Major IT- ITES Hubs in Indiapropertybytes.indiaproperty.com/LINKS/TCM/IT.pdf · 2.2 Delhi- NCR 24 2.3 Bangalore 32 ... and Kolkata as established contenders for attracting knowledge

India Research | September, 2006

Major IT- ITES Hubs in IndiaA Snapshot

�Major IT- ITES Hubs in India - A Snapshot

India Research | September, 2006

Major IT- ITES Hubs in India - A Snapshot

� Major IT- ITES Hubs in India - A Snapshot


Foreword 04

List of Abbreviations 05

Definitions and Illustrations 06

1. IT/ ITES Industry in India: An Overview 07

1.1 Global Position of India 08

1.2 India’s Advantages: Cost-effectiveness 08

1.3 Key Highlights of the Indian IT-ITES Industry 2005- 06 09

1.4 India-Based Service Provider Landscape 09

1.5 Indian IT Services Exports Scenario 10

1.6 Indian IT-ITES Exports by Geographical Regions 10

1.7 Indian IT-ITES Services Exports by Key Verticals 11

1.8 Employment Statistics 11

1.9 Developments in 2005-06 11

1.10 Indian Domestic Market 11

1.11 Composition of the Domestic IT-ITES Market 12

1.12 Future Outlook 13

1.13 Impact on Office Sector Market 14

2. City Profiles 15

2.1 Mumbai 16

2.2 Delhi- NCR 24

2.3 Bangalore 32

2.4 Hyderabad 40

2.5 Chennai 49

2.6 Pune 58

2.7 Kolkata 67

3. Summing Up 74

3.1 Comparison of Cities 78

Annexure 80

Key Contacts 85

Contents


India has emerged as a global outsourcing destination for IT services and IT enabled services (ITES) over the last decade due to its abundant English-speaking talent pool.

The Government is also actively promoting the growth of this sector by setting up IT Parks and Special Economic Zones (SEZs).

The IT-ITES sector has emerged as a key driver of commercial real estate in India’s metro cities. The traditional hubs for this were Bangalore, NCR-Delhi and Mumbai and over the years we are seeing the emergence of other cities like Hyderabad, Chennai, Pune and Kolkata as established contenders for attracting knowledge companies.

This industry is dependent on several factors. However, the primary ones are human resource / right talent availability and a robust infrastructure. Trammell Crow Meghraj (TCM) commissioned Ma Foi to undertake a human resource pool assessment study across India to gauge to what extent the manpower availability would affect this sector.

This document profiles the existing and emerging IT-ITES hubs and compares the destinations across several parameters such as real estate, infrastructure, human resources etc. This document would interest knowledge companies wanting to set up base in India or those already in and who are planning to expand to other cities.

Trammell Crow Meghraj (TCM) has been assisting corporate clients (including multinational companies) in the IT-ITES sector with advisory services on their location / relocation strategies and corporate services for purchase / leasing of space for their operations in India.

We hope this document proves as an important primer for those interested in a quick overview of the major IT-ITES hubs in India.

We hope you will find the document a useful reference material.

S. Srinivasan India Head - Consulting Practice [email protected] Cell: 09845627338

Foreword

DisclaimerIn most cases, Trammell Crow Meghraj has relied on market information, whether from public and private sources, and has ensured to the best of its ability the correctness and the validity of the same, by cross checking from various sources. However, property markets continue to be plagued by misinformation, non-disclosure and fragmentation, wherein almost inevitably some information is withheld in every case.To mitigate this, a structured and scientific approach has been undertaken for the study, which ensures, that proposed developments selected for study are promoted by reputed developers and corporate houses, with many of which Trammell Crow Meghraj has a professional relationship.Whilst every effort has been taken to provide authentic data and analysis, Trammell Crow Meghraj or any of its employees are not responsible for any loss, major or minor incurred on the basis of the information and analysis provided or are liable to any damages in any form or shape.


AP Andhra PradeshBDA Bangalore Development AuthorityBFSI Banking Financial Services InsuranceBSNL Bharat Sanchar Nigam LimitedBUA Built Up AreaBT BiotechnologyBTS Built To SuitBMTC Bangalore Metropolitan Transport CorporationBPO Business Process OutsourcingBOOT Built Operate Own and TransferCBD Central Business DistrictCAGR Compound Annual Growth RateCDMA Chennai Metropolitan Development AuthorityDMRC Delhi Metro Rail CorporationFY Financial YearFDI Foreign Direct InvestmentGDP Gross Domestic ProductHUDA Hyderabad Urban Development AuthorityHMDA Hyderabad Metropolitan Development AuthorityIT Information TechnologyINR Indian National RupeeITES Information Technology Enabled ServicesMNC Multi National CompanyMMR Mumbai Metropolitan RegionMSEB Maharashtra State Electricity BoardMIDC Maharashtra Industrial Development CorporationMRTS Mass Rapid Transport SystemMTNL Mahanagar Telephone Nigam LimitedNH National HighwayNHAI National Highways Authority of IndiaNCR National Capital RegionNA Not AvailableNASSCOM National Association of Software and Service CompaniesPC Personal ComputerRE Real EstateR&D Research and DevelopmentRIL Reliance Industries LimitedSEZ Special Economic ZoneSOHO Small Office Home OfficeSPV Special Purpose VehicleSq. ft. Square FeetSq. km. Square KilometersSEEPZ Santacruz Electronics Export Processing ZoneTNRDC Tamil Nadu Road Development AuthorityUSD United States DollarUS United States of AmericaUK United Kingdom

Abbreviations


Total Inventory

Total of built up area of all commercial office projects being actively marketed(completed, under construction and proposed) tracked for statistical purposes for making this document.

Under Construction

Total built up area of all commercial office projects, which are physically under construction at the end of second quarter 2006, i.e., quarter ended June 30, 2006.

New Deliveries

Total built up area of all commercial office projects, which have become ready to occupy in second quarter of 2006, i.e., quarter ended June 30, 2006.

Total Vacancy

Percentage of vacant space (available for lease) to the total space in all operational commercial buildings at the end of second quarter of 2006, i.e., quarter ended June 30, 2006.

Net Absorption 2nd Q 2006

Total built up area of commercial office space leased during second quarter of 2006, i.e., quarter ended June 30, 2006.

Net Absorption 2006

Total built up area of commercial office space leased till end of second quarter of 2006, i.e., June 30, 2006.

Definitions and Illustrations


IT/ ITES Industry in India:An OverviewChapter One

We have taken inputs from various sector studies already done and have tried to understand their ramifications in terms of associated IT-ITES related office space development.

Over the past two decades, Information Technology (IT) has become one of the fastest growing industries in India. IT and ITES are the key segments that have contributed significantly towards the industry’s export. Over time, India has established itself as a preferred global sourcing destination and will grow at a faster pace in this respect.

Indian IT-ITES companies have created their own service delivery models, entered into long term customer relationships, expanded their service portfolios, extended their service propositions beyond cost savings to quality and innovation and have tried to find sustainable solutions to various issues such as risk management, human capital attraction and cost management.

The Indian IT-Enabled Services and Business Process Outsourcing (ITES-BPO) industries have demonstrated superiority, sustained cost advantage, and fundament-powered value propositions in ITES.

India’s Key Advantages

• Cost effectiveness Over 30% to 40% improvements shown in cost effectiveness. It is lower for Asia Pacific.

• Resource pool 1.4 million graduates, 1 million technical resources.

• Cross value chain IT, call center, processing, R & D, analysis.

• Quality performance 10%- 15% improvements, e.g. increased costumer satisfaction for a US based financial services entity from 85% to 92%, increased accuracy of 95% to 98%.

• Time zone Time zone advantage of approx 10 hours USA, 5 hours Europe.

• Multiple location options 7 mega cities grown as IT- ITES hubs, another 8 tier II cities are emerging.

• World-class real estate More than 150 million sq. ft. of existing and upcoming office space with support infrastructure available across major cities

100%

80%

60%2002 2003 2006 2009 2012

2.2% 2.3% 3.2% 4.7% 7.0%

USD Billion

100 percent: 392 441 1194

100%

80%

60%2002 2003 2006 2009 2012

0.2% 0.3% 0.6% 1.3% 2.9%

USD Billion

100 percent: 792 881 2,198

India’s share of global IT services market

India’s share of global ITES market

100%

80%

60%2002 2003 2006 2009 2012

0.8% 0.9% 1.5% 2.5%4.4%

USD Billion

100 percent: 1,842 1,322 3,391

India’s share of global IT / ITES market

Note: Industry estimates up to 2012 are based on available short-term estimates and would need to be revised periodically based on actual performance.

Increase in overall market

share (IT and ITES) to 4.4 per cent by

2012

Source: NASSCOM-McKinsey. KPMG. 2003-2004


Indian companies are expanding their service offerings, enabling customers to deepen their offshore engagements. Moreover, the shift from low-end business processes to higher-value, knowledge-based processes is having a positive impact on the overall industry growth.

1.1 Global Position of India

As per a NASSCOM-KPMG study, India’s share of the global IT-ITES services and IT spending has significantly increased, with further growth potential from 0.8% in 2002 to 4.4% in 2012. India’s share of off-shored services (i.e. not located within the country) is expected to be even higher.

1.2 India’s Advantages: Cost-effectiveness

India has attained a global leadership position thanks to its resource pool, cost-effectiveness and supporting policies. It has been concluded, based on data shared by some of the leading companies in India, that sourcing services from India have helped client organizations reduce their cost base up to 60 percent (Source: Strategic Review 2006- The IT Industry in India).

Offshore Location: India Offers the Best Package

USD per annum (ongoing costs), per employee

People

Infras- tructure

Tax

• Agent and management costs

• Recruitment & Training

• ICT & Utility

• Tax

• Facility

Total

Source: DB Research

India Philippines Malaysia China Russia

5,300 5,500 11,000 7,700 14,450

211 232 232 232 580

992 1,476 1,584 1,594 1,000

1,520 1,605 1,900 1,900 2,600

0 0 0 0 3,350

8,032 8,813 14,716 11,416 21,980

Source: Strategic Review 2006- The IT Industry in India


USD Billion FY 2004 FY 2005 FY 2006

IT Services 10.4 13.5 17.7

-Exports 7.3 10.0 13.3

-Domestic 3.1 3.5 4.4

ITES-BPO 3.4 5.2 7.0

-Exports 3.1 4.6 6.2

-Domestic 0.3 0.6 0.8

Engineering Services / Software Products 2.9 3.9 4.8

-Exports 2.5 3.1 4.0

-Domestic 0.4 0.7 0.8

Total Software and Services Revenues- Of which, Exports (%)

16.7 22.6 29.5

12.9 (77%) 23.5

17.7 (78%) (80%)

1.3 Key Highlights of the Indian IT-ITES Industry 2005- 06

Indian IT Industry - Sector-Wise Break-up

Source: NASSCOM Annual Survey.

The Indian IT-ITES industry grew at a rate of 31 percent in 2005-06, registering revenues of USD 29.5 billion, up from USD 22.6 billion in 2004-05. Out of this, the share of the domestic market in 2005-06 was USD 6 billion – about 20%, the balance (80%) being exports.

The industry’s contribution to the national GDP has risen from 1.2 percent during 1999-2000 to 4.8% in 2005-06.

India’s strengths emerged clearly in 2005-06 through large client wins, cross-border mergers and acquisitions, movement of the industry towards stable pricing and a gradual positive shift in the outsourcing debate.

1.4 India-Based Service Provider Landscape

Category No. of Players

Share of India’s Total IT/ ITES Exports

Performance

Tier I Players 3-4 45% of IT Services4-5% of BPO

Revenues greater than USD 1 billion

Tier II IT Players 7-10 25% of IT Services4-5% of BPO

Revenues USD 100 million-USD 1 billion

Offshore operations of Global IT majors

20-30 10-15% of IT Services10-15% of BPO

Revenues USD 10 million-USD 500 million

Pure play BPO providers 40-50 20% of BPO Revenues USD 10 million-USD 200 million (Excluding top provider with USD 500 million)

Captive BPO units 150 50% of BPO Revenues USD 25 million-USD 150 million (top 10 units)

Emerging Players >3000 10-15% of IT Services5% of BPO

Revenues less than USD 100 million (IT) Revenues less than USD 10 million (BPO)

Source: NASSCOM McKinsey Report, 2005.

Most of the established big players (Tier I players) in this sector still command a much higher share of exports in the IT sector than the ITES sector.

�0 Major IT- ITES Hubs in India - A Snapshot

1.6 Indian IT-ITES Exports by Geographical Regions

The Americas and Europe remain the key markets, accounting for over 90 per cent of IT-ITES exports. However, export earnings from markets other than the US and the UK are also witnessing significant double-digit year-on-year growth.

1.5 Indian IT Services Exports Scenario

IT Services exports continue to lead Indian IT industry, accounting for approximately 55 percent of the industry aggregate (domestic + export) revenues, and they grew by 33 percent in the FY 2005-06.

Steady demand in traditional areas such as custom application development and application management is being supplemented by increasing traction in package implementation and software deployment, as well as relatively newer areas such as remote infrastructure management, IT consulting and software testing.

Indian IT Services Exports: Growth Trends and Share of Key Segments

Revenues (USD Billion)Employees (‘000)

215

297

398

13.210.0

7.3

FY 2004 FY 2005 FY 2006E

Outsourcing Engagements

33%Project Based Engagements

50%

Support and Training

11%

FY 2005

Note: Employee figures rounded to the nearest ‘000 Source: NASSCOM

Indian IT-ITES Exports: Share of Key Geographic Regions FY 2005

23%1%

68%

8%

Americas

Asia Oceania/Middle East

Europe

Others

Source: NASSCOM

11Major IT- ITES Hubs in India - A Snapshot

1.7 IndianIT-ITESServicesExportsbyKeyVerticals

Services exports in FY 2004-05 displayed continued strength in traditional vertical market segments including BFSI, manufacturing and telecommunications. Underlying the increasing geographic and vertical market penetration is the continuing supply-side maturity of the Indian industry. This is reflected in the ongoing scale expansion without compromising on quality or productivity. It is also evident in growing deal sizes and demonstrated abilities of India-based firms to broaden their service portfolio, leverage productivity and utilization levels to sustain competitiveness and enhance their global service delivery capabilities - while maintaining high levels of growth.

1.8 EmploymentStatistics

The total number of IT / ITES-BPO professionals employed in India is estimated to have grown from 284,000 in 1999-2000 to 1,287,000 in 2005-06, growing by over 230,000 in 2005-06 alone1. In addition, Indian IT / ITES is estimated to have helped create an additional 3 million job opportunities through indirect and induced employment. Indirect employment includes expenditure on vendors including telecom, power, construction, facilities management, IT transportation, catering and other services.

1.9 Developmentsin2005-06

The year 2005-06 also witnessed the coming of age of the Indian IT multinationals, with traditionally India-centric, indigenous players beginning to establish noticeable presence in other locations - through cross-border acquisitions, onshore contract wins and organic growth in other low-cost locations. Global majors continued to significantly ramp-up their offshore delivery capabilities - predominantly in India - vindicating the success of the global delivery model and highlighting India’s increasingly important role in the New World IT order.

1.10 IndianDomesticMarket

Complementing the continued growth in IT-ITES exports is a steadily evolving domestic market. Strong demand over the past few years has placed India amongst the fastest growing IT markets in the Asia-Pacific region. While hardware still accounts for the majority share, with spending on services and the outsourced model gaining noticeable

Domestic IT-ITES Market: Growth Trends

400360320280240200160120

8040

0

Revenues (USD Billion)

8.3 10.2 12.4

318352 365

Employees (‘000)

1Source:Department of Information Technology, Govt. of India, Annual Report 2005-06.

FY 2006 EFY 2005FY 2004

�� Major IT- ITES Hubs in India - A Snapshot

traction, growth in the domestic market is witnessing the early signs of service line depth that characterizes maturing markets.

Recognizing its potential, leading global players (Indian as well as MNC) are also focusing some of their attention on tapping the domestic market – with significant success. The revenue aggregate earned from the domestic market by the leading, predominantly export-focused Indian service providers has grown and several of the key IT outsourcing contracts awarded in the past year were won by MNCs. Global product companies are also aiming to introduce localized versions of their software products to drive usability and penetration.

As depicted in the above chart, the domestic IT-ITES market was valued at USD 10.2 billion in FY 2004-05 and is expected to exceed USD 12.4 billion, growing at nearly 22 per cent in FY 2005-06.

1.11 Composition of the Domestic IT-ITES Market

Hardware continues to account for a major share of the domestic IT-ITES spend - 53 percent of the total in FY 2004-05. In spite of continued pricing pressure in key categories, domestic hardware revenues grew by 23% percent in FY 2004-05 and are expected to maintain similar growth rates in FY 2005-06. Key vertical markets include Telecom, BPO, BFSI, manufacturing and education.

Domestic IT-ITES Market Share of Key Segments (%) 2004-05

53%

Hardware

IT Services

Software

ITES - BPO

34%

7% 6%

There has been a noticeable growth in demand for services - in scale as well as depth. Estimates for 2005-06 indicate a growth of 21 percent, with the services segment aggregate for the domestic market projected to cross USD 4.2 billion. This segment has grown from USD 2.1 billion in FY 2000-01 to USD 3.5 billion in 2004-05 at a CAGR of 11.5 percent over FY 2001-05. Domestic IT demand is witnessing a visible shift towards IT services and IT management as enterprises step up investments in enhancing their network infrastructures.

The domestic IT spending in India is at an inflexion point and there are numerous opportunities in the domestic sector that can help catalyze growth in the next 2-3 years. The key drivers for growth in the domestic market include:

��Major IT- ITES Hubs in India - A Snapshot

• Opportunities in verticals such as energy, BFSI, manufacturing, education, Telecom and Government.

• Increased penetration of computers in the household and SOHO segments.

• Increased investments in IT by the Central and State governments in e-governance initiatives.

• Rapid adoption of Internet broadband.

• Increased usage of non-PC devices, especially cell phones.

• Increased focus of Small and Medium sized software companies on domestic market.

1.12 Future Outlook

According to AT Kearney’s Global Services Location Index 2005 India ranks No.1 (ahead of China, Malaysia and the Philippines) for the second successive year as the most preferred destination of choice for the global outsourcing industry.

India occupies the top slot as a Cost-Sensitive Destination for outsourcing and is ranked a creditable 3rd in the People and Skills availability criteria, and the highest amongst the developing countries.

According to the industry association, NASSCOM (National Association of Software and Service Companies), the overall software and services sector will grow between 25-28% in 2006-07, clocking revenues of USD 36-38 billion. IT / ITES exports are likely to grow by 27-30% in 2006-07, posting revenues of USD 29-31 billion. With less than 10 percent of the market being currently addressed, a large market opportunity exists for the sector, which is likely to ensure sustained demand-led growth. Factors like the evolution of the global delivery model, unbundling of large IT outsourcing deals with larger India-based delivery shares, and the large contract values due for renewal over next two years, are some of the positive indicators for the sector.

India’s IT / ITES industry is on track to achieve the export revenue target of USD 50 billion by December 2008 as projected in the NASSCOM-McKinsey reports. With the right incentives, the industry could reach exports of USD 60 billion by March 2010, with the share of IT exports being USD 35 billion and ITES exports being USD 25 billion.

India’s IT/ITES Industry Export Revenues 2010 (Projected)

IT ITES

FY2004 Dec. 08 FY2010

Timeline

5.2

12

3035

25

20

0

USD

Bill

ion

10

20

30

40

50

60

14 Major IT- ITES Hubs in India - A Snapshot

Total Inventory of Office Space (million sq. ft.)

Total Inventory of IT- ITES Space (million sq. ft.)

Bangalore* 50.35 40.28

Chennai* 45.76 36.61

Delhi- NCR* 15.99 11.99

Hyderabad** 14.43 11.54

Kolkata* 19.42 15.54

Mumbai* 33.80 13.52

Pune** 23.27 17.45

Total 203.02 146.93

Source: TrammellCrowMeghrajFieldsurveys2ndQ,2006

*PrimarilyGradeAProperties|**GradeA&BProperties

Presently, the total inventory of office space across seven major cities is estimated at around 203 million sq. ft., which accounts for 147 million sq. ft. IT-ITES space.

