – The PPP model in education is essentially an
amalgamation of non-profit activities carried out by for-profit
government agencies that run educational institutions. The Supreme
Court has previously ruled that entities operating in the education
sector are necessarily non-profit. However, a reasonable surplus from
the operation of such institutions is allowed, making PPPs a preferred
 model for foreign investors who are apprehensive about long-term
investment in the Indian community. All investment companies provide
technical assistance in addition to financial assistance. Therefore,
foreign investors can enter the higher education sector and provide
advice on infrastructure investments and future expansion capacities.
This market segment is already flooded with private companies that
have established niche models such as basic infrastructure model,
outsourcing model, equity or hybrid model, and reverse outsourcing
model. In line with current market trends, foreign investors can find a
strong and secure footing in the education sector through this market
segment. Another benefit of the PPP model is that investors can set up
educational centers in different parts of the country. This will benefit
large companies in both the public and private sectors as it is funded
by the Corporate Social Responsibility Regulation. Required upfront
payments and infrastructure support may be extended by respective
state governments.
 Ed-Tech- Due to the ongoing pandemic, online education platforms are
currently the largest market players in the education sector. Compared
to educational institutions, online education platforms are highly cost-
effective as programs are delivered online and no investment is
required to build assets other than intellectual property. Byju is
planning his IPO in the near future, but other online education
platforms are also on board as students shun physical coaching centers
and underlie most self-paced, modular, work-from-home education
models. prosperous. If that doesn't look promising to investors, a
report from KPMG shows that India's online education industry is
expected to grow eightfold by the end of 2021.

So, we are going to invest in Ed-Tech which is very Popular among These days.
Some Company like BYJUS, Physics Walla, etc. Because due to easily availability
and affordability student like it so much.

ED- TECH
Smartphone users are expected to reach 859 million by 2022, up 84% from 468
million in 2017. Mobile penetration is on the rise in India due to the expansion of
affordable and high quality smartphones and mobile/data connectivity services.

These developments offer great opportunities to offer education online in India.

Some of the reasons for this are:

A decline in the quality of schooling in all but the most expensive private
schools. Local online education start-ups such as BYJU`s and Unacademy are
proliferating across India, providing school children with innovative, engaging,
interactive and fun learning modules to complement and enhance their learning.,
which fills this gap. Both BYJU`s and Unacademy are headquartered in
Bengaluru and have prominent investors such as Sequoia and General Atlantic.
Many online programs are often taught by experts and industry veterans. Such
programs are more accepted due to the practical insights they provide and their
ability to bridge the gap between theory and practice.

India has long established the concept of open and distance learning (ODL) and
includes universities such as Indira Gandhi National Open University (IGNOU),
Delhi. Few students in India can afford to go abroad for higher education. With
the liberalization of India's foreign investment policy, it won't be long before
foreign universities have a significant presence in the country, offering both
physical and online courses.

Rise of online education businesses

In today’s time, the EdTech business in India is the world’s second-largest, and
it is just growing. It is estimated to reach US$ 4 billion by 2025, growing at a
39.77 per cent CAGR. This expansion is being driven by the increased value of
non-academic courses from tier II and III cities, along with the need for
customization in the EdTech field.

The term “EdTech” is a coined word combining the terms “education” and
“technology”. It refers to technology designed to improve educational outcomes.
These startups are using tools like virtual reality, video, robotics, interactive
screens and online courses to make education more fun and accessible.

Primarily, there are five models which are growing at a rapid pace in ed-
tech in India,

1. primary and secondary supplement education;

2. test preparation;
3. reskilling and online certifications;
4. higher education and language; and
5. casual learning

As pet the report published by KPMG, reskilling and online

certification has the maximum paid users i.e. approximately
499,000.

Where to Start ?

Legal Works
Legal Obligations for Edu-Tech Start-up in India: -

 Registration as an Entity - Only after registration as a legal entity does the

government approve the existence of such a legal entity.
  Protection of Intellectual Property (IP) - Intellectual property is at the heart of
businesses that use technology, so protection of intellectual property rights (IPR)
is essential.

 Consideration of different legal structures for an EdTech institution -  This

includes the formation and consolidation of a corporate legal entity, which can be
a Limited Company or a Limited Liability Partnership L.L.P. firm.

