DEVINA SENGUPTA & SREERADHA D BASU, ET Bureau Sep 22, 2012, 06.42AM IST
AHMEDABAD | BANGALORE | KOLKATA: Pre-placement offers (PPOs) are off to a good start across the premier Indian Institutes of Management (IIMs) though it’s early days yet to call it a downpour. At top IIMs, including Bangalore, Lucknow, Kozhikode and Indore, the numbers are as good or even better than last year, hinting at robust final placements, even though the overall economy is still in the grip of a slowdown.
IIM Bangalore is leading the pack, having already notched up 50 PPOs, more than half of last year’s total tally of 93. Numbers at IIM Indore are looking good as well with some 20 PPOs in, while IIM Kozhikode has 12 PPOs and 15 pre-placement interviews (PPIs) already, with a top offer of Rs 22 lakh from Deutsche Bank.
PPOs are offered by companies based on students’ performance during summer internships. They continue to flow in till December or even beyond, till final placements begin at the campuses. PPIs are interviews that a company takes for students who have interned with them, which may convert into a PPO. Therefore, students who get PPIs are interviewed for a post before the company comes over for placements. PPOs come in from June-July onwards and continue till December-January.
“There is no impact of the slowdown and students are happy,” says Sapna Agarwal, head, Career Development Services (CDS) at IIM-B. The institute has received international offers as well, with an almost 100% conversion in the consulting sector. IIM Lucknow too is off to a healthy start with 40 PPOs already, compared to a total of 75 last year. The institute has seen 100% PPO conversion at firms like McKinsey and BCG this year.
“Hindustan Unilever has made five PPOs while the Aditya Birla Group has given two PPOs. Fidelity and a Singapore-based hedge fund too made offers to the interns,” said Aman Bhatnagar, recruitment coordinator at IIM Lucknow.
“These are tough times and PPOs do offer a big relief to the students,” he added. Packages have been more or less the same as last year, but a few recruiters have raised the compensation by 15-25% by sweetening the deal through offers like joining bonuses,” Bhatnagar added.
IIM Ahmedabad and IIM Calcutta both declined to share numbers, but said that final placements are expected to be on a par with last year. IIM Calcutta is taking a wait-and-watch approach. “Offers have come in but it’s early days. Most companies are still in the process of firming up numbers,” says IIM-C placement committee chairperson Krishanu Rakshit.
IIM Kozhikode, which received 51 PPOs last year, is expecting more in the coming months since the usual names are yet to make offers. Tata Administrative Services (TAS) is a first-timer on the IIM-K campus while regulars include Goldman Sachs, GSK, Dell, Wipro and Deutsche Bank. Average offers are in the Rs 12-13 lakh bracket.
“PPOs currently have been spread out across marketing, finance and general management sectors,” says Surbhi Bhatia, member of placements committee at IIM-Kozhikode.
IIM-Rohtak, a new IIM, last year received five PPOs for a batch of 48 students and this year, it has received five PPOs so far for a batch of 123 students. “We expect 15 PPOs this year from sectors like marketing, consulting and corporate finance,” said Pranit Upadhyay, member of placement committee of IIM-Rohtak.