Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
FINAL REPORT
Undertaken for -
APRIL 2008
CONTENTS
1. SITE ANALYSIS .................................................................................................................................. 3
1. SITE ANALYSIS
The property is a freehold land located in Sector – 8 of IMT Manesar, Gurgaon.
Property Description
Location
th
The property is a vacant land parcel. It was allotted to M/s A. N. Buildwell Pvt. Ltd.; on 18 April’2006. The
address of the property is; CP – 4, IMT Manesar, Gurgaon.
Neighborhood
The property is located in an industrial area of Sector 8, IMT Manesar, Gurgaon. In this sector approximately 141
acres of land has been allocated for IT parks only. The plots have been allotted to developers and promoters for
their development as IT parks. There are total of 10 developers who have been allotted these plots, with
approximate area of 10 acres, each.
The IMT Manesar has a total extent of approx. 1736 acres, divided into various sectors. The IMT Manesar in itself
is a self sustainable industrial township with specific areas meant for industrial, institutional, commercial,
residential etc activities.
The industrial plots here are of varied sizes; generally vary from 1,000 sq.mt to 12,000 sq.mt. It is still not fully
developed with only Phase-1 of its development complete, with Phase-2 still going on and Phase-3 is yet to begin.
The marketability of Manesar is very good due to its location. It is located on Delhi-Jaipur Highway known as NH-
8 and 32Kms away from the domestic and International Airport It is well connected with the metropolitan’s viz.
Delhi, Jaipur, Ahmedabad and Bombay by roads and a proposed expressway on NH-8 from Delhi to Jaipur
through IMT site is already in progress and is likely to be completed by year 2008. Railway head is available at
Gurgaon and Garhi Harsaru (10 Kms away from IMT).
IT-ITeS is one of the key employment sectors for the region. Governments in Haryana, Delhi, Uttar Pradesh and
Rajasthan have separate IT Policies which promote the sector and have announced many incentives for IT-ITeS
based developments. This has promoted many companies, especially BPOs/KPOs to set up offices here to avail
the various benefits.
The growth of ITeS jobs in NCR region has been significantly higher than most cities in India, registering 13%
growth rate in up to Q2 2007. The rate of job creation in IT segment though has fallen by 2% up to Q2 2007. This
is due to the fact that most IT companies prefer to expand operations regarding software and R&D in South India
while BPOs, KPOs prefer to be located in NCR due to higher social acceptability and larger skill specific talent
pool. However, it is to be noted that many MNCs have their corporate offices in NOIDA indicating that the above
trend is observed based mostly on internal company policies.
The following is inferred by analyzing the market dynamics and the research data:
• The share of IT-ITeS employees for the metro cities is 93.33% of the total employed in the sector.
• The share of NCR region of the IT-ITeS professionals in metro city is 20.32% in 2006-07.
• The overall ratio of no. of jobs to no. of graduates in IT-ITeS sector in India is 0.92: 1, indicating that the
rate of job growth is just enough to fulfill the no. of graduates passing out every year.
• The ratio of no. of jobs to no. of graduates in IT-ITeS sector in NCR region is 2.5:1. This indicates that the
rate of job creation is higher than the no. of graduates available to take up the jobs every year.
• NCR region has the third highest no. of opportunities per person in IT-ITeS sector after Bangalore and
Mumbai.
• The overall IT to ITeS companies ratio in India is 2:1, with 25.71% of the IT companies located in
Northern India, 45.35% of IT companies located in Southern India, 20.89% located in Western India and
17.79% located in Eastern India.
• The ratio of IT and ITeS companies in NCR region is 1:1.5, indicating that both software development and
outsourcing industry have strong presence in the region.
The above indicates that BPO, KPO and back office operation related activities are concentrated in NCR
region. The National Capital Region (NCR) has witnessed overall office space absorption of 6.36 million
sq. ft. in the first three quarters of 2006. The total absorption for NCR is estimated to be 8 million sq. ft. by
year end, nearly 3.5 times of the absorption in the entire year of 2005 (2.36 million sq. ft.).
30.0
o Noida has had the Office Space Demand created by IT/ITes sector
highest contribution in 25.6
25.0
creating demand for Delhi Gurgaon Noida
area in million sq ft
IT/ITes office spaces 20.0
followed by Gurgaon,
then Delhi in the NCR. 16.6
15.0
12.4
11.1
10.0
7.6
5.0 5.5
3.5 5.5
2.2
0.0
2005-06 2007-08 2009-10
year
G NOIDA 60 110
NOIDA 80 150
Gurgaon 100 210
Bikaji Gama Place 110 250
Nehru Place 220 320
Connaught Place 320 450
** The buildings are categorized into different grades (A,B,C) based upon the factors like: Location, connectivity,
construction quality, facilities, maintenance, security, parking and supporting infrastructure like essential retail and
entertainment space for a proposed office space.
30,000
Capital Value in Rs per sq ft
25,000
20,000
15,000
10,000
5,000
0
Oct '05 Jan '06 May '06 July'06 Oct'06 Dec '06 March '07 June '07 Sept '07
350
Variation in rental values of office space within CR
300
rentals in Rs/sq ft/month
250
200
150
100
50
-
Oct '05 Jan '06 May '06 July'06 Oct'06 Dec '06 March '07 June '07 Sep '07
The variations in capital and rental values of the commercial real estate within the NCR region for the
past few years has shown tremendous hikes as observed from the above representations
Gurgaon has emerged as a large commercial and industrial centre near Delhi, especially for software and hi-tech
companies. Gurgaon is one of India's main outsourcing hubs, housing multinational firms such as Sapient,
Agilent, TCS, Polaris, IBM, Microsoft, Google, Oracle, ITC, Ranbaxy, Adidas, Nokia, Pepsi, RBS, Alcatel,
American Express, British Airways, Convergys, eFunds, Ericsson, Fidelity Investments etc.
Most of the commercial development in Gurgaon has developed along NH-8, Sohna Road and Golf Course Road.
NH-8: Projects on this main transport arterial connecting Gurgaon to Delhi and Jaipur, include Signature Towers
(functioning); DLF Cyber City (this includes projects such as Building Nos. 8; Building Nos. 9; Infinity Towers and
Cyber Greens).
Golf Course Road: Grade ‘A’ projects on this road include Centrum Plaza (ready for fit outs); Technopolis
(functioning), Masterpiece (functioning), Golf View (functioning), Narsi’s Cityscape; Baani’s Statement (ready for
fit outs), Vatika Towers (1 tower functional), DLF Center Court (functioning) and Vipul Builders have constructed a
built-to-suit structure for Dell.
Sohna Road - Projects on Sohna road include Universal Trade Tower and Vatika Technology Park.
