Major IT- ITES Hubs in India. A Snapshot

Transcription

1 Major IT- ITES Hubs in India A Snapshot India Research September, 2006

2 India Research September, 2006

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4 Contents Foreword 04 List of Abbreviations 05 Definitions and Illustrations IT/ ITES Industry in India: An Overview Global Position of India India s Advantages: Cost-effectiveness Key Highlights of the Indian IT-ITES Industry India-Based Service Provider Landscape Indian IT Services Exports Scenario Indian IT-ITES Exports by Geographical Regions Indian IT-ITES Services Exports by Key Verticals Employment Statistics Developments in Indian Domestic Market Composition of the Domestic IT-ITES Market Future Outlook Impact on Office Sector Market City Profiles Mumbai Delhi- NCR Bangalore Hyderabad Chennai Pune Kolkata Summing Up Comparison of Cities 78 Annexure 80 Key Contacts 85

5 Foreword 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 s.srinivasan@tcmindia.net Cell: Disclaimer In 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.

6 Abbreviations AP Andhra Pradesh BDA Bangalore Development Authority BFSI Banking Financial Services Insurance BSNL Bharat Sanchar Nigam Limited BUA Built Up Area BT Biotechnology BTS Built To Suit BMTC Bangalore Metropolitan Transport Corporation BPO Business Process Outsourcing BOOT Built Operate Own and Transfer CBD Central Business District CAGR Compound Annual Growth Rate CDMA Chennai Metropolitan Development Authority DMRC Delhi Metro Rail Corporation FY Financial Year FDI Foreign Direct Investment GDP Gross Domestic Product HUDA Hyderabad Urban Development Authority HMDA Hyderabad Metropolitan Development Authority IT Information Technology INR Indian National Rupee ITES Information Technology Enabled Services MNC Multi National Company MMR Mumbai Metropolitan Region MSEB Maharashtra State Electricity Board MIDC Maharashtra Industrial Development Corporation MRTS Mass Rapid Transport System MTNL Mahanagar Telephone Nigam Limited NH National Highway NHAI National Highways Authority of India NCR National Capital Region NA Not Available NASSCOM National Association of Software and Service Companies PC Personal Computer RE Real Estate R&D Research and Development RIL Reliance Industries Limited SEZ Special Economic Zone SOHO Small Office Home Office SPV Special Purpose Vehicle Sq. ft. Square Feet Sq. km. Square Kilometers SEEPZ Santacruz Electronics Export Processing Zone TNRDC Tamil Nadu Road Development Authority USD United States Dollar US United States of America UK United Kingdom

7 Definitions and Illustrations 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, 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, 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, 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, Net Absorption 2006 Total built up area of commercial office space leased till end of second quarter of 2006, i.e., June 30, 2006.

8 Chapter One IT/ ITES Industry in India: An Overview 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 India s share of global IT services market USD Billion 100 percent: % 2.2% 2.3% 3.2% 4.7% 7.0% 80% 60% India s share of global IT / ITES market USD Billion 100 percent: 1,842 1,322 3, % 0.8% 0.9% 1.5% 2.5% 4.4% India s share of global ITES market USD Billion 100 percent: , % 0.2% 0.3% 0.6% 1.3% 2.9% 80% 80% 60% Increase in overall market share (IT and ITES) to 4.4 per cent by % Source: NASSCOM-McKinsey. KPMG Note: Industry estimates up to 2012 are based on available short-term estimates and would need to be revised periodically based on actual performance.

9 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 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, costeffectiveness 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 The IT Industry in India). Offshore Location: India Offers the Best Package USD per annum (ongoing costs), per employee India Philippines Malaysia China Russia People Infrastructure Agent and management costs Recruitment & Training ICT & Utility 5,300 5,500 11,000 7,700 14, ,476 1,584 1,594 1,000 Tax Facility Tax 1,520 1,605 1,900 1,900 2, ,350 Total 8,032 8,813 14,716 11,416 21,980 Source: DB Research Source: Strategic Review The IT Industry in India

10 1.3 Key Highlights of the Indian IT-ITES Industry Indian IT Industry - Sector-Wise Break-up USD Billion FY 2004 FY 2005 FY 2006 IT Services Exports Domestic ITES-BPO Exports Domestic Engineering Services / Software Products Exports Domestic Total Software and Services Revenues - Of which, Exports (%) Source: NASSCOM Annual Survey (77%) (78%) (80%) The Indian IT-ITES industry grew at a rate of 31 percent in , registering revenues of USD 29.5 billion, up from USD 22.6 billion in Out of this, the share of the domestic market in 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 to 4.8% in India s strengths emerged clearly in 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 Tier I Players % of IT Services 4-5% of BPO Tier II IT Players % of IT Services 4-5% of BPO Offshore operations of Global IT majors % of IT Services 10-15% of BPO Performance Revenues greater than USD 1 billion Revenues USD 100 million-usd 1 billion Revenues USD 10 million-usd 500 million Pure play BPO providers % of BPO Revenues USD 10 million-usd 200 million (Excluding top provider with USD 500 million) Captive BPO units % of BPO Revenues USD 25 million-usd 150 million (top 10 units) Emerging Players > % of IT Services 5% of BPO Source: NASSCOM McKinsey Report, Revenues less than USD 100 million (IT) Revenues less than USD 10 million (BPO) 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.

11 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 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) Support and Training 11% FY FY 2004 FY 2005 FY 2006E Note: Employee figures rounded to the nearest 000 Source: NASSCOM Outsourcing Engagements 33% Project Based Engagements 50% 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. Indian IT-ITES Exports: Share of Key Geographic Regions FY % 1% Americas Asia Oceania/Middle East 8% Europe Others 68% Source: NASSCOM 10

12 1.7 Indian IT-ITES Services Exports by Key Verticals Services exports in FY displayed continued strength in traditional vertical market segments including BFSI, manufacturing and telecommunications. Underlying the increasing geographic and vertical market penetration is the continuing supplyside 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 Employment Statistics The total number of IT / ITES-BPO professionals employed in India is estimated to have grown from 284,000 in to 1,287,000 in , growing by over 230,000 in 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 Developments in The year 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 Indian Domestic Market 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 FY 2004 Revenues (USD Billion) FY FY 2006 E Employees ( 000) 1 Source: Department of Information Technology, Govt. of India, Annual Report

13 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 and is expected to exceed USD 12.4 billion, growing at nearly 22 per cent in FY 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 In spite of continued pricing pressure in key categories, domestic hardware revenues grew by 23% percent in FY and are expected to maintain similar growth rates in FY Key vertical markets include Telecom, BPO, BFSI, manufacturing and education. Domestic IT-ITES Market Share of Key Segments (%) % 6% Hardware IT Services Software ITES - BPO 34% 53% There has been a noticeable growth in demand for services - in scale as well as depth. Estimates for 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 to USD 3.5 billion in at a CAGR of 11.5 percent over FY 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: 12

14 1.12 Future Outlook 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. 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 , clocking revenues of USD billion. IT / ITES exports are likely to grow by 27-30% in , posting revenues of USD 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) USD Billion FY2004 Dec. 08 FY2010 IT Timeline ITES

15 1.13 Impact on Office Sector Market 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 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. Total Inventory of Office Space (million sq. ft.) Total Inventory of IT- ITES Space (million sq. ft.) Bangalore* Chennai* Delhi- NCR* Hyderabad** Kolkata* Mumbai* Pune** Total Source: Trammell Crow Meghraj Field surveys 2nd Q, 2006 * Primarily Grade A Properties ** Grade A & B Properties 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. 2 Strengthening the Human Resource Foundation of India ITES. 14

16 Chapter Two City Profiles 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. 15

17 Mumbai Case Study Mumbai: General Facts 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. Key Strengths for IT-ITES development: Established corporate hub, availability of human resources with varied skills and experience. Geographic Location Climate 18.96ºN; 72.82ºE Tropical, humid Temperatures April - July: 30ºC - 35ºC Nov - Mar: 20ºC - 30ºC Area Population (2001) Population Growth Rate City Functions Factors governing real estate sq. km million 3.0% ( , CAGR) Finance, trade and commerce, services, administrative, IT & ITES Sale of locked land assets for real estate development; Foreign Direct Investment Investment in real estate market High investment activity IT- ITES Facts * Estimated Total Employees in IT-ITES Sector ** Graduates Passing Out per year suitable for IT-ITES Sector Source: Ma FOI study, 2006; Census of India, 2001 IT- ITES sector presence IT and ITES growth (Annual) IT - 40% - 60% ITES - 40% - 60% No. of IT- ITES firms (Total) IT ITES - 83 No. of IT- ITES firms (NASSCOM Registered) IT ITES - 61 IT- ITES activity IT- ITES majors present Players planning expansion or new facility Human Resources Enterprise solutions, e-business, product engineering, embedded design and infrastructure management services TCS, Infosys, Wipro, Siemens, Accenture, Patni Computers, World Network Services Deutsche Bank, Lehmann Brothers, Bank of America Talent Pool* 278,869 Rosource Pool** 31,361 No. of Higher Education Institutes 303 Attrition 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 - 60:40 Infrastructure & Real Estate Availability Infrastructure Status Airport connectivity Presence of STPI Availability of IT-ITES Grade Real Estate Compensation (Million INR per annum) Average International Entry / Junior level IT ITES Middle level IT ITES Senior level IT ITES - > 0.80 Yes Yes 16

18 IT - ITES Locations TO AHMEDABAD Railway Station Central Railway Line N Western Railway Line Harbour Railway Line Express Highway Airport IT-ITES Hubs TO NASIK BHAYANDER MIRA RD BHIWANDI GORAI MANORI UTTAN BORIVALLI BORIVALLI KANDIVALI MALAD WESTERN EXPRESS HIGHWAY Thane MAJIWADA NH 3 KALYAN ERANGAL Malad AIROLI MADH JUHU BANDRA ANDHERI Andheri GHATKOPAR AIRPORT SANTACRUZ KHAR GOREGAON Powai/ Vikhroli KURLA EASTERN EXPRESS HIGHWAY BHANDUP Navi Mumbai VASHI PAVANE KHARGHAR DADAR MATUNGA CHEMBUR MANKHURD NAVI MUMBAI Navi Mumbai WORLI SEWRI PANVEL TARDEO CHURCH GATE MALABAR HILL MAZAGAON CST TO PUNE COLABA URAN VINDHANE CHINER 17

