Emergent Nagpur

FOR RELEASE DURING THE NAGPUR CALLING CONFERENCE, NAGPUR – FEB 2012

Emergent Nagpur
White paper on showcasing Nagpur as an IT/ITES
Destination
A report instituted by

Partner in Nagpur City’s Development

Prepared by

A Report on Nagpur as an IT/ITES Destination

Whitepaper

Contents
Foreword ............................................................................................................................................................... 4
City Introduction .................................................................................................................................................... 5
Quick Facts on Broad Nagpur demographics.............................................................................................................6
Nagpur on radar of experts .......................................................................................................................................7
Attractiveness for IT/ ITES Companies .......................................................................................................................8
IT-ITES Industry Profile........................................................................................................................................... 9
Macro IT landscape ....................................................................................................................................................9
Distribution of Exports by year and by business models ............................................................................................................................... 10

Distribution of companies by age and front office locations ......................................................................................................................... 11

Functional Areas of companies...................................................................................................................................................................... 12

Technical competencies of companies .......................................................................................................................................................... 13

Top Performing companies at Nagpur – export oriented .............................................................................................................................. 14

Visible Inorganic growth ................................................................................................................................................................................ 15

Talent Profile ...........................................................................................................................................................16
Working professionals ................................................................................................................................................................................... 16

Fresh Talent ................................................................................................................................................................................................... 17

Talent in Engineering programs .................................................................................................................................................................... 17

IT /ITES Industry Support system .............................................................................................................................18
Typical IT / ITES industry setups .................................................................................................................................................................... 19

Benefits of operating in MIHAN SEZ ............................................................................................................................................................. 20

Infrastructure ...................................................................................................................................................... 21
Commercial Office Space .........................................................................................................................................21
National & International Connectivity .....................................................................................................................21
Utilities .....................................................................................................................................................................22
Power Supply................................................................................................................................................................................................. 22

Water Supply ................................................................................................................................................................................................. 22

Telecom Infrastructure .................................................................................................................................................................................. 22

Local Governance - NMC ............................................................................................................................................................................... 22

Major Industrial & Commercial Hubs ......................................................................................................................23

Emergent Nagpur: An IT/ITES Destination Page 2 of 38

© 2012 pManifold and/or its affiliates. All rights reserved. Whitepaper instituted by Spanco for release at Nagpur Calling 2012 – IT Conference.

Whitepaper

Risks .................................................................................................................................................................... 24
Quality of Life ...................................................................................................................................................... 25
Availability of Hotels ...................................................................................................................................................................................... 25

Residential Accommodation .......................................................................................................................................................................... 25

Cost of Living ................................................................................................................................................................................................. 26

Local Transportation ...................................................................................................................................................................................... 26

Crime Rate ..................................................................................................................................................................................................... 26

Pollution Levels ............................................................................................................................................................................................. 27

Entertainment ............................................................................................................................................................................................... 27

Local IT business leader Survey results: Nagpur as an IT Destination? ................................................................. 28
Doing business............................................................................................................................................................................................... 29

Impact on making sales ................................................................................................................................................................................. 30

Attrition and talent inflow ............................................................................................................................................................................. 31

Important Websites ............................................................................................................................................ 32
About Spanco – Partner in Nagpur’s Development .............................................................................................. 33
About Nagpur Calling Conference 2012 ............................................................................................................... 36



Whitepaper

FOREWORD
According to NASSCOM, the IT / ITES industry is growing at a
healthy rate, and to meet expansion objective, companies
must setup facilities in Tier 2 / 3 regions and take advantage
of untapped local talent and significant cost arbitrage when
compared to Tier 1 cities .

Nagpur, the geographical centre of India and the second
capital of Maharashtra state, is one such region in India which
has a considerable potential to grow, prosper and contribute
to the growth of the nation. Developed infrastructure, first-in-
the-nation initiatives for privatization and public private
partnerships in the utilities sector, sizable supply of skilled
human resources, clean and green environment, short
commute times, weekend getaways, enriching and balanced
lifestyle and a growing IT /ITES activity makes Nagpur an
emerging IT destination.

The one-day Nagpur Calling IT /ITES conference - a joint
initiative by VED, NASSCOM, VASE and MADC – intends to
enable companies to explore business opportunities at
Nagpur. With strong regional know how of servicing over 4 lac
customers in the industrial, commercial and residential space
and continuing its efforts as a partner in Nagpur City’s
development, Spanco has instituted this report so as to
support IT/ITES business leaders with information and insights
which will be useful in decision making on the prospect of
setting up base at Nagpur.

