Mumbai: While IIMs churn out crorepatis, IIM aspirants are turning CAT training classes into richer institutions.
IMS, a company that started as a coaching institute has evolved into a full-blown training institution. Started in 1977 with just 7 cat aspirants, the firm today has 50,000 students across 70 cities. It also trains students for GRE and GMAT exams. Coaching fees have risen ten-fold from Rs 2,000 in 1993 to Rs 22,000 today. Company turnover is growing at 30 percent a year and more plans are afoot.
John Gabriel, Head - Marketing, IMS said, “With regards to geographical location, we want to go to 250 cities and from a turnover perspective, it is difficult to put a figure but may be about Rs 500 crores company in the next 2-years."
Delhi-based Career Launcher, another training institute, started in 1995. Sharad Awasthi, COO, Career Launcher says, “We started with less than 100 students and in 2007 we will be assisting 50 000 plus students for various exams - majority being MBA. In terms of growth phases, In 2001 we had a turnover of Rs 8 crore and in 2007 it is Rs 80 crore.”
The institute now also trains students for IIT JEE, NLS and BBA exams. Fees have almost tripled from Rs 8,000 in 1995 to Rs 22,000 for cat training this year.
The number of CAT aspirants has also risen to 21 percent this year to 2-and-a-half lakh students. And its just less than 2 per cent will make it to the 1,500 seats available at the IIMS. but coaching institutes, which have mushroomed all over India, are raking in big bucks on the IIM aspiration.
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