A shortfall of 353 million sq. ft. is thus to be mitigated in next 6 years (by 2012) which translates into 58.8 million sq. ft. to be added every year. Presently, around 87.5 million sq. ft. of space is already under construction or forms part of new deliveries for the year 2006, and will be available for leasing over the next couple of years.

We seem to be well on the way of meeting this demand. However, the GDP growth should continue to grow at 9% as assumed in the study. The NASSCOM - KPMG projections need to translate into actual reality, and to be reflected in sustained demand for office space and absorption. The developers in India are world class and can easily meet this demand as and when it arises.

1.13 ImpactonOfficeSectorMarket

This robust projection will continue to impact the real estate demand for quality IT-ITES space. A NASSCOM- KMPG study2 predicts that if India’s GDP grows at 9% per annum; we will have 5 million people employed in this sector by 2012.

This would amount to (at 100 sq. ft per person) a demand of 500 million sq. ft. of IT-ITES space to be developed by that time.

2StrengtheningtheHumanResourceFoundationofIndiaITES.


The Indian IT-ITES industry is primarily concentrated in seven location clusters in India, viz. Bangalore, Delhi–NCR, Mumbai, Hyderabad, Chennai, Pune and Kolkata. Established players are now exhibiting interest in exploring destinations other than these seven cities, with the objective of minimizing costs and attrition rates. Some of these cities include Chandigarh (including Panchkula and Mohali), Kochi, Bhubaneswar, Thiruvanthapuram, Indore, Coimbatore, Ahmedabad and Jaipur.

We have focused on the primary seven cities and have profiled them in this section. Each city profile presents:

• The general facts about the city, such as population and economic activities.

• The facts about the IT-ITES sector in terms of number of companies, key players, talent pool and resource pool, attrition rates, gender balance, availability of real estate and supporting infrastructure.

• A city map marking the locations of the IT-ITES developments.

• A real estate market outlook of the commercial space in terms of demand, supply and trends in lease rentals.

• Comparative strengths of the city as an IT-ITES destination.

• Overview of IT parks in the city.

• An overview of the infrastructure availability in the city.

• Trammell Crow Meghraj’s comments on the city‘s future outlook in terms of IT-ITES related real estate development.

A list of major IT parks (existing and proposed) and their locations, indicative rentals and major occupiers is included as an appendix to each profile.

City ProfilesChapter Two


IT- ITES sector presence IT and ITES growth (Annual) IT - 40% - 60% ITES - 40% - 60%No. of IT- ITES firms (Total) IT - 265 ITES - 83No. of IT- ITES firms (NASSCOM Registered) IT - 124 ITES - 61IT- ITES activity Enterprise solutions, e-business, product engineering, embedded design and infrastructure management servicesIT- ITES majors present TCS, Infosys, Wipro, Siemens, Accenture, Patni Computers, World Network Services Players planning expansion or new facility Deutsche Bank, Lehmann Brothers, Bank of AmericaHuman Resources Talent Pool* 278,869Rosource Pool** 31,361No. of Higher Education Institutes 303Attrition Rates IT- 20%-25% ITES- 30%- 40%Migration Trends IT companies have on average 30-40% non-local employees whereas the ITES companies have lower percentage i.e. 5-15%.Gender Balance (Male to female ratio) IT - 70:30 ITES - 60:40Infrastructure & Real Estate AvailabilityInfrastructure Status AverageAirport connectivity InternationalPresence of STPI YesAvailability of IT-ITES Grade Real Estate YesCompensation (Million INR per annum)Entry / Junior level IT- 0.27 - 0.50 ITES - 0.12 - 0.3Middle level IT- 0.60 - 1.30 ITES - 0.35 - 0.80Senior level IT- 1.20 - 3.00 ITES - > 0.80

Mumbai: General Facts Geographic Location 18.96ºN; 72.82ºE

Climate Tropical, humid

Temperatures April - July: 30ºC - 35ºC Nov - Mar: 20ºC - 30ºC

Area 437.71 sq. km.

Population (2001) 16.36 million

Population Growth Rate 3.0% (1991- 2001, CAGR)

City Functions Finance, trade and commerce, services, administrative, IT & ITES

Factors governing real estate Sale of locked land assets for real estate development; Foreign Direct Investment

Investment in real estate market High investment activity

Case StudyMumbai

Key Strengths for IT-ITES development: Established corporate hub, availability of human resources with varied skills and experience.

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The commercial and financial capital of India, Mumbai, is a major political, cultural, and economic hub.

The Mumbai Metropolitan Region (MMR) generates about 5% of the national GDP and contributes over one-third of India’s tax revenues. It is one of the world’s largest cities and the 6th most populous city.


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WES

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IT-ITES Hubs

Railway Station

Central Railway Line

Western Railway Line

Harbour Railway Line

Airport

Express Highway

IT - ITES Locations

N


Central Business District

2,157,000 - - 20 - - 245

Suburban District 1 (Worli, Prabhadevi Parel)

2,175,000 108,000 - 18 - - 202

Suburban office market 1 (Bandra Kurla Complex)

10,626,000 1,105,000 - 10 - - 235

Suburban office market 2 (Andheri-Kurla)

7,539,000 222,000 - 12 - - 92

Suburban office market 3 (Goregaon, Malad)

4,687,000 2,770,000 - 5 - - 60

Powai / Vikhroli / Thane

3,622,000 1,684,000 - 20 - - 75

Navi Mumbai 3,001,000 400,000 - 30 - - 30

Total 33,807,000 5,589,000 - 17 2,430,000 4,973,000 134

Source: Trammell Crow Meghraj database (IT- ITES constitutes appx 40% of the office space market)

This table includes all single and multi-tenanted, Grade A office properties 25,000 sq. ft. or larger, excluding 100% owner-occupied and properties owned and occupied by govt. agencies. The numbers are indicative and gathered from primary and secondary sources.

Supply Mumbai currently has approximately 13.5 million sq. ft. of IT-ITES office space in the city. There is currently 5.58 million sq. ft. of IT ITES space under construction.

Demand The total annual absorption of IT-ITES space has been estimated at approximately 5.3 million sq. ft.

Vacancy Vacancy rates have dropped across the city and are currently in the range of 17%. The suburban business districts are also experiencing lower vacancy rates as fewer spaces are available and there is a strong demand from IT-ITES corporates.

Capital Values and Rental Rates Both capital and rental values are likely to remain under upward pressure due to increasing demand by corporates.

IT- ITES Real Estate Scenario

Office space: Absorption, Vacancy and Rents

Office Space Summary

Submarket TotalInventory

(sq. ft.)

Under Construction

(sq. ft.)

Total Vacancy

(%)


(sq. ft.)

Net Absorption 2006 (sq. ft.)

Average Asking Rent

(INR per sq.ft. per month)

New Deliveries

(sq.ft.)

0

500

1,000

1,500

2,000

2,500

3,000

3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 2Q 06 06

Net Absorption (thousand sq. ft.)Four Quarter Average

0%

5%

10%

15%

20%

25%

30%

3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q 06 2Q 06 0

20

40

60

80

100

120

140

160

Total VacancyAverage Asking Rents (INR/sq. ft./month)


Area

Govt sponsored

SEEPZ, Andheri 4.0 million sq. ft.

SEEPZ ++, Andheri 0.3 million sq. ft.

Millennium Business Park, Mhape , Navi Mumbai , MIDC 2.1 million sq. ft.

International Infotech Park, Vashi, Navi Mumbai, CIDCO 0.6 million sq. ft.

International Technology Center, Belapur, Navi Mumbai 1.0 million sq. ft.

Airoli Knowledge Park, Navi Mumbai 3.0 million sq. ft.

Privately developed

Total Operational 8.3 million sq. ft.

Total Under Construction 8.0 million sq. ft.

Total Proposed 5.6 million sq. ft.

Akruti Softtech Park, Andheri Raheja Info City, Navi Mumbai

Fairmont, Powai

Mindspace, Malad

Mumbai’s strengths as IT-ITES destination

• Mumbai accommodates the third-highest number of employees in the IT-ITES sector in any city of India.

• Mumbai ranks third among Indian cities for number of higher education institutes.

• Mumbai has the fifth-largest resource pool in the form of graduating students suitable for IT-ITES.

• Mumbai’s strategic location makes it a landing point for optical submarine cable network SEA-ME-WE 4.

• Mumbai has excellent human resource availability with varied skills and experience.

IT Parks in Mumbai3

Source: Trammell Crow Meghraj field surveys, 2006

3 All Grade A & B projects, which have been completed, under construciton and proposed stage.


Infrastructure Overview

Transportation

Mumbai has a very strong public transport system. The backbone of the city’s transport is the Mumbai Suburban Railway. It includes three separate networks – Western, Central and the Harbour line. Public buses run by the BEST cover almost all parts of the metropolis, parts of Navi Mumbai and Thane. Metered taxis are available across the metropolis. Auto rickshaws operate only in the suburban areas. Metro, an intra-city rapid rail transport system, is being developed and its Ghatokopar-Andheri-Versova line is scheduled to be operational by 2008.

Power Supply

Mumbai is the only city in India with a history of uninterrupted power supply. Major companies supplying power to Mumbai are BSES, Reliance Energy and Maharashtra State Electricity Distribution Co. Ltd. Power supply in Mumbai is not an issue for any company setting up operations.

Telecommunications

Mobile Services: Orange, BPL Mobile, AirTel, Reliance, Tata, Dolphin and Garuda.

Basic Telecommunication Services: MTNL, Tata Indicom.

ISPs (ISDN, Lease Lines and Internet): VSNL, DSL-Dishnet, Satyam Technologies, Roltanet, Reliance, MTNL, Hughes, BSES and High Speed Cable Internet.

Future Outlook • Navi Mumbai is an upcoming commercial destination. The TTC (Trans Thane Complex)

industrial belt on Thane Belapur Road is in demand owing to the strategic location, proximity and connectivity to Mumbai. Navi Mumbai SEZ will also bring a host of opportunities for development, including tax sops and other SEZ-related benefits.

• Today’s commercial market is driven by the IT-ITES sector, with requirement of Grade A developments with large floor plates at lower rentals as compared to CBD. This has made fringe areas of the city new activity centres, and the same is true for unused industries in south-central Mumbai as well.

• The gradual opening up of mill lands for development will have a significant impact on Mumbai’s real estate scenario, particularly in the commercial sector. It will substantially increase the supply of space in an area that has good connectivity and that offers larger floor plates, with a possibility of expansion at considerably lesser rates as compared to South Mumbai.

• Two recently approved IT-ITES SEZs covering approximately 67 hectares are expected to bring more supply of IT-ITES space in Mumbai.


Upcoming Developments

The city is gradually undergoing a transformation and several projects are underway in parallel. The biggest is the RIL SEZ – both Navi Mumbai and Maha Mumbai, which is likely to transform the Navi Mumbai region and give a new economic impetus to the city.

With plans for a new mass rapid transit and redevelopment of the present airport a lot of core inter city and intra-city connectivity issue would get addressed.

Several urban infrastructure projects are underway so as to achieve sustainability and carrying capacity of the city in response to added pressures on the city’s physical and social infrastructure, particularly to improve traffic and transportation capacity in Mumbai Metropolitan Region as a whole both capacity wise and quality wise. Some of the key projects planned /implemented are as follows:

MUTP and MUIP Projects

The World Bank funded Mumbai Urban Transport Project (MUTP) and Mumbai Urban Infrastructure Project (MUIP) focus mainly on strengthening of mass transport system, improvements in suburban railway services in terms of efficiency and capacity and other proposals of road improvements in the city with the objective of road network improvements and efficient traffic dispersal system in Greater Mumbai. The Govt of Maharashtra approved the estimated cost of INR 26,480 million and work is in progress for both these projects.

Andheri – Ghatkopar Metro Rail

This is the phase I of the Mumbai Metro Project. The foundation stone of the 12-km Versova-Andheri-Ghatkopar corridor had been laid in June 2006. The project has been awarded on BOOT basis to Reliance and the construction work is expected to commence shortly. The project is scheduled to be operational by 2008.

Mumbai International Airport Ltd (MIAL) Modernization and Privatization

The consortium led by Hyderabad-based GVK – Airports Company South Africa has been mandated for modernization and restructuring of Mumbai airport in Feb 2006. GVK was awarded the contract for privatization and modernization of the Chhatrapati Shivaji International Airport. GVK is undertaking this project along with Airports Company South Africa Limited (ACSA), The Bidvest Group Limited and Airports Authority of India. INR 52,000 million are committed to be pumped into this project for which the work has been started in and aim for closure of first phase of the project by 2010.

Appendix: Mumbai


Bandra Worli Sea Link

Bandra Worli Sea Link is planned on build-operate-transfer basis, which will have a six-km link between Bandra (at the beginning of the Western Express Highway) and Worli. The sealink is a “cable-stayed” bridge, at the cost of INR 13,060 million. The project is likely to be commissioned by December 2007.

Sewree Nhava Sheva Trans Harbour Link

Development of Mumbai Trans Harbour Link (THL), Road and Rail, aims to augment the capacity of arterial roads, linking Greater Mumbai to the rest of Mumbai Metropolitan Region (MMR). This will take place in Phases and it will provide connectivity to greenfield International Airport and SEZ, promoted by reliance and CIDCO, with the greater Mumbai via a Bridge from Sewree to Nava Shiva.

Name of the Complex Santacruz Electronics Export Processing Zone (SEEPZ)Location MIDC, Andheri (East), MumbaiArea of the Park 40.46 ha (100 acres)Saleable area -Area now available for allotment -Cost of the plot -Connectivity Well connected by road. Nearest railway station is Andheri which is 2.5 – 3 km awayWater Supply MIDCPower Supply Separate substation is installed and is operational for uninterrupted power supply to the

industrial units.Telephone MTNL telephone exchangeHigh Speed Data Optical Fibre Telephone Exchange, which cateres exclusively to the needs of Zone Units.Preferable industries IT Companies, Gems & Jewellery units and Electronics companies.Present status of the Complex Fully Operational

Name of the Complex Millennium Business ParkLocation Mhape, Navi MumbaiArea of the Park 48 acresArea now available for allotment 3,760,000Rentals INR 25 - INR 30 per sq. ft. per month (approx. USD 72 -USD 86/sqm/year)Connectivity It is situated just off the National Highway between Mumbai and Pune and 2 minutes from

the Ghansoli Railway Station and Koparkhairane Railway Station.Water Supply Available, provided by MIDCPower Supply Sub Station (22/11 KV)Telecom MTNL telephone exchangePresent status of the Complex Occupied

Name of the Complex International Infotech ParkLocation Vashi, Navi MumbaiArea of the Park 0.6 million sq. ft.Area now available for allotment -

Government Sponsored IT Parks


Rentals INR 40- INR 45 per sq. ft. per month (approx. USD 115 -USD 130/sq. m/year)Connectivity Office space complex at Vashi Railway Station.Water Supply AvailablePower Supply MSEBTelecom MTNL telephone exchangePresent status of the Complex Occupied

Name of the Complex International Technology Center, BelapurLocation Belapur, Navi MumbaiArea of the Park 1 million sq. ft.Area now available for allotment -Rentals INR 25 - INR 30 per sq. ft. per month (approx. USD 72 -USD 86 /sq. m/year)Connectivity Office space complex at Belapur Railway StationWater Supply AvailablePower Supply MSEBTelecom MTNL telephone exchangePresent status of the Complex Occupied

Name of the Complex Airoli Knowledge ParkLocation Airoli, Navi MumbaiArea of the Park 15 Hectare (1614587 sq. ft.)Saleable area _Area now available for allotment _Rentals INR 30 – 40 per sq. ft. per month (approx. USD 86-115 /sq. m/year)Connectivity It is situated just off the National Highway between Mumbai and Pune and 2 minutes from

the Ghansoli Railway Station and Koparkhairane Railway Station.Water Supply NMC (Navi Mumbai Municipal Corporation)Power Supply MSEBTelecom MTNL (Mahanagar Telecome Nigam Limited)Present status of the Complex Partly occupied

IT Parks by Private Developers in Mumbai


Note 1 Reliance SEZ is being planned at Navi Mumbai. This will add to the supply of IT ITES space considerably. However, the current magnitude of IT/ITES supply is unclear. 2 Only the IT-ITES component of the projects has been considered.

S.No. Project / Location Developer Built up area (million sq. ft.) Status

1 Dhirubhai Ambani Knowledge City Reliance Group 2.30 Completed2 Mindspace (Malad) K Raheja Corp 5.00 Completed3 Hiranandani- Lexington, Thane Hiranandani 0.13 Completed4 Winchester, Fairmart, Powai Hiranandani 0.09 Completed5 Godrej Campus, Vikroli Godraj & Boyce 0.80 Completed6 Commercial development- Powai Hiranandani 0.08 Under construction7 Mindspace, Malad K Raheja Corp 7.84 Under construction8 Hiranandani, Ghodbunder Road, Thane Hiranandani 0.10 Under construction9 K Raheja Infocity K Raheja Universal 5.49 Approval stage

10 Raheja Universal, Navi Mumbai Raheja Universal 0.08 Built to suit , planning stage11 Raheja Corp, Navi Mumbai Raheja Corp 0.10 Built to suit, planning stage


Delhi-NCR: General Facts Geographic Location 28.7ºN; 77.2ºE

Climate Semi-arid climate with extreme summers and winters

Temperatures April - June: 35ºC - 46ºC Dec - Feb: 12ºC - 25ºC

Area 1,483 sq. km.

Population (2001) 12.8 million (Delhi UA)

Population Growth Rate 4.2 % (1991 - 2001, CAGR)

City Functions Administrative, Services, Industrial, IT & ITES

Factors governing real estate Government initiatives, Public private partnership in suburbs

Investment in real estate market Global and Local

Case StudyDelhi-NCR

Key Strengths for IT-ITES development: Highest number of IT-ITES companies and resource pool for IT-ITES industry, advantage of Mass Rapid Transport System.

The capital of India, Delhi is a thriving world city and one of Asia’s most populous cities.

More than just a political capital, Delhi is an important centre of national governance, international commerce, education, tourism and culture. The suburban towns of Gurgaon and Noida have grown as corporate and IT-ITES hubs in the region.

IT- ITES sector presenceIT and ITES growth (Annual) IT - 40% - 60% ITES - 40% - 60%No. of IT- ITES firms (Total) IT - 368 ITES - 265No. of IT- ITES firms (Nasscom Registered) IT - 224 ITES - 145IT- ITES activity Development Centre, Call Centre, KPO, Transaction processing etc.IT- ITES majors present IBM, Genpact, Oracle, Am Ex, Convergys, Aviva, Citibank, Coca-Cola, GSK, General Motors, Gillette, HP, Nestle, New York Life, , Xerox, TCS, Interra, CSC, HCL, Connexant, EXL, Birlasoft and XansaPlayers planning expansion or new facility Reliance SEZ, Dells BPOHuman ResourcesTalent Pool* 282,708Rosource Pool** 37,870No. of Higher Education Institutes 315Attrition Rates IT - 25% - 30% ITES - 30% - 40%Migration Trends More than 40 percent of the working population is non-local. The feeder regions include UP, Haryana, Punjab and Himachal Pradesh.Gender Balance (Male to female ratio) IT - 70:30 ITES - 60:40Infrastructure & Real Estate AvailabilityInfrastructure Status GoodAirport connectivity InternationalPresence of STPI YesAvailability of IT-ITES Grade Real Estate YesCompensation ( Million INR per annum)Entry / Junior level IT - 0.22 - 0.50 ITES - 0.12 - 0.3Middle level IT - 0.50 - 1.30 ITES - 0.35 - 0.80Senior level IT - 1.20 - 4.00 ITES - > 1.20

IT- ITES Facts

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5. Building 9 (A,B) in DLF Cyber City

6. Building 10 (A,B,C) in DLF Cyber City

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8. The Corenthum


Supply National Capital Region currently has approximately 4 million sq. ft. of operational IT-ITES office space in the region. About 11 million sq. ft. of space is currently in different stages of planning or construction.

Demand The total absorption of IT space has been estimated at approximately 1.3 million sq. ft. in the 2nd quarter of 2006. Leasing activity has increased in the light of high demand.

Vacancy Vacancy rates in suburban areas, where most of the IT-ITES developments are located, are 7-10%. A decrease of 2-3% in past quarter has been observed.

