BUSINESS PARTNERS

PROPOSAL

Introduction & Current Scenario

Educomp Vocational Education Pvt Ltd (EVEPL) is a 50:50 joint venture between Educomp Solutions Ltd and Pearson India. As per McKinsey estimates, by 2015, Indian manufacturing will witness a 50% growth in demand for manpower while the Services Sector requirement in the top 10 growth sectors is growing at an estimated 4 to 5 million employees every year. Overall, the global shortage of skilled manpower will be a staggering 56.5 million annually by 2020. All these underline the dire need for a robust vocational training infrastructure in the country. EVEPL is a pioneering initiative from Educomp Solutions Ltd & Pearson India to address the massive skill gap in India. EVEPL has been set up with a view to bridging the gap between employment opportunities and the skill and knowledge base of the unemployed youth in the country through capacity building and training inputs while helping them to obtain suitable employment opportunities. Founded on a multi-dimensional approach towards bridging this skill gap, EVEPL is creating a talent pipeline for various industries by running educational courses customized to the skill and competency requirement that will enable large numbers of youth to upgrade skills specific to various sectors and find assured employment in the fast growing economy. EVEPL will also design, deploy and integrate employability linked courseware in regular curriculum of graduate and post graduate courses in colleges and Vocational Training Centers (VTCs) across cities.

The companys mission is to provide 500.000 persons ready to deploy to the industry annually by 2012; be the top Vocational and Skill Development Company in India and to create and deploy globally transportable skills sets.

With this strategic 50:50 JV with the US based Pearson Group, one of worlds largest Education/media group, EVEPL is poised to take a leadership position in the Vocational Education space in India and play a pioneering role in building the much needed vocational education framework. To ensure that a venture in vocational education training is successful, it is necessary for the investor to go through a branded company with best technical know how. There is no better company than EVEPL in the area of education.

Company Profile
Currently EVEPL Initiatives are essentially structured under three key peripherals: 1. PurpleLeap 2. CA ETEN (Technology-enabled Coaching for CA aspirants) 3. Vocational Studies * NOTE: The Business partner proposal is for Vocational Studies division only, other divisions of EVEPL are Separate business units to be interacted with separately 1. About PurpleLeap PurpleLeap is a holistic platform that helps students to succeed in their careers. PurpleLeap offers the complete talent lifecycle ecosystem of assessment, skill enhancement and industry partnership for talent absorption. With top professionals as mentors and customized career programs, the students become workplace ready and meet the emerging industry challenges with ease. College Partnerships: In strategic partnership with colleges, PurpleLeap sets up a Career Centre on campus premise to help students realize their dream careers. At the same time, we enable Corporate to leverage PurpleLeap Career Centre to acquire quality talent and reduce the hiring and training costs. PurpleLeap is focused at building student careers after graduation and make them ready-to-go for entry level roles across IT & ITeS industries. Corporate: Save cost for the corporate by providing pre-trained talent and build operational efficiencies by providing detailed skill-map for each candidate. PurpleLeap conducts intensive 400 hour training at college campus. These resources are trained for one of the entry-level roles across industries - Software Programming, Software Testing and Remote Infrastructure Management. 2. About ETEN CA Educomp Tele Education Network for CA coaching or ETEN CA is an initiative to address the coaching needs of CA students. A variety of coaching options are available for Pre-Engineering, Pre-Medical and Management courses, but, that has not been a case with Commerce Students. The initiative is aimed at mitigating many of these challenges and to help CA students get advanced, scientific and personalized coaching from acclaimed faculty, at their home town, and at a lower cost compared to what they would have incurred if they took face-to-face classes from the same faculty. ETEN CA has setup training centers in metro cities as well as in non-metro cities, where the students can attend the classes nearer to their home town, while from its central studios ETEN CA relay the live lectures at all these centers simultaneously. At ETEN CA, the best and the most recognized faculty members are engaged for coaching to CA aspirants. These faculty members are well known for the quality of training, methodology and command on the subject. ETEN CA has established a large network (40 Centers and still growing) of centers, so that a student conveniently can attend the classes, being nearer to his/her hometown. 3. About Vocational Studies Vocational Studies, the employability skill enhancement venture, has the vision to become the largest brand for ready-to-deploy entry-level talent in India.

Vision & Mission Educomp Vocational Education (P) Ltd (EVEPL)

EVEPL launched Vocational Training Centers (VTCs) aims at bridging the gap between employment opportunities and the skill and knowledge base of the unemployed youth through capacity building and training inputs and helping them to get into entry level employment opportunities. The program is highly sensitive to market demand and takes up only those employable trades which have demand in the local market. The training curriculum is also designed in consultation with the local business establishments and enterprises. This not only ensures a match between the market or industry expectations and the skills of the trainee but also helps in getting them entry level jobs easily.

