Mumbai Business School was just three years old when the owners were forced to close down the institution that promised youngsters a fast track to corporate careers.
It had business heavyweights behind it - including A Mahendran, the managing director of Godrej Consumer Products, Jagdish Sheth, a marketing guru, and Charles Kellstadt, a professor of marketing at Emory University in Atlanta - but they were unable to escape the cycle of boom and bust that has afflicted business education in India.
More than 130 institutes, or about 4 per cent of all business schools in the country, are expected to close this year. In comparison, last year, 40 schools sought closure, according to the All India Council for Technical Education (AICTE), which oversees business education in India and approves new institutions.
There are thousands of empty seats in business schools across India. Take the states of Maharashtra and Uttar Pradesh, which jointly have about 135,000 vacant places, some 40 per cent more than last year, AICTE says.
The global financial downturn and a lack of employment opportunities are the key causes, according to industry experts.
"The global crisis had everyone questioning the value of MBA education and what it was really teaching," says Chavi Bhargav Sharma, the director of the faculty of management studies at Manav Rachna International University in Faridabad. "There was a question mark on the way businesses are run. But the biggest reason is of course the job markets shrinking and smaller salaries."
The Mumbai research and ratings agency Crisil recently predicted that there would be a shake-out in the higher education space because of dwindling occupancy levels.
"Because many schools currently have low occupancy rates, they are having difficulties in sustaining their businesses, especially amongst the lower-rung colleges," says Ajay Srinivasan, the head of industry research at Crisil. "As a result, we are seeing several colleges having to close down their business or change in ownership over the next few years."
The downturn follows several years of explosive growth in the business school market. The difficult conditions have helped to separate the wheat from the chaff, and academics say many institutions proved unable to meet the real needs of India Inc.
"There was a sharp increase in MBA colleges from 2005 to 2008, driven by a general positivity about industry during that time," says Rajul Garg, a director at Sunstone Business School. "Many are now discovering that MBA schools require a high fixed-cost base. Hence, if they are not able to maintain a certain level of utilisation, they may struggle to service the costs. This means there will be more closure in the long tail of MBA schools."
Other factors have also helped to keep students away from business schools - faculty shortages, substandard curriculums and poor infrastructure - especially in rural areas. Running a business school is costly.
"Opening a traditional MBA school requires real estate, construction and government liaisoning skills for accreditation even before hiring faculty. This had led to a proliferation of schools with dubious quality," says Mr Garg.
Another is increased competition. India has nearly 4,000 business schools with a total capacity of 350,000 seats. Every year, about 60 MBA institutes emerge in the country, diluting the once-prestigious degree and causing the Indian MBA to lose its status, the experts say.
"MBA is an expensive degree, and earlier MBA graduates were paid fat salaries because the degree was considered worth it," Prof Sharma says.
"Today - with the MBA education under the scanner and the recession eating the salaries of MBA graduates, there are fewer takers. It is simple business … the brand MBA no longer is enough to sell."
Many new schools are discovering that this is a tough sector in which to compete. The best schools will always attract more applicants.
"While there are a number of MBA schools now, if you create a quality bar, very few will be above that," says Mr Garg. "Hence, it's a case of higher-quality institutes getting more and more applications and the rest lesser and lesser."
Previously, students would go overseas for further training, but certain Indian schools are struggling to keep up with the rest of the world.
"The global scenario has changed, too," says Prof Sharma. "The needs of businesses and their methods are undergoing transformation; MBA schools need to make a curriculum to meet the global needs. Only then they can expect to have full seats."
The gulf between the top business schools and run-of-the-mill institutions is widening. While India's top business schools are increasingly being recognised internationally, the remaining thousands of management institutes in the country have dismal standards of teaching. A reality check is needed in an industry that has for too long been focused on making a profit.
"The business schools need to analyse the market and then offer something that the other institutes are not offering," says Prof Sharma. "The mantra is innovation, quality and excellence and knowledge that is relevant and skills that make the students employable."
Some schools are taking steps to create innovative and niche programmes for working professionals that are adding value and can attract fresh crops of students.
"The solution lies in a little bit of reinvention and how we perceive MBA schools," says Mr Garg. "High costs can be driven down by offering education for those who work and [by] building curriculums around a practical workplace."
