What do – Axis Bank, BrandComm, CityonNet, Coca Cola, Fairwood, Fiat, First Data, Future Brands, Hindustan Food & Beverages Ltd., GreeneStep Technologies Pvt. Ltd., IDBI Federal LIC. Ltd, Impact Assessment Management Services, Innocean, L&T, Magic 9 Media &Consumer Knowledge Pvt. Ltd., Maxel, Minority Brand Creation & Management LLP, Pramati Technologies, Shree Shankara Hospital, SPI, Triature, Compegence, Opulence Business Solution Pvt. Ltd, Rediff and Unisys – have in common?
They gave summer internships to all 47 students of the first batch of the PGDM program at MYRA School of Business, Mysore. You may be going “Yeah, what’s the big deal? What are you guys bragging about? Every B School worth its salt gets its students summer internships. What’s so great? ”
We see, placing all 47 of our PGDM First Year students as a solid vote of confidence from industry for the thinking driving the MYRA School of Business. In this article we’ll talk about a few of these thought processes influencing what we do at MYRA.
We believe that increasing investments in India by foreign companies will increase the demand for trained managers. Here’s why.
Populations in developed countries like the USA, the UK, Canada, Germany, Italy, Japan, Korea and Spain are ageing. The US alone will have a quarter of its population in the retirement age bracket by 2025. Think about what this means for you as a youngster interested in a business career.
Retired people in developed countries tend to live longer, spend more on health care and medicines and tend to depend on fixed incomes. Also, children of retired people find themselves increasingly called on to help their parents financially. Thus, they set aside a portion of their monthly post tax income for parental support. What this means is that the money people have left to spend on goods and services is very likely to come under severe pressure. Over the next twenty years, companies in the developed world will find themselves forced to look for newer markets.
India offers these companies ample opportunities. Her population is among the youngest in the world. BTW, you represent India’s youth dominated population. As the current elections show, India is a vibrant, constitutional democracy. The growth in literacy and media industry in India have strengthened rule of law as the increasing anger and attacks on corruption demonstrate. Future Indian governments cannot afford to let foreign companies to simply import and sell their products and services. They will be voted out of power. The threat to political power will force the Indian political class to insist that foreign companies set up and run manufacturing plants in India as a means of generating employment opportunities for her bulging working age population.
The writing on the wall is clear –in the foreseeable future foreign companies will likely set up operations in India both in partnerships with Indian companies and on their own Asian companies, especially Japanese companies, are eyeing India as an alternative to China. Japan is heavily invested in the Delhi-Mumbai industrial corridor. The demand for trained managers by foreign companies in India thus shows signs of increasing significantly in the next ten years.
Ok, what about Indian companies? Will they too experience an expanded need for trained managers in the next ten years? You bet. You do not have to be a Nobel laureate to know that the demand in almost every product category will only increase in the next ten years. Take the wedding industry in India for instance. Hindu Newspaper estimates that the wedding industry is worth $40 billion a year (http://www.thehindubusinessline.com/industry-and-economy/the-changing-face-of-the-wedding-business/article5541899.ece). The value chain in the wedding industry includes companies like the on-line dating, on-line matrimonial, wedding-planning, fashion, jewelry, transportation, hotels, decoration, catering, photography, music, choreography and religious support domains. The wedding industry is expected to clock a 30 per cent growth rate. Now think about the demand for managers that follows from such growth.
Take another less known product category – used cars. Guess who’s playing in this market ? Heard of Maruti True Value, Mahindra First Choice and Carnation? Maruti True Value is a Maruti Suzuki company, while Mahindra First Choice belongs to the Mahindra conglomerate. Carnation Auto was started by the former head of Maruti Suzuki. These companies together control 15 percent of India’s used car market, which has just begun to transition from unorganized to an organized market. Maruti True Value had 507 outlets in 349 cities in December 2013, up from 429 outlets in 245 cities in 2012. Mahindra First Choice added 100 new dealerships in nine months in 2013. Adity Kalra, (http://blogs.reuters.com/india/2014/01/31/organised-players-growing-acceptance-boost-indias-used-car-market/), quotes CRISIL research as forecasting that the used car market would be a Rs.1.5 trillion industry by 2017, clocking a 16 per cent growth.
We can go on and on. When you have a large youthful population like India does, sooner or later, economic growth is bound to get on a fast track. People need roti, kapda aur makan at a minimum. When there are more people, the demand for rotis kapada aur makan goes up. So does the demand for security, education, clothing, housing, sanitation, drinking water, health care, banking, roads, transportation, energy, entertainment, communications and the stuff we associate with everyday life. It is this demand which generates a need for trained managers.
At the MYRA School of Business, we are committed to supplying industry with young managers equipped to work with people from diverse backgrounds to deliver results consistently. Our AICTE approved two-year PGDM and one-year PGPX programs emphasize on developing the abilities of our students to think creatively, communicate clearly and act decisively. We see our job as creating managers any company – Indian or foreign – would want to employ. Our hand-picked faculty, our teaching methods, our practice of excellence combine to produce the MYRA experience for our students – one which enables them to grow as persons and professionals. We are a down to earth school committed to providing value for money. Check us out. Visit http://www.myra.ac.in.
Dr. Nagananda Kumar
Executive Director, MYRA School of Business
April 20, 2014