competitor's analysis of il&fs skills

8/12/2019 Competitor's Analysis of IL&FS Skills

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COMPETITORS ANALYSIS FOR IL&FS SKILLS IN SKILL

DEVELOPEMENT SECTOR

A SUMMER PROJECT STUDY SUBMITTED IN PARTIALFULFILLMENT FOR THE REQUIREMENT OF THE TWO YEAR POST

GRADUATE DIPLOMA IN MANAGEMENT (2013-15)

BY

Name- Nitin Singhal

Roll No- 127

LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT,DELHI

JUNE, 2014


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ACKNOWLEDGEMENT

The conclusion of any project is not complete without thanking the people behind the venture and this project is no exception. Racing against time as well as fast approaching deadlines, the fact that the project

was successfully completed in time would not have been possible without the help and support of many people. Their constant guidance and encouragement coupled with the efforts and their commitments actedas the cornerstones for the successful completion of the project. It gives me immense pleasure toacknowledge the persons whose help gave me the required confidence, enthusiasm, and perseverance inorder to successfully culminate this project.

I express my sincerest gratitude to Mr. Vivek Pandit (Vice President-Operations and MarketingIL&FS Skills ) and Ms. Deepti Singh (Manager-Operations IL&FS Skills) for providing invaluableguidance, suggestions, as well as constant encouragement as my mentor for this project.

I also express my sincerest thanks to my faculty mentor, Ms. SMITA SHARMA (Prof. LBSIM) for herguidance and encouragement during the various stages of the project. Lastly, I would like to thankIL&FS Skills, for giving me a chance to pursue an internship in the domain of my choice and for givingme the vital support and freedom to carry out my project.

Nitin SinghalPGDM General (2013-15)LBSIM, New Delhi


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CERTIFICATE

It is certified that the Project Report entitled Competitors Analysis of IL& FS Skills in Skilldevelopment sector submitted by Mr. Nitin Singhal, PGDM, Lal Bahadur Shastri Institute of

Management, New Delhi, has been successfully completed under my guidance as a part of his SummerInternship Project at IL&FS Skill development Corporation. All the report and data submission has beendone in the respective departments.

We wish him all the best for his future

Signature of MentorDate:Mr. Vivek PanditVice President- Operations and MarketingIL&FS Education and Technology services

NTBCL Building, Noida flyway Noida Sector 15A, Noida, U.P.


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TABLE OF CONTENTS

Chapter Title Page Number1 Introduction 1

1.1 Group Companies of IL&FS 5

1.2 Introduction to IETS 13

1.3 Overview of ISDC 20

1.4 About STAR Scheme 22

2 Primary and Secondary Research 23

2.1 Research Objective- Main and Sub Objective 23

2.2 Sub Objective-1 24



3 Recommendations 50

4 References 51


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LIST OF TABLES

S.No Description Page Number

Table 1.1 Shareholding Pattern of IL&FS 3

Table 1.2 Financial Results of IL&FS 4

Table 1.3 IL&FS ETS Business Practice 14 &15

Table 1.4 Large NSDC Training partner 24

Table 1.5 Medium-Small NSDC Training partner 25

Table 1.6 Regional NSDC Training Partner 26

LIST OF FIGURES

S.No Description Page Number

Figure 1.1 About IL&FS 2

Figure 1.2 Corporate Engagement for CSR commitments 16

Figure 1.3 Foot Prints of IETS 19

Figure 1.4 Methodology of IL&FS Skills 21

Figure 1.5 Comparison- Number of centers 46

Figure 1.6 Comparison- Number of Students trained 47

Figure 1.7 Comparison- Students per centre 47

Figure 1.8 Comparison- Placement Ratio 48


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CHAPTER-1INTRODUCTION

About IL&FS IL&FS and its subsidiary companies Introduction to IL&FS education and Technology services Overview of IL&FS skill Development Corporation About STAR scheme


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1. About IL&FS

Infrastructure Leasing & Financial Services Limited (IL&FS) is one of India's leading infrastructure developmentand finance companies. IL&FS was promoted by the Central Bank of India (CBI), Housing Development FinanceCorporation Limited (HDFC) and Unit Trust of India (UTI). Over the years, IL&FS has broad-based itsshareholding and inducted Institutional shareholders including State Bank of India, Life Insurance Corporation ofIndia, ORIX Corporation - Japan and Abu Dhabi Investment authority

IL&FS has a distinct mandate - catalyzing the development of infrastructure in the country. The organization hasfocused on the commercialization and development of infrastructure projects and creation of value added financialservices. From concept to execution, IL&FS houses the expertise to provide the complete array of servicesnecessary for successful project completion: visioning, documentation, development, finance, management,technology and execution.

Infrastructure Leasing & Financial Services Ltd (IL&FS) was incorporated in 1987 with the twin businessmandates of commercializing infrastructure projects and setting up value added financial services. The initial jointventure format included Central Bank of India, Unit Trust of India and The Housing Development FinanceCorporation. IL&FS commenced operations in 1988. Over time additional institutional shareholders came on

board to facilitate IL&FS with the capital base essential for delivery on the business mandates.

The organization has quickly grown to be recognized as a professional institution with a skilled cadre of personneland distinctive businesses. The IL&FS Group has developed a pool of institutionalized resources and functionalexpertise in areas such as project management, project engineering, finance, risk management and environmental-social management, which are strategic to the Infrastructure development activity.

(Figure- 1.1)


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I. Public Private Partnership-

IL&FS is widely recognized as the pioneer of Public Private Partnership in India. Today IL&FS has evolved intoa prominent institution that harnesses the power of Public Private Partnership, to develop and financeinfrastructure projects across a variety of sectors. Almost uniquely, IL&FS has succeeded in turning infrastructurecapacity creation into a commercially viable proposition.

Our infrastructure projects are developed in conjunction with Governments, financing agencies, private sector partners and communities. This unique Public Private Partnership helps to leverage limited public funds, reducelife cycle cost, develop and execute more projects on a sustainable basis.

IL&FS is committed to providing projects with financial investment, managerial expertise and inputs that ensureefficiency in service delivery. We offer a full range of financial, project development and management services.These services include investment banking, project financing, project development, management andimplementation, asset management, merchant banking, corporate advisory services and back office services.

Successful infrastructure projects require the close involvement of an array of stakeholders. IL&FS has sponsoredvarious projects in the infrastructure space in association with a range of partners that encompass both State

Governments as well as Private Sector Partners, including communities. IL&FS identifies need-driven projects(e.g. roads, bridges, power, ports, water supply, area development etc.) which can be commercially viable. IL&FSthen uses innovative structural / financial techniques to enhance project viability and has already successfully

pioneered several such projects.Over the years, building on experience gained in the infrastructure space, IL&FShas widened its business scope from mere development of infrastructure projects to encompass a full range ofrelated activities.

Shareholding Pattern- IL&FS is a Finance Company, promoted by the Central Bank of India (CBI), HousingDevelopment Finance Corporation Limited (HDFC) and Unit Trust of India (UTI). Over the years, IL&FS has

broad-based its shareholding and inducted Institutional shareholders including Life Insurance Corporation ofIndia, State Bank of India, ORIX Corporation Japan, and Abu Dhabi Investment Authority.