19 IT- ITES Real Estate Scenario Office space: Absorption, Vacancy and Rents 3,000 Net Absorption (thousand sq. ft.) Four Quarter Average 30% Total Vacancy Average Asking Rents (INR/sq. ft./month) 160 2,500 2,000 25% 20% ,500 15% 80 1, % 5% Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06 0% 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q 06 2Q 06 0 Office Space Summary Submarket Central Business District Total Inventory (sq. ft.) Under Construction (sq. ft.) 2,157, Suburban District 1 2,175, , (Worli, Prabhadevi Parel) Suburban office 10,626,000 1,105, market 1 (Bandra Kurla Complex) Suburban office 7,539, , market 2 (Andheri-Kurla) Suburban office 4,687,000 2,770, market 3 (Goregaon, Malad) Powai / Vikhroli / 3,622,000 1,684, Thane Navi Mumbai 3,001, , Total 33,807,000 5,589, ,430,000 4,973, Source: Trammell Crow Meghraj database (IT- ITES constitutes appx 40% of the office space market) New Deliveries (sq.ft.) Total Vacancy (%) Net Absorption 2nd Q 2006 (sq. ft.) Net Absorption 2006 (sq. ft.) Average Asking Rent (INR per sq.ft. per month) 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. 18

20 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. Fairmont, Powai Mindspace, Malad Akruti Softtech Park, Andheri Raheja Info City, Navi Mumbai IT Parks in Mumbai 3 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. Source: Trammell Crow Meghraj field surveys, All Grade A & B projects, which have been completed, under construciton and proposed stage. 19

21 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 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. 20

22 Appendix: 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 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 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 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

23 Bandra Worli Sea Link Bandra Worli Sea Link is planned on build-operate-transfer basis, which will have a sixkm 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 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. Government Sponsored IT Parks Name of the Complex Santacruz Electronics Export Processing Zone (SEEPZ) Location MIDC, Andheri (East), Mumbai Area of the Park 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 km away Water Supply MIDC Power Supply Separate substation is installed and is operational for uninterrupted power supply to the industrial units. Telephone MTNL telephone exchange High 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 Park Location Mhape, Navi Mumbai Area of the Park 48 acres Area now available for allotment 3,760,000 Rentals 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 MIDC Power Supply Sub Station (22/11 KV) Telecom MTNL telephone exchange Present status of the Complex Occupied Name of the Complex International Infotech Park Location Vashi, Navi Mumbai Area of the Park 0.6 million sq. ft. Area now available for allotment - 22

24 Rentals Connectivity Water Supply Power Supply Telecom Present status of the Complex INR 40- INR 45 per sq. ft. per month (approx. USD 115 -USD 130/sq. m/year) Office space complex at Vashi Railway Station. Available MSEB MTNL telephone exchange Occupied Name of the Complex International Technology Center, Belapur Location Belapur, Navi Mumbai Area 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 Station Water Supply Available Power Supply MSEB Telecom MTNL telephone exchange Present status of the Complex Occupied Name of the Complex Location Area of the Park Saleable area Area now available for allotment Rentals Connectivity Water Supply Power Supply Telecom Present status of the Complex Airoli Knowledge Park Airoli, Navi Mumbai 15 Hectare ( sq. ft.) INR per sq. ft. per month (approx. USD /sq. m/year) It is situated just off the National Highway between Mumbai and Pune and 2 minutes from the Ghansoli Railway Station and Koparkhairane Railway Station. NMC (Navi Mumbai Municipal Corporation) MSEB MTNL (Mahanagar Telecome Nigam Limited) Partly occupied IT Parks by Private Developers in Mumbai S.No. Project / Location Developer Built up area (million sq. ft.) Status 1 Dhirubhai Ambani Knowledge City Reliance Group 2.30 Completed 2 Mindspace (Malad) K Raheja Corp 5.00 Completed 3 Hiranandani- Lexington, Thane Hiranandani 0.13 Completed 4 Winchester, Fairmart, Powai Hiranandani 0.09 Completed 5 Godrej Campus, Vikroli Godraj & Boyce 0.80 Completed 6 Commercial development- Powai Hiranandani 0.08 Under construction 7 Mindspace, Malad K Raheja Corp 7.84 Under construction 8 Hiranandani, Ghodbunder Road, Thane Hiranandani 0.10 Under construction 9 K Raheja Infocity K Raheja Universal 5.49 Approval stage 10 Raheja Universal, Navi Mumbai Raheja Universal 0.08 Built to suit, planning stage 11 Raheja Corp, Navi Mumbai Raheja Corp 0.10 Built to suit, planning stage Source: Trammell Crow Meghraj field surveys, 2006 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. 23

25 Delhi-NCR Case Study Delhi-NCR: General Facts 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. 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. Geographic Location Climate 28.7ºN; 77.2ºE Semi-arid climate with extreme summers and winters Temperatures April - June: 35ºC - 46ºC Dec - Feb: 12ºC - 25ºC Area Population (2001) Population Growth Rate City Functions Factors governing real estate 1,483 sq. km million (Delhi UA) 4.2 % ( , CAGR) Administrative, Services, Industrial, IT & ITES Government initiatives, Public private partnership in suburbs Investment in real estate market Global and Local IT- ITES Facts * Estimated Total Employees in IT-ITES Sector ** Graduates Passing Out per year suitable for IT-ITES Sector Source: Ma FOI study, 2006; Census of India, 2001 IT- ITES sector presence IT and ITES growth (Annual) IT - 40% - 60% ITES - 40% - 60% No. of IT- ITES firms (Total) IT ITES No. of IT- ITES firms (Nasscom Registered) IT ITES IT- 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 Xansa Players planning expansion or new facility Reliance SEZ, Dells BPO Human Resources Talent Pool* 282,708 Rosource Pool** 37,870 No. of Higher Education Institutes 315 Attrition 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 - 60:40 Infrastructure & Real Estate Availability Infrastructure Status Good Airport connectivity International Presence of STPI Yes Availability of IT-ITES Grade Real Estate Yes Compensation ( Million INR per annum) Entry / Junior level IT ITES Middle level IT ITES Senior level IT ITES - >

26 IT - ITES Locations SHARMA ENCLAVE Rani Enclave LAKSHMI PARK RAMA VIHAR PREM NAGAR SHIV VIHAR OM VIHAR ADHYAPAK NAGAR VIKASPURI SULTAN PURI MANGOLPURI VIKAS PURI BUDH VIHAR MANGOLPURI PASCHIM VIHAR TILAK NAGAR JANAKPURI PASCHIM VIHAR MEERA BAGH ROHINI SHAKUR BASTI TAGORE GDN RAJOURI GARDEN SUBHASH NAGAR HARI NAGAR SARASWATI VIHAR PUNJABI BAGH PRITAMPURA KIRTI NAGAR SHAKURPUR COLONY MOTI NAGAR NARAINA NH - 1 TO CHANDIGARH SHALIMAR BAGH PATEL NAGAR PUSA INSTITUTE JAHANGIR PURI ADARSH NAGAR SHASTRI NAGAR ANAND PARBAT KAROL BAGH MODEL TOWN DELHI Rly. STATION SARAI ROHHILLA Rly. STATION SADAR BAZAAR CHANDANI CHAWK RAJENDRA NAGAR DR. MUKHERJEE NAGAR DELHI UNIVERSITY KAMLA NAGAR NEW DELHI Rly. STATION CONNAUGHT PLACE (CBD) DMRC IT PARK GANDHI NAGAR YAMUNA VIHAR LAKSHMI NAGAR ASHOK NAGAR VISHWAS NAGAR NAND NAGRI ANAND VIHAR INDRAPRASTHA EXTN. DILSHAD GARDEN SHALIMAR GARDEN SAHIBABAD INDUSTRIAL AREA VAISHALI KAUSHAMBI RAJENDRA NAGAR INDIRA PURAM DELHI - NCR NH - 24 TO MEERUT GHAZIABAD DWARKA UTTAM NAGAR MAHAVIR ENCLAVE RAJ NAGAR SAGARPUR RAJ NAGAR PEHLADPUR AIRPORT DHAULA KUAN VASANT VIHAR CHANAKYA PURI MOTI BAGH R K PURAM SAROJINI NAGAR SAFDARJUNG ENCLAVE LODHI COLONY SOUTH EXTENSION LAJPAT NAGAR NIZAMUDDIN Rly. STATION PATPARGANJ MAYUR VIHAR I IT HUB NOIDA IT HUB N GREATER KAILASH I NEHRU PLACE TO GREATER NOIDA VASANT KUNJ MALVIYA NAGAR GREATER KAILASH II KALKAJI CR PARK GOVIND PURI OKHLA INDUSTRIAL AREA State Boundary Railway Station SANGAM VIHAR Railway Line Road GURGAON NH - 8 TO JAIPUR IT HUB NH - 2 TO AGRA FARIDABAD Airport IT-ITES Hubs BABUPUR BASAI RD. KADIPUR INDL. AREA VISHNU GARDEN SURYA VIHAR DEVI LAL COLONY UDYOG VIHAR PHASE VI IOC COLONY NEW PALAM VIHAR ASHOK VIHAR LAXMI GARDEN ARJUN NAGAR RAJIV NAGAR PALAM VIHAR SHEETALA COLONY ADARSH NAGAR RAJIV NAGAR PATEL NAGAR RAJIV GANDHI CHOWK 2 TO SOHNA DAULAT NASIRABAD DLF COLONY ISLAMPUR 8 CHAND NAGAR 3 7 MOHYAL COLONY DAULATPUR 11 GREEN WOOD CITY MAY FIELD GARDEN IFFCO CHOWK LEISURE VALLEY SURYA VIHAR KOYAL VIHAR UDYOG VIHAR SHANKAR CHOWK DLF CITY PHASE II 9 DLF CITY PHASE IV SUSHANT LOK WAZIRABAD GURGAON CHAKARPUR FROM AIRPORT GARDEN ESTATE MEHRAULI GURGAON MARG 10 GURGAON FARIDABAD MARG DLF GOLF COURSE DLF CITY PHASE V DLF CITY PHASE III NOIDA HAPUR BYPASS MAYUR VIHAR PH I MAYUR VIHAR PH II PATPARGANJ MAYUR VIHAR PH I MAYUR VIHAR HIMMATPUR PH I EXTN CHILLA SARDA BANGAR NEW ASHOK NAGAR 1 SARSWATI KUNJ 14 14A DABRI ROAD 15 15A UDYOG MARG BHEL COLONY A FILM CITY NH 24 GHAZIPUR DAIRY KHICHRIPUR FARM KALYANPURI TRILOKPURI VASUNDHARA ENCLAVE KONDLI 5 HAROLA 4 19 NEW KONDLI 27 ATTA 28 18MARKET MAYUR VIHAR PH III CHORA JHUNDPURA SADARPUR 12 CHORA 8 MOR 22 21A NOIDA 24 STADIUM ASHOK MARG 30 NITHARI ARJUN VIHAR CHHALERA BANGER GREATER NOIDA EXPRESSWAY 3 HAPUR BYPASS MAKANPUR COLONY DAYAL NAGAR KHORA KHORA COLONY AZAD VIHAR TULSI MARG 40 BISHANPURA INSTITUTIONAL AREA 7 RASULPUR MOMA AGHAPUR GIJHAUR JAIN ROAD ELECTRONIC CITY 6 50 DADRI ROAD HOSHIARPUR BARAULA GREATER NOIDA 1. DLF Infinity Tower 2. Unitech Infocenter 3. DLF IBM Tower 4. Building 8 (A,B,C) in DLF Cyber City 5. Building 9 (A,B) in DLF Cyber City 7. Park Centra 8. Vatika Technology Park 9. Vatika City Point 10. Vipul Tech Square 11. Unitech Techworld 1. Express Towers 2. Logix Park 3. Logix Technopark 4. Maple Corporate Park 5. Logix Infotech Park 6. Logix Cyber Park 7. Unitech Into Space 8. The Corenthum 6. Building 10 (A,B,C) in DLF Cyber City 25

