Government of India constituted a core group in 1990 to set up a strategic institution of management education in the plantation sector. Accordingly a blue-print for the Indian Institute of Plantation Management, (IIPM) Bangalore was prepared. This blue-print envisaged the Institute as a centre of excellence, to act as a think tank and an intellectual resource base for the plantation sector. It also envisaged the Institute as an exclusive sectoral school of management based on a new model intensive institute-industry interaction. After the acceptance of the blueprint by the Government, a steering committee of the Ministry of Commerce provided the initial thrust for setting up the Institute. In November 1993, the Institute was registered as an autonomous educational institution of higher learning, under the Karnataka Society Registration Act. It is jointly sponsored by the plantation sector and the Commodity Boards viz. Coffee Board, Tea Board, Rubber Board, Spices Board and Plantation Associations, viz. UPASI and Indian Tea Association (ITA).
Institute is actively supported by the Industry through its uniquely designed Faculty Finance Support Scheme. Commodity Boards and several leading corporates have instituted chairs at the Institute. Currently, the chairs have been instituted by Tata Tea Limited, Goodricke Group Limited, WIlliamson Magor Group and Tata Coffee Limited. In return, Institute provides intellectual support to the Industry through its research, brainstorming workshops and seminars etc.