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Company%20profile
%3Cp%3EName%3A%20Tabby%3Cbr%3EFounded%3A%20August%202019%3B%20platform%20went%20live%20in%20February%202020%3Cbr%3EFounder%2FCEO%3A%20Hosam%20Arab%2C%20co-founder%3A%20Daniil%20Barkalov%3Cbr%3EBased%3A%20Dubai%2C%20UAE%3Cbr%3ESector%3A%20Payments%3Cbr%3ESize%3A%2040-50%20employees%3Cbr%3EStage%3A%20Series%20A%3Cbr%3EInvestors%3A%20Arbor%20Ventures%2C%20Mubadala%20Capital%2C%20Wamda%20Capital%2C%20STV%2C%20Raed%20Ventures%2C%20Global%20Founders%20Capital%2C%20JIMCO%2C%20Global%20Ventures%2C%20Venture%20Souq%2C%20Outliers%20VC%2C%20MSA%20Capital%2C%20HOF%20and%20AB%20Accelerator.%3Cbr%3E%3C%2Fp%3E%0A
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
More from Neighbourhood Watch:
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A foster couple or family must:
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- not be younger than 25 years old
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- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
GRAN%20TURISMO
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ICC T20 Rankings
1. India - 270 ranking points
2. England - 265 points
3. Pakistan - 261 points
4. South Africa - 253 points
5. Australia - 251 points
6. New Zealand - 250 points
7. West Indies - 240 points
8. Bangladesh - 233 points
9. Sri Lanka - 230 points
10. Afghanistan - 226 points
How much sugar is in chocolate Easter eggs?
- The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
- The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
- The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
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4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Bio
Born in Dubai in 1994
Her father is a retired Emirati police officer and her mother is originally from Kuwait
She Graduated from the American University of Sharjah in 2015 and is currently working on her Masters in Communication from the University of Sharjah.
Her favourite film is Pacific Rim, directed by Guillermo del Toro
if you go
The flights
Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes.
The hotels
Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes.
When to visit
March-May and September-November
Visas
Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.
Kanye%20West
%3Cp%3EYe%20%E2%80%94%20the%20rapper%20formerly%20known%20as%20Kanye%20West%20%E2%80%94%20has%20seen%20his%20net%20worth%20fall%20to%20%24400%20million%20in%20recent%20weeks.%20That%E2%80%99s%20a%20precipitous%20drop%20from%20Bloomberg%E2%80%99s%20estimates%20of%20%246.8%20billion%20at%20the%20end%20of%202021.%3Cbr%3EYe%E2%80%99s%20wealth%20plunged%20after%20business%20partners%2C%20including%20Adidas%2C%20severed%20ties%20with%20him%20on%20the%20back%20of%20anti-Semitic%20remarks%20earlier%20this%20year.%3Cbr%3EWest%E2%80%99s%20present%20net%20worth%20derives%20from%20cash%2C%20his%20music%2C%20real%20estate%20and%20a%20stake%20in%20former%20wife%20Kim%20Kardashian%E2%80%99s%20shapewear%20firm%2C%20Skims.%3C%2Fp%3E%0A
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Seemar’s top six for the Dubai World Cup Carnival:
1. Reynaldothewizard
2. North America
3. Raven’s Corner
4. Hawkesbury
5. New Maharajah
6. Secret Ambition
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
What is cyberbullying?
Cyberbullying or online bullying could take many forms such as sending unkind or rude messages to someone, socially isolating people from groups, sharing embarrassing pictures of them, or spreading rumors about them.
Cyberbullying can take place on various platforms such as messages, on social media, on group chats, or games.
Parents should watch out for behavioural changes in their children.
When children are being bullied they they may be feel embarrassed and isolated, so parents should watch out for signs of signs of depression and anxiety
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Last 10 winners of African Footballer of the Year
2006: Didier Drogba (Chelsea and Ivory Coast)
2007: Frederic Kanoute (Sevilla and Mali)
2008: Emmanuel Adebayor (Arsenal and Togo)
2009: Didier Drogba (Chelsea and Ivory Coast)
2010: Samuel Eto’o (Inter Milan and Cameroon)
2011: Yaya Toure (Manchester City and Ivory Coast)
2012: Yaya Toure (Manchester City and Ivory Coast)
2013: Yaya Toure (Manchester City and Ivory Coast)
2014: Yaya Toure (Manchester City and Ivory Coast)
2015: Pierre-Emerick Aubameyang (Borussia Dortmund and Gabon)
2016: Riyad Mahrez (Leicester City and Algeria)
The stats: 2017 Jaguar XJ
Price, base / as tested Dh326,700 / Dh342,700
Engine 3.0L V6
Transmission Eight-speed automatic
Power 340hp @ 6,000pm
Torque 450Nm @ 3,500rpm
Fuel economy, combined 9.1L / 100km
'How To Build A Boat'
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The%20specs
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