Other projects include Unitech’s Info Space on Old Gurgaon Road (first phase – 4,60,000 sq.ft.); H-H Towers
(formerly called Acropolis – ready for fit-outs), Enkay Center (functional) and Cosmo City (functional) in Udyog
Vihar. Capital Fortune is a premium office space on Mehrauli Gurgaon road. Pace City in Udyog Vihar Phase VI
(Industrial Phase) has built to suit IT/ITeS developments.
•v
Rs.40-70/sq.ft/month
Rs.90-130/sq.ft/month
Rs.80-110/sq.ft/month
Rs.75-110/sq.ft/month
Rs.45-60/sq.ft/month Rs.55-75/sq.ft/month
Rs.55-65/sq.ft/month
Demand Driver:
IT/ITES is the key demand driver for office space in NCR region. Gurgaon and NOIDA are the IT hubs in NCR
region while Greater NOIDA and Manesar are emerging centers.
Gurgaon is the largest IT hub in NCR region and has highest concentration of BPO companies in India while
NOIDA is characterized by corporate offices of MNC and Indian IT majors. Preference for Gurgaon to set up
operation by the IT majors has resulted in 9 notified IT/ITeS SEZs in the region by real estate majors like DLF,
Unitech, Uppals and others. Most these notified SEZs are expected to release the supply in phased manner with
DLF IT SEZ at sector 24A and Unitech IT SEZ on old Jaipur -Gurgaon-Delhi Road to be operational by early
2008.
A total of 35.57 million sq.ft of commercial area will be available of which, 22.00 million sq.ft is earmarked for IT-
ITeS. It is expected that the total supply of space from the notified IT-ITeS SEZs will be 56.38 million sq.ft when
they are fully operational.
Supply:
Gurgaon is expected to have 35.57 mn.sq.ft. of supply of commercial space in the next 3 years, the bulk of which
will be made available in the numerous SEZ projects coming up here.
The notified SEZs and formally approved SEZs whose construction is under way will contribute to 48.99 mn sq.ft
in the next 5 years. The commercial projects targeting the IT-ITeS segment will contribute 13.08 mn sq.ft by 2012.
Gurgaon will continue to lead the office space supply in NCR by having 45% of the total market share. IMT
Manesar, 11 kms south of Gurgaon, will be offering approximately 15.00 mn.sq.ft. of space by 2010-11 through
various IT parks located in HSIIDC complex off NH 8.
IT-ITeS clusters are located mostly on NH-8, MG Road and Gurgaon-Sohna Road where the rentals are
Rs.130/sq.ft/month, Rs.145/sq.ft/month and Rs.60/sqft/month respectively. Golf Course Road caters primarily to
corporate office space with rental rates at Rs.140/sq.ft/nmonth.
Some important transactions done by IT/ITes companies in NCR in the past few years, indicating their
space requirements:
- Tech Mahindra leased 150,000 sq ft in Sector-58 Noida on a bare-shell basis at Rs.18 per sq ft.
- EXL and Energizer leased 125,000 sq ft each in Sector-64 Noida at Rs.26 per sq ft (warm-shell).
- Nokia and Siemens leased 50,000 sq ft each in DLF Cyber Park, Gurgaon between Rs.45-47 per sq ft
(warm-shell)
- Cisco leased 3,800 sq ft in Connaught Place for Rs.310 per sq ft (warm-shell)
- ICICI Bank and Boeing each leased 14,050 sq ft in Nehru Place at Rs.155 per sq ft (warm-shell)
Recently Unitech Infospace (IT SEZ) in Dhundahera have leased at the following rates:
S.No. Area (sqft) Rent/sf/month Transaction held
1 97526.00 51 March'08
2 1852.82 61 January'08
3 714.72 68 December'07
4 1100.61 70 November'07
The average rentals for other commercial office space made available by converting independent industrial units
in Udyog Vihar are in the range of Rs.16/sq.ft.per month in 2005. Developments in Udyog Vihar range around
100,000 sq.ft. and above.
More IT/ITES corporates are expected in future to opt for built-to-suit facilities being offered by developers like
DLF Universal, Unitech Ltd., Vatika, etc.
Infrastructure is still a major concern for developers in Manesar and Gurgaon. Though power availability problems
are being taken care of by providing D.G. sets, major concerns are being raised over the ever-increasing water
problem in this region.
Some of the key transactions already had taken place in Gurgaon Micro Market.
Leased Area Rental Transaction
S.Nos. Tenant (sq.ft) Building Developer Location (Rs./sq.ft/month) Floor Bldg Status Date
1 Apollo DKV 21,000 Masterpiece AIPL DLF Phase V 150 (Furnished) na Completed Q1 2007
2 Glaxo Smith Kline 15,000 Vatika Towers Vatika Group DLF Phase V 90 13th floor Completed Q4 2006
3 Audi 22,000 Orchid Centre Orchid Petals Golf Course Road 150 (Furnished) GF Completed Q1 2007
4 Aviva 81,000 Statement Baani Golf Course Road 100 na Completed Q3 2006
5 Okuma 3,305 Times Square Ansal API Sector 41 85 GF Completed Q3 2006
6 Logica 6,500 Vatika Towers Vatika Group DLF Phase V 90 na Completed Q4 2006
Under
7 Bank of Scotland 100,000 DLF Bldg 7A DLF DLF Cyber City 35 BTS construction Q4 2006
8 American Express 200,000 DLF DLF Cyber City 30 BTS Completed Q3 2006
Under
9 Genpact 70,000 DLF Bldg 7B DLF Cyber City 30 BTS construction Q3 2006
10 Metlife 12,000 Orchid Centre Orchid Petals Golf Course Road 85 - 90 Completed Q3 2006
The number of actual jobs created both in IT and ITeS segment in NCR and the percentage share of the job
market is as follows:
It is expected that the job market share for NCR will stabilize at 26.64% while the share of Gurgaon, NOIDA and
Manesar will be in the ratio of 5:4:1 and is not expected to change much due to coming supply of office space in
all the three regions in proportional magnitudes.
The projections of the job demand have been done using the overall CAGR for sector at 19.33%.
2.44
2.50
2.03
2.00 1.69
1.41
1.50 1.18
0.98
1.00
0.50
0.00
From the above table it can be deduced that a demand of 2.0 to 2.25 mn sq ft of office space will be created by
the IT/ITes industry in Manesar by the end of the year 2010. These figures assume that the IT/ITes industry in
NCR will continue with its current cumulative averaged growth rate.
PANIPAT
SONEPAT
GHAZIABAD
DELHI
NOIDA
GURGAON
IMT MANESAR
FARIDABAD
INDUSTRIAL HUB
MANESAR
Manesar is ideally on the NH-8 linking Delhi and Jaipur, 17 km from Gurgaon. The Indira Gandhi International
Airport is 32 km from here. According to the master plan 2006, the settlement is divided into 8 sectors and
majority of them are industrial sectors. The total area of IMT Manesar is 1,749 acre of which 1,300 acre has been
allotted for Industrial activities. For commercial/institutional 256 acre has been allotted. The rest 193 acre has
been demarcated for the residential zone. Given below is a list of the sectors along with their land use.