Vision:
Provide Talent for Indias economic growth engines.

Mission:
500,000 persons available ready to deploy to the industry annually by 2012 Be the Top Vocational and Skill Development Company in India. Create and deploy Globally transportable skills sets

Our Critical Success factors:

Leveraging Technology at all parts of the Value Chain Develop Content which is Modular and can change rapidly with the environment and requirements of the Industry Strategic Tie-ups with partners to improve the reach Cost Effective products for the market

Why EVEPL Vocational Training Centre?

The legacy of the largest education company of India and the Global leader in integrated education publishing: Access to perhaps the global single largest content library at Pearson; Leveraging on existing relationship in ICT with Govt. and K-12 sector; In-house availability of the best technology in education delivery- Smart Class Training by experienced faculty who have gone through centralized rigorous training and certification process Reaching out to the Target group through a hub and spoke network of centres: Innovative solutions for low cost of training delivery Structured & scientifically designed pedagogy, instructor guides, course material and workbooks.

Various Courses Offered by EVEPL: English Language Training Language Edge

Language Edge is a programme by EVEPL which covers not only Spoken English but also Communication skills, Personality Development and Interview skills. The programme has been designed keeping in mind the importance of communication skills in Todays world. It is a bi-lingual (Hindi and English) programme and will help the learner achieve more confidence and fluency in expressing himself and also to be more presentable.

Educomp IGNOU CII Programs

1. Certificate in Spoken English and Personality Development 2. Advanced Certificate in Spoken English and Personality Development 3. Professional Certificate in Spoken English and Personality Development The programmes are targeted for those who want to learn to speak in English for career advancement and want to improve their communication skills, and they are also designed for housewives/students who want to improve their communication as well as social skills.

Accounting Edge
1. 2. 3. Accountant Basic Accountant Plus Direct Taxes , Indirect Taxes and Industrial Law Professional Accountant Tally 9.0

The objective of the course is to create talented entry level accountants for general industry. The candidate will be exposed to Fundamentals of Accounting, Direct & Indirect Taxes, Industrial Law and Computerized accounting (Tally 9.0)

Sales & Retail Management Course Web On Retail

WHO & HOW TO PARTNER US?

Who Can Partner Us?
EVEPL wish to have the following profile of the applicant: Capacity to invest (Association Fee / Fixed Assets & Infrastructure Cost /) around Rs. 12-18 lakhs depending on city classification. Ownership/availability of Space of plus 1500 Sq. Ft. carpet area in a prime commercial location of the city. A sound and clear track record in business/work experience with entrepreneurial bent of mind. Profound understanding of the local market conditions, persons with knowledge of Education and Training industry would be preferred. A complete alignment with EVEPLs core business values and philosophy.

How to Partner Us? Step 1. Contact Us .

You can contact us at businesspartners@educomp.com or call us atAnkur Kashyap, Mobile:- 9899692511 Then we meet in person and have a detailed discussion on the business proposal. First level responses queries and clarifications are provided.

Step 2. Getting Started

We conduct on-site inspection of your business premises and do a business survey of your city. Based on feasibility check done, a LOI is signed between the two interested parties on payment of the initial Technical Know How Fees. On payment of the LOI, the prospective Partner proceeds with organizing for possession of venue, funds and resources for setting up the centre. The Partner sets up a Pvt. Ltd company which would be the first party in the agreement, wherein the proposed Partner should have majority stake. EVEPL, parallely conducts reference check, legal verification and vetting before proceeding with final agreement sign-up.

Step 3. The Plan Roll Out

Start the infrastructure, development work by giving you inputs on the interior decoration, layout, signage etc., which must be standardized across sectors. We begin an intensive training of your staff; recruitment, manpower enhancement etc.

PROJECT COST

Serial
1

Heads
Affiliation Fee ( Non Refundable) Service Tax @10.3%

Amount
200000 0 20,60

Software License Fee (Includes Tally, MS Office , Windows 2003) Lab Equipment - (Computer 26 Nos + Modem + Printer + Scanner + UPS) 0 50,00

346,90 0 61,50

4 5

Display & Projection Equipment Furniture & Fixtures Furniture Air Conditioners Interiors Generator Electricals

