Education Industry
India has the largest population in the world in the age bracket of
5-24 years with 580 million people, presenting a huge opportunity in the education sector.
India holds an important place in the global education industry. India has one of the
largest networks of higher education institutions in the world. However, there is still a
lot of potential for further development and improvement in the education system.
The education sector has seen a host of reforms and improved financial
outlays in recent years that could possibly transform the country into a knowledge haven.
With human resource increasingly gaining significance in the overall development of the
country, development of the countrys education infrastructure is expected to remain
the key focus in the current decade. In this scenario, infrastructure investment in the
education sector is likely to see a considerable increase.
With increasing awareness, private Indian players are collaborating
with international brands to provide an international standard of education. Private
investments in the Indian education sector have increased substantially over the past two
decades. The demand for specialised degrees is also picking up with more and more students
opting for specific industry-focused qualifications. Higher education institutes in India
are focusing on creating online programmes due to the increasing demand from consumers.
The National Education Policy (NEP), which will be fully implemented
over the course of this decade, will have a strong focus on high-quality vocational
education. The education sector in India was estimated to be worth US$ 117 billion in FY20
and is expected to reach US$ 225 billion by FY25. The policy also incorporates skill based
industry relevant education with focus on hands training, this will augment with the
business models of the Company.
Despite many positive developments, the education sector in India still
has some serious challenges to overcome. Chief among them is the ability to smoothen the
path from education to employability in order to tackle the skill gap and growing job
crisis in the country. India is poised to be home to one of the worlds youngest
populations, with over 64 percent of its people in the working-age group, and we are
looking at a significant unemployment problem in the coming years.
Vocational Training in India
Generally, vocation and career are used interchangeably. Vocational
education might be classified as teaching procedural knowledge. This may be contrasted
with declarative knowledge, as used in education in a usually broader scientific field,
which might concentrate on theory and abstract conceptual knowledge, characteristic of
tertiary education. India has one of the largest technical manpower in the world. However,
compared to its population it is not significant and there is a tremendous scope of
improvement in this area. The Government is well aware of the important role of Vocational
education and has already taken a number of important initiatives in this area.
Vocational education refers to educational programs that are designed
to prepare individuals for specific careers or skills. It mainly focuses on practical
skills and hands-on training that are directly applicable to the workplace. The expansion
of vocational education in India will provide a skilled labour force in the informal
sector which would further enhance the productivity of the Industrial sector. As per the
latest State of the Education Report of UNESCO, there must be a focus on vocational
education and training. Vocational education programs are designed to prepare students for
specific careers or industries. Hence, with the help of vocational training students can
learn specific knowledge and acquire skills that are relevant to their chosen profession.
At present, only 7 to 10% of the population participates in the formal
sector, the growth of vocational education will offer a trained labour force in the
informal sector, hence increasing productivity. By 2025, the new National
Education Policy (NEP) plans to provide vocational education to 50% of
all students. There is a demand for vocational education, which can serve as a pathway to
acquiring specialized skill sets and information that can be applied in the workplace.
Many vocational education programs have strong partnerships with MEMEs and big industries,
which often leads to job placement opportunities for graduates. This can help students
find employment quickly and reduce unemployment.
We are one of the very few companies providing integrated vocational
training in media, entertainment and sports sectors in India and Dubai. Our Company
attempts to bridge the widening gap between academia and industry requirements by catering
to the students base at vocational level and making them industry ready. The mission
of the Company is to create a global conglomerate that sets new standards of excellence in
Education, Entertainment, Media and Sports to groom future leaders of the industry.
Media and Entertainment (M&E) Industry and Developments
The Indian Media and Entertainment (M&E) industry is a sunrise
sector for the economy and is making significant strides. The increasing availability of
fast and cheap internet, rising incomes, and increasing purchases of consumer durables
have significantly aided the industry. Indias media and entertainment industry are
unique as compared to other markets. The industry is well known for its extremely high
volumes and rising average revenue per user. Proving its resilience to the world, Indian
M&E industry is on the cusp of a strong phase of growth, backed by rising consumer
demand and improving advertising revenue.
Ashish Pherwani, EY India Media & Entertainment Leader, stated,
"The Indian M&E consumer base is large but heterogenous, hungry for content but
willing to pay only for value, and more than ready to experiment with technology, be it
streaming, digital payments, online education, virtual experiences, e-commerce, social
media, or gaming. The diverse consumer base, coupled with favourable macroeconomic and
demographic factors, have translated into a very exciting time for the sector."
