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|June 14th, 2013, 12:52 PM||#781|
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Cognizant to enlarge IT SEZ by 50%
Thursday, Jun 13, 2013, 10:58 IST | Place: Kolkata | Agency: DNA
Nasdaq-listed Cognizant Technology Solutions (CTS) is increasing the size of its Chennai special economic zone (SEZ) by 50%.
The development, which comes at a time when many corporates are desperate to get out of SEZ development and have flooded the government with requests to either denotify them or extend deadlines, indicates Cognizant’s confidence in its Indian operations.
The US-headquartered company, which has logged a superlative performance over peers, had asked the SEZ approval body for addition of 5.66 hectares (ha), which will increase the size of the SEZ, located at SIPCOT IT Park at Siruseri, to 16.51 ha. The request was taken up at the meeting of the board of approval for SEZs on Wednesday.
The SIPCOT IT Park, developed by State Industries Promotion Corp of Tamil Nadu, is considered to be the largest such facility in Asia, spread over 590 acres and has tenants like TCS, iGate and Hexaware, besides Cognizant.
Cognizant, which has close to 75% of its headcount stationed in India, is also working to increase its presence elsewhere in the country.
The company has an existing SEZ in Ranga Reddy district of Andhra Pradesh, spread over 16.19 ha, and last November, the board of approval for SEZs had also allowed it to become co-developer of the IT SEZ at Ernakulam in Kerala, being developed by Infoparks over 12.58 ha.
Cognizant zoomed past Infosys as India’s second-largest IT company after TCS in 2012, with a revenue of $7,053 million, growing at a scorching 20% on-year. Globally, it was ranked 12th on the list of America’s 25 fastest growing tech companies recently.
Cognizant’s SEZ expansion comes close on the heels of TCS getting an approval in March for a one-year extension to start operations at its SEZ at Mihan in Nagpur. The request was granted – despite two earlier extensions granted to it till June 30 – as TCS could show that work is on full swing at the site and Rs 300 crore has already been invested.
Besides Cognizant’s proposal, Wednesday’s meeting also took up several partial denotification requests from developers including Industrial Areas Development Board for its IT SEZ at Mangalore, Parsvnath Infra Ltd for its IT SEZ in Gurgaon and a request for extension of Letter of Approval from Ananth Technologies for its IT SEZ in Ranga Reddy district of Andhra Pradesh.
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