Sr. No Shareholders Name Percentage1 Life Insurance Corporation of India 25.342 ORIX Corporation, Japan 23.043 Abu Dhabi Investment Authority 11.094 Housing Development Finance Corporation Limited 9.815 Central Bank of India 8.346 State Bank of India 6.987 UTI-Unit Linked Insurance Plan UTI Asset

Management Co Pvt Ltd0.80

8 India Discovery Fund Limited 0.689 Bay Capital Investment Managers Private Limited -

A/c PMS Client Account0.27

10 IL&FS Employees' Welfare Trust & Others 13.65Total 100.00

(Table- 1.1)


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Financial Results

The summarised, audited financial results of the Company for three years are provided below:

(Rs MN)

Year Ended March 31 2011 2012 2013

Total Income 11,495.28 10,874.55 13,777.74

Gross Profit 5,914.28 3,916.05 5,186.13

Operating Income 5,795.48 3,792.92 5,061.76

Profit Before Tax 2,683.30 4,296.05 4,422.91

Equity Capital 1,141.07 1,154.70 1,168.33

Net Worth 21,672.16 24,535.06 27,433.63

Total Assets 81,626.48 94,218.41 104,836.72

Dividend (%) 65 75 80

(Table 1.2)


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1.1 Group Companies of IL&FS

1) IL&FS Infrastructure Development Corporation Limited

IL&FS Infrastructure Development Corporation Limited (IIDC) is the advisory and project development wing ofIL&FS. It provides integrated and comprehensive professional services towards development of infrastructure

projects and related components from project conceptualization to project implementation, with a focus on sectorslike:

Municipal/ Urban Infrastructure covering Water Supply and Sanitation, Transportation (Bus Terminals,Parking Areas), Commercial District Development, Environmental and Social Assessments, FinancialStrengthening and Municipal Bonds

Transportation: Roads and Bridges, Airports, Ports Industrial Parks and Area Development Projects Tourism Power E-Governance and ITES Health Agriculture-related infrastructure such as Integrated Modern Markets Capacity Building & Training

It is a high-powered cell delivering on projects right across the above-mentioned spectrum. Some of thesignificant contributions have been Delhi-Noida Toll Bridge and Visakhapatnam Industrial Water SupplyProgram

2) IL&FS Transportation Networks Limited

In November 2000, IL&FS incorporated IL&FS Transportation Networks Limited (ITNL) in order to pursuevarious new project initiatives in the area of Surface Transport. IL&FS has domiciled its transport sectorinvestments and resources in this company and now represents itself in this sector through ITNL. The focus ofITNL is to develop and build a pan-India Surface Transport business. ITNL has accomplished this by leveragingvarious investment opportunities and also acquiring and managing projects

ITNL has been involved in the development and implementation of projects related to Highways, Flyovers,Bridges and Roads across the country. These projects, both at cash generation stage and/or at construction stage,have been benchmarked to meet international standards in terms of technology and facilities. ITNL has over theyears acquired a position of leadership in the roads sector and has expanded its scope of activities to Ports,Railways and other Urban Transport Sectors.

3) IL&FS Education and Technology Services Limited

IL&FS Education and Technology Services (IL&FS ETS), also known as IETS, is the education infrastructuredevelopment initiative of IL&FS. The objective of IETS is to make learning an experience-led, interactive,


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insight-based and stimulating journey. Our wide range of products for children and adults is carefully crafted to provide learners with a rich, multi-sensorial experience in learning.

These products, many of which are widely recognized as the SCHOOLNET range of teaching-learning tools,include a scientific and creative mix of innovative hardware, technology-based instructional materials, workshops,teacher training, printed content and material that incorporates video, audio and multimedia technology.

4) IL&FS Environmental Infrastructure & Services Limited

IL&FS Environmental Infrastructure & Services Ltd. (IEISL), promoted by IL&FS, focuses on environmentalsector initiatives. IEISL provides consulting services to project developers, belonging to public and private sectorsas well as financial institutions, in India and abroad.

IEISL operates on a proactive philosophy that ecological thinking is critical to bring in both sustainability andcompetitiveness in any economic development. Complementing the Companys areas of expertise is its distinctiv eability to develop and customize geo-spatial information.

IEISL promotes environmental initiatives in the framework of Public Private Partnership. Here IEISL operates asProgramme Manager to conceive, steer and manage projects that have a complex interface between government,

business and communities.

Programmes such as Ecocity and Environmental Information Centre, with the Ministry of Environment andForests, Government of India or Greenhouse Gas Reduction in Textile Cluster at Tirupur, with US Agency forInternational Development are illustrations of projects where IEISL operates as a Programme Manager

5) IL&FS Engineering and Construction Company Limited

IL&FS Engineering and Construction Company Limited (IL&FS Engineering Services) is one of the leadingMulti-National Infrastructure Development, Construction and Project Management companies with nearly threedecades of rich and varied experience in executing landmark projects. The Company has demonstrated itscapabilities in sectors such as Roads/Expressways/Highways, Railways & Metros, Buildings and IndustrialStructures, Irrigation Canals, Tunnels and Dams, Thermal and Hydel Power Projects, Ports, and Oil & Gas onEPC/Item Rate basis.

The Companys area of operations and interests ar e spread across the following segments:

Transportation

Roads, Highways & Expressways Urban Transportation, Railways & Metros Ports & Airports

Buildings & Structures

Residential Buildings Commercial Buildings Industrial Structures


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Institutional Buildings

Water

Dams, Barrages & Canals Tunnels Water Treatment, Storage & Transportation

Energy

Oil and Gas (EPC for Process Plants, Tank age & Terminals, Pipelines) Hydel Power Thermal Power (Civil Works) Power Transmission & Distribution

IL&FS Engineering Services follows a unique creative process approach that specifically addresses the technicaland financial issues within the project design and implementation cycle ensuring integrated service deliverywithin a given schedule and budget target.

With a fleet of state-of-the-art equipments and supported by a Central Workshop for maintenance of theequipment fleet and mobile workshops for earth moving equipments, the Company is strategically positioned toexecute projects with least hindrances arising out of terrains and location

IL&FS Engineering Services has been awarded IMS Certificates (ISO 9001:2008 Quality Management System,ISO 14001:2004 Environmental Management System, and OHSAS 18001:2007 Occupational, Health and SafetyManagement System) by Germany based TUV Nord and is committed to the highest standards of quality, safety,health, and environment.

The Company bagged the Fastest Growing Construction Company in India large size category award in 2008for the third consecutive year that was instituted by Construction World and National Institute of ConstructionManagement & Research (NICMAR). It had bagged these three awards in 2006 for small size category, in 2007for medium size category, and in 2008 for large size category.

6) IL&FS Maritime Infrastructure Company Limited

To tap the huge potential in the Maritime sector while replicating the successful framework of Infrastructure

project development & execution in Maritime sector and to capitalize on the maritime & logistics sectoropportunities, IL&FS incorporated IL&FS Maritime Infrastructure Company Ltd. (IMICL) in 2006 with anobjective "To build a valuable maritime business platform built on a diversified asset portfolio, services andstrategic alliances leveraging on existing group strengths".

IMICLs target investment portfolio includes:

Maritime Infrastructure: Development of green field /Brownfield port & terminal projects, and shipyards/ship repairs


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Ancillary Business: Port based SEZs, Free Trade Warehousing Zones, Oil tank farms, Logistics Hubs/Inland Terminals/Container Freight Stations

Services: Coastal Shipping, Marine Transport, Project Cargo

Projects in the above sub-sectors are executed on a Public Private Partnership (PPP) basis, through bidding or onthe basis of bilateral negotiation with Central /State Governments.

Core Competencies in the Maritime Sector:

Project identification & conceptualization Project development & management Project structuring Project implementation

IMICL identifies, evaluates and selects maritime and related sector projects based on a holistic approach ofsustainable development including hinterland development, connectivity, logistics infrastructureIMICL is currently developing Greenfield Ports (Multi-User & Captive), Fertilizer & Multipurpose Terminal,Port-based Tank Terminal, Shipyard and a Multi-Product (Marine & Energy) Special Economic ZoneIn addition to the foregoing, IMICL provides project development and advisory services to a number of MaritimeAuthorities across the country.

7) IL&FS Water Limited

IL&FS Water Limited (IWL) is a wholly owned subsidiary of Infrastructure Leasing & Financial Services

Limited (IL&FS) focused on the commercialization and development of infrastructure projects in the water andwaste water sector providing end to end solutions in developing and implementing projects, from concept toexecution.

IWL houses the expertise to provide the complete array of services necessary for successful project completion inthe following sectors:

Bulk water supply Urban Drinking Water Distribution Industrial Water Reuse and Effluent Treatment Urban Sewage Management

Desalination

Projects in the above sectors can be executed on Build Own Operate Transfer Basis (BOOT) through jointdevelopment on a Public Private Partnership (PPP) basis, or on the basis of management contracts

The IL&FS Water business group consists of the following entities:

Tamilnadu Water Investment Company (TWIC) Joint venture of IL&FS and Government of Tamilnadu (GoTN)to develop projects in the water sector in Tamilnadu.


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New Tirupur Area Development Corporation Limited (NTADCL) A Special Purpose Vehicle (SPV) formed todevelop the Tirupur Water Supply and Sewerage Project.

