IT firms make a beeline for industrial estates

But not everyone is happy with the trend

— Photo: R. Shivaji Rao

In contrast: The infrastructural shortfalls in industrial estates notwithstanding, they are becoming the preferred destinations for IT companies. A view of an IT complex in Guindy Industrial Estate.

CHENNAI: It’s an address that has been home to small manufacturing units for decades. Over the last five years, it has been making an appearance on the business cards of software professionals — Guindy and Ambattur industrial estates.

The glass and chrome structures of the Information Technology and IT-Enabled Services industry have started to occupy pockets of Chennai’s largest industrial estates. So far, most of the attention was focussed on Guindy, with its prime position near the airport and the IT highway. At least 25 acres are occupied by the IT industry there.

Ambattur has also started attracting IT clients in the last three years, thanks to its proximity to Anna Nagar and other residential areas. About 8 million square feet of IT office space is being created on the Estate. Clients include the who’s who of the software world — HCL, Alcatel, Verizon, HP, Hewitt and MindTree Consulting.

Goldmine

Industrial unit holders in the estates realise they are sitting on a goldmine. R. Ravi, an IT real estate promoter who has built four IT office buildings in Guindy and is constructing another in Ambattur, says he paid Rs.5 lakh per ground in 1993 and Rs.40 lakh per ground in 2004. “Today, they want at least Rs.1 to 1.5 crore per ground. There is no meaning for money here anymore,” he rues.

Apart from the large projects implemented by real estate developers, some unitholders are clubbing their land for joint development themselves. They can charge up to Rs.80 per square feet every month for furnished office space in Guindy. The rate in Ambattur is around Rs.60 per square foot.

With space running out, real estate promoters are eyeing the land held by government-owned institutions such as SIDCO, HTL or the Industries department.

But not everyone is happy about this mushrooming of IT in the estates. It exacerbates the shortage of skilled manpower, says K. Gopalakrishnan, president, Tamil Nadu Small and Tiny Industries Association (TANSTIA).

“For an ordinary tea boy or office peon, they are paying Rs.5,000 to 6,000 per month. Here, even skilled workers are getting only that much in the engineering units. So trained manpower is moving to do menial jobs,” he complained.

SIDCO managing director G. Santhanam says the big buildings and large workforce of the IT firms put heavy pressure on the estate infrastructure. However, large IT firms are willing to shell out money to fund infrastructure improvement on the estates.

 

hindu