No meltdown for students of NITIE

MUMBAI: A year ago, Lehman Brothers topped the charts during summer placements at National Institute of Industrial Engineering (NITIE), Powai, with an offer of around Rs 80,000 for two months. This year, Lehman Brothers does not exist. But Cadbury beat Lehman’s stipend at NITIE this year, offering Rs 1 lakh for the same period.

It is clear that B-school students aren't losing sleep over the global financial crisis. Summer placements are actually bigger and better than they were last year. The only impact of the crisis is a shuffle in the profile of the recruiters. While investment banks were the most coveted companies for summer placements in 2008, they have now been replaced by niche sectors, including FMCGs, pharmaceuticals and oil trading companies.

Jamnalal Bajaj Institute of Management Studies (JBIMS), Churchgate, has seen a 10% rise in the average stipend for summer placements this year as compared to the previous year. While the average stipend was Rs 47,000 for two months last year, it has increased to Rs 52,000 this year.

While the highest domestic stipend at JBIMS is Rs 1 lakh offered by Coca Cola, the highest international placement, which has been offered by Emirates Bank, is an estimated 16% to 33% over last year's figure.

Incidentally, this is the first time that Emirates Bank has recruited students from the institute. There's a shift in the meaning of the term 'foreign placement', which earlier referred largely to placements in the US or Europe.

At the Shailesh J Mehta School of Management (SJMSOM), IIT Bombay's B-school, all 86 first-year students were placed in one-and-a-half days, a record of sorts for the institute. And over 60 students were placed on the first day itself.

There's been a 10-12% hike in average placements when compared with last year. While the highest domestic offer last year was Rs 64,000 for two months, the figure this year is Rs 1 lakh.

"People have faith in the Indian economy. The demand for freshers at FMCGs continues to remain high. At a time when everybody is talking of a global financial crisis, Hindustan Unilever shares have increased in value," says Professor Dinesh Sharma, faculty placement co-ordinator at SJMSOM. He added that there has been no loss for students this year.

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