BRG Group

Baroda Knowledge City (IT / ITES SEZ)

Dr Rajesh Khajuria, MBA, PhD, CMC, FIMC, MIoD (London)

Building Knowledge Bridge

(NASA Satellite Image - Ram Bridge between India and Sri Lanka)

Baroda Knowledge City?

150 SEZ proposed / applied to Central Govt.
Including 50 IT/ITES SEZ None in Gujarat! 120 SEZ Approved by 17.03.2006* 11 Operational SEZ, converted from FTZ 50 SEZ Coming up all over India, 12 in Gujarat Biotech Park at Savli, Baroda coming up
IT = Information Technology ITES = IT Enabled Services (including BPO / KPO etc) * Source: BOA, Government of India meeting Image courtesy: TATA Broadband
Dr R Khajuria TEAM 2

Yes, Baroda Knowledge City

Baroda is a Knowledge City

Baroda is traditionally a Knowledge City, grown substantially by Legendry Maharaja Sayajirao (MS) Gaekwad of Baroda That is why he set up MS University of Baroda with unique educational programs, unparallel to any Tier II city of India Fusion Indian Enterprise with World Class Knowledge, and we have ..Baroda Knowledge City
Dr R Khajuria TEAM 3

Baroda: An Edutainment City

Baroda has everything that a Knowledge City wants.
Knowledge Capital of Gujarat Cosmopolitan well developed city Educated talented cultured young Graduates Gardens, Health Clubs, Sports: Golf, Cricket, etc Multiplex Cinema Theatres: Ionx, Chandan, Deep Throbbing NRIs and High Speed Internet backbone
Dr R Khajuria TEAM 4

Thats why Baroda Knowledge City.

Baroda: A Knowledge Source

Large pool of 100,000 Graduates p.a. from 11 Universities in 200 miles periphery:
Baroda (MSU), Vallabh Vidyanagar (SPU), Nadiad (DDIT), Surat (SGU, NIT), Ahmedabad (GU, Nirma University, DAIIT), North Gujarat (NGU), Rajkot (SU) and Bhavnagar (BU)

World Class IT Professionals from Baroda Sam Pitroda, Dr Madhu Mehta, Dewang Mehta (NASCOM), Many more
Dr R Khajuria TEAM 5

Baroda: Emerging Finance City

Vibrant Stock Exchange International Banks: Citibank, HSBC, Standard Chartered, ABN Amro Indian Banks: Bank of Baroda, State Bank of India, Central Bank, Dena Bank, Union Bank, HDFC, ICICI, UTI, Yes, Kotak 30 Banks Large Corporations: IPCL, IOC Refinery, GSFC Security & Safety Cheapest Space in India!
Dr R Khajuria TEAM 6

Destination: Baroda K-City

Recently, 193 MSU Graduates offered job by Progen, BPO arm of Infosys at Pune, through Technology Promotion Trust (TPT) The Indian and Multinational IT / ITES firms are eager to come to a location, which has high speed internet backbone, highly Educated Graduates in abundance, IT environment, Vibrant Stock Exchange, International and Indian Banks, Security & Safety, and Cheapest Space in India! Thats why Baroda Knowledge City.
Dr R Khajuria TEAM 7

Baroda K-City to house

Companies / Firms / SMEs in BPO (Business Process Outsourcing) Information Technology Software Hardware, Software Embedded Hardware Multimedia, Graphics, Animation Banking & Finance Advertising, Marketing and Publishing Training and Consulting
Dr R Khajuria TEAM 8

Baroda K-City Project

50 - 100 Acres Land proposed (Viability based) Acre Plot x 100 - 200 Plots 5 - 10 Towers Phase I: 100,000 Sq ft Construction
1,000 to 20,000 Sq ft Modular Office Space

Phase II: 100,000 Sq ft Construction Phase III: 100,000 Sq ft Construction Open Developed and Fibre Optic wired Plots
Dr R Khajuria TEAM 9

Technology Infrastructure
SEZ (Special Economic Zone) Status Internet backbone Tower with Satellite connectivity for direct Software Export & Communication Wi-Fi Technology or Wireless Fidelity connectivity
Voice & Data transfer rate @ 11 Mbps (802.11b) and 54 Mbps (802.11a). More to come

PC Ready Air-conditioned Floors or Buildings for Large Software Exporters and BPO / KPOs SME Tower: PC Ready A.C. Offices for Software/BPO SMEs
Dr R Khajuria TEAM 10

Knowledge Infrastructure
Wired Developed Plots for Multinationals to construct buildings as per their design and needs IT Forum Vadodara Institute of Software Management & Training Institute of BPO Management & Training Institute of Knowledge Management & Training Institute of Consulting Management & Training 3 / 4 / 5 Star Hotels with Health Spa Service Apartments, Bachelors Hostel Indoor and Outdoor Sports & Entertainment
Dr R Khajuria TEAM 11

Basic Infrastructure
Green Projects (No Pollution) Recreation and Health Clubs, Swimming Pools Landscaped Gardens with Fountains 24/365 Power from GEB / Wind Farm / Gas Clean Water / RO System Several Hardware Suppliers, Transport Banks with Finance and ATMs Full Security and Safety Access to Airport, Rail, Roads in 20 minute
Dr R Khajuria TEAM 12

SEZ Benefits: Imagine!

