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We are present across the formal education value chain, including in pre-schools, K 12 schools, higher educational institutions and a university. The K 12 schools to which we provide educational services are affiliated to major Indian educational boards, and the MPGI Colleges and the Pratap University provide students with a vast range of higher education course offerings. We believe that our exposure in all of the formal education industry segments enables us to address the demand for quality education from the kindergarten to the university level. Further, our end-to-end services model enables us to realise incremental gains across the value chain by providing us with an identified market of institutions and students to service. Our footprint across the value chain also affords us the opportunity to upscale our operations in a timely manner in any of the segments where we operate to address increased demand or changing industry trends.
Further, our diversified portfolio enables us to offset the risk of downturns in the formal education industry across any of the pre-school, K 12, and higher education segments, and in the event of downturn in any of these segments, we may rely on revenue streams from other segments to maintain our profitability. Additionally, in our higher education business, given that we services students and institutions that offer a wide range of courses in technical, scientific, managerial, arts and humanities based subjects, we believe that we are adequately insulated from the risks of decrease in demand for obtaining higher education in any of these subjects.
Our presence across the value chain also increases our understanding of the formal education industry and enables us suitably consolidate our position, adapt to any changes, and capitalise on growth opportunities provided by this market from time to time. The GoI has, over the last few years, announced significant liberalisation measures in the education sector, including, by the promotion of public-private-participation (“PPP”) models for operation of educational institutions, including through setting up of new ‘Model Schools’, multi-disciplinary and research based higher education institutions and livelihood skills training initiatives, as well as transformation of existing public educational institutions into PPP modelled institutions. (Source: Planning Commission, 12th Five Year Plan 2012 – 2017) We believe our presence in all tiers of the value chain make us uniquely poised to capitalise on such liberalising measures, expand our current customer base and increase our repertoire of services.
We believe that our portfolio is diverse, incorporates significant value addition, and encompasses almost the entire spectrum of services required for imparting quality formal education. Our services cater to the diverse and manifold needs of educational operators, ranging from development and structuring of curriculums, sourcing of students for admissions, brand management and advertising which focus on building and consolidating the repute of the underlying institutions, business auxiliary support for the management and functioning of the underlying institutions, infrastructure development services for creation and maintenance of high end laboratories, digitalized content modules and other physical and electronic infrastructure at educational institutions and human resources, training and placement services that assist recruitment and periodic training of faculty, as well as recruitment and placement of students. Our business model has emphasized, since inception, on being an end-to-end services provider in the formal education space and we believe that over the years, the development of core competencies in providing a wide array of services has brought us closer to this objective.
Further, we believe that we add significant value to the quality of the education imparted by operators of the educational institutions serviced by us. Through our curriculum development initiatives, we attempt to create course frameworks and develop content that are focussed on contemporary and innovative teaching methods and evaluation methodology which are designed to appeal to students and faculty alike. For instance, our curriculums for various technical courses at Pratap University incorporate a “flexi-credit system”, whereby course credits are accorded to students who have developed dynamic projects or undertaken other innovative initiatives outside of the regular course structure, in lieu of undergoing the formal course process. We believe that such initiatives significantly enhance the value of our service offerings.
Additionally, we attempt, on an on-going basis, to fine tune the content and delivery of our curriculum developed for higher educational institutions in accordance with on-going industry trends associated with courses taught in such institutions. For instance, we design some of the elective subjects in the [final] years of graduate/ post-graduate engineering courses for Pratap University [in consultation] with key recruiters, with some of the course content being delivered by representatives of such recruiters. Such initiatives ensure that students in the institutions serviced by us are better equipped with practical industry-based knowledge in these subjects, which, we believe, provides them a competitive edge against their peers in other institutions not only in graduate recruitment markets, but also in their pursuance of post-graduate and doctoral level degrees. Furthermore, such initiatives entrench our relationship with recruiters, which we can leverage to source recruitment opportunities across both our higher education and livelihood skills segments.
