What is the background of Hughes Global Education India Ltd?
Hughes Global Education India Ltd (HGEIL) is a wholly owned subsidiary of Hughes Communication India Ltd (HCIL)- the largest VSAT based satellite services Company in India. HCIL is a company owned as a majority by Hughes Network Systems LLC, Maryland USA and is a part of Echostar Corporation, USA.
What is the vintage of this education business in India?
Hughes started the technology enabled education business in year 2001 with a tie up with IIM Kozhikode. Subsequently Hughes did tie up with major Indian Management & technical institutes like IIM Calcutta, IIM Bangalore, XLRI Jamshedpur, IIM Lucknow, IIT Delhi, IIT Bombay, University of Phoenix USA, Cornell University USA, University of Maryland USA & others. Not all the institutes are currently running the programs.
What is the business Model adopted?
The business & operation model is based on revenue share between three major partners in the business. The institute, the technology & systems provider Hughes & the Classroom provider, the Partners. Each of the partner has specific roles & responsibilities & based on the total revenue paid by the students a fixed percentage is shared among them. The percentage share may vary from Program to Program and institute to institute.
What is the scope of work for Partners?
The Partners are required to provide a classroom infrastructure at a chosen location (chosen jointly by Hughes & partner) in a city & invest in the classroom & telecom/ IT infrastructure, as required to conduct the Programs. This includes procurement of satellite terminals, Internet leased lines, creating seating arrangement with computers, LAN, UPS backups, provide facility for reception, Toilet & break out areas and provide the manpower required for sales & marketing, day to day running of the classes.
What are the class room timings?
Currently most of the programs are for working executives & thus it’s during the evening hours on the week days & full day on weekends. The classroom remains free mostly during the day time.
Can a Partner run alternate non-Hughes programs/ other facilities during the day time?
This is generally not permitted as there could be day time programs that are launched by Hughes. Further, the revenue share percentages are calculated on basis of dedicated classrooms for Hughes business only. The use of shared classroom is permitted with special conditions & a differential revenue share percentage.
What’s the past performance of Hughes in this business?
Since inception, Hughes have had more than 30,000 alumni that have completed various programs on the platform. On an average, about 2000 plus students enrol every year in different programs. Some Flagship programs do enrol more than 250 students at a time.
Does Hughes guarantee any revenue?
Hughes does not guarantee any revenue. A partner need to assess the market opportunity in his city & location & make his own business plan. Generally, the programs are from premium institutes with high brand & demand.
How much does a franchisee earn on per student basis?
Franchisee revenue per student varies due to variation of the Program fee as well as due to variable percentage of revenue share from program to Program. Normally a franchisee earns approx. 3000 Rs per student per month & can be used as an estimate. The actual values may vary.
How many seats should one build in the classroom?
This is dependent on the city & the location. In metros, there are classrooms of 30 seats also. In non-metros, the classroom capacity is typically 5 or 10. For economies of scale considerations, we recommend minimum classroom size of 10
How many students can one expect in a 10-seater classroom?
The best-case scenario we have seen in past in a metro is Factor 0f 6.8 ie 68 students. The average is about 2.5 & worst case may be less than 1. The ideal factor would be 4 ie 40 students at a time is studying in the class for metros & factor of 2.5 for non-metros. You may note that the number of students in a class vary through the year as programs get over & new programs also get launched.
How many classrooms Hughes has today?
This number is a rolling one- as on 1st Dec 2016, the number of classrooms are more than 70, distributed in over 40 plus cities.
Who undertakes the sales & marketing work?
The partner undertakes the sales & marketing work at his city/ location & is entirely responsible & accountable for student enrolment.
What are the main requirements of running the classroom?
The partner need to do complete prospect generation, facilitation & guidance till the student is enrolled. Post enrolment, the classroom responsibilities include
What are the main type of program conducted by Hughes over its classrooms?
Majority of the programs conducted by Hughes are in the management segment for working executives. Not all programs are offered through the classrooms as there are alternate mode of delivery exists like Direct to Desktop, using Internet & also Direct to Corporate, for customized corporate programs. As a rule, the Retail Programs are conducted in the classrooms & also in some programs, Partners are invited to provide the classroom facility at a cost (CORP or INVTN Programs).
Where can I get more details of Hughes education programs?
Please refer website: http://www.HUGHESeducation.com/partners
What is our Delivery Model?
We have a LIVE, Interactive, Synchronised Onsite Classroom Delivery Model with 02-Way A/V communication methodology.
What are the eligibility criteria for becoming a HUGHES Business Partner?
Nothing very specific. However, what is considered for shortlisting a partner depends on the city, location (if an existing location of a Partner) and most importantly his financial capability to make a capital investment of Rs 8-10 lakhs and manage working the requisite working capital requirement, based on expected business ramp up & volume.