IL&FS Paradip Refinery Water Limited A Special Purpose Vehicle (SPV) formed to develop the ParadipRefinery Water Supply Project for Indian Oil Corporation Limited.

8) IL&FS Energy Development Company Limited

IL&FS started its energy business in 2008 through its subsidiary IL&FS Energy Development Company Limited(IEDCL). The objective was to develop, own and operate power generation and power transmission assets inIndia and abroad. In a span of five years IEDCL has successfully secured a number of power generation projectshaving diverse fuel linkages, such as gas, coal, hydro and biogases

IEDCL has built considerable in-house expertise in various facets of project development and management such

as technical, legal, regulatory, environment and financial

The advisory services in project development and implementation are provided to State Governments, largePublic Sector companies as well as Private Sector clients. This has helped in establishing brand equity, providing

priority access to state/central government and regulatory bodies and playing a very active role in formulation ofvarious power sector policies

The brief details of the generation capacities in various stages are as follows:

Presently around 1000 MW power generation capacities of IEDCL are in operation, 3,000 MW capacities are invarious phases of implementation and around 10,000 MW capacities are in project development phase. On thetransmission side, around 250 Kms 400 KV D/C power transmission line is in operation, 410 Kms is under

implementation and 145 Kms connecting Nepal and India is in the development phase. IEDCL expects to achievea gross generation capacity of 14,000 MW by FY2019.

9) IL&FS Securities Services Limited

IL&FS Securities Services Ltd., (ISSL) is a 100% subsidiary of IL&FS. ISSL evolved as a captive service provider for IL&FS for its activities in 1995 and functioned as a division of IL&FS. It harnessed the operationssynergies through consolidation of all back office operations of IL&FS under one roof.

Back office process knowledge accumulation led to the development of independent service lines, which wereoffered to external clients on a commercial basis. In addition to these licenses for offering custodial services,depository services and clearing services were also offered to retail and corporate clients.

The volume achieved critical mass in 2006, enabling hiving off of the operations into a separate entity, IL&FSSecurities Services Ltd., (ISSL). ISSL was incorporated in July 2006 as a 100% Subsidiary of IL&FS and has

been able to build requisite capabilities for undertaking all the services offered by it. It holds leadership positionsin F&O Clearing and new products such as Broking Back Office, Bro kers Broker and ESOP Funding. In terms ofa centralized operations center, it has over 35,000 square feet of captive space for housing the back office andservice units for all the business operations. This also includes around 10000 sq ft. of industry standard storage


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space for document safe custody. Fall back infrastructure arrangement in the form of captive space availablewithin the IL&FS Group to accommodate further growth. Requisite Disaster Recover infrastructure is in the

process of being created and data replication for critical operations like Depository and Clearing operationsalready implemented.

ISSL has developed strong in-house capabilities to develop systems for all its Activities. It has a 38-member team

well qualified and experienced, both in software and in capital markets, to undertake this. In addition todeveloping systems, the in house team is also able to provide round the clock 24/7 support. All steps are beingimplemented for the disaster recovery site, and a mini server farm at Bangalore, proposed to be used for this

purpose.

10) IL&FS Investment Managers Limited

IL&FS Investment Managers Limited (IIML) is one of India's largest domestic private equity fund management

companies with over US$ 3.2 billion under management on behalf of leading Indian and International Institutions.IIML has been an active investor in the Indian market since 1997 with aggregate investment experience spanningover a decade and access across industry sectors. IIML's experience covers the entire Private Equity lifecycle right from raising funds, making and planning investments to restructuring and exits. IIML manages a number ofFunds, which are invested across a variety of sectors including Infrastructure, Technology, Media, Retail,Consumer Services, Manufacturing and Real Estate. The IIML business model and investment processes have

been structured in line with global standards and it has an established financial track record.

IIML's principal objective is to deliver 'market superior' returns. IIML's investment thesis and planned approach isessentially built upon the following key elements:

Invest in demonstrated and sustainable competitive advantage

Back management teams with a track record or those that exhibit abilities to successfully lead and builddominant companies Structuring to minimize risk and maximize returns Continuously evaluate and re-examine exit strategies Leverage proprietary deal flow

IIML is an active investor, seeking significant ownership positions and involvement. IIML works with themanagement of portfolio companies to supplement operational and strategic planning.

IIML has developed an extensive proprietary network that provides a substantial source of deal flow and informedinsights into the Indian investment environment.

11) IL&FS Trust Company Limited

IL&FS Trust Company Limited (ITCL), a subsidiary of IL&FS, is one of the leading fiduciary service providersin India

ITCL provides various trusteeship and allied services as an Independent Fiduciary Service Provider for:


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debt issuances and loans securitized paper mutual funds, private equity, venture capital funds social trusts, not for profit trusts and other special purpose vehicles

Our personalized and multidisciplinary approach encourages our Customers to choose the structure best suited totheir requirements.

Delivery Bandwidth

ITCL delivers services in the value chain beginning with the appraisal of loans to disbursement till full closure ofthe loan, NPA recoveries, safeguarding and others

ITCL's strength is backed by

its empowered team of finance and legal professionals, its ability to thoroughly understand financial markets structured instruments, project finance,

infrastructure finance, technology driven systems and processes to best take care of systemic requirements of the transaction ISO 9001:2000 certified processes a strategic arrangement with Bank of New York (BNY) to provide fiduciary and trust services

BNY, rank 1 trustee for all U.S. and International public and private debt, is one of the world's largest trustbanks, servicing over 90,000 issues, representing over $1 trillion in outstanding debt

Suite of Products

At ITCL, we provide tailor-made fiduciary services that meet the evolving demands of the financial servicessector. We believe that a sound transaction structure leads to identification and management of risks in the

process of delivery. The ability to identify mitigation measures between borrowers and lenders ensures ease ofresolution. The transaction documentation executed by us incorporates these principles. Our well-structuredmonitoring framework reinforces them through review of fiduciary roles and responsibilities

Debenture / Bond TrusteeshipTrusteeship for vanilla / structured debt offerings, be it private placement or public issuances for corporates,

public sector enterprises and institutions

Security TrusteeHolding Borrowers assets including interest in underlying security on behalf of multiple Lenders and includesother services in the value chain supplementing complex structures of the transactions, such as, Facility Agent,Escrow Agent, Trust and Retention Account Agent, Monitoring Agent, Inter-creditor Agent etc

Trusteeship and Investor Representative for Securitised PaperHost of services are provided starting from setting up of the Trust, ensuring receipt of cash flows, servicing ofPTCs, compliance with rating conditions, Investor servicing payout computations and timely deliveries,complying with waterfall mechanisms, back-office support, pool performance reviews etc

Fiduciary Services for FundsTrusteeship for Private Equity and Venture Capital Funds, Mutual Funds, Employee Welfare Trusts,comprehensive back office and compliance activities for the same


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Asset PreserveAn alternate approach to complete succession / wealth planning for High Net Worth Individuals through acombination of trust structures, wills and consequent executorships arrangements

Debt Recovery and ReceivershipFacilitating Banks, FIs and Corporations recover their dues / enforce their securities, expeditiously, through theDebt Recovery Tribunal, SARFAESI or otherwise. ITCL is the sole empanelled DRT Receiver in Mumbai

e-Access StorageProviding a secure document management solution with an anywhere anytime electronic access facility forcritical client documents.

12) IL&FS Financial Services Limited

IL&FS Financial Services Ltd (IFIN) is a 100% subsidiary of IL&FS, with a combination of Investment Bankingskill sets comprising of Debt Syndication, Corporate advisory and lending capabilities. The mandate to IFIN is to

provide value added Investment banking services to a select group of customers

The Financial Services business comprises four principal components:

Investment banking business : is the fundamental driver of corporate relationships and is an amalgam of highyielding debt portfolio

Project Debt syndication business : is the principal wholesale debt distribution platform which has beeninstrumental in financial closure of large projects across a number of sectors.

Corporate Advisory services business : mobilizes private equity and provides other advisory services to customers

Project Finance Advisory : works closely with the other business to develop and execute mandates ininfrastructure sector and support new initiatives of the IL&FS Group.

There is a high level of synergistic value of all these businesses inter-se, and for the Group in the currentenvironment, which has multiple opportunities for other business verticals of the IL&FS Group in theinfrastructure space .