Sector Type
Sector 1 Residential
Sector 2 Commercial
Sector 3 Industrial
Sector 4 Industrial
Sector 5 Industrial
Sector 6 Industrial & Commercial
Consultancy Services – Knight Frank 13
Final Report for A.. buildwell Pvt. Ltd.
SECTOR 1
Sector 1 is completely a residential zone with absolutely no commercial activity. It lies on the left hand side of the
highway while going from Delhi to Jaipur.
HSIDC had demarcated plots of 250 sq mtr, 312.5 sq mtr and 450 sq mtr and sold it out at a rate of Rs 2460 per
sq mtr in the year 2003-2004. A group housing project by SIDCO and HSIDC is also underway. The rate at which
it was launched in mid 2006 was Rs 1,080 per sq ft. The entire project has been sold out and the present rates
there are approx Rs 2,000 per sq feet.
Apart from this, the sector also has sites allocated for schools, shopping arcades, and other public utilities. This
sector is separated from the industrial sectors by the national highway. There is also a 50-mtr wide green belt on
either side of the highway, which maintains healthy environment. The residential sector is planned to be
connected to the rest of the sectors lying on the other side of the highway, by a flyover.
SECTOR 2
This sector is marked for the commercial activities of Manesar. It has HSIDC’s office, housing for all the industry
related government departments, trade towers, provision for the financial market and the other commercial and
institutional facilities. At present there is just one completely functional commercial building by the name of Raheja
Square. However the occupancy of the complex is quite low.
Raheja Square
Raheja Square is the only operational commercial establishment in Manaser, developed by the Raheja group in
plot ‘A’ of sector 2.The total built up area of the building is approximately 75,000 sq ft. There are a total of seven
floors in the building. On the ground floor there are couple of banks currently operational along with their ATM -
IDBI, ICICI, HDFC, ING Vysya, Bank of Baroda, Indian Overseas Bank.
The other similar projects under construction are Eros Corporate Mall, Element 9 and Amrapali Corporate Mall.
Tabulated below are the project details of all the commercial projects coming up in the region.
These are the Industrial sectors of IMT Manesar. These sectors constitute a total of around 1300 acres and are
developing at a fast pace. Around 500 industrial units are already functional here and 600 odd are under
construction. Some of the big names who have set up their operations here are Honda Motorcycles, Scooters
India Limited, Denso Haryana, Maruti Suzuki, Mitsubishi Electrical, Frego Glass, Baxter, Johnson Malthey, NHK
Jai Suspension, TSK Nippon and Munjal Showa. As can be noticed, most of the companies belong to the
auto/auto ancillaries or light engineering sector.
Maruti Udyog has setup a manufacturing unit as a part of the Phase III of the HSIDC plan for development of IMT
Manesar. The area of this site is 600 acres. Presently, only the Maruti Suzuki Swift model is being manufactured
here. By mid-2008, Maruti Udyog is planning to increase their production capacity to 300,000 units per annum.
Samsung has also started commercial manufacturing of its mobile sets in Manesar.
Area Description
The IT Park at Manesar is coming up on 140 acres of land, and twelve companies have been allotted 10 acres
each for campus development. They are allowed to construct not only institutional buildings but also commercial,
residential and recreational facilities on the same campus. According to sources from the HSIDC office, there
would be an investment of more than Rs 3,600 crore in the technology park and 50,000 persons would get
employment directly or indirectly in these companies.
The 12 companies which have been allotted the plots are Agilent Technologies, Giallilio, T-3 Infra Track, HCL,
Sofer, Prime Rose Bharti, Vigneshwara, Anantraj, AN Buildwell, Rishi Raj Realtors, Shapoorji Palanji and Arora
Udyog.
In the ten acres allotted to the companies, they will be allowed to construct 84 per cent for technology centre, 10
per cent for housing flats, 4 per cent for commercial use and 2 per cent for recreational use. The HSIDC would
develop public facilities on the remaining 20 acre land in the technology park.
Infrastructure
The government has constructed a very well planned infrastructure that is necessary for a good industrial
township. There has been a provisions for a helipad, trade tower, office buildings, fire station, skill development
centre, police station, shopping malls, health facilities, school sites, sites for post office/banks, conference centre,
warehousing & cargo facilities and HSIDC office complex housing all industry related government departments.
The work on the 135 km long Kundli-Manesar-Palwal expressway is in full swing. This expressway will connect
NH-1, NH-2, NH-8 and NH-10 reducing the travel time to almost half. The estimated cost for the project is Rs
1800 crore. It is expected to match international standards of quality infrastructure and would have facilities like a
trauma centre, helipad, parking lots, refilling stations, refreshment centres, police stations, car wash, besides
recreational facilities
Besides HSIDC has also planned to develop 3 star and 5 star hotels and also a hospital with 100 beds. The
electricity supply is taken from a 220 KV sub station in Badshahpur.
Education
HSIDC has reserved quite a few sites for the setting up of schools at IMT Manesar. In fact recently a school site
of 5 acres was auctioned. Other than schools there is also a plan of establishing a Biotechnology Park on an area
of 50 acres through partnership of a private organisation with the Department of Biotechnology, Government of
India.
A Rs 400 crore auto research project is also coming up in Manesar. It will be aided by the Central Government
and will be called the National Automotive Testing and Research & Development infrastructure project. The
project will occupy an area of 40 acres.
Further, CPWD has completed a survey for recognizing the site for establishing a National Law University here in
IMT Manesar.The university is a centrally sponsored project and will be spread on an area of 25 acres.
Situated in IMT Manesar the future Not too many developments taking
IT/ITES hub within the NCR. place near the site.
Opportunities Threats
As IMT Manaser is not currently a fully developed commercial space, we need to take Gurgaon market as our
base and extrapolate our data with reference to this assignment.
Out of these plots two of them have started constructing with the aim to provide space to IT/ITES companies.
The proposed site measuring precisely 38,212 Sq. Mt. will be a state-of-the-art technology towers. The building is
a grade A structure featuring a luxurious, fully-furnished housing complex, full-fledged shopping area, and
sophisticated leisure and recreational facilities.
The entire ground floor (Approximately 40,000 Sq. Ft area) in the technology related halls will be used for
common amenities and recreation, like cafeterias, gymnasiums, conference halls, travel desks, business centres,
spas, meditation and yoga centres, libraries, shopping and sports facilities like the stadium and the amphitheatre
to hold events.
The project will be having 5 separate towers. The number of floors will vary will be from 9 to 15 with each floor
having a maximum of 85,000 – 90,000 sqft of combined IT space. In all they are expected to come up with 8 Lakh
sqft It space in the project.