Additionally, what is of importance is his past & present connect with the education market, his drive to be in this business and the ability to invest in substantial time & effort to build up the market, whether directly or through hired professionals. Good networking connect with local corporates/ working executives is also important.
A partner’s credibility and capability, in terms of his academic background & success records also are factored.
How does one proceed to be a Partner?
You are required to express your interest in clicking the Partner Enquiry form, which logs your request in our system. Post logging,
Can I do any other business being a HUGHES Business Partner?
For security reasons HUGHES Business Partner must not involve in the same or similar line of business especially in Executive Online interactive Education space. Please connect to our officials for more information and details.
Who are the Target Students for HUGHES Programs?
Primarily working executives. Any Employed or Self-Employed Professional/ Working Executive meeting the (Program specific) eligibility criteria is our direct prospect / lead. There are only a few programs in the student segment & is also not the focus area of the company.
Can a Business Partners have multiple Centres at one City or multi Cities?
YES, one Business Partners can have multiple Centres at one or multiple cities basis on viability, centre requirement and other criteria like neighbouring center location etc.
What would be the Breakeven period and Return on Investment?
Breakeven of the business depends on purely the number of students that can be enrolled. As the discussion with potential partner progresses, we shall be sending you a format (RoI) which will give an idea about the expected revenues & cash flow, based on your own input of number of enrolments in different programs.
Can I pay the Franchisee Start-up Cost in instalments?
As the investment is not substantial, we expect Partners to manage their own finance or through bank.
What is the tenure of the Partner Agreement?
The Partner agreement with HUGHES is currently for three years and can be renewed if the centre fulfils all the criteria, terms and conditions.
Who collects the payments from students?
All Payments are made directly in the name of HUGHES / or the Institute (may vary from Program to Program), by the student. The Business Partner’s role is to counsel the students to pay on time and make them aware of the Payment process.
How does a Business Partner get paid?
HUGHES releases the payments to the Business Partners on Monthly on accrual & collection basis from the Students / Institutes. Please connect with our Franchisee Sales Manager for more information and details.
What are the Infrastructure requirements to become a HUGHES Business Partner?
Infrastructure at the Centre is classified into following broad categories:
1.External (Details given)
2.Internal (Details given)
3.Hardware, Software & Support facilities (Details would be shared post franchisee procurement)
Location of the Centre
Preferably commercial else semi-commercial, legally * statutorily with full clearances as required by law.
Ground floor, 2nd floor and above not permissible without provision of elevator.
Should be directly accessible from a minimum 10m wide road.
The Signage size & position should be such that its visible from at least 50m distance, prominently.
Exterior of the classroom should be neat, clean and free from congestion of hawkers, shops, shanties, litters, waste-bins etc.
Parking facility for:
3 car space: 10 seaters
6 car space: 20 seaters
Layout should be in line with COMPANY standard document enclosed for 10 seater & 20 seaters. Norms for
10 seater = 750 SQF (75 SQF/seat)
However, lower SQF per seat in permissible subject to certification by COMPANY.
Paints, finish, conducting shall be as per COMPANY norms & should be always maintained in good condition. The ambience should be conducive for education, covering aspects like seating arrangements, noise level inside the area, cleanliness, lighting levels, ventilation and air-conditioning. Adequate fire safety measures shall have to be mandatorily incorporated
Does a Business Partner get a protected territory?
The agreement is on nonexclusive basis and new centers can come up nearby. However HUGHES , considering, the risk of cannibalization, deploys due diligence while opening a new center in an existing coverage area- if we believe market needs more centres or due to underperformance by any specific center as compared to the market potential
Can a Business Partner increase or reduce their existing seat/licenses?
A Business Partner can certainly increase their Seating/License capacity in the centre by paying the current per license/seat cost + applicable service tax to HUGHES. Please connect our officials for more information and details etc. Reduction in seat license at a center is not permitted
What are the exit options for a Partner?
This Agreement shall come into force on the Effective Date mentioned herein and shall continue and remain in effect until the Term; provided, however, that either Party may terminate this Agreement upon written notice following a default or breach by the other Party of any other material obligation under this Agreement and the failure of such Party to cure such default or breach within 30 days after receiving written notice thereof.
Any Non-performance or poor performance on part of Business Partner, as compared to performance norms will lead to termination of the agreement automatically on performance breach.
Although, the Company shall have the right to determine this Agreement by giving one month prior notice in writing to the Partner without assigning any reason for such determination.
In the event of the termination, for the students studying at center, the partner must complete the teach-out for their running programs & thus maintain the facility for the same. Hughes shall however also try to shift out the students to nearby center if possible but it’s entirely upon Hughes discretion. A partner may also trade the license fee paid by him for seat licenses with any new upcoming partner at a price & terms solely negotiated between them. Hughes will honour those traded licenses for the new partner, through a standard joint declaration.