Capital Values and Rental Rates Rental rates in IT-ITES buildings of the suburban towns of Gurgaon and Noida are INR 48-75 per sq.ft. per month. Capital values and rental rates have appreciated by 40% in the past quarter.






Submarket TotalInventory

(sq. ft.)

Under Construction

(sq. ft.)

Total Vacancy

(%)


(sq. ft.)

Net Absorption

2006 (sq. ft.)

Average Asking Rent


New Deliveries

(sq. ft.)

CBD (Connaught Place)

1,299,000 - - 5 20,000 35,000 200

Off CBD/ South Delhi Locations

2,103,000 1,513,000 - 8 50,000 75,000 175

Gurgaon 10,526,700 2,016,700 195,000 7 1,200,000 1,600,000 60

Noida 2,070,000 900,000 770,000 10 500,000 800,000 35

Total 15,998,700 4,429,700 965,000 8 1,770,000 2,510,000 118

Net Absorption (thousand sq. ft.)

Four Quarter Average

0%

5%

10%

15%

20%

25%

30%

3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q060

20

40

60

80

100

120

140

Total Vacancy

Average Asking Rents (INR/sq. ft./month)

3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q060

500

1,000

1,500

2,000

2,500


Area

Govt sponsored

DMRC IT Park- I, Delhi 0.3 million sq. ft.

DMRC IT Park- II and III, Delhi 0.6 million sq. ft.

Privately developed


Total Under Construction 7.4 million sq. ft.


Express Towers, Noida

Delhi-NCR’s Strengths as an IT-ITES Destination

• Delhi-NCR accommodates the second highest number of employees in the IT-ITES sector in any city of India.

• Delhi-NCR accommodates the second-highest number of higher education institutes, followed by Bangalore.

• Delhi-NCR has the second largest resource pool in the form of graduating students suitable for IT-ITES.

• Delhi-NCR has fourth-highest upcoming supply of IT-ITES real estate space in the country.

IT Parks in Delhi-NCR


Building 8 in DLF Cyber City, Gurgaon

DLF IBM Tower, Gurgaon

Uni Tech World, Gurgaon



Transportation

Public transportation in Delhi is provided by buses, suburban railways, taxis and autorickshaws. Buses are the most popular means of transportation and services are provided by Delhi Transport Corporation (DTC) and several private operators. The Delhi Metro is a world class mass rapid transport system that currently covers northern and Western Delhi. It is expected to cover Gurgaon and Noida by 2010, providing improved connectivity to the suburbs.

Power Supply

Delhi faces a power shortage resulting in outages, especially during the summer. The Delhi Government has privatized the energy distribution system and made huge investments to improve the city’s energy sector. Gurgaon and Noida also face the problem of powercuts. Many establishments maintain their captive power back-up systems to attain uninterrupted supply.

Telecommunications

The NCR has good telecom connectivity with basic, cellular, WLL and Internet services. The fixed line services are provided by MTNL, Bharti, Tata Teleservices and Reliance Infocomm. Mobile service providers include Bharti Cellular, Hutchison Essar, MTNL, Idea Cellular, Reliance Infocomm and Tata Teleservices.

Future Outlook • Gurgaon is expected to grow as a hub for multinational companies and Noida as hub of

predominantly Indian companies.

• The two major IT-ITES hubs of Gurgaon and Noida will receive a shot in the arm from improved connectivity by Delhi Metro.

• More companies are expected to develop their own campuses in suburban areas like Noida and Greater Noida.

• Twelve IT-ITES Special Economic Zones, consisting of an area of approximately 178 hectares, have been approved by the Government. This will bring a mega supply of IT-ITES space in the coming 2-3 years.



The city is seeing a major thrust in infrastructure investments, even the present airport is going to revamped on a private-public participation process and this will be initiated in the next couple of years. The capacity is going to be augmented and a new terminal to be built. Apart from these, the other initiatives and infrastructure projects in the region are listed bellow:

Major Infrastructure Projects

• Delhi Metro

• Extension to Delhi International Airport and Gurgaon by 2010.

• Extension to NOIDA by 2010.

• Extension to Meerut via Ghaziabad by 2015.

• Coverage of South Delhi by 2015.

• Will greatly improve intra-city and regional-level inter-city traffic and transportation.

• Total cost of Phase I (approximately 65 kilometers) estimated at INR 60,000 million (Apr 1996 prices) is expected to be approximately INR 105,710 million.

• Western Expressway (Kundli-Manesar-Palwal) - KMP Expressway

• Conceived as the next level of Outer Ring Road for Delhi with the objective of segregating city-bound and city-bypassing (inter-city) traffic.

• Eastern Expressway (Faridabad-NOIDA-Ghaziabad) - FNG Expressway

• Proposed eastern counterpart of the KMP Expressway.

• Conceived as the next level of Outer Ring Road for Delhi and immediate urban centres of NOIDA, Faridabad, and Ghaziabad.

• Upgradation of Delhi International Airport

• To be revamped under public-private-partnership model between Airport Authority of India and the GMR Group.

• Domestic and international capacity handling to be increased.

• Additional runways are proposed.

• Construction of Expressway between Delhi and Gurgaon on NH-8

• Construction is currently ongoing.

• Will considerably reduce travel time between Delhi and Gurgaon.

• Structured along Build-Operate-Transfer (BOT) model.

Appendix: Delhi-NCR


In addition, Government of Delhi is currently running High-Capacity Buses on pilot basis to ascertain their potential for augmenting public transport in Delhi. Moreover, impending Commonwealth Games in Delhi in 2010 is pushing for improvements in various city-level infrastructures, with proposal for construction of 2 additional bridges across the River Yamuna, thereby providing greater and better quality connectivity between Delhi and its eastern suburban development, such as NOIDA, Greater NOIDA, and Ghaziabad. Augmentation of electricity supply through additional power plants is under consideration. In addition, flyovers are under various stages of planning and implementation in various parts of Delhi, including a major flyover development between Delhi and Faridabad at the Badarpur Border, are in various stages of planning and implementation.


Location / Project Developer Built up Area (Sq. ft.)

Status

Delhi

IT Park- DMRC- I DMRC 300,000 Operational

IT Park- DMRC- II DMRC 300,000 Under Construction

IT Park- DMRC- III DMRC 300,000 Proposed

Gurgaon

DLF Cyber Greens DLF 850,000 Operational

DLF IBM Tower DLF 175,000 Operational

Unitech Trade Centre Unitech 200,000 Operational

Unitech InfocenterBuilding 1 & 2 (Phase I)

Unitech 940,000 Planned

Unitech Infocenter Building 3 (Phase I)

Unitech 460,000 Under Construction

Unitech Infocenter Phase II Unitech 1,400,000 Planned

Park Centra Business Park India 600,000 Under Construction

Building 8 in DLF Cyber City DLF 350,000 Operational

DLF Infinity (3 Towers) DLF 300,000 Under Construction

Vatika Technology Park Vatika Group 1,000,000 Under Construction

Vatika City Point Vatika Group 200,000 Planning

Vipul Tech Square Vipul Infrastructures 500,000 Under Construction

DLF Tower 9 A and 9 Bin Cyber City

DLF 1,250,000 Under Construction

DLF Tower 10A DLF 378,000 Under Construction, Planning

Unitech Techworld Cyber Park A Unitech 420,000 Operational

Unitech Techworld Cyber Park B Unitech 400,000 Under Construction

Unitech Techworld Cyber Park C Unitech 400,000 Under Construction

Unitech Techworld Cyber Park D Unitech 300,000 Operational

Noida

Logix Park Logix Soft-Tel Pvt. Ltd. 150,000 Operational

Logix Technopark IT Enfraservices Pvt. Ltd 500,000 Operational

Express Trade Towers Indian Express Multimedia Ltd. 250,000 Operational

Maple Corporate Park Clarion Group 270,000 Operational

The Corenthum Beaver-International Pvt. Ltd. 500,000 Under Construction

Unitech Info Space Unitech 200,000 Under Construction

Logix Infotech Park Logix Soft-Tel Pvt. Ltd. 200,000 Under Construction

Logix Cyber Park Logix Soft-Tel Pvt. Ltd. 1,200,000 Under Construction

List of major IT-ITES projects in Delhi NCR



Bangalore: General Facts Geographic Location 12.97° N and 77.56° E

Climate Dry tropical savannah type

Temperatures May - June: 21º C - 33º C Dec - Jan: 15º C - 25º C

Area 2,190 sq. km.



City Functions Services, IT & ITES, Industrial, Administrative capital of the state

Factors governing real estate IT-ITES development

Investment in real estate market Corporates

Case StudyBangalore

Key Strengths for IT-ITES development: Largest talent pool for IT-ITES industry, highest number of higher educational institutes, human resource with varied experience, pleasant weather conditions.

The ‘Silicon Valley’ and the ‘Garden City’ of India. Political capital of state of Karnataka.

Fifth largest city of India having services, IT-ITES, Industrial and Administrative activities.

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IT- ITES sector presenceIT and ITES growth (Annual) IT - 25% - 30% ITES - 40% - 50%No. of IT- ITES firms (Total) IT - 860 ITES - 118No. of IT- ITES firms (Nasscom Registered) IT - 185 ITES - 67IT- ITES activity Investment Banking support services, technical support, engineering design and GIS support services, call/contact centres and transaction processing companiesIT- ITES majors present Infosys, Wipro, TCS, Intelenet, HTMT, IBM, Accenture, Congnizant, Genpact, Siemens, HP, Compaq, HSBC. Players planning expansion or new facility Accenture, Advance Micro Devices, Synergy Images Pvt Ltd.Human ResourcesTalent Pool* 341,374Rosource Pool** 38,130No. of Higher Education Institutes 445Attrition Rates IT - 25% - 30% ITES - 40%Migration Trends Across the country. Migrants constitute 30-40% of the employee populationGender Balance (Male to female ratio) IT - 70:30 ITES - 60:40Infrastructure & Real Estate AvailabilityInfrastructure Status AverageAirport connectivity InternationalPresence of STPI YesAvailability of IT-ITES Grade Real Estate YesCompensation (Million INR per annum)Entry / Junior level IT - 0.25 - 0.40 ITES - 0.12 - 0.25Middle level IT - 0.30 - 0.80 ITES - 0.24 - 0.50Senior level IT - 1.20 - 1.80 ITES - 0.60 - 1.50

IT- ITES Facts


IT - ITES Locations

CORPORATIONBOUNDARY

NH 4

SH 17E

NH

7

PALACE

RLY. STATIONVIDHANASOUDHA

PERIPHERAL ROAD

PERI

PHER

AL

ROA

D

CITYMARKET AERODROME

TO CHENNAI

TO CHENNAI

NH 4

NH

7

CONURBATIONBOUNDARY

PROPOSEDINTERNATIONAL AIRPORT

PEENYAINDUSTRIAL AREA

TO SURJAPURA

TO HOSUR

TO A

NEKA

L

TO MYSORE

TO MYSORE

TO K

ANAK

APU

RA

EXPR

ESS

WAY

LINK R

OAD

ELEVATED

ROAD

NH 209

TO MAGADI

TO TUMKUR

TO D

OD

DA

BALLA

PUR

TO B

ELLA

RY

TO TUMKUR

BIDADI

KIADB INDUSTRIAL AREA(BIDADI)

KPC POWER PLANT

COMMERCIALTOWNSHIP

CORPORATE

TOW

NSHIP

KUMBALAGODUINDUSTRIAL AREA

MAINTENANCEAREA

UTTARAHALL

PERIPHERAL ROAD

BANNERGHATTA

JIGANIINDUSTRIAL AREA

SH 86A

ELECTRONICCITY

BAN

NER

GH

ATTA

RO

AD

VEERASANDRAINDUSTRIAL AREA

PROPOSEDTRUCK TERMINUS

TOYOTO PLANT

OUTER RING ROAD

INTERMEDIATE RING ROAD

OUTER RING ROA

D BANGALORE METROPOLITAN

BOUNDARY

Railway Line

Roads

Airport

Railway Station

IT-ITES Destinations

CII

6

18

19

26

27

1 21

17

24 13

2325

49101216

15

1428

3

2

11

20

5

8

7

1. Embassy Golf Link Business Park

2. Embassy Kirloskar Business Park

3. Manyata Embassy Business Park

4. Salarpuria GR Tech Park

5. Salarpuria Soft Zone

6. Salarpuria Infozone

7. Salarpuria Techpoint

8. Salarpiria Touchstone

9. Brigade Tech Park

10. Brigade Summit I and II

11. Brigade North Star

12. Prestige Tech Park

13. Prestige Featherlite Tech Park

14. RMZ Infinity

15. RMZ Next

16. RMZ Centennial

17. RMZ Ecospace

18. RMZ Futura I

19. RMZ Futura II

20. RMZ Ecozen

21. SJR Altius

22. SJR Arcus

23. SJR iPark

24. Adarsh Tech Park

25. Adarsh Software Park

26. Ozone Manay Tech Park

27. AMR Tech Park

28. Bagmane Tech Park

N


Supply Bangalore currently has approximately 12.4 million sq. ft. of IT-ITES office space in the city. There are numerous IT parks currently under construction in the city. These are expected to add approximately 7.84 million sq. ft. of IT-enabled office space by the end of calendar year 2006.

Demand The total annual absorption of IT space has been estimated at approximately 6.96 million sq. ft. Office space leasing activity is expected to rise with new supply entering the market. There is an increasing demand for larger floor plates, built-to-suit premises and quality infrastructure, which are available only in the suburbs.

Vacancy The vacancy level in the CBD is less than 7 percent as against 17 percent for the entire city. Vacancy levels have shown an increase in CBD owing to easy availability of Grade A office space with lower rentals in the suburbs.

Capital Values and Rental Rates Average rentals for Grade A office space is quoted at INR 60 per sq.ft per month in the Prime CBD area and INR 50 per sq.ft per month in the suburbs. Both capital and rental values have increased in the CBD and suburban areas. Rentals have dropped in the Whitefield area.






Submarket Total Inventory

(sq. ft.)

Under Construction

(sq. ft.)

New Deliveries

(sq. ft.)

Total Vacancy

Net Absorption 1st Q 2006

(sq. ft.)

Net Absorption

2006 (sq. ft.)

Average Asking Rent


Prime CBD 9,941,500 1,300,000 104,500 5 99,275 315,275 60

Non-Prime CBD 12,421,700 3,000,000 621,700 8 559,530 3,837,435 50

Suburban 27,994,900 5,000,000 5,074,900 13 3,428,435 6,787,435 30

Total 50,358,100 9,300,000 5,801,100 9 4,087,240 10,940,145 39

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q 06 2Q 06



0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q0635

36

36

37

37

38

38



Area

Govt sponsored

International Technology Park (ITP) 69 acres

Electronic City 330 acres

Export Promotion Industrial Park 288 acres

IT Corridor Project 19,000 acres

Privately developed

Operation total 5.3 million sq. ft.

Under Construction Total 10.6 million sq. ft.

Proposed Total 67 million sq. ft.(includes 1,450 acres proposed IT hardware park by Shapoorji Pallonji at Devanahalli)

International Tech Park, Whitefield

Bangalore’s strengths as an IT-ITES destination• Bangalore accommodates the highest number of

employees in IT-ITES sector in any Indian city.

• Bangalore has the highest number of higher education institutes in any Indian city.

• Bangalore has the largest resource pool in the form of graduating students suitable for IT-ITES.

• Bangalore has the second-highest upcoming supply of IT-ITES real estate space in the country.

• Bangalore has a favourable policy framework for IT-ITES development.

• Availability of human resource with varied experience, necessary skills for voice processes, fluency in spoken English, good voice, neutral accent and service orientation.

IT Parks in Bangalore

Source: Trammell Crow Meghraj field surveys

Brigade Tech Park

Salarpuria GR Tech Park-II

Prestige IT Park



Transportation

The city is well connected by road, rail and air to all the major cities in India. A number of international airlines connect Bangalore to cities across the world. The buses operated by Bangalore Metropolitan Transport Corporation (BMTC) are city’s primary mode of transport. The service covers all corners of the city. Additionally, auto rickshaws and rented cabs are also available. Bangalore Metro, an intra-city rapid rail transport system, is being developed and is expected to be operational by 2008.

Power Supply

Bangalore is subjected to load shedding, especially during the summer months. The Government of Karnataka is implementing a INR 2,500 million project to ensure uninterrupted power supply in areas coming under the Bangalore Electricity Supply Company (BESCOM). About 320 feeder lines are being installed as a part of the system improvement program.

Telecommunications

Bangalore has a robust telecom infrastructure. Basic or fixed line services are provided by BSNL, Tata Teleservices, Bharti and Reliance Infocomm. The mobile service providers are BSNL, Hutch, Spice, Bharti, Reliance and Tata Teleservices. There are a large number of ISPs-providing broadband services.

Future Outlook

• North Bangalore and the Southeastern corridor will continue to remain popular destinations for corporates seeking expansion and consolidation solutions for office space.

• Twelve upcoming SEZs for IT-ITES (covering 210 hectares) which have been approved by the Government are expected to bring a mega supply of IT-ITES space to Bangalore.

• With IT-ITES firms seeking additional office space in the city, rental and capital values are expected to remain buoyant in select micro-markets.



The city has witnessed many constraints due to its infrastructure but now several projects are on the anvil, which would rectify a lot of issues in the long run. The newer parts of the city are anyway being shaped by the IT-ITES sector and the knowledge economy will continue to drive the city’s economy. Some of the initiatives are being listed below:

1. Bangalore Helix

“Bangalore Helix “ is a project spread on an area of 100 acres. It is a biotech cluster being planned by the Karnataka Government which would support biotech units with common infrastructure and will comprise -

• Biotech Organizations

• Biotech Incubation Centre

• Biotech Business Centre

• Green House

• Animal Care Facility

• Common Effluent Treatment Plant

• IBAB

• R&D Institutions

2. Hi-Tech City

The Hi-Tech City in total is spread over 5,000 acres. In the first phase of this project the BDA is allotting 660 acres of land to organizations. These 660 acres is part of a total of 997 acres (the remaining 337 acres will go towards civic amenities). Subsequent phases will be developed contiguous to the first phase that is under development now.

The 8.5 km Hi-Tech City corridor between the proposed international airport at Devanahalli in the North and Electronic City in the South will be linked to the Outer Ring Road. The BDA is making this project a self-contained IT/BT hub with all civic amenities and infrastructure. Educational institutions, shopping, recreation, residential options within the plots allotted, apart from dual water lines and adequate power form part of the corridor’s facilities.

Appendix: Bangalore


3. Bangalore-Mysore Infrastructure Corridor

The Bangalore Mysore Infrastructure Corridor Project (BMICP) consists of the construction of a 111km long 4-lane (convertible to 6) toll, walled expressway, 5 townships and associated link roads, power plant and supporting infrastructure. The project is slated to cost upwards of INR 22.5 billion. The townships are planned to act as population counter-magnets to Bangalore, thus helping to decongest this burgeoning city.

4. Peripheral Ring Road

The proposed peripheral ring road (PRR) will have the following salient features-

• Total road length estimated at 109 km.

• Eight-lane highway planned.

• All the highways will be connected on the outskirts.

• 3,479 acres of land in 104 villages to be acquired for the INR 9.90 billion project.

5. International Airport at Devanahalli

The international Airport at Devanahalli located on the northern side of the city is under construction to cater to the increasing number of national and international business travellers. The salient features are -

• Area 1400 acres

• Cost of the project INR 19.3 billion

• Capacity 10 million passengers

• Expected completion 1st Qtr. 2008

6. Metro Rail Corridor

Due to the increasing congestion on the roads of Bangalore and transportation bottlenecks, the GoK has initiated the metro rail project which will connect the North- South and East- West parts of the city through a 33km long corridor.

• Length 33 km

• Cost of the project INR 64.0 billion

• Expected completion 2010



List of major IT Parks

S.No. Project Developer Location Build up Area (sq. ft.)

