Wednesday, September 22, 2010

>CAREER POINT INFOSYSTEMS: IPO NOTE, Company Background, Business Model & Key Strengths (ADITYA BIRLA MONEY LIMITED)

Career Point Infosystems Ltd was incorporated as a public company on March 2000 by Pramod Maheswari, who has been in tutoring for competitive entrance exams since 1993 along with other promoters Mr. Om Prakash Maheswari and Mr. Nawal Kishore Maheswari. In FY02, the company started its operations via franchisee centres and from April 2006 onwards, it started to provide tutoring via company operated training centres as well.

CPIL is one of the leading tutorial service providers to high school and post high school students for various competitive entrance exams including All India Engineering Entrance Examination (AIEEE), Indian Institute of Technology – Joint Entrance Examination (IITJEE), All India Pre-Medical Test (AIPMT), Pre-Dental Test (PDT), etc., The company provides these services through four delivery platforms - company & franchisee operated centres, distance learning, synchro school programme and knowledge lab.

■ Under company operated centres, the course fees are based upon the selection of course, duration and geographical location of the centres. Basically, the company gets fees in lumpsum and/or on installments basis depending upon the course opted by the student. On an average, the company charges `31,000/ student/course.

■ In franchisee centres, the company enters into a 3-4 years agreement with franchisees and the company receives upfront fee and subsequently a certain percentage of the gross fees earned from the enrollment of students. Going forward, the franchisee centres are expected to come down as the company is likely to concentrate more on its own centres. As of 31st July, it has presence through 33 training centres, of which, 17 are company owned and the rest 16 are franchisees centres, spread across 13 states. Recently, CPIL forayed into formal education space through Education Consultancy and Management Services (ECAMS) segment. Through this entry, the company will serve K- 12 and higher education segment for private & government schools, colleges and universities. Under this ECAMS, the company will provide necessary management services which includes, laying strategic plans, HR management services, administrative services, advisory services and IT related services.

Key Strengths
Qualified and Experienced faculty team – Currently, the company has a team of 231 faculty members, in which, most of them are graduates from Indian Institute of Technology (IIT), National Institute of Technology (NIT) and other colleges in India. So the faculty members are well equipped with subject knowledge to guide and tutor students. Apart from this, the company has an ongoing in-house faculty training facility, where they undergo training on coaching skills & methodologies and subject matter up gradation in relevant courses

Brand power and geographical presence – CPIL enjoys the strong brand recognition as the established tutorial player in competitive exams space for engineering and medical stream. Presently, it has presence in 13 states (including franchisee centres) which provides access to major markets in northern and eastern India. Its Kota centre attracts students even from overseas countries like Singapore and Middle East, which reflects the brand image.

To read the full report: CAREER POINT INFOSYSTEMS