 Register for GST Compliance - The Ed Tech Company must obtain GST
registration.

 Creation of Domain name and websites - Websites and internet domains play an
important role in establishing a good reputation in the market. Having a distinct
domain name establishes credibility for the conduct of business.

 Compliance with Information Technology (IT) Act, 2000 - Specific to the needs of
the business model, an Ed-Tech platform may be recognized as an intermediary
(for example, an Ed-Tech marketplace) under the IT Act. An intermediary is
required by Indian law to follow the provisions of the Act and the Information
Technology (Intermediaries Guidelines) Rules, 2011.

 Registration of Intellectual Property (IP) - When you register your intellectual

property, you gain exclusive rights to it. Intellectual property is the foundation of
an Ed-Tech structure; it is critical that the rights are vested with the appropriate
entity.

 Registration of essential Agreements - Such contracts include preparing Non-

Disclosure Agreements (NDA), Intellectual Property (IP) Agreements, Website
Policies & Agreements, and Confidentiality Agreements.

 Get a Payment Gateway - The Payment and Settlement Systems Act of 2007
governs payment systems in India. PayPal, PayUMoney, and other payment
gateways are used by businesses.

 Get data protection In India - Data protection provisions are covered by the
Information Technology Act of 2000, as well as the “Information Technology
(Reasonable security practices and procedures and sensitive personal data or
information) Rules, 2011.

The registration process of Edu Tech Start-up in India –

 Incorporate your Business - To get started, you need to incorporate your
company as a limited liability company, partnership, or limited liability company.
You must complete all the standard business registration procedures, such as
applying for the Certificate of Incorporation/Partnership, PAN and other
necessary compliance requirements.

 Register with Start-up India - Therefore, the Company must be registered as a

newly incorporated company. The entire procedure is very simple and can be
completed online. All you have to do is visit the Start-up India website and fill out
 the company information in the form. Next, enter the OTP that was sent to your
email address, along with other startup information like user type, name and
startup stage, and more. Start-up India profile is created after entering this
information. After creating a profile on the website, start-ups can apply for
accelerators, incubators/mentors and other challenges, as well as access
resources such as apprenticeship and development programs, government
programs and government policies on entrepreneurship. ups and backing
services.

 Get DPIIT Recognition - After creating a profile on the Start-up India website, the
next step is to gain accreditation from the Department of Promotion of Industry
and Internal Trade (DPIIT). This recognition allows startups to benefit from
advantages such as access to high-quality intellectual property services and
resources, relaxation of public procurement standards, self-certification in labor
law and environment, easy liquidation of businesses and access to capital. funds,
tax-free for three consecutive years, and tax-free on investments above fair
market value.

If you are a new user, click the "Accredited" button to get DPIIT. If you are an existing
user, go to the `` Dashboard '' tab and then to the `` DPIIT-aware' section.

 Recognition Application - A page titled "Accreditation Request Details" is

displayed. On this page, in the Subscription Details section, click "View Details".
Complete the 'Startup Accreditation Form' and press the 'Submit' button.

 Documents for Registration –

1. Incorporation/Registration Certificate of your start-up

2. Details of the Directors

3. Proof of concept like pitch deck/website link/video (in case of a validation/ early
traction/scaling stage startup)

4. Patent and trademark details (Optional)

5. PAN Number

 Recognition Number - When you apply, you will be given a recognition number for
your start-up. The certificate of recognition will be issued following the
examination of all your documents, which is usually completed within two days of
submitting the information online.

 Other Areas –

1. Patents, trademarks, and/or design registration -  If you require a patent for your
invention or a trademark for your business, you can easily approach any of the
government-issued facilitators. You will only have to pay the statutory fees,
resulting in a fee reduction of 80%.
 2. Funding - Access to finance has been one of the most difficult challenges for
many start-ups. Entrepreneurs fail to attract investors due to a lack of experience,
security, or existing cash flows. Furthermore, many investors are put off by the
high-risk nature of start-ups, as a significant percentage fail to take off.