Average Lease Rental

(INR per Sq. ft. per

month)

Status/Expected Completion

1 Salarpuria GR Tech Park (Phase II)

Salarpuria Group of Companies

Next to Whitefield, ITPL

1,200,000 30-35 Completed

2 IBC Knowledge Park India Builders Corporation (Phase I)

Bannerghatta Road 700,000 37-38 Completed

3 Ozone Tech Park Ozone Properties Ltd.

Hosur Road 450,000 30-35 Completed

4 RMZ Centennial RMZ Corp Brookfield Campus I- 225,000Campus II- 200,000Campus III-200, 000

30 Completed

5 Technology Park Prestige Group Outer Ring Road 100,000 40 December 2007

6 SJR IT Park SJR Group EPIP Zone Whitefield

700,000 30-35 Phase I complete

7 Brigade Tech Park Brigade Group Whitefield 439,000 29 March 2006

8 Salarpuria Softzone Salarpuria Group of Companies

Outer Ring Road 800,000 38 December 2007

9 Salarpuria Touchstone

Salarpuria Group of Companies

Outer Ring Road 350,000 38 December 2007

10 Salarpuria Supreme Salarpuria Group of Companies

Outer Ring Road 200,000 28 Completed

11 RMZ Ecospace RMZ Corp Outer Ring Road 2,000,000 40 December 2006

12 Bharat IT Park Surya Constructions

Sarjapur Road 215,000 37 December 2007

13 Bagmane Tech Park Bagmane Group CV Raman Nagar 260,000 32-35 3 phases completed, new phase under construction

14 Janapriya Pride Engineers Synidcate

ITPL Road 300,000 35 December 2006

15 AMR Tech Park AMR Group Hosur Road 800,000 30-35 1st Phase completed

16 Manyata Tech Park Manyata Promoters Pvt. Ltd.

Ring Road 6,000,000 Under construction

17 Ecozen Business Park

RMZ Corp Outer Ring Road 110,000 30 Completed

18 Adarsh Tech Park (Warm Shell)

Adarsh Developers

Outer Ring Road 4,000,000 38 Launched

19 Cessna Business Park

Prestige Group Outer Ring Road 1,200,000 35 Completed

20 Fortune Soft Tech Upkar Associates Whitefield 150,000 28 Completed


Hyderabad: General Facts Geographic Location 17.37º N: 78.48 0 E

Climate Tropical

Temperatures Annual: 25 - 40º C

Area 1862 sq. km. (HUDA)

Population (2001) 5.75 million (HUDA)

Population Growth Rate 2.8% (1991 - 2001, CAGR)

City Functions State Capital, Industrial, Commercial

Factors governing real estate IT-ITES / Biotech, enabling state govt. policies

Investment in real estate market FDI and Local

Case StudyHyderabad

Key Strengths for IT-ITES development: Skilled workforce, good quality of life and physical infrastructure, enabling regulatory environment, proactive IT-friendly State Government.

Hyderabad, India’s sixth largest city and the capital of the state of Andhra Pradesh, has a rich cultural history dating back more than 400 years.

The city’s profile has undergone a dramatic transformation since the mid-90s owing to the rapid development of IT-ITES and other Knowledge-based industries like Pharma and Biotechnology.

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IT- ITES sector presenceIT and ITES growth (annual) IT - 40%-60% ITES - 50%No. of IT-ITES firms (Total) IT - 256 ITES - 84No. of IT-ITES firms (Nasscom Registered) IT - 106 ITES - 44IT-ITES activity ITES - Voice, non-Voice, and KPO IT - Engineering Design, ERP, CRM, C++, Java, .Net, Web DesigningIT-ITES majors present HP, Amazon, Verizon, Convergys, EXL, Infosys, TCS, KPIT, Zensar, Wipro, SitelPlayers planning expansion or new facility Infosys, Countrywide, SEM India, NTSI, Patni Computer SystemsHuman ResourcesTalent Pool* 134,894Resource Pool** 37,288No. of Higher Education Institutes 79Attrition Rates IT - 25% - 30% ITES - 35% - 42%Migration Trends Migrants constitute ~ 30% of employee population in IT - ITES industry. Sizeable outward migration to Bangalore.Gender Balance (Male to female ratio) IT - 65:35 ITES - 60:40 in IT- ITES formsInfrastructure & Real Estate AvailabilityInfrastructure Status GoodAirport connectivity InternationalPresence of STPI YesAvailability of IT-ITES Grade Real Estate YesCompensation (Million INR per annum)Entry / Junior level IT - 0.18 - 0.42 ITES - 0.12 - 0.25Middle level IT - 0.30 - 0.80 ITES - 0.30 - 0.55Senior level IT - 1.00 - 1.70 ITES - 0.80 - 1.70

IT- ITES Facts


IT - ITES Locations

NRailway Line

Roads

Airport

YELLAREDDI CHERUVU

STATE INSTITUTE

MED

AK RO

AD

BEGAMPETSANATNAGAR

MENTAL HOSPITAL

SIKKALAM CHERUVU

LANGATHOUSECHERUVU

NADMICHERUVU

ALWAL CHERUVU

BENCHERUVU

SANJIVAREDDI NAGAR

BRITISH LIBRARY

RAVINDRA BHARAT

KHAIRATABAD

RAJ BHAVAN

BOAT CLUB

PUBLIC LIBRARY

OSMANIAUNIVERSITY

JAMAL OSMANIACITY CENTRAL

LIBRARY

I.G. OF POLICE

STATE MUSEUM

Asif Nagar

JAWAHAR BAL BHAVANLEGISLATIVE ASSEMBLY

BOMBAY ROAD

Marre

dpalli Rd

TO B

ANGALO

RE

GOLCONDA FORT

LAL MASJID

TOMBS OF QUTABSHAHI KINGS

KHAZANA MUSEUM

LANGAR HOUSE

HYDERABAD

GANDHI BHAVAN

OSMANIA GENERAL HOSPITAL

GOSHAMAHAL STADIUM

AGRICULTURAL UNIVERSITY

NEHRU ZOOLOGICAL

PARK

MU

SI R

IVER

SIVARAMPALLE

NAGARJUNA SAGAR RD

UNIVERSITY RD

VIJAYAWADA RD

STATE ARCHIVES

NIZ

AM

ABA

D R

OA

D

PUNE ROAD

SARDAR PATEL RD

AMIRPET RD

GOVT GUEST HOUSE

FALAKNUMA PALACE

JAHANNUMA

IDGAH

FALAKNUMA

HUPPUGUDA

EDI BAZAR

VENKALESHWARA TEMPLE

DILSUKHNAGARASMANGADH FORT

Malakpet

RACE COURSE

KACHIGUDAABIDS

VIDYANAGAR

Salar Jung Museum

JAMA MASJID

COMMISSIONER OF POLICE

CHARMINAR

KARVAN

MECCA MASJID

CHAUMAHALLAPALACE

YAKUTPURA SAIDABAD

SARDAR PATEL RD.

NATIONAL POLICEACADEMY

AMBARPET

MUSI RIVER

Mushirabad

WARANGAL RD.

CENTRAL TRAINING INSTITUTE

ANDHRA MAHILA SABHA

TRIMULGHERRY

RAMAKRISHNAPURAM

MALKAJGIRI

LALLAGUDA

LALAPET

KUMMAGUTTA

NEHRU NAGAR

BOWANPALLI BAZAR

SECUNDERABAD

SECUNDERABADCLUB

ROAD TRANSPORTCORPORATION

IRSET

INDIRA PARK

APTDC

ITDC

SECUNDERABAD

ARTS & SCIENCE COLLEGE

Husainsagar Jn

AIRPORT

METTUGUDA

ALWALRASHTRAPATHI NILAYAM

CAVALRY BARRACKS

AMMUGUDA

SAIFLGUDA

YELLAREDDI CHERUVUERUVU

STATE INSTITUTENSTITUTEE SAN

AD

GOGOV

STA SAN

OAD

AA

OVOV

AVANAN

ABIDS

AV

DS

GARA

T RRDT RDDD

GUEST HOUST HGUEST H E

GARGA

TET

GG PUBLICBLIC

OSMANOUNU

STATE ARTE ARCSTA

IRSETIRSETABADDAD

MANNIVU

RCC

RAB

BENBENCHERUVUUCHERUVU

lli Rd

i Rd

RA

GUTTAGU

NPALLI BAZARNPA BAZ

NDERABADBA

alli Rd

RA

GUTGU

AAA

ND

Prime Residential AreasBanjara Hills, Jubliee Hlls,

Sri Nagar ColonyMadhapur

New CBD

Secunderabad CBD

HyderabadCBD

Proposed International

Airport

PrimeResidential Areas

Marepally & Contonment

PrimeResidential

AreasHubsiguda,

Tarnala

Hi-Tec City

Kondapur Hafeezpet

Manikonda Gachibowli

MANIKONDA JAGIRUDAFA

CYBERABAD DEVELOPMENT AUTHORITY

Seri Lingampalli Muncipality

QUTAB SHAHI TOMBS

GOPANPALLI

KANCHA GACHIBOWLI

HUDA RES. COMPLEX

TELLAPUR

NALAGANDLA

KONDAPUR

VATTINAGULAPALLE

KHANAPUR

NANAKRAMGUDA

RAYADURGA

GAFOORNAGAR

GACHIBOWLI

MADHAPURBEGUMPET

GUTTALA

PANMAKTHA

KHAJAGUDARAIDURGA

MANIKONDASHAIKPET

PAIGAH

MUNDALA KATWA

KOTHAGADA

KAITHALA PUR

MANIKONDA JAGIRJAMMANIKUDAFAAU

UTHORITRITHORITD DEVELOPMENT AUD DEVEVELO NV U

BOWLI

TTTADAD

IB

Hi-Tec

CityManikonda

Gachibowli

Kondapur

Hafeezpet

CYBERABAD


Supply Around 11 million sq. ft. of IT-ITES space is under construction in Hyderabad.

Demand IT-ITES contributes about 80% of the total demand of office space in the city. Currently, demand has far exceeded supply for ready-built, plug-and-play quality office space in the city. High-end demand is driven by IT-ITES companies.

Vacancy The average vacancy rates for IT-ITES office space in Hyderabad stand at 5%, lower in comparison to other cities.

Capital Values and Rental Rates Capital values are in the range of approximately INR 3500-4000 per sq. ft. for prime properties and in the range of approximately INR 2400-2800 per sq. ft. for non-prime properties.

Source: Trammell Crow Meghraj database (IT-ITES constitutes approx. 80% of the office space market)

This table includes all single and multi-tenanted, Grade A and B office properties 25,000 sq. ft. or larger, excluding 100% owner-occupied and properties owned and occupied by govt. agencies. The numbers are indicative and gathered from primary and secondary sources.





(sq. ft.)

Under Construction

(sq. ft.)

New Deliveries

(sq. ft.)

Total Vacancy

(%)


(sq. ft.)

Net Absorption

2006 (sq. ft.)

Average Asking Rent (INR per sq.ft per month)

CBD -1 Himayathnagar, Abids, Basheerabagh

495,500 - 228,500 4.4 10,000 25,000 25

CBD-2 SD Road, SP Road, Secunderabad

225,000 45,000 90,000 2.8 28,000 53,000 27

CBD-3 Begumpet, Rajbhavan Road, Banjara Hills, Jubilee Hills

2,481,000 287,000 1,167,750 3.4 314,500 434,600 32

Cyberabad Madhapur, Gachibowli, Kondapur

11,229,900 4,595,000 5,314,200 4.6 143,500 612,100 39

Total / Average 14,431,400 4,927,000 6,800,450 3.8 496,000 1,124,700 31



0%

2%

4%

6%

8%

10%

12%

3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q060

5

10

15

20

25

30

35



Built-Up Area


Under Construction 11.0 million sq. ft


Hyderabad’s strengths as an IT-ITES destination

• Software exports from Hyderabd recorded 51% growth in 2005-06 - well above the national average of 36%.

• Hyderabad has the third largest resource pool in form of graduating students suitable for IT-ITES.

• Enabling regulatory and policy environment owing to a proactive State Government.

• Presence of almost all major (MNC and Indian) IT-ITES companies.

• Good road, rail and air connectivity with the rest of the country.

• Abundant supply of ‘Grade A’ IT- ITES real estate office space at attractive prices.

• Presence of other Knowledge-based industries like Pharma and Biotechnology.

IT / ITES Commercial Space in Hyderabad

Cyber Pearl

Cyber Gateway

TCS UltraVanenburg IT park



Connectivity & Public Transport

Hyderabad is well connected to all parts of the country and the world by air. Hyderabad City has had an airport at Begumpet since the 1930s. This airport includes two terminals for domestic and international travel. It provides flights to all major destinations in India, as well as connections to locations in Middle East, Southeast Asia, Europe, America and Sri Lanka, with non stop flights to and from many cities in these areas. To meet the city’s growing demands, a project to build a much bigger and state-of-the-art airport is underway at Shamsabad, which lies on the outskirts of the city. The new airport, once completed, will provide much-needed infrastructure to handle large aircraft and international traffic. The airport is expected to be one of the best in this region and will feature world-class facilities. It is being developed to cater to a total of 7 million passengers a year and will, upon completion, be able to cater to 40 million passengers annually. The airport will occupy an area of 5,400 acres and will have the longest runway among Indian airports. This will enable it to handle the world’s largest passenger aircraft, the Airbus A380.

Hyderabad has a light rail transportation system known as the Multi Modal Transport System (MMTS). The MMTS connects various parts of the city with Hyderabad, Secunderabad, Lingampally and Falaknuma. Hyderabad is currently scheduled to develop a Metro system to help ease urban congestion. In national terms, Hyderabad (with emphasis on Secunderabad) is considered as one of India’s most important railway cities. The South Central Railway headquarters is located at Secunderabad.

Hyderabad is well-connected to many other major Indian locations, including Bangalore, Mumbai, Kurnool, Guntur, Nagpur, Warangal, Pune, and Vijaywada through either direct or intermediary locations. The highway (Expressway) network linking Hyderabad to various parts of the country is excellent. Indian National Highways NH-7, NH-9 and NH-202 pass through the city. The city has also one of the best laid-out internal road systems. A series of flyovers minimizes traffic congestion in the city. Many of the important roads are 3-lane on either side. A new Expressway called Hyderabad Outer Ring Road, about 160 km in length, is under development and will be operational by 2009.

Andhra Pradesh State Road Transport Corporation (APSRTC) established in 1932, operates a 19,000-strong bus fleet across the state. APSRTC is the largest state transport undertaking in the world and is listed in ‘The Guinness Book of World Records’. The APSRTC operates point-to-point bus services which connect important places within the city with good frequency.

Power Supply

There are about 29 of 33 / 11 KV substations, 3 with 132 / 33 KV capacity, one 66 / 33 KV capacity and another one with 132/ 66 KV capacity. These are located at strategic


points within the city limits. The State Government undertaking, AP Transco is the city’s distribution agency.

Telecommunications / IT Infrastructure

The Aandhra Pradesh Industrial Infrastructure Corporation (APIIC) and the respective developers provide Hyderabad with requisite bandwidth and internet/telecom infrastructure. The ISP operators include VSNL, Reliance and Bharti. The public sector (BSNL) and private sector GSM / CDM mobile services providers are present in Hyderabad, which is a part of the AP Telecom Circle.

Future Outlook

• The upcoming Special Economic Zones in and around Hyderabad (5 IT- ITES SEZs, covering appx. 60 hectares) are expected to bring in a mega supply in the future.

• IT/ ITES companies are expected to favour peripheral locations such as Madhapur and Gachibowli.

• With the Government’s consistent effort towards infrastructure improvement, including road widening, and other projects connecting the new growth corridors in the peripheral locations, more IT-ITES activity is expected.


HITEC City (AKA L&T Infocity)

The Hyderabad Information Technology Engineering Consultancy City (HITEC City) is a major technology township built in Hyderabad, India. It is marketed and maintained by L&T Infocity Ltd., a joint venture of Indian engineering giant Larsen & Toubro Limited (L&T) (which owns 89% of the venture) and the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) Limited (which owns the remaining 11%). Constructed on 151 acres (0.6 sq. km) of land at a cost of about USD 375 million, HITEC City is a self-reliant business park designed to leverage Hyderabad’s advantages -: IT training and very high quality manpower. The Andhra Pradesh Government has designated 5,000 acres (20 km²) around HITEC City as ‘Cyberabad’ in order to boost the development of IT infrastructure.

HITEC City encompasses the following areas:

• Madhapur • Gachibowli • Hateezpet• Vatingunapally • Manikonda• Pappalguda

HITEC City comprises of the following:

• Cyber Towers - Phase I • Cyber Gateway - Phase II • Cyber Pearl - Phase III • Raheja IT Park • Luxurious residential area for IT professionals • Several campuses by IT majors and MNC companies

Salient Features

• Scope for continuous expansion - With development taking place in a phased manner, office space will be continuously made available for the next 6-8 years, facilitating companies to expand within HITEC City.

• Seamless data and voice communication - through multiple service providers.

• Uninterrupted power - high quality and dedicated power through redundant feeders, with DG set backup.

• A home next door - Residential township of independent bungalows and apartment complexes proposed on adjacent 87 acres of land.

• Single-window clearance - Dedicated STPI cell for accelerated software exports and streamlined hardware imports.

• Host of incentives - by State and Central Governments.

Appendix: Hyderabad



Apart from the developments in HITEC City, there are many other factors that will make Hyderabad a truly global city.

• Generally, the entire area in and around Shamshabad is going to attract investments to the tune of around USD 16 billion in the next 5-10 years.

• Many promising developments in Hyderabad will result from the HUDA (Hyderabad Urban Development Authority) transforming into HMDA (Hyderabad Metropolitan Development Authority). HUDA, which covered Hyderabad for about 250 km radius, will be replaced with HMDA that will span across a radius of 700 km or more.

Some of these developments are mentioned below:

• Hyderabad International Airport: This will be Asia’s biggest international airport, spread over at least 5,500 acres (22 km²). This international airport will also serve as an international aviation hub for international air traffic from U.S, Europe and South East Asia. It will be operational from April 2008 onwards.

• Software Park: The Indian IT giant Infosys Technologies Ltd. will relocate its head office from the current campus in Bangalore to a campus at least four times in size in the Shamshabad area. Overall, this will translate into an area of 2000 acres (8 km²) for the development of various software products and services.

• Hardware Park: This will come up on an area of around 2500 acres (10 sq. km.) for manufacture of silicon chips. Land has been allotted for the establishment of manufacturing and R&D bases for Intel, AMD, Zen Technologies and many other reputed semiconductor MNCs.

• Semindia / Fab City: Hyderabad beat other contenders such as Bangalore and Chennai to bag the mandate for hosting India’s first semiconductor wafer fabrication or ‘Fab’ plant. This will be set up by SemIndia Inc. under license from the U.S-based chipmaker Advanced Micro Devices (AMD) Inc. with an investment of around USD 3 billion. SemIndia will also set up an assembly, testing, marking and packing (ATMP) facility close to the Fab unit. The SemIndia plant is expected to come up on 1,200 acres at Srinagar which is close to the upcoming Hyderabad International Airport at Shamshabad. Several states, including Karnataka and Tamil Naidu were campaigning for the Fab City Project.

• Nanotech Park: Intellect Inc., a Korean firm, is establishing itself over an area of 1100 acres and with an estimated investment of USD 1 billion. Manufacturing is scheduled to commence from around October, 2007. This company would provide direct employment to around 20,000 skilled personnel. Phase II of this undertaking is expected to reach completion by 2010, thereby creating a job pool of around 100,000 people.


• Gems & Jewellery Park: A land allotment of 200 acres to Geentajali Jewellers promises to translate into job opportunities for two thousand people by the end of 2008. Several MNC jewellers, most notably from Dubai, Singapore, Hong Kong and other countries, will follow suit.

• 7- Star Hotel and Golf Course: EMAAR Group of Dubai will launch a super-luxury hotel within close proximity to Hyderabad International Airport on a land area of around 700 acres. This will also contain a decently sized golf course.

• Knowledge Corridor: The Dubai Government is interested in partnership with AP to develop the Hyderabad Knowledge Corridor. The Project – the Hyderabad Knowledge Corridor – aspires to be the hub for all IT activities from animation to financial software. Dr. J.C. Mohanty, principal secretary to the IT and Communications Department for AP, said that this project will cover 20,000 acres (80 sq. km) of land stretching from Kanamet to Kollur covering about 34 revenue villages.

