At B-schools, Rs 20-lakh packages are more common than you think
MDI Gurgaon, IIFT Delhi, IIM Kozhikode and TISS Mumbai cross `20-lakh average mark for first time.
KOLKATA: An average annual package of Rs 20 lakh straight off the campus has become the new normal for the graduating class of 2019 at many leading B-schools, rather than just the top handful. This placement season, at least four business schools — Management Development Institute (MDI), Gurgaon; Indian Institute of Management (IIM), Kozhikode; Indian Institute of Foreign Trade (IIFT), Delhi and Tata Institute of Social Sciences (TISS) Mumbai — have crossed the Rs 20-lakh average salary mark for the first time, in an indication that companies are willing to write big cheques for top talent even in a lacklustre market.
This compares with an average annual salary of Rs 9.3 lakh that management grads get in India, according to the Campus Salary Hiring and Employment 2018 report by online assessment platform Mettl.
It is based on data from 31tier-I and 49 tier-II business schools, where the average salary at tier-I colleges was Rs 15.38 lakh and at tier-II, Rs 5.34 lakh
“If you’re good, everybody is chasing you, right from a startup to top consults and multinationals,” said Ketan Kapoor, chief executive, Mettl. “Every company wants the same talent and because they want to make sure that talent is of a certain calibre, the pedigree of the institute matters. That’s why graduates from leading institutes command a premium.”
Average salaries were Rs 22.7-24.4 lakh at the top three IIMs — Ahmedabad, Bangalore and Calcutta — in 2018.
Increase of 20-25% in Cos Paying Rs 20L
Among non-IIMs, SP Jain Institute of Management and Research (SPJIMR) and Xavier School of Management (XLRI) have average salaries of above Rs 20 lakh.
“Graduates from the top business schools tend to remain insulated, or much less affected, even when the overall job market isn’t doing great,” Kapoor said. At institutes that breached the Rs 20-lakh average salary mark this year, there has been an increase of 20-25% in the number of companies paying such packages. At MDI Gurgaon, this year, 55 companies paid salaries of Rs 20 lakh or above, compared with 46 last year. At TISS Mumbai, there’s been a 25% increase in such companies over last year.
At IIFT Delhi, there’s been a near 78% increase in the number of companies paying over Rs 20 lakh, from 27 last year to 48 this time. The number of offers in this bracket has also jumped 54% from 87 in the 2016-18 batch to 134 this year, said Harkirat Singh, corporate and placement adviser, IIFT. Average overall compensation hit the Rs 20.07-lakh mark at the institute this year.
Campus placement sources say Airtel, Amazon, Asian Paints, Avendus, Bajaj Auto, Citibank, Colgate Palmolive, Dell EMC, Deloitte India, Flipkart, ITC, Lodha Group, L’Oréal, Mahindra & Mahindra, Marico, Nestlé, Reckitt Benckiser, Reliance Industries, Samsung R&D, Oyo Rooms, Rivigo, Swiggy, TAS and Uber are among those paying salaries in excess of Rs 20 lakh.
“Consulting and BFSI (banking, financial services and insurance) sectors were the top paymasters in this year’s placement process,” said Kanwal Kapil, dean of placements, MDI Gurgaon, where the average salary for the 345-strong batch of 2017-19 was Rs 20.13 lakh.
Shovan Chowdhury, placements chairperson, IIM Kozhikode, agrees. “Historically, consulting firms have been among the best paymasters and this year, there’s been a huge upsurge of offers from such companies,” he said. The mean salary for the 2017-19 batch at the institute rose nearly 16% to Rs 20.6 lakh from last year’s Rs 17.8 lakh.
While there’s been a near 20% increase in the number of companies paying upwards of Rs 20 lakh, there’s been a big jump in the number of such offers as well, said Chowdhury. Companies offering above Rs 30 lakh at IIMK include McKinsey, Bain, BCG, Microsoft and Colgate Palmolive.