Even with low pricing, we are able to make a profit: Laurus Edutech's Anurag Jain

Anurag Jain, a serial entrepreneur, founded three BPO firms and then sold them. His latest venture is Laurus Edutech, a three-year-old company that provides vocational training to budding electricians, plumbers, technicians and the like. In a candid conversation with Manu Kaushik, Jain spoke about challenges in the skill development sector and his plans for the $3 million Laurus.

Q. The skill development sector has seen tremendous traction in recent years. How is Laurus different from other companies in the sector?
A. We wanted to make the training affordable for everyone. The average cost of vocational training in North America is $50 a day. Before we set up Laurus, the average training cost in India was above Rs 100 a day. We brought prices down to an average price of Rs 20 per day.

The second thought was to build a model that's scalable, something like a McDonald's, which can go into Tier-III and Tier-IV towns and deliver the same high quality in a repeatable way.

So far, we have been able to achieve both objectives. Even with such low pricing, we are able to make a profit. We are training about 20,000 people every year in some 120 locations across the country. The aim is to double the size every year.

Q. How will you maintain quality standards as the company grows?
A. Scalability is extremely important for us. When we go to smaller towns, we make sure that we deliver the same quality, same content and same experience to all our students.

We have built that into our business model. We want to train a million people annually in six or seven years but that can't be done with huge centres. My belief is that we need small centres, spread as far as possible.

Laurus is using technology extensively to maintain quality and control costs. We have worked scientifically to track how best to utilise resources, be it teachers or infrastructure. We have an in-house software that monitors costs, running of centres and basic compliance issues.

Q. What kind of training do you offer?
A. We train electricians, construction workers, plumbers and technicians. The courses vary from six weeks to one year. On day one, when they walk in, we try to match their skills with potential employers. That's critical to their success and ours.

Q. What is the current demand for engineering-based blue-collar workers?
A. In India alone, the need is seven to nine million people. In addition, in the next five to seven years, as the population in Western countries ages, there will be a need to export this talent.

Q. What are the challenges the skill development sector faces?
A. The basic challenge is lack of awareness among people of the opportunities that exist in vocational training. It's a mindset that has to change.

Vocational training creates a job for life. In our country, there will never be a shortage of work. But there is a shortage of teachers who can teach the different types of skills required in vocational training.

Today, people want to be engineers - an engineering course costs a significant amount of money. I believe there are more jobs in vocational training than in engineering. An average engineer from a bottom-rung engineering college earns Rs 5,000 per month.

An average plumber or electrician can earn a starting salary of Rs 8,000-10,000 a month. Many engineers are unemployed but you will not find an electrician unemployed.