Name of Building Developer Location Total BUA in sq. ft. Status

Ashoka Cyber City Ashoka Builders Cyberabad 1,200,000 Planning Stage

Ashoka Software Park Ashoka Builders Cyberabad 1,200,000 Planning Stage

Divyasree Omega Divyasree Cyberabad 800,000 Planning Stage

DLF Cybercity DLF Gachibowli 4,500,000 Under Construction

Divyasree Arena Divyasree Uppal 3,000,000 Planning Stage

Lanco Mantri IT Park Lanco/Mantri Cyberabad 3,500,000 Planning Stage

Mindspace- Pocharam Rahejas Pocharam 100,000 Planning Stage

Others - Cyberabad 400,000 Under Construction

List of Upcoming IT Parks by Private Developers in Hyderabad



Chennai: General Facts Geographic Location 13.090 N: 80.170 E

Climate Tropical maritime


Area 1,180 sq. km.



City Functions Services, IT & ITES, Industry, Administrative

Factors governing real estate Large availability of land on the city outskirts and pro-developmental Government policies

Investment in real estate market FDI and RE Funds

Case StudyChennai

Key Strengths for IT-ITES development: Largest supply of IT-ITES real estate, high availability of human resource with strong functional expertise

The fourth-largest city of India, Chennai is a major trade centre. Traditionally, it has been the hub of economic, geographic and political activities in South India.

In the last three years, due to the increased IT sector activities in the city, Chennai real estate has been booming, attaining a significant place on national and international market.

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IT- ITES sector presenceIT and ITES growth (annual) IT - 50% - 60% ITES - 50%No. of IT-ITES firms (Total) IT - 264 ITES - 163No. of IT-ITES firms (Nasscom Registered) IT - 104 ITES - 36IT- ITES activity Development centres; high-end BPOs in financial services, healthcare and other back-officeIT- ITES majors present ITC, Infosys, Wipro, Accenture, Cognizant Players planning expansion or new facility Amazon, Dell, SitelHuman ResourcesTalent Pool* 181,528Rosource Pool** 34,205No. of Higher Education Institutes 162Attrition Rates IT - 15%-20% ITES- 25%- 40%Migration Trends From neighbouring states of Tamil Nadu, Karnataka, and Kerala. Migrants constitute 30 - 40% Gender Balance (Male to female ratio) IT - 70:30 ITES - 60:40Infrastructure & Real Estate AvailabilityInfrastructure Status Above AverageAirport connectivity InternationalPresence of STPI YesAvailability of IT-ITES Grade Real Estate YesCompensation (Million INR per annum)Entry / Junior level IT - 0.18 - 0.50 ITES - 0.12 - 0.30Middle level IT - 0.40 - 1.30 ITES - 0.35 - 0.80Senior level IT - 1.50 - 2.20 ITES - 1.20 - 2.00

IT- ITES Facts


IT - ITES Locations

N

PEROT SYSTEMS

AMERICORP TOWERS

GEE GEE COMPLEX

KRM COMPLEX

MAM IT PARK

FUGUN IT PARK

DLF TECH PARK

JAYANTH TECH PARK

OCEANIC TECH PARK

BELLICIA TOWERS

TIMES SQUARE

SURENDRA DEVELOPERSELNET

TIDEL PARK

ASCENDAS

CEE DEE YES

RMZ MILLENIA

RAMANIYUM IT PARKMAAN SAROVARPROP

RAYALA TECHPARK

ARIHANT ‘TECHNOPOLIS’

TRUE VALUE HOMES DEVP

RAJ KUMAR CONSTGMR

TECH SCAPE TOWER

KG 360 DEG

MPL FORD I

MPL FORD IISREE RAM BUILDERS

PRINCE FOUNDATION

RATHA’S IT PARK

ETL-CHENNAI ONE

SUN TECH PARK

CTS

TCS

CTS

POLARIS

OLIA TECH PARK

MARG SQUARE I&IIRAM TECH

ARVIND IT PARK

SATYAM

MARG DIGITAL ZONE

ECCI INFO PARKFUTURA IT PARK

ACCENTURE

INFOSYS

WIPRO

SHOLINGANALLUR

SEMMANCHERRY

NAVALUR

SIRUSERI

KELLAMBAKKAM

E GATE -APPASWAMYSRINIVASA SHIPPING LTD

SRINIVASA SHIPPING LTD

SRINIVASA SHIPPING INFOPARK

CITI LIGHTS IT PARK

MENKUR INFOSTREET WAVE

ALLIED MAJESTIC

SUCONS IT PARK

FULLER INDIA

XANSA

SUSHEN CONST.

Railway Line

Roads

Airport

Under Construction - IT Park

Existing - IT Park

PENTAMEDIA

X S REAL

RATHA’S IT PARK

CEE DEE YES

OLYMPIA TECH PARK I, II, III

AMTI TECH PARK

ROBIN IT PARK

PRESTIGE IT PARK

LANCER GESCO

ASHOK LEYLANDR.R.TOWERS

PRINCE TECH PARKHCL

HCL

R.R. SKYLINE

Chennai Biz Park (SEZ)

CCL CONS.

TCS

ARIHANT INSIGHT

CHENNAI

TIRUVALLUR

KANCHIPURAM

TIRUVALLUR

POZHAL LAKE(RED HILLS LAKE)

KORATTURTANK

CHEMBARAMBAKKAMLAKE

NH - 4

TO BANGALORE

TO TRICHY

TO MAHABALIPURAM

NH - 45

SEA PORT

PERUNGALATUR

ENNORE PORT SEZ

IT CORRIDOR(OMR)

GUINDY

AMBATTUR

MEPZ SEZ

NOKIA SEZ

AIRPORT

MAHINDRAWORLD CITY SEZ


Supply Around 26 million sq. ft. of IT-ITES space is under construction and around 20 million sq. ft. is proposed in Chennai.

Demand IT-ITES contributes about 90% of the total demand of office space in the city. Currently, demand has far exceeded supply for ready- built, plug-and-play quality office space in the city. High-end demand is driven by IT-ITES companies for Incubation spaces.

Vacancy Vacancy rates in newly delivered office spaces are less than 10%. So far, most office space developments have seen the maximum absorption rate in three to eight months.

Capital Values and Rental Rates Office spaces in the IT corridor are available for lease and outright sale at INR 38.5-46.0 per sq. ft. per month and INR 2370-3770 per sq. ft. respectively.







(sq. ft.)

Under Construction

(sq. ft.)

New Deliveries

(sq. ft.)

Total Vacancy

(%)


(sq. ft.)

Net Absorption

2006 (sq. ft.)

Average Asking Rent


OMR 20,786,000 17,335,000 2,400,000 - 2,400,000 2,400,000 38

Guindy 4,678,000 2,167,000 1,000,000 - 1,000,000 1,740,000 33

Ambattur 7,170,000 6,730,000 - 8 - - 27

Egmore 834,000 570,000 - - - - 33

Porur 4,240,000 4,240,000 - - - - 30

City centre (CBD areas)

5,442,000 789,000 80,000 2 78,400 267,400 55

Other Areas 2,618,000 2,171,000 600,000 2 588,000 588,000 29

Total 45,768,000 34,002,000 4,080,000 - 4,066,400 6,270,400 39

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

3Q 04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06

Net Absorption (thousand sq. ft.)Four Quarter Average

0%

1%

2%

3%

4%

5%

6%

7%

3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q060

5

10

15

20

25

30

35

40

45



Area

Govt sponsored

SIPCOT Information Technology Park, Siruseri 1,000 Acres

TIDEL Park 1.2 million sq. ft

ETL Chennai One Tech Park 1.2 million sq. ft.

IT Park at Mahindra City 1,400 Acres

Privately developed

Operation total 5.4 million sq. ft.

Under Construction total 20.3 million sq. ft.

Proposed Total 20.0 million sq. ft.

Prince IT Park

Chennai’s strengths as an IT-ITES destination• Chennai ranks 4th in the highest number of employees in India’s

IT-ITES sector

• Chennai ranks 4th in highest number of higher education institutes

• Chennai has the 4th largest resource pool in the form of graduating students suitable for IT-ITES

• Chennai has the highest upcoming supply of IT-ITES real estate space in the country, which would stabilize rentals in the future

• Chennai has a favourable policy framework for IT-ITES development

• High availability of human resource with strong functional expertise in accounting, finance etc.

IT Parks in Chennai


Cognizant

TIDEL IT Park

Accenture



Transportation

Chennai is connected to all major Indian cities by air, rail and road network. Four national highways pass through Chennai connecting to major cities in the country. In addition to the Government-run interstate bus services, there are also many private intercity and interstate bus companies that operate services to and from Chennai. All the major domestic airlines have multiple flights to various locations. Many major international airlines have regular direct flights to and from Chennai, including Air India, British Airways, Lufthansa, Singapore Airlines, Air Lanka and Malaysian Airlines. Intra city transport is provided by buses and trains. The Metropolitan Transport Corporation (MTC) operates an extensive bus service covering the entire city. In addition to the bus services, mini-bus services are present in the suburbs. Vans popularly called ‘Maxi Cabs’ also ply many routes in the city. Chennai also has an elevated MRTS suburban train system, which is currently in the process of expansion. Hired transport options include metered taxis and auto rickshaws.

Power Supply

Chennai has a comfortable power situation and does not have power outages. There is a continuous supply of good quality power and the tariffs are 15 - 20% lower than in other major Indian cities.

Telecommunications

Chennai has excellent telecom infrastructure. It is the landing point of ‘i2i’ submarine cable linking Chennai with Singapore. Bandwidth capacity is 8.4 Terabits per second (tbps), the largest in the world.Fixed telephone services are provided by four companies - BSNL, Tata Indicom, Reliance Infocomm and Airtel. Mobile telephone service providers include BSNL, Hutch, Airtel and Aircel which offer GSM services while Tata Indicom and Reliance Infocomm offer CDMA services. The phone companies also offer broadband internet access.

Future Outlook

• More transactions are expected with increasing demand from IT-ITES / retail companies entering Chennai

• Rentals are expected to increase in the suburbs and remain stable in CBD

• Twelve IT-ITES SEZs encompassing 360 hectares have been approved in and around Chennai. This is expected to boost supply of IT-ITES space.



The city is seeing a major thrust in infrastructure investments, even the present airport is going to revamped on a private-public participation process and this will be initiated in the next couple of years. The capacity is going to be augmented and a new terminal to be built. Other than that the other initiatives in the city development and upgradation are listed below:

Major Infrastructure Projects

IT Expressway

• Tamil Nadu Government has declared the 20 km stretch of Old Mahabalipuram Road from Madhya Kailash to Siruseri in the first phase and planned upto Mahabalipuram in second phase as IT Corridor.

• IT Expressway will be a 6-lane world-class highway with all attendant facilities.

• Project implemented by TNRDC though a SPV called IT Expressway Limited.

Outer Ring Road

• The CMDA’s ambitious ‘Outer Ring Road’ covering 62 km is to be done on BOOT mode.

• Phase – III of Metro (MRTS) from Velacherry to St.Thomas Mt.

• Flyovers at 5 locations along Inner ring road.

• New International airport on 1440 acres north of existing airport.

• Project Development activities for 92 km of Chennai to Tirupati Road (NH 205) from Tiruvallur to Renigunta.

• Improvement of Chennai Airport Road.

Ennore – Manali Road Improvement Plan (EMRIP) – Chennai Port Connecting Project

• Widening of Ennore Expressway for 6.8 km stretch connecting Chennai Port to the National Highway Network and Improvement of other arterial roads.

• Estimated Cost – INR 1,500 Million.

• Project Implemented by NHAI under the Port Connectivity scheme of the Prime Minister’s Highway Development Programme.

• TNRDC appointed as Project Management Associate of NHAI.

Multi level grade Separators at Major junctions

• The National Highways Authority of India (NHAI) proposes to construct grade separators at the Kathipara, Koyembedu and Padi junctions, a flyover near the Chennai airport and an underpass, connecting Tirusulam railway station and the airport.

Appendix: Chennai


• The traffic volume in terms of car units was 0.27 million a day at the Kathipara junction, 0.25 million at Koyambedu and 0.14 million at Padi.

Widening of Chennai Bypass

• NHAI would also widen the Chennai Bypass Phase I and Phase II from two to four lanes at a total cost of INR 4,800 million.

• In Phase I, the widening of the bypass on the National Highway (NH) 4 and NH 45 would include the construction of an underpass near Irumbuliyur to facilitate traffic flow from Tambaram and the airport to the bypass. A service road would be provided for the movement of the local traffic.

• In Phase II, the four-lane bypass would start at the Maduravoyal Junction on NH 4, where a full clover-leaf structure would be provided. It would join NH 5 near Madhavaram, where provision would be made for a trumpet interchange.

In the Tamil Nadu Budget 2006-’07, Chennai is anticipating host of benefits like

• An extent of about 30 million at Oragadam near Chennai has been selected for establishing the automotive testing centre.

• Following the huge success of the first Tidel Park, second Tidel Park at Taramani in Chennai is proposed.

• Considering the increasing demand for housing and basic amenities in Chennai this Government has proposed to create Satellite towns near Chennai.



List of major IT Parks

Name and Developer Location Total Built-Up in

million sq. ft.

Indicative Lease rentals

(INR per sq. ft.)

Absorption

Elnet Software Park, ELCOT Taramani 0.16 40 100% Aviation Software, California Software, SIP Technologies, Ford, @road etc.

TIDEL Park, ELCOT Taramani 1.20 53 100% Satyam, TCS, Wipro, Covansys

Arihant e-Park, Arihant Foundation

Lattice Bridge Road, Adyar

0.10 34 100% GM, Syntel, Laser Word

Cee Dee Yes IT Highway, Navalur

0.10 30 100% CTS

RR Towers III, RR Builders Guindy 0.16 30 100% US Software, I-sewa, Alcatel

Prince Tech Park IT Highway, Kandan Chavadi

0.28 32 Leased to KLA Tencor, Maersk

Dowlath Towers/Ramaniyam Builders

Kilpauk 1.00 33 100% Bahwan Cybertek, Lason

The Lords, Ramaniyam Builders Guindy 1.60 40 100% Virtusa (P I) Cullabnet, Brookes Automation (P II)

Ascendas IT Park Taramani 1.50 40 100% (Phase I) I-nautix, Profit Logic Software, Paris Bijoux, Emerson

Krishna Constructions Anna Salai / Saidapet

0.23 34 100% 24/7, Philips, Oracle, Citibank, HDFC, Foster Wheelers

Standard Towers, CeeDeeYes Velachery 0.12 NA 100% Sutherland

Marg Constructions Karapakkam, OMR

0.22 28 100%, TCS

KRM Center Chetpet 0.15 NA 100%

Sri Kausalya Constructions Sholinganallur 0.11 27 100%, Satyam

Arihant Technopolis, Arihant Kandanchavadi, OMR

0.22 32 100% leased to HCL

Sai Real Tech Park, Real Value Promoters

Velachery 0.22 30 100%, TCS

Bascon IT Park, Baskhara Constructions Pvt. Ltd.

T. Nagar 0.13 40 36,000 sq. ft. – Airtel

Olympia Tech Park, Khivraj Estates Pvt. Ltd.

Guindy 0.15 40 Verizon, Hewitt, HP, ABN Amro (P I), GRO (P II)

RR Towers IV, RR Builders Guindy 0.24 35 Flextronics, Alcatel

RMZ Millenia MGR Road 0.50 35 Aviva, EDS, Ford

Marg Square, Marg Construction

Karapakkam 0.20 32 Satyam

ASV Constructions Mettukuppam, OMR

0.36 36 US Technologies

Real Value Promoters Anna Salai 0.15 45 Kanbay

Bellicia, TVH Santhome 0.33 50 Scandent, Hutch, etc

GMR Perungudi, OMR 0.31 32 CTS

Prince Varalakshmi Tech Park, Prince Foundations

Ambattur 0.30 34 Intellinet (75,000 sq. ft.)

Rayala Group of Companies Old Mahabalipuram Road

0.12 35 Marketing stage

RMZ Millenia RMZ (Phase I) Perungudi 0.45 35 100% by Aviva, EDS, Ford


Name and Developer Location Total Built-Up

in million sq. ft.

Indicative Lease rentals

(INR per sq. ft.)

Absorption/ Status Expected Completion

Chennai One – ETL Infrastructure Ltd.

Thoraipakkam 1.40 35 50000 sq. ft. leased to Sutherland Global April 2006; 35000 sq. ft. to Flextronics

Nov 2006

Futura, Appasamy Foundations

Sholinganallur 0.56 40 Marketing stage Nov 2006

Int IT Park, Citilights Navalur. OMR 1.18 NA Marketing stage Nov 2006MPL Ford Phase I Velachery

Tambaram Main Road

0.15 40 Marketing stage Nov 2006

Pacifica Tech Park, Pacifica Companies

R.K.Salai 0.21 60 Under Construction Nov 2006

Alpha City, Srinivasa Shipping & Property Development Ltd

Navalur, OMR 0.47 36 Marketing stage Dec 2006

Maan Sarovar Heights IT Highway, Kottivakkam

0.39 32 Marketing stage Dec 2006

Arihant Insight, Arihant Ambattur 0.33 35 Marketing stage Dec 2006RMZ Millenia II, RMZ Perungudi 1.66 40 Marketing stage Dec 2006 (P II)

Mar 2007 (P III)E Gate, Appasamy Foundations

Sholinganallur 0.24 40 Marketing stage Dec 2006

K.G. 360 Degrees Perungudi, OMR 0.12 - Marketing stage Dec 2006Gee Gee Developers Chetpet 0.25 - Under Construction Dec 2006Ashok Leyland Saidapet 0.20 - Under Construction Dec 2006Prince Software Park, Prince Foundations

Thorapakkam, OMR 0.15 - Under Construction Dec 2006

Sushen Constructions Old Mahabalipuram Road

0.10 32 Planning stage Dec 2006

Jayanth Tech Park Pvt. Ltd. Nandambakkam 0.24 34 Planning stage Jan 2007Rantec IT Park OMR 0.12 NA Planning stage Jan 2007AMTI Tech Park, Ashoka Matches & Timber Industries

Guindy 0.43 35 Under Construction Mar 2007

Menakur Info Services Pvt. Ltd (Streetwave), ETA

Navalur, OMR 1.50 - Under Construction Mar 2007

Oceanic Tech Park, Vishranthi Homes

Santhome 0.30 NA Planning stage Mar 2007

Chennai Tech Park, India Infotec Developers Ltd.

Ambattur 1.70 - Under Construction May 2007

DLF Limited Porur 6.00 42 Under Construction Phase I- May 2007

Surendra IT Park LB Road 0.29 - Under Construction Jun 2007ECCI Sholinganallue,

OMR0.56 - Under Construction Jun 2007

MAM Ramaswamy Egmore 0.20 - Under Construction Jun 2007Lancor Constructions St. Mary’s Road,

Alwarpet0.20 - Planning stage Sep 2007

Fagun – Chamber II Egmore 0.15 - Planning stage Sep 2007R.R. Builders Ambattur 2.00 - Planning stage Jan 2008

List of under construction private IT Parks in the City



Pune: General Facts Geographic Location 18.31º N: 73.51º E

Climate Tropical maritime


Area 440 sq. km. (Pune City)



City Functions Services, IT & ITES, Industrial, Administrative (Distt. HQ)

Factors governing real estate IT- ITES, enabling state govt. policies and near saturation in Mumbai


Case StudyPune

Key Strengths for IT-ITES development: High quality educational system, skilled workforce with domain expertise, good physical infrastructure and presence of large manufacturing corporate houses

Known as the Queen of Deccan, Pensioners’ Paradise, the Oxford of East, the cultural capital of Maharashtra, Pune is a city of various names and faces.In the last five years, owing to its high quality educational infrastructure, Pune has emerged as a favourite destination for IT-ITES related real estate developments, which are transforming the traditional industrial profile of the city.

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IT- ITES sector presenceIT and ITES growth (Annual) IT - 60% - 80% ITES - 35% - 40%No. of IT-ITES firms (Total) IT - 174 ITES - 75No. of IT-ITES firms (Nasscom Registered) IT - 58 ITES - 10IT- ITES activity ITES- Voice-based and non-voice based processes in BFSI IT- Telecom Networks, Engineering Design, ERP, CRM, C++, Java, .NetIT-ITES majors present IBM, Cognizant, Convergys, EXL, Infosys, TCS, KPIT, Zensar, Wipro, MsourcePlayers planning expansion or new facility Oracle, Microsoft, Avaya, TCSHuman ResourcesTalent Pool* 129,065Rosource Pool** 27,095No. of Higher Education Institutes 129Attrition Rates IT - 20% - 22% ITES - 22% - 30%Migration Trends Migrants constitute ~ 40% of employee population in IT- ITES industry.Gender Balance (Male to female ratio in IT-ITES firms) IT - 70:30 ITES - 60:40Infrastructure & Real Estate AvailabilityInfrastructure Status Above AverageAirport connectivity DomesticPresence of STPI YesAvailability of IT-ITES Grade Real Estate YesCompensation (Million INR per annum)Entry / Junior level IT - 0.15 - 0.50 ITES - 0.10 - 0.20Middle level IT - 0.30 - 1.50 ITES - 0.40 - 0.80Senior level IT - 0.80 - 3.50 ITES - 0.80 - 2.00

IT- ITES Facts


N.C.L.