117,000 35,000 150,000 70,000 50,000 0

422,00

100,00 6 Working Capital 0 50,00 7 Launch Campaign Local 0

1,251, 8 Total 000

Break up of Project Cost

a) Lab Equipment Item 1 2 3 4 Computers* Numeric digital UPS Scanner Printer Laser Jet Total Value b) 1 2 3 Total Value c) Furniture Display & Projection Equipment 1 LCD TV 1 Speaker Acer Projector with Speaker 1 Quantity 26 26 1 1 Rate (Rs) 11000 2000 3500 5400 Total Value (Rs) 286000 52000 3500 5400 346900

30000 1500 30000

30000 1500 30000 61500

Item 1 2 3 4 5 6 7 8 9 10 Writing Chairs Computer Lab Chair Steel Almirahs Exe Revolving Chair Office Table Iron Side Rack-Four section Staff Revolving Chair Computer Tables White Board Iron Stand White Board Total Value

Quantity 50 25 1 1 2 1 10 26 4 4

Rate (Rs) 600 400 3000 3000 4000 1000 1200 1000 500 5500

Total Value (Rs) 30000 10000 3000 3000 8000 1000 12000 26000 2000 22000 117000

* Computers with common server else would be 15,000/- per system

Suggested Infrastructure
Class Rooms

4 Nos ( 300 Sq. Ft. each) Each class room is required to be equipped with 25 chairs, Projector, Screen, Fans, PC and
Speaker

Reception Area Reception Desk Notice Board Enquiry Board & Enquiry Register

Counselling Room (1 No)

Sitting Arrangement Course Brochures PC for Counselor with TFT Monitor

Computer Lab

25 Nos PC in each Lab Configuration of PCs as specified

Centre Mangers Cabin Office Boy Workstation Toilet Pantry

1 No. 1 No. 2 No. 1 No.

Interiors with respective specifications and size

Departments Class Rooms Labs Counselor Room Centre Manager Width 15 15 7 8 Length 20 15 9 9 Height 10 10 10 10 2X2.5 2X2.5 2X2.5 PC Table (W x H) Plug Points 6 6 2 2 Light Points 6 6 2 2 Fan Point 2 2 1 1

Glass Partition in Aluminum Frame Glass Specification 8mm / 6 mm Clear Glass

Man - Power Requirement of the Centre

Position Salary/Month Salary/Year

1) 2) 3) 4)
Total

Centre Manager Faculty (5 Nos) 2 Course Counselor 2 Office Boy Rs 86,000/-

Rs 15,000/Rs 50,000/Rs 15,000/Rs 6,000/-

Rs 1.80 Lacs Rs 6.00 Lacs Rs 1 .80 Lacs Rs .72 Lacs Rs 10.12 Lacs

Courses Offered and Average Fees 1) Language Edge 2) IGNOU CII ELT 3) Accounting Edge 4) Retail & Sales 5) Web on Retail
Rs 4,000 Rs 8,000 Rs 8,000 Rs 5,000 Rs 5,000

Student Intake Calculation (Normal Scenario)

Course Hrs/D Course Language Edge IGNOU CII 50 25 & 25 on 10 4 2 1 240 MTWTFS 2 3 2 450 MTWTFS 3 3 2 2 6 5 200 120 SS MTWTF Capacity 25 ay 2 Session s/Day 3 Duration (In Months) 3 Yearly Students 300 Days/ Week MTWTF Admissio n done Bi Annually ELT Accounting Edge Sales Retail Mgmt. Web Retail Remarks

Revenue Calculations
Year 1 @ 50% Revenu No Courses Languag e Edge IGNOU CII ELT Accounti ng Edge Sales & Retail Mgmt. Web on Retail Total 225 120 655 11.25 6.00 36.05 338 180 983 18.59 9.90 59.51 383 204 1114 23.17 12.34 74.19 946 504 2752 53.01 28.24 169.75 Of e Lac) 6.00 8.00 4.80 (In Students 150 100 60 Year 2 @ 75% No Of Revenue (In Lac) 9.90 13.20 7.92 Year 3 @ 85% Revenu No Of e Lac) 12.34 16.46 9.87 (In Students 255 170 102 TOTAL No Of Revenue (In Lac) 28.24 37.66 22.59

Students 225 150 90

Students 630 420 252

10% Fee Increase is assumed every Year

Expense Calculations Head

Salaries Rent Electricity Telephone Promotion & Marketing Printing, Stationery, Courier , Photocopy & Misc Total

Monthly Year 1
0.86 0.25 0.08 0.05 0.15 0.08 1.47 10.32 3.00 0.96 0.6 1.8 0.96 17.64

Year 2 Year 3
11.35 3.30 1.06 0.66 1.98 1.06 19.40 12.49 3.63 1.16 0.73 2.18 1.16 21.34

