The Hindu Business Line : Muthoot Technopolis: A model that clicks

A project wherein the private sector set up IT infrastructure in a Government-operated Special Economic Zone could be a trendsetter, say the developers.

C. J. Punnathara

A novel experiment at setting up IT infrastructure by the private sector in a Government-operated Special Economic Zone has proved to be a resounding success.

“Within six to seven months of completing the project, all the 3.5 lakh sq.ft area at the Muthoot Technopolis found occupancy. But what is even more heartening about the whole project is that clients who had already occupied space are clamouring for more,” Mr George Muthoot, Managing Director of Muthoot Pappachan Group, says.

The uniqueness of the project lies in the fact that it came up in the government-run multi-speciality Cochin Special Economic Zone and was the first of its kind in a government-run SEZ, he adds. The project, started in 2004, was completed in 20 months. Muthoot Technopolis today houses some of the country’s top IT majors, such as Cognizant, Sutherland and Wipro. The availability of state-of-the-art facility was a major draw for Sutherland and Cognizant to make their maiden foray into Kerala, according to Mr Muthoot.

There are tremendous advantages to setting up such infrastructure in a SEZ — the cost of construction dips by 20-30 per cent on account of the reduced taxes on common building materials such as cement and steel. And the company has passed on these cost advantage to the clients, Mr Muthoot says. Sadly, constraint of space is already blocking expansion possibilities at CEPZ.

Advantage clients

The advantages to clients arise from other avenues as well. “With around 80 engineering colleges in and around Kochi, the city is indeed a rich reservoir of entry-level talent. While the availability of mid-level and high-level talent continues to pose a challenge, we see a growing number of Keralites increasingly keen to return to the State and settle down in a fast-growing city like Kochi, which is highly cosmopolitan, well-connected nationally and internationally, and offers a great standard of living. The attrition rate here is low. In addition, by virtue of Kochi being a landing point in India for the submarine cable, connectivity is good and is a major marketing advantage for IT companies operating out of here,” Mr T.P. Vincent, Assistant Vice-President and Head of Kochi Operations of Cognizant, says.

Tapping into places offering a good talent pool and creating opportunities for broad-based and diversified growth have always been an important part of Cognizant’s growth strategy, say company sources. Because of its educational infrastructure, the availability of skilled resources, and favourable real-estate options, Kochi has become an ideal destination for IT companies looking to enhance their return on investment.

More importantly, “expanding our presence across smaller towns helps us become more inclusive and take the benefits of our growth to more people,” the sources said.

Mr Vincent adds, “We are happy with our experience in Kochi.” The response time from government officials and the support offered by the Cochin Special Economic Process Zone (CSEZ) authorities have been a big support, he says.

Muthoot Technopolis offers the best of plug-and-play facilities and a secure environment. Such infrastructural and location advantages have prompted majors such as Larsen and Toubro to set up similar facilities in Kochi, he says.

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