The report contains insights on the Nagpur city, the
infrastructure available, the profile of the local IT industry and
talent, quality of life, opinions of local IT business leaders and
more.

Kaustubh Dhavse

SVP – Strategy, Spanco Ltd.



Whitepaper

CITY INTRODUCTION
Nagpur is centrally
located, with two national
highways going through it
and over 500 flights flying
over it every day.

Nagpur is at the geographical center of India, is the 13th
largest city in India and third largest city in the State of
Maharashtra after Mumbai and Pune.

Largest city in a 500 km radius.

industrial, commercial and
Nagpur is a major
transportation center in Central India region.

‘Second capital’ and ‘winter capital’ of the state of
Maharashtra

The city has the busiest Air Traffic Controller (ATC) with over
1
500 national and international flights passing over it every day.

It is known as ‘Orange City’ due to the production of Mandarin
oranges in the region

Almost 47 per cent of Maharashtra state power is
generated in and around Nagpur

Home to one of Asia’s largest industrial Estates, Butibori
(approx 6000 ha).

.

1
http://articles.timesofindia.indiatimes.com/2008-12-17/nagpur/27916662_1_nagpur-airport-airport-director-landing



Whitepaper

QUICK FACTS ON BROAD NAGPUR DEMOGRAPHICS

Geographic Location Central India (with zero mile marker); Flying distance
from Mumbai 1 hr 15 min

Time Zone GMT + 5:30 hrs

Area 218 sq. km.

Population (Density) 2,405,421 (11,101/sq.km)
Census 2011
2
Literacy rate  93.13% - Overall
Census 2011  96.16% - Male
 89.99% - Female

Languages  Marathi
 Hindi
 English

Weather Conditions  Extreme weather with 3 main seasons – Summer,
Monsoon and Winter
 Avg. temp: Max 46 °C; Min 10 °C
 Avg. rainfall: 124.2cm

Ranking  Fastest growing richest cities in India
 Amongst the top 3 Green cities in India

Stability  Political: No significant riots
 Environmental: Almost zero probability of
earthquake, volcano and flood; Moderate to severe
drought prone classification
 Social: Amongst lowest and further decreasing
3
criminal rate, 68% reduction in last 5 yrs.

Major Industries  Textiles, Coal mining, Transportation, Steel &
Logistics

2
Census 2011 - http://www.census2011.co.in/census/city/353-nagpur.html
3
Nagpur Police - http://nagpurpolice.info/crime_in_nagpur



Whitepaper

NAGPUR ON RADAR OF EXPERTS

4 5
McKinsey Institute of Competitiveness
2011

 Nagpur has been identified as one of  Nagpur Rank 13 in Overall ranking of
the 12 global cities which are 100 cities in terms of their
representative of the largest competitiveness in India.
'middleweight' cities to be ranked in
the top 20 GDP for its respective
country or region.

6
PWC
2010

• India Top 100 IT Companies – 3 companies from Nagpur
• Persistent ranked 5, Micropro ranked 76 & Excellon ranked 88
• List based on Revenue for the year 2009

7 8
KPMG NASSCOM
Earlier

• 31 Emerging Global Destinations • Nagpur identified `Challenger’ to
• 3 cities of India. Nagpur among them `Leaders’ like ‘Bangalore’
• Nagpur – Educational Hub; Lower • Mentions Nagpur as - Location with
crime rate, Pollution & cost of living competitive labor, infrastructure and
• Nagpur – Lower Attrition Levels enriching living environment.

9 10
Jones Lang LaSalle Knight Frank

• Nagpur among Top 5 Tier III cities. • 15 Growth Centers in India assessed
• Nagpur and Kolkata - Only tier 3 cities • Nagpur is #1 - People and
with comparable supply of manpower Infrastructure.
to Pune. • Nagpur #3 – Business Environment
• Cost of Manpower 15-20% less than • Overall rank – #2
Kolkata and Pune.

