KOLKATA: Ecommerce companies pumped up offers during summer placements at leading business schools, making up for dips in the BFSI (banking, financial services and insurance), automobile and telecom sectors.
In a largely lacklustre hiring market, recruiters showed their keenness to hire interns from campuses such as Management Development Institute (MDI), Gurgaon, Indian Institute of Management (IIM), Kozhikode, and Tata Institute of Social Sciences (TISS), Mumbai, though average stipends have remained more or less the same as last year.
At MDI Gurgaon, the average stipend for a two-month internship has risen 10% to Rs 2.31 lakh, while at TISS Mumbai, it’s Rs 2.08 lakh compared with last year’s Rs 2.04 lakh. There’s been a slight dip in average stipends at IIM Kozhikode to Rs 1.68 lakh from last year’s Rs 1.71 lakh.
As recruiters increasingly bank on internships to assess candidates for eventual hire, some companies were more aggressive than others. Philips India increased its stipend by 56% to Rs 2.5 lakh for a two-month internship. Oyo raised it 53% to Rs 2.3 lakh. Accenture, Kohler and Mars India each raised it by 33% to Rs 2 lakh, and Wipro by 31% to Rs 1.7 lakh, according to MDI data.
“Summers are important opportunities to spot future talent, so companies don’t risk missing out even if the overall sentiment is sluggish,” said Kanwal Kapil, dean of placements at MDI Gurgaon.
According to Kapil, while fast-moving consumer goods (FMCG) and consulting continue to hold sway — L’Oreal is the top-paying recruiter with a two-month stipend of Rs 3.2 lakh at MDI — in BFSI, manufacturing and telecom, the percentage of offers has declined, with BFSI seeing a 7% dip.
Ecommerce made up for this deficit, with offers to 14% of the batch, twice the 7% last year. Recruiters included Amazon with the highest number of offers along with Flipkart, Grofers, Ola, Oyo, PhonePe and Uber.
At IIM Kozhikode, placements chairperson Shovan Chowdhury said that offers from auto, textile and telecom were lower but this was offset by more offers from ecommerce companies. Amazon led with 20 offers, followed by Flipkart (five), Myntra (two), Udaan (nine) and Walmart Labs (three). The highest stipend of Rs 3.2 lakh was offered by Colgate Palmolive.
TISS Mumbai confirmed that ecommerce, FMCG and consulting rolled out more offers than last year but automotive and banking sectors fell back. The highest stipend on campus was Rs 3.2 lakh from Colgate Palmolive and first-time recruiters included AC Fibernet, General Mills, Mars, Nivea and Yes Bank.
Boston Consulting Group sees its internship programme as a primary source of talent and will visit more than ten campuses this year to recruit about 100 interns, said managing director and partner Rahul Guha.
“The focus is to bring the best talent,” Guha said. “We see any softening of hiring by our traditional on-campus competitors as an opportunity to further strengthen our talent pool.”
Online automobile marketplace Droom is keen on summer placements as it has expanded overseas scale and wants to increase the core team size in those centres, said CEO Sandeep Aggarwal. It added two new profiles to its summer internship programme and will be visiting IIM Bangalore, apart from its regular roster of schools this year.
Udaan, an ecommerce platform for businesses, said it has nearly doubled the tally of B-schools it plans to visit and sees summer internships as an investment that will help identify future business leaders.
Unlike most B-schools, Mumbai’s SP Jain Institute of Management and Research (SPJIMR) conducts its internship programme — autumn placements — for second-year students, who will be graduating in 2020. On-campus trends, however, remain similar to others, with BFSI offers down to 26 from 35, and an increase in ecommerce numbers to 65 from 40 last year.
“Ecommerce increased from 16.74% last year to 27.31% this time,” said Abbasali Gabula, associate director, external relations, SPJIMR. “The number of students recruited by traditional NBFCs (nonbanking finance companies) and banking institutions has gone down. In general, firms have been conservative, given the muted growth prospects and credit crunch.”