• 24 hours reliable power supply through dedicated substation - 100% back-up through DG sets
• Earth station with high bandwidth providing direct connectivity with destinations across the IT City for rapid data
Transfer
• Data processing, ISDN and video conferencing with unlimited bandwidth and internet access
• 2000 line net-based digital telephone exchange expandable to 6000 lines - connected to the central exchange
with fiber optical cables
• Electronic monitoring system for vigil over fire, air conditioning, water supply, power, elevator and security.
• Comprehensive security system, fire alarm, fire fighting system, guard patrols, CCTV surveillance and door
alarms.
• A multi-purpose 1000 seats capacity modem convention center, boardroom for meetings and conferences
• Parking bays
The group is coming up with a 10 acre technology corridor in Manesar. They are developing an IT space of 1.8
million square feet of ultra modern Building & infrastructure Office, Retail Mall, Club and Recreation, Residential
Service Apartments.
The project is coming up with the International standard IT offices covered in 1 million Square feet area and with a
total of 5 towers. They are planning to have service apartments of 80 rooms, Retail malls & Recreation clubs of
50,000 Sq.ft area, a Helipad facility and approximately 21 acres of parking space – 7 acres each of 3 tier parking.
The company is planning to give the final product in the market by 2013 on both Lease and sale model. The
project started at a year and a half back at Rs 5,500 psf graduating to Rs 6,500 psf with current selling rate at Rs
7,500 psf. They are offering a 12% assured returns for 5 years and a buy back plan after 2.5 years at 61.5%
appreciation.
Typical
Typical floor plan
A TM
3%
Recreational / Retail
/ Eatery
9%
IT/ITes
68%
Building Name Unitech Cyber Park Name area (sq ft) Floor
Tower : A Pizza Hut 4842 G.F
G.F - Brocade Ford India Pvt. Ltd Costa Coffee 3766 G.F
G.F - City Bank ATM Masala Twist 2690 G.F
G.F - Standard=Chartered ATM
F.F- Hewitt Associates India Pvt.Ltd
2th.F- Evalueserve Private Limited
3th .F- Bharti Aritel Limited
4th F- Bharti Aritel Limited
5th F- Vertex Customer Services India Pvt.Ltd
6th F- Hewitt Associates India Pvt.Ltd
7th F- Hewitt Associates India Pvt.Ltd
Number of Lifts 8
Number of Floors G+7
Current Rental (Rs/sq ft/month) 120-150
Maintenance charges (Rs/sq ft/month) 17.5
Advance 6 months rent
3+3+3 model & after every three
Lease Model & Locking Period
years an escalation of 15%
Tower : B
G.F- Bharti AXA Life Insurance
F.F- Hexaware Technologies Ltd
F.F-Kuoni Group - Shared Services
F.F - Optima Technology partners
2th F- DLF Laing O' Rourk India Ltd
3th F- Evalueserve Pvt.Ltd
4th F- Evalueserve Pvt. Ltd
5th F- Bharti Airtel Limited
6th F - Bharti Airtel Limited
7th F- Bharti Airtel Limited
8th F- Bharti Airtel Limited
9th F- IBM Daksh
10th F- IBM Daksh
11th F- IBM Daksh
11th F- Intercontinental Hotels Group
12th F- Unitedhealth Group
14th F- Unitedhealth Group
15th F- Firstrain Inc
16th F- Eicher Engineering Solutions
16th F- Belend India Pvt.Ltd
Number of Lifts 6
Number of Floors G+16
Current Rental (Rs/sq ft/month) 120-150
Maintenance charges (Rs/sq ft/month) 17.5
Advance 6 months rent
3+3+3 model & after every three
Lease Model & Locking Period
years an escalation of 15%
Tower : C
G.F- Pizza Hut
G.F- Costa Coffee
G.F- Masala Twist
G.F- Atlas Copco India Ltd
G.F- Devyani International Ltd
G.F- Kendle India Pvt.Ltd
F.F- Unitedhealth Group
2th F- Unitedhealth Group
3th F- Unitedhealth Group
4th F- Unitedhealth Group
5th F- IBM Daksh
6th F- IBM Daksh
7th F- IBM Daksh
8th F- IBM Daksh
9th F- IBM India Pvt. Ltd
10th F- IBM India Pvt. Ltd
11th F- Sun Life India Services Centre Pvt. Ltd
14th F-Bharti Tele shop
15th F- Bank of America
Number of Lifts 6
Number of Floors G+16
Current Rental (Rs/sq ft/month) 120-150
Maintenance charges (Rs/sq ft/month) 17.5
Advance 6 months rent
3+3+3 model & after every three
Lease Model & Locking Period
years an escalation of 15%
Tower : D
G.F- Fidelity TM India
F.F- Fidelity TM India
2th.F- Fidelity TM India
3th.F- Fidelity TM India
4th.F- Fidelity TM India
5th.F- Fidelity TM India
6th.F- Fidelity TM India
7th.F- Fidelity TM India
8th.F- Fidelity TM India
9th.F- Fidelity TM India
10th.F- Fidelity TM India
11th F- Fidelity TM India
Number of Lifts 8
Number of Floors G+11
Current Rental (Rs/sq ft/month) 120-150
Maintenance charges (Rs/sq ft/month) 17.5
Advance 6 months rent
3+3+3 model & after every three
Lease Model & Locking Period
years an escalation of 15%
IT/ITes
47%
Other co mpanies
53%
A TM
0%
IT/ITes
82%
Building Name Unitech Trade Centre Name area (sq ft) Floor
G.F- Amsoft Systems Unicafe 3228 G.F
G.F- UOP A Honey Well Company ICICI Bank 19368 G.F
F.F- Green Field online S.B.I. Bank 3766 G.F
2th F- Convergys
3th F- Keane Enabling Transformation
4th F- Keane Enabling Transformation
5th F- Keane Enabling Transformation
6th F- Keane Enabling Transformation
Number of Lifts 6
Number of Floors G+6
180-200
Current Rental (Rs/sq ft/month)
0% vacancy
Maintenance charges (Rs/sq ft/month) 17.5
Advance 6 months rent
3+3+3 model & after every three
Lease Model & Locking Period
years an escalation of 15%
IT/ITes
23%
Building Name Unitech Global Business Park Name area (sq ft) Tower Floor
Tower : A East 101 Cafe& Bar 10222 B G.F
G.F- Quest Venture Coordinators Pvt Ltd Barista 1614 B G.F
G.F- Lord Krishna Bank Limited Sola Toppe 2690 C G.F
