The Hindu Business Line : Khivraj Tech's incubation space venture pays

Khivraj Tech Park Pvt Ltd, which owns the Olympia Technology Park, an information technology park in Chennai, has capitalised on the rising demand for incubation space.

Mr Ramesh Nair, Local Director, Jong Lang LaSalle, international property management consultants, said nowadays, most large Request for Proposals (RFP) for IT space requirements insist on incubation space.

Two key requirements of IT and BPO companies are flexibility and scalability. Both these are served well with the help of incubation space, he said.

Mr Ajit Kumar Chordia, Managing Director, Khivraj Tech Park Pvt Ltd, said offering incubation space to prospective clients was a calculated risk he had taken while marketing the space in the Olympia Technology Park.

The Rs 240-crore Olympia Technology Park is located in Guindy on 8.4 acres. The work on the project, which is in three phases covering million sq ft, started in 2004 and is nearing completion, Mr Chordia said.

He said he offered clients space from where they could start their operations in Chennai. Most IT companies start small and then ramp up, as their project takes off, he said.

In a typical situation a company would lease incubation space for about 10 months for 500 seats and then go up to 2,000 seats in a year's time when the full-fledged office space is ready.

Mr Chordia said he had invested Rs 16 crore to lease and fit out four incubation centres in the city. The first centre in T. Nagar, which was 42,000 sq ft, cost Rs 33 per sq ft. Mr Chordia said he was able to rent it to an international telecom company at Rs 70 per sq ft.

Mr Chordia said the incubation space venture was a money-spinner, which has resulted in tying up the clients for the project as well as developing the second and third phase.

The company plans to set up two more IT parks, one in Pallavaram and other on the Old Mahabalipuram Road. The environment impact assessment is being done by Ernst & Young. In the next project, he plans to put up a Kirby - a temporary metal building in one acre for incubation space.

More Stories on : Infrastructure | Real Estate & Construction | Tamil Nadu

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
FLAG asks Govt to help lower access charges

TRAI calls industry meet on 3G

Smart City: Panel to decide land value

Khivraj Tech's incubation space venture pays

Satyam to hike authorised capital to Rs 160 cr

Ybrant Tech opens Hyderabad office

IOL in pact with MTNL

Maples ESM to train Japanese engineers

MTNL-Aksh Opticfibre in tie-up for IPTV

Workshop on embedded systems

IT, BPO firms rush for ISO-27001 certification

NeST Group charts expansion plans