The batch of 2008-2010 at various management schools in India can finally heave a sigh of relief. Despite the global economic slowdown, students have managed to bag diverse offers for their summer internships due in April 2009.
Notably, offers from the finance sector continued to pour in despite fears that they would take a dip this year, though placement coordinators note that other sectors like consulting, marketing, fast moving consumer goods (FMCG), real estate, hospitality and general marketing are giving the finance sector a run for its money.
At the Indian Institute of Management-Bangalore (IIM-B), for instance, investment banks took 21 per cent of the 268 students from the batch. Investment banks accounted for 20 per cent of recruiters visiting the campus.
Around 45 per cent of the batch was placed in the financial sector. Similarly, at IIM-Lucknow, over 32 per cent students chose finance placements. The major investment banking and private equity firms included Merrill Lynch, Barclays Capital, Baring Private Equity Partners, O3 Capital, 2i Capital, Seedfund, JPMorgan Chase, and Goldman Sachs.
Faculty of Management Studies (FMS) had 15 per cent of its batch placed in financial institutions like Standard Chartered, Citibank, HSBC, Bank of America, American Express, ICICI Bank and Axis Bank. Investment banking firms like Langham Capital and IDFC-SSKI, venture capital firms Helion Ventures and IDG Ventures and private equity firm Avigo Capital Partners also offered a variety of roles to students.
Anticipating the impact of the global crisis on summer placements, all institutes invited more companies to ensure students had a choice of recruiters and sectors.
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The placement process was not completely unscathed, however. Placements on slot zero, the most coveted slot for recruiters occupied usually by investment banks and financial institutes, dropped 9 per cent over last year, suggesting that students were cautious and open to companies from different sectors slotted on other days.
| *Investment banks pick 20% at IIM-A; 45% in finance |
| * 32% in finance at IIM-L; FMS had 15% in financial institutions |
| * But other sectors are closing in |
| * International placements are seeing a drop in stipends |
“Unlike last year, when only 65 firms picked up students, we have invited almost double the number to ensure better placements. So far, only seven firms have visited, of which some are from finance and some from consulting,” said N D Sharma, placement co-ordinator at K J Somaiya Institute of Management Studies.
IIM Ahmedabad was a clear example of students looking beyond. This year only 32 per cent opted for finance which, though highest when compared to other sectors, was a clear drop from last year when 51.3 per cent had chosen the sector.
Consulting came a close second at 26 per cent and marketing was the largest gainer from previous years with 23 per cent of the batch choosing marketing roles.
“The decrease in the number of offers from the financial sector should be attributed to the turmoil in the financial market and not the overall global meltdown,” said Samir Barua, director of IIM-A.
The Faculty of Management Studies, Delhi University, was among those that chose newer sectors. Around 29 per cent of the batch has decided to join FMCG companies. Similarly Xavier Labour ReIations Institute (XLRI) had offers from Hindustan Unilever (HUL), Procter & Gamble, Coca Cola. Procter & Gamble offered marketing roles in Singapore and HUL offered roles in sales and marketing across international locations. ITC, Nestle, Colgate Palmolive, Cadbury, Johnson & Johnson, Reebok, Marico and GSK, among others, offered sales or marketing profiles.
“The range of offers across all slots suggests the inherent strength in the FMCG space, which was very aggressive in terms of offers, locations and stipends this year. A new niche sector this year was brand consulting, with The Alia Group and Vertebrand enthusiastically participating in the internship programme,” said Rajiv Misra, Chairperson, Placements, XLRI.
International placements, however, saw a drop at IIMs like Ahmedabad and Bangalore although others like XLRI saw the top offers coming from international companies. At IIM Bangalore, against 105 students taking up international offers last year, only 85 were placed.
“Fewer international offers were made and some students preferred to opt for domestic placements,” said Aditya Kashyap, member of students' placement committee at IIM-B. Firms making international offers included ICICI Bank, Bank Muscat, UAE Exchange and Result.
Around 15 per cent of the profiles at XLRI were for positions in North America, Europe, South East Asia, and the Middle East by over 70 prospective recruiters.
At IIM Calcutta students received positions at finance companies based in New York, London, Singapore and Hong Kong.
For interns based in India, stipends for the two-month stint would be Rs 90,000 to Rs 450,000, and for international stipends ranged from $12,000 to $22,000. The average stipend for the internship period stood at over Rs. 85,000 for the duration of the internship, a 60 per cent jump over last year.
In a growing trend, a number of students have started interning with start-up firms. Fifteen students from IIM Ahmedabad will do internships with start-ups and several students have chosen to work with ventures launched by IIM Lucknow alumni.
Additional reporting with Vinay Umarji & Kalpana Pathak