E-comm companies woo IIM grads

By Ruchi Shrimali

If IIM placements indicate industry trends, e-commerce companies are on a hiring spree. Apart from traditional favourite such as Investment Banks and Consulting & Technology companies, IIM grads are now choosing to join companies like RedBus, Snapdeal, LetsBuy & Myntra.com.

Though the salary packages offered by these companies are not always the best on offer, graduating students are choosing these e-commerce companies because they have enormous growth potential. They have fewer hierarchies and make it easier to take a big leap in their careers. E-commerce companies are also seen as an ideal place to be if one covets to be an Entrepreneur one day.

Pros and cons

E-commerce companies have a business model that is not yet time-tested. They are easier to launch. Hence, there is always a chance that they may lose their sheen soon enough and may be replaced by a better website. Amazon is facing a threat by Flipkart, which is founded by ex-Amazonians and is now faring better than Amazon.

Many of the e-commerce firms are hardly a couple of years old. Yet, they have the cash raised from venture capital and private equity firms and make interesting pitches. The number of IIM graduates joining the companies indicates that there are many who believe in the potential of these companies.

Dublin-based research firm Research and Markets has recently published a report which says that Indian e-commerce sector growing at a compounded annual rate of 40%. It is expected to grow from &5.9 billion in 2010 to reach market cap of $34.2 billion in 2015, with the growth of Internet penetration.

Opportunity well used

Just as state-run banks and PSUs had used the opportunity presented by global recession to hire IIM graduates in 2009, e-commerce firms has used the economy slowdown this year to pick up IIM graduates who can boost their growth.

First-timer recruiters at IIM campuses, such as RedBus, Letsbuy, Via, Valyoo Technologies and Snapdeal have picked up IIM graduates, both freshers and experienced professionals, at packages ranging from Rs 8 lakh to Rs 16 lakh. Myntra has widened its reach to IIM Bangalore campus by visiting more IIMs this year.

RedBus who was offering only summer internships to IIM students until now has already made two offers during IIM Indore campus placements. It will also visit IIM Bangalore, Kolkata and Ahmedabad soon. However, they are not planning to visit newer IIMs this year.

Snapdeal has made three offers to IIM Calcutta students, two to students from IIM Bangalore, and three to IIM Lucknow students to strengthen its technology, product and analytics teams. They have also hired an executive MBA from one of the IIMs.

Letsbuy that has recently joined hands with Flipkart has planned to hire four students from IIM Lucknow. As a first time campus placement recruiter at IIMs, it is planning to stick with older IIMs this year.

Valyoo Technologies that received $4 million venture funding from IDG Ventures a few months back has hired 12 students from IIM Indore and Lucknow across the functions. They have recruited candidates from marketing, operations, logistics and supply chain disciplines. It has hired candidates only with one to four years of experience and offered them annual salary packages between Rs 12 - 16 lakhs.

Myntra has made nine offers at IIM Lucknow and Indian School of Business. It is its second trip to IIMs. It has offered freshers Rs 13-15 lakh along with stock options and other benefits. It will soon visit IIM Ahmedabad too.

IIM Ahmedabad bagged the maximum offers

Till date, IIM Ahmedabad has bagged the maximum offers from international investment banks and consulting firms such as Boston Consulting Group, McKinsey & Co, Bain & Co, and Credit Suisse. The IIM-A candidates recruited in finance sector have received offers both in India and abroad. In 2011, an IIM Ahmedabad student had received an incredible offer of Rs 1.3 to Rs 1.5 crore from Deutsche Bank.

Though the economic outlook still seems to be volatile, IIMs are having a busy placement season this year and are going out of the way for accommodating more companies to offer more choice to their students. IIM Bangalore is using weekends for placements.

According to the experts, students can expect better volume of job offers this year while hike in salary packages is expected to be flat.

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