After NMAT, GMAC to acquire CAT exam; GMAT scores may become compulsory for IIMs

In an interesting turn of events, Graduate Management Admission Council (GMAC) is all set to acquire IIM’s Common Admission Test (CAT). According to exclusive information available with Shiksha.com, GMAC and the Indian Institutes of Management (IIMs) are currently ironing out the details of the entire change of ownership of India’s most important management entrance test.

Sources also confirmed that Prometric will replace TCS as the test-taking agency. Prometric is currently GMAT’s test partner internationally. GMAT scores will become compulsory for admission to IIMs in near future.

According to reliable sources in GMAC, the acquisition will be completed by June 2015. Since Prometric will be back in action, MBA aspirants can expect the CAT 2013 test pattern. In CAT 2013, the exam was held over a period of one-month, with two slots on each day. Percentiles will be derived after normalisation of scores. However, this aspect has not been confirmed by either CAT authorities or GMAC officials.

International MBA website Poets and Quants had already predicted this acquisition. In an article published on March 11, writer John A. Byrne says, “Nearly 175,000 students take the CAT annually in India which makes it a likely future acquisition target for GMAC.”

Acquisition of CAT exam comes soon on the heels of GMAC acquiring Narsee Monjee Institute of Management Studies’ (NMIMS) NMAT exam. A non-profit entity, GMAC is looking to expand base in the Indian MBA studies market.

According to All India Council of Technical Education data, more than three lakh (3,00,000) students are aiming to pursue MBA in the country every year. Though, interestingly, AICTE is shutting down many MBA colleges. “If one looks at the overall picture, on one hand we have closed a few MBA colleges, which had no proper faculty or teaching programmes. On the other hand, the government of India has increased the total number of IIMs. Existing IIMs have also increased their number of seats. Other top B-schools of the country are also expanding to other cities or expected to increase the number of seats. So in totality, the proportion of MBA seats has been maintained,” says an AICTE official.

With the acquisition of CAT and GMAT, GMAC will consolidate its position in the Indian market. India is currently one of the most lucrative markets for GMAC. With development in full gear under Modi government’s leadership, number of students taking up MBA programmes is expected to grow at 10% annually.

“Priced at Rs 15000, GMAT is an expensive exam for Indian MBA aspirants. However, NMAT or CAT are priced below Rs 2000, which is quite affordable,” says sources inside GMAC.

 

If you are currently on the edge of your seat, re-thinking your decision for CAT prep or planning to steal GMAT mock tests from your friends’ system, relax! This is just an April Fool’s day prank.