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1.2 Introduction to IL&FS Education and Technology Services (IETS)

Started in 1997 as Schoolnet, IL&FS Education and Technology Services Limited (IL&FS Education) is theSocial Infrastructure arm of IL&FS group with its specialised services in Education, Skills Development,Health and Cluster Development. IL&FS Education works with a number of clients Central and StateGovernments and several PSUs, Corporate and other private sector companies to deliver a holisticdevelopment model in a Public Private Partnership (PPP) mode. Over the years, IL&FS Education has evolve dthe expertise to provide the full array of services from Concept to Commissioning for social infrastructure

programs with a strong sense of commercial sustainability.

Presence of IL&FS Education: IL&FS Education with its registered office at Mumbai and Headquarters in NewDelhi is present in 540 districts (out of 641 districts) in 25 states. Through our regional offices, skill traininginstitutes and centres, schools, health centre we engage in many types of social infrastructure projects. Ourgeographical presence is complimented by our network of 1000 plus partners, making us one of the largest socialinfrastructure companies in India.

Structure of IL&FS Education: IL&FS Education operates in a matrix structure with several practices andsupport groups working with our regional offices in 25 states. With Public, Private, Partnership (PPP) as the basefor all initiatives, the group is also supported by two specialised subsidiaries - IL&FS Skill DevelopmentCorporation (IL&FS Skills) and IL&FS Cluster Development Initiative (ICDI).

We are committed to enhancing the quality of minds across the learning spectrum by providing integratedsolutions blended with Technology which Educate and provide skills for employment thus empowering variouslearner segments.

Our Work

Leveraging our corporate strength in managing large scale programmes in a Public Private Partnership (PPP)mode, we work in three key focus areas of Education, Skill Development and Cluster Development. Through ourwork we are not only stimulating the education and skilling market but also working with small and mediumenterprises to create jobs at the local level. We follow a holistic development approach to ensure that the impactour work creates is long term and sustainable. The vastness of our project experience allows us to offer servicesacross the community development spectrum ranging from development of physical to human infrastructure.

Think of the education-to-employment system as a highway, where three driver educators, employers, and young people all want to get to the same destination

There are three critical intersections:a) When young people enrol in post secondary education, b) When they build skills, andc) When they seek work

As IL&FS Education we are working with several stakeholders especially the Government of India (GOI) in building the Education to Employment highway, which allows us to move people from one intersection to theother. Each of our business practice has evolved capacities in form of products and services that help us achievethis goal.


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THEME IL&FS BUSINESS PRACTICE EDUCATION 1. Education Solutions Group:

IL&FS Education offers comprehensive learning solutions for a widespectrum of audiences ranging from children in schools and informal setting,to teachers, adults and corporate.

Main areas of intervention: School Infrastructure development ICT @ Schools Multimedia Content Technology Enabled learning through K Yan Teacher Training Policy advocacy with government Skills Schools

We impact approx 1 million students, teachers and parents through ourcomprehensive education services, primarily targeting the school system. The

services include technology enabled solutions, multi-media content, teachertraining, e-learning solutions etc. We are present in over 25,000 schools inIndia.

For more information visit: www.ilfseducation.com

EMPLOYABILITY 2. Skill Development Initiative:

IL&FS Skills has been at the helm in strengthening community from allsections of the society including women, minority youth, and unprivilegedrural youth. We work with both government and private partners fordelivering large scale skills mandates. IL&FS Skills follows a sectoralapproach towards skilling, by linking training to employment

Main areas of intervention: Placement Linked Skills Development Skills Development Centres Training of Trainers Up-skilling for in-service staff

We have skill training programmes across 15 sectors with more than 45industry trades running in 350 IL&FS Skill Schools (spokes) and 35IL&FS Institute of Skills (Hub) across India.

In pursuance of the Prime Ministers National Mission to skill 500 million people by 2022, IL&FS EDUCATION has also formed a Joint Venture (JV)company with National Skill Development Corporation (NSDC) by thename IL&FS Skills Development Corporation (ISDC) . The objective of
http://www.ilfseducation.com/http://www.ilfseducation.com/http://www.ilfseducation.com/http://www.k-class.in/http://www.k-yan.com/http://www.ilfseducation.com/


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5. Corporate Engagement for CSR commitments:IL&FS Education has been one of the early players when it comes to working with companies for delivering theirCorporate Social Responsibility programs. Given our experience in several segments within Education sector, weoffer our CSR partners a holistic approach towards CSR. Basing our work and interventions on the principles ofCreating Shared Value (CSV) we are currently working several companies to implement a wide variety programs.

As a group, IL&FS EDUCATION works with its CSR partners to deliver programs focused on overallcommunity development. The interventions are mainly in the broad areas of:

Area Development program Cluster Development Social Infrastructure Micro Finance Linkages Local Market linkages Livelihood Promotion Policy Advisory

Education School Infrastructure development ICT @ Schools Multimedia Content Technology Enabled learning

through K Yan Teacher Training Policy advocacy with government Skills Schools

Health Tele-medicine initiatives for rural

areas Capacity building of community

health workers Health Smart Cards HIV/AIDS awareness TB eradication programs

Skills Development Placement Linked Skills

Development Skills Development

Centres Training of Trainers Sector specific skills

training programs

Figure-1.2

6. International Collaboration:

Over the years, IL&FS Education has continually invested in rendering advisory solutions to address the needs ofUN organisations and international governments enabling project owners and related stakeholders achieve successin their projects, by integrating industry experience, risk-based approach and technical and financialcompetencies, along with a skilled team of professionals. We offer concept to commissioning services with clearvision, careful planning, and meticulous execution.


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(A) IL&FS Education has partnered with UNICEF for Life Skills Programme for school girls. Under thisinitiative schools girls are given knowledge on health, physical education and life skills.

(B) IL&FS Education has partnered with ILO to impart Life Skills programme to Master Trainers of NCLP(National Child Labour Project) schools. Under initiative Trainers from NCLP schools are trained on acurriculum that has been developed in partnership with NCERT and is specially designed for children

who have been rescued from child labour.

(C) IL&FS Clusters joins hands with UNDP for pappadum cluster to promote women empowerment. The project has been established to empower women through an integrated approach that enhances theincomes of women and helps them contribute effectively to decision making in the domestic and publicspheres

(D) IL&FS Clusters is working with GTZ on preparation of country strategy. CDI undertook country studyfor identification of competitive sub-sectors/clusters and recommendations on interventions as to enhancecompetitiveness/performance of enterprises in Sri Lanka for GTZ.

(E) IL&FS Clusters is also the project consultant for Agribusiness Infrastructure Development InvestmentProgram (AIDIP) of Asian Development Bank. AIDIP is the flagship initiative of ADB for AgribusinessInfrastructure in India. As part of this assignment, IL&FS Clusters has prepared blue-prints for setting upintegrated value chain projects for perishables, largely cold chain facilities, in the states of Bihar andMaharashtra

(F) Borno State, Africa: IL&FS EDUCATION ventured into Africa with its tie up with the state of Bornofor Implementation of K-Class in the state. We are providing K-Class education solution to 500 schoolsof Borno State. This includes customization of K-Content and teacher training programmes.


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Awards and Recognitions

As one of Indias largest social infrastructure company, IL&FS Education has been transforming the lives ofmillions through our initiatives cutting across important development indicators. The quality of our engagementhas been recognized by all stakeholders. Some of the recognitions which have highlighted the efforts by IL&FSSkills in skill development are as follows:

We are the single largest partner of Ministry of Rural Development having trained over 2, 50,000rural BPL youth on pan India basis under SGSY-SP scheme.

IL&FS has been recognized by NSDC as Best Performing Corporate Partner.

IL&FS also received the FICCI UKIBC Best Skills provider Bottom of Pyramid Award in 2011

IL&FS operating model has been recently featured in both The Economist and the McKinsey GlobalStudy on Education to Employment as one of the two global successes. Our case study is now part of thereport which was released; during the World Economic Forum (WEF) 2012 in Davos

McKinsey featured IL&FS Skills as a Global Best Practice in Skills

Millions of young people around the world are unable to find a job while employers struggle to find qualifiedcandidates. To highlight these dual challenges in bridging the employment gap, McKinsey conducted a surveyof 4500 young people, 2700 employers and 900 education providers for their Education to Employment (E2E)Report.