27 IT- ITES Real Estate Scenario Office space: Absorption, Vacancy and Rents Net Absorption (thousand sq. ft.) Four Quarter Average Total Vacancy Average Asking Rents (INR/sq. ft./month) 2,500 30% 140 2,000 25% 120 1,500 1, % 15% 10% 5% Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 0% 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 0 Office Space Summary Submarket Total Inventory (sq. ft.) Under Construction (sq. ft.) New Deliveries (sq. ft.) Total Vacancy (%) Net Absorption 2nd Q 2006 (sq. ft.) Net Absorption 2006 (sq. ft.) Average Asking Rent (INR per sq.ft. per month) CBD (Connaught Place) Off CBD/ South Delhi Locations 1,299, ,000 35, ,103,000 1,513, ,000 75, Gurgaon 10,526,700 2,016, , ,200,000 1,600, Noida 2,070, , , , , Total 15,998,700 4,429, , ,770,000 2,510, Source: Trammell Crow Meghraj database (IT- ITES constitutes appx 75% 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 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 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 per sq.ft. per month. Capital values and rental rates have appreciated by 40% in the past quarter. 26

28 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. Building 8 in DLF Cyber City, Gurgaon DLF IBM Tower, Gurgaon Express Towers, Noida Uni Tech World, Gurgaon IT Parks in Delhi-NCR Govt sponsored Privately developed DMRC IT Park- I, Delhi DMRC IT Park- II and III, Delhi Total Operational Total Under Construction Total Proposed Area 0.3 million sq. ft. 0.6 million sq. ft. 3.8 million sq. ft. 7.4 million sq. ft. 2.6 million sq. ft. Source: Trammell Crow Meghraj field surveys,

29 Infrastructure Overview 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. 28

30 Appendix: Delhi-NCR Upcoming Developments 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 Extension to NOIDA by Extension to Meerut via Ghaziabad by Coverage of South Delhi by 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. 29

31 30 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.

32 List of major IT-ITES projects in Delhi NCR Location / Project Developer Built up Area (Sq. ft.) Delhi Status 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 Infocenter Building 1 & 2 (Phase I) Unitech Infocenter Building 3 (Phase I) Unitech 940,000 Planned 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 B in 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 Source: Trammell Crow Meghraj field surveys,

33 Bangalore Case Study Bangalore: General Facts 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. 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. Geographic Location Climate Temperatures Area Population (2001) Population Growth Rate City Functions Factors governing real estate N and E Dry tropical savannah type May - June: 21º C - 33º C Dec - Jan: 15º C - 25º C 2,190 sq. km million 3.8% ( , CAGR) Services, IT & ITES, Industrial, Administrative capital of the state IT-ITES development Investment in real estate market Corporates IT- ITES Facts * Estimated Total Employees in IT-ITES Sector ** Graduates Passing Out per year suitable for IT-ITES Sector Source: Ma FOI study, 2006; Census of India, 2001 IT- ITES sector presence IT and ITES growth (Annual) IT - 25% - 30% ITES - 40% - 50% No. of IT- ITES firms (Total) IT ITES No. of IT- ITES firms (Nasscom Registered) IT ITES - 67 IT- ITES activity IT- ITES majors present Players planning expansion or new facility Human Resources Investment Banking support services, technical support, engineering design and GIS support services, call/contact centres and transaction processing companies Infosys, Wipro, TCS, Intelenet, HTMT, IBM, Accenture, Congnizant, Genpact, Siemens, HP, Compaq, HSBC. Accenture, Advance Micro Devices, Synergy Images Pvt Ltd. Talent Pool* 341,374 Rosource Pool** 38,130 No. of Higher Education Institutes 445 Attrition Rates IT - 25% - 30% ITES - 40% Migration Trends Across the country. Migrants constitute 30-40% of the employee population Gender Balance (Male to female ratio) IT - 70:30 ITES - 60:40 Infrastructure & Real Estate Availability Infrastructure Status Airport connectivity Presence of STPI Availability of IT-ITES Grade Real Estate Compensation (Million INR per annum) Average International Entry / Junior level IT ITES Middle level IT ITES Senior level IT ITES Yes Yes 32

34 NH 7 IT - ITES Locations TO DODDABALLAPUR TO BELLARY PROPOSED INTERNATIONAL AIRPORT N TO TUMKUR TO TUMKUR PEENYA INDUSTRIAL AREA 2 CONURBATION BOUNDARY TO CHENNAI NH 4 11 CORPORATION BOUNDARY PERIPHERAL ROAD OUTER RING ROAD 3 NH 4 15 TO CHENNAI BANGALORE METROPOLITAN BOUNDARY TO MAGADI PERIPHERAL ROAD CII SH 17E RLY. STATION VIDHANASOUDHA ELEVATED ROAD CITY MARKET PALACE INTERMEDIATE RING ROAD AERODROME OUTER RING ROAD COMMERCIAL TOWNSHIP MAINTENANCE AREA KUMBALAGODU INDUSTRIAL AREA EXPRESS WAY LINK ROAD UTTARAHALL NH 209 PERIPHERAL ROAD BANNERGHATTA ROAD NH 7 27 ELECTRONIC CITY PROPOSED TRUCK TERMINUS 6 VEERASANDRA INDUSTRIAL AREA TO HOSUR TO SURJAPURA BANNERGHATTA BIDADI TO MYSORE KPC POWER PLANT TO MYSORE TOYOTO PLANT KIADB INDUSTRIAL AREA (BIDADI) CORPORATE TOWNSHIP TO KANAKAPURA JIGANI INDUSTRIAL AREA SH 86A TO ANEKAL Railway Line Roads Airport Railway Station IT-ITES Destinations 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 33

35 IT- ITES Real Estate Scenario Office space: Absorption, Vacancy and Rents 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Net Absorption (thousand sq. ft.) Four Quarter Average 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q 06 2Q 06 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Total Vacancy Average Asking Rents (INR/sq. ft./month) 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q Office Space Summary 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 (INR per sq.ft. per month) Prime CBD 9,941,500 1,300, , , , Non-Prime CBD 12,421,700 3,000, , ,530 3,837, Suburban 27,994,900 5,000,000 5,074, ,428,435 6,787, Total 50,358,100 9,300,000 5,801, ,087,240 10,940, Source: Trammell Crow Meghraj database (IT- ITES constitutes appx 80% 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 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 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. 34

36 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. Prestige IT Park Salarpuria GR Tech Park-II International Tech Park, Whitefield Brigade Tech Park IT Parks in Bangalore Govt sponsored International Technology Park (ITP) Electronic City Export Promotion Industrial Park IT Corridor Project Privately developed Operation total Under Construction Total Proposed Total Source: Trammell Crow Meghraj field surveys Area 69 acres 330 acres 288 acres 19,000 acres 5.3 million sq. ft million sq. ft. 67 million sq. ft.(includes 1,450 acres proposed IT hardware park by Shapoorji Pallonji at Devanahalli) 35

37 Infrastructure Overview 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 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. 36

38 Appendix: Bangalore Upcoming Developments 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. 37

39 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 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

40 List of major IT Parks S.No. Project Developer Location 1 Salarpuria GR Tech Park (Phase II) Salarpuria Group of Companies 2 IBC Knowledge Park India Builders Corporation (Phase I) 3 Ozone Tech Park Ozone Properties Ltd. Source: Trammell Crow Meghraj field surveys, 2006 Next to Whitefield, ITPL Build up Area (sq. ft.) Average Lease Rental (INR per Sq. ft. per month) Status/Expected Completion 1,200, Completed Bannerghatta Road 700, Completed Hosur Road 450, Completed 4 RMZ Centennial RMZ Corp Brookfield Campus I- 225,000 Campus II- 200,000 Campus III-200, Completed 5 Technology Park Prestige Group Outer Ring Road 100, December SJR IT Park SJR Group EPIP Zone Whitefield 700, Phase I complete 7 Brigade Tech Park Brigade Group Whitefield 439, March Salarpuria Softzone Salarpuria Group of Companies 9 Salarpuria Touchstone Salarpuria Group of Companies 10 Salarpuria Supreme Salarpuria Group of Companies Outer Ring Road 800, December 2007 Outer Ring Road 350, December 2007 Outer Ring Road 200, Completed 11 RMZ Ecospace RMZ Corp Outer Ring Road 2,000, December Bharat IT Park Surya Constructions Sarjapur Road 215, December Bagmane Tech Park Bagmane Group CV Raman Nagar 260, phases completed, new phase under construction 14 Janapriya Pride Engineers Synidcate ITPL Road 300, December AMR Tech Park AMR Group Hosur Road 800, st Phase completed 16 Manyata Tech Park Manyata Promoters Pvt. Ltd. 17 Ecozen Business Park 18 Adarsh Tech Park (Warm Shell) 19 Cessna Business Park Ring Road 6,000,000 Under construction RMZ Corp Outer Ring Road 110, Completed Adarsh Developers Outer Ring Road 4,000, Launched Prestige Group Outer Ring Road 1,200, Completed 20 Fortune Soft Tech Upkar Associates Whitefield 150, Completed 39

