EA Logo Elements Akademia An IIM Alumni Venture
  B-School Management
   
  The Idea: India's First 'End-To-End Management of a B-School' Company
  We partner with under-performing B-Schools and own the entire value chain: marketing, admissions, academics, employability, placements, and operations; with full operational control. We commit to strict quality measures on delivery, student satisfaction, placements and admissions and take the b-school to the next level. We have a long term (minimum 5 year locked-in) co-branding and revenue sharing arrangementIIM and industry network, IT backbone and standardized content/delivery ensure quality with scalability
 

‘Management of a school’ is a successful and proven idea, and we have the first mover advantage in our chosen niche, B-school. In US, EMO (Education Management Organization) is already a billion dollar industry, with more than 800 for-profit firms, many of whom have revenues between US$300-500mn. We are trying to reapply international best practices. We have already demonstrated results in a full cycle in a pilot set-up and now want to scale up. 

   
  Background: B-School Space Is Consolidating, and Only Quality Players Will Survive
  India has 3000 B-Schools, but quality dips significantly beyond the Top 50. Promoters (many of who are from non-academic, non-corporate backgrounds, given the traditional license raj in education… some who are professional may not be able to give the B-school ‘execution’ the 100% attention it deserves) have invested good money (average Rs. 15 cr), but face the following problems:
 
  • Inability to attract students (more than 60% of colleges are complaining of significant under utilization of capacity. Colleges with a capacity of 120 seats are able to get only 50; colleges with 60 seats are able to get 12!)  
  • Unemployable Students with poor communication skills and no industry interaction
  • Faculty with less/no corporate experience and use of traditional pedagogy
  • Course curriculum focused on theoretical knowledge rather than practical exposure
  • Students not happy with the training quality, very poor word-of-mouth publicity
  • Poor placements (30-50% in-campus, mostly at Rs. 12-18,000 per month salary) 
  Interestingly, while most B-Schools are facing these challenges, some new age B-Schools (operated with private sector efficiency – top end teaching, student and learning orientation, and industry networks leading to placements) are doing extremely well. Colleges like Jaipuria, Sadhna Centre, Great Lakes, SOIL etc. have been able to generate Rs. 10-15 cr revenues in 3-5 years (with 50%+ gross margins) per campus from PGDM/PGP alone.
  Net, there is proof that as consolidation and liberalization slowly enters the Bschool space, quality players would do well, while those unable to satisfy student needs will fade off. Some visionary promoters, who can see this future trend, are eager to partner with players like us who can assure quality delivery.
   
  Why Elements Akademia? We Offer a Quality Guarantee!
 
  • 50% teaching by IIM Alumni/Faculty.
  • Guaranteed student feedback of 8 or more out of 10, taken confidentially every fortnight.
  • Course content bench-marked with top bschools, to include theory and practise (e.g. live projects).
  • Guaranteed placements (on a stamp paper) for Rs. 20-50,000 per month salary for at least 90% of students.
  • 2 hours a day 'employability' intervention based on '9 Missing Elements in an MBA', adding to 50% additional teaching.
  • Private sector efficiency: Promoter gets key metrics reviewed every month, and provides inputs as needed.
  • Significant increase in admissions behind better product (IIM delivery, guaranteed placements), better counselling and student referrals.
 

We have provided employability intervention and placement support to more than 20 B-Schools in 5 cities, and have helped our partner colleges achieve an 80%+ placement rate (before us it was typically half of this). We have hiring relationships with 42 companies (Cadbury, Orient-craft, Axis Bank, Reckitt Benckiser, India Bulls, Mobile Store, Club Mahindra Holidays being some marquee names), and relationship with 192 IIM Alumni who regularly offer guest lectures in our partner colleges.

 

We have experience managing 3 colleges and have now completed an entire cycle of the full value chain – marketing, admissions, academics, industry interface, employability development, placements and administration. In each case, there has been a visible improvement after our engagement:

 
  • Refurbished syllabus and content, significantly reducing theoretical portion
  • Student Satisfaction at all time high. 80%+ students volunteer to work as brand ambassadors
  • 30-50% teaching by IIM Alumni and Faculty, with teaching feedback of 9+ out of 10
  • Placement rate up from 53% to 85%, average salary up from Rs. 15k to Rs. 20k per month
  • Admissions improved from 22 to 44 in 6 months, counselling conversion doubled 
 

Our content is highly standardized (mostly developed with the help of hiring companies like Kotak, L’Oreal, Genpact etc) with minute-by-minute guidance for faculty. We leverage IT tools to ensure consistent delivery. We have a 3000 page stack – which has detailed know-how, processes, content, assessments and our learnings.

   
  Commercials
  We charge 30-50% of revenues, depending on deliverables agreed (30% if only academics and placements, 50% if admissions and administration is also our responsibility). All costs (director, faculty, marketing spend, administration etc.) is paid from our share. We charge a transparent 10% service-fee (10% of revenues) but that is also paid from the 50% share for operations. The remaining (i.e. 50%) is with the promoter to pay for infrastructure, financing and profits. Net, all costs of running the college are managed within 50% (including our service fee).
 

Most importantly, Elements will be a cash-less resource. We will make sure that whatever is paid to us, at least that much is recovered by way of higher admissions from our side. For example, if our annual share (10% of revenues) is Rs. 24 lacs and average fee is Rs. 4 lacs per year, we will guarantee at least 6 new admissions every year from our side. Then the promoter does not have to pay for us from his pocket, and all our help in operations (better teaching and placements) is just added gravy!

 
 
   
 
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