IL&FS Skills was profiled in the E2E Report for significant contribution in the skills development sector(http://mckinseyonsociety.com/e2e_casestudy/ilfs-india). In order to review the IL&FS Skills processes andmethodologies, McKinsey made field visits at the IL&FS Institutes at Phulbani in Odisha and Coimbatore inTamil Nadu and conducted in-depth interviews with IL&FS Skills trainees, their parents, industry partners,officials from the government of India, Managing Director of NSDC and top management from IL&FS. TheIL&FS Skills methodologies have been documented into a video, which was screened at the WorldEconomic Forum in Davos, Switzerland.

http://www.mckinsey.com/features/education_to_employment
http://www.mckinsey.com/features/education_to_employmenthttp://www.mckinsey.com/features/education_to_employmenthttp://www.mckinsey.com/features/education_to_employment


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Footprint of IETS IL&FS Education with its registered office at Mumbai and Head Quartered in New Delhi has several regionaloffices, skill training institutes and centres, schools, health centre touch points present in 540 districts out of total641 districts in 25 states of India.

Figure- 1.3


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Methodology

Figure-1.4


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1.4 STAR SCHEME

1. Objectives

The objective of this Scheme is to encourage skill development for youth by providing monetary rewards for

successful completion of approved training programs. Specifically, the Scheme aims to: encourage standardization in the certification process and initiate a process of creating a registry of skills;

and Increase productivity of the existing workforce and align the training and certification to the needs of the

country. provide Monetary Awards for Skill Certification to boost employability and productivity of youth by

incentivizing them for skill trainings Reward candidates undergoing skill training by authorized institutions at an average monetary reward of

Rs.10, 000 (Rupees Ten Thousand) per candidate. Benefit 10 lakh youth at an approximate total cost of Rs. 1,000 Crores.

2. BackgroundThe Finance Minister in his Budget Speech of 2013 proposed a scheme to encourage skill development for youth

by providing monetary rewards for successful completion of approved training programs.

3. Key Features

This Scheme shall be implemented through Public-Private and Public-Public partnerships. NSDC will be the implementing agency for this Scheme and NSDF shall monitor the implementation of

the Scheme, using mutually agreed criteria with NSDC.

The Scheme will provide monetary incentives for successful completion of, market-driven skill training toapproximately ten lakh youth in a span of one year from the date of implementation of the scheme.

All trainings will be specifically oriented for developing skills in specific growth sectors. Assessment and training bodies for all purposes of the Scheme will be separate and no overlap of roles

will be allowed to maintain transparency and objectivity. The monetary reward will be wholly funded by the Ministry of Finance, Government of India, and will be

affected through direct bank transfer to the beneficiaries accounts. Appropriate consideration will be provided to the economically backward sections.


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CHAPTER-2 PRIMARY AND SECONDARY RESEARCH

2.1 Research Objective

IL&FS skill is one of the leading organizations in the field of skill development. Skill development is a sectorwhich is growing at a very rapid rate of 14%. So there are many organizations which have entered into the field ofskill development. IL&FS skills being the market leader is now facing more competition from otherorganizations. The enrolments and the turnover are below expectations for IL&FS skills. So there is a need to findout the movement of other organizations in this sector.

Main Objective of the Project- To conduct a competitors analysis for IL&FS Skills.

Sub-Objective of the Project-

To map Large Training partners, Medium-Small Training Partners and Regional Training partners of NSDC with respect to the number of centers and the trades in which they are present.

To conduct a competitors analysis to find out the actual movement of the organizations withinDelhi/NCR region.

To carry out a comparison between the IL&FS Skills and other organizations for the parameters that have been carried out.


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2.2 Objective-1 Mapping of the competitors of IL&FS Skills

With the help of secondary research, the competitors have been mapped out into the different categories withrespect to the number of centers and the number of trades they are present in.

Large NSDC partners(Table-1.4)

Organization Name Number ofcenters

Sectors Covered

EVERONN 215 Tourism, hospitality, healthcare, retail, media, entertainment,IT, textile, construction and automotives

IIJT 120 IT,retail,BFSI,healthcare,hospitality,manufacturing,construction

LAURUSEDUTECH

300 Automotive, construction, textile, electronics, IT software andhardware and teaching

GLOBSYN

SKILLS

225 IT, ITes, Electronics, IT hardware and retail

EMPOWERPRAGATI

70 IT, ITes, BPO, tourism, hospitality, travel, organised retail,informal sector

CENTUMLEARNING 120 Automobile, organised retail, telecom, healthcare, building,construction, engineering

BASIX 65+500(micro) construction, tourism, banking, rural farming, hospitality, food processing

GRAS ACADEMY 40 retail, healthcare, building and construction, automobile, autocomponent, tourism, hospitality, travel trade, electronics, IT,Banking, insurance, spoken English

AISECT 1200 Finance, Gem, Jewellery, Automotive, retail, IT, ITes, telecom

ICA INFOTECH 200 Agriculture, Gem, Jewellery, Retail, IT, ITes, Automotive,Construction

IACM 100 Finance, Gem, Jewellery, Automotive, retail, IT, ITes, telecom


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Medium-Small NSDC partners

Based on the number of Training centers and the numbers of sectors they are present in, we can also divide

training partners into medium-small category. This category has comparatively lesser number of centers and they

are present in lesser number of trades as compared to the large NSDC Partners.

Table-1.5

Organization Name Number ofcenters

Sectors Covered

BRITTIPROSHIKSHAN

PVT LTD.

108 IT/ITes, Hospitality, BFSI

DON BOSCOTECHNICAL

SOCIETY

130 IT,retail,BFSI,healthcare,hospitality,manufacturing,construction

ORION EDUTECHPVT LTD.

85 Construction, Health, Telecom, Retail

ROOMANTECHNOLOGIES

22 Telecom, Retail, IT/ITes, BFSI, Automotive

ASMACS 8 Telecom, Retail, Plumbing, Automotive

EDUBRIDGE 12 Media, Gem, Jewellery, Retail, IT/ITes, Construction, BFSI

ANTSCONSULTING

25 BFSI, Retail, IT/ITes, Security

ACHARIYATECHNOLOGIES

15 Agriculture, Retail, Automotive

AIM 30 Retail, automotive, security


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Regional NSDC Partners

Regional NSDC partners are those partners while are present only in few states. These companies are present in

maximum 2-4 states. They also have lesser number of centers and trades as compared to the large NSDC Partners.

Table-1.6

Organization

NameNumber Of

Centers Sectors Covered

AIS SKILLS 5Agriculture, Retail, IT, ITes, Automotive, Construction,Plumbing

CAREEDUCATIONAL &WELFARE SOCIETY 5 Media, Gem, Jewellery, Retail, IT/ITes, Construction

JOBSACADEMY(EDUJOBS) 5

Agriculture, Gem, Jewellery, Retail, IT, ITes, Automotive,Construction

TALENT SPRINT 7 IT/ITes, Telecom, Software

AUTOMOBILESOCIETY OF INDIA 4 Telecom, Automotive, retail

DRISHTEE 1 BFSI, agriculture, construction

HELIOS MATHESONIT(BANGALORE)LTD. 6 Electronics, Retail, IT/ITes, telecom

LAQSH 8 Retail, IT/ITes, Telecom, Gem Jewellery, BFSI

LOK BHARTISKILLING SOLUTION 4 Construction, retail, automotive
http://www.cews.in/http://www.cews.in/http://www.cews.in/http://www.heliosmatheson.com/http://www.heliosmatheson.com/http://www.heliosmatheson.com/http://www.heliosmatheson.com/http://www.heliosmatheson.com/http://www.heliosmatheson.com/http://www.cews.in/http://www.cews.in/http://www.cews.in/


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2.3 SubObjective-2 To conduct a competitors analysis to find out the actual movement of the organizationswithin Delhi/NCR region.

To conduct this analysis there was a step to step process which was followed.

Preparation of Questionnaire so that standard results could be reached

Approval of Questionnaire from Vice President Of Operations

Taking Appointments with respective competitors

Meeting respective competitors and trying to gather the information which is designed in questionnaire.