41 Hyderabad Case Study Hyderabad: General Facts 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. Key Strengths for IT-ITES development: Skilled workforce, good quality of life and physical infrastructure, enabling regulatory environment, proactive IT-friendly State Government. Geographic Location Climate Temperatures Area Population (2001) Population Growth Rate City Functions Factors governing real estate 17.37º N: E Tropical Annual: 25-40º C 1862 sq. km. (HUDA) 5.75 million (HUDA) 2.8% ( , CAGR) State Capital, Industrial, Commercial Investment in real estate market FDI and Local IT-ITES / Biotech, enabling state govt. policies IT- ITES Facts * Estimated Total Employees in IT-ITES Sector ** Graduates Passing Out per year suitable for IT-ITES Sector Source: Ma FOI study, 2006; Census of India, 2001 IT- ITES sector presence IT and ITES growth (annual) IT - 40%-60% ITES - 50% No. of IT-ITES firms (Total) IT ITES - 84 No. of IT-ITES firms (Nasscom Registered) IT ITES - 44 IT-ITES activity ITES - Voice, non-voice, and KPO IT - Engineering Design, ERP, CRM, C++, Java,.Net, Web Designing IT-ITES majors present HP, Amazon, Verizon, Convergys, EXL, Infosys, TCS, KPIT, Zensar, Wipro, Sitel Players planning expansion or new facility Infosys, Countrywide, SEM India, NTSI, Patni Computer Systems Human Resources Talent Pool* 134,894 Resource Pool** 37,288 No. of Higher Education Institutes 79 Attrition 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 forms Infrastructure & Real Estate Availability Infrastructure Status Good Airport connectivity International Presence of STPI Yes Availability of IT-ITES Grade Real Estate Yes Compensation (Million INR per annum) Entry / Junior level IT ITES Middle level IT ITES Senior level IT ITES

42 IT - ITES Locations MEDAK ROAD NIZAMABAD ROAD ALWAL ALWAL CHERUVU RASHTRAPATHI NILAYAM CAVALRY BARRACKS TRIMULGHERRY AMMUGUDA PUNE ROAD SANATNAGAR MENTAL HOSPITAL BEGAMPET SARDAR PATEL RD KUMMAGUTTA UTTA BEN CHERUVU BOWANPALLI BAZAR SECUNDERABAD AIRPORT SECUNDERABAD CLUB ARTS & SCIENCE COLLEGE Prime Residential Areas Marepally & Contonment Marredpalli alli Rd Rd Rd Rd RAMAKRISHNAPURAM NEHRU NAGAR SAIFLGUDA NADMI CHERUVU MALKAJGIRI BOMBAY ROAD OAD TOMBS OF QUTAB SHAHI KINGS STATE INSTITUTE YELLAREDDI CHERUVU SIKKALAM CHERUVU GOLCONDA FORT LANGAR HOUSE KHAZANA MUSEUM Prime Residential Areas Banjara Hills, Jubliee Hlls, Sri Nagar Colony Madhapur LAL MASJID MUSI RIVER LANGATHOUSE CHERUVU AGRICULTURAL UNIVERSITY SANJIVAREDDI NAGAR AR AMIRPET RD GOVT GUEST HOUSE KHAIRATABAD RAVINDRA BHARAT I.G. OF POLICE LEGISLATIVE ASSEMBLY JAWAHAR BAL BHAVAN STATE MUSEUM RAJ BHAVAN BRITISH LIBRARY BOAT CLUB HYDERABAD ABIDS Asif Nagar GANDHI BHAVAN Hyderabad GOSHAMAHAL STADIUM CBD NEHRU ZOOLOGICAL PARK New CBD Husainsagar Jn OSMANIA GENERAL HOSPITAL KARVAN COMMISSIONER OF POLICE CHARMINAR MECCA MASJID CHAUMAHALLA PALACE CITY CENTRAL LIBRARY Salar Jung Museum JAMA MASJID YAKUTPURA SARDAR PATEL RD. Secunderabad CBD APTDC ITDC PUBLIC SECUNDERABAD LIBRARY Mushirabad INDIRA PARK Malakpet EDI BAZAR JAMAL OSMANIA ROAD TRANSPORT CORPORATION VIDYANAGAR KACHIGUDA RACE COURSE ASMANGADH FORT VENKALESHWARA TEMPLE SAIDABAD METTUGUDA Prime IRSET Residential Areas Hubsiguda, Tarnala UNIVERSITY RD AMBARPET STATE ARCHIVES OSMANIA UNIVERSITY CENTRAL TRAINING INSTITUTE ANDHRA MAHILA SABHA WARANGAL RD. MUSI RIVER LALLAGUDA LALAPET DILSUKHNAGAR VIJAYAWADA RD NAGARJUNA SAGAR RD N NATIONAL POLICE ACADEMY SIVARAMPALLE IDGAH JAHANNUMA FALAKNUMA PALACE FALAKNUMA HUPPUGUDA Railway Line CYBERABAD TELLAPUR HUDA RES. COMPLEX GOPANPALLI VATTINAGULAPALLE TO BANGALORE NALAGANDLA Seri Lingampalli Muncipality Proposed International Airport KONDAPUR Kondapur Kondapur Hafeezpet Hafeezpet KANCHA GACHIBOWLI Manikonda Manikonda Gachibowli CYBERABAD AD DEVELOPMENT Gachibowli AUTHORITY T MANIKONDA JAGIR UDAFA KOTHAGADA GACHIBOWLI Hi- Tec Hi-Tec City City RAYADURGA PANMAKTHA NANAKRAMGUDA RAIDURGA KHAJAGUDA GAFOORNAGAR Roads Airport MUNDALA KATWA KAITHALA PUR GUTTALA BEGUMPET MADHAPUR PAIGAH KHANAPUR MANIKONDA QUTAB SHAHI TOMBS SHAIKPET 41

43 IT- ITES Real Estate Scenario Office space: Absorption, Vacancy and Rents Net Absorption (thousand sq. ft.) Four Quarter Average 12% 10% 8% 6% 4% 2% Total Vacancy Average Asking Rents (INR/sq. ft./month) % 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 0 Office Space Summary Submarket CBD -1 Himayathnagar, Abids, Basheerabagh CBD-2 SD Road, SP Road, Secunderabad CBD-3 Begumpet, Rajbhavan Road, Banjara Hills, Jubilee Hills Cyberabad Madhapur, Gachibowli, Kondapur Total Inventory (sq. ft.) Under Construction (sq. ft.) Source: Trammell Crow Meghraj database (IT-ITES constitutes approx. 80% of the office space market) New Deliveries (sq. ft.) Total Vacancy (%) Net Absorption 2nd Q 2006 (sq. ft.) Net Absorption 2006 (sq. ft.) Average Asking Rent (INR per sq.ft per month) 495, , ,000 25, ,000 45,000 90, ,000 53, ,481, ,000 1,167, , , ,229,900 4,595,000 5,314, , , Total / Average 14,431,400 4,927,000 6,800, ,000 1,124, 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. 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 per sq. ft. for prime properties and in the range of approximately INR per sq. ft. for non-prime properties. 42

44 Hyderabad s strengths as an IT-ITES destination Software exports from Hyderabd recorded 51% growth in 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. Cyber Gateway Cyber Pearl Vanenburg IT park TCS Ultra IT / ITES Commercial Space in Hyderabad Total Operational Under Construction Total Proposed Built-Up Area 11.1 million sq. ft million sq. ft 10.9 million sq. ft. 43

45 Infrastructure Overview 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-ofthe-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 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 44

46 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. 45

47 Appendix: Hyderabad 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. 46

48 Upcoming Developments 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, 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. 47

49 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 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. List of Upcoming IT Parks by Private Developers in Hyderabad 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 Source: Trammell Crow Meghraj field surveys,

50 Chennai Case Study Chennai: General Facts 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. Key Strengths for IT-ITES development: Largest supply of IT-ITES real estate, high availability of human resource with strong functional expertise Geographic Location Climate Temperatures Area Population (2001) Population Growth Rate City Functions Factors governing real estate N: E Tropical maritime May - June: 38º C - 42º C Dec - Jan: 22º C - 28º C 1,180 sq. km million 1.8% ( , CAGR) Services, IT & ITES, Industry, Administrative Large availability of land on the city outskirts and pro-developmental Government policies Investment in real estate market FDI and RE Funds IT- ITES Facts * Estimated Total Employees in IT-ITES Sector ** Graduates Passing Out per year suitable for IT-ITES Sector Source: Ma FOI study, 2006; Census of India, 2001 IT- ITES sector presence IT and ITES growth (annual) IT - 50% - 60% ITES - 50% No. of IT-ITES firms (Total) IT ITES No. of IT-ITES firms (Nasscom Registered) IT ITES - 36 IT- ITES activity IT- ITES majors present Players planning expansion or new facility Human Resources Development centres; high-end BPOs in financial services, healthcare and other back-office ITC, Infosys, Wipro, Accenture, Cognizant Amazon, Dell, Sitel Talent Pool* 181,528 Rosource Pool** 34,205 No. of Higher Education Institutes 162 Attrition 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 - 60:40 Infrastructure & Real Estate Availability Infrastructure Status Airport connectivity Presence of STPI Availability of IT-ITES Grade Real Estate Compensation (Million INR per annum) Above Average International Entry / Junior level IT ITES Middle level IT ITES Senior level IT ITES Yes Yes 49