G.F- Manpower Services India Pvt.Ltd China Club 10760 C G.F
F.F- Perfetti Van Melle
2th F- ZTE Telecom India Pvt. Ltd
3th F- Electrolux
4th F- Pepsico India Holdings Pvt Ltd
5th F- Pernod ricard India
6th F- Ogilvy & Mather Pvt. Ltd
7th F- Ogilvy & Mather Pvt.Ltd
8th F- Ogilvy & Mather Pvt.Ltd
9th F- Jones Lang Lasalle Meghraj
Number of Lifts 4
Number of Floors G+5
160-200
Current Rental (Rs/sq ft/month)
0% vacancy
Maintenance charges (Rs/sq ft/month) 17.5
Advance 6 months rent
3+3+3 model & after every three
Lease Model & Locking Period
years an escalation of 15%
Tower : B
G.F- Food Court
G.F- HDFC Bank ATM
G.F- Citi Bank ATM
G.F- East -101 Café & Bar
G.F- East - 101 Oriental Bistro
G.F- Green Avenues
G.F- Colgate Palmolive India Limited
F.F- INOX Global Services Limited
2th F- INOX Global Services Limited
2th F- HBE Group
3th F- Davix
3th F- Davix
3th F- STR India Pvt. Ltd
3th F- Tewari Enterprises India
3th F- Capital IQ
3th .F- MTV
3th F- Capital IQ
3th F- Lexsphere
4th F- Auchan Intornational S.A
4th F- Capital IQ
4th F- AES India
5th F- AIS Asahi India Glass Limited
6th F- Nitous Chemicals India Limited
6th F- Sonosite
6th F- Dimen Sions
6th F- Dimen Sions
6th F- Caritor India Pvt Ltd
7th F- Amrop International
7th F- DUA Associates Advocates
7th F- DUA Associates Advocates
7th F- Pernod Ricard India
8th F- English India Clays Ltd
8th F- Quest Venture Coordinators Pvt.Ltd
9th F- Blair INTL
9th F- BTI Consultants
9th F- SAB Miller India
9th F- Equis
9th F- AIS
9th F- Capital IQ
9th F- AIS
Number of Lifts 4
Number of Floors G+9
Current Rental (Rs/sq ft/month) 180-200
Maintenance charges (Rs/sq ft/month) 17.5
Advance 6 months rent
3+3+3 model & after every three
Lease Model & Locking Period
years an escalation of 15%
Tower : C
G.F- Restaurant
GF- China Club
G.F- Sola Topi
F.F- Indiago Airlines
2th .F- Indiago Airlines
3th.F- Indiago Airlines
4th F- Avon beauty Produces
5th F- Tetra Pack
Number of Lifts 1
Number of Floors G+5
Current Rental (Rs/sq ft/month) 180-200
Maintenance charges (Rs/sq ft/month) 17.5
Advance 6 months rent
3+3+3 model & after every three
Lease Model & Locking Period
years an escalation of 15%
Tower : D
GF- EGL - Eagle Global Logistics India Pvt. Ltd
G.F- Suresh Chand Jain & Sons
F.F- Bharat Construction Co.
F.F - Peral INTL & Travels
F.F- Boston Consulting Group
2th F- One Stop Airline
2th F- MRO Supprot Pvt.Ltd
2th F- Lufthansa Systems India Liaison office
2th F- SPAZE
2th F- SVS Propmart Pvt. Ltd
3th F- Continental Engines central Park
4th F- Capital IQ A division of Standard & Poor
5th F- Giesecke & Devrient
6th F- Hewlett- Packard India sales Pvt. Ltd
7th F- Hewlett- Packard India sales Pvt. Ltd
8th F- Hewlett- Packard India sales Pvt. Ltd
9th F- Hewlett- Packard India sales Pvt. Ltd
10th F- S.A.S Servizio Ltd
11th F- Key Safety Systems
11th F- Egonzchnder Informations Research Services
11th F- Master card International
12th F- Yum Restaurants International
12th F- ICIC Lombard General Insurance co.Ltd
14th F- A T Kearney
15th F- Emerson
15th F- Vyas Giannetti Creative
15th F- VGC
15th F- HT Honda Trading Corporation India
16th F- UGS SDRC
No. of Lift 4
No of Floor G+16
Other co mpanies
6%
A TM
2%
IT/ITes
66%
Tower : D
G.F - Food court - Vera pizza
G.F - T & T Motor
F.F- to 15 th F- Sapient
Number of Lifts 9
Number of Floors G+15
Current Rental (Rs/sq ft/month) 100-150
2005 Rental (Rs/sq ft/month) 33-40
Maintenance charges (Rs/sq ft/month) 12.5
Security charges 6
Advance 3
3+3+3 model & after every three years an
Lease Model & Locking Period
escalation of 25%
Parking charges 1 ECS per 1000 sq.ft.@ Rs- 3000 per month
Tower : E
G.F - Food court - Vera pizza
G.F - T & T Motor
F.F- to 15 th F- Sapient
Number of Lifts 9
Number of Floors G+15
Current Rental (Rs/sq ft/month) 100-150
2005 Rental (Rs/sq ft/month) 33-40
Maintenance charges (Rs/sq ft/month) 12.5
Security charges 6
Advance 3
3+3+3 model & after every three years an
Lease Model & Locking Period
escalation of 25%
Parking charges 1 ECS per 1000 sq.ft.@ Rs- 3000 per month
DLF Building No 9
Number of Lifts 10
Number of Floors G+16
Current Rental (Rs/sq ft/month) 115
2005 Rental (Rs/sq ft/month) 33-40
Maintenance charges (Rs/sq ft/month) 12.5
Security charges 6
Advance 3
3+3+3 model & after every three years an
Lease Model & Locking Period
escalation of 25%
Parking charges 1 ECS per 1000 sq.ft.@ Rs- 3000 per month
Other co mpanies
23%
A TM IT/ITes
3% 50%
Tower : B
G.F - Food Court cofe deia Mojo
G.F- Wonderful Developers Pvt. Ltd
F.F - Kring Tellabs India Pvt. Ltd
2th F- Springmdia International INC
2th F- G.E. Capital Business Procerss management Services Pvt Ltd
2th F- ABB Lummus Heat Tranesfer B.V
3th F - B A Continuum Solutions Pvt. Ltd
4th F - B A Continuum Solutions Pvt. Ltd
4th F - I B M Daksh Business Process Services Pvt Ltd
5th F - I B M Daksh Business Process Services Pvt Ltd
6th F - WNS Global Services Pvt Ltd
7th F- R P G Transmission Ltd
7th F- Microsoft corporation India Pvt Ltd
8th F- Equant Solutions India Pvt. Ltd
Number of Lifts 12
Number of Floors G+8
Current Rental (Rs/sq ft/month) 100-150
2005 Rental (Rs/sq ft/month) 33-40
Maintenance charges (Rs/sq ft/month) 12.5
Security charges 6
Advance 3
3+3+3 model & after every three years an
Lease Model & Locking Period
escalation of 25%
Parking charges 1 ECS per 1000 sq.ft.@ Rs- 3000 per month
Tower : C
G.F- Food Court Punjabi nechor
G F- Reliance Industries Ltd.
