Is the IIM Indore IPM Course Valid and Worth Pursuing?
Are you considering the prestigious Indian Institute of Management (IIM) Indore Integrated Programme in Management (IPM) for your MBA? This post will help clear any doubts you may have regarding the fees, placement rates, and return on investment (ROI).
Placement Rates: A Closer Look
One of the significant concerns when evaluating an MBA programme is the post-graduation employment scenario. While IPM students benefit from extensive training and support, they often start their careers with lower salaries than traditional MBA graduates.
2016 Placement Data: According to historical data, the average CTC (Cost To Company) for non-CAT students, such as IPM graduates, was approximately 11.96 LPA (Lakhs Per Annum), significantly lower than the 15.67 LPA of their fellow MBA students.
2017 and 2018 Placement Data: The disparities in average CTC were 22 LPA and 16 LPA, respectively. Since 2018, IIM Indore has not published IPM placement data separately. Assuming the average disparity remains at 21 LPA, we can estimate that the average CTC for IPM students in 2023 would be around 23.8 LPA.
Total Fees and EMI Calculation
Enrolling in the IPM programme involves significant costs. Here is a detailed breakdown of fees and the expected monthly EMI.
Total Fees: The 3-year programme costs approximately 17,14,133 Rs, including mess.
EMI Calculation: Assuming a current interest rate of 8.2% from SBI, the monthly EMI for a 10-year repayment period would be around 46,890 Rs. However, it is essential to note that the actual EMI would be higher due to interest during the course period and moratorium.
Return on Investment (ROI) Analysis
Using the average CTC of 23.8 LPA and a 70% in-hand salary conversion rate, the estimated in-hand monthly salary for an IPM graduate would be approximately 138,000 Rs. This salary, though lower compared to fellow MBA graduates, is substantial for many.
Considering the limited seats and stringent eligibility criteria, especially for open categories (only 45 seats available), securing a spot in the IPM programme is a significant achievement. If you believe you have a competitive edge, this could be an excellent opportunity.
Comparison with IIM Bodhgaya IPM
IIM Bodhgaya IPM: The placement scenario for IIM Bodhgaya is similar. Using the same 21 LPA formula, the average CTC for the IPM programme would be around 12.38 LPA. This results in an in-hand monthly salary of approximately 72,000 Rs.
However, the fees for the IIM Bodhgaya IPM programme are significantly higher, around 28,50,000 Rs. Assuming a 10-year repayment period and neglecting interest during the course period, the monthly EMI would be around 34,880 Rs.
Rent in Tier 1 Cities: Let's assume a monthly rent of 30,000 Rs in a Tier 1 city. After accounting for rent, the monthly in-hand salary would be only 7,120 Rs, making the economic case for IIM Bodhgaya IPM less compelling.
Considering Other Options and Personal Advice
It is worth examining the placement rates and fees for other IIM IPM programmes. For instance, IIM Rohtak and IIM Kozhikode offer competitive placement rates and fees.
Academic Focus: For academically strong students, pursuing an MBA through the CAT route is advisable. This approach increases the chances of getting into top-tier IIMs regardless of your CAT percentile or past academic record. However, for those with average academic performance, the IPM programme at IIM Indore can be a viable option due to its focus on non-CAT students.
Plan B: Regardless of which IIM you choose, having a backup option is crucial, especially if you are targeting IIM Indore, which has limited seats.
Personal Advice: If you excel in your academics, consider the traditional CAT route as it opens up more opportunities with better ROI. However, if you are just above average academically, the IPM programme at IIM Indore could be more suitable.
Always do your own research and calculations before making a decision. Let me know your thoughts in the comments section.
I hope this comprehensive analysis helps you make an informed decision regarding the IIM Indore IPM programme.