4
McKinsey Global Institute (MGI) report - Urban world: Mapping the economic power of cities - 2011
5
Institute of Competitiveness 2011, http://competitiveness.in/wp-content/uploads/2012/01/CCR-2011-Business-World.pdf
6
PWC – Global Software Top 100, Dec 2010
7
KPMG: Exploring Global Frontiers – New Emerging Destinations, Feb 2009
8
NASSCOM: Location Roadmap for IT-BPO Growth in India, 2008
9
Jones Lang LaSalle: India -Next IT Off shoring Locations -Tier 3 cities, Q1, 2007
10
Knight Frank: Emerging Growth Centres, India, Q1 2007



Whitepaper

ATTRACTIVENESS FOR IT/ ITES COMPANIES
Challenge Partial Gap On-Track

Elements Dimensions Score11 Description/Rationale

1 Location
Attractiveness
Cost of real estate  Lower than most tier 1 and tier 2 cities.

Occurrence of  Low risk of both droughts as well as floods.
natural calamities  Seismic zone 2.
 Very low crime rates, both in terms of overall crime
and crime against women

Cost of Operations  The city offers lower cost of operations compared to
Tier 1 and tier 2 cities

2 Hard and
Soft
Fresh talent
availability


Nagpur is an educational hub
Fresh talent is available in abundance with a number of
Infrastructure engineering schools around Nagpur and talent flows
from central India region.

Availability of  Potentially better or wider opportunities available in
Lateral Talent cities like Pune, Hyderabad and other metro locations
attract experienced talent
 Most companies believe they have difficulty in
attracting mid-management level talent.

Infrastructural  STPI & MIHAN have incubation facilities. New IT Parks
facilities coming up.
 Top class Internet connectivity from multiple ISPs is
available
 High reliability Power supply zone (Zero Load Shedding)
 Excellent internal infrastructure in terms of road
networks; this results in reduced traffic congestion

3 Access to
markets
Infrastructure to
reach markets
 Limited industry events locally to tap into global or
domestic market
 Limited direct flights to destinations abroad

4 Investments International and
national
 Boeing has set up a USD 185 millions Manufacturing,
Repair and Overhaul (MRO) center.
investment  TCS and Infosys have recently confirmed their plans to
invest in MIHAN
 Maruti’s second stockyard after Bangalore is
12
announced for Nagpur.
 Entry of major real estate players including Godrej
13
Properties etc.

11
Nagpur score evaluated for local IT Businesses from various qualitative sources (pManifold analysis)
12
http://www.moneycontrol.com/news/business/maruti-suzuki-to-setstockyard-facilitynagpur_661562.html, 2012
13
http://www.moneycontrol.com/news/business/godrej-properties-enter-nagpur-for-housing-project_592736.html



Whitepaper

IT-ITES INDUSTRY PROFILE
MACRO IT LANDSCAPE 14

No. of IT companies  160+ (secondary research) including
companies serving domestic markets
 84+ registered w/ STPI (w/ 46 actively
reporting) serving export market

No. of IT Parks 5 devoted IT parks:
 MIDC IT Park @ Parsodi
 MIDC IT Park @ Sadar
 Lambent IT Park @ Besa (private)
 MIHAN
 SP Infocity SEZ @ MIHAN (ready for use)

Total Export Rs. 14, 418.14 lac. (USD 29.23 million)
(2010-11)

Approx. employment 3500+ (only for export oriented companies)
 15% year-on growth
 8% attrition
 Avg. 3-5 yrs. Experience

No. of big M&As in last Two major
2 years

14
pManifold research showing approximate values



Whitepaper

DISTRIBUTION OF EXPORTS BY YEAR AND BY BUSINESS MODELS

Strong Software
Export sales from STPI registered active Companies
Exports higher than
National average 20,000.00
with higher risk 49.69%
mitigation from Recession 6.82%
15,000.00

Export in INR (Lacs)
recession – IT
-15.31%
Services dominates
over Products in 10,000.00

both Export and
Domestic markets 5,000.00

-
FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11

 The YOY growth for FY08-09 was 49.69% against National IT growth of
26.84%.
 Exports have improved over the last year.

Distribution of Exports by Business Models

Software
ITES/BPO & Other
Development Product based : 22.67%
76.32% 0.41%

Other
23.27%

Embedded
Software
0.60%

• Mostly Services companies dominate over the Product companies
primarily due to export market
• The Product companies are significant in the domestic market including
Location Guru, Excellon etc.