G.F - A.R. Fisheries Pvt.ltd
G.F- Deutsche Bank A G
G. F- Indo rama retail Holdings Pvt.Ltd
G. F- Active Fitness centres Pvt.Ltd
F.F A B N Amro Central enterprises services Pvt. Ltd
2th .F A B N Amro Central enterprises services Pvt. Ltd
3th F- B A Continuum Solutions pvt.Ltd
4th F- B A Continuum Solutions pvt.Ltd
4th F- I B M Daksh Business process Services pvt.Ltd
5th F- I B M Daksh Business process Services pvt.Ltd
6th F - WNS Global Services Pvt.Ltd
6th F - Trinity Business Process management Pvt. Ltd
7th F - ESPN software India pvt. Ltd
7th F - Equant software India Pvt. Ltd
7th F- Global one India Pvt.Ltd
8th F - Equant Solutions Pvt Ltd
9th F- Acmetele Power Pvt. Ltd
9th F - G.E Capital business Process management Services Pvt. Ltd
9th F- Mysore Cement s Limited \Heidelberg Cement group
10th F - G.E Capital business Process management Services Pvt. Ltd
11th F - G.E Capital business Process management Services Pvt. Ltd
12th F - G.E Capital business Process management Services Pvt. Ltd
12th F - G.E Capital business Process management Services Pvt. Ltd
Number of Lifts 12
Number of Floors G+12
Current Rental (Rs/sq ft/month) 100-150
2005 Rental (Rs/sq ft/month) 33-40
Maintenance charges (Rs/sq ft/month) 12.5
Security charges 6
Advance 3
3+3+3 model & after every three years an
Lease Model & Locking Period
escalation of 25%
Parking charges 1 ECS per 1000 sq.ft.@ Rs- 3000 per month
Features that can be incorporated as value adders to the development after analysis the amenities being offered
by the buildings surveyed and the data collected by the secondary research are:
1 Amenities:
2 Systems:
Central air conditioning system, AHU located on each floor for tenant's distribution system for
convenience
Separate passenger and service lifts to each tower so as to keep hallways and passageways clear of
congestion, which will further enhance the usefulness of the building and will keep it prepared for any
emergency situations.
Provision for built-in conduits for tenant's power, data and voice distribution
3 Design:
An environmentally friendly building benefits in two ways, firstly in terms of lower energy cost and
secondly provides better ambiance at the work place. In the current market scenario the developers
are making an edge in marketing their projects as an environmental friendly structure in terms of
energy efficiency.
The architect for the current project is Mr. Yeang, who is best known for developing environmental
design solutions for high-rise buildings in the tropics. Therefore it is recommended to use his name
for the branding of our project to be environment friendly with state of the art structure.
Premium building finishes, a combination of heat reflective glass, stone and metal panels makes the
building more of energy efficient and relatively easily managed.
A suitable landscaping plan according to and in sync with the building design in order to make the
overall real estate development aesthetically more appealing to the end users.
REMARKS on OBSERVATIONS:
The client can target end-users from the following industry segments, according to the HSIDC IT/ITes
policy:
• The point of approval from the ministry of environment and forest is a requirements when developing an
IT-SEZ and not mandatory for development of IT parks.
• Correction in the Residential Real Estate Market has taken liquidity out of the economy and left
consumers with a lack of confidence. This reason can contribute towards a growth in the number of
investors interested in the commercial/retail/ IT real estate market.
• The portfolio of investors and the very nature of these markets (commercial/retail/IT real estate market
and residential real estate market) is different and are used in combination at times for value- generation,
exact combination specifics being dependent on the mechanism of the combination, existing market
conditions and the objectives of the investment.
We understand the following product mix list to be the most relevant for higher value generation out of the IT park
development at the proposed site. Maximum allowable retail, recreational and residential space can be
constructed in line with the following real estate options which are currently running successfully in the existing IT
parks:
Commercial
• Retail Mix on the ground floor
• Stationary Store
• Book Shops
• Grocery and Daily utility outlet
• Food court
• Restaurant
• Doctor Clinic
• Medical Store
• Corner Café’s
• Music Stores – Planet M
• Automobile Display Store
• Car Wash
• Fitness and recreational Centre
• Gaming Centre – Bowling alley, Computer Games, a corner bar facility
• Hotels
• ATMs
Recreational
• Health Club
• Gym
• Spas
• Swimming Pools
• Indoor Sports Club
• Tennis courts
• Basket ball courts
• Amphitheatre
• Auditorium
Residential
• Service Apartments
• Guest Houses
• Dormitories
Analysis of data collected by Primary Research will provide further insights into the subject
9. PRIMARY RESEARCH
With reference to the survey conducted following are the primary requirements of IT/ITES companies for
an office space:
To get a detailed outlook concerning supportive infrastructure and other facilities for a typical IT/ITes company we
conducted a primary research on twenty IT/ITes companies. The list of all the companies surveyed is given
below:
13 Quadrant Infotech IT
14 Brainbuzz infomedia IT
15 Initiative Technologies IT
16 Teleperformance ITes
17 Quatrio ITes
18 TVS net IT
19 Sparsh ITes
20 IBM Daksh ITes
1 2 3 4 5 6 7 8 9 10
Company
Technova Aspire Aequor Aircom Caneum Alcatel - Lucent HCL Genpact Yatra.com Prologic First
Infocity, Ph - V, Udyog
Ph - IV, Udyog Sector - 43, Sector-34, Sector - 14, Super mart I, DLF Sector - 43, Sector -3 Sector-53, Phase V,
Location Sector 34, Vihar,
Vihar, Gurgaon Gurgaon Gurgaon Gurgaon Phase-V, Gurgaon Gurgaon Noida Gurgaon
Gurgaon Gurgaon
Rental 45.0 60.0 50.0 70.0 105.0 60.0 50.0 120.0 40.0 55.0
CAM 3.0 5.0 7.0 7.0 7.0 5.0 5.0 15.0 4.0 4.0
area 15,000.0 3,000.0 5,500.0 5,500.0 23,800.0 3,500.0 96,000.0 110,000.0 30,000.0 4,500.0
11 12 13 14 15 16 17 18 19 20
Company ACPL systems pvt Summit Information Quadrant Brainbuzz Initiative
Teleperformance Quatrio TVS net Sparsh IBM Daksh
ltd Technologies Ltd Infotech infomedia Technologies
140.0
CAM charges (Rs./sq ft/month)
120.0 120.0
Rent (Rs./sq ft/month)
105.0
100.0
90.0
80.0
75.0 75.0
70.0 70.0 70.0
65.0
60.0 60.0 60.0 60.0
55.0 55.0
50.0 50.0
45.0 45.0
40.0 40.0
30.0
20.0
15.0 12.0
7.0 7.0 7.0 10.0 7.0 10.0
3.0 5.0 5.0 5.0 4.0 4.0 4.5 4.0 5.0 4.0 4.0 2.5
0.0
Ph - IV, Sector - Sector- Sector - Super Sector - Sector -3 Sector- Infocity, Ph - V, Spaze IT, Phase V, Electronic DLF City, Old DLF Phase II, Phase II, Phase V, Phase III, Phase I,
Udyog 43, 34, 14, mart I, 43, Noida 53, Phase Sector 34, Udyog Sohna Udyog City, Phase - Colony, Udyog Udyog Udyog Udyog Udyog
Vihar, Gurgaon Gurgaon Gurgaon DLF Gurgaon V, Gurgaon Vihar, Road, Vihar, Sector - V, Sector- Vihar, Vihar, Vihar, Vihar, Vihar,
Gurgaon Phase-V, Gurgaon Gurgaon Gurgaon Gurgaon 18, Gurgaon 14, Gurgaon Gurgaon Gurgaon Gurgaon Gurgaon
Gurgaon Gurgaon Gurgaon
Shown above in tabular form is the variation in rentals, CAM charges and area taken with location of the
companies surveyed. It is worth noting that CAM charges varies from Rs 2.5 PSF to Rs. 15 PSF, however
generally it revolves around Rs 8 PSF.
