© 2005 NIIT. All Rights Reserved. China and India: The Rise of the Asian Mega Markets and What it Means for Professional Publishers Sudeep Das Vice President – Publishing Services NIIT (USA), Inc.

© 2005 NIIT. All Rights Reserved. The Opportunities Indias education and training sector offers private institutions an estimated US$ 40 bn market, with a potential 16% five-year CAGR. More than 1,200 private engineering colleges, 300 business schools and more than 140 private medical colleges in India. Represent a US$7bn market Engineering takes the major share at US$5.85bn (or 83% of the total). After K-12, private professional colleges form the single biggest category in Indian education. Source: CLSA Research Report(APAC Markets), March 2008

© 2005 NIIT. All Rights Reserved. The Opportunities Vocational Training - includes staff training for Airlines Retail chains Hotels Financial services Basic skills such as English improvement. Global Workforce Requirement 50% of population is below the age of 25 Global shortfall of 56mn skilled workers by 2020, India will have 47 million excess at that time. But without proper education and training majority of these potential workers will not be employable. Source: CLSA Research Report(APAC Markets), March 2008

© 2005 NIIT. All Rights Reserved. The Opportunities Quality of Education McKinsey study - 10 to 25% graduates in India are employable 300,000 engineering diplomas awarded each year, only 25% competent to work 50% of technology graduates not good enough Quality of Study Material Syllabi revision is slow Little effort on research and development in Universities Libraries are not well stocked All this presents an opportunity for providing better quality content and solutions. Source: CLSA Research Report(APAC Markets), March 2008

© 2005 NIIT. All Rights Reserved. The Opportunities Skills Development Market for Higher Education in India is projected to grow almost three times in the next 10 years Market size for Skills Development in India is projected to grow almost ten times, albeit over a smaller base Current private education market in India of ~US$ 40 billion is expected to grow to ~US$ 115 billion in the next 10 years Multimedia in schools, child skills development, IT training and E- learning, preparatory and vocational studies, though relatively small segments in 2008 are forecasted to grow in the range of 25% to 60% and will together represent 1/4th of the market. Source: CLSA Research Report(APAC Markets), March 2008

© 2005 NIIT. All Rights Reserved. The Opportunities Chinese Education legislation has been updated in line with policy on internationalization New educational approaches being tried in Chinese institutions Concept of education management has been introduced Great need for management development and training has emerged in institutions and education authorities English language teaching and training programs that lead to professional qualifications have multiplied Growing demand for Continuing Professional Development, particularly on taught postgraduate courses, and distance education Source: British Council Market Intelligence

© 2005 NIIT. All Rights Reserved. The Opportunities Chinese IT Education & Training market to grow at a CAGR of 19% from 2007 to 2011 Driving Force Chinese government promoting vocational education in a big way. IT education & training is more employment-competitive for the industry than traditional academic education. Technological progress & gap of IT talents foster good opportunities for development of the market. Hampering Factor Industry development model is not yet robust. Source: CCIDC Consulting Annual Report on Chinas IT education & training market

© 2005 NIIT. All Rights Reserved. The Indicators - India All this points to the fact that the education market in India will remain robust and keep growing for at least a couple of decades. The Five-Year Plans in India are beginning to reflect increased government spend on education. Given the special focus on education in the Eleventh Five-Year Plan( ), I have no hesitation in calling this Plan a National Education Plan- Prime Minister Mr. Manmohan Singh Even Tax structure contains an extra Education cess.

© 2005 NIIT. All Rights Reserved. The Product Portfolio - India TextBooks – Indian education market uses about $2B of textbooks every year. There is a strong need for improving quality of content and coming up with new content for vocational training and skill development. Test Prep Products – Annual market is $1.7B with a Career development focus. Educational CD-ROMs – Current market size is $120M mostly in the K-12 space but growing rapidly. Vocational Training – includes staff training and improvement of skills like English Language Improvement. Current market size is $1.4B per year. Emerging Corporate & Retail e-Learning products – This is the fastest growing avenue, to grow 10 times in 5 years Multimedia inside schools is a new wave Source: CLSA Research Report(APAC Markets), March 2008

© 2005 NIIT. All Rights Reserved. The Challenges Adaptation of content needed to suit Indian & Chinese markets Strong Local players tapping the market Localization/Translation of content Prevalence of secondhand book usage

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