IIM Mumbai: Why the institute is looking to make great strides in becoming a premier B-School

With that one stroke of the pen, it became the 21st Indian Institute of Management, joining the elite list. More importantly, it was the first that did not begin its journey as an IIM. That in itself makes this one unique. Soon, it was ranked sixth among business schools by the government’s National Institutional Ranking Framework (NIRF). That has set the institute up for the next stage of its journey.

Getting it Together

NITIE Mumbai was set up way back in 1963 with assistance from the United Nations Development Programme (UNDP) and the International Labour Organization (ILO). It was later renamed the National Institute of Industrial Engineering. The reason for setting it up was clear and, most importantly, relevant to the period.

“It was to train industrial engineers for a manufacturing renaissance,” explains Shashi Kiran Shetty, Chairman of the Board of Governance of IIM Mumbai and Founder and Chairman of the logistics major Allcargo Group. In fact, it only admitted engineers in those days. That was a very different era, when the newly-Independent India embarked on a path of rapid industrialisation, setting up factories to create a robust foundation for the new nation. In keeping with the priorities of those times, there was a strong emphasis on manufacturing, as it was the obvious route to generate mass employment for a large population and help it transition out of agriculture. A lot has changed in the intervening six decades, and today’s India is clearly very different, so everything has to be reoriented. NITIE could not be left out.

Shetty believes the time was right for NITIE to join the prestigious list of IIMs. “As a brand, NITIE was very strong, but in the dynamic world that we live in, a change was required,” he says. Manoj K. Tiwari, the institute’s Director, who had a 17-year stint as a professor in the department of industrial engineering and management at IIT Kharagpur, adds that an institute has to evolve with the times. “We got the maximum benefit out of the NITIE brand name and were ready to look ahead,” he says.

There were limitations to growth as well. NITIE came under the Ministry of Education and was looking for some autonomy. Shetty says he travelled to Delhi several times to convince officials in the government that the transformation to IIM Mumbai was critical. Understandably, the process took time since it needed to go through an Act of Parliament before getting the go-ahead from the PMO and finally the President of India. He does not hold back on crediting the government by saying they have brought about a transformation in education. “The forward-looking approach has been encouraging,” says Shetty, who recollects receiving a call from the government during the pandemic and being offered the position at NITIE.

“Our focus is now completely on the students and campus. With a better ranking and 100% placement, we are well set for the next round of growth,” says Tiwari, sitting in the conference room that offers a great view of the Vihar Lake, with the famed IIT Mumbai’s Powai campus just a short drive away. Tiwari’s academic background and Shetty’s business background prove an interesting combination as they keep throwing ideas for discussion. “India has had a long history of culture and education. Let’s not forget we produce some of the brightest minds in the world,” says Tiwari.

Though IIM Mumbai has become a reality, the folks here are not about to rest on their laurels. The institute has announced an investment of Rs 800 crore just to enhance its campus. It is looking to modernise and develop state-of-the-art facilities—all this, just within a year of being rechristened. “Yes, we are India-centric but also want to be a global gurukul,” Tiwari adds. There are 1,200 students across various programmes and the target is clear: creating skilled professionals in diverse functional areas like operations management, analytics, finance, marketing, project management, HR, information technology, and sustainability management. There is literally enough room on campus to accommodate this expansion. Shetty says there is enough FSI (floor space index, or the ratio of a building’s built-up area to the area of the plot that it occupies), meaning there is no need to cut any trees.

After the Rs 800-crore investment, the institute issued a veritable statement of intent. “The forthcoming facilities will include a sprawling net-zero campus of the future with world-class residential accommodation for faculty and students, start-up ecosystem development, management development programmes and a large auditorium,” it said. And if you think IIM Mumbai will be all about legacy businesses, then you are mistaken. The plan also includes an innovation centre focussed on banking, finance, and fintech, an artificial intelligence-based research hub, and a state-of-the-art library connecting students with global resources.

The plan is to host a prominent management training centre, offering certification courses, even undergraduate programmes, and serve as a focal point for industry leaders.

Maximum Benefit

Of course, this new IIM is born with a huge advantage thanks to its location in the financial capital of the country. Acknowledging that, Tiwari says the institute is “uniquely positioned” by just being in Mumbai.

“You just have to look at how much can be done on industry participation. That alone puts us in a position of strength,” he says. According to Shetty, while there are some very good business schools in Mumbai, the demand for more high-quality talent exists, and that will always be the case. “There is an opportunity to cater to sectors such as entertainment and sports. These are areas that interest today’s business school graduates, and we must capitalise on that.”

If one looks at the world of, say, finance, Mumbai throws up many options. Be it investment banking, insurance, equity research, or wealth management, the BFSI space is inextricably linked to the city. The institute has partenered with Motilal Ostwal Financial Services for financial research and to give its students a collaborative curriculum that it hopes will provide them a competitive advantage.

“Then we have the large corporations and industrial groups which become easily accessible,” adds Tiwari. He insists that institutes that are not located in the city may not have such easy access.

Is there pressure that comes with the new name just in terms of having to meet very high expectations? Not for Tiwari, on the back of a creditable NIRF ranking.

“The plan is to get the best out of Mumbai. There is industry, capital, and leadership in the city, making it a very unique proposition,” he says.

Starting an institute from scratch has its challenges, but IIM Mumbai’s journey is really about creating a new brand that has to be much, much stronger than what has been created.

“There are a lot of invisible advantages at our disposal, and we must work towards harnessing them,” Tiwari says.

@krishnagopalan