The demand for IT office space in the city will rise many fold even as the city is tapping higher order opportunities in the field of Information Technology. This will lead to a demand in the residential as well as retail commercial space. While there will be many developers looking to take up Grade A office space projects, Phoenix Group will take up multiple projects around the city, Srikanth Badiga, director, Phoenix Group, tells B Krishna Mohan. Excerpts:
Our main domain is infra SEZs. We were the first one here to do get the SEZ status for our projects. We have so far done 4.5 million sft SEZ space. This apart, we have also done another 2.3 million sft regular commercial and residential space.
We have plans to take up about six to eight office projects in a mix of SEZs and non-SEZ units in the next four to five years. The proposed projects will be Gachibowli, Nanakramguda and Papulguda. All this will be grade A IT office space. These are likely to see an investment of about Rs 3,000 crore. We have a small land bank but most of our projects are in a joint development model.
Demand for space
We have 30 plus clients including Genpact, HCL, Cognizant, Capegemini and others. We have confirmed repeat orders from several players. This apart, we also have a confirmed order from one company for an exclusive campus. Our new projects will mean creation of about 20-25 million sft implying a direct employment generation of an additional 2 lakh to 2.5 people in IT and allied sectors. In addition, indirect employment will be at least six fold. Not just us, many developers are bullish on Hyderabad. This will also boost the residential demand in the following 18-24 months.
Not just BPO
The city has evolved from just being a BPO hub to doing advanced computing. Internet of Things, data analytics are the current flavor. Availability of talent, lower cost of living, presence of good infra will attract more companies to the city.
Rentals in Hyderabad are stable. Members of the builder and developer communities complement each other-there is no predatory pricing, which is not good for the industry. The pricing is based on the quality of materials used and demand supply equations. There will be retail boom as well. Hyderabad is expanding and will see all major developers looking to do a big project or two. The State’s Industrial Policy is great enabler as it looks to take industries to new areas. This will be positive for the construction and housing industries. The State Government policies are designed in such way that they complement the Central policies. They will fetch the results. The State planning a dry port will be a big boost for the industry here and will boost logistics segment.
We will look at mining and power in the private sector. We are already present in the automobile distribution through our Phoenix Motors. We have been among the best ranked dealers by Hero Motors in terms of sales. We now have plans to get into bike assembly. . These bikes will have high engine capacity of around 500 cc. We are now in talks with one US-based company. The plant location is yet to be decided but it could be around Hyderabad. This will boost the manufacturing segment here and will boost employment generation.
Giving back to society
We are maintaining a model crematorium at Shaikpet. This is neat, clean and has facilities including lockers. The charges levied here are nominal. Trained people, complete with uniform, are employed here. Similar are in the offing at Gajwel, Siddipet, Panjagutta in the city and other places. The plan is to replicate this across 4,000 crematoria in a PPP mode. We are now identified by the Ministry of Urban Development as a consultancy for crematoria. We have also set up the Phoenix Arena, a platform for cultural events and to support artistes. It has so far hosted more than 300 events.