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We believe that Indian guru Mata Amritanandamayi known as the “Hugging Saint” is Embezzling The World. Help us to spread the truth about her.

Sunday, January 26, 2014

Follow the money - Part 2

After analyzing the medical and social landscape of India to find out the real purpose of Amritanandamayi's super specialty hospital, a Former AIMS Consultant makes some financial simulations to confirm his theories.



Here is a link to most of the degrees offered by the Amrita colleges, along with their annual tuition charges for foreigners and non-resident Indians:
http://amrita.edu/admissions/coursefees-nri-2012.pdf

Room and board charges are not included on the list. Tuition charges for foreign students are, on average, about 50% higher than for Indian residents. Here is a table of charges for the more popular programs offered at the Amrita colleges (foreigner costs are for tuition and fees only):
College Location Degree Annual Cost Rs Annual Cost $ Foreigner Cost $
Medical Kochi MBBS 518000 9400 28000
Dental Kochi BDS 422000 7680 15000
Dental Kochi MDS 556900 10170 ?
Pharmacy Kochi Phar D 287550 5230 7000
Pharmacy Kochi M Phar 232550 4230 8000
Nursing Kochi BSc 184000 3350 4000
Nursing Kochi MSc 224000 4000 9000
Business Kochi MBA 276725 5030 7500
Business Amritapuri MBA 264225 4800 7500
Business Bangaluru MBA 446725 8120 12000
Business Coimbatore MBA 408725 7430 12000
Engineering Bangaluru B Tech 208000 3780 5000
Engineering Amritapuri B Tech 199500 3620 5000
Engineering Coimbatore B Tech 232000 4220 7000

Engineering generally costs less than the other colleges probably because of competition. There are over 80 engineering colleges in Kerala! Yet an engineering college was the first one opened by Amma. Since many Indians choose to become engineers, total profit opportunities are especially high with respect to an engineering education.

We saw earlier how the 690 bachelor degree medical and dental students at Amrita generate over $6 million per year in revenue. The Amrita website says there are 16000 students enrolled in Amma's schools. Looking at the above table, if we assume an average annual charge of $5000 per student, multiplied by16000 students, the Amrita schools would generate annual revenues of $80,000,000!

Even the poorest students added to the bottom line of Amma's colleges when I was there because of their way of providing financial aid. Despite the organization taking in millions in income each year, poorly-paid graduates right out of college were saddled with the burden of paying for others' education through a "pay-it-forward" program from which they themselves earlier received aid. (This is similar to the drug bank they have for poor AIMS patients). Amma's colleges continued to earn profits off every student.

There are, of course, costs associated with running colleges. (However, there are also additional revenues, from student stores, canteens, etc.)

The highest expense in education is teacher salaries, and these are modest in Kerala, as you can see here:
http://paycommissionupdate.blogspot.com/2009/09/tamilnadu-college-teachers-likely-to.html
If we assume a reasonable student-to-teacher ratio, teacher salaries are not likely to exceed 15% of revenues (While living at Amritapuri in the early 1990's, I met devotee teachers at Amma's engineering college who received no compensation other than room and board.) If we allocate another 10% of income to cover administrative costs, student food and housing, classroom overhead, and other expenses, that leaves 75% of revenue as pure profit. If these figures are correct, total aggregate profit comes to over $60 million per year! High profit margins and low capital costs make higher education a highly lucrative business.

Amma's website says there are now five Amrita campuses in south India with plans underway to establish eight more campuses throughout India. Profits from Amma's highly profitable education business now dwarf the organization's foreign contribution revenue ($23.8 million in 2012). Amma's lucrative college business may represent the future direction and orientation of this organization.