51 IT - ITES Locations N ENNORE PORT SEZ TIRUVALLUR POZHAL LAKE (RED HILLS LAKE) KORATTUR TANK AMBATTUR CCL CONS. R.R. SKYLINE Chennai Biz Park (SEZ) AMERICORP TOWERS HCL PRINCE TECH PARK TCS PEROT SYSTEMS SEA PORT ARIHANT INSIGHT HCL TIRUVALLUR GEE GEE COMPLEX KRM COMPLEX MAM IT PARK FUGUN IT PARK NH - 4 TO BANGALORE NOKIA SEZ KANCHIPURAM GUINDY PRESTIGE IT PARK DLF TECH PARK OLYMPIA TECH PARK I, II, III JAYANTH TECH PARK R.R.TOWERS AMTI TECH PARK ASHOK LEYLAND LANCER GESCO OCEANIC TECH PARK BELLICIA TOWERS TIMES SQUARE CHEMBARAMBAKKAM LAKE ROBIN IT PARK AIRPORT CHENNAI TIDEL PARK ELNET ASCENDAS SURENDRA DEVELOPERS MPL FORD I MPL FORD II MAAN SAROVARPROP RAMANIYUM IT PARK CEE DEE YES RAYALA TECHPARK RMZ MILLENIA KG 360 DEG ARIHANT TECHNOPOLIS TECH SCAPE TOWER TRUE VALUE HOMES DEVP GMR RAJ KUMAR CONST SREE RAM BUILDERS MEPZ SEZ CEE DEE YES ETL-CHENNAI ONE PRINCE FOUNDATION RATHA S IT PARK SUN TECH PARK TO TRICHY NH - 45 MAHINDRA WORLD CITY SEZ PERUNGALATUR Railway Line Roads Airport CTS MARG DIGITAL ZONE ECCI INFO PARK FUTURA IT PARK ACCENTURE OLIA TECH PARK MARG SQUARE I&II RAM TECH ARVIND IT PARK SATYAM WIPRO SHOLINGANALLUR E GATE -APPASWAMY SRINIVASA SHIPPING LTD RATHA S IT PARK INFOSYS SRINIVASA SHIPPING LTD SEMMANCHERRY CITI LIGHTS IT PARK SRINIVASA SHIPPING INFOPARK NAVALUR TCS MENKUR INFO STREET WAVE CTS POLARIS ALLIED MAJESTIC XANSA SUCONS IT PARK SIRUSERI IT CORRIDOR (OMR) Existing - IT Park Under Construction - IT Park SUSHEN CONST. KELLAMBAKKAM PENTAMEDIA FULLER INDIA X S REAL TO MAHABALIPURAM 50

52 IT- ITES Real Estate Scenario Office space: Absorption, Vacancy and Rents 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Net Absorption (thousand sq. ft.) Four Quarter Average 3Q 04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 7% 6% 5% 4% 3% 2% 1% 0% Total Vacancy Average Asking Rents (INR/sq. ft./month) 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q Office Space Summary Submarket Total Inventory (sq. ft.) Under Construction (sq. ft.) New Deliveries (sq. ft.) Total Vacancy (%) Net Absorption 2nd Q 2006 (sq. ft.) Net Absorption 2006 (sq. ft.) Average Asking Rent (INR per sq.ft. per month) OMR 20,786,000 17,335,000 2,400,000-2,400,000 2,400, Guindy 4,678,000 2,167,000 1,000,000-1,000,000 1,740, Ambattur 7,170,000 6,730, Egmore 834, , Porur 4,240,000 4,240, City centre (CBD areas) 5,442, ,000 80, , , Other Areas 2,618,000 2,171, , , , Total 45,768,000 34,002,000 4,080,000-4,066,400 6,270, Source: Trammell Crow Meghraj database (IT- ITES constitutes appx 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. 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 readybuilt, 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 per sq. ft. per month and INR per sq. ft. respectively. 51

53 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. TIDEL IT Park Accenture Prince IT Park Cognizant IT Parks in Chennai Govt sponsored Privately developed SIPCOT Information Technology Park, Siruseri TIDEL Park ETL Chennai One Tech Park IT Park at Mahindra City Operation total Under Construction total Proposed Total Area 1,000 Acres 1.2 million sq. ft 1.2 million sq. ft. 1,400 Acres 5.4 million sq. ft million sq. ft million sq. ft. Source: Trammell Crow Meghraj field surveys,

54 Infrastructure Overview 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. 53

55 Appendix: Chennai Upcoming Developments 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. 54

56 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 , 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. 55

57 List of major IT Parks Name and Developer Location Total Built-Up in million sq. ft. Source: Trammell Crow Meghraj field surveys, 2006 Indicative Lease rentals (INR per sq. ft.) Absorption Elnet Software Park, ELCOT Taramani % Aviation Software, California Software, SIP Technologies, road etc. TIDEL Park, ELCOT Taramani % Satyam, TCS, Wipro, Covansys Arihant e-park, Arihant Foundation Cee Dee Yes Lattice Bridge Road, Adyar IT Highway, Navalur % GM, Syntel, Laser Word % CTS RR Towers III, RR Builders Guindy % US Software, I-sewa, Alcatel Prince Tech Park Dowlath Towers/Ramaniyam Builders IT Highway, Kandan Chavadi Leased to KLA Tencor, Maersk Kilpauk % Bahwan Cybertek, Lason The Lords, Ramaniyam Builders Guindy % Virtusa (P I) Cullabnet, Brookes Automation (P II) Ascendas IT Park Taramani % (Phase I) I-nautix, Profit Logic Software, Paris Bijoux, Emerson Krishna Constructions Anna Salai / Saidapet % 24/7, Philips, Oracle, Citibank, HDFC, Foster Wheelers Standard Towers, CeeDeeYes Velachery 0.12 NA 100% Sutherland Marg Constructions Karapakkam, OMR %, TCS KRM Center Chetpet 0.15 NA 100% Sri Kausalya Constructions Sholinganallur %, Satyam Arihant Technopolis, Arihant Sai Real Tech Park, Real Value Promoters Bascon IT Park, Baskhara Constructions Pvt. Ltd. Olympia Tech Park, Khivraj Estates Pvt. Ltd. Kandanchavadi, OMR % leased to HCL Velachery %, TCS T. Nagar ,000 sq. ft. Airtel Guindy Verizon, Hewitt, HP, ABN Amro (P I), GRO (P II) RR Towers IV, RR Builders Guindy Flextronics, Alcatel RMZ Millenia MGR Road Aviva, EDS, Ford Marg Square, Marg Construction ASV Constructions Karapakkam Satyam Mettukuppam, OMR US Technologies Real Value Promoters Anna Salai Kanbay Bellicia, TVH Santhome Scandent, Hutch, etc GMR Perungudi, OMR CTS Prince Varalakshmi Tech Park, Prince Foundations Rayala Group of Companies Ambattur Intellinet (75,000 sq. ft.) Old Mahabalipuram Road Marketing stage RMZ Millenia RMZ (Phase I) Perungudi % by Aviva, EDS, Ford 56

58 List of under construction private IT Parks in the City Name and Developer Location Total Built-Up in million sq. ft. Chennai One ETL Infrastructure Ltd. Futura, Appasamy Foundations Indicative Lease rentals (INR per sq. ft.) Absorption/ Status Expected Completion Thoraipakkam sq. ft. leased to Sutherland Global April 2006; sq. ft. to Flextronics Nov 2006 Sholinganallur Marketing stage Nov 2006 Int IT Park, Citilights Navalur. OMR 1.18 NA Marketing stage Nov 2006 MPL Ford Phase I Velachery Marketing stage Nov 2006 Tambaram Main Road Pacifica Tech Park, Pacifica R.K.Salai Under Construction Nov 2006 Companies Alpha City, Srinivasa Navalur, OMR Marketing stage Dec 2006 Shipping & Property Development Ltd Maan Sarovar Heights IT Highway, Marketing stage Dec 2006 Kottivakkam Arihant Insight, Arihant Ambattur Marketing stage Dec 2006 RMZ Millenia II, RMZ Perungudi Marketing stage Dec 2006 (P II) Mar 2007 (P III) E Gate, Appasamy Sholinganallur Marketing stage Dec 2006 Foundations K.G. 360 Degrees Perungudi, OMR Marketing stage Dec 2006 Gee Gee Developers Chetpet Under Construction Dec 2006 Ashok Leyland Saidapet Under Construction Dec 2006 Prince Software Park, Prince Thorapakkam, OMR Under Construction Dec 2006 Foundations Sushen Constructions Old Planning stage Dec 2006 Mahabalipuram Road Jayanth Tech Park Pvt. Ltd. Nandambakkam Planning stage Jan 2007 Rantec IT Park OMR 0.12 NA Planning stage Jan 2007 AMTI Tech Park, Ashoka Guindy Under Construction Mar 2007 Matches & Timber Industries Menakur Info Services Pvt. Navalur, OMR Under Construction Mar 2007 Ltd (Streetwave), ETA Oceanic Tech Park, Santhome 0.30 NA Planning stage Mar 2007 Vishranthi Homes Chennai Tech Park, India Ambattur Under Construction May 2007 Infotec Developers Ltd. DLF Limited Porur Under Construction Phase I- May 2007 Surendra IT Park LB Road Under Construction Jun 2007 ECCI Sholinganallue, Under Construction Jun 2007 OMR MAM Ramaswamy Egmore Under Construction Jun 2007 Lancor Constructions St. Mary s Road, Planning stage Sep 2007 Alwarpet Fagun Chamber II Egmore Planning stage Sep 2007 R.R. Builders Ambattur Planning stage Jan 2008 Source: Trammell Crow Meghraj field surveys,

