I have great pleasure in welcoming you to the 15th Annual General
Meeting of your Company The entire world economy has gone through
the most challenging period of its time during last year. The
unprecedented financial crisis considered as worst since the Great
Depression has brutally shaken the foundations of some of the
strongest economies in the world. India has also not been untouched
by this but at an cumulative level our country has displayed
commendable resilience to it. Despite of pall of gloom on us, there
are reasons to remain optimistic andconfident
The more-than-a-billion population of India calls for a vast education
system, which has observed a high growth rate. This growth rate has
become more rapid recently with globalisation and entry of a number of
global organisations in corporate and education sector in particular.
India currently has over 400 universities and more than 20,000 colleges
with an enrolment of around 14 million students. In spite of these
numbers, India still faces a lack of adequate infrastructure in higher
education. This is in light of the fact that institutions in India can
accommodate only 7-8% of the countrys college-age students.
The recent initiatives and high-level discussion among the bureaucratic
circles and industry chambers to bring changes in the education sector
have brought hopes of a new thrust in strengthening Indias position as
a global knowledge hub. However, the Governments expenditure pattern
indicates that a rapid scaling-up of infrastructure for
highereducation will not be within reach in the near future.
Considering that the Planning Commission has identified a resource gap
of INR 2.2 trillion, it seems unlikely that the Government alone will
be able to meet optimum infrastructure requirements.
Owing to constrained investment, the sector is unable to cope with
growing market demand and global competition. Increased private
investment is thus imperative to expand infrastructure and provide
greater access to quality higher education in India.
Gone are the days when educational institutes were started with the
sole aim of knowledge dissemination. The future belongs to
educationists who believe in knowledge creation through high quality
research and development. For this the institutes will have a strong
focus on providing world-class ambience and infrastructure in which
intellectual capital will thrive and bloom. India will thus be a
knowledge hub where the public funds will be
used for teaching, coaching and learning. In this way the educational
institution will indulge in infinite value creation for the society.
India has the largest population globally in the K12 age group.
Despite a mere 37% of the K12 age group net enrolled on school rosters,
private spends on K12 schools stand at an astounding $20bn - which
makes the segment the largest within IES. The large market can be
explained by a consistent shift towards private schools -catalyzed by
the absence of quality public schools and growing awareness about
importance of quality education as also increasing ability and
willingness of Indians to pay.
Within the private K12 space, the last decade has seen a gradual shift
from private aided to private unaided (i.e. costlier) schools. This
clearly indicates that more and more parents now prefer to spend
substantially higher amounts in their quest for better quality of
education for their children. Driven by such price discovery and
growing acceptance of private schools as the medium for quality
education, the market for K12 is expected to reach $30bn by 2012.
Your Company is in process of entering agreements with trusts
possessing land for the joint development of schools. The Company has
already identified Two Sites (Alwar and Solan) for the school and is
waiting for the concerned trust to get possession of lands from
relevant authorities. The Company has entered into agreement with VET
for the joint development of Senior Secondary School along with Womens
Engineering College at Alwar. VET as part of its obligation has already
made 50% of payment towards land cost and rest 50% will be made by
August 2009. Once VET gets the possession of land it will apply to
statutory bodies for necessary approval.
During the year under review, your company has also done work on the
finishing schools and in the line of the same, amalgamation of
erstwhile VEF Information Systems Pvt ltd with IEC EDUCATION LIMITED
has approved by the Honble High Court of Delhi, which was involved in
providing the technical and other support services to the vocational
institution in North India. Due to the amalgamation with a profit
making concern having a good brand value in the market, management has
opinion that abovesaid amalgamation will be beneficial for the company
in the terms of increasing quality of the services as well as
increasing the profitability of the Company.