Are New IIMs Killing the Brand Value of IIM?

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Are New IIMs Killing the Brand Value of IIM?
Are New IIMs Killing the Brand Value of IIM?

Are New IIMs Killing the Brand Value of IIM: The Indian Institutes of Management (IIMs) are highly-regarded management schools in India. The majority of candidates appear in the CAT exam to secure admission in the top IIMs in India. IIMs are categorised into three parts, i.e. old, new, and baby. IIM Ahmedabad, Bangalore, and Calcutta have always reflected academic excellence and brand value. It is a goal for many to get admission into the oldest IIMs. It offers high-quality education and opens doors for high-paying jobs. But the management education has seen a drastic shift in recent years. New IIMs in India were launched to make education more accessible. This move has raised several concerns and sparked intense discussions. “Are New IIMs Killing the Brand Value of IIM?” is a common query of the aspirants. To answer this, we have curated this article that focuses on actual insights of older vs. newer IIMs and other relevant details.

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Are New IIMs Killing the Brand Value of IIM?

The expansion of IIMs has shifted the viewpoint on the brand. Older IIMs maintain their global reputation, while new IIMs continue to work on establishing themselves. So, are new IIMs killing the brand value of IIM? Not exactly. The IIM brand is actually evolving. They are transforming it into a multi-tiered structure. It is expected that some new IIMs will rise to the top and others will stay important locally. Before understanding this, we should review the rise of New IIMs over the years. The new IIMs were launched to fulfil India’s growing requirements for skilled managers and to make management education more accessible in all regions. Here is the quick timeline:

  • 1960s–1970s: IIM Ahmedabad, IIM Calcutta, and IIM Bangalore were established.
  • 1980s–2000s: IIM Lucknow, Kozhikode, and Indore joined the list.
  • 2008-2009: IIM Shillong, Rohtak, and Ranchi were added to the list.
  • From 2010 Expansion: IIMs were added, including IIMs in Udaipur, Raipur, Kashipur, Trichy, Visakhapatnam, Amritsar, Nagpur, Bodh Gaya, Sirmaur, Sambalpur, Mumbai, and Jammu.

This expansion indeed brings positive change. But many argue that it could affect the IIM brand value. Getting admission to it was a rare achievement. Today, thousands secure admission, making the tag less special.

Old IIMs Vs New IIMs in India: What Does Data Say?

Let’s compare old IIMs vs New IIMs to understand whether the IIM brand value has been affected. The following are important insights for clarity purposes.

ParameterOld IIMs (A, B, C)IIMs (L, I, K, S, R)IIMs (Post-2010)
Global RankingTop 100 globallyTop 200-300 globallyRank sometimes globally
Average SalaryINR 28-35 LPAINR 20-28 LPAINR 12-18 LPA
Batch Size400-600+ students300-500 students150-300 students
Alumni NetworkStrongGrowingEarly Stages
Industry PerceptionKnown as a premium collegeReputed but below A, B, CHighly variable
InfrastructureTop-classGoodDeveloping

Placement Scenario of Old IIMs and New IIMs

IIM has earned its brand status largely because of its strong placement records. But the expansion of IIMs has divided the brand into separate tiers. 

  • Old IIMs (A, B, C): It attracts global consulting firms and top recruiters offering INR 30 LPA to over 1 crore packages.
  • Mid-Tier IIMs (L, I, K, Rohtak, Shillong): Offers decent placements in finance, consulting, etc. The average placement package lies in the range of INR 18 LPA to 28 LPA.
  • Newer IIMs (Bodh Gaya, Sirmaur, Sambalpur, etc.): Many find it hard to attract top recruiters, with average packages ranging between INR 10 LPA and INR 15 LPA.

These varying placement statistics have created confusion among aspirants and employers. Certain companies do differentiate between the older and newer campuses. This inconsistency is the main reason behind the debate over brand value dilution.

Factors Affecting Quality of Newer IIMs

Various factors are considered responsible for affecting the quality of education of new IIMs. Some of the crucial parameters are given below:

  • Fewer experienced professors are available in new IIMs as many experienced teachers prefer old IIMs.
  • There are infrastructure gaps in many new IIMs in India. They have limited facilities which affects the quality of education.
  • Lower CAT cutoffs at newer IIMs often result in less competition and affect overall learning results.
  • Newer IIMs struggle to provide good internship and project opportunities. The key reasons are small alumni networks and industry connections.

Are New IIMs Killing the Brand Value of IIM?

Some argue that newer IIMs weaken the brand, but the reality is not that simple:

  • The brand may feel less exclusive today. But more students get the chance to pursue an IIM education
  • The IIM brand is slowly shaping into tiers. It is similar to the leading institutes abroad, where top names dominate while others coexist successfully.
  • New IIMs like Shillong, Rohtak, and Ranchi are building their brand with impressive placements and excellence.

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Are New IIMs Killing the Brand Value of IIM?

Are New IIMs Killing the Brand Value of IIM?

Not really. New IIMs are not killing the brand value. They are just shaping into tiers where individual campus performance reflects reputation.

What is the average package of the New IIMs for MBA?

The average MBA salary package of newer IIMs lies between INR 10 LPA and INR 20 LPA.