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NIIT
PRESENTED BY: -Man Pratap Singh
CONTENTS
Company Profile Product line Brand Extension Founders of Company S T P Major Competitor Financial status Market Share of the Company SWOT Analysis
Company Profile
NIIT Limited is an Indian company based in Gorgon, India that operates several for-profit higher education institutions. The company describes itself as a global talent development company and offers learning and knowledge solutions globally to individuals, enterprises and institutions in information technology, business process outsourcing, banking finance and insurance, executive management education, school education, communication and professional life skills, and vocational skills training.
In 2004, the IT services business of NIIT was demerged into a separately listed company NIIT Technologies. NIIT Limited now focuses on Education and Training in Schools, Vocational Training for Services Sectors, and Corporate Training. NIIT Limited owns 23.98% of NIIT Technologies.
Company Profile
NIIT was established in 1981 by Rajendra S. Pawar and Vijay K. Thadani, graduates from IIT.
NIIT Technologies acquired UK-based company ROOM Solution in 2006–2007.
In 2006, it acquired US-based learning solution provider Element K.
In 2011, it sold Element K. NIIT has two subsidiaries, NIIT SmartServe Ltd. and NIIT
GIS Ltd., which provide business process outsourcing and GIS solutions (NIIT has an affiliation with ESRI for this business), respectively. NIIT Technologies had annual revenue of INR 9,799 million as of 2009.
NIIT University is sponsored by NIIT Limited.
Product Line
Individual Learning Solutions – This focuses on providing employability skills to people in the age group of 16–25 years. IT training forms the bulk of this segment. In recent years it has launched new offerings for training in Banking, Insurance and Financial services through IFBI, NIIT Imperia Executive Management Programs through NIIT Imperia and training in skills for BPO/KPO sectors through NIIT Unique.
School Learning Solutions – this provides training and learning solutions to government and to private schools.
Corporate Learning Solutions - this division provides training services such as off the shelf learning library, custom content development, customised instructor led training and training administration services. Element K a US company, acquired by NIIT in 2006.
Brand Extension
Banking & Financial Services › Retail Banking› Wholesale Banking› Investment Management› Risk and Compliance Offerings› Business Testing Frameworks
Insurance › Channel and Customer Interface Solutions› Core Insurance Business Processes› Enabling Insurance Business Processes› Regulatory Compliance and Tax Environments› Intellectual Property-Solutions and Solution Accelerators› Value Added Services
Brand Extension
Travel Transportation and Logistics › Airlines and Travel Distribution› Airports› Surface Transport› BPO› Integrated BPO
Retail Distribution › e-Business› e-Procurement› SAP retail
Founders of Company
Mr Rajendra S Pawar is the Chairman and Co-Founder of the NIIT Group, comprising NIIT Limited- the leading Global Talent Development Corporation, and NIIT Technologies Limited- a Global IT solutions organization.
Founders of Company
Vijay K. Thadani is the Chief Executive Officer of NIIT Ltd, a leading Global Talent Development Corporation. As the co-founder of NIIT Group, he has built an organization that is recognised for its visionary role in bringing the benefits of Information Technology, both as a professional skill and as a learning tool, to the masses.
Founders of Company
Parappil Rajendran, Chief Operating Officer and Co-founder of NIIT Ltd, is part of the core team that has developed the organisation and brought it to its present position of international standing, since its inception in 1981. He is an alumnus of Indian Institute of Technology, Delhi.
Founders of Company
As Chief Executive, Learning Solutions for Enterprise, NIIT Ltd, Sapnesh Lalla is responsible for continuing the rapid growth and development of every area of NIIT's Learning Solutions for Enterprise business, throughout the geographies of North America, the United Kingdom and Europe.
Founders of Company
Shivan Bhargava heads NIIT's Skills & Careers Group as its Group President and is responsible for this business globally. Skills & Careers Group encompass NIIT's retail training businesses in IT, Banking, Finance, Insurance, Management and its vocational training initiative, NIIT Yuva Jyoti.
Founders of Company
Mr. Hemant Sethi is the President of NIIT's School Learning Group (SLG). In this role, he is responsible for managing NIIT's presence in a large manner in Government schools in India. NIIT has deployed NGuru school solutions in Government Schools across the country and trained over 10 million students.
Founders of Company
Mr. Sanjay Bahl is the President of NIIT's Skill Building Solutions (SBS) business, a new initiative launched by the company that focuses on providing Service sectors' industry specific training and placements to the unemployed youth of India.
