During the year, Aptech aligned its two brandsAptech Computer Education (ACE) and SSI Education, operating in the same segment. Its premium course, Aptech Certified Computer Professional (ACCP), recorded an increase in enrolment of 50% over the previous year. New Horizon, a smaller player in the individual learning segment with approximately 1.5% market share too launched its Certified Network Engineer (NHCNE) and New Horizons Certified Web Specialist (NHCWS) courses coupled with hands on live exercises.

Niche animation courses made up a much-in-demand segment. Niche players like Maya Academy of Advanced Cinematics (MAAC) and Arena Multimedia managed to keep pace with the demand and rake in the moolah. Arena Multimedia recorded its highest bookings of Rs 109 crore during the year. And MAAC launched an animation movie project: Alone and Loving it.

In response to the demand for animation courses, MAAC added 30 centres during 2006-07 with a presence across 56 operational centres. With the focus of the institute shifting from the domestic to the international market, it added Dubai and Sri Lanka to its international presence. Other locations in the Middle East, South East Asia and Australia are presently being considered for expansion. Aptech launched a comprehensive Diploma in Animation Engineering course launched at select Arena centers.

Corporate Training: Money Spinner
The export success saga continued through FY 07, but growth also came from the corporate training segment that has picked up very well over the last few years. It constituted 64% of the total training market of Rs 2,135 crore, an indication of its growing importance. From being just another business for the training companies, it has gradually assumed the role of a revenue grosser.

NIITs corporate learning solutions during FY 2006-07 provided learning solutions for technology companies with a focus on developed countries, especially the US. A new offering in the corporate learning solutions was Litmus, an assessment and testing service. As part of this initiative, the company, under the "Tax Return Preparers" scheme launched by the Department of Income Tax, trained over 4,000 selected candidates.

Aptech too focused more on corporate training services with the profit margin of the business rising. In the first quarter of 2007, Aptech organized itself vertically to focus on academics, auto, BFSI, retail and others (telecom, pharmaceutical etc) sectors. The corporate training business was also reorganized from a lower RoI government business to a high RoI corporate one for increasing margins and ROCE (return on capital employed).

During the year, governments of Chattisgarh, Meghalaya, Uttar Pradesh, Assam, and Tripura stepped up their efforts to impart IT-assisted education in their states. The Indian governments Sarva Shiksha Abhiyan chose it to conduct IT-enabled education in 500 schools. Premier management institutes like IIM-Calcutta and Ahmedabad debuted in executive education program in partnership with a leading IT training major for offering management education to be delivered through virtual classrooms.

A smaller player in the segment, Educomp Solutions, managed to bag some major orders from the various state governments for providing computer-aided learning in classrooms: a Rs 72 crore order from the Gujarat government; a Rs 18 crore order from the Haryana government; and a Rs 50 crore combined order from the Gujarat Council of primary education and West Bengal government.

The e-Learning Curve
One of the most talked about segments in the Indian IT training market, the e-learning market is witnessing a churn. The India-based vendors have during 2006-07 contributed Rs 491 crore to the global e-learning market. With most of the big ticket project overseas, players like Tata Interactive Services (TIS), Lionbridge, and Hurixs advertising money is going to foreign markets. FY 07 saw turbulence in TIS, the architect of the e-learning market in India, as rumors started about its supposed merger with TCS. Matters worsened with the company missing its annual targets for the first time in sixteen years owing to a big project that did not fructify. During the last fiscal, however, there was perceptible slowdown in the segment with the industry leader TIS missing its target. NIIT too seems to have thrown its hat in the ring with the acquisition of Element K, a leading US learning solutions provider. As one of the few listed e-learning companies in India, Educomp Solutions launched its ambitious mathguru.com, a website for maths.

Most of the e-learning players agree that acquisitions will be the way to be in the future with either foreign firms acquiring domestic companies or vice versa.

Stuti Das
stutid@cybermedia.co.in

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