Jump on to the brandwagon of vocational education industry as it assures 100% job guarantee and it can be a right biz substitute for you as it certainly gives your competitors a run for their money….
Government has set a target of preparing 500 mn skilled workers by 2022, as around 75-80 mn jobs will be created over the next 5 years and 75% of them will require vocational training.
The current size of vocational education is estimated at USD 1.4 billion and is expected to grow to USD 5.8 billion, a compound annual growth rate (CAGR) of 15.3%. It is estimated that 90 million jobs will be created over the next 5 years, of which almost half (45 million) are expected in the services sector.
Are you ambitious and looking to pick right vocation that falls in your investment bracket? Your wait for a low-cost yet highly worthwhile opportunity is all here that won’t even burn a hole in your pockets. The vocational training industry has evolved from being a merely knowledge based to turn into more skills’ oriented. Vocation education and training industry aims to prepare the student’s skills and make them industry ready to fulfill the demand of capable professionals that every industry requires. Besides that, this industry also assures 100% job guarantee to young aspirants.
What is really hampering the service industry’s growth is mainly the shortage of skilled manpower and talent crisis. So, in order to recruit right manpower on board, government bodies and private or corporate players are inking deals with vocational training institutes to make use of right talent for delivering the services efficiently. The motivating factors that have doubled the industry’s demand is the rising disposable middle class income, dearth of manpower across varied sub- sectors covering IT & CAD training, fashion designing, interior designing, hospitality, BPO training, beauty and wellness training, aviation and animation. This in turn makes a profitable opportunity for plethora of brands to rake in the money quickly by picking the franchise route for expansion. So, looking at the positive side, it is assured that vocational training industry has a key role in catapulting the country’s economic growth engine by providing skilled workforce to accomplish any organizations’ goals. Commenting on the factors that have stimulated the industry’s potential in the last few years, Rajendra S Pawar, Chairman, NIIT Group, “With the economy becoming more specialised and the demand for better levels of specific skills increasing, vocational training has gained greater significance. The country has a huge shortage of skilled people and this talent deficit is already hampering the growth prospects of manufacturing and services sectors. At NIIT, our focus is on industry endorsed syllabus, quality of training, qualified trainers, better infrastructure and use of latest technology. These play a very crucial role in vocational education. ”
Pick franchise for more returns
Many big shots in industry are leaving no stone unturned to make most of this lucrative opportunity by offering various business models to the wannabe franchisees. NIIT Group; Jetking, India’s foremost computer hardware and networking Institute; Frameboxx, animation and visual effects institute; CADD Centre Training Services Pvt Ltd, Laurus Edutech, Maya In-studio training (MIST), an initiative of Maya Digital Studio; and Aptech Ltd that operates various brands like (ACE, Aptech Networking, Arena, MAAC, Aptech English and Aptech Aviation); Orion Calltech; Thomas Cook Centre of Learning, Kuoni Academy are few of the organised brands that are quickly thriving via franchise mode. Shrutidhar Paliwal, Vice President and Head –Corporate Communications and Media Relations, Aptech Ltd, says: “Aptech has a strong brand image and has trained over 6.8 million students over 40 countries in its 27 years old history. The brand strives for contemporary education, impeccable execution and delivery. The franchisee business is available across IT, hardware and networking, aviation & hospitality management, animation and multimedia, English language training.” On the other side, N.Subramanian, V P, CADD Centre Training Services Pvt. Ltd, says: “All the franchisees who have been with CADD Centre for more than three years are profitable. Ever since embracing the franchising model, CADD Centre has been expanding its network almost only through franchisees. CADD Centre believes that a local person is always the best to deliver the services exactly the way an end customer would want. That is one of the reasons why it has taken the franchise route for expansion.”
On the other side, Naveen Gupta - Executive Director and CEO, Frameboxx Animation and Visual Effects is very particular about doing franchisee analysis before hiring them on board. He says: “We do thorough research and analysis before offering a franchise opportunity to a prospective franchisee. An important part of this research is justifying the value proposition for all stakeholders namely students, industry and the prospective business partner. We are mostly present in major cities and state capitals. This is owing to the fact that we do not dilute our product offering in any way. We therefore restrict ourselves to cities where we can provide the best of services and quality.”
Whereas, Avinash Bharwani, VP, Jetking, informs: “A franchise must have a 1000 to 1200 sq. ft carpet area in a good catchment area. With more than 40 + courses along with our flagship courses JCHNP & MNA, franchisees can train students with a non-technical or technical background that gives them a huge market to train students for our programs. However, it is important that the franchisee is not only willing to invest but also is willing to run and manage the centre which gives him a excellent good return on his investment and breakeven as early as one and a half year.”
On offering franchise opportunity, Vardhman Jain, Founder Director, Laurus Edutech, informs: “The prospective franchisee vocational training centres need to have a localized flavor and choice of skills to be trained. Therefore we bring into play, our expertise in training students and trainers, assessments, technology and a strong brand when the franchisees join the Laurus Edutech’s Skill India Partner Plan.”
Aruna Kumar, who heads MIST (Maya in Studio Training), notifies: “We are currently offering franchise for Maya’s in-training Studio – MIST which is a first of its kind initiative to provide an advanced training module for the young professionals, with an opportunity to work on live projects during the formative years of their careers. Our MIST model is open and tailored depending upon the investor’s capacity to invest in the infrastructure and expansion capacity.”
Growth to be tapped!
Cadd centre currently operates 390 centres. The brand aims to open 100 franchise centres by end of this year. On informing what’s ahead for the industry, N. Subramanian adds: “This industry is growing and will grow at a very rapid pace. The requirements are only increasing. The challenge is to understand the requirement, create the right curriculum, execute the training properly and create the right trained manpower. Also should have the ability to execute large scale training.” Frameboxx has 35 centres across country. Going ahead, the brand has plans to add 8-10 outlets pan India. Jetking, on other side, has 100+ franchise centres and is planning to make it 200 in the next few years across 640 districts in India and internationally.
Moving further at a rapid growth rate, NIIT Group has around 1,000 plus centers including overseas centers and in the next 5 years, they hope to increase centers by 30 % both at the national and international level.
Experts feel that government and private players have realized the role of skill development industry in India as it facilitates the growth of skilled manpower and in turn augment the industry’s economic growth. The industry is now becoming more organized as brands focus on delivering quality education by adopting new technologies to enhance the aspirants’ skills.
Things to ponder over before investing in vocational education franchise:
Passion for business
Willingness to learn
Passion for technology
Local Market Knowledge
Scalability and sustainability