The present work conceptualizes the idea of Academic Excellence in Management Education (AEM) in the Indian context. AEM is defined as a set of attributes that favourably and significantly contribute to a wide range of academic activities from faculty's perspective. The paper also describes grounded-theory approach for development of an instrument for measuring AEM. A total of 634 faculty members from 17 management institutes in India participated in a three-stage study by adopting a mix of qualitative and quantitative techniques. Finally, a 20-item instrument is obtained that assessed AEM across five categories and demonstrated adequate psychometric properties, viz. reliability, content validity and concurrent validity. As expected, AEM categories were found variously related to attitudes and performance of faculty members. Major implications of these findings are discussed, and future course of research is suggested.