Infosys to invest Rs 10, 000-mn in SEZ space

Chennai: Infosys will invest nearly Rs 1,000 crore this fiscal year in special economic zones (SEZ) for creating additional space.

Last year, out of the total Rs 1,150 crore it spent on infrastructure, Rs 400 crore was on SEZs. The incremental growth this year for the software major will come from SEZs, according to Mr T.V. Mohandas Pai, HR Director, Infosys.

Addressing newspersons at the company’s Mahindra City (SEZ) campus in Maraimalai Nagar, about 40 km south of Chennai, he said: “There is an infrastructure challenge. We are growing fast, but the eco-system is not ready.”

A major part of infrastructure and manpower growth for the company is happening in the SEZs. The company is also building SEZ facilities in Jaipur, Hyderabad, Mysore, Pune, Mangalore and Thiruvananthapuram. Work on the Pune centre has been slow due to labour problems, he said.

“The situation has still not returned to normal. We had 3,000 workers earlier, but now are able to access only 1,800.”

The first phase of Infosys’ Mahindra City SEZ facility where it has taken 129 acres is nearing completion with six software development blocks creating a seating capacity for 11,234 employees. Construction for the second phase will start next month. The company has planned a total investment of Rs 1,250 crore in the SEZ and has so far spent Rs 453 crore, he said.

In the second phase, the campus will see the construction of two more buildings with a built-up area of 5.80 lakh sq ft and a seating capacity of 5,000 employees. Infosys currently has two campuses in Chennai – one at Mahindra City and the other at Sholinganallur. The total headcount in these campuses stands at 10,752 as of June 30, 2008. Both these operations have together seen exports of Rs 2,072 crore for the twelve months ended June 2008.

Mr Pai said there are major infrastructure-related challenges to reach Mahindra City. Roads are crowded and the railway line is saturated. “Our women are in distress, travelling to and from work (in these conditions). We are talking to the state government to improve the infrastructure,” he said.

Infosys will add 25,000 employees in this fiscal. “We are on target and there is no change in this,” he said. This quarter, the company added 10,000 employees. Last year, Infosys made offers to 18,000 fresh graduates, and historically, 78 per cent to 80 per cent of those made offers would join the company, he said. “Entry for freshers is staggered due to capacity constraints. The slowdown has no reflection on this,” he added.