Companies for which analysis is done in Delhi/NCR

IL&FS Skills- Large NSDC Partner

B-ABLE- Large NSDC Partner

Empower Pragati- Large NSDC Partner

GRAS academy- Large NSDC Partner

Globsyn Skills- Large NSDC Partner

AISECT- Large NSDC Partner

Don Bosco Tech Society- Medium-Small NSDC Partner

Rooman Technologies- Medium-Small NSDC Partner

Care Educational & Welfare Society- Regional NSDC Partner

Lok Bharti Skilling Solutions- Regional NSDC Partner
http://www.cews.in/http://www.cews.in/


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The total employee strength of IETS (IL&FS Education and technology services) is around 4000.

Target Segment- The target segment is underdeveloped areas and the unskilled youth in both the urbanand rural parts of India in the age group of 18-35 years.

Marketing means used by ISDC is the mobilization drive and the local language promotions throughvarious events. The reach of ISDC mobilization drive is in all the states of India covering all the majorurban and rural areas.

Positioning- EDUCATION EMPLOYABILITY EMPLOYMENT

ISDC has also participated in the franchisee model with around 350 franchisee centers. The main problems that ISDC faces are the Quality control and monitoring issues with these centers. Becauseaccording to the rules and regulations of the organization, it is necessary for all the franchisee partners tomaintain a certain standard with a proper set of rules.

ISDC uses the best of the best technology to train students. Projectors, Video conferencing, Skype are allused. Besides this they also use a K-YAN which is the flagship product of ISDC. K-Yan is an innovativetool for integrating ICT in Education. K-YAN is a single wire computer with internet connectivity,

projector, multimedia device which converts any wall in a school into an interactive classroom supportsmultiple peripherals and enables interactive learning in English as well as in various regional languagesincluding Urdu, Hindi, Marathi, Telegu, Tamil, and Kannada. Developed in partnership with IIT,Bombay, K-Yan empowers the teacher to focus on improving the learning outcomes by using contentwhich is modern, engaging and involves the student at every step.

Hostel and travel facilities are provided at few remote locations

The key parameters which creates an edge for ISDC are

1. The Brand IL&FS2. The Training Pedagogy3. Vast Range of Training programmes

The main problems that ISDC faces are that the paid candidates are very few. Since most of the studentsare poor hence they demand discounts. So funding is a challenge for ISDC.


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B-ABLE

This company has recently completed 6 years of its operations. The parent company is BASIX India with around65 self owned centres and over 500 micro training centres. This company has its presence felt in around 17 statesof India. B-ABLE is growing with a rapid growth as far as its reach and the number of students trained isconcerned. This company falls under the category of Large NSDC Training partner.

It has trained above 16000 students during last year which is the fourth largest of NSDC.

B-ABLE also provides placement services to the students and the placement percentage is around 60% ofthe trained students which is considered to be very good. It also has a subsidiary called Domesteqwhich helps B-Able in the placement of students in the field of household and domestic works.

Courses Provided - Agriculture, Horticulture, House assistance, Industrial Trade, hospitality, travel,construction, automobile, retail, rural trades, IT, accounts, Soft skills, Electronics hardware and software,customer service, beauty, cosmetics.

So they have their presence in almost all major sectors

The major areas of strength are Domestic house assistance, retail, IT, ECE and soft skills. Domestic houseassistance is a special course run by the organization which is generally not present in any of the largetraining partners of NSDC in which they have their upper hand with maximum placement percentage.

Sources of Funding - Four major sources of funding are Govt. /State govt. programmes, CSR sponsored programmes, Student paid programmes and funding by NGO. They do not any corporate sponsored programme.

Work Structure

1. Mobilize- There mobilization programme has their presence in over 26000 villages in around 17 states of India

2. Training- Training is provided by experts to give key skills to the student3. Certify- certification is done after the assessment by the respective sector skill council4. Employ- After the certification is done, the company helps the students in there placements.5. Retrain- After employment, they also run several courses for skill up gradation which helps a

student to grow more.

They have total employee strength of around 8000 with 80% of them present in villages and around 400in corporate offices.

The target segment is Slum areas, villages, school dropouts, BPL Card holders. They have less focus onunemployed people in urban areas.


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The marketing technique they use is the mobilization which is present in over 26000 villages in 17 statesof India.

Positioning - They position themselves are the best growing organization with an incredible reach in over17 states, higher no of students trained and the sectors covered by them.

This company also participates in the franchisee model but they are not very happy with it. There aremany problems faced by them in the franchisee model like Management of Data, Management of fundstransfer, Regular inspection of Franchisee centres etc.

They use technology based methodology to train students like video conferencing, projector method,Video classes etc.

They do not provide hostel facilities to students but they provide travel services to students in someremote areas.

Challenges Faced

1. The main challenge for the organization is that since they deal with rural population and lowerclass segment so they face difficulty in training and placing them because of their attitude.

2. Higher dropout rates3. Since rural students speak a different local language different from Hindi and English, so they

also face some language issues.


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EMPOWER PRAGATI

This company has completed 5 years of its operations. The company is rapidly growing with around 500 centresall over in India with a reach in about 19 states. This company falls under the category of large NSDC Training

partner.

This company has trained around 30000 students during the last year.

It also provides placement services to the students for all the other Programmes except for STAR scheme.For star scheme they do not provide placement services but for other programmes there placement

percentage is 100%. It means all the students got placed after joining any of the courses except for STARscheme.

Courses offered - Retail, supply chain management, Hospitality, Life skills, Computer courses, Englishcourses.

So they have their presence in limited sectors but they are considered to be very good in these particularsectors.

Sources of Funding - The major sources of funding are the Govt. /State sponsored Programmes and theStudent paid Programmes only. They do not engage in CSR Programmes and corporate sponsored

programmes.

Work Structure-

1. Mobilization- there presence is in around 20 states of India2. Counselling- After mobilization, they counsel the student as to which course he/she should join

according to the capabilities and qualifications3. Enrolment followed by Training with academic experts.4. Assessment by the respective SSC followed by certification(in STAR scheme)5. Placement

The overall employee strength in the corporate offices is 120 mostly under Delhi/NCR

Target Segment - There target segment is rural people between the age is 18-35 years, Poor candidatesand BPL card holders. They also have less focus on poor and unemployed people in the urban cities ofIndia.

They use door to door mapping to reach their target segment and counselling them about the courses andthe schemes. They also distribute pamphlets and broachers in the villages in their local languages.

Positioning - They position themselves as the company with best quality of training. They consider theirQuality of teaching as unique and at par with all the other major organizations in this sector.


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This company also uses a franchisee model but they also face some problems like maintenance ofStandards and the rules given by NSDC. But overall they consider themselves as profitable after investingin franchisee model

They use special technology while teaching like VC, Skype classes, telephonic and video interviews, LiveProjects etc.

They do not provide any hostel or travel facility to the students.

Challenges faced- The Problems that the company faces is that rural students are not willing to study andtheir concentration power is very low. So its difficult to train them. Also according to them, candidatesare not willing to relocate after their placement, so it creates some problems.


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GRAS ACADEMY

Gras academy is a subsidiary of Gras Education and Services Pvt. Ltd. This company has completed 7 years of itsoperations. The company is rapidly growing with around 250 centres all over in India with a reach in about 13states. This company also falls under the category of large NSDC Training partner.

This company has trained around 20000 during the last year.

It also provides placement services to the students for the entire Programmes .For star scheme they have placed around 4368 students during last year out of 10500. While for all other programmes, the placement percentage is around 80%. It means most the students got placed after joining any of the courses exceptfor STAR scheme. Overall Placement ratio is around 65%

Courses offered - Accounts, BFSI, Retail, Hospitality, Mobile Repairing, Computer hardware andsoftware, Construction, Telecom, soft skills.

So they have their presence in most of the important sectors and they are also planning to launch

several new courses in several other sectors.

Sources of Funding - The major sources of funding are the Govt. /State sponsored Programmes, CSRsponsored programmes and the Student paid Programmes. They do not engage in corporate sponsored

programmes.

Work Structure-1. Mobilization- there presence is in around 13 states of India covering around 15000 villages2. Counselling- After mobilization, they counsel the student as to which course he/she should join

according to the capabilities and qualifications3. Entry Gate Assessment- An entry test is taken to find out whether the student has the priorknowledge in that particular field or not.

