Management Courses to Burn a Deeper Hole in Your Pocket
Fees in top B-schools to rise by .₹ 46,000-3.2 lakh, depending on the institute
Sreeradha D Basu & Ranjit Shinde
Mumbai: At least nine of India’s top business schools have either increased or are in the process of raising course fees by 7-30% for management aspirants this year, citing inflationary pressures and rising operational expenses. That translates to fee increases of .₹ 46,000 to .₹ 3.2 lakh, depending on the institute.
The Indian Institute of Management (IIM), Lucknow, has effected the steepest hike of 30% for the Class of 2018 (2016-18 batch), followed by IIM Kozhikode (23%). While the former has raised fees to .₹ 14 lakh, Kozhikode has increased it to .₹ 16 lakh ( see chart).
“A fee hike was inevitable to keep pace with inflation, pay hikes and cost of infrastructure,” said IIM Ranchi Director Anindya Sen. The institute has hiked fees by 19% to .₹ 12.5 lakh.
Rupesh Pati, chairperson of the post-graduate programme in management (PGP) at IIM Kozhikode, echoed this observation. “Input costs have gone up — whether books, buying case studies or building infrastructure.”
India’s most expensive management programme is offered by IIM Ahmedabad, which increased its fees by 5.4% to .₹ 19.5 lakh. Next is IIM Calcutta, which has raised fees 16.5% to .₹ 19 lakh.
Private schools such as Manage- ment Development Institute (MDI), Gurgaon, and International Management Institute, (IMI) Delhi, have also increased fees. At MDI, tuition fee is up 7% at .₹ 17.15 lakh, while IMI has raised it by 3% to .₹ 14.96 lakh.
XLRI is likely to raise fees by up to 7%, said Sunil Varughese, chief brand and sustainability officer at the institute. The Jamshedpurbased B-school currently charges .₹ 17.95 lakh for its two-year course.
“Unlike the IIMs, private B-schools can’t increase their fees beyond a point. There’s also a cap on the number of students we can take in. Given that our capital expenditure is borne entirely by us, we need to increase our revenue from other sources,” said Varughese.
With the current round of fee increases, the cost of management education at the top institutes has gone up four-five times in the past nine years. Fees at IIM Ahmedabad and IIM Calcutta, which were .₹ 4 lakh nine years ago, have risen almost five-fold to .₹ 19.5 lakh and .₹ 19 lakh, respectively.
An ETIG analysis shows tuition fees at major B-schools have risen faster than inflation.
B-School Fee Hikes This Year
Top B-schools hiking fees by 7-30% citing inflationary pressures and rising operational expenses
The airwaves are valid till September 20, 2030.
“Bharti Airtel and its subsidiary Bharti Hexacom have entered into definitive agreements with Aircel Ltd and its subsidiaries Dishnet Wireless Ltd and Aircel Cellular Ltd to acquire rights to use 20 MHz of 2300 band 4G spectrum for eight circles for an aggregate consideration of .₹ 3,500 crore,” India’s largest telecom company said in a filing with the Bombay Stock Exchange after the stock markets closed. “The transfer of the right to use (4G spectrum) for Andhra Pradesh and Odisha is subject to revision of spectrum caps with the upcoming auction to be conducted by the telecom department,” Airtel said.
ET was the first to report on the Airtel-Aircel deal talks in its edition on October 7, 2015. People familiar with the RCom-Aircel talks had subsequently said the two had decided to retain Aircel’s 2300 MHz spectrum to be able to share and trade at a later stage. But, under pressure to cut debt, Aircel finally went ahead with the sale to Airtel. Lately, the Sunil Mittal-founded Bharti Airtel has been on a 4G spectrum expansion overdrive. After buying Qualcomm’s airwaves in four circles, Airtel purchased Augere Wireless, which owned 4G airwaves in the Chhattisgarh-Madhya Pradesh circle.
Both deals netted Airtel airwaves in the 2300 MHz band and raised its holdings in that particular band. Last month, Airtel bought Videocon Telecom’s 4G air- waves in the 1800 MHz band in six circles for .₹ 4,428 crore, also through a bandwidth trading deal. Bharti’s aggressive 4G airwaves push comes when industry experts expect incumbents with wider data spectrum holdings to be in a stronger position to ring-fence their customer base from any potential attacks from Jio, which till now was the only owner of pan-India 4G spectrum. Airtel was the first to start 4G services, on the 2300 MHz band, in 2012. It stepped up the rollout in the past few months, expanding to more than 350 cities and towns, anticipating competition from Jio, which is expected to soft launch its 4G services shortly and start wider commercial operations by December.
Airtel has rolled out 4G in 15 circles, Vodafone India in five and No. 3 carrier, Idea Cellular, in 10 circles.
Industry experts said it makes sense for Aircel to exit the 4G turf, which will be dominated by Airtel, Vodafone, Idea and Jio. RCom has entered into spec- trum sharing and trading deals with Jio, which will be effective even if RCom’s deal to merge its wireless business with Aircel fructifies. Maxis-owned Aircel paid .₹ 3,438 crore to win airwaves in the 2300 MHz band in the 2010 spectrum auction. Like most companies that bought the airwaves at the time, Aircel has barely met rollout obligations. Its 4G networks are functional in Tamil Nadu, Andhra Pradesh, Bihar, Odisha, Assam and Jammu & Kashmir for enterprise customers only. It’s yet to launch any service in the North East and West Bengal.
A sector analyst at a leading global brokerage said Airtel may have paid a “premium, since it has shelled out .₹ 3,500 crore for Aircel’s 4G spectrum, which has a residual life of only 14 years, unlike Aircel, which had paid .₹ 3,438 crore six years ago for these airwaves for a 20-year period.” The need to expand bandwidth holdings given Jio’s entry was the overriding reason, he added.