Whitepaper

DISTRIBUTION OF COMPANIES BY AGE AND FRONT OFFICE LOCATIONS

Matured industry • A significantly large number of local companies are older than 5 years
• A good number of fresh startups are mushrooming around the matured
with wide global companies primarily in the product space
presence and
clientele

Front Office Locations (other than Nagpur)

16%

11%

74%

USA Europe Others (Australia, Japan, etc)

• Most companies serving the export market have office locations outside
India
• Over two-third companies have offices in the USA



Whitepaper

FUNCTIONAL AREAS OF COMPANIES

Heterogeneous
Functional areas served
Landscape with
service coverage
in Niche areas Web Development & Maintenance 46%

for both Export Technology Consulting 15%

and Domestic Technology Consulting 12%

Markets Technology Architecture 12%
Systems Integration 8%
SAP 8%
Product Development & Maintenance 46%
Other 19%
NetworkingSolutions 8%
Mobile Computing 27%
Location based services 4%
IT Support 27%
IT Strategy & Transformation 4%
Internet Marketing /SEO/ SEM 8%
GIS 8%
Game Development 4%
ERP / Business Management Software 38%
Electronic Data Interchange 15%
Data Transcription 4%
Data Mining 8%
Business Intelligence 12%
Application Development & Maintenance 58%
Animation 4%

The sum is not equal to 100% as many companies work in more than 1 area of specialization. This is an
indicative view constructed using a representative sample of the local IT companies



Whitepaper

TECHNICAL COMPETENCIES OF COMPANIES

Strong Domain Technology Areas served
Knowledge
across Web Based - PHP 35%

Web Based - JSP 31%
Technology
Web Based - HTML 27%
areas Web Based - ASPX 38%

Waterfall Project Management 12%

Other 73%

Oracle 27%

Mobile - Windows 19%

Mobile - Symbian Java 15%

Mobile - Symbian C++ 4%

Mobile - Symbian 8%

Mobile - iPhone 15%

Mobile - Blackberry 27%

Mobile - Android 19%

Mac 12%

Linux 23%

Internet Rich Applications - JFX 12%

Internet Rich Applications - SilverLight 12%

Internet Rich Applications - Flex 15%

IBM Technologies 8%

HP technologies 4%

Enterprise/Server - .Net 46%

Ent./Server-Obj. C++ 8%

Ent./Server - C++ 23%

Database - SQL Server 46%

Database - MySQL 42%

Cloud Computing 38%

Agile Project & Product Management 46%

The sum is not equal to 100% as many companies work in more than 1 area of technology. This is an indicative
constructed using a representative sample of the local IT companies



Whitepaper

TOP PERFORMING COMPANIES AT NAGPUR – EXPORT ORIENTED

Established Company Key Products/ Services Primary Business Models
Excellence and Persistent Software Development IT Outsourcing
Global Delivery
Model - Top GlobalLogic Mobile Computing IT Outsourcing
Exporters in
FY2009-2011 Infocepts Business Intelligence IT Outsourcing

Easypack ITeS/Software Development IT / ITES Outsourcing

Zeon Software Development IT Outsourcing

Cbay Systems Medical Transcription IT Enabled Services

Zeta Softech LPO, BPO IT Enabled Services

Ascent Medical Transcription IT Enabled Services

RF Arrays Hi-Tech, RFID IT Outsourcing

Multiple innovative startups are mushrooming in the software product /
platform space like Officebox and LocationGuru.



Whitepaper

VISIBLE INORGANIC GROWTH

M&A’s in the recent Recent Acquisitions

years indicate that
Nagpur based •Persistent, a 5400+ strong global company,
companies grow Feb 2011 acquisition of Infospectrum
Headquartered at Nagpur
into best in class
companies and
become acquisition •Ebix, USA (Fortune 500 company) indirect
acquisition of Premier Technology Group
targets for global Oct 2009 at Nagpur through acquisition of EZ Data in
corporations. USA

•Cbay System, a UK based health services
BPO, acquisition of Suyash Software - a
Nov 2007 local medical transcription company
among top 10 exporters

•Induslogic, USA. now Globallogic a 4000+
Apr 2006 people strong company, acquisition of
Lambent Technologies of Nagpur

Key leverage points gained by acquisition of local companies
 Cost advantage
 Maintaining competitive advantage especially for talent acquisition
 Expand to new markets by acquisition of customer base and Brand build-
up & Brand build-up



Whitepaper

TALENT PROFILE
WORKING PROFESSIONALS

IT professionals
Local IT Workforce – Export Oriented Units (registered with STPI)
employed by local
industry are growing 3500
3320
3135
2523

FY2007-'08 FY2008-'09 FY2009-'10 FY2010-'11

• Avg. 3-5 years experienced talent
• Industry attrition lower at 8%
• Limited access to lateral talent because of still smaller industry size
• Recession caused companies to slow down on hiring during 2009-
2010.

