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