By February 2016, it will be five years since the inauguration of ELCOT Information Technology (IT) Park in Ilanthaikulam, which was expected to catalyse IT growth in Madurai and other southern districts, which are craving for industrial growth.
With the occupancy at the IT Park with 50,000 square feet of office space expected to reach full capacity soon with companies like HCL and Honeywell commencing operations, growth of IT sector in Madurai region has picked up.
As the recent floods in Chennai have reiterated the need for geographically diversified and equitable industrial growth, entrepreneurs hope that stakeholders will do their best to sustain the momentum and place Madurai in the global IT map.
What went wrong? Despite attempts by industrial bodies and the government for more than a decade to divert investments southwards, the IT sector growth has eluded the region due to reasons ranging from political and infrastructural to cultural.
“Work on the IT parks began when the sector was still in a nascent stage. However, by the time they became functional in 2011, global recession has set in and the companies were keen on cutting cost,” said R. Sivarajah, president of Native Lead Foundation (NLF), which is helping funding of startups in the region. Many entrepreneurs also pointed to the political situation in the late 2000s in Madurai and the prevalence of real estate mafias which were dampeners.
Many said that the unrealistic negative portrayal of Madurai as a place notorious for violence in mass media, particularly movies, played spoilsport. “Most of the movies depict Madurai as a place full of people carrying aruvals (sickle) all the time,” said Ashwin Desai, president of Software Industries Development Association (SIDA).
Mr. Sivarajah said that he was told by a top official of an IT giant that this factor came up in their board discussion when Madurai was considered as an investment destination.
Although lack of infrastructure such as proper roads and international air connectivity were cited as reason a decade ago, Madurai has improved a lot over the years.
Need of the hour While the importance of bringing IT majors is felt among the entrepreneurs here, they also stress the need for Madurai to look for alternative growth plans in the IT sector.
Mr. Desai said that Madurai should aim at evolving as a hybrid IT destination with electronics and hardware manufacturing companies, along with software companies. “It not only sits well with ‘Make in India’ initiative of the Centre but will also appeal to traditional manufacturing businesses like textiles in the region, which are looking for diversification,” he said.
On the other hand, Mr. Sivarajah said that Madurai should try to capitalise on the startup culture that is booming now in cities like Bengaluru. “We lost some opportunities in bringing IT majors. Let us not miss the next big thing in the sector,” he said.
S.P. Varadharajan, Managing Director of Pandian Saraswathi Yadav Engineering College, which has an incubator for mentoring entrepreneurship ideas of students, said that the government should incentivise startups and relax regulations for them to operate in ELCOT IT parks.
Mr. Sivarajah said that while engineering colleges were running behind IT companies for recruiting their students, the situation would turn the other way round when the colleges showcased some innovations.
A. Srinivasan, Managing Director of Madurai-based Solartis, serving global clients with operations in Chennai as well, said that many people were interested in returning to their native places or closer to them. “I was one among them. After working in cosmopolitan cities for years, many feel the need to get back to their roots. So there will not be any dearth of good talent for companies that want to start operations here,” he said.
Mr. Srinivasan, who had to temporarily relocate some of his employees from Chennai to Madurai during the floods, said that Madurai also had the potential to become a hub for Business Continuity Centres (BCC).
SIDA, in a memorandum submitted to the Tamil Nadu IT Secretary recently, had highlighted the need for the government to encourage setting up of BCCs in Madurai.
Mr. Srinivasan said that the real game changer would be incentives and tax benefits from the government for companies to move to tier-2 and tier-3 cities.
ELCOT IT Parks in Madurai
Madurai SEZ 1, Ilanthaikulam
- 28.91 acres, 50,000 sq ft
- Reached full occupancy
- Major companies include Honeywell, HCL (expected to commence soon)
Madurai SEZ 2, Vadapalanji
- 245.17 acres
- Companies yet to move in
ENCOURAGING START-UP CULTURE
- Native Lead Foundation
- 50 investors part of the network
- Rs 1 crore being funded for 6 startups
WHAT THEY SAY
R. Sivarajah, President, Native Lead Foundation
“Start-up culture and innovations that would result in intellectual properties must be encouraged in Madurai.”
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A. Srinivasan, Managing Director, Solartis
“Despite all efforts taken by industrial bodies, only significant tax benefits and other incentives by the government for tier-2 and tier-3 cities can pull more companies towards Madurai.”
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Ashwin Desai, president, Software Industries Development Association (SIDA)
“Madurai should aim at becoming a hybrid IT destination with electronics and hardware manufacturing companies along with software companies.”