59 Pune Case Study Pune: General Facts 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. 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 Geographic Location Climate Temperatures Area Population (2001) Population Growth Rate City Functions Factors governing real estate 18.31º N: 73.51º E Tropical maritime May - June: 35º C - 38º C Dec - Jan: 18º C - 25º C 440 sq. km. (Pune City) 3.75 million 5.1% ( , CAGR) Investment in real estate market FDI and Local Services, IT & ITES, Industrial, Administrative (Distt. HQ) IT- ITES, enabling state govt. policies and near saturation in Mumbai IT- ITES Facts * Estimated Total Employees in IT-ITES Sector ** Graduates Passing Out per year suitable for IT-ITES Sector Source: Ma FOI study, 2006; Census of India, 2001 IT- ITES sector presence IT and ITES growth (Annual) IT - 60% - 80% ITES - 35% - 40% No. of IT-ITES firms (Total) IT ITES - 75 No. of IT-ITES firms (Nasscom Registered) IT - 58 ITES - 10 IT- ITES activity IT-ITES majors present Players planning expansion or new facility Human Resources ITES- Voice-based and non-voice based processes in BFSI IT- Telecom Networks, Engineering Design, ERP, CRM, C++, Java,.Net IBM, Cognizant, Convergys, EXL, Infosys, TCS, KPIT, Zensar, Wipro, Msource Oracle, Microsoft, Avaya, TCS Talent Pool* 129,065 Rosource Pool** 27,095 No. of Higher Education Institutes 129 Attrition 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 - 60:40 Infrastructure & Real Estate Availability Infrastructure Status Airport connectivity Presence of STPI Availability of IT-ITES Grade Real Estate Compensation (Million INR per annum) Above Average Domestic Entry / Junior level IT ITES Middle level IT ITES Senior level IT ITES Yes Yes 58

60 IT - ITES Locations TO MUMBAI CHINCHWAD MUMBA EXPRESS WAY WAKAD TO MUMBAI TO MUMBAI 1 HINJEWADI PIMPALE NILAKH PROPOSED AIRPORT DANORI BALEWADI SANGAVI C.M.E. KALAS LOHAGAON TO BONGUT MUMBAI BANGALORE BYPASS SHIVNE BANER NDA ROAD NDA ROAD WARJE PASHAN N.C.L. CHANDANI CHOWK 2 AUNDH B.M.C.C. VETAL HILL M.A.C.S. BHANDARKAR AUTOMOTIVE R INSTITUTE DECCAN INSTITUTE M.I.T. S.N.D.T. COLLEGE COLLEGE ERANDVANE GANDHI BHAVAN 3 RAJ BHAWAN IUCA PUNE UNIVERSITY C DAC SENAPATI BAPAT ROAD SHIVAJI SOCIETY V.M. CO.OP INSTITUTE TANAJIVADI AGRI COLLEGE SHAHU COLLAGE KHADKI WEST SHIVAJI NAGAR CITY POST GULTEKDI MARKET YARD YERWADA YERAWADA JAIL PHULE NAGAR BUND GARDEN ROAD PUNE RAILWAY STATION AIR INDIA MG RD SALISURY PARK KONDHAVE KH. AIRPORT ROAD KOREGAON PARK SOLAPUR ROAD WANEWADI S.R.P.F. VIMAN NAGAR 7 KALYANI NAGAR A.S.P.T. W.N.C. WADGAONSHERI MUNDHAVA 8 HADAPSAR AIRPORT TO AHMAD NAGAR 9 KHARADI TO SOLAPUR SOLAPUR ROAD 10 FURSUNGI KONDVE DHANKAWADI NANDED KATRAJ NDA KOPRE NARHE KIRKATWADI DHYRI KHADAKWASLA N Railway Station Railway Line Road Airport IT-ITES Hubs 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 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 8. Philips IBM AMDOCS EDS EXL Services 9. Zensar Technologies 10. Honeywell IBM 59

61 IT- ITES Real Estate Scenario Office space: Absorption, Vacancy and Rents 3,000 Net Absorption (thousand sq. ft.) Four Quarter Average 45% 40% Total Vacancy Average Asking Rents (INR/sq. ft./month) ,500 35% 35 2,000 1,500 30% 25% 20% , Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 15% 10% 5% 0% 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q Office Space Summary Submarket Total Inventory (sq. ft.) Under Construction (sq. ft.) Source: Trammell Crow Meghraj database (IT- ITES constitutes appx 80% of the office space market) New Deliveries (sq. ft.) Total Vacancy (%) Net Absorption 2nd Q 2006 (sq. ft.) Net Absorption 2006 (sq. ft.) Average Asking Rent (INR per sq.ft per month) North 80, South 1,203,000 70,000 60, ,000 80, Central 4,458,000 1,750, , , , South-East 3,062,000 1,800,000 60, Cantonment 2,865, , , , , North-East (Eastern Corridor) North-West (Western Corridor) 10,088,000 6,120,000 2,093, ,030,000 3,100, ,274,000 5,470, , , , Total 31,030,400 15,456,000 2,809, ,400,000 3,485, 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. Supply Around 16 million sq. ft. of IT-ITES space is either under construction or proposed and likely to come up in the next three years. Demand IT-ITES contributes about 85% of the total demand of office space in the city. Currently, demand has far exceeded supply for readybuilt, plug-and-play quality office space in the city. High-end demand is driven by the IT-ITES companies. Vacancy The 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 Rates Average 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. 60

62 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. Cyber City, Magarpatta Cyber City, Magarpatta ICC-Tech Park Hingewadi IT Park Giga Space IT Parks in Pune 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 Developed Cybercity 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 Source: Trammell Crow Meghraj field surveys,

63 Infrastructure Overview 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. Telecommunications / IT Infrastructure 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. 62

64 Appendix: Pune Upcoming Developments 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. 63

65 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 Out of this figure about INR 60,000 million is proposed for investment by 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 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 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. 64

66 List of Existing / Upcoming IT Parks in Pune MIDC (Govt. of Maharashtra Undertaking) Sponsored IT Parks (Existing / Upcoming) Name of the Complex Location 15 km from Pune off Mumbai- Bangalore Bypass (NH-4), 20 km from Pune Airport Area of the Park Area now available for allotment Information Technology Park Hinjewadi, District Pune 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) 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 Location Area of the Park Area now available for allotment Rentals Present status of the Complex Software Park Talawade, Taluka Haveli, District Pune 25 km from Pune off Mumbai- Bangalore Bypass (NH-4), 20 km from Pune Airport 190 acres No Availability INR 16 per sq. ft. per month- INR 18 per sq. ft. per month (Bare shell) Partially occupied Name of the Complex Location Area of the Park Saleable area Area now available for allotment Rentals Present status Source: Knowledge Park Kharadi, District Pune 22 km from Pune off Mumbai- Bangalore Bypass (NH-4), 7 km from Pune Airport 30 ha (75 acres) of land, 185,000 sq. ft.of built up space available 185,000 sq. ft. (floor plate of 26,500 sq. ft. - 34,000 sq. ft.) NA INR 20 per sq. ft. per month 25 per sq. ft. per month (Bare Shell) Partly occupied 65

67 List of Upcoming IT Parks by Private Developers in Pune S. No. Project / Building Location Source: Trammell Crow Meghraj (TCM) field surveys, 2006 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, Under construction 2 Manikchand Ikon Dhole Patil Road 300,000 17, Ready for possession 3 Manikchand Galleria 4 IT Park by Kumar Properties 5 Mind Space by K. Raheja Corporation 6 Cerebrum by Kumar Builders 7 Magarpatta Cybercity Tower 10 Model Colony 150,000 NA 55 Ready for possession Hadapsar- Nagar Link Road 150,000 (BTS) 28, Under construction, Possession in early 2008 Airport Road 4,000, Project at early stages of conceptualization Kalyani Nagar 1,000,000 55, Ready for possession. A total of 3 buildings of 8 floors each will be constructed in a phased manner. 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, Ready for possession 8 IT Weikfeild Nagar Road 1,700,000 64, Ready for possession 9 Almonte Kharadi 1,500,000 20, Under Construction 10 Parmar Trade Centre Sadhu Waswani Chowk 300,000 17, Ready for possession 11 Pride Purple Wakad 100, Project at early stages of conceptualization 12 Sai Hira Mundwa 115,000 22, Ready for possession 13 Sai Trinity Pashan 170,000 42, Ready for possession 14 Sai Radhe Behind Hotel Le-Meridian 500,000 52, Ready for possession 15 ICC Trade Tower Senapati Bapat Marg 475,000 55, Ready for possession 16 Panchshil Tech Park Airport Road 1,000,000 32, Ready for possession 17 Panchshil Tech Park Hinjewadi Project at early stages of conceptualization 18 Muttha IT Park Yerwada 300,000 26, Ready for possession 19 Nano Space Baner 120,000 26, Under construction. Possession in March Marigold Kalyaninagar 100,000 25, Ready for possession 21 Amar Genesis Baner 200,000 12, 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, Ready for possession 24 Espace Nagar Road 247,000 24, Ready for possession 25 Panchshil Tech Park Kharadi 4,000,000 30,000-60, Under Construction 66

68 Kolkata Case Study Kolkata: General Facts 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. 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. Geographic Location Climate Temperatures Area Population (2001) Population Growth Rate City Functions Factors governing real estate 22.33º N: 88.20º E Tropical May - June: 35º C - 40º C Dec - Jan: 12º C - 20º C 185 sq. km. (Municipal Corp.) 4.57 million (Municipal Corp.) 3.9% ( , CAGR) Investment in real estate market FDI and Local Administrative (State Capital), Industrial, Commercial, IT-ITES IT- ITES Sector, Limited Supply of Grade A facilities, and Strong Revival of the City s Economy IT- ITES Facts * Estimated Total Employees in IT-ITES Sector ** Graduates Passing Out per year suitable for IT-ITES Sector Source: Ma FOI study, 2006; Census of India, 2001 IT- ITES sector presence IT and ITES growth (Annual) IT - 40% - 50% ITES - 60% - 70% No. of IT-ITES firms (Total) IT ITES - 58 No. of IT-ITES firms (Nasscom Registered) IT - 18 ITES - 8 IT-ITES activity IT- ITES majors present Players planning expansion or new facility Human Resources ITES: Voice-based and non-voice based processes IT: Web Designing, ERP, CRM, C++, Java,.Net IBM, Cognizant, TCS, GE, Wipro, Msource Satyam, Infosys, Wipro, TCS, Cognizant, IBM, Genpact Talent Pool* 42,743 Rosource Pool** 22,038 No. of Higher Education Institutes 155 Attrition 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 - 70:30 Infrastructure & Real Estate Availability Infrastructure Status Airport connectivity Presence of STPI Availability of IT- ITES Grade Real Estate Compensation (Million INR per annum) Above Average International Entry / Junior level IT ITES Middle level IT ITES Senior level IT ITES Yes Yes 67

