Educomp Solutions

FY 2009 was a landmark year for Educomp. It was a year in which our
 business model matured significantly. We were able to execute the first
 leg of our long term strategic plan to make a significant difference in
 the emerging education economy in India as well as strengthen our
 global presence.
 
 From an education ancillary to a company that has a deep engagement
 with the entire education supply chain from preschool to higher
 education has been an enriching journey. We have seen the education
 business in india evolve in its various aspects. Today we stand at the
 threshold of a great leap into the future as many of the regulatory
 hurdles that plagued the development of this sector will vanish over
 the next 3-5 years. The coming years will be our most exciting years.
 
 We now have the building blocks of our future growth in place. The
 underserved education economy in India gives us a unique opportunity to
 fulfill the basic education needs for millions of young people -
 nothing could be more satisfying and economically rewarding than that.
 For many years education was a closed economy in India - private
 capital and enterprise were not allowed to participate fully, but
 things are changing. We expect rapid regulatory change which will
 welcome private participation in every segment of the market. This will
 mean new opportunities for Educomp of a size and scale we have not seen
 before.
 
 Putting inspirational leadership to work is one of the many ways in
 which we will be able to tap these new opportunities. Educomp is a
 place where we believe we have a unique working environment in which
 entrepreneurship can thrive and our team of business leaders is sharply
 focused on sustainable growth through innovation in business models and
 providing a clear value proposition to our customers. We will continue
 to strengthen this DNA within Educomp.  Recently we were judged in
 Education and Training space, the No. 1 place to work in India by the
 Great places to work6 Institute.
 
 A companys business strategy is an expression of its vision. We have
 always felt close to the middle class in India and have endeavoured to
 service their aspirations in the most meaningful manner. Hence our
 foray now is to cater to infrastructural needs, provide content/IP to
 improve the learning outcome and to address the needs of students at
 the bottom of the pyramid. These schools in semi-urban areas deploy a
 new curriculum, new technology and new construction techniques that
 bring down the effective cost of education delivery without
 compromising on the quality. Our new Joint Venture with Pearson will
 tread new ground in creating courses that will accelerate employment
 for young adults and prepare them for the new service economy in India.
 Each of these ventures will need new delivery models and new business
 models and research into effective content.  Thus innovation and R&D
 will be one of the critical success factors for our growth.
 
 The Core values of Educomp help us navigate through the rapidly
 evolving business environment in India.  Innovation, leadership,
 entrepreneurship and ethics are the pillars on which we are building
 our business. We filter each business decision with the filter of
 margins, sustainable competitive advantage, growth and finally ask
 ourselves the question why us?, while our business is focused on
 delivering great products and services to our customers and creating
 wealth for our shareholders we must also be mindful of our contribution
 to society and use our finite capital and time to contribute to
 advancing the wealth of knowledge in society and making the lives of
 young people more fulfilling. Its our way of becoming a great company
 which makes a lasting contribution to the world.
 
 Improving human capital is continuous journey and I am thankful to our
 band of leaders and team members in Educomp that they are truly living
 the mission and exhibiting evangelistic zeal in reaching out to schools
 with our message. I am also thankful to our investors and bankers who
 believe in our ability to execute and constantly reinvent ourselves and
 have supported us with their trust and their capital and I am thankful
 to our customers who have reposed faith in the Educomp brand, knowing
 that we will exceed their expectations.
 
 Being in an industry that is so rapidly transforming itself is exciting
 and also full of challenges, as we navigate our way forward we hope we
 will receive your support and encouragement as before.
 
 Sincerely,
 Shantanu Prakash
 Chairman & Managing Director