Brand IIM: Recently, the most prominent brand among the B-Schools, namely the IIMs released both their Shortlists 2019 and Placements Reports 2019, which displayed an exponential increase from the previous year’s Placement Trends. Nearly all IIMs recorded 100% Placements this year with new and more recruiters participating and students receiving more offers than the average batch size. Even for Summer Placements 2019, the highest stipends witness came anywhere between 4.5-5 lakhs. Needless to say, this shows the dominance of the coveted IIMs in the job market, making it a hot property among MBA aspirants who would give an arm and a leg to be a part of these premier institutions.
Therefore, let us attempt to understand through this article the magic of the Brand IIM, the Placement Challenge and the long road ahead for the IIM cohort.
Brand IIM: Top IIM graduates bag the best salary
As per findings published in the Campus Hiring: Salary & Employment Report 2018 by Mettl, an online assessments platform, revealed in a 2018 report that Indian Institutes of Management (IIMs) received as much as 137% and 121% higher salary packages in the last campus placement season compared to the overall average offered across all IIMs. The Mettl survey was conducted across 80 management institutes which also found that graduates from the top 6 IIMs, namely the ones in Ahmedabad, Bengaluru, Kolkata, Lucknow, Indore and Kozhikode, were offered Average Salary of Rs 20.6 lakh, which is around 121% higher than the overall average offered to an MBA graduate (Rs 9.6 lakh).
Notably, graduates of top government colleges and top private college also bagged avergae salaries around Rs. 18 lakh and Rs 19.6 lakh respectively.
Brand IIM assessment: Comparing the old, new and baby IIMs
Ask any management grad about the IIM hierarchy and it would be as easy as reciting A, B and C! Yes, for generations now, the hierarchy of the top IIMs have been denoted by the simple strain of the alphabet namely IIM-Ahmedabad (IIM-A), IIM-Bangalore (IIM-B) and IIM-Calcutta (IIM-C). Notably, the sequence remains exactly the same even after six decades of the establishment of the IIMs in Kolkata and Ahmedabad respectively. Today, however, we see 20 IIMs holding fort.
The catch here is that all of the 20 IIMs do not fall under the same category. The first set of IIMs, referred to as the ‘older IIMs’, are IIM-A, IIM-C (established in 1961), IIM-B (1973), IIM-Lucknow (1984), IIM-Indore (1996) and IIM-Kozhikode (1997). The hierarchy remains largely sequential as per its order of establishment.
Post the Gen A of the IIMs, comes the second generation which comprises of the new IIMs situated in Ranchi, Rohtak, Raipur, Trichy, Udaipur and Kashipur, all of which were operating from makeshift campuses of lately. Before this generation of fledgeling IIMs could properly make its place came the third wave of the IIMs, called the Baby IIMs. These include the IIMs established in 2015-16 at Amritsar (Punjab), Bodh Gaya (Bihar), Nagpur (Maharashtra), Sambalpur (Odisha), Sirmaur (Himachal Pradesh) and Vishakhapatnam (Andhra Pradesh) and the seventh one at Jammu.
It would not be fair to assess the Baby IIMs so soon since it doesn’t attract the same brand of students like its counterparts, however, the new IIMs can be scrutinised since it has been over a decade since its establishment.
While the older IIMs battled with high fee issues, it is the New IIMs and Baby IIMs that need time to fix its roots firmly. While IIM Rohtak requires more classrooms, dormitories and better infrastructure in general, IIM Udaipur, which shifted to a permanent campus 2 years ago still needs time to have faculty housing entirely ready. Also, attracting quality faculty and recruitments is a challenge as well since most Baby IIMs are located in far flung locations.
The New and Baby IIMs not only compete with other IIMs in terms of quality faculty and placements, but other reputed management institutes as well. There have been times where students have converted the Baby and New IIMs, but joined another private management institutes instead due to incomplete campus and classes going haywire in the former.
The Placement Challenge reflecting parity in the Brand IIM
Given below is the Placement Report 2018 of several IIMs. The higher the brand of the IIM, higher is the salary.
|IIM||Average Domestic Salary per annum||Maximum Domestic Salary|
|Udaipur||Rs. 11.95||Rs. 19.50 lakh|
|Raipur||Rs. 12.45||Rs. 22.05 lakh|
|Kashipur||Rs. 12.90||Rs. 20.80 lakh|
|Kozhikode||Rs. 17.80 lakh||Rs. 38.50 lakh|
|Ahmedabad||Rs. 24.40||Rs. 72 lakh|
|Calcutta||Rs. 24.20||Rs. 55 lakh|
The Placements at New and Baby IIMs pose a challenge too, nonetheless, they have enjoyed decent placements. Reportedly, for the flagship PGP Management programme at IIM-Udaipur, Average Domestic Salary in 2018 was Rs.11.95 lakh and Maximum Salary was Rs. 19.5 lakh.
Notably, at IIM Ahmedabad, Average Salary was Rs. 24.44 lakh and the Highest Salary recorded was Rs. 72 lakh.
Brand IIM: Verdict
What does it mean for the Brand IIM with the IIM parity? Can we now say that all the IIMs hold the same prestige?
Yes and No.
While some IIMs like the A, B, and C have become world-class, the new ones are still struggling to be one but lag behind due to lack of finances and proper infrastructure. In cases like the latter, where a student is concerned, the execution of the institute trumps more than the brand. Therefore, instead of choosing a brand with multiple issues, one can opt for another, say XLRI over a Baby or New IIM.
However, the Catch 22 here is that the IIMs have the government for backing and only a few private management institutes can match up with the way the government invests in an IIM. Also, the new IIMs have access to resources from the old ones and recruiters value them equally, says a lot for its standing.
Therefore, after assessing the Brand IIM, we can safely say that despite the rapid proliferation of the IIMs, the Brand IIM refuses to be diluted since they have established themselves on several parameters of excellence. The new IIMs are being mentored by the old ones, and it is only a matter of time before they catch up with them. With no dearth of talent in the country, these institutions will help shape them and carve effective leaders out of them.