10% Increase in Expenses is assumed every Year

3 Year View Profit Year 1 Year 2 Year 3 Total 31.55 52.09 64.93 148.56

Total Revenue Revenue to Business Partner @ 65%of AGR Expenses of Business Partner Net Profit of the Business Partner

20.51 17.64 2.87

33.86 19.40 14.45

42.20 21.34 20.86

96.57 58.39 38.18

General Terms and Conditions:

1. The Business Partner shall have a gross revenue sharing of 65% and 35% shall be retained by EVEPL. 2. The Business Partner is required to procure the space / infrastructure and complete the interiors (including air-conditioning, computers, furniture, office equipments etc) at the site as per EVEPL specifications. Further any modification / addition in infrastructure shall also be the responsibility of the Business Partner. 3. The contract shall be for the Vocational Studies division of EVEPL (other businesses ETEN CA & PurpleLeap are not within the scope of the proposal) and shall be valid for a period of 3 (Three) Years from the date of signing of the Agreement. 4. The contract shall be further renewed for a period of 3 (Three) Years, on the discretion of the Management and on the prevailing terms and conditions. 5. The figures mentioned in this proposal are indicative. Actual result may vary depending upon location to location and the efforts implied by each Business Partner.

Support to Business Partners:

1. Active support & guidance for centre start-up includes Site selection. Centre layout planning. EVEPL helps in charting out areas such as the reception desk, counselors station, computer labs, classrooms, etc. Recruitment (of staff, faculty, etc.) support. Support in marketing launch of the centre.

2.

Course design and delivery output The company has experience in developing the most appropriate, updated course material. EVEPL develops its own curriculum for all courses. This is done by the company's special content development team Courses are designed after extensive industry & market research, ensuring healthy demand among students & engineering aspirants. Access to latest technology. EVEPL teaches the latest technology as it is launched. The company helps train the Business Partners' faculty on the new software.

EVEPL provides teaching aids to train faculty to conduct the course in the best possible manner.

3.

Marketing Support

Marketing & advertising campaigns for press, TV, Internet, outdoor & radio are developed and run by EVEPL. The company also provides designs for advertising material such as banners, posters, signboards, etc. for use by the centres.

National Campaign in leading publications shall be designed and executed by EVEPL and 100% of the advertisement/branding/communication spent shall be borne by EVEPL.

Regular performance reviews & training sessions are conducted for staff of the business partner. Student scholarships & other schemes are run from time to time to give a boost to business. Advertising & brand development initiatives through various Internet-based & traditional press & outdoor advertising. Ongoing advice to the centre on how to improve business as well as taking inputs on market & strategy from the centers.

4.

Academic and Technical Support Timely faculty evaluations help the centre identify those faculty members who need training. Faculty training & exams leading to certification are conducted, ensuring that the centre has faculty with the right skills to provide proper training to students.

Day-to-day support on how to deliver i.e. conduct the courses.

Support to Business Partners Cont.:

5.

Central Logistics Support Course material including books & CDs both for students & faculty are printed/ published by EVEPL & delivered to centers as per their requirements.

Marketing & promotional material such as banners, posters are also centrally printed if required and sent to the centers.

Students mark sheets & final certificates are also printed and dispatched.

6.

Business Development Support From time to time, EVEPL also conducts marketing activity that generates enquiries from students interested in taking courses. The company also runs a call centre for handling student enquiries. All these enquiries are passed on to the centre.

7.

Placement Support Full-fledged Placements Team dedicated to finding appropriate job openings for trained students across all centers.

The Placements Team: Conducts job-oriented training workshops for students, increasing visibility of brand & credibility of the centre. Organizes industry visits to familiarize students with job roles & opportunities & to build their industry contacts.

Sources job opportunities for students. Identifies internship opportunities for students in IT companies. Conducts training programs for centers own placement executives, if any

Learn what your role as a Business Partner will be.

1.

Infrastructure The Business Partner should own/ lease an appropriately large space (typically, over 1500 square feet) to start the new centre. A central location, easily accessible by students, is preferred. The furniture, PCs & related items too are the Business Partner's responsibility.

2.

Operations The business partner is responsible for the day-to-day operations of the centre e.g. ensuring that the classes are held.

3.

Recruitment Selecting & appointing counselors, administrative staff & faculty is another role the Business Partner plays.

4.

Marketing The business partner invests in promoting & marketing the centre & its courses in the city/ area near the centre. This includes advertising in various media, conducting local ground events or promotions and so on.

5.

Recurring Business Partner fees and Technical know how The business partner shares a 35 percentage of the gross revenue with EVEPL as well as pays onetime Business Partner Registration Fee (lump sum) charges for the know-how.