69 IT - ITES Locations AIRPORT KOLKATA HOWRAH KOLKATA WEST INTERNATIONAL CITY ESPLANED - DALHOUSIE NEW TOWN IT SECTOR NEW TOWN SALT LAKE, SECROR V PARK STREET SOUTH CBD KOLKATA Railway Line Road Airport Non IT Commercial Areas IT Commercial Areas NSC INTERNATIONAL AIRPORT TO AIRPORT SECTOR II SALT LAKE (BIDHAN NAGAR) SECTOR I SECTOR III SECTOR V 1 NICCO PARK SECTOR IV 3 RAJARHAT (NEW TOWN) 132 KVA SUB STATION N TO ULTADANGA E.M.BYPASS SALT LAKE STADIUM HOTEL HYATT 5 LANE EXPRESSHIGHWAY KOLKATA WELCOME GROUP HOTEL SCIENCE CITY 2 68

70 IT- ITES Real Estate Scenario Office Space: Absorption, Vacancy and Rents Net Absorption (thousand sq. ft.) Four Quarter Average Total Vacancy Average Asking Rents (INR/sq. ft./month) Q305 Q404 Q105 Q205 Q305 Q405 Q106 Q206 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q Office Space Summary Submarket CBD Prime Camac Street, Park Street, A.J.C. Bose Road Non CBD Eastern Metropolitan Bypass Secondary Business District -1 Salt Lake Sector V Secondary Business District -2 Rajarhat Total Inventory (sq. ft.) Under Construction (sq. ft.) Source: Trammell Crow Meghraj database (IT- ITES constitutes appx 75% of the office space market) New Deliveries (sq. ft.) Total Vacancy Net Absorption 2nd Q 2006 (sq. ft.) Net Absorption 2006 (sq. ft.) Average Asking Rent (INR per sq.ft. per month) 1,802, , , , ,500 3, ,498,000 5,170, , , , ,689,000 9,257, Total 19,424,000 14,303, ,000 19% 472, , 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. Supply Around 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 Demand IT-ITES contributes about 75% of the total demand of office space in the city. Currently, demand has far exceeded supply for readybuilt, plug-and-play quality office space in the city. High-end demand is driven by the IT-ITES companies. Vacancy With 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 Rates The rental rates in the CBD vary from around INR 38 per sq. ft per month to about INR 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. 69

71 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 Millennium City II Technopolis DLF IT Park IT Parks / IT Commercial Space in Kolkata Built- Up Area Total Operational Under Construction Total Inventory Parameter 5.58 million sq. ft million sq. ft million sq. ft. 70

72 Infrastructure Overview 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. Telecommunications / IT Infrastructure 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. 71

73 Appendix: Kolkata 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 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. IT Parks / Commercial Space in Kolkata New Town, Rajarhat 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 Source: Trammell Crow Meghraj field surveys,

74 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, , Bengal Intelligence Park II 304, Boulevard 250,000 50,000 NA CN 2 200,000 0 NA Convergent Center 36,000 36, DN 27 55,800 37,800 NA DN 9 64,152 64,152 NA Eternity 72,000 72, Globsyn Crystals I 490,000 0 NA Globsyn Crystals II 160,000 0 NA Hub, The 360, Infinity Benchmark 550,000 0 NA Infinity Tower I 125, , Infinity Tower II 170, , Infinity Waterside 530, Kariwala Towers 60,000 60, Logix Park 70,000 30,000 NA Mani Square 60,000 0 NA Millennium City I 95,000 95, Millennium City II 280, , Reshmi Tower I 50,000 50, Reshmi Tower II 160, Syntech 45,000 35,000 NA Techno India 100,000 85,000 NA Technopolis 675, , Vision Comptech 200, ,000 NA Source: Trammell Crow Meghraj field surveys,

75 Chapter Three Summing Up 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 74

76 developed to cater for the Commonwealth Games (scheduled for the year 2010) the attraction for knowledge sector companies will only increase with time. The developer community too is gearing to cater to this by bringing in space to the tune of 20 million sq. ft. by year 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. 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. 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. 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. 75

77 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. 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 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. 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. Hyderabad Robust infrastructure development and government initiatives have attracted many IT-ITES companies to Hyderabad. 76

78 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. 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. 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. 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. 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 77

79 highest number of developments, Rajarhat is tipped to be the next hotspot destination for IT space. 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. 3.1 Comparison of Cities We have categorized all cities showing signs of predominance or emerging IT-ITES activity into three segments: Tier I (Established Locations) 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. Tier II (Emerging Locations medium-term potential) 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. Tier III (Having future long-term potential) 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 78

80 IT / ITES SPECIFIC HUMAN RESOURCES METRICS IT SECTOR PRESENCE INFRASTRUCTURE METRICS City City Description Population (in million, 2001) 1 Population Growth ( CAGR) 1 Graduates Passing Out / Year suitable for IT/ITeS Sector 2 Estimated Total Employees in IT / ITES Sector 2 No. of Higher Education Institutes 2 No. of IT firms (Nasscom Registered) 3 No. of ITes firms (Nasscom Registered) 3 Presence of Atleast One Indian IT/ITES Major 4 Infrastructure Airport Status 2 Classification Availability Presence of of IT/ITeS STPi 5 Grade Real Estate 6 TIER I TIER II TIER III Mumbai Delhi NCR Bangalore Chennai Hyderabad Pune Kolkata Chandigarh Kochi Bhubaneshwar Trivandrum Coimbatore Indore Ahmedabad Jaipur Vizag The financial and commercial capital of India, capital of the state of Maharashtra and a major port Political capital of India and an established ITES Hub Silicon Valley of India and capital of the state of Karnataka Political capital of state of Tamil Nadu and established IT - ITES Hub, major port Silicon Valley of India and political capital of state of Andhra Pradesh Emerging IT destination and second largest city of Maharashtra state and an academic and cultural hub Emerging IT destination and political capital of state of West Bengal Emerging IT destination and capital of two states of Haryana & Punjab Emerging IT destination and the largest city in the state of Kerela, major port Emerging IT destination and capital of the state of Orissa Political capital of the state of Kerela and aspiring IT destination, academic hub Second largest city in Tamil Nadu State and an industrial hub The largest city in state of Madhya Pradesh and industrial hub Largest city of state of Gujarat, a major academic hub and an emerging IT destination Political capital of state of Rajasthan, Tourism hub and aspiring ITES destination Second largest city in Andhra Pradesh state, a major port and an industrial hub , , Yes Average International Present Yes , , Yes Good International , , Yes Average International Present Yes , , Yes Above Average International Present Yes , , Yes Good International Present Yes , , Yes Average Domestic Present Yes ,038 42, Yes Average International Present Yes ,415 15, Yes Good Domestic ,513 5, Yes Above Average International Present (Noida) Present (Mohali) Present (Trivandrum) ,275 3, Yes Average Domestic Present Yes ,673 10, Yes Above Average International Present Yes ,887 6, Yes Average Domestic Present Yes ,425 3, No Above Average Domestic Present Yes ,590 15, Yes Above Average International Present Yes ,941 3, Yes Above Average Domestic Present (in Chandigarh) ,178 5, Yes Average Domestic Present No Nashik An industrial hub and wine capital of India ,480 2, No Average Absent Present No Mangalore Lucknow Baroda Nagpur Third largest city of Karnataka state and a major port Political capital of state of Uttar Pradesh and an academic hub Third largest city of Gujarat State and an academic hub Third largest city of Maharashtra state, academic and industrial hub ,414 5, Yes Above Average Domestic Present No ,933 1, Yes Average International Present No ,731 1, No Average Domestic Present No ,527 18, Yes Above Average International Present Yes Yes Yes Yes Yes Sources 1 Census of India 2001, Urban Agglomeration Population 2 MaFoi Talent Pool Mapping Study NASSCOM Members Database (NASSCOM - National Association of Software and Services Companies) 4 Based on presence of atleast one of the following Indian IT - ITES Majors - Wipro, TCS, Satyam, Infosys, HCL (August 2006) 5 STPI - Software TechnologyParks of India website 6 Based on TCM ongoing experience Disclaimer: The Information contained in the matrix above is indicative and compiled from various public and private sources.the Data may change over time and no guarantee is taken for its accuracy whatsoever. 79

81 Annexure Annexure I List of Software Technology Parks of India (STPI) Websites / Centers STPI Key Centres Noida Mumbai Bangalore Chennai Hyderabad Pune Kolkata Website 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 Niketan 6, CGO Complex Lodhi Road New Delhi

82 Annexure II State-wise List of IT-ITES SEZs Granted Formal Approval By The Board Of Approvals, Govt. Of India Under The SEZ Rules, 2006 S. No. State Name of the Developer Location Area (in Hectares) 1 Andhra Pradesh WIPRO Hyderabad Andhra Pradesh K. Raheja IT Park Madhapur, Ranga Reddy District Andhra Pradesh Information Technology and Communications Department, Government of A.P. and APIIC Village Madhurawada, Visakhapatnam 4 Andhra Pradesh Satyam Computer Services Thotlakonda, Visakhapatnam Andhra Pradesh Satyam Computer Services Bahadurpalli, Hyderabad Andhra Pradesh Satyam Computer Services Hyderabad Andhra Pradesh A.P. Techno Projects Madhupur, Hyderabad Andhra Pradesh Computer Associates Nanakramguda Village, Ranga Reddy District 9 Andhra Pradesh Information Technology and Communications Department, Government of A.P. and APIIC 10 Andhra Pradesh Information Technology and Communications Department, Government of A.P. and APIIC 11 Andhra Pradesh Andhra Pradesh Industrial Infrastructure Corporation Village Madhurawada, Visakhapatnam Village Kesarapally Village, Krishna District Nanakramguda Village, Serilingampally Mandal, Ranga Reddy District 12 Andhra Pradesh CMC Gachibowli, Hyderabad Andhra Pradesh Sanghi Industries Rangareddy Distt Andhra Pradesh Divyasree NSL Infrastructure Raidurga Village, Ranga Reddy District 15 Andhra Pradesh Lanco Mantri Tech Park Private Ranga Reddy District Delhi Delhi Metro Corporation Shastri Park, Delhi Haryana Haryana Technology Park Faridabad, Haryana Haryana Luxor Cyber City Village Sikohpur, District Gurgaon Haryana Sunwise Properties Gurgaon Haryana Dr. Fresh Healthcare Gurgaon Haryana Assotech Realty Gurgaon Karnataka Shyamaraju and Company Krishnarajapuram, Bangalore Karnataka Manyata Promoters and DSRK Holdings Private Bangalore Karnataka Hewlett Packard (HP) Bangalore Karnataka WIPRO Bangalore Karnataka WIPRO Bangalore Karnataka Vikas Telecom Bangalore Karnataka Adarsh Prime Projects Village Varthur, Hubli

