Ahmedabad: The average annual domestic salary for this year’s graduates at the Indian Institute of Management, Ahmedabad (IIM-A) jumped to Rs13.6 lakh, a 40% increase over last year, the institute reported on 13 March as it concluded its highly-competitive job placements.
Students working in India earned an average Rs9.72 lakh last year. Overseas jobs also saw a 25% increase to $115, 300 (Rs50,73,200). Institute officials said they had been fearful that a more cautious global economy, especially jittery after recent stock-market volatility, would mean fewer foreign placements.
“While the domestic economy is booming, the shadow of recession in the global market is looming large,” said Bakul Dholakia, director of IIM-A. But about his placements, he said, “it has been extremely positive. Global recession has not affected us.”
For 2007-batch graduates with prior work experience— who got placed during a process known as “laterals” in January—the average annual salary increased 52% to Rs 16.13 lakh.
The highest international salary for the batch of 2007 ranged between $225,000 and $300,000, including bonus. The base salary was in the range of $160,000 to $180,000. The highest international salary last year was $185,000, including bonus.
The placement committee did not have separate bonus figures for last year. Student placement coordinator Devashish Chakravarty said it is safe to assume that one-third of the salary is bonus while two-thirds is the base salary.
Bonuses are usually paid by a company at the end of one year of work, and some international companies offer joining bonuses as well.
The highest domestic salary for the 2007 batch ranged from Rs60 lakh to Rs1 crore, including bonus. No separate figures were given for base salary.
Of the 224 students who got placed, 63 accepted international job offers. Dholakia said that in what appears to be a growing trend, 11 students rejected international offers to accept opportunities in India.
“India is where the growth story is,” said Jatin Mamtani, a student of the 2007 batch who rejected a job offer from an investment bank in New York to work in a consultancy in India. Mamtani also holds a bachelor’s degree from the Indian Institute of Technology in Mumbai.
The business school placed 224 graduates in jobs out of a batch of 235 in a five-day placement process which ended on Monday afternoon. Eleven students did not sit for placements and opted to set up their own ventures, reflecting another growing trend on campus.
Investment banks and consultants who made job offers at IIM-A were Bain, Boston Consulting Group, Deutsche Bank, Lehman Brothers, McKinsey and Merrill Lynch. The highest number of jobs was given by Lehman Brothers (17 offers, 14 acceptances), Merrill Lynch (15 offers, 14 acceptances) and McKinsey (13 offers, 12 acceptances).
Firms such as Blackstone Real Estate, Fischer Jordan, ING, Opera Solutions and Value Partners were some of the new recruiters joining the first days of placements, which tend to draw more competitive and higher-paying sectors such as finance and investment banking.
A number of investment banks and international consulting firms offered the job profile of associates. A total of 23 such offers were made, four of these were made to students without any prior work experience—putting them on a par with graduates of Ivy League business schools in the US.
Dholakia said the elevated profiles and increased responsibility on his young graduates reflects “a sign of IIM-A’s fast-growing reputation as a global brand, which can now compete with the best B-schools in the world”.