BANER

WAKAD

SANGAVI

PROPOSEDAIRPORT

KALAS

LOHAGAON

MU

MBA

EXPRESS W

AY

TO M

UMBAI

TO MUM

BAI

TO M

UM

BAI

C.M.E.

YERAWADA JAIL

VIMAN NAGAR

DANORI

TO AHMAD NAGAR

TO SOLAPUR

KHARADI

A.S.P.T.

MUNDHAVA

WADGAONSHERI

PHULE NAGAR

S.R.P.F.

GANDHI BHAVAN

SHIVNE

KONDVE

NANDED

NARHE

KATRAJ

GULTEKDIMARKET YARD

SALISURY PARK

CITYPOST AIR INDIA

MG

RD

.

SHAHUCOLLAGE

KONDHAVE KH.

KIRKATWADI

KOPRE

DHYRI

AUTOMOTIVE RINSTITUTE

M.I.T.COLLEGE

S.N.D.T.COLLEGE

BHANDARKARINSTITUTE

VETAL HILL M.A.C.S.B.M.C.C.

AGRICOLLEGE

SHIVAJISOCIETY

CHANDANICHOWK

W.N.C.

RAJBHAWAN

V.M. CO.OPINSTITUTE

C DAC

IUCA

PUNEUNIVERSITY

TANAJIVADI

KALYANI NAGAR

HADAPSAR

SENA

PATI BAPAT RO

AD

DECCAN

HINJEWADI

BALEWADI

AUNDH

YERWADA

PUNE RAILWAY STATIONBU

ND G

ARDEN

RO

AD

KOREGAON PARK

SOLAPUR ROAD

SOLAPUR ROAD

WANEWADI

DHANKAWADI

KHADKI WEST

AIRPORT

AIRP

ORT

RO

AD

ERANDVANE

ND

A RO

AD

MU

MBA

I BAN

GA

LORE BYPA

SS

PASHAN

NDA

KHADAKWASLA

ND

A ROAD

WARJE

TO BONGUT

CHINCHWAD

PIMPALE NILAKH

SHIVAJI NAGAR

FURSUNGI

1. Wipro Infosys Cognizant KPIT Infosystems Geometrics

2. Veritas Calsoft Convergys

3. Sungard

4. BMC Software Persistent Technologies TACO Visteon Deutche Telekom Cognizant Technologies NOKIA Siemens Techni Graphics Systems

8. Philips IBM AMDOCS EDS EXL Services

9. Zensar Technologies

10. Honeywell IBM

5. IBM Daksh SAS World Network Services

6. Nihilent Technologies Microsoft IDEA Cellular

7. TCS HSBC Software Development Centre MPHASIS PTC AXA Business Service Mahindra British Telecome Ventura Cybage V-Customer

IT-ITES Hubs

Railway Station

Railway Line

Airport

Road

97532

1

4 6

8

10

IT - ITES Locations

N


SupplyAround 16 million sq. ft. of IT-ITES space is either under construction or proposed and likely to come up in the next three years.

DemandIT-ITES contributes about 85% of the total demand of office space in the city. Currently, demand has far exceeded supply for ready-built, plug-and-play quality office space in the city. High-end demand is driven by the IT-ITES companies.

VacancyThe average vacancy rates in Pune are 28%, which are lower in comparison to the last two quarters. The average vacancy rates in Grade A & B properties are lowest in developments on the North-Eastern and the North-Western corridors (20%).

Capital Values and Rental RatesAverage rental values in the city have increased as compared to the last quarter from INR 30 to INR 42 per sq. ft. per month. 85% of the transactions in the city are concluded on lease basis.







(sq. ft.)

Under Construction

(sq. ft.)

New Deliveries

(sq. ft.)

Total Vacancy

(%)


(sq. ft.)

Net Absorption

2006 (sq. ft.)

Average Asking Rent

(INR per sq.ft per month)

North 80,000 - - 30 - - 30

South 1,203,000 70,000 60,000 25 75,000 80,000 40

Central 4,458,000 1,750,000 216,000 22 168,000 174,900 45

South-East 3,062,000 1,800,000 60,000 35 - - 30

Cantonment 2,865,400 246,000 259,400 42 120,000 135,800 55

North-East (Eastern Corridor)

10,088,000 6,120,000 2,093,000 20 2,030,000 3,100,000 48

North-West (Western Corridor)

9,274,000 5,470,000 121,000 20 250,000 250,000 45

Total 31,030,400 15,456,000 2,809,400 28 2,400,000 3,485,800 42



0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q060

5

10

15

20

25

30

35

40

45


0

500

1,000

1,500

2,000

2,500

3,000

3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06


Cyber City, Magarpatta

Pune’s strengths as an IT-ITES destination• Pune has the highest PC penetration ratio amongst Indian

cities at 26.2%.

• Highly developed educational system which provides a large pool of skilled work force for all domains of IT-ITES.

• Presence of large manufacturing corporates (Bajaj, Kinetic, Thermax, Bharat Forge).

• Good road, rail and air connectivity with the rest of the country.

• Abundant supply of Grade A IT-ITES real estate office space, which would stabilize rentals in future.

• Favourable policy framework of the State Government for IT-ITES sector.

• Good physical infrastructure and law and order condition.

• Highly cosmopolitan city with good quality of life.

IT Parks in Pune


Cyber City, Magarpatta

ICC-Tech Park

Hingewadi IT Park Giga Space

Developer Location Area MIDC Sponsored Pune IT Park Hinjewadi Phase I – 283 acres Pune IT Park Hinjewadi Phase II – 583 acres Pune IT Park Hinjewadi Phase III- 867 acres Knowledge Park Kharadi 75 acres; BUA: 185,000 sq. ft.Software Technology Park Talawade 190 acres; BUA: 117,252 sq. ft.Privately DevelopedCybercity – Magarpatta Group Magarpatta 400 acres; BUA: 4,000,000 sq. ft.Mindspace – K.Raheja Corp. Kalyani Nagar -Gigaspace – Kolte Patil Nagar Road -Espace- Kolte Patil Nagar Road -Vascon Weikfield IT- Citi Infopark Nagar Road 20 acres ; BUA: 1,700,000 sq. ft. – 3 phases



Transportation

Pune has an excellent roads network, linking it with major cities like Mumbai, Bangalore, Hyderabad and Delhi through a network of National Highways. Pune is an important railway junction on Mumbai-Hyderabad-Bangalore-Chennai and Mumbai-Hubli-Bangalore routes. Pune has good direct rail connectivity to several cities across India. From December 2005, Pune’s Lohegaon Airport has also begun to handle short-haul international flights apart from domestic flights.Pune Municipal Transport (a part of the Pune Municipal Corporation) runs city buses in and around the city. This network links various parts of the city and suburbs and is a cost-effective mode of transport. Para transit mode like auto rickshaws and taxis is also easily available.

Power Supply

In spite of a shortfall in supply of power in the city, the MIDC has established dedicated electricity substation for the IT Parks (developed by it) thereby assuring continuous power supply. Private developers too are providing the occupants of their IT Parks with 100% power backup.


Maharashtra Telecom Circle (MTC) of Bharat Sanchar Nigam Limited (BSNL), a Govt. of India undertaking, is serving the city of Pune and the entire district. Optical Fiber Cables (OFC) have been laid in the entire state to ensure the availability of international bandwidth on demand. Major Service Providers in Pune are BSNL, Dishnet, Bharti, Reliance and Tata Teleservices.

Future Outlook

• Nine IT-ITES SEZs have been approved by the Government which will bring a mega supply spread across 452 hectares.

• Demand for commercial office space including IT-IES space is likely to remain stable in the immediate future.



Pune, the cultural capital of Maharashtra is one of the important industrial and commercial centers in Maharashtra. It is also known as a premier Educational Centre, an Information Technology hub and home to some prominent corporates and industrial houses.

The focus of development is now shifted to improvement of infrastructure. Several ambitious road projects, proposal for new international airport along with city’s beautification and augmentation of basic services (water supply, drainage, sewerage and solid waste management) are in the pipeline. Few prominent projects and initiatives are listed out below:

• Pune Integrated Road Development Project

Pune has witnessed enormous increase of traffic in the last decade or so. Pune’s geography with interspersed hills and river (Mula and Mutha) dividing the city in to distinct pockets and railway line passing through the city have resulted in several over bridges, crossings and intersections. There is traffic congestion on arterial roads of the city.

Government of Maharashtra has proposed an ‘Integrated Road Development Plan’ for Pune Metropolitan Region. Maharashtra State Road Development Corporation (MSRDC) has been declared as the coordinating agency for executing this project.

This project has a sanctioned budget of INR 2,600 million and includes about 33 projects (development works) covering six projects for improvement of important roads in the region, construction of nine railway over bridges, widening of one rail over bridge, two river over bridges and fifteen flyovers on important roads. This project is anticipated to reduce traffic congestion and provide growth impetus to the region. This project is anticipated to be completed in the next three to four years.

• Widening of Old Mumbai-Pune Highway

This project proposes to connect the Maharashtra Industrial Development Corporation (MIDC) promoted industrial areas of Talegaon and Chakan on the northern parts of Pimpri Chinchwad. This highway is also anticipated to connect the proposed international airport. However the proposal for the new airport is presently in cold storage.

• Mass Transit System (LRT)

MSRDC is considering a proposal of mass rapid transit system (Light Rail Transit) for Pune. The project is anticipated to improve the connectivity of the core areas to the outskirts of the city.

Appendix: Pune


• Eastern Bypass

MSRDC has proposed construction of an Eastern Bypass connecting the Mumbai – Bangalore Bypass (at Katraj) to Nagar Road (north eastern corridor of Pune). This road is when completed would form a ¾ th circle (Ring Road) around Pune. Land acquisition for this stretch (Katraj to Nagar Road) is under progress.

Agencies responsible for the project are Pune Municipal Corporation, Pimpri Chinchwad Municipal Corporation, Public Works Department GoM, MSRDC and village panchayats.

• City Development Plan of Pune (2025)

Apart from the announced projects in progress there are several projects envisioned in the City Development Plan of Pune (2025). This document is presently under public review. The document highlights an investment of approx. INR 66,430 million for providing efficient services to the present population and future population by 2031. Out of this figure about INR 60,000 million is proposed for investment by 2011 – 2012. Some of the prominent projects enlisted in this document are:

• Beautification of Pune city: The central government has proposed an allotment INR 2,000 million for the Mutha River development Project and other projects under the Jawaharlal Nehru Urban Renewal Mission (JNURM) for beautification of Pune.

• Land Use and Development Planning: Approx. INR 1,960 million has been proposed for investment for land use and development planning purpose till 2011-12. This will facilitate planned development of city through a comprehensive Development Plan along with modified Development Control Regulations.

• Infrastructure augmentation: An investment of approx. INR 22,110 million till a period of 2011-2012 is planned. This includes improvement in the existing network and future augmentation of water supply, sewerage, storm water, surface drainage and solid waste management services.


Source: www.maharashtraitparks.com

List of Existing / Upcoming IT Parks in Pune

MIDC (Govt. of Maharashtra Undertaking) Sponsored IT Parks (Existing / Upcoming)

Name of the Complex Information Technology Park

Location Hinjewadi, District Pune

15 km from Pune off Mumbai- Bangalore Bypass (NH-4), 20 km from Pune Airport

Area of the Park Phase I – 238 acres (partly operational)Phase II – 583 acres (partly operational)Phase III – 867 acres (land acquired)Phase IV – 1148 acres (land acquisition under process)MIDC also has plans for further expansion of the IT Park (Phase V & Phase VI)

Area now available for allotment Plots in Phases I and II have been allotted. Allotment of plots for Phase III to commence shortly

Allotment price of the plot Official allotment rate declared by MIDC (Phase II) – INR 2,000 per sq. m.

Present status of the Complex Phase I & II partly operational, land has been acquired for Phase III. Acquisition process is under process for Phase IV

Name of the Complex Software Park

Location Talawade, Taluka Haveli, District Pune 25 km from Pune off Mumbai- Bangalore Bypass (NH-4) , 20 km from Pune Airport

Area of the Park 190 acres

Area now available for allotment No Availability

Rentals INR 16 per sq. ft. per month- INR 18 per sq. ft. per month (Bare shell)

Present status of the Complex Partially occupied

Name of the Complex Knowledge Park

Location Kharadi, District Pune 22 km from Pune off Mumbai- Bangalore Bypass (NH-4), 7 km from Pune Airport

Area of the Park 30 ha (75 acres) of land, 185,000 sq. ft .of built up space available

Saleable area 185,000 sq. ft. (floor plate of 26,500 sq. ft. - 34,000 sq. ft.)

Area now available for allotment NA

Rentals INR 20 per sq. ft. per month – 25 per sq. ft. per month (Bare Shell)

Present status Partly occupied


List of Upcoming IT Parks by Private Developers in Pune

Source: Trammell Crow Meghraj (TCM) field surveys, 2006

S. No. Project / Building Location

Total Built Up Area (sq. ft.) available for

commercial use

Floor Plate

(sq. ft).

Quoted Lease Rent -bare shell (INR

per sq. ft. Per momth)

Remarks

1 SP Infocity Phursungi 1,200,000 40,000 30 Under construction

2 Manikchand Ikon Dhole Patil Road 300,000 17,000 45 Ready for possession

3 Manikchand Galleria

Model Colony 150,000 NA 55 Ready for possession

4 IT Park by Kumar Properties

Hadapsar- Nagar Link Road

150,000 (BTS) 28,000 30 Under construction, Possession in early 2008

5 Mind Space by K. Raheja Corporation

Airport Road 4,000,000 - - Project at early stages of conceptualization

6 Cerebrum by Kumar Builders

Kalyani Nagar 1,000,000 55,000 35 Ready for possession.A total of 3 buildings of 8 floors each will be constructed in a phased manner.

7 Magarpatta Cybercity –Tower 10

Off Solapur Road, Hadapsar

6,000,000 (2.0 million sq. ft. constructed, 1.5

million sq. ft. under construction, balance

to be developed in phases)

44,000 33 Ready for possession

8 IT Weikfeild Nagar Road 1,700,000 64,000 27 Ready for possession

9 Almonte Kharadi 1,500,000 20,000 30 Under Construction

10 Parmar Trade Centre

Sadhu Waswani Chowk 300,000 17,000 40 Ready for possession

11 Pride Purple Wakad 100,000 - - Project at early stages of conceptualization

12 Sai Hira Mundwa 115,000 22,000 40 Ready for possession

13 Sai Trinity Pashan 170,000 42,500 40 Ready for possession

14 Sai Radhe Behind Hotel Le-Meridian 500,000 52,000 50 Ready for possession

15 ICC Trade Tower Senapati Bapat Marg 475,000 55,000 55 Ready for possession

16 Panchshil Tech Park Airport Road 1,000,000 32,000 45 Ready for possession

17 Panchshil Tech Park Hinjewadi 350000 - - Project at early stages of conceptualization

18 Muttha IT Park Yerwada 300,000 26,000 45 Ready for possession

19 Nano Space Baner 120,000 26,000 35 Under construction. Possession in March 07

20 Marigold Kalyaninagar 100,000 25,000 40 Ready for possession

21 Amar Genesis Baner 200,000 12,500 35 Ready for possession

22 DLF Akruti Info Parks Ltd.

Hinjewadi - II 5,500,000 NA 30 Construction commenced recently

23 Gigaspace Nagar Road 1,100,000 22,000-35,000

35 Ready for possession

24 Espace Nagar Road 247,000 24,000 35 Ready for possession

25 Panchshil Tech Park Kharadi 4,000,000 30,000-60,000

35 Under Construction


Kolkata: General Facts Geographic Location 22.33º N: 88.20º E

Climate Tropical


Area 185 sq. km. (Municipal Corp.)

Population (2001) 4.57 million (Municipal Corp.)

Population Growth Rate 3.9% (1991 - 2001, CAGR)

City Functions Administrative (State Capital), Industrial, Commercial, IT-ITES

Factors governing real estate IT- ITES Sector, Limited Supply of Grade A facilities, and Strong Revival of the City’s Economy


Case StudyKolkata

Key Strengths for IT-ITES development: Good educatinal system with abundant availability of skilled human resources, lower labor and non-labour costs, relatively cheaper real estate, improving urban infrastructure and proactie, IT-friendly State Government.

Kolkata, the Second City of the erstwhile British Empire, and the ‘City of Palaces’, is benefiting from a strong revival of its traditional and New Econocmy industies like IT-ITES.

With the active backing of a proactive State Government machinery, Kolkata is witnessing a realty boom driven by IT-ITES and organized retail on the back of growing disposable incomes and upwardly-mobile lifestyles.

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IT- ITES sector presenceIT and ITES growth (Annual) IT - 40% - 50% ITES - 60% - 70%No. of IT-ITES firms (Total) IT - 152 ITES - 58No. of IT-ITES firms (Nasscom Registered) IT - 18 ITES - 8IT-ITES activity ITES: Voice-based and non-voice based processes IT: Web Designing, ERP, CRM, C++, Java, .NetIT- ITES majors present IBM, Cognizant, TCS, GE, Wipro, MsourcePlayers planning expansion or new facility Satyam, Infosys, Wipro, TCS, Cognizant, IBM, GenpactHuman ResourcesTalent Pool* 42,743Rosource Pool** 22,038No. of Higher Education Institutes 155Attrition Rates IT - 15% - 20% ITES - 20% - 25%Migration Trends Migrants constitute ~ 30% of employee population in IT - ITES industry.Gender Balance (Male to female ratio in IT-ITES firms) IT - 75:25 ITES - 70:30Infrastructure & Real Estate AvailabilityInfrastructure Status Above AverageAirport connectivity InternationalPresence of STPI YesAvailability of IT- ITES Grade Real Estate YesCompensation (Million INR per annum)Entry / Junior level IT - 0.18 - 0.40 ITES - 0.10 - 0.25Middle level IT - 0.30 - 0.80 ITES - 0.20 - 0.45Senior level IT - 1.00 - 2.20 ITES - 0.80 - 1.60

IT- ITES Facts


Non IT Commercial Areas

IT Commercial Areas

Railway Line

Airport

Road

HOWRAH

SALT LAKE, SECROR V

AIRPORT

PARK STREET

KOLKATA WESTINTERNATIONAL CITY

SOUTH CBD

KOLKATA

NEW TOWN

NEW TOWNIT SECTOR

KOLKATA

ESPLANED - DALHOUSIE

IT - ITES Locations

N

NSCINTERNATIONAL

AIRPORT

SALT LAKE

5 LANE EXPRESSHIGHWAY

KOLKATA

TO A

IRPO

RT

SECTOR II

SECTOR ISECTOR III

SECTOR IV

(BIDHAN NAGAR)

SECTOR V

TO ULTADANGA

E. M. BYPASS

132 KVA SUB STATION

SALT LAKE STADIUM

NICCO PARK

HOTEL HYATT

WELCOME GROUP HOTEL

SCIENCE CITY

3

1

2

RAJARHAT(NEW TOWN)


SupplyAround 14.5 million sq. ft. of IT-ITES space is under construction in Kolkata. About 1.7 million sq.ft. of high-grade commercial office stock is anticipated by year end 2006.

DemandIT-ITES contributes about 75% of the total demand of office space in the city. Currently, demand has far exceeded supply for ready-built, plug-and-play quality office space in the city. High-end demand is driven by the IT-ITES companies.

VacancyWith limited / unavailable fresh supply in the CBD and rapid absorption of the existing stock, vacancy levels in the area remained low at around 5%. However, Salt Lake sector V and Rajarhat registered higher vacancy levels at around 12%.

