The year 2019-20 has witnessed rapid changes in the knowledge landscape changes at alllevels including regulatory economic technology and changes in all divisions of theeducation including test-prep higher education and school education. Indeed the quicklychanging landscape and ecosystem offers a range of opportunities. The requirement is to beflexible innovative and have a visionary approach.
During FY2019-20 Career Point continued its business operations with constant focus ondelivering quality education to the learners. The company launched Career Point Version2.0 initiative for both offline and online Test Prep business to make education deliverymore effective flexible affordable and relevant.
We launched SmartPrep methodology which is unique to Career Point's coaching system andfcus on life skill development along with academics to realize the best potential of astudent for a successful career. The new online initiative not only provided operatingefficiency but also an opportunity to grow multifold in several sub-verticals of the TestPrep universe. In addition to reforms in test-prep division Career Point's growth wascontinually fuelled by Formal education division that is highly sustainable and annuitydriven.
Let me share an overview onrecent 3 key business updates related to Career Point'sbusiness operations:
1. Technological Initiatives
2. Impact of Covid-19
3. New Education Policy 1. Technological Initiatives
The online business of the Career Point is high-growth early stage business Thoughthe online business of the Career Point is high-growth early stage business whichprovide huge growth opportunity to the company. As per one of the research report by KPMGIndia's online education is set to reach at close to USD 2bn with around 10 mn users. Inthis Test-Prep would be the fastest growing category with a growth rate of 64%. Let mealso state the fact that these numbers were pre-Covid assumptions. Not to be surprisedthe numbers should be much higher in the post-Covid scenario. The important point for usas stakeholders at Career Point is that our offering has all ingredients to achievesuccess in the online education. We also strongly recognize the social value and themarket impact of e-Learning that is evident in our ongoing explorations and development inthis area.
We are unique in our online education offering because our online education deliverymodel is built on offline delivery modes with added features of due to use of technology.We are in the opinion that online education is not a new product; we consider it animproved tool for better learning experience to our students.
Career Point follows a blended tutor engagement model of on-roll as well as partneredfaculties. This model not only offers required operational and financial efficiency to thedivision but also facilitates accelerated category expansion with best available facultyresources in each course.
We are different in our approach as our KPIs for this segment is not limited to thenumber of users. Our KPIs for this business also include the learning outcome applicationof the knowledge and sustainability etc. And the sustainability is not just about growthor profitability but also the flexibility to add new courses curriculum languages etc.
Being an education company in existence for almost 3 decades and an establishedsuccessful brand we do get our moats in this field. As the education is naturally anoperation intensive industry. Our know-how and expertise on operational perspective isbetter than other people. This we have already proven while venturing from test-prep toschools universities or vocational education. Within test-prep; from branch operations tofranchisee network school integrated programs and now on the online education space.
We are in investment phase to innovate our products technology and operationalefficiency while keeping a full attention to other necessary details. We will continuouslyspend more efforts to further pursue a superior online business model that brings thestudents lasting successful learning experiences and the positive outcomes for the Companyin longer run.
2. Impact of Covid-19
The Covid-19 outbreak is a human tragedy and unlike anything experienced by humankindin the recent past. The outbreak has growing impacts on the global economy which arelikely to be continued directly or indirectly in the coming future. The education sectorhas also been dramatically transformed as a result of the Covid19. Schools toUniversities Career Point to Harvard all educational institutions were closed all overthe world. Exams including majors like JEE NEET SATs GRE GMAT were suspended withabsolute uncertainty about the future.
No doubt that the Covid-19 pandemic unleashed the biggest calamity that disruptedexisting set-up of the education sector. However as they say every cloud has a silverlining. The pandemic has opened the doors to take advantage of the multiple opportunitiesstill untapped in the sector. The players who are open flexible and attentive used thisas an opportune time for their organizational development.
Being among the pioneers Career Point redefined the conventional coaching and tappedthe benefits that will continue even after the Corona crisis. Though the immediate impactappears to be negative on some of the business units mainly due to closure of physicalstudy centers/campusus however the management is in opinion that the situation hasopened the doors to take advantage of the multiple opportunities still untapped in theeducation sector.
Company's most ambitious elearning project - eCareerPoint App - was launched in midstof the crisis. Very quickly Career Point achieved its top position in online
coaching among other Kota coaching institutes. A division- wise description of Covid19impact along with strategies to tap potential new opportunities was chartered. The resultof this foresight not only benefits to Career Point but also to students and society atlarge.
3. National Education Policy:
The new education policy is announced on 29th July 2020. It's thrust upon experientiallearning and making education more flexible is likely to result in holistic development ofthe students. A lot of efforts on making education more inclusive and equitable are reallyappreciable. Addition of contemporary subjects was need of the hour to make education morerelevant.
The focus on Technology will certainly play an important role in the improvement ofeducational processes and outcomes. It should not only enhance learning assessmentplanning administration but also be helpful in reaching quality education tounderprivileged students or children at remote locations.
A common entrance examination is a great initiative and will help all the studentspreparing for different competitive examinations. Integration of vocational education fromthe school level will improve the employability of pass-out students. Teachers trainingand their continuous professional development would not only advance the quality inteaching but also enhance their level of motivation.
Single regulator in higher education is a welcome step for the industry as a whole.Invitation to foreign universities will improve overall service delivery and partnershipopportunities for the existing Indian education players. From Career Point's perspectiveas the company has presence across the education value chain from KG to PhD we believethese reforms at all levels would be very supportive to our business operations. We areexcited on its gradual implementation and looking forward for the positive outcomes.
With these updates I would like to share my optimism supported by our greater effortsin positioning company for the next leg of growth. Thank you all for your consistentsupport and trust in the brand 'Career Point'
Let me also take this opportunity to wish all the stakeholders for a healthy andprosperous future.
With best wishes