S T P
The target population for the training programs in this business can be categorized into three broad categories. Largely, the target group will be in the 16-35 age segments. Within this, the 15-19 age segment consists of 110-120 million people while the 20-35 age group accounts for over 325 million [25%] of the country’s population. According to “India’s Demographic Dilemma” by BCG-CII, 70% of the population entering the workforce consists of illiterates and school-drop outs. Out of the 89 million people joining the workforce over the next 5 years, 65% will be either school drop outs or illiterates.
Major Competitors
Name Last Price Market Cap.(Rs. cr.)
SalesTurnover
Net Profit Total Assets
Tree House 505.90 1,910.55 157.64 43.92 483.50
Zee Learn 35.60 1,138.01 119.18 -1.33 309.92
NIIT 53.55 884.49 520.19 -7.78 528.21
MT Educare 141.70 564.05 182.79 21.99 115.87
Educomp Sol 30.10 368.63 282.29 -312.23 3,604.67
Aptech 83.45 332.91 107.38 23.39 267.64
Career Point 127.25 230.74 54.14 4.21 334.49
CORE Education 11.70 133.95 627.53 -502.13 2,330.59
Everonn Edu 34.70 83.46 43.23 -120.82 1,018.33
Prithvi Softech 22.70 12.48 7.82 2.25 14.54
Software Tech 2.25 3.34 0.01 -1.26 24.10
Financial Status of last 2 yearsParticulars NIIT Limited-Group
(Consolidated)NIIT Limited(Standalone)
2013 -14 2012-13 2013-14 2012-13
Net Sales 9510 9608 5202 6415
Other Income 102 94 618 666
Total Income 9612 9702 8520 7081
Total Expenditure 9164 9344 5178 6219
Profit before depreciation and Taxes
448 358 642 861
Depreciation and Amortisation
779 864 680 782
Exceptional Items (Net) 67 (174) 19 2
Net tax provision 93 (433) 59 69
Net profit before shareof Associates’ Profit &Minority Interest
(357) (247) (78) 12
Share of Associates’ Profitand Minority Interest
535 509 - -
Net Profit 178 263 (78) 12
Basic EPS (Rs.) 1.08 1.59 (0.47) 0.07
Diluted EPS (Rs.) 1.08 1.59 (0.47) 0.07
Market Share of the Company
MARKET CAP (Rs Cr)
882.01 *EPS (TTM) -
*P/E - *P/C 14.05
*BOOK VALUE (Rs)
25.40 *PRICE/BOOK 2.10
DIV (%) 80.00% DIV YIELD.(%) 3.00%
Market Lot 1 FACE VALUE (Rs)
2.00
INDUSTRY P/E 12.50 DELIVERABLES (%)
49.49 new
SWOT Analysis
Strengths Effective communication: Vishwanathan Anand as Brand Ambassador, well known Bhavishya Jyoti scholarships and high brand value for the flagship GNIIT program
High R&D: Training solutions in latest and emerging technologies
Strong Brand Name:It is the most well IT training provider, called"McDonald's of the training sector"
Strong management team: Founded and actively managed by Rajendra S. Pawar and V. K. Thadani, who were classmates at IIT Delhi
Good financial position: Profitable almost since inception Global presence: NIIT has a presence in over two dozen
countries, such as China and South Africa
Opportunities Acquisitions: Can acquire local players in the IT training segment
Innovation: NIIT is already innovating, with the launch of NIIT Cloud Campus, NIIT University and NIIT Uniqua, but more can be done
Growing need of IT education: 90% of fresh engineering graduates are unemployable without training and the IT industry is one of the few which continues to post YOY growth
New Markets: NIIT can expand its reach in North India where it is still underrepresented as compared to the South and also expand to other emerging markets such as South East Asia and Africa
Weaknesses Varying quality: Different centres have different levels of quality, with many facing problems such as Low skilled faculty, lack of classroom space and insufficient infrastructure
Varying brand awareness: NIIT's brand recognition is limited in the Northern and Eastern parts of the country as compared to the more developed South and West
Cost Structure: Despite increasing sales and healthy growth, NIIT's profitability remains low
Threats
The main threat is Intense Competition:In the Soft Skills Segment: Veta
In the Information Technology Training Segment: Aptech, LCC (Lakhotia Computer Centre)
In the School Software Segment: Educomp Companies' In House IT Training
Another threat is a Bad Econom A slowdown in economic growth may reduce the need for
IT and hence reduce demand for IT training, NIIT's mainstay The other threat is Volatile Costs
Rising costs may cause closure of several NIIT franchisees