Going global

Controversy surrounds IIM’s first offshore venture as its Singapore campus is set to open

Ranjit Bhushan Delhi

India’s first offshore business management course plans to operate from a mere 4,700 square feet area located in Singapore’s upmarket Mei Chen Road with classes held only in the evenings.

That is what Brand IIM’s first overseas venture proposes to have. Much after heat and dust had settled down about India’s premier management institute wanting to open up a branch in Singapore and subsequent units elsewhere, the IIM-Bangalore has submitted a detailed proposal to the Ministry of Human Resource Development (HRD) about its Singapore initiative. To begin with, IIM-B, as it will be called, will offer two programmes – a two-year part-time MBA and executive education for senior and middle-level executives. The part time MBA will involve 12 to 15 modules, with classes held during evenings between 7 pm and 10 pm.

But despite the decision of the govemment to allow the IIM to go ahead with its ventures abroad, several questions still remain unclear. Critics of the move question whether the London School of Economics would open branches in India? The answer would have to be a resounding no. Then why should IIM’s – India’s torch -bearer in the world for churning out world class corporate executives – be allowed to go outside the country where there itself is a great demand for quality management studies.

The genesis of the spat lies in the Memorandum of Association (MoA) signed in 1973 when the Indian Institute of Management came into being. The MoA then did not include any clause about expanding its activities outside the country – presumably no one then visualised how big these institutes would become. That was the line taken by HRD Minister Arjun Singh when the IIM first made its approach on opening up a branch in Singapore. After turning down the proposal in early February 2006, Singh had to rescind from his earlier decision. According to IIM Bangalore Director Parkash G. Apte the HRD Ministry had now agreed to the process of IIM-B amending the MoA for expanding its activities outside the country. Not just IIM-B, but the entire Board was unanimous on the decision.

According to political observers, there is no doubt that Arjun Singh came under tremendous pressure to capitulate. Apart from the crescendo that emerged from corporate hotshots and former IIM alumnae across the globe, no less then the President of India, A.P.J. Abdul Kalam, backed the IIM-B initiative. Others were equally vociferous. From Mukesh Ambani, who is on the Board of Governors of IIM-B, to other CEO’s, it appeared blasphemous not to allow the IIM to expand outside the country. After all, they argued, IIM-B was in 2003 listed as one of the top 100 business schools in the world.

IIMs resent the fact they have not been allowed to take wings, even though the demand for ‘Brand IIM’ abroad is growing. Dubai, China, Egypt and some South East Asian countries are eager to host IIM campuses on their soil. The government, they allege, is blind to the prospects of the equity that IIM’s could bring to ‘Brand India’.