Capital Values and Rental RatesThe rental rates in the CBD vary from around INR 38 per sq. ft per month to about INR 56-75 per sq. ft. per month. The rental rates at Salt Lake – Sector V hover at an average value of INR 38 per sq. ft. per month.


This table includes all single and multi-tenanted, Class A office properties 25,000 sq. ft. or larger, excluding 100% owner-occupied and properties owned and occupied by Govt. agencies. The numbers are indicative and gathered from primary and secondary sources.


Office Space: Absorption, Vacancy and Rents



(sq. ft.)

Under Construction

(sq. ft.)

New Deliveries

(sq. ft.)

Total Vacancy


(sq. ft.)

Net Absorption

2006 (sq. ft.)

Average Asking Rent


CBD Prime – Camac Street, Park Street, A.J.C. Bose Road

1,802,000 - - 9 75,000 149,000 53

Non CBD – Eastern Metropolitan Bypass

435,000 - - 10 3,500 3,500 35

Secondary Business District -1 – Salt Lake Sector V

7,498,000 5,170,000 940,000 27 394,000 495,000 35

Secondary Business District -2 – Rajarhat

9,689,000 9,257,000 - 30 - - 33

Total 19,424,000 14,303,000 940,000 19% 472,500 647,500 38

0

100

200

300

400

500

600

700

800

Q305 Q404 Q105 Q205 Q305 Q405 Q106 Q206



0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q20629

30

31

32

33

34

35

36

37

38

39

Total Vacancy

Average Asking Rents (INR/sq. ft./month)


Kolkata’s strengths as an IT-ITES Destination• Availability of skilled human resources with diverse

domain knowledge (BFSI, travel & logistics, HR, etc.)

• Lower cost of living translates into lower salaries and lower operating costs for IT-ITES companies

• Lower attrition rates

• Relatively cheaper real estate costs

• Good road, rail and air connectivity with the rest of the country

• Preferential treatment for the IT-ITES sector by the State Government

• Leading corporate centre in the Eastern and North-Eastern regions of the country

• Upcoming Knowledge Corridor at Rajarhat, a northern suburb

IT Parks / IT Commercial Space in Kolkata

DLF IT Park

Technopolis

Millennium City II

Built- Up Area Parameter


Under Construction 14.42 million sq. ft.

Total Inventory 17.00 million sq. ft.



Transportation

The city’s sole airport, the Netaji Subhash Chandra Bose International Airport at Dum Dum to the North of the city, operates both domestic and international flights to North America, Europe, West Asia, and South-East Asia.Kolkata has two major long distance railway stations at Howrah Station and Sealdah. The city is the headquarters of two divisions of the Indian Railways — Eastern Railway and South Eastern Railway.Kolkata has varied modes of public transport - the suburban railway, Kolkata Metro, trams and buses. The suburban network is quite extensive and connects even the distant suburbs. The Kolkata Metro is the oldest underground system in India. Kolkata is the only city in India with an operational tram network. Buses are run by Kolkata Municipal Corporation (KMC) and Private Operators. Hired forms of transportation include metered taxis and auto rickshaws.

Power Supply

Calcutta Electric Supply Company Limited (CESC), an RP Enterprises Group company, supplies power to the city of Kolkata, serving a population of 11 million across its licensed 567 sq. km area. The power situation in Kolkata has improved significantly since the 80s, which were marked by load shedding and power cuts. The entire state of West Bengal now has a surplus of power – power generation exceeds power demand.


Leading telephone and mobile phone service provider are - BSNL, Airtel, Hutch, Reliance, and Tata Indicom. Broadband Internet penetration is increasing steadily with BSNL, Tata, Airtel and Reliance as the leading service providers.Kolkata boasts of two international satellite Earth Stations supported by two gateway switches of VSNL for total global reach. A third Earth Station of STPI is also fully operational to provide global connectivity. In addition, private providers will provide broadband Internet bandwidth to the state’s Knowledge-based industries. Availability of abundant bandwidth to industry strengthens international communications.

Future Outlook

• IT-ITES companies such as IBM, Genpact, etc. are planning for expansion to take advantage of the quality talent pool and other resources available in the city.

• Three IT-IES SEZs in and around Kolkata, encompassing an aggregate notified area of 78 hectares, are expected to bring in a mega supply.

• IT-ITES sectors will remain the key drivers for demand of office space in the city. The next 1-2 years are expected to bring more supply of IT- ITES buildings in the suburban locations of Sector V, Salt Lake and Rajarhat.


Major Upcoming Infrastructure projects in the city

The Government of West Bengal’s present focus is an overall urban renewal program. Several new developments are in the pipeline. Some important development schemes are listed below. These are likely to have a significant impact on the development of the IT sector in Kolkata by increasing overall connectivity of the New Town area, which is presently the new growth direction.

• Proposed Eastern Expressway connecting Rajarhat with Kukrahati, Haldia.

• Several flyovers over road intersections throughout the city of Kolkata and Rajarhat.

• Proposed 10- lane wide extension of Major Arterial Road of Rajarhat connecting to NH-34.

• Proposed ‘Paribahan Nagar’ on the city’s outskirts beyond New Town – Rajarhat.

• Proposed Logistic Hub adjoining Paribahan Nagar.

• Proposed Health City beyond the northern boundary of New Town – Rajarhat.

• Proposed Belgharia Expressway connecting the Northern part of Kolkata to the other end of the river Hoogly via the 2nd Vivekananda Bridge.

• Infrastructure development projects include the proposed extension of the Metro-rail corridor to Garia, which is scheduled for completion by 2008.

• Construction of third Hoogly Bridge (2nd Vivekananda Setu) over the Hoogly.

• Kukrahati Bridge over the Hooghli in Kukrahati, Haldia.

• Kolkata Logistic Hub along Kona Expressway. Developments are concentrated in and around Kolkata.

• Extention at Metro Rail across river Hoogly.

Appendix: Kolkata

Project / Developer BUA BUA Occupied Lease Rentals (INR /sq. ft. / month)

Ascendas 20 Acres 0 NA

DLF City Ph I 1,100,000 sq.ft. 302,400 sq.ft. 35

Keepel Land 13 acres 0 NA

Shrachi 300,000 sq.ft. 8,000 sq.ft. NA

Unitech 4,300,000 sq.ft. 0 34


IT Parks / Commercial Space in Kolkata

New Town, Rajarhat


Salt Lake, Sector V

Project / Developer BUA (sq. ft.) BUA Occupied (sq. ft.) Lease Rentals(INR /sq.ft. / month)

Bajaj 80,000 80,000 NA

Bengal Intelligence Park I 256,000 256,000 36

Bengal Intelligence Park II 304,000 0 36

Boulevard 250,000 50,000 NA

CN 2 200,000 0 NA

Convergent Center 36,000 36,000 27

DN 27 55,800 37,800 NA

DN 9 64,152 64,152 NA

Eternity 72,000 72,000 35

Globsyn Crystals I 490,000 0 NA

Globsyn Crystals II 160,000 0 NA

Hub, The 360,000 0 35

Infinity Benchmark 550,000 0 NA

Infinity Tower I 125,000 125,000 35

Infinity Tower II 170,000 170,000 35

Infinity Waterside 530,000 0 38

Kariwala Towers 60,000 60,000 25

Logix Park 70,000 30,000 NA

Mani Square 60,000 0 NA

Millennium City I 95,000 95,000 35

Millennium City II 280,000 280,000 40

Reshmi Tower I 50,000 50,000 30

Reshmi Tower II 160,000 0 30

Syntech 45,000 35,000 NA

Techno India 100,000 85,000 NA

Technopolis 675,000 525,000 42

Vision Comptech 200,000 200,000 NA



Summing UpChapter Three

India has successfully leveraged its fundamental advantages of abundant talent, a focus on quality at low costs and an enabling business environment to attain a leadership position in the IT-ITES sector.

Today, most Indian companies have aligned their internal processes and practices to international standards such as ISO, CIMM and Six Sigma, which has helped to establish the country as a credible sourcing destination.

The large and growing pool of skilled professionals has been a key driver of the rapid growth in Indian IT-ITES sector. According to NASSCOM, India has the largest pool of suitable offshore talent – accounting for 28% of the total suitable pool across all offshore destinations. It outpaces the share of the next closest destination by a factor of 2.5.

It is very unlikely that India will face a shortage of suitable talent pool for IT-ITES in the foreseeable future. Furthermore, pro-active government policies are underway to ensure that more suitable talent for this industry is made available.

Most IT-ITES activity in India is concentrated in seven cities / clusters within the country. IT-ITES activity is expanding to cover cities such as Ahmedabad, Jaipur, Coimbatore, Kochi, Thiruvananthapuram, Chandigarh, Mysore, Mangalore, Madurai and Bhubaneswar.

The STPI (Software Technology Parks of India) is planning to open 12 software parks in the next 1 year. The parks will be set up at Patna, Siliguri, Haldia, Bhopal, Berhampur, Gwalior, Shillong, Gulbarga, Agra, Agartala, Goa and Kakinada.

The IT-ITES sector is driving real estate demand in many of these cities. In fact, the IT-ITES sector accounts for 75-80% of the commercial office demand in most cities. Since IT-ITES employees have the highest disposable income among the service categories, they drive the residential, retail as well as the hospitality sectors.

Delhi–NCR

The capital of the country is now also emerging as a global center for the service sector. The IT-ITES sector has been a key driver in the development of suburban areas of Delhi such as Noida and Gurgaon.

Presently, the demand for IT space outstrips the supply. Large companies are soliciting prominent developers for built-to-suit campus developments. The supply of IT space in Noida and Gurgaon is expected to increase in the next couple of years with the implementation of IT SEZs by developers like DLF, Unitech, RIL, and others.

The NCR, being a major economy driver in North India, attracts a lot of migrants and skilled professionals. The robust social infrastructure (especially the presence of high caliber educational institutions) will continue to encourage knowledge companies to come and set up bases here. With one of the best city support infrastructures being


developed to cater for the Commonwealth Games (scheduled for the year 2010) the attraction for knowledge sector companies will only increase with time.

Bangalore

Bangalore has already created a global brand image as an attractive IT-ITES destination due to its abundant talent pool, cosmopolitan culture and salubrious climate. Getting ‘Bangalored’ is now a definitive metaphor among industry players.

The office space supply in the IT corridor in locations such as Whitefield and Electronic City has exceeded demand, indicating a stabilization of rentals in the near future.

It is estimated that a demand for 20,000 to 50,000 sq. ft. floor plates will typify major transactions in the city, along with built-to-suit developments. The new international airport at Devanahalli in the north of the city is expected to act as a magnet for corporate relocation strategies in the future.

The new Comprehensive Development Plan is a beacon for increased investment in infrastructure. Improvements in intra- city connectivity, power situation, and traffic congestion are being addressed. This is essential, since Bangalore would otherwise lose its edge to other competing locations.

Mumbai

The commercial capital of the country already has a robust services sector and established institutions, which attracted the knowledge industries quite early in the game.

The IT-ITES office space market is driven by large floor plates, lower rentals and quality space. This has caused companies to move from the city to suburbs such as Thane and Navi Mumbai.

Mumbai’s future as an ITES destination looks assured due to its adequate talent supply, cosmopolitan culture, and comparatively clear accents. Mumbai call centers have lower points of failure as the International Private Leased Circuit (IPLC) terminates in Mumbai.

The developer community too is gearing to cater to this by bringing in space to the tune of 20 million sq. ft. by year 2010. Out of this, 12 million sq. ft. would be in IT SEZs. The present firming up of office space rentals in Delhi and the suburbs will see stabilization once this supply hits the market in the medium term.

To meet the ever-growing demand for IT- ITES space in Bangalore, the developer community is bringing in space to the tune of 10.6 million sq. ft. in the next two years. This is already under construction. Another 67 million sq. ft. are in pipeline, which is in addition to the proposed mega supply by 12 IT- ITES SEZs. Rentals are expected to stabilize once the mega supply commences.


Telecom links are much better, with MTNL and new players like Reliance and Hughes entering the field and promising more bandwidth as well as redundancy. There is no load shedding due to the stable power supply. Due to the existence of large number of institutions offering graduate courses, the magnitude of quality workforce graduating every year is promising.

The city’s infrastructure has definitely taken a beating with incessant rains and flooding over the last couple of years. However, there has been a very proactive approach by the Government towards mitigating these infrastructural constraints. These initiatives include the Mumbai Urban Transport Plan (MUTP) under which various projects pertaining to roads, flyovers, mass transport systems have already been initiated. The airport has been privatized and is undergoing a massive capacity expansion. The result of all this will be evident only after 5-6 years. The Navi Mumbai and Maha Mumbai SEZ have incidentally acted as smooth catalysts for the Navi Mambai region.

Chennai

Chennai’s advantages of excellent educational institutions and low real estate costs were bound to attract IT-ITES companies. The city has also made major strides in attracting industrial activities and IT-ITES as well as manufacturing sectors, which have been major economy drivers.

Proactive Government support and the State Government’s policy to provide 1.5 times additional FSI for IT parks has fuelled a massive drive for construction of quality IT space all over the city.

Hyderabad

Robust infrastructure development and government initiatives have attracted many IT-ITES companies to Hyderabad.

Private developers in Mumbai are bringing about 8 million space, which is under construction and will hit the market within short run (1-2 years). Another 5.6 million sq. ft. supply is in the pipeline, in addition to the proposed two IT- ITES SEZs, covering approx 67 hectares.

Chennai’s future as a destination for IT-ITES looks bright with 26 million sq. ft. of IT parks under construction and another 20 million sq. ft. of proposed IT space, which are being brought mainly by private developers. Although rentals are increasing in suburban areas, in medium and long run they are expected to stabilize once major supply comes on to the market.


It is expected that the southern part of the city will become the economic hub in the next 3-5 years with the development of the international airport, a 20,000 acre Government-sponsored SEZ and a hardware park.

The city has got its act together right from the start and thus has bypassed the problems faced by contemporaries. Hyderabad ensured that the infrastructure was in place, with the result that companies automatically took this city seriously.

If the city succeeds in keeping its real estate prices in check, it will turn into an excellent business location for knowledge industries, pharma, hi- tech manufacturing etc.

Pune

Pune has emerged from its status as a ‘peaceful retirement destination’ and become a formidable competitor to Mumbai in attracting IT-ITES industry. The Mumbai-Pune belt has a major concentration of automobile industries. It also has an excellent communication infrastructure and outstanding colleges. This has attracted a lot of IT-ITES companies. Many R&D firms are also looking at this city.

Pune scores over many other IT-ITES destinations in terms of physical and social infrastructure, including the availability and dependability of power, telecommunications and superior physical connectivity within the surrounding urban settlements.

Kolkata

Kolkata was the last one off the track in the race for attracting IT-ITES companies. Though it is not yet established as a destination for IT-ITES, the size of the city and its economic turnaround over the last five years has shown promise for the future. However, it still ranks as a Tier II city for IT-ITES.

Proactive Government support has enabled a lot of investments flowing into city and there is a lot of construction going on in the residential, retail and office sectors.

The development of IT space is shifting towards the upcoming subsidiary business districts at Salt Lake Sector V and Rajarhat – New Town. Although Salt Lake has the

Presently around 11 million sq. ft. of IT-ITES space has been brought under construction by private developers to address the demand. Another 10.9 million sq. ft. of IT- ITES space is proposed in addition to the upcoming five IT-ITES SEZs.

Large-scale speculative construction of commercial office and IT-ITES space across the city is expected to result in an additional 16 million sq. ft. of space in next three years. This is likely to put pressure on the market rentals in the medium term.


highest number of developments, Rajarhat is tipped to be the next hotspot destination for IT space.

3.1 Comparison of Cities

We have categorized all cities showing signs of predominance or emerging IT-ITES activity into three segments:

TierI(EstablishedLocations)

These are the first cities generally to be explored by all IT-ITES companies wishing to set up their first operation in India. They form the more established destinations now, nationally and globally. They include the cities of Bangalore, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune.

TierII(EmergingLocations–medium-termpotential)

These cities have initiated the process of attracting IT-ITES companies and have some catching-up with the leaders to do. They include Ahmedabad, Bhubaneswar, Chandigarh, Coimbatore, Indore, Jaipur, Kolkata, Kochi and Thiruvananthapuram.

TierIII(Havingfuturelong-termpotential)

These cities have the potential for conversion to future IT-ITES activity, but they currently have a long way to go in terms of emerging as serious contenders. These include the cities of Lucknow, Mangalore, Nasik, Nagpur, Vishakhapatnam and Vadodara.

The table below compares all these 21 cities with respect to

• Demographics

• IT-ITES-specific human resource pool

• IT- ITES sector presence

• Infrastructure status

Around 14.5 million sq. ft. of IT-ITES space is brought under construction to fulfill the demand. Three proposed IT-ITES SEZs will come up with additional mega supply in the medium and long run. Rentals and capital values will stabilize once major supply hits the market.


City

City

Des

crip

tion

IT /

ITES

SPE

CIFI

C H

UM

AN

RES

OU

RCES

MET

RICS

IT S

ECTO

R PR

ESEN

CEIN

FRA

STRU

CTU

RE M

ETRI

CS

Popu

latio

n

(in m

illio

n,

2001

) 1

Popu

latio

n G

row

th

(199

1- 0

1 CA

GR)

1

Gra

duat

es

Pass

ing

Out

/Ye

ar s

uita

ble

for I

T/IT

eS

Sect

or 2

Estim

ated

To

tal

Empl

oyee

s in

IT /

ITES

Se

ctor

2

No.

of

Hig

her

Educ

atio

n In

stitu

tes

2

No.

of

IT fi

rms

(Nas

scom

Re

gist

ered

) 3

No.

of

ITes

firm

s (N

assc

om

Regi

ster

ed) 3

Pres

ence

of

Atle

ast

One

Indi

an

IT/IT

ES

Maj

or 4

Infr

astr

uctu

re

Stat

us 2

Air

port

Cl

assi

ficat

ion

Pres

ence

of

STPi

5

Avai

labi

lity

of IT

/ITeS

G

rade

Rea

l Es

tate

6

TIER

I

Mum

bai

The

finan

cial

and

com

mer

cial

cap

ital o

f In

dia,

cap

ital o

f the

stat

e of

Mah

aras

htra

and

a

maj

or p

ort

16.3

63.

031

,361

278,

869

303

124

61Ye

sAv

erag

eIn

tern

atio

nal

Pres

ent

Yes

Del

hi N

CRPo

litic

al c

apita

l of I

ndia

and

an

esta

blish

ed

ITES

Hub

12.7

94.

237

,870

282,

708

315

224

145

Yes

Goo

dIn

tern

atio

nal

Pres

ent

(Noi

da)

Yes

Bang

alor

eSi

licon

Val

ley

of In

dia

and

capi

tal o

f the

stat

e of

Kar

nata

ka5.

683.

838

,130

341,

374

445

185

67Ye

sAv

erag

eIn

tern

atio

nal

Pres

ent

Yes

Chen

nai

Polit

ical

cap

ital o

f sta

te o

f Tam

il N

adu

and

esta

blish

ed IT

- IT

ES H

ub, m

ajor

por

t6.

421.

834

,205

181,

528

162

104

36Ye

sAb

ove

Aver

age

Inte

rnat

iona

lPr

esen

tYe

s

Hyd

erab

adSi

licon

Val

ley

of In

dia

and

polit

ical

cap

ital o

f st

ate

of A

ndhr

a Pr

ades

h5.

752.

837

,288

134,

894

7910

644

Yes

Goo

dIn

tern

atio

nal

Pres

ent

Yes

Pune

Emer

ging

IT d

estin

atio

n an

d se

cond

larg

est

city

of M

ahar

asht

ra st

ate

and

an a

cade

mic

an

d cu

ltura

l hub

3.75

5.1

27,0

9512

9,05

612

958

10Ye

sAv

erag

eD

omes

ticPr

esen

tYe

s

TIER

II

Kolk

ata

Emer

ging

IT d

estin

atio

n an

d po

litic

al c

apita

l of

stat

e of

Wes

t Ben

gal

13.2

12.