Indian media industry has tremendous scope for growth in all the segments due to rising
income and evolving lifestyle. As per the latest report by the PwC, Indias Media and
entertainment Industry is expected to reach Rs. 4,30,401 crores (US$ 53.99 billion)
by 2026. The market is projected to increase at a compounded annual growth rate of 10% to
hit Rs. 2.83 trillion ($35.4 billion) by 2025, according to the annual media and
entertainment
(M&E) report by FICCI and consulting firm EY.
Event Industry
The event industry is the most adapting industry and this is the reason
why this industry is able to take advantage of the growing technology. The key areas in
the event industry where the growth will be seen are digital activation, sports leagues,
rural expansion personal events, product launches and other government marketing
initiative surpassing overall growth rate of the M&E industry. The event industry is
transforming itself day by day with creative content, latest technology and innovative
ideas and is now concentrating more on providing larger than life experience to the
targeted audience. The factors which have led to this tremendous growth of the event
industry are the changes that have come in the Indian economy and also increase in number
of personal events such as wedding and parties, etc Growing digital events, increase in
the spending power and development in the event technology will take the Indian event
industry to new heights in the next 5 years.
The future of the event industry looks bright. The event industry is an
integral part of Indias growing economy. The most prominent event in 2023 will be
the G20 Leaders Summit, being held for the first time in Delhi early next year and
including stakeholders in tourism from all G20 countries, financial institutions, state
tourism departments and representatives of various governments. The sports events have
also become more commercialized in the recent years. Thus, sports serve as a significant
marketing advertisement opportunity for event management companies, which sponsor these
events.
Events companies in India focus on delivering an unforgettable
experience for their clients. They specialize in offering customized services and creative
solutions for various kinds of occasions, such as corporateevents, private functions,
conferences, trade shows, product launches, gala dinners, award ceremonies, team-building
activities, etc. Most events companies in India have a dedicated team of multi-talented
professionals, including event planners, project managers, production specialists, graphic
designers, audiovisual technicians, caterers, security personnel, transportation
coordinators, and other support staff. In short, events companies in India offer a range
of services to their clients that enable them to create successful events. With the
increasing demand for events in India, these companies are likely to play a crucial role
in the growth of the industry in the future.
Sports Industry
With India becoming a nation of many sports nation with fast
emergence of other disciplines like Football, Badminton, Boxing, Golf, Marathon to name a
few, it is indeed vital for corporates and brands to build a strategy to engage with the
young minds and also encourage them to play sports as an integral part of their lives.
Support for grassroots sports is essential, and the public and private sectors have worked
together to provide opportunities and infrastructure for rising sports talent in India.
In a challenging economic environment, sports will likely still be seen
as an attractive option for investment, with investors endeavoring to take a responsible
and sustainable approach. Corporates are also increasing their involvement in sports
beyond advertising and are participating as franchise owners and/or engaging in grassroot
development programs—thus playing an active role in the development of India as a
sporting nation. Private equity (PE) has taken an increasingly active role in sports over
the past few years with firms establishing funds and new entities being created to invest
solely in sports. They are buying shares of teams, leagues, and broadcast rights.
The Indian sports industry is one of the better performing sectors in
the economy with 14% CAGR, driven by a combination of factors such as increased
investments, government initiatives, and a growing interest in sports among the general
public. Some of the key developments in the Indian sports industry include the
establishment of professional leagues such as the Indian Premier League, Pro Kabaddi
League, Indian Super League, Prime Vollyball League and Ultimate Khokho, which have helped
to popularize these sports and attract investment and creating multiple opportunities. The
Indian government has also launched initiatives such as the Khelo India programme, which
aims to develop grassroots sports and identify talented athletes at a young age. Overall,
the Indian sports industry is poised for continued growth and development, with a focus on
expanding beyond cricket and building a strong sports culture that can support the
development of world-class athletes and teams.
For any education institute to be impactful, it is essential that its
faculty has industry experience and, more importantly, is committed to supporting students
with reaching their full potential. The individuals who have joined our faculty have not
only worked in the sports industry for many years, but many have acted as pioneers in
developing various aspects of the ecosystem. These are all professionals who are able to
share their knowledge, wisdom, insights and anecdotes with the students while, at the same
time, transmitting some of the soft skills that have supported their professional success
and growth.
