REFLECTIVE OF THE TIMES: Glass, chrome and concrete structures provide a new look to the Guindy Industrial Estate, as more IT and ITES companies enter the area. — PHOTO: R. SHIVAJI RAO

CHENNAI : The Guindy Industrial Estate is a study in contrasts. New glass and chrome structures housing Information Technology and Information Technology Enabled Services companies co-exist with shabby sheds and rundown buildings housing small and medium enterprises.

Unit holders and promoters, however, say that construction tops the list of activities inside the oldest industrial estate in the country. Many small and medium entrepreneurs have sold off their property or come together to jointly develop land along with promoters of IT parks.

According to the secretary of The Industrial Estate Manufacturers' Association, G.K. Basha, there has been a spurt in construction of the glass and chrome buildings in the last year. The promise of easy returns and hard cash on a regular basis is turning most of the unit holders into landlords.

"There are already close to eight big projects starting with the Olympia Park constructions. Now many of the unit holders with less than one ground are coming together to start construction," says Mr. Basha.

The benefits of this coming together, according to industry insiders, are immediate. The price of property has already gone up, particularly along the main roads. To top it, joint development projects allow the unit holder to become part owner of the finished product — solid built up area — that comes with a monthly rent. The promoter buys half of the land by paying 10 months rent in advance.

According to R. Ravi of the RR Group of promoters, the rate per square foot is anywhere between Rs. 50 to 75. If you own an acre, the built up area that you eventually own would come close to 2 lakh square feet. The money advance comes in handy to clear the debts. There is also the promise of a hefty monthly rent later.

Says Mr. Basha about the increasing demand: "IT and ITES sector prefer Guindy as it is in the middle of the city and quite close to the airport. Besides we already have the basic infrastructure in place and it just needs to be improved," referring to the pot-holed roads and open drains. He says the manufacturing units that are making way for the IT parks would shift to estates in Tirumudivakkam, Tirumazhisai, Maraimalai Nagar, Gummidipoondi and even as far as Andhra Pradesh. "It does not make sense to run an engineering unit inside the city where the land prices have gone up. Outside Chennai, we can get land cheap while getting a better return from these joint ventures."

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