Graphical representation of variation in rentals and CAM charges with location of the companies surveyed.
• Generally warm shell is where the owner does the basic civil works of the premises such as Flooring,
False Ceiling and Rest Rooms. However, in some cases Air Conditioning and Light Fittings are also
provided in this said category.
• This is a solution that is reached when a company cannot commit to a lock in period and needs furnished
premises. This way the company's cost of furnishing is substantially reduced as well as the interests of
owner are taken care of as the value of their investment will not get nullified after the end user moves out
of the premises.
• Cold shell is a typical un-furnished office (also sometimes referred to as "Bare Shell Premises") means a
basic floor plate without any civil works or flooring of any nature. This kind of space needs to be designed
from scratch to suit the end user’s needs. Electrical cabling and flooring need to be planned and in a few
cases even positioning of toilet blocks and AHU rooms can be changed.
• Companies planning to lease premises for a Long term usually go in for this kind of office space. The
advantage of bare shell premises is that the architect can efficiently plan the premises taking every
minute details into consideration.
• An approximate amount of Rs.750/- to Rs.1100/- per Sq.Ft. of super build up area is required to furnish
the entire premises to International Standards and it takes anywhere between 30 to 60 days for the office
premises to be in a ready to move in condition from cold shell stage.
• As new technologies are introduced in the construction industry, builders are increasingly opting for "Flat
Slab" construction method. Some Builders also provide under floor ducting's for Electrical, Data and
Telephone Cablings. The benefit of such type of construction is that there are no beams in the structure,
which makes the job of an Architect easier and adds an aesthetic value to the office and this option can
very much be exercised.
• Construction up to the stage of cold shell is more suitable for companies taking up larger spaces of the
order of 150,000 sq ft or more whereas companies taking up lesser amount of spaces up to 50,000-
100,000 sq ft generally prefer a warm shell.
• The client can go for construction up to cold shell in its landmark building, whereas a percentage of
construction activity can further be taken towards a warm shell stage in the other towers being
constructed as it will help in increasing initial absorption rates at the start of end-user market phasing.
• BMS is also helpful for IT companies as it helps them in keeping records of their employees quite easily,
which other wise would be a higher man-hour demanding job, hence can be installed and provided in the
building but physical presence of guards too is necessary to instill confidence of the end user in the
security arrangements.
• Satellite connectivity is not a very frequent requirement as only 30% of the companies require it, but high
speed internet and telecommunication connectivity provided should be consistent and reliable.
45.0%
• Energy Conservation Concept: The companies are preferring LEED certified buildings and are ready to pay
higher rentals for the same. They set off the same by saving on energy conversation which is the prime
objective of an energy efficient structure.
• Green Building Concept will decrease the environmental footprint of the end user making the organisation
more environmentally responsible. 30% of the companies surveyed are interested in taking up such certified
office spaces at a higher rental, which they understand includes an extra cost incurred by the developer.
• On an average 30-35% of the employees come by four wheelers, another 30-35% come by two-wheelers and
the remaining 30-40% are provided cabs. One car space is equivalent to two bike spaces.
30.0%
Cars
40.0%
Bikes
Cabs
30.0%
Assuming that four employees move on one cab, and forty in every hundred employees are provided the
facility, the requirement of cab parking space comes out to be twelve, which takes into account two extra cab
parking spaces.
- Thus in all a company requires 42 car spaces per 100 head count assuming 4 ECSs for cab parking at
any point of time and that 14 % of the employees are on-site i.e. off-office.
- Adding to it another deduction of 2-3% accounting for employees living near their office premises the
number goes down to 41 ECSs per 100 employees.
- IT/ITes industry requirements are 80-100 sq ft space per employee as per secondary research. Primary
Research suggests it to be at 70 sq ft
- That translates to a requirement of 4.4 to 6.3 ECS per 100 sq m, only for IT/ITes space
- HSIDC policy states 2 ECS per 100 sq m of IT/ITes office space development.
- According to the secondary research done the competitors of the developer at Manesar are coming up
with on an average of about 2.2 ECS per 100 sq m of total space development.
Consultancy Services – Knight Frank 47
Final Report for A.. buildwell Pvt. Ltd.
- Primary research puts the number to 4.1 ECS per 100 sq m of IT/ITes office space development.
- Constraints such as the size of the sample set of primary research and high covariance in parameters of
the research viz. number of employees, their areas of residence, over all turn-over and other factors
within the set amplify parking requirements of 4.1 ECS per 100 sq m of IT/ITes office space development.
- A minimum of 2.6 ECS per 100 sq m of the total lettable area development is hence a safe benchmark
as per the understanding inferred from research. This figure is arrived at after the normalization which
requires to be done to contain the effect of high variation in deciding factors, within the acceptable limits
of sigma.
- Construction of a three-tier basement parking area is the most cost effective and efficient space usage
option available with the developers to accommodate parking requirements.
- Construction of a three-tier basement parking area is the most cost and space effective option available
with the developers to accommodate parking requirements.
• On an average the employee strength of the companies surveyed was about 570 of which more than 85%
employees reside either in Delhi or Gurgaon.
- Residential developments in and around Manesar do not have the capacity nor the nature to cater to the
demand of the employees of companies at Manesar today or in the short to medium term. The situation is
unlikely to change in the near future as the demand levels too will witness rises as the new supply enters
the market.