3. Self-Certification Under Employment and Labour Laws -  Start-ups can self-

certify under labour laws to reduce compliance costs. Self-certification is
available to reduce the regulatory burden, allowing them to concentrate on their
core business. Start-ups have three to five years from the date of incorporation to
self-certify their compliance with six labour laws.

4. Tax Exemption - Start-ups are exempt from paying income taxes for three years.
However, in order to receive these benefits, they must be certified by the Inter-
Ministerial Board (IMB). Start-ups formed on or after April 1, 2016, are eligible to
apply for income tax exemption.

First Step –

After all these legal works we launch our first product as a CAT coaching
Because online system is innovative, convenient, easy to approach and
computer-based, wherein the aspirant doesn’t require to commute to the
coaching centres and enables to take the class at convenience.

So, after funding Of Rs. 10,000CR These are the areas we have to invest
first.

Particular  Cost  Particular  Cost 

App Making   Rs 30 lac Computer Rs 20lac

License  Rs 13 lac

Office  Rs 4lac

Promotion Rs 4cr

A/C  Rs 10lac

Packaging Machine Rs 5500

Books and Material   Rs 10lac

Tabs Rs 20 lac
 Employees Rs 1 cr

Furniture  Rs 10 lac

Total = Rs 10,000cr

Pricing Strategy

Product  Procuring Sales Margin

cost (RS) price (RS)
(RS)

CAT
Coaching
3 month

CAT
Coaching
6th
month

Cat
Coaching
1 year

Cat
Coaching
2 year
Sales Forcasting

Months  No of unit Profit / Surplus 

sold  loss 
1
2
3
4
5
6
7
8
9
10
11
12
Sales Forcasting

Fixed Cost

Margin Per Unit

Target Customer Per Day

Target customer per month

Target customer per hour

Swot Ananyslis

Strength Weakness

 High product Quality : a mix of  Finding out the cost-effective

video lessons and interactive
tools to personalise learning for
every student. Visual graphics
and animations to get students
engaged.
 Business model: Freemiurn
 Quality talent management:
small teams with 3-4
engineering graduate, 1 -2
subject researcher, with faculty
10-15 years of experience.
sales model is critical.
 The number of enrolments in
US is lower and hence the
sustainability of model is critical
 Also, investment on education
by parents in US is below
average.

Opportunities Threats
 Regional language
 Growing digitalisation in India  Business model could be
 Introducing For Professional imitated.
Courses  High cost of replacing existing
 Untapped Semi- Urban India experts or classes.
 Only Tapped 2% of the student  High lead time to produce one
course.
 Data privacy.
 Competitive pressures.

Pros Description

Flexibility You can put as much time into the business as you'd like. If you like the work and
have some initial experience, you can start small and manage all aspects of the
business on your own.

Ability to start It's not necessary to have a physical storefront or office space to get your
your business from business started. You can do everything from the comfort of your own home, at
home least in the beginning!

Little startup costs The cost to start a edtech startup costs significantly less money than most
required businesses, ranging anywhere from 12 to 11,659.
 Pros Description

Rewarding work Starting a edtech startup can be really rewarding work. After all, you are solving
an immediate issue for your customer and you're working on something you
truly care about.

Scalable With businesses and processes changing daily, there will always be demand for
new features, products and services for your business. Additionally, there are
several different business models and pricing tiers you can implement that will
allow you to reach all types of customers.

Traffic to your A edtech startup gives people a reason to visit your website and to keep coming
website back to you!

No overhead costs To get your edtech startup started, there are no costs associated with overhead,
storage, packaging, etc. This will save you a lot of time and money!

Meaningful You never know who you will meet as a edtech startup. This could be the start of
business an incredible business opportunity!
connections

High margins The gross margins for your edtech startup are typically around 65%, which is
considerably high and allows you to grow your business and manage costs easily.

Quick build time The average time it takes to build your product is quick - typically around 7
months. This will allow you to bring your product to market faster.

Control of With starting an edtech startup, you have the unique ability to choose how little
workload or how much you want to work. You also have the freedom to decide which
projects you want to work on, and can turn down the ones that do not interest
you.

Unlimited income With starting an edtech startup there is no cap as to how much income you can
potential make. The stronger your business skills and the more energy/time you put into
your career, the more you'll make.