022

,038

42,7

4315

518

8Ye

sAv

erag

eIn

tern

atio

nal

Pres

ent

Yes

Chan

diga

rhEm

ergi

ng IT

des

tinat

ion

and

capi

tal o

f tw

o st

ates

of H

arya

na &

Pun

jab

0.80

4.0

4,41

515

,088

267

2Ye

sG

ood

Dom

estic

Pres

ent

(Moh

ali)

Yes

Koch

iEm

ergi

ng IT

des

tinat

ion

and

the

larg

est c

ity

in th

e st

ate

of K

erel

a, m

ajor

por

t1.

351.

94,

513

5,58

131

31

Yes

Abov

e Av

erag

eIn

tern

atio

nal

Pres

ent

(Triv

andr

um)

Yes

Bhub

anes

hwar

Emer

ging

IT d

estin

atio

n an

d ca

pita

l of t

he

stat

e of

Oris

sa0.

655.

910

,275

3,92

029

32

Yes

Aver

age

Dom

estic

Pres

ent

Yes

Triv

andr

umPo

litic

al c

apita

l of t

he st

ate

of K

erel

a an

d as

pirin

g IT

des

tinat

ion,

aca

dem

ic h

ub0.

880.

814

,673

10,6

5064

54

Yes

Abov

e Av

erag

eIn

tern

atio

nal

Pres

ent

Yes

Coim

bato

reSe

cond

larg

est c

ity in

Tam

il N

adu

Stat

e an

d an

indu

stria

l hub

1.44

2.0

15,8

876,

944

42

Yes

Aver

age

Dom

estic

Pres

ent

Yes

Indo

reTh

e la

rges

t city

in st

ate

of M

adhy

a Pr

ades

h an

d in

dust

rial h

ub1.

634.

89,

425

3,39

115

64

-N

oAb

ove

Aver

age

Dom

estic

Pres

ent

Yes

Ahm

edab

adLa

rges

t city

of s

tate

of G

ujar

at, a

maj

or

acad

emic

hub

and

an

emer

ging

IT

dest

inat

ion

4.51

3.6

10,5

9015

,782

5613

4Ye

sAb

ove

Aver

age

Inte

rnat

iona

lPr

esen

tYe

s

Jaip

urPo

litic

al c

apita

l of s

tate

of R

ajas

than

, Tou

rism

hu

b an

d as

pirin

g IT

ES d

estin

atio

n2.

325.

38,

941

3,71

869

411

Yes

Abov

e Av

erag

eD

omes

ticPr

esen

t (in

Ch

andi

garh

)Ye

s

TIER

III

Viza

gSe

cond

larg

est c

ity in

And

hra

Prad

esh

stat

e,

a m

ajor

por

t and

an

indu

stria

l hub

1.32

2.6

7,17

85,

394

130

22

Yes

Aver

age

Dom

estic

Pres

ent

No

Nas

hik

An in

dust

rial h

ub a

nd w

ine

capi

tal o

f Ind

ia1.

155.

910

,480

2,47

049

22

No

Aver

age

Abse

ntPr

esen

tN

o

Man

galo

reTh

ird la

rges

t city

of K

arna

taka

stat

e an

d a

maj

or p

ort

0.53

2.6

5,41

45,

000

47-

-Ye

sAb

ove

Aver

age

Dom

estic

Pres

ent

No

Luck

now

Polit

ical

cap

ital o

f sta

te o

f Utt

ar P

rade

sh a

nd

an a

cade

mic

hub

2.26

3.6

9,93

31,

190

88

11

Yes

Aver

age

Inte

rnat

iona

lPr

esen

tN

o

Baro

daTh

ird la

rges

t city

of G

ujar

at S

tate

and

an

acad

emic

hub

1.49

3.2

6,73

11,

160

551

1N

oAv

erag

eD

omes

ticPr

esen

tN

o

Nag

pur

Third

larg

est c

ity o

f Mah

aras

htra

stat

e,

acad

emic

and

indu

stria

l hub

2.12

2.8

10,5

2718

,512

213

1Ye

sAb

ove

Aver

age

Inte

rnat

iona

lPr

esen

tYe

s

Sour

ces

1Ce

nsus

ofI

ndia

200

1,U

rban

Agg

lom

erat

ion

Popu

latio

n2

MaF

oiTa

lent

Poo

lMap

ping

Stu

dy2

006

3N

ASSC

OM

Mem

bers

Dat

abas

e(N

ASSC

OM

-N

atio

nalA

ssoc

iatio

nof

Sof

twar

ean

dSe

rvic

esC

ompa

nies

)4

Base

don

pre

senc

eof

atle

asto

neo

fthe

follo

win

gIn

dian

IT-

ITES

Maj

ors-

Wip

ro,T

CS,S

atya

m,In

fosy

s,H

CL(A

ugus

t200

6)

5ST

PI-

Softw

are

Tech

nolo

gyPa

rkso

fInd

iaw

ebsit

e6

Base

don

TCM

ong

oing

exp

erie

nce

Dis

clai

mer

:The

Info

rmat

ion

cont

aine

din

the

mat

rixa

bove

isin

dica

tive

and

com

pile

dfro

mva

rious

pub

lica

ndp

rivat

eso

urce

s.The

Dat

am

ayc

hang

eov

erti

me

and

nog

uara

ntee

ista

ken

fori

tsa

ccur

acyw

hats

oeve

r.


List of Software Technology Parks of India (STPI) Websites / Centers

STPI Key Centres Website

Noida www.stpn.soft.net

Mumbai www.stpmum.soft.net

Bangalore www.blr.stpi.in

Chennai www.chennai.stpi.in

Hyderabad www.hyd.stpi.in

Pune www.stpp.soft.net

Kolkata www.stp-kolkata.com

List of STPI Centers

1 Aurangabad 12 Guwahati 23 Manipal 34 Shimla

2 Bangalore 13 Hubli 24 Mangalore 35 Srinagar

3 Bhilai 14 Hyderabad 25 Mohali 36 Trichy

4 Bhubaneswar 15 Imphal 26 Mumbai 37 Thiruvananthapuram

5 Chennai 16 Indore 27 Mysore 38 Tirunelveli

6 Coimbatore 17 Jaipur 28 Nagpur 39 Tirupathi

7 Dehradun 18 Kanpur 29 Noida 40 Vadodara

8 Durgapur 19 Kolkata 30 Pondicherry 41 Varanasi

9 Gandhinagar 20 Kharagpur 31 Pune 42 Vijaywada

10 Gangtok 21 Lucknow 32 Ranchi 43 Vishakapatnam

11 Gurgaon 22 Madurai 33 Rourkella 44 Warangal

STPI Head Office:

Electronics Niketan6, CGO ComplexLodhi RoadNew Delhi -110 003www.stpi.in

Annexure I

Annexure


State-wiseListofIT-ITESSEZsGrantedFormalApprovalByTheBoardOfApprovals,Govt.OfIndiaUnderTheSEZRules,2006

S. No. State Name of the Developer Location Area (in Hectares)

1 Andhra Pradesh WIPRO Hyderabad 6.00

2 Andhra Pradesh K. Raheja IT Park Madhapur, Ranga Reddy District 36.62

3 Andhra Pradesh Information Technology and Communications Department, Government of A.P. and APIIC

Village Madhurawada, Visakhapatnam

16.00

4 Andhra Pradesh Satyam Computer Services Thotlakonda, Visakhapatnam 20.23

5 Andhra Pradesh Satyam Computer Services Bahadurpalli, Hyderabad 10.52

6 Andhra Pradesh Satyam Computer Services Hyderabad 12.14

7 Andhra Pradesh A.P. Techno Projects Madhupur, Hyderabad 10.00

8 Andhra Pradesh Computer Associates Nanakramguda Village, Ranga Reddy District

12.14


Village Madhurawada, Visakhapatnam

36.00


Village Kesarapally Village, Krishna District

12.00

11 Andhra Pradesh Andhra Pradesh Industrial Infrastructure Corporation

Nanakramguda Village, Serilingampally Mandal, Ranga Reddy District

20.53

12 Andhra Pradesh CMC Gachibowli, Hyderabad 20.59

13 Andhra Pradesh Sanghi Industries Rangareddy Distt. 202.40

14 Andhra Pradesh Divyasree NSL Infrastructure Raidurga Village, Ranga Reddy District

15.18

15 Andhra Pradesh Lanco Mantri Tech Park Private Ranga Reddy District 11.77

16 Delhi Delhi Metro Corporation Shastri Park, Delhi 6.00

17 Haryana Haryana Technology Park Faridabad, Haryana 3.00

18 Haryana Luxor Cyber City Village Sikohpur, District Gurgaon 28.00

19 Haryana Sunwise Properties Gurgaon 10.12

20 Haryana Dr. Fresh Healthcare Gurgaon 30.35

21 Haryana Assotech Realty Gurgaon 10.62

22 Karnataka Shyamaraju and Company Krishnarajapuram, Bangalore 30.00

23 Karnataka Manyata Promoters and DSRK Holdings Private

Bangalore 22.00

24 Karnataka Hewlett Packard (HP) Bangalore 7.00

25 Karnataka WIPRO Bangalore 6.00

26 Karnataka WIPRO Bangalore 5.00

27 Karnataka Vikas Telecom Bangalore 36.00

28 Karnataka Adarsh Prime Projects Village Varthur, Hubli 24.51

Annexure II


29 Karnataka Karnataka Industrial Areas Development Board

Mangalore 203.00

30 Karnataka Cessna Garden Developers Bangalore 19.22

31 Karnataka Tanglin Developments Bangalore - Mysore Highway 27.16

32 Karnataka Infosys Technologies Pajeeru, Kairangala, Kurunadu Village of Bantwal Taluk, Dakshina Kannada District

125.00

33 Karnataka Information Technology Park Whitefield Road, Bangalore 10.88

34 Karnataka Infosys Technologies Hebbal Industrial Area, Mysore 30.99

35 Karnataka San Engineering & Locomotive Co. Whitefield, Bangalore 10.00

36 Karnataka HCL Technopark Jigani Industrial Area, Bangalore 11.05

37 Karnataka Golden Gate Developers Jala Hobli 26.30

38 Kerala Infopark, Kochi Kusumagiri, Village Kakkanad, Ernakulam

37.00

39 Kerala Electronics Technology Park Trivandrum 34.00

40 Kerala Kerala Industrial Infrastructure Dev. Corpn. (KINFRA)

Kizhakuttom, Trivandrum 9.20

41 Kerala Technology Parks Adjacent to Technopark Campus, TVPM

12.55

42 Kerala Unitech Real Estate Project Village Kunnathunadu,Taluk Morkala Desam, Ernakulam

10.00

43 Madhya Pradesh Madhya Pradesh State Industrial Dev. Corpn.

Indore 8.00

44 Madhya Pradesh Medicaps IT Park Indore 12.25

45 Maharashtra Maharashtra Industrial Development Corporation

Rajiv Gandhi Infotech Park, Phase III, Hinjawadi, Pune

229.30

46 Maharashtra Syntel International Talawade Software Park, Pune 16.00

47 Maharashtra Hiranandani Builders Powai 12.57

48 Maharashtra Zeus Infrastructure Village Kopri, Taluka Thane, District Thane

54.22

49 Maharashtra EON Kharadi Infrastructure Kharadi, Pune 18.00

50 Maharashtra Wipro Pune 20.23

51 Maharashtra Infosys Pune 79.80

52 Maharashtra Flagship Infrastructure Hinjwadi, Pune 28.00

53 Punjab Quarkcity India Mohali 20.00

54 Rajasthan Mahindra Gesco Jaipur 49.00

55 Rajasthan Vatika Jaipur SEZ Developers Jaipur 20.23

56 Tamil Nadu Wipro Chennai 32.00

57 Tamil Nadu Tata Consultancy Services Siruseri, Chennai 70.50

58 Tamil Nadu ETL Infrastructure Services Pallikarnai, Chennai 10.50

59 Tamil Nadu Hexaware Technologies Siruseri, Chennai. 11.00

60 Tamil Nadu Syntel International Siruseri, Chennai 11.00

61 Tamil Nadu DLF Info City Developers Chennai 15.00

62 Tamil Nadu Xansa India Chennai 10.00


63 Tamil Nadu Satyam Computer Services Old Mahabalipuram Road, Chennai

20.00

64 Tamil Nadu Electronics Corporation of Tamil Nadu

Sholinganallur village, Tambaram Taluk, Chennai

159.04

65 Tamil Nadu Electronics Corporation of Tamil Nadu

Vilankurichi, Coimbatore North Taluk, Coimbatore District

11.76

66 Tamil Nadu ETL Infrastructure Services Chinglepet, Kanchipuram District 105.00

67 Tamil Nadu Shriram Properties and Infrastructure

Sriperumbudur 10.00

68 Tamil Nadu Coimbatore Hi-tech Infrastructure Coimbatore 60.73

69 Tamil Nadu Cognizant Technology Solutions India

Siruseri, Chennai 11.00

70 Tamil Nadu HCL Technologies Kancheepuram District 20.24

71 Tamil Nadu Nuziveedu Seeds Sholinganallur, Tambaram Taluk, Kanchipuram District

17.32

72 Uttaranchal State Industrial Development Corporation of Uttaranchal

Dehradun 14.20

73 Uttar Pradesh Wipro Greater Noida 20.00

74 Uttar Pradesh Ansal IT City and Parks Greater Noida 30.41

75 Uttar Pradesh Seaview Develpers Noida 12.15

76 Uttar Pradesh HCL Technologies Noida 16.91

77 Uttar Pradesh NIIT Technologies PlotNo.TZ-02, Sector-Tech Zone, ITES Park, Greater Noida

10.12

78 West Bengal M.L. Dalmiya and Company Kolkata 48.00

79 West Bengal DLF Info City Developers (Kolkata) Kolkata 10.12

80 West Bengal Riverbank Holdings (Bata India) Bata Nagar, 24 South Parganas 10.00

81 West Bengal Enfield Exports Panagarh Bazar, District Burdwan 26.00

82 West Bengal Shapoorji Pallonji and Company Kolkata 20.00

TotalAreainHectares 2,587.66


State-wiseListofIT-ITESSEZsGrantedIn-principleApprovalbyTheBoardofApprovals,Govt.ofIndiaUnderTheSEZRules,2006

S.No. State NameoftheDeveloper LocationArea(in

Hectares)1 Delhi Sweet Home Estate Village Bamnouli, Vasant Vihar, New Delhi 11.002 Haryana Vipul Infrastructure Fazilpur & Behrampur Villages, Gurgaon 60.003 Haryana Orion Infrastructure Bandhwari, Distt. Gurgaon 130.004 Haryana Roseview Infrastructure Developers Gurgaon 44.005 Haryana Emaar MGF Land Shikohpur, Distt. Gurgaon 100.006 Haryana Emaar MGF Land Gurgaon 28.007 Haryana Emaar MGF Land Villages Kherki Daulla and Sihi, Distt. Gurgaon 20.008 Haryana Emaar MGF Land Lakhnaula, Distt. Gurgaon 240.009 Haryana Emaar MGF Land Bans Hariya, Gurgaon, Haryana 120.00

10 Karnataka Primal Projects Bellandur Village, Hubli 12.3311 Karnataka Shell India Bangalore 10.0012 Karnataka Concord Investments Kasba Hobli, Bangalore Rural Distt. 13.4413 Karnataka B.A. Tech Park Thumbe Village, Bantwal Taluka 12.0014 Karnataka HI Skill Investment Consultancy North Bangalore (near the new international

airport)

100.00

15 Karnataka Adarsh Prime Projects Hobli, Anekal Taluk, Bangalore Distt 468.6216 Kerala Smart City (Kochi) Infrastructure Kusumagiri, Kakkanad, Ernakulam District 404.0017 Kerala Sutherland Global Services Kalamassery, Kochi 10.0018 Madhya

Pradesh

Parsvnath Developers Indore 30.76

19 Madhya

Pradesh

Genpact Bhopal 20.25

20 Maharashtra K. Raheja Universal Navi Mumbai 20.6421 Maharashtra K. Raheja Universal Navi Mumbai 13.0022 Maharashtra Xansa Talwade Software Park 10.0023 Maharashtra Lodha Developers Dombivili 32.0024 Orissa DLF Bhubaneshwar 22.0025 Orissa Genpact Bhubaneshwar 10.0026 Punjab Shipra Estate Developers Dera Bassi,Tehsil Patiala 20.0027 Rajasthan Genpact Jaipur 10.0028 Tamil Nadu Alliance Business Parks Thoraipakkam, Chennai 10.1129 Tamil Nadu Velankanni Information System Sriperumbudur 100.0030 Uttaranchal Parsvnath Developers Sahastradhara Road, Dehradun 14.0031 Uttar Pradesh Aligarh Industrial Park Main G.T. Road, near Aligarh 132.0032 Uttar Pradesh Pavitra Dham Constructions Greater Noida 22.2533 Uttar Pradesh Xansa India Greater Noida 10.0034 West Bengal Asian Gateway Siliguri 200.0035 West Bengal Enfield Infrastructure Nr. Rajgarh, Distt. 24, Parganas (N) 20.0036 West Bengal Enfield Infrastructure Kharagpur 16.00

TotalAreainHectares 2,496.40

Annexure III


Mumbai Office Khanna Construction House, III Floor, 44 Dr. R. G. Thadani Marg, Worli, Mumbai – 400 018

Anuj PuriManaging Director

Tel: (022) 2494 1404 / 0871 / 0978, 2496 2427Fax: (022) 2494 1321 / E-mail: [email protected]

Pawan Swamy International Business Group

[email protected]

Delhi Office 1108 – 1110, Ashoka Estate, 24 Barakhamba Road, Connaught Place, New Delhi 110 001

Santhosh KumarCOO

Tel: (011) 2332 1184 / 85, 2331 7070 / 7766Fax: (011) 2371 3368 / E-mail : [email protected]

Pankaj RenjhenAssociate Director

Tel: (011) 2332 1184 / 85, 2331 7070 / 7766Fax: (011) 2371 3368 / E-mail: [email protected]

Deepak Bhavsar President- Consulting and Land Agency Services

[email protected]

Chennai Office New No. 132 (Old No. 78), Dr. Radhakrishnan Salai, Chennai – 600 004

N. AnanthnarayananRegional Director

Tel : (044) 2811 6789Fax : (044) 2811 4567 / E-mail : [email protected]

Bangalore Office “Pride Elite”, Office No. 201, II Floor, No. 10, Museum Road, Bangalore - 560 001

Mahesh LaxmanRegional Director

Tel: (080) 4112 1270 / 71 / 72 / 73Fax: (080) 4112 1274 / E-mail: [email protected]

S. SrinivasanHead- Consulting (India)

[email protected]

Kolkata Office Berger House, III Floor, Premises No. 129, Park Street, Kolkata – 700 017

Abhijit DasRegional Director

Tel: (033) 2227 3293 / 94 / 96Fax: (033) 2227 3297 / E-mail: [email protected]

Hyderabad Office Office No. 103, I Floor, 6-3-883/ A-1, Imperial Plaza, Somajiguda, Hyderabad – 500 082

George JohnsonRegional Director

Tel: (040) 6683 7070 / 3291 4352Fax: (040) 6683 7873 / E-mail: [email protected]

Pune Office 506, V Floor, Nucleus, CTS No. 1, Church Road, Pune – 411 001

Mohammed AslamRegional Director


Chandigarh Office 304, III Floor, 120 - 122 Sector 17C, Chandigarh – 160 017

Manoj KashyapRegional Director


Key Contacts of TCM

Key ContactsFor further information on our commercial and corporate real estate services, please contact:

An ISO 9001 : 2000 Certi�ed Company

Anuj PuriManaging DirectorTrammell Crow Meghraj,MumbaiTel: (022) 2494 1404Email: [email protected]

Santhosh KumarChief Operating O�cerTrammell Crow Meghraj,New DelhiTel: (011) 2331 1184Email: [email protected]

Pawan SwamyPresident - Corporate ServicesTrammell Crow Meghraj,MumbaiTel: (022) 2495 2148Email: [email protected]

Disclaimer:This document is for internal circulation and is not for sale. No part of this publication can be reproduced without the written consent of Trammell Crow Meghraj Property Consultants Private Limited. Although e�orts have been made to ensure the accuracy of information

contained in this strategy paper, however, Trammell Crow Meghraj Property Consultants Private Limited cannot accept liability for errors and omissions contained in this strategy paper. Trammell Crow Meghraj will not be responsible for any losses incurred due to action

taken by readers on the basis of information contained in the strategy paper. Readers are advised to seek expert opinion before taking any real estate decision.

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