Kota Factory: Allen Cuts Salaries, Admissions Dip| Will PhysicsWallah, Akash Institute Follow?
10.7 هزار بار بازدید -
ماه قبل
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If you have followed the
If you have followed the recent NEET-UG controversy or even watched the Kota Factory web series on Netflix, you have some idea about the coaching industry and competitive exams in India. Now, in the latest development, media reports mention that one of the biggest names in the world of coaching institutes - Allen - has cut the salaries of its teaching staff.
Allen Career Institute has over 4,000 faculty members and administrative staff. And the institute has reduced their fixed pay by a significant 20-40%. As expected, the faculty definitely did not take the news of salary cuts lightly. An approximate 600 teachers of the Allen Career Institute penned a letter to the institute and expressed their concerns. They mentioned that the cuts did not just impact their finances but also affected their mental health. But, let's take a step back and explore reasons why the coaching institutes are tightening their belts.
For starters, the count of student enrollments is witnessing a decline. Allen's chief executive officer Nitin Kukreja has officially admitted that this year enrollments have fallen to 81,000 from 131,000 last year. That’s a 35-40% slump in student enrolment.
While this is a significant reason, there are other factors that are impacting the businesses of coaching institutes.
The coaching landscape is continuously evolving and offline players are now facing increased competition from online players - the players who promise to arm aspirants with the best preparation in the comfort of their home.
Second, during their expansion phase a few years ago, several coaching institutes opened new branches in other cities. The move was helpful to students as they could join an institute closer to home, instead of Kota in Rajasthan.
Third, there have been several concerns about student suicides in Kota. And parents have been wary of sending their children to this city.
Last but not least, it is likely that the recent NEET controversy has contributed to the drop in enrolment numbers. Reports say that coaching businesses for the preparation of the NEET examination recorded a 20-30% drop - impacting both online and offline players.
Overall, India's coaching industry is valued at around 58,000 crore rupees, and the NEET-UG coaching market constitutes 13% of it - valued at approximately 7,600 crore rupees.
Notably, coaching centres were quick to jump onto the bandwagon of the NEET controversy with several of them demanding a re-examination. A new narrative has been brewing that perhaps these coaching institutes were looking at another revenue opportunity in the lean summer vacation season in case a re-NEET was ordered.
Well, the new revenue opportunity that these coaching centres might be hoping for seems far-fetched. At this point, the institutes are in fact losing the already existing and expected revenue stream. And in this tussle, it's the teachers of Kota Factory who are bearing the brunt.
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Allen Career Institute has over 4,000 faculty members and administrative staff. And the institute has reduced their fixed pay by a significant 20-40%. As expected, the faculty definitely did not take the news of salary cuts lightly. An approximate 600 teachers of the Allen Career Institute penned a letter to the institute and expressed their concerns. They mentioned that the cuts did not just impact their finances but also affected their mental health. But, let's take a step back and explore reasons why the coaching institutes are tightening their belts.
For starters, the count of student enrollments is witnessing a decline. Allen's chief executive officer Nitin Kukreja has officially admitted that this year enrollments have fallen to 81,000 from 131,000 last year. That’s a 35-40% slump in student enrolment.
While this is a significant reason, there are other factors that are impacting the businesses of coaching institutes.
The coaching landscape is continuously evolving and offline players are now facing increased competition from online players - the players who promise to arm aspirants with the best preparation in the comfort of their home.
Second, during their expansion phase a few years ago, several coaching institutes opened new branches in other cities. The move was helpful to students as they could join an institute closer to home, instead of Kota in Rajasthan.
Third, there have been several concerns about student suicides in Kota. And parents have been wary of sending their children to this city.
Last but not least, it is likely that the recent NEET controversy has contributed to the drop in enrolment numbers. Reports say that coaching businesses for the preparation of the NEET examination recorded a 20-30% drop - impacting both online and offline players.
Overall, India's coaching industry is valued at around 58,000 crore rupees, and the NEET-UG coaching market constitutes 13% of it - valued at approximately 7,600 crore rupees.
Notably, coaching centres were quick to jump onto the bandwagon of the NEET controversy with several of them demanding a re-examination. A new narrative has been brewing that perhaps these coaching institutes were looking at another revenue opportunity in the lean summer vacation season in case a re-NEET was ordered.
Well, the new revenue opportunity that these coaching centres might be hoping for seems far-fetched. At this point, the institutes are in fact losing the already existing and expected revenue stream. And in this tussle, it's the teachers of Kota Factory who are bearing the brunt.
..............................................................................................
News9 is India's first fully integrated English news brand across all digital platforms. It includes a publishing platform, viz. www.news9live.com, a future-ready OTT platform, News9 Plus, and a 24-Hour video streaming service on connected TVs and all social platforms.
It's the English news brand that understands and fits perfectly into the digital-first lifestyles of our English news audiences.
► News9 Plus App : https://onelink.to/8pwfkc
► News9 OTT Coupons : https://bit.ly/4dwLDx4
► Watch us on YouTube : news9live
► Like us on Facebook : Facebook: news9live
► Follow us on Instagram : Instagram: news9live
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در تاریخ 1403/04/20 منتشر شده
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