The Indian government has turned its attention to developing the sports
sector as a strategy to create jobs, generate revenue, and attract investment into the
country, aside from nurturing sports talent & finding solutions to convert challenges
into opportunities
Company Overview
It is encouraging to see the revival of the sports and entertainment
sectors post Covid. From the scenario, we can say that M&E industry is looking good.
The Event industry is also gaining ground post covid and is almost back to pre-covid
levels. Looking forward to more sports and other events happening and enhancing career
prospects. The path that the company is working on is aligning with other education
institutions and colleges to expand offerings as a collaborative approach.
Your Companys vision is to be ‘A Leading Global Education
Company. Ironwood has been a leading presence in the global education industry for
over a two decade. Ironwood is an umbrella brand for various professional training
verticals across India and Dubai. The Company is offering vocational training in the of
event management, advertising, wedding planning, and sports management. The Company will
continue its pursuit to expand opportunities in association with other
universities/educational institutes. Your Company believe in the power of collaborations
& strive to give our students a platform to go beyond & explore various learning
horizons.
Opportunities and Threats
Opportunities
The future of vocational education in India looks promising, with a
greater focus on emerging technologies, digital learning, industry-academia collaboration,
and entrepreneurship. The governments initiatives such as the Skill India Mission, along
with the efforts of private sector players, are likely to create a robust and dynamic
vocational education system that would meet the needs of learners, industry, and the
economy.
Being a largely under-penetrated field, the vocational training
industry in
India holds enormous opportunities for growth. While the entry barriers
are likely to stay high for new companies in the near future, those that have already
established themselves are likely to see growth gradually. In areas of services, expertise
and knowledge, your Company with its team of professionals is expected to tap the
potential opportunities for growth. The Company will look at presence both domestic and
internationally as in locations, collaboration with leading universities/education
institutions to deliver courses to their existing students and resource/research
opportunities globally.
The Company plans to continue to expand its brand, scalability and
distribution networks through its association in India and abroad. The Company will
continue to tap opportunity to grow its business both organically and inorganically via
strategic acquisitions in India and abroad. The growing acceptance of vocational
institutes and the focus on the media, entertainment and sports sector as a serious career
option in the minds of parents, key decision makers, students alike – will ensure
that courses presented by the Company are readily accepted in the market. Threats COVID-19
created a plethora of problems but also brought new opportunities and opened doors to
innovation in the Education Sector. Innovative approaches and distance learning solutions
were thought of and implemented like never before. Online learning platforms and blended
learning models are expected to become more common in vocational education.
The expansion of Vocational education in India faces several challenges
that restrict its growth and development. One of the related challenges is to attract
talented people to work with the Company and also retaining the pool of this talent. The
management continuously reviews its talent pool for upgradation. The Company is focused on
ensuring and has implemented employee friendly policies to retain talent.
The Company operates in a highly competitive environment that is
subject to innovations, changes and varying levels of resources available to each player.
This can be a matter of concern if the company does not adapt to the changing face of the
Industry. The company has been keeping itself abreast with the latest changes in the
industry to implement the same in its operation to keep itself ahead of competition. The
faculty skills need to be upgraded and present curriculum is regularly updated as per the
current needs of the industry.
The key management is responsible for the day-to-day operations and
they are indeed the key force in driving the business growth because of their experience
and knowledge of industry. Having a motivated team will help accelerate the business.
Segment-wise Performance
The Company operates in one primary segment, through its subsidiary it
operates in geographical segment they are India and International.
Subsidiaries / Joint Ventures
EMDI (Overseas) FZ LLC is a wholly owned subsidiary of the Company, it
caters to professional training including teaching graduates, undergraduate and working
professionals in the field of Event Management & Innovative
Marketing, Wedding Planning, Digital Marketing, Radio Jockey &
Programming, and Sports Management, in the form of class room training and workshops.
The Company is one of the partners in Sporting Minds Academy LLP,
Chennai.
Outlook
In line with the expectation from students and industry at large, in
India the Company is focusing on association with colleges/institutions to offer
government recognized degree programs at undergraduate and post graduate levels in sports,
media, entertainment and related areas. This model has received good response.