IT Professionals employed by Domestic units

• Apart from export oriented units, a significant number of
workforce is employed in the domestic IT/ITES units.
• An estimated number of 2000 are employed in the domestic units



Whitepaper

FRESH TALENT

Availability of fresh talent Engineers
 40+ active Engineering Colleges (2012) with approx 12,000
is abundant, global students graduating every year
recruiters hire from  Significantly large number of students are from IT & Computer
Engineering degree
Nagpur
Postgraduates & Polytechnics
 Nagpur has 44 PG & has around 7 Polytechnic Institutes (2010)

General
 Around 27 colleges of Arts & Commerce which can be potential tap
for BPO services (Nagpur has a neutral English accent), churning
out 10,000+ graduates every year

Multi-Nationals are recruiting

• Major IT recruiters have visited the campuses in Nagpur to recruit
mostly Engineers & Management graduates
• Maximum salary for an engineer graduate was Rs.10.5 Lac per
annum and average salary being 3.5 Lac per annum*
• Top recruiters visiting Nagpur include Oracle, Microsoft, Infosys,
HCL, Accenture, Cognizant, HSBC, Cybage, IBM, JP Morgan, and
Mphasis. Neilsoft, Wipro, Patni, Sapient, Satyam, Capgemini, Tata,
Tech Mahindra, Zensar, Cummins, Nvidia etc.

TALENT IN ENGINEERING PROGRAMS 15

A large pool of BE / BTech Degree Programs Intake

engineering students Chemical and related courses 252
from variety of Electronics / Electrical courses 6540

courses graduates Computers & IT courses 4590
Civil Engineering courses 1800
every year.
Mechanical Engineering 3060
Others 5040
Grand Total 16422

15
pManifold Analysis, Directorate of Technical Education Website



Whitepaper

IT /ITES INDUSTRY SUPPORT SYSTEM
IT / ITES Industry
Nagpur has a Support System at Nagpur

developed and Software Technology Parks of India (STPI)

IT Parks
evolving Support  Est. 1991
System – IT Parks, 1  Incubation blocks at Parsodi (1500 sq ft each), 30 terminals per
block. 1 Incubation block at Sadar with 12 terminals
emerging SEZ, various  Quick statutory clearances, quality infrastructure and Leased
Industrial line connectivity
Associations, Private Software Parks
Technology User  Occupied: Lambent IT Park at Besa (occupied by GlobalLogic)
groups etc which  Ready: Shapoorji Pallonji Infocity at MIHAN (one phase)
 Upcoming: L&T IT Park & Empress City Mall IT Park, Nagpur
makes things easier  Announced: Mantri Group’s IT Park & DLF IT Park
for companies and IT
professionals MIHAN
SEZ

 Emerging business hub spread over 3454 hectares with state
employed locally. of the art infrastructure, facilities and services
 Claimed uninterrupted power supply, internet connectivity
and water supply
 Caliber Point and Ebix are already 2 operating cos. from
MIHAN. Majors like TCS, GE, Microsoft, L&T, Patni and others
are holding land, but move is awaited pending negotiations.
 TCS & Infosys have recently announced their commitment.

Vidarbha Association of Software Exporters (VASE)
Associations

 Established 1995; 50+ Members
 Sharing best practices, offering solutions & bringing
professionals together in IT industry
 Seminar ‘Opportunity Nagpur’ and Destination Nagpur ‘
showcasing Nagpur IT jointly with Nasscom & VED
 Networking dinners, sports, cultural events, social causes.

Vidarbha Computer & Media Dealers Welfare Association (VCMDWA)
 Established. 1991; 100+ Members
 Restricts unfair trade practices, creates awareness on
products, services and practices in IT
 2nd best association in India as per DQ-ITC survey 2010.
‘Compex’ – Megaevent held every year in January since around
20 years
Technology User Groups
User Groups

 A number of user or developer groups Linux User Group, Java
User Group, Microsoft User Group, Open Source Groups
including Joomla, Drupal, Netbeans.



Whitepaper

TYPICAL IT / ITES INDUSTRY SETUPS

Almost all export
oriented companies
are registered with
Most home grown local companies have started using STPI
STPI incubation and moved out into their own facilities
16

Most large companies
have their own
building infrastructure
either in the STPI IT Located 12km away from the city. Currently hosting a few
17
Parks or their own companies. Key challenges include transport.
land.

