Saturday, April 23, 2011

Everonn- NSDC Deal Analysis

Everonn recently announced a deal with NSDC to train 15 million people over the next 10 years. While one must congratulate them for being ambitious, there are a few things that we note

1. Reading most media reports leaves you thinking that NSDC will pay for the training. Incorrect! NSDC is not going to pay for the training; it is only providing low cost funding, as soft loans (and equity) to create capacity. The 15 million number is based on a 10 year business plan, which is largely an excel exercise at this stage. This is not a 15,000 cr contract with NSDC as reported in the media.

What must be noted that Everonn trained about 2000 people on vocational skills last year and aims to scale this up to 2.5 lacs in FY12 itself. Pretty steep climb in my view. Especially given that not too many people have been able to scale up vocational training, NIIT and Aptech being exceptions. And NIIT, over 30 years has only scaled up to training 5 lac/year.

2. Everonn is targeting an average fee of Rs 9000 per student. Though it sounds low, the propensity to pay (even this low amount) for training in the target population is likely to be a major challenge

3. 15 million means over 10 years implies that in the 10th year, they would be training at least 2-3 million. Given that India makes 30 million babies a year, this is 7-10% of the annual incremental population, implying 10% of population being trained by one company. Given that they are targeting service sector skills only, the implied share of target segment is huge

4. They hope to make profits in the first year despite a steep ramp up. Unlikely, given that initially the sales and marketing costs are going to be very high

That said, the fact that they can call themselves a government (or at least a semi government) organization is a huge positive and would give them credibility in the market. What remains to be seen is whether this advantage, comes with any baggage as well.

Wednesday, April 20, 2011

Anna Hazare Praises Narendra Modi

Don't understand the fuss about Anna's praise of Modi driving development in Gujarat. Per Gandhi, one must separate the man (or woman) from his (her) actions. This usually applies in reverse (ie for bad actions). However, fact is that there is development in the state run by Modi, and he is widely seen as the man responsible for it. So what is wrong in praising a good result achieved by a person?

Sunday, April 03, 2011

April 2, 2011 - What a day! What a fantastic day

Saturday, April 2, 2011. The day would forever be etched in Indian psyche. it is the day India won the cricket world cup for the second time, after a gap of 28 years. It was same day in 1983 that kapil's devils had done the country proud. this one is equally special

Friday, April 01, 2011

Gmail Motion

Have you tried the new Gmail Motion yet!

Google's this years April Fool prank, clearly it fails to fool you. Nice idea but execution is not that great. Best pranks leave you thinking that this is possible and then make you realize how fooling you were to believe so. As soon as I hit the landing page of I knew that this is an April fools prank. That apart the videos and stories are incredible and appear like a kids prank rather than a prank targeted at majority gmail users.

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