You are your own With starting an edtech startup, you are the one to make decisions for almost all
boss! of the operations. Calling the shots can be empowering and liberating!

Simple business A edtech startup has the advantage of a simple business model, which makes
model launching and building the business more seamless.

Minimal Starting An Edtech Startup requires little experience and no specific certifications
experience or qualifications. To be successful, you need hard work, determination and the
required desire to achieve greatness!

You get to do With starting a edtech startup, you get to put your energy into something you
something you are truly passionate about! You'll find yourself devoting as much time and
truly love energy as possible into the business to make it successful.
 Pros Description

Express your With starting an edtech startup, you can express your opinions and knowledge
opinions to your audience, which allows you to build your own reputation and identity.

You can work from Not only can you start your edtech startup from home, you can also run your
anywhere! business from anywhere in the world. This is the entrepreneur dream.

Easy to Learn The When starting your edtech startup, there is a ton of information readily available
Business to you online (Facebook groups, Youtube videos, Starter Story etc). This will help
you get the business started and answer any questions, doubts or concerns you
may have.

You get to inspire Your business is one that encourages and inspires others, which in itself, can be
others very fulfilling.

You establish With starting an edtech startup, you establish yourself as an expert in your
yourself as an niche, which builds your credibility. In return, customers are more likely to trust
expert you and refer you to other friends and family.

Various different With starting a edtech startup, there is not just one business model to choose
ways to make from. This field is amazing in that there are various different ways to make
money money. Although this may complicate things, it's great to have different options
and sources of revenue.

Make money while The advantage of starting a edtech startup is that you have the ability to have
you sleep passive income and make money while you sleep. This is the dream for many
entrepreneurs.

Cons Of An Edtech Startup

Cons Description

Crowded Space Competition is high when it comes to your edtech startup, so it's important that
you spend a good amount of time analyzing the market and understanding where
the demand lies.

Constant You may find yourself constantly needing to update your edtech startup in order
maintenance of to stay relevant for your audience and for those searching on google.
publication

Lack of benefits With a edtech startup, you are typically self-employed and responsible for finding
your own insurance, which can be quite costly and time-consuming.

Isolation Often times, as a edtech startup, you typically work alone and do not have much
face-to-face interaction with other team members.

Taxes As a edtech startup, you typically pay self-employment taxes which can be quite
high. It's important to understand what you will be paying in taxes each year so
you can determine if the work you're taking on is worth it.

No safety net Typically, as a edtech startup, you do not receive a consistent pay-check and
 Cons Description

instead earn money based on your transactions each month. During the slow
periods, you typically take away less since the job is based on commission. It's
important to budget accordingly for the slow times.

Work can be You may find creating the same product over and over repetitive and tiresome.
repetitive One way of avoiding this is to diversify product lines and revenue streams - this
will keep things interesting!

Time commitment With starting an edtech startup, all responsibilities and decisions are in your hands.
Although this is not necessarily a negative thing, work life can take over at times.
This can place a strain on friends and family and add to the pressure of launching a
new business.

Difficult to build With starting an edtech startup, there can be minimal face-to-face interaction,
trust with your which means it can be a lot more difficult to establish trust with your customers.
customer You'll need to go the extra mile with your customer to grab their attention and
business.

Be prepared to get Although this is exciting for some entrepreneurs, it can be a big challenge for
out of your comfort others! You may find yourself in uncomfortable social and business situations,
zone! jumping into tasks and responsibilities you aren't familiar with, and pushing
yourself as far as you can go!

You might struggle If you bootstrap your business or choose not to pay yourself (or pay yourself less
financially (at first)! than you were making at your corporate job), this can be financially taxing. It's
important to adjust your lifestyle and set a plan for yourself so you don't find
yourself in a stressful situation.

Minimal physical A big part of starting a edtech startup is sitting at a desk for the majority of the day
activity starting at your computer. Some may enjoy this, but others may struggle with
sitting for the majority of your day without much physical activity.

Easy target for Since your edtech startup has the ability to reach a large audience, you'll need to
criticism be able to handle criticism. The internet can be a cruel place, and regardless of
your intentions, many people will disagree with you and even take their criticism
too far. To survive in this industry, you'll need to have tough skin (or at least learn
this along the way).
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