FRANCHISE INDIA Holdings Ltd (FIHL), Asia’s integrated franchise consulting company, and Indian Franchise Association (IFA), introduced the Education Franchising Report (EFR). Also, a round table meet was arranged to discuss the various opportunities in Education and Training Franchise, and present on the occasion were Mr. Uday Mathur, Managing Director, Euro Kids, Colonel Upendra Sachdeva, Executive Director, Indian Franchise Association, and many other dignitaries.
The primary objective of the report is to provide a snapshot of current trends in education franchising vis-à-vis expert analysis of various elements having implications on it. According to the report, India is one of the largest markets for education in the world in terms of number of students.
According to Mr. Gaurav Marya, President, Franchise India Holdings Ltd., “Franchising in India is the new way of doing business. There has never been a right time for business owners to expand their education brand through franchising. Education is a growing sector and offers potential business opportunities, where a huge part of it lies with the educational concepts which can be spread through franchising.”
The education sector offers a potential business opportunity that originates from the fact that India has the world’s largest youth population which wants to receive quality education with world class training systems.
With 17 per cent share in the organised sector education industry, India offers a huge potential for education entities looking to spread their concept in India through franchising and educate the young Indian population. With growing acceptability and proven success of education franchising in India, there has never been a better right time for business owners to expand their education brand through the franchise route than now.
There are five parts to the report:
Part one – It gives an overview of the growth of the Indian economy and the consumption patterns of the people. The overview states that education is the second largest household expenditure after food. Presently in India, not only middle and upper middle classes, but even the poor families spend 20 per cent of their disposable income on private schools and universities, rather than expose their children to 1.2 million – mostly ill-equipped and under-staffed – government schools across the country.
Private institutions are typically perceived as hallmarks of quality education, and given the demand for it, entrepreneurs of Indian education are ready with massive expansion plans which will provide thrust to the education sector to grow manifold.
Part two – It discusses the franchise business in India at large. It claims that the franchising sector in India is growing at a swift pace of 35 -38 per cent per annum. The market size of the franchising sector is estimated to be US $7.2 billion and is expected to reach US $20 billion by 2013. There are around 1,200 franchisee owners in the country, having more than 1,00,000 franchisees across the country.
Part three – It states that India is one of the largest markets for education in the world in terms of number of students. Currently, there are over 1.4 million schools in India providing education to over 200 million students. With considerable preference for private schools, the average number of students in a private school is much higher, i.e., 1,200 against 146 in public schools. The market for coaching classes forms 64 per cent of the non-formal education industry, and the tuition market in turn forms 80 per cent of the total coaching class opportunity.
Part four – It states that there are over 390 active education franchisee owners in India. It even states that informal and supplementary education has the lion’s share of education franchising. Professional and vocational skills (Aviation, Hospitality, Hotel Management, Finishing School, Retail Training, Financial Services, and Insurance, in addition to other industry training centres) are the most franchised in the education category, capturing almost 33 per cent of the total share, followed by IT training.
The report also gives a thorough account on what it takes to start franchising in the education sector, and also provides valuable techniques to business investors looking to take an education franchise. With more domestic players emerging, the education sector is likely to witness consolidation, but at the same time, increasing foreign participation will drive competition and raise standards.
Part five – It gives detailed case studies of India’s largest education companies whose growth and expansion using the franchise route has been exemplary as they talk about their franchise models as their foundations of success.