Ready office space is
available in new IT
Parks. Located in MIHAN, it offers all the benefits of operating in a SEZ.
SP INFOCITY Nagpur is a notified SEZ of 100 acres. The total
planned development in this project is approximately 7.7 Million
square feet that will be spread across 24 buildings.

Currently, one building (Building A1) and an incubation centre
are ready for leasing and comprise a total area of approximately
18
2.5 Lac square feet.

Custom built
Quite some companies occupy privately owned, custom built
space. Also, some of the real estate developers are able to
provide managed office space. Regus office spaces are also now
available at Nagpur

16
http://www.mumbai.stpi.in/nagmemlist.asp
17
http://www.madcindia.org/mihan.htm
18
http://growit.in/nagpur-city/interviews/293-rajeev-shete-on-shapoorji-pallonji-infocity-at-mihan-in-nagpur.html



Whitepaper

BENEFITS OF OPERATING IN MIHAN SEZ 19

Operating in an SEZ In terms of income tax benefits, SEZ unit lessees can avail of

INCOME TAX BENEFITS
benefits in the following manner:
offers benefits over  1st 5 Years: 100% Exemption
operating in non-SEZ  Next 5 Years: 50% Exemption
areas.  Next 5 Years: 50% Exemption on ploughed back
profits

However, if Letter of Approval (LOA) for establishing a unit in
SEZ is obtained after 31st March, 2014, then income tax
benefits will be investment linked (i.e. income tax exemption
available only until capital investment incurred in setting up a
unit has been completely recovered).

Unit lessees in SEZs can avail of the following indirect tax
INDIRECT TAX BENEFITS

benefits:

Supplies from Domestic Tariff Area (DTA) to SEZ are treated as
exports and are eligible for export incentives
 Excise duty Exemption
 Customs duty Exemption
 CST exemption
 Service tax exemption/refund
 Electricity Duty Exemption (subject to developer
approval from State Electricity Board)
 100% exemption of VAT payable on purchase of
materials/supplies

The following indirect taxes are non-exempt and have to be
NON-EXCEMPT ITEMS

incurred by unit lessees in SEZs:
 Stamp Duty exemption currently not approved by
Govt. of Maharashtra; waiver expected shortly
 MAT of 18.5% of book profits payable from April 1,
2012
 Dividend Distribution Tax of 15% payable

19



Whitepaper

INFRASTRUCTURE
COMMERCIAL OFFICE SPACE
Commercial infrastructure at  Presence of Top Real estate Developers like KSL,
Kalpataru, Rustomjee, DLF, Peninsula, Shapoorji Pallonji
affordable rates is available Kumar Builders, Acme.
 Managed Office Space is available through a number of
local business centers including the global office space
giant Regus.
 Godrej Properties is among the recent entrants.

NATIONAL & INTERNATIONAL CONNECTIVITY
Central location and excellent  Nagpur is well connected by daily direct flights to all
operated by Air India, Jet Airways, JetLite, Kingfisher,
connectivity by air, rail and IndiGo, GoAir, SpiceJet. Air Arabia operates a tri-weekly
road to and fro flight between Nagpur and Sharjah.
 Nagpur's Air Traffic Control (ATC) is the busiest in India
20
with more than 500 aircrafts on domestic traffic from
north to south and east to west and international routes
such as Europe, Africa, South-East and East Asia passing
over Nagpur air space every day.

21
Nagpur Airport is termed as the safest airport in India
and hence is a prescribed location designated for all
emergency landings as well. This is because Nagpur
airport has both international and domestic terminals
along with the availability of excellent fire-fighting
equipment.
 All major train routes and Roads pass through the city
which is well connected to almost all the cities in the
country
 Nagpur is a major junction for roadways with National
and State Highways
 Presence of an International cargo base

20
http://articles.timesofindia.indiatimes.com/2008-12-17/nagpur/27916662_1_nagpur-airport-airport-director-landing
21
http://www.indianairports.com/php/showNews.php?newsid=555&linkid=17



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UTILITIES
POWER SUPPLY
High reliability Power supply  The city is a hub for power generation with excellent
power infrastructure
zone  SPANCO is operating the Power Distribution Franchisee
for Nagpur city – Gandhibagh, Civil lines and Mahal
division with a dedicated focus on distributing power
efficiently.
 Fewer outages as compared to other locations in
Maharashtra

