How the Kota coaching factory works

Kota, the city known for its thriving coaching industry, experiences a significant influx of students during the peak season from July to January. These students, numbering around 1.8 lakh, come from various states like UP, Bihar, MP, Rajasthan, Haryana, Punjab, Maharashtra, Gujarat, West Bengal, and Odisha, increasing the city’s population by over 12%.

To accommodate these students, there are approximately 2,500 registered hostels in Kota. These hostels house a total of 1.2 lakh students who pay monthly fees ranging from Rs 7,000 to Rs 30,000 for their accommodation and food. About 80% of these students have single rooms. As the demand for accommodation rises, around 15,000 to 20,000 additional spaces are created every year. The popularity of 1BHK flats and studio apartments has also increased as some parents, primarily mothers, choose to stay in the city during the coaching season. Additionally, around 4 to 5 lakh parents visit Kota each year, contributing Rs 100 crore to the travel industry.

Being a coaching hub, Kota also benefits from the market for books. Students purchase approximately 50 lakh books annually, amounting to Rs 40 crore to Rs 50 crore in book sales. On average, students spend Rs 8,000 to Rs 10,000 per person on books and stationery. In addition to books, around 6 lakh uniforms, priced at Rs 500 to Rs 600 each, are sold to students. The teenage students also engage in occasional fashion purchases, collectively contributing around Rs 60 crore per year to the clothing industry.

The cost of food ranks third in terms of expenses for students, falling behind tuition and accommodation. Students residing outside hostels as paying guests spend Rs 40,000 to Rs 50,000 per year on meals. Public transportation options, such as autorickshaws, vans, and buses, are relatively affordable, with students paying Rs 30 to Rs 50 per day. However, approximately 20,000 students opt to buy new bicycles each year.

The coaching industry in Kota generates an impressive revenue of up to Rs 5,000 crore annually. There are six large institutes in the city, each catering to more than 5,000 full-time students, alongside several smaller ones. The yearly fees at these institutes range from Rs 40,000 to Rs 1.3 lakh. The coaching sector also provides direct employment to 2 lakh individuals and indirectly supports another 1.5 lakh jobs. The government earns up to Rs 700 crore in taxes from this industry.

Furthermore, approximately 20 to 30 ‘star’ teachers in Kota earn over Rs 1 crore per year, with the highest package reaching Rs 2 crore. Even the starting salary for the 4,000 to 5,000 teachers in coaching institutes is impressive, at Rs 8 lakh or Rs 67,000 per month. Approximately 10% of these teachers are IITians.