- On the other hand the road and rail connectivity of Manesar with the rest of the NCR is getting better with
time but still conveyance through road is going to be the preferred option in the short and medium term.
- Thus it is important to consider parking requirements as a demand driving factor for the commercial real
estate development at Manesar.
• On an average all the companies surveyed are targeting a growth of over 100%, which is equivalent to
opening another facility within NCR as the small IT companies (based in NCR) surveyed have plans to
expand in NCR first, as business and talented workforce both are available here. Whereas, the medium/large
sized IT/ITes still don’t consider NCR to be exhausted of business and resources, but aim for a
national/international presence and presence of talented workforce outside the NCR too, only adds up to their
existing opportunities.
• The primary research suggest that IT/ITes companies take up about 70 sq ft per employee and the average
module size of an employee in IT/ITes industry is 31 sq ft.
• Quality retail and recreational facilities are within close proximity (walking distance) of only 10 % of the
companies surveyed hence should be viewed as an opportunity to create more value out of commercial real
estate developments
- Maximum 4% of the total site is allowed for Commercial use with175% FAR,
- Maximum 2% of the total site is allowed for Recreational use with FAR of 150%,
- Maximum 10% of the total site is allowed for group housing with FAR 175 for the workers employed
within the Campus,
- The balance FAR of commercial, recreational and group housing to be used for the Technology
related activities.
Opportunities available for real estate developments in retail, recreational and residential segments can be
exploited to their maximum limits as market for all these segments exists at Manesar.
• The owner of the building is responsible for quality and reliable maintenance of the office space. CAM charges
are based on actuals in each case with at least a 20% premium.
• Aesthetic appeal of the Architectural design of the building, higher efficiency of the design in terms of space
usage, energy conservation and human and environmental safety are all very important features and only add
to the value of the office space as commercial real estate market is sensitive to all the issues that these
features help negotiate.
19. Individual employee module size (sq ft) on an average 31 sq ft is the individual employee module
31 size
20. The number of times company's office was on an average companies have changed office space
changed in the last ten years? twice in the last ten years due to exponential growth rates
2 in the IT sector
21. Would you prefer locating your office at 75% of the companies companies surveyed are
Manesar? interested in taking up office spaces at Manesar due to:
state-of- the-art infrastructre coming up, good
connectivity, proposed residential blocks, government
75.0%
support and tax sops. However they are reluctant on
travel time, distance of Manesar from Gurgaon and
absence of any current neighboring development and
competition from IT-SEZs
22. Are you satisfied with your current location(s) 40% of the companies surveyed are not satisfied with
their current locations and are willing to or looking for
60.0% alternative office locations
• Short and Medium sized companies in the IT/ITes industry outgrow office spaces at faster rates and
on an average have changed office spaces twice in the last ten years.
• This along with the factors mentioned above as absence of retail/recreational space, lack of ample
parking space, poor infrastructure and connectivity, low quality maintenance are among the reasons
contributing to the trend, which tends to grow the gap between the requirements of an IT/ITes
company from an office space and availability of these amenities, facilities, features and
characteristics of the office space.
• Exports from the functioning SEZs pan India during the last three years are as under:
The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including
foreign investment include:-
• Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ
units.
• 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act
for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5
years.
• Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
• External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity
restriction through recognized banking channels.
• Exemption from Central Sales Tax.
• Exemption from Service Tax.
• Single window clearance for Central and State level approvals.
• Exemption from State sales tax and other levies as extended by the respective State Governments.
There are various tax provisions under the Income Tax Act 1961 on the income from export of software:
a) Income Tax Act U/S 10A: provides for special provision in respect of newly established undertakings in Free
Trade Zones ("FTZs") etc. Under this section, profits and gains derived from the export of articles or things or
computer software by an undertaking set up in any of the Free Trade Zone, Software Technology Park areas
(STP) and electronic hardware technology park ("EHTP") areas are fully exempt for a period till 31st March
2010.
b) Income Tax Act U/S 10B: special provision in respect of newly established hundred percent export oriented
undertakings (EOU). Under this section, profits and gains derived from the export of articles or things or
computer software by a hundred percent export oriented undertakings (EOU) are fully exempt for a period till
31st March 2010.
c) Section 35 of the Income Tax Act provides for tax deduction of any expenditure incurred on scientific
research. Any expenditure laid out on scientific research related to the business of a taxpayer is allowed as a
deduction while computing taxable income.
Sub-section (2AB) of section 35 of the Income Tax Act provides for a deduction of 125% of any expenditure
incurred by a company engaged in the business of manufacture or production of any drugs, pharmaceuticals,
electronic equipments, computers, telecom equipments, chemicals or any other notified article, on scientific
research (not towards cost of land or building) on in-house research and development facility as approved by the
prescribed authority.
d) Section 80 HHE of the INCOME Tax Act: deals with the deduction in respect of profits from export of
computer software, etc.
(i) export out of India of computer software or its transmission from India to a place outside India by any means;
(ii) providing technical services outside India in connection with the development or production of computer
software;
(iii) The profits derived from his business would be deductible from its taxable income .The extent of the
deduction shall be an amount equal to 80% for assessment year beginning on 1st April 2001, 60% for 2002, 40%
for 2003, 20% for 2004 and then no deduction will be allowed there after.
This deduction will be available provided the consideration in respect of the export of computer software is
received in, or brought into India in convertible foreign exchange within a period of six months from the end of
that financial year. This benefit is available only to Indian companies or Indian residents. This benefit is also
available to supporting software developer selling computer software to exporting company.
U/S 10 A
(iv) "electronic hardware technology park" means any park set up in accordance with the Electronic Hardware
Technology Park (EHTP) Scheme notified by the Government of India in the Ministry of Commerce;
(v) "Software Technology Park" means any park set up in accordance with The Software Technology Park
Scheme notified by the Government of India in the Ministry of Commerce.
Outlook:
The said project is currently under STPI norms, benefits of which are expected to expire on 31 March, 2010. Also,
a great supply of notified SEZs is proposed to come up in the adjoining area, which will act as a direct competition
to the site. However, as IT/ITes sector contributes a great proportion to the national GDP, we are hopeful that the
government will take some pro-active steps for refining he above said benefits.
Consultancy Services – Knight Frank 53
Final Report for A.. buildwell Pvt. Ltd.
Per Knight Frank analysis of the IT/ITes space demand and supply in the Gurgaon Market, the selling phasing of
the said project is estimated as:
Market Phasing
120%
100%
Percentage
80%
60%
40%
20%
0%
2008 2009 2010 2011 2012 2013 2014 2015
Years
A. N. Buildwell Pvt. Ltd. has provided us the construction phasing of the project as below:
Construction Phasing
150%
Percentage
100%
50%
0%
2008 2009 2010 2011 2012 2013 2014 2015
Years
Office Residential
Commercial Technological activities
Land Development Landscaping