4. Enrolment followed by Training with academic experts.5. Assessment by the respective SSC followed by certification(in STAR scheme)6. Placement

The overall employee strength in the corporate offices is 250

Target Segment - There target segment is Poor candidates and BPL card holders and school dropouts and

backward classes. They also focus on poor and unemployed people in the urban cities of India.

They use door to door mapping to reach their target segment and counselling them about the courses andthe schemes. They also distribute pamphlets and broachers in the villages in their local languages. Theyalso use mobile bulk messaging technique to reach maximum amount of customers.


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GLOBSYN SKILLS

Globsyn skill is a subsidiary of Globsyn Ltd. This company has completed 7 years of its operations. The companyis rapidly growing with around 230 centres all over in India with a reach in about 15 states. This company alsofalls under the category of large NSDC Training partner. Globsyn skills have also its 27% stakes with NSDC.

This company has trained around 30000 students during the last year.

It also provides placement services to the students for all the other Programmes except for STAR scheme.For star scheme they do not provide placement services but for other programmes there placement

percentage is 80%. It means most of the students got placed after joining any of the courses except forSTAR scheme.

Courses offered - IT/ITes, Electronic hardware and software, retail, mobile repairing, engineering, plumbing, construction.

So they have their presence in limited sectors but they focus on these sectors to a good extent and

currently for next 2-3 years they have very less chances of diversifying their courses.

Sources of Funding - The major sources of funding are the Govt. /State sponsored Programmes, companysponsored programmes and Student paid Programmes only. They also engage in CSR Programmes butthe percentage is very less for CSR programmes.

Work Structure- They do not have any entry gate assessment test. 1. Mobilization- there presence is in around 15 states of India covering around 10000 villages2. Counselling- After mobilization, they counsel the student as to which course he/she should join

according to the capabilities and qualifications3. Enrolment followed by Training with academic experts.4. Assessment by the respective SSC followed by certification(in STAR scheme)5. Placement

The overall employee strength in the corporate offices is 250 all over in India.

Target Segment - Around 50% of their students is BPL card holders from rural areas. They mainly focusonly on rural areas dropouts. So they have very little focus on urban areas.

They use door to door mapping to reach their target segment and counselling them about the courses andthe schemes. They also conduct several campaigns like Mini-vans etc to inform people about theirschemes.

Positioning - They position themselves as organization with lower input and higher output. The fee iscomparatively less with respect to other organizations. There is a difference of around 10% in fees ifsimilar organizations are considered.

Globsyn has not engaged into franchisee model till yet and for coming few years they are not planningfor it because they consider their business as good growing.


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They use special technology while teaching like VC, Skype classes, telephonic etc.

They do not provide any hostel or travel facility to the students for the STAR scheme but they providethese facilities for other programmes.

Challenges faced- The Problems that the company faces is that rural students are not willing to study because of their economic problems. Also according to them, candidates are not willing to relocate aftertheir placement, so it creates some problems.


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AISECT

This company has recently completed 29 years of its operations. It has around 3500 centres (1200 for STARscheme) all over in India. This company has its presence felt in maximum 23 states of India. This company wasonce growing at a rapid growth but now it has reached a point where it is difficult for them to grow more. Thiscompany falls under the category of Medium NSDC Training partner because of the less number of trades they

are into. It has trained above 15000 students during last year which is the fifth largest of NSDC.

They do not provide placement services for the students of govt. schemes but for self sponsored schemesthey provide placement with a placement percentage of around 40% which is low as compared to otherorganizations.

Courses Provided - IT/ITes, retail, agriculture, gems and Jewellery, Capital Goods

Since their presence is in very few sectors so they are willing to open new courses in the due course oftime.

Sources of Funding - The major sources of funding are Govt. /State govt. programmes, CSR sponsored programmes and Student paid programmes. They do not any corporate sponsored programme.

Work Structure

1. Mobilize- There mobilization programme has their presence in over 33000 villages in around 23

states of India 2. Counselling- After mobilization, they counsel the student as to which course he/she should joinaccording to the capabilities and qualifications

3. Enrolment Test followed by Training with academic experts.4. Assessment by the respective SSC followed by certification(in STAR scheme)5. Certification

They have total employee strength of around 450 in corporate offices.

The target segment is poor people in rural and semi urban areas and also BPL card holders in rural areas.

They also have very less focus on people from urban areas.

The marketing technique they use is the mobilization which is present in over 33000 villages in 23 statesof India. Also they use door to door mapping technique and Van decoration is rural areas to attract more

people.


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Positioning - They position themselves as low cost quality product organization with it presence in almostall states of India.

This company also participates in the franchisee model. Opportunities are that they have a chance toexpand their business. But the problem of maintenance check and quality check is met through surprisechecks at the centres.

They use technology based methodology to train students like video conferencing, online classes, e-content etc.

They have semi residential facilities for students and also they provide travel stipend to students in someremote areas

Challenges Faced-

1. The students are not willing to pay the fees completely. Either discount is demanded or they paythe fees in many instalments.

2. Students are not willing to relocate after their placements.3. Due to several distractions in villages it is difficult to hold the student during training.


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DON BOSCO TECHNICAL SOCIETY

It is a subsidiary company of Don Bosco Tech. group. This company has completed 6 years of its operations. Ithas around 125 centres all over in India. This company has its presence felt in around 8 states of India majorlynorthern and eastern states. This company falls under the category of Large Regional NSDC Training partner

because of the areas it is present in. It is not present in western and southern part of India.

It has trained above 20000 students during last year which includes students from both STAR schemeand other projects.

They Provide placement assistance to students for which the placement percentage is around 40% i.e.around 8000 of 20000 students have been placed till now.

Courses Provided - Retail, hospitality, engineering, mechanical, healthcare, construction, apparel,automobile, beautician, electrical, hospitality-cookery, hotel management, housekeeping, ISMO, ITes,office management, Sales and marketing, Spa services, tourism, welding and fabrication.

So they have made their presence felt in almost all sectors. The courses which are different from other

organizations are apparel, beautician, cookery, housekeeping, ISMO, sales and marketing, Spa services,

tourism. So they are mainly focusing on these courses only to grow more and more.

Sources of Funding - The major sources of funding are Govt. /State govt. programmes, CSR sponsored programmes and Student paid programmes. They do not any corporate sponsored programme.

They have a presence in around 8-10 states with around 10-13 centres in each states. So they are coveringa very less portion of India but the number of students trained is comparable to the other organizations. Inthe coming 5 years they are planning to start around 30-50 centres in the western and southern portion ofIndia to get a national presence.

They have total employee strength of more than 500 in corporate offices.

The target segment is poor people in rural and urban areas and also BPL card holders in rural and urbanareas. Unlike other organizations who focus mostly on rural areas, DB tech society also focuses on poorand BPL card holders in urban areas like Delhi.

The marketing technique they use is the door to door mapping technique, events in rural areas,Sponsorship events etc. They also have co nnections with several NGOs in rural and urban areas whichhelps DB tech group in increasing their reach.

Positioning - They position themselves as low cost quality product organization with there presence inalmost all trades.


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DB tech society does not participate in the franchisee model. They believe that participating in thefranchisee models can create problems with respect to quality that they give.

They conduct several trips, projects etc so that students can learn the habit if working in teams. They alsouse projector techniques, video conferencing techniques to train students.

They provide hostel and travel facilities to students in rural and remote areas almost free of cost.

Challenges Faced-

1. According to them, the number of students they have trained is below their expectations and sothey are trying hard with their marketing techniques to attract more students.

2. They face problem while placing students in organizations because of the attitude of the students.


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ROOMAN TECHNLOGIES

This company has completed around 14 years of its operations. It has around 50 centres all over in India. Thiscompany has its presence felt in around 3-4 states of India majorly southern states like Karnataka, Tamilnadu,Kerala. It also has one centre in Delhi which is the only centre in north India. This company falls under thecategory of Medium NSDC Training partner because of the areas it is present in.

It has trained around 6000 students during last year .

They Provide placement assistance to students only for self paid courses. No placement assistance is provided for STAR scheme students. The placement percentage for self paid courses in around 70%.

Courses Provided - Telecom(3), IT/ITes(3), BFSI(2), Retail(4), Electronics(1)

They run courses which are more technical in nature and so they have special equipped Labs which

provide hands on experience to students.

Sources of Funding - The major sources of funding are Govt. /State govt. programmes and student paidProgrammes. They do not any corporate sponsored programme and CSR funded programmes.