83 29 Karnataka Karnataka Industrial Areas Development Board Mangalore Karnataka Cessna Garden Developers Bangalore Karnataka Tanglin Developments Bangalore - Mysore Highway Karnataka Infosys Technologies Pajeeru, Kairangala, Kurunadu Village of Bantwal Taluk, Dakshina Kannada District Karnataka Information Technology Park Whitefield Road, Bangalore Karnataka Infosys Technologies Hebbal Industrial Area, Mysore Karnataka San Engineering & Locomotive Co. Whitefield, Bangalore Karnataka HCL Technopark Jigani Industrial Area, Bangalore Karnataka Golden Gate Developers Jala Hobli Kerala Infopark, Kochi Kusumagiri, Village Kakkanad, Ernakulam 39 Kerala Electronics Technology Park Trivandrum Kerala Kerala Industrial Infrastructure Dev. Corpn. (KINFRA) Kizhakuttom, Trivandrum Kerala Technology Parks Adjacent to Technopark Campus, TVPM 42 Kerala Unitech Real Estate Project Village Kunnathunadu,Taluk Morkala Desam, Ernakulam 43 Madhya Pradesh Madhya Pradesh State Industrial Dev. Corpn Indore Madhya Pradesh Medicaps IT Park Indore Maharashtra Maharashtra Industrial Development Corporation Rajiv Gandhi Infotech Park, Phase III, Hinjawadi, Pune Maharashtra Syntel International Talawade Software Park, Pune Maharashtra Hiranandani Builders Powai Maharashtra Zeus Infrastructure Village Kopri, Taluka Thane, District Thane 49 Maharashtra EON Kharadi Infrastructure Kharadi, Pune Maharashtra Wipro Pune Maharashtra Infosys Pune Maharashtra Flagship Infrastructure Hinjwadi, Pune Punjab Quarkcity India Mohali Rajasthan Mahindra Gesco Jaipur Rajasthan Vatika Jaipur SEZ Developers Jaipur Tamil Nadu Wipro Chennai Tamil Nadu Tata Consultancy Services Siruseri, Chennai Tamil Nadu ETL Infrastructure Services Pallikarnai, Chennai Tamil Nadu Hexaware Technologies Siruseri, Chennai Tamil Nadu Syntel International Siruseri, Chennai Tamil Nadu DLF Info City Developers Chennai Tamil Nadu Xansa India Chennai

84 63 Tamil Nadu Satyam Computer Services Old Mahabalipuram Road, Chennai 64 Tamil Nadu Electronics Corporation of Tamil Nadu 65 Tamil Nadu Electronics Corporation of Tamil Nadu Sholinganallur village, Tambaram Taluk, Chennai Vilankurichi, Coimbatore North Taluk, Coimbatore District Tamil Nadu ETL Infrastructure Services Chinglepet, Kanchipuram District Tamil Nadu Shriram Properties and Infrastructure Sriperumbudur Tamil Nadu Coimbatore Hi-tech Infrastructure Coimbatore Tamil Nadu Cognizant Technology Solutions India Siruseri, Chennai Tamil Nadu HCL Technologies Kancheepuram District Tamil Nadu Nuziveedu Seeds Sholinganallur, Tambaram Taluk, Kanchipuram District 72 Uttaranchal State Industrial Development Corporation of Uttaranchal Dehradun Uttar Pradesh Wipro Greater Noida Uttar Pradesh Ansal IT City and Parks Greater Noida Uttar Pradesh Seaview Develpers Noida Uttar Pradesh HCL Technologies Noida Uttar Pradesh NIIT Technologies PlotNo.TZ-02, Sector-Tech Zone, ITES Park, Greater Noida 78 West Bengal M.L. Dalmiya and Company Kolkata West Bengal DLF Info City Developers (Kolkata) Kolkata West Bengal Riverbank Holdings (Bata India) Bata Nagar, 24 South Parganas West Bengal Enfield Exports Panagarh Bazar, District Burdwan West Bengal Shapoorji Pallonji and Company Kolkata Total Area in Hectares 2,

85 Annexure III State-wise List of IT-ITES SEZs Granted In-principle Approval by The Board of Approvals, Govt. of India Under The SEZ Rules, 2006 S.No. State Name of the Developer Location Area (in Hectares) 1 Delhi Sweet Home Estate Village Bamnouli, Vasant Vihar, New Delhi Haryana Vipul Infrastructure Fazilpur & Behrampur Villages, Gurgaon Haryana Orion Infrastructure Bandhwari, Distt. Gurgaon Haryana Roseview Infrastructure Developers Gurgaon Haryana Emaar MGF Land Shikohpur, Distt. Gurgaon Haryana Emaar MGF Land Gurgaon Haryana Emaar MGF Land Villages Kherki Daulla and Sihi, Distt. Gurgaon Haryana Emaar MGF Land Lakhnaula, Distt. Gurgaon Haryana Emaar MGF Land Bans Hariya, Gurgaon, Haryana Karnataka Primal Projects Bellandur Village, Hubli Karnataka Shell India Bangalore Karnataka Concord Investments Kasba Hobli, Bangalore Rural Distt Karnataka B.A. Tech Park Thumbe Village, Bantwal Taluka Karnataka HI Skill Investment Consultancy North Bangalore (near the new international airport) 15 Karnataka Adarsh Prime Projects Hobli, Anekal Taluk, Bangalore Distt Kerala Smart City (Kochi) Infrastructure Kusumagiri, Kakkanad, Ernakulam District Kerala Sutherland Global Services Kalamassery, Kochi Madhya Parsvnath Developers Indore Pradesh 19 Madhya Genpact Bhopal Pradesh 20 Maharashtra K. Raheja Universal Navi Mumbai Maharashtra K. Raheja Universal Navi Mumbai Maharashtra Xansa Talwade Software Park Maharashtra Lodha Developers Dombivili Orissa DLF Bhubaneshwar Orissa Genpact Bhubaneshwar Punjab Shipra Estate Developers Dera Bassi,Tehsil Patiala Rajasthan Genpact Jaipur Tamil Nadu Alliance Business Parks Thoraipakkam, Chennai Tamil Nadu Velankanni Information System Sriperumbudur Uttaranchal Parsvnath Developers Sahastradhara Road, Dehradun Uttar Pradesh Aligarh Industrial Park Main G.T. Road, near Aligarh Uttar Pradesh Pavitra Dham Constructions Greater Noida Uttar Pradesh Xansa India Greater Noida West Bengal Asian Gateway Siliguri West Bengal Enfield Infrastructure Nr. Rajgarh, Distt. 24, Parganas (N) West Bengal Enfield Infrastructure Kharagpur Total Area in Hectares 2,

86 Key Contacts of TCM Mumbai Office Anuj Puri Managing Director Pawan Swamy International Business Group Khanna Construction House, III Floor, 44 Dr. R. G. Thadani Marg, Worli, Mumbai Tel: (022) / 0871 / 0978, Fax: (022) / mumbai@tcmindia.net pawan.swamy@tcmindia.net Delhi Office Santhosh Kumar COO Pankaj Renjhen Associate Director Deepak Bhavsar President- Consulting and Land Agency Services , Ashoka Estate, 24 Barakhamba Road, Connaught Place, New Delhi Tel: (011) / 85, / 7766 Fax: (011) / newdelhi@tcmindia.net Tel: (011) / 85, / 7766 Fax: (011) / newdelhi@tcmindia.net deepak.bhavsar@tcminda.net Chennai Office New No. 132 (Old No. 78), Dr. Radhakrishnan Salai, Chennai N. Ananthnarayanan Regional Director Tel : (044) Fax : (044) / chennai@tcmindia.net Bangalore Office Mahesh Laxman Regional Director S. Srinivasan Head- Consulting (India) Pride Elite, Office No. 201, II Floor, No. 10, Museum Road, Bangalore Tel: (080) / 71 / 72 / 73 Fax: (080) / bangalore@tcmindia.net s.srinivasan@tcminda.net Kolkata Office Berger House, III Floor, Premises No. 129, Park Street, Kolkata Abhijit Das Regional Director Tel: (033) / 94 / 96 Fax: (033) / kolkata@tcmindia.net Hyderabad Office George Johnson Regional Director Office No. 103, I Floor, / A-1, Imperial Plaza, Somajiguda, Hyderabad Tel: (040) / Fax: (040) / hyderabad@tcmindia.net Pune Office 506, V Floor, Nucleus, CTS No. 1, Church Road, Pune Mohammed Aslam Regional Director Tel: (020) / 61 / 62 Fax: (020) / pune@tcmindia.net Chandigarh Office 304, III Floor, Sector 17C, Chandigarh Manoj Kashyap Regional Director Tel: (0172) / 51 / 52 Fax: (0172) / chandigarh@tcmindia.net 85

87 Key Contacts For further information on our commercial and corporate real estate services, please contact: Anuj Puri Managing Director Trammell Crow Meghraj, Mumbai Tel: (022) Santhosh Kumar Chief Operating Officer Trammell Crow Meghraj, New Delhi Tel: (011) Pawan Swamy President - Corporate Services Trammell Crow Meghraj, Mumbai Tel: (022) pawan.swamy@tcmindia.net An ISO 9001 : 2000 Certified Company 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 efforts 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. Printed for internal use by Trammell Crow Meghraj Copyright Trammell Crow Meghraj Property Consultants Private Limited, 2006 Designed & Produced by: Fifth Quadrant Design Pvt. Ltd. New Delhi