As on December 31, 2014, we operate three pre-schools and provide educational services to four schools, ten colleges and the Pratap University under the MPGI brand. Over the last few years, we, and the operators of the MPGI institutions have invested a considerable amount of our resources in building, promoting and developing the MPGI brand through numerous initiatives, including advertising and marketing campaigns on physical, electronic and print media platforms and through the organisation, participation and sponsorship of various events, conferences and seminars both at the MPGI institutions and outside. Our brand has been showcased in various newspapers, Indian television channels, social networking platforms and in the outdoor media through hoardings, pole kiosks and glow-signs. Furthermore, other initiatives such as organisation of a [televised] awards ceremony in association with a prominent Indian media house, organisation of celebrity nights at the MPGI institutions, sponsorship of various education fairs and scholarship events and association of the MPGI institutions with various corporate brands, have, we believe, established MPGI as a leading and well recognised brand associated with wholesome and quality education across the formal education spectrum.
We believe our brand has benefited from our proven track record of delivering quality education services across the value chain, which has helped in increasing the student base which we service from [6,024] students as on December 31, 2011 to [10,545] students as on December 31, 2014. Going forward, we believe that awareness of the MPGI brand will aid in progressively increasing enrolments for the institutions that we provide services to. Additionally, the K 12 schools and higher educational institutions we service have been operating for over 15 years, and we believe the association of our brand with such long-standing and established institutions augments its goodwill on a continuing basis. We further believe that we can leverage the recall of our MPGI brand in order to diversify our educational service offerings, consolidate and expand our position in the skills development markets, and reach out to a wider spectrum of educational operators to whom we can provide quality educational services.
We provide educational services on an exclusive basis in terms of long-term master service agreements with each of the three societies that operate the MPGI branded institutions. The terms of such master service arrangements range from 15-20 years, and are subject to renewal after expiry. We believe that our exclusive relationship with these societies provide us with a unique competitive advantage over other players in the formal education services space.
The operators of the MPGI branded institutions, and, in particular, MPEC, have over two decades of experience in running and management of educational institutions. We believe that these societies have established themselves as [quality] education players, and the institutes operated by them are professionally managed, maintain high education content and delivery standards and are well reputed in the academic community. Our exclusive association with these institutions affords us the opportunity not only to increase our revenues and market share through the provision of a diverse array of services to the exclusion of our competitors, but also to consolidate our brand and business credibility in the formal education space, which we can leverage to implement our growth strategies.
The MPGI institutions have well qualified and experienced faculty on their rolls which, we believe, further enhance their quality. As on December 31, 2014, [all] of the faculty members at the MPGI institutions are graduates/ post-graduates in various subjects and in particular, engineering and science from various Indian Institutes of Technology and National Institutes of Technology (erstwhile Regional Engineering Colleges). Further, we actively source retired professors from the Indian Institute of Technology, Kanpur, and other institutions of excellence for teaching at the MPGI institutions.
A significant number of the MPGI institutions are located in Kanpur and Jaipur, which, we believe, are perceived as being geographically, economically and socially conducive for quality education. Our association with these institutions provides us the opportunity to service increasing numbers of students every year. This enables us not only to grow organically, but also to expand our course and curricula offerings to cater to diverse and increasing student needs.
Additionally, the three MPGI societies are equipped with land reserves and built up infrastructure themselves, thereby affording them the opportunity to expand their campuses, provide additional amenities such as hostels, canteens and gymnasiums to their students, and absorb higher student enrolments. Access to land and infrastructure enables them to set up new educational institutions or expand their existing institutions in a cost-effective manner, thereby providing us the opportunity to periodically expand our service offerings to higher numbers of institutions and students.
Finally, association with the MPGI institutions since incorporation has also increased our network and physical infrastructure in and around the states of Delhi, Rajasthan and Uttar Pradesh through the creation of various regional offices, admission and recruitment offices and information centres. We believe that we can effectively utilise this network to aid our growth strategies in future, including for sourcing increasing student numbers for our existing institutions, servicing livelihood skills contracts that we may be awarded pursuant to our empanelment with MoRD and continuing brand building initiatives.
Our management team is led by Mr. Shailendra Bhadauria, our Promoter and the Chairman and Managing Director, who has been involved in the core and formal education sectors for over 15 years and is the recipient of numerous awards and accolades for his contribution to the industry, including the “Rajiv Gandhi Shiromani Award” from the Governor of Haryana and Rajasthan for distinguished services and the “Jagaran Gems” award from Dainik Jagaran. [Certain/ most] members of our senior management team are graduates from various Indian Institutes of Technology, Indian Institutes of Management and other reputed institutions and have over seven years of average experience in the education industry. We believe our management team led by our Promoters has deep understanding of the formal education industry, which enables us to successfully manage our operations and facilitate our growth.
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