They have a presence in around 3-5 states with around 10-13 centres in each states. So they are covering avery less portion of India. In the coming 5 years they are planning to start few centres in the northern

portion of India to get more presence.

They have total employee strength of more than 250 in corporate offices.

The target segment is poor people, school dropouts, unemployed people and BPL card holders in ruralareas. Like most of other organizations, it also focuses more on rural areas only. Less focus in given onstudents of urban areas.

The marketing technique they use is the door to door mapping technique, events in rural areas. They alsouse Van campaign method in which a decorated VAN runs in several villages which attracts ruralstudents.

Positioning - They position themselves as low cost quality product organization

They participate in the franchise model but face few problems of standard management. But overall theyconsider this model as fruitful and profitable.

They do not use any special technology to train students. Only projector technique is used.

They face problems in attracting and training students because of the undisciplined nature of ruralstudents.


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CARE EDUCATIONAL AND WELFARE SOCIETY

This company has completed around 15 years of its operations. It has around 5 centres all over in India. Thiscompany has its presence felt in around 1-2 states of India in Delhi and Uttar Pradesh only. This company fallsunder the category of Medium-Small NSDC Training partner because of the areas it is present in and the numberof courses it runs.

It has trained around 1000 students during last year .

They do not provide placement services to students neither for the STAR scheme nor for the students ofany other programmes.

Courses Provided - Media, Entertainment, Gems and Jewellery, Retail, IT/ITes, Construction, cooking,housekeeping,

Housekeeping, cooking and Retail are their major areas of strength.

Sources of Funding - The major sources of funding are Govt. /State govt. programmes and CSR fundedProgrammes. They do not any corporate sponsored programme and self paid programmes.

They have total employee strength of around 50 in their corporate offices.

The target segment is poor people, school dropouts, unemployed people and BPL card holders in urbanareas. Unlike most of other organizations, it focuses more on urban areas only. Less focus in given onstudents of rural areas.

The marketing technique they use is the door to door mapping technique, events in rural areas.

Positioning - They position themselves as social partners and nonprofit organizations who are working forthe welfare of the people.

They do not participate in franchise model and also they do not use any special technology to trainstudents.

They face problems in attracting and motivating students. They also face some problems with thefinancing of the courses because of their lower budget structure.


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They are trying hard to increase their placement ratio to above 90% and they are also trying to make anational presence.

They face problems in attracting students. Also dropout rates are higher according to them.


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2.4 Sub-Objective-3 To carry out a comparison between the IL&FS Skills and other organizations for the parameters that have been carried out.

1) Number Of centers

Figure-1.5

Here we can see from the above chart that AISECT is the organization having the largest number of Centers inIndia. B-Able follows AISECT followed by Empower Pragati. ISDC has 390 centers all over India.

2) Number Of Students Trained

So from the Chart shown below we can see that ISDC has trained the maximum number of students during thelast year. It has taken most of the pie of the students trained. Here we can also see that out of all the organizationsin Delhi/NCR, ISDC has trained almost 44% of the students followed by Globsyn skills and Don Bosco techSociety. So this makes ISDC the market leader in the skill development sector.

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Figure-1.6

3) Ratio of Students trained to the number of Centers i.e. Students trained per centre.

Figure-1.7

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So from the above chart we can see that Lok Bharti Skilling solution which is a Regional NSDC Training partnerhas the highest number of students trained per center which is followed by ISDC. Organizations like AISECT andBABLE has the least number of students per center which shows there inefficiency. A new center costs too muchso there is a need to improve the number of students per centre. ISDC should also try to work on increasing the

number of students per center to reduce cost and achieve maximum output out of a perticular centre.

4) Placement Percentage

Figure-1.8

Here we can see from the above chart that ISDC has the highest placement percentage which is around 80%followed by Lok Bharti 73% and Gras Academy 65%. Though ISDC has highest ratio but there is still a scope for

ISDC to improve its placement percentage to 90-100% to create an edge above those organizations. Otherorganizations are quiet new and hence they are improving there placement percentage year over year. So ISDCshould work on improving placement percentage to maintain the highest standard.

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5) Courses Run by the Organizations

Specialized Courses- BFSI, IT/ITes, Sales Associates, Banking, Insurance

General Courses- Retail, Manufacturing, Construction, Plumbing, Welding, Retail, Travel, Hospitality, Tourism,

Basic English, Computer courses

Special Courses- House Keeping, Mobile repairing, Automobiles, BPO

Most of the organizations are running all the general courses. ISDC also runs all the major general and specializedcourses. But ISDC is still lacking in some special courses like housekeeping and mobile repairing which aregrowing at a very faster pace now a days. Mobile repairing is a very vast course which has lot of potential for astudent. So ISDC should start focusing on special courses more to expand their range.

6) Work Structure

Work structure followed by ISDC is the best adopted and hence there is no need to change it. All which is neededis the proper implementation of all the steps in the structure. Other organizations do not follow this structure andhence they face some problems somewhere or the other.

7) Target Segment

Majorly, all the organizations are focusing only on unemployed and poor people in rural areas. But in urban areasalso, there is a huge chunk of population which is unemployed and unskilled. Many of them falls in the categoryof poor people and BPL card holders. So ISDC should also focus more on BPL holders and unemployed people inurban areas which can improve their turnover.


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CHATPER-3 RECOMMENDATIONS

1) ISDC should focus on improving its number of students per centre which will improve the overall efficiencyand revenues of the organizations.

2) ISDC should work to improve its placement percentage. The current placement percentage is around 80%.Many organizations in this sector are increasing their placement percentage and are moving towards 80%. So tocreate an edge over those organizations more placement linkages should be made.

3) ISDC should start some specialized courses like house-keeping, Mobile Repairing etc which are strength forsome other organizations. ISDC should focus on these courses also to keep an upper hand over otherorganizations in all trades.

4) Focus should also be given on the unemployed and poor people in Urban areas because most of theorganizations are focusing mainly only on rural areas. Urban areas are also having a huge potential which needs to

be utilized.

5) Still there are many areas in which people are not aware about these skill development courses. So Marketingshould be increased in those areas to make the people aware about the courses and the STAR scheme. The mainmarketing techniques which can be used are Nukkad Nataks, Van Decoration, Small events in local schools,organizing camps in villages and cities, more local language promotions etc.

6) Franchisee centers should maintain a proper standard of education according to the rules and regulations. Soregular surprise checks should be done to ensure maintenance of standards.

7) Hostel and Travel facility can be provided to students at a cheaper cost to attract more students. Some

organizations are using these services to attract more students.


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References

Retrieved On 26 th May 2014 at www.isdc.in

Retrieved On 24 th May 2014 at www.ilfsskills.com

Retrieved On 26 th April 2014 at www.ilfsindia.com

http://www.nscsindia.org/NSCSTrainingPartners.aspx

http://www.nscsindia.org/NSCSAssessmentAgency.aspx

Retrieved On 16 th May 2014 at http://www.lokbharti.com/initiatives-outreach.html

Accessed on 15 th April 2014 at www.nscs.org/documents :Scheme Document of National Skill

Certification and Monetary Reward

Accessed on 29 th April at www.nscs.org.listofcenters :List of NSDC centers across country.pdf

Retrieved On 26 th May 2014 at www.ficciskillforum.org

Annual report of IL&FS 2013-14 at www.ilfsindia.com accessed on 29 th May 2014.

Skill development sector profile by FICCI report at www.ficciskillforum.org
http://www.isdc.in/http://www.isdc.in/http://www.isdc.in/http://www.nscs.org/documentshttp://www.nscs.org/documentshttp://www.nscs.org.listofcenters/http://www.nscs.org.listofcenters/http://www.nscs.org.listofcenters/http://www.ficciskillforum.org/http://www.ficciskillforum.org/http://www.ficciskillforum.org/http://www.ilfsindia.com/http://www.ilfsindia.com/http://www.ilfsindia.com/http://www.ficciskillforum.org/http://www.ficciskillforum.org/http://www.ficciskillforum.org/http://www.ficciskillforum.org/http://www.ilfsindia.com/http://www.ficciskillforum.org/http://www.nscs.org.listofcenters/http://www.nscs.org/documentshttp://www.isdc.in/

competitor's analysis of il&fs skills

Documents