I was reading about the Monitor groups report on emerging markets emerging, so we know know that India have have grown leaps and bound over the last twenty years. The growth is mainly constrained to upper and middle class. What they do with the extra money majority of the Indians invest it in the real estate or invest gold or save it.
Now another interesting thing about it how much money they invest in for private education and quality water. Given below are from the report.
T.I.M.E. is a successful operator of coaching classes in India, with 175 centers that help aspiring middle-class applicants with entrance exams to professional schools,and annual revenue of $30 million.A market-based-solution business model aimed at poor people would need to manage nearly 15 times the number of centers — almost 2,500 budget private schools in lower-income segments — to generate the same annual revenue.
Bisleri, India’s leading manufacturer and marketer of bottled water, currently operates 50 plants generating over $70 million of revenue.21 To generate the same revenues that Bisleri produces with 50 plants,a market-based enterprise catering to poor people would need to operate more than 17,500 village water plants.child would require 20-25 percent of income for an average poor family. As such,what low-income segments can afford is mostly of the poorest quality — and sometimes even health-endangering. Yet despite being exploited in traditional markets, low-income groups are willing to pay dearly for what they most value, spending surprisingly high shares of scant income on private health and education services.
Bisleri and TIME are just one of the many among players in that sector.So these are the huge gaps present in education and health sector which is been exploited by the private sector. We can't blame the private sector for this but hope against hope that education reforms bill is passed and access to water is improved by public private partnership.
Now another interesting thing about it how much money they invest in for private education and quality water. Given below are from the report.
T.I.M.E. is a successful operator of coaching classes in India, with 175 centers that help aspiring middle-class applicants with entrance exams to professional schools,and annual revenue of $30 million.A market-based-solution business model aimed at poor people would need to manage nearly 15 times the number of centers — almost 2,500 budget private schools in lower-income segments — to generate the same annual revenue.
Bisleri, India’s leading manufacturer and marketer of bottled water, currently operates 50 plants generating over $70 million of revenue.21 To generate the same revenues that Bisleri produces with 50 plants,a market-based enterprise catering to poor people would need to operate more than 17,500 village water plants.child would require 20-25 percent of income for an average poor family. As such,what low-income segments can afford is mostly of the poorest quality — and sometimes even health-endangering. Yet despite being exploited in traditional markets, low-income groups are willing to pay dearly for what they most value, spending surprisingly high shares of scant income on private health and education services.
Bisleri and TIME are just one of the many among players in that sector.So these are the huge gaps present in education and health sector which is been exploited by the private sector. We can't blame the private sector for this but hope against hope that education reforms bill is passed and access to water is improved by public private partnership.
No comments:
Post a Comment