MHRD seeks report on poor placement record of newer IIMs

Placement record

Keeping in mind the ever growing need of management professional in India, 14 new campuses of the Indian Institute of Management have been set up over the last six years. In the group of new IIMs the oldest one is IIM Shillong, set up in 2007 and the newest one is IIM Jammu which was established in 2016.

These new institutes, mentored by old IIMs, were thought to soon grow and acquire a status of their own. However, it may come as a surprise to many that these newer institutes have been struggling in one area i.e. campus placements. Though, it may be too early to compare them with the older IIMs like IIM Ahmedabad, IIM Bangalore, IIM Calcutta who have acquired iconic status in the academia, there are some gaps these institutes are riddled with that can't be ignored.

In this regards, the Ministry of Human Resource and Development has sought a report from the institutes on their poor placement record.

Among the newer IIMs the lowest average annual salary package offered (2015-2017) is Rs 11 lakh and the highest is Rs 15 lakh. Some of these campuses have not been able to achieve 100 percent placement as well.

The department of higher education (management) has asked all the new IIMs to submit a detailed report of recruitment and salaries for the 2015-2017 batches, including average median, highest salary, lowest salary, reasons behind poor placements and measures to ensure 100 percent placement.

In the below tables, we look at the placement process outcome of the graduating batch of the new and old IIMs.

The comparison reveals a huge difference between the average/median salary of newer IIMs and older IIMs. Although, only salary packages offered may not be the right comparison, it does make one wonder as to what is the reason behind top recruiters shying away, given that these newer IIMs are mentored by old IIMs.

It also raises a question in the minds of aspirants about IIMs brand value as their placement record is same as that of non-IIM institutes.

New IIMs

Old IIMs

Note: The figures have been taken from the latest final placement reports shared on IIMs official websites.