A designated duty free enclave, treated as foreign territory for trade operations and duties and tariffs. 100% Tax-free Import, Export, Excise Duty and Sales Tax (Norms) 100% Income Tax Free to all Units in SEZ for 5 years, 50% free for next 5 years on Reinvestment of Profits 100% Foreign Investment permitted No Licence Required for manufacturing
Dr R Khajuria TEAM 13

Knowledge City Project Cost

(Rs Crore) Phase I. Total 3 Phases

Land & Roads 100 Acres 04.00 Buildings 100,000 Sq ft 20.00 Equipment & Electrification 04.00 Internet Backbone & Wi-Fi 01.00 Misc Assets & Fees 01.00 TOTAL Project Cost Phase-I 30.00 Phase II and III 70.00
Dr R Khajuria TEAM

14.00 60.00 12.00 04.00 10.00 100.00

14

Sources of Finance
(Rs Crore) Phase I

Equity Capital: BRG @ 75% 07.50 Associates / NRIs @ 25% 02.50 Total Equity Capital @ 33.33% Capital Subsidy: Govt of Gujarat Term Loan from Bank @ 50%/66.67% TOTAL Project Cost Phase I (100%)

10.00 05.00 15.00 30.00

Funds for Phase II and III shall be raised from suitable Debt/Equity leverage
Dr R Khajuria TEAM 15

Funds & Permissions

Bank Loan for Rs 20 Crore (Including Subsidy) Application to Chief Secretary and Secretary Science & Technology of State State Govt commitment and Subsidy Clearance by State Government State Govt forwards to Department of Commerce, Govt of India Notification issued as SEZ by Central Government Single Point Clearance to all Units coming to SEZ
Dr R Khajuria TEAM 16

Promoters
Sargam Infrastructure Pvt Ltd - SPV to implement project
BRG Group of Baroda Promoters of Educational Institutions and Real Estate Bakulesh Gupta & Associates @ 75% Equity Associates / NRIs @ 25% Equity proposed

International Investors will be invited in Phase II High level Professional Team to advise, implement, market and manage Knowledge City Baroda Knowledge City Pvt Ltd to maintain
Dr R Khajuria TEAM 17

Invitee Companies
Telecom Sector
TATA Indicom Reliance Infocom BSNL British Telecom (BT) UK Airtel, Hutch (Essar), SingTel Singapore, L & T Design Services TATA Consultancy Services (TCS) Wipro, Infosys Technosoft (Baroda/Mumbai/UK/USA) Gujarat-based 500 Software companies
Dr R Khajuria TEAM 18

Software Sector

Invitee Companies
BPO Sector
Doshi Accounting Services, Baroda (subsidiary of London UK firm of Chartered Accountants) ProGen / Infosys Mphasis IBM Consulting Gujarati / NRI firms from India and UK, Europe, USA, Singapore, Australia, Middle East and Africa Foreign Software / BPO / KPO firms

Film Software
Animation, Computer Aided Design (CAD), Graphics
Dr R Khajuria TEAM 19

Invitee Companies
Banking Sector BPOs
HSBC / Citibank / Standard Charted Bank ICICI / HDFC / Private Banks State Bank of India / BoB / Public Sector Banks NBFCs (Non Banking Finance Companies) and smaller Banks

Consulting Firms
Payroll, Accounting, Medical Transcription, Finance

Advertising, Marketing and Publishing Houses Technical Software and CAD Hardware manufacturers and maintenance
Dr R Khajuria TEAM 20

Target Countries
India: Gujarat, Mumbai, Pune, Bangalore, Chennai, Hyderabad USA: Silicon Valley, New York, other cities Europe: UK, Germany, France 25 Countries Singapore Australia Malaysia Japan Africa?
Dr R Khajuria TEAM 21

Development Strategies
Make Baroda a Happening Place like Inox
E.g. RC Dutt Road for only walking @ 7-11 PM like a European city

Set up large scale Training Centres in Baroda to create BPO trained Manpower
TPT, MSU, IT Forum and Private Sector have started Other University cities of Gujarat should replicate Educational Programs to start in BPO Operations & Management

Announce a big project with a big bang!

This will attract large players from India, abroad
Dr R Khajuria TEAM 22

Development Strategies
Pre-feasibility Study & Report
Location selection Prima-facie opinion of State Government

Detailed Techno-economic Feasibility Study Fund / Loan Raising on competitive terms Office, Team formation, Design Marketing, Tie-ups, Brochure, Website Development & Construction of Phase I Time is critical: 1+5+12=18 Months for Phase I
3 Years permitted
Dr R Khajuria TEAM 23

Knowledge Partners
TEAMPro Limited, London Dr Rajesh Khajuria, Director Email: rajesh@teampro.org Web: www.TeamPro.org Vadodara T: 94260 75402 London T: +44-20-8866 4345 (Sunil Vaghani)

Building Knowledge Bridge

Dr R Khajuria TEAM 24