WATER SUPPLY
As a one of a kind initiative,  Nagpur adjudged the `Best City' in 2009 under the
Jawaharlal Nehru National Urban Renewal Mission by
water supply utility has been union urban development ministry for its water supply
22
privatized and services and projects implemented under JNNURM
 The water supply to the city has touched a record 644
implementation of 24X7 million litres per day (MLD)
23

water supply is in progress

TELECOM INFRASTRUCTURE
Top class telecom & Internet  Telecom and broadband connectivity through multiple
independent service providers.
connectivity from all major  Operators like BSNL, Reliance, Airtel, Vodafone, TATA,
ISPs Tulip etc have strong and mature presence at Nagpur
offering high quality services at competitive rates
 3G services available

LOCAL GOVERNANCE - NMC
NMC is a recipient of national  Nagpur is administered by Nagpur Municipal Corporation
(NMC) which is democratically elected civic governing
`Best Environmental Initiative body.
award' and National Urban  Nagpur Improvement Trust (NIT) works with NMC and
carries out works like development of the civic
Water Development award infrastructure and new urban areas on behalf of NMC
for the water supply services
and projects24

22
articles.timesofindia.indiatimes.com/2009-12-04/nagpur/28074195_1_water-supply-shashikant-hastak-uninterrupted-water
23
http://articles.timesofindia.indiatimes.com/2011-12-29/nagpur/30568558_1_shashikant-hastak-water-supply-mld
24
http://www.indiaurbanportal.in/AboutUs.aspx?id=68



Whitepaper

MAJOR INDUSTRIAL & COMMERCIAL HUBS
Including non-IT centers of business.

Commercial

 Sadar
 Jaripatka
 Civil Lines
 Empress mall
 Capital Mall Asia
 Poonam Chambers
 Haj house
 Medicine market
 Itwari wholesale market
 APMC Kalamna

Industrial

 Chikly lay out
 Deputy signal
 Small factory area
 Uppalwadi
 Kamptee road
 MIDC



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RISKS
Nagpur is one of the safest Catastrophic Risks
 No major natural calamities reported.
and low risk locations, best for  Lies in seismic zone II with low or neglible risk of
business continuity. earthquake.
 Very far from sea or ocean hence no risk of Tsunami.

Political Risks

 Political stability has endured over the last decade and
ruling parties have completed their full term.
 Legislative assembly is conducted every winter and is
managed in a systematic and organized manner.
 Nagpur has not been affected by communal tensions,
rioting or terrorism so far

History of Disruptions

 Population is a mix of all religious denominations and has
not been affected by communal tensions, rioting or
terrorism so far.



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QUALITY OF LIFE
AVAILABILITY OF HOTELS

Ample hotels ranging from 1  Hotel Pride, Sun & Sand, Tuli Imperial among 5 star
hotels
Star to 5 Star spanning across  Larger brands including Radisson are coming up.
category types budget,  Average occupancy rate of hotels is over 60% providing
business, leisure, luxury and latent occupancy with business hotels having the highest
occupancy rates.
boutique to suit all types of  Facilities, ambience, service, food and other services at
customers par with that in metros.
 A delightful customer experience at competitive rates

RESIDENTIAL ACCOMMODATION

25
Affordable housing in a The following table depicts savings in housing costs in Nagpur,

clean, green and spaced Nagpur Bengaluru Hyderabad Pune
out environment Rental (Rs./month)
1 BHK City Center 5,752 9,173 7,125 9,482
1 BHK Outside City 3,793 5,700 4,319 6,827
Center
3 BHK City Center 16,687 22,933 17,367 21,555
3 BHK Outside City 10,935 14,383 11,355 13,527
Center
Outright Purchase
(Rs./sq.ft.)
City Center 6,198 7,724 6,632 7,354
Outside City Center 3,099 3,891 3,240 3,856

 As Nagpur is one of the fastest growing cities, there is an
enormous real estate activity with hordes of residential projects
taken up.
 Though Independent bungalows are preferred in Nagpur,
demand for flats is also on the rise.
 Empress City, Anandam, Jattarodi and Empyrean are some of the
recent projects undertaken.

