Is IPM at IIM Indore Worth It? An In-Depth Analysis of Fees, Placement, and ROI

Introduction

There is much debate surrounding the Integrated Programme in Management (IPM) at Indian Institute of Management Indore (IIM Indore). While some people discourage the program due to lower-than-average placements, others argue that it remains a valuable option for those with certain academic strengths. In this article, we delve into the placement data, fees, and return on investment (ROI) to help you make an informed decision.

Placement Track Record

One of the major considerations for any MBA program is the job placement for graduates. However, the IPM program at IIM Indore often faces criticism for the comparatively lower salaries received by its graduates. Here, we analyze the placement data for the years 2016 to 2018 to understand this issue better.

From 2016 to 2018, the average total compensation (CTC) for general management graduates from IIM Indore was 15.67 LPA. In contrast, the IPM program saw an average CTC of 11.96 LPA, a difference of 3.71 LPA. Specifically, in 2016, the gap was 3.71 LPA, in 2017 it was 22 LPA, and in 2018 it was 16 LPA. After 2018, the placement details for IPM students became less transparent, but based on these trends, an average difference of 21 LPA can be assumed.

Using this data, we can estimate that the average CTC for IPM students in 2023 could be around 23.8 LPA. It is important to note that the IPM program comprises learners who are not CAT, meaning they do not participate in the Common Admission Test conducted by IIMs. Without much professional experience, this explains the lower salaries.

Fees and Financing

The fees for the three-year Integrated Programme in Management (IPM) at IIM Indore are Rs. 171,413,300, which includes mess and other accommodation costs. Comparably, the fees for a regular three-year MBA program at IIM Indore are approximately Rs. 2,117,158. For the sake of making a meaningful ROI analysis, we will use the current MBA fee for IPM comparison.

With a 10-year repayment period, an estimated monthly EMI for an SBI loan with an 8.2% interest rate is Rs. 46,890. Keep in mind that the actual EMI will be higher due to interest accumulation during the course period and the moratorium period. For simplicity, we will exclude this part from our estimates.

When calculating your in-hand salary, the average CTC of 23.8 LPA can be multiplied by 0.7 to estimate the take-home salary. Therefore, your monthly take-home salary would be approximately Rs. 138,000.

Is IPM at IIM Indore Worth It?

Based on the current data and financial calculations, IIM Indore IPM appears to be a worthwhile investment. However, it is essential to consider the limited number of seats and the competitive entry criteria.

IIM Indore restricts entry to a maximum of 150 students per batch, with only 45 seats reserved for the open category. If you believe you fall into the top creamy layer category, it is definitely worth applying.

IPM at Other IIMs: A Comparison

It's also useful to compare the IPM programs at other IIMs. For instance, IIM Bhagalpur (IIM B) has an average package of 15.68 LPA. Using the same formula of subtracting 21 LPA, the estimated average CTC for the IPM program at IIM B would be 12.38 LPA. This lower salary coupled with a higher fee (Rs. 2,850,000) makes the IIM B IPM program less attractive, as your monthly take-home salary would be only Rs. 72,000. With higher EMIs (Rs. 34,880) and living expenses (Rs. 30,000), the net monthly take-home salary would be Rs. 7,120, making the fees seem less justified.

Conclusion

If you are academically inclined and want an MBA from a Top IIM, I would recommend the CAT way. Top IIMs do not give significant importance to academic performance, so your academic merit can significantly increase your chances of securing a call, even with a lower CAT percentile.

However, if you are not academically strong, the IPM at IIM Indore is a viable and attractive option. While the academic requirements are lower, it is still worth having a plan B, given the limited number of seats.

You can apply the same calculation method to other IPM programs offered by different IIMs to determine their worth. If you have any questions or need further information, feel free to comment below.

Key Takeaways:

IPM at IIM Indore offers comparatively lower salaries than regular MBA programs but remains a competitive alternative for academically inclined students. Fees and EMI calculations should be carefully considered when evaluating the ROI of the program. Academic performance can significantly influence admission chances to Top IIMs; hence, it is recommended to prepare for the CAT if possible.

Keywords: IPM IIM Indore, MBA Fees and Placement ROI, IIM Indore IPM Programme