Risks
Risk is an integral part of corporate world today for any going concern
and our endeavor has been to maximize stakeholder value by achieving an appropriate
balance between risks and return. Since risk taking is intrinsic to business growth, all
business entities face risks either from external environment or from internal operations.
To mitigate the same, the Company has constantly endeavored to broaden
the charter of risk management to include opportunities as well as threats. It uses an
integrated risk management approach, based on a number of techniques to cover the full
range of risks in the framework.
Apart from the regular operational & business risks, the other
major risks faced by the Company are: a) Business Concentration Earlier the Companys
business was largely concentrated in vocational training primarily in few verticals of
media, entertainment and sports for post graduate courses.
Vocational education in India is likely to witness greater
collaboration between the industry and academia, which would ensure that vocational
education programs are aligned with the needs of the industry and provide learners with
practical skills and knowledge. To mitigate this risk, the Company also takes measures to
keep up the requisite academic standards. The Company has associated with universities to
broaden its offerings to include Bachelors programs. b) Core Faculty The faculty
plays a pivotal role in the system of education. Further majority of our faculty members
are visiting faculties from various industries and are in other occupation besides
teaching. Failure to attract / retain experienced faculty members who have the necessary
domain expertise to effectively deliver the course may affect the pace of our growth and
teaching quality across all our learning centres in different locations.
To overcome, the Company has been able to tap professionals from
relevant industry. All faculty members lecture on subjects of their expertise, resulting
in experience sharing, interaction and networking of these professional with the students.
The faculty members contribute to our overall performance by providing good quality
training to the students and thus enable us to maintain our brand and reputation.
c) Entry of other players
The lack of an entry barrier with respect to a private setup offering
similar certificate courses is a threat. Centres offering similar courses are the first
level of competition, however competition which enters the market, may offer a poor
product and then is forced to shut down later on is even worse as it spoils the education
market and trust towards the other credible players.
The Company can reduce their chance of survival by providing quality
education as per academic standards to the students. At the end of the period, they go out
of business thus they will fail in the business. d) Enrollment of students The
Companys ability to attract students to enroll for courses depend on several factors
such as to offer new courses, enhancing existing courses in response to changing industry
needs, students demands, expanding our geographic reach, effectively marketing
courses to a broader base of prospective students and responding to competitive pressures.
To overcome, the Company has been using digital channels, create social
media pages, optimize website for search engines, and market online content. Student
testimonials, successful case studies, awards, recognition are some of the examples of
trust elements that add credibility to the brand. Showing prospects the success of your
alumni can do a lot in convincing applicants that institute is the right one for them.
Social Responsibility
Your Company believes in being a responsible part of the community and
contributing back to it in every possible manner. SWAT (Students Working Against Tobacco)
is a youth initiative initiated and pursued by students against tobacco, operating at an
awareness platform. The objective of SWAT is to urge Indias youth to stay away from
the ravages and dangers of smoking. The purpose is to persuade young people to never try
smoking and to encourage those who are trying to get rid of the habit of smoking. The SWAT
team has taken various initiatives in the form of events to spread this message over the
years by organizing College Festival Activities and other means.
Internal Control Systems
The Company has appointed a firm of Chartered Accountants as Internal
Auditors to review and report on internal controls system. The report
of the Internal Auditors is reviewed by the Audit Committee. The Audit Committee
formulates a detailed plan to the Internal Auditors for the year and the same is reviewed
at the Audit Committee meetings. The Internal Auditors submit their recommendations to the
Audit Committee and provides road map for future action.
The Company recognizes the importance of internal controls and has
suitable internal control systems and processes in place for the smooth conduct of the
business. Companys internal controls are commensurate with its size and nature of
its business. The management continuously reviews the internal control systems and
procedures to ensure orderly and efficient conduct of business. The management duly
considers and takes appropriate action on the recommendations made by the statutory
auditors and independent Audit Committee.
Discussion on Financial Performance with respect to Operational
Performance
The financial performance of the year ending March 31, 2023 reflects
the steps have been initiated to become a more focused company, moving into areas where we
have huge opportunities and greater long-term potential. The authorized share capital of
the Company is Rs. 16,00,00,000/- divided into 1,60,00,000 equity shares of Rs. 10/- each.
The paid-up share capital of the Company is Rs. 7,90,77,150/- divided into 79,07,715
equity shares of par value of Rs. 10/- each.
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