25



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COST OF LIVING
Daily cost of living is relatively lower

The following table shows a price comparison of essential and discretionary spending heads,

Expenditure Heads Average Prices Relative to Nagpur Prices
Bengaluru Hyderabad Pune
Higher Lower Higher Lower Higher Lower
Groceries
Milk (1 ltr.) 5% 14% 27%
Eggs (1 Dozen) 7% 5% 10%
Fresh Cheese (1 kg) 30% 10% 12%
Chicken Breast (Boneless, 1 kg) 15% 25% 10%
Transportation
Taxi 40% 60% 7%
Utilities
Internet (6 Mbps, Flat Rate, Cable/ADSL) 27% 17% 20%
Sports & Leisure
Fitness Club Membership (Monthly Fees) 185% 65% 58%
Cinema Tickets (Single Adult) 17% 1% 13%

LOCAL TRANSPORTATION

Most of the People in Nagpur  Self-owned vehicles constitute 60% of the local traffic at
Nagpur
prefer private mode of  Other means of local transport available are Buses &
transport having their own Auto-rickshaws
vehicles

CRIME RATE

Very low crime rates, both in  According to Nagpur Police statistics, the number of
crimes committed shows a steady decrease since last five
terms of overall crime and years.
crime against women  Strong surveillance by city and traffic police



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POLLUTION LEVELS

Nagpur is well known for  Clean and green roads with trees and parks around it
and has natural and man-made lakes with Ambazari lake
being one of the cleanest and being the largest
greenest cities in India  The city is surrounded by 3 famous Wildlife Sanctuaries,
which are home for many wild animals including Royal
Bengal Tiger.
 Pollution levels are considerably lower than most of the
cities in India.
 The Nagpur Municipal Corporation plans to install
electronic pollution display boards at 50 prominent
squares in the city that will display information about
temperature, humidity and carbon level of the city.

ENTERTAINMENT
Malls, Restaurants,  The city gives a relaxed lifestyle and leisure time to
explore entertainment options.
Multiplexes, Waterparks,  Restaurants and food joints serves all varieties of food.
Weekend getaways, Picnic  Latest bollywood and hollywood movies are screened in
Spots and various events multiplexes ad theatres across the city and all major film
making units come to the city for promotion
provide ample options for  Satellite TV services are very popular at Nagpur with the
entertainment major players being TATA Sky, Airtel, Videocon, BIG TV
and SUN TV.
 Plenty of picnic spots and weekend getaways in and
around 1 hour commute time



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LOCAL IT BUSINESS LEADER
SURVEY RESULTS: NAGPUR AS
AN IT DESTINATION?
A brief survey of local IT/ITES Business leaders was conducted by pManifold in 2011 to assess the effectiveness of
operating an export-oriented IT/ITES business from or at Nagpur. 26 IT business leaders belonging to a
representative mix of small, medium and large IT/ITES companies responded to the survey. All top companies of
Nagpur were represented.

Most business leaders feel that fast and easy connectivity due to safe central location, good infrastructure, low cost
of operations and an enriching lifestyle make Nagpur, a good destination for IT/ITES operations.

Some key results are shared further.



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DOING BUSINESS

Most business To what extent do you agree that your city is a good IT
leaders agree that destination?
Infrastructure is
good, should be
Fast & Easy connectivity - Road,
further upgraded; Rails & Air
Easy connectivity
and Low cost of
operations makes
Low Cost of Operations
Nagpur a good
destination

Life Style

Safer, Central positioning helps
Business Continuity

Infrastructure is good

-5% 5% 15% 25% 35% 45% 55%

Strongly Agree Mostly Agree Agree
Somewhat Agree Don't agree



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IMPACT ON MAKING SALES

Having a front end office Does having an office/presence closer to your
near to the customer i.e. customer's location, e.g. in US or Europe, have any
effect on Sales?
US or Europe etc is
considered good but not
critical 8% Yes. It Helps me
get more business
No. It doesn't
35% affect my Sales
57%
Other

How many times has your company lost a sale due to
its geographical location at Nagpur?

8%
Never
23% Rarely
Sometimes
57%
12% Often



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ATTRITION AND TALENT INFLOW

Attrition is less than Attrition in last 5 years
10% and companies
are not only keen Above 50% 4%
but are also able to
30% - 50% 0%

Attrition Level
attract more talent
from outside. 20% - 30% 19%

10% - 20% 15%

< 10% 62%

0% 10% 20% 30% 40% 50% 60% 70%
% of Respondents

Number of employees that your company has attracted to
Nagpur from outside the city in the last 3 years?

50+ 8%
Number of Employees

20-50 8%

10-20 4%

01-10 62%

0 19%

% of Respondents



Emergent Nagpur

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