Navi Mumbai Ramps Up as Captive Offices Hub

Posted by: at 7/31/2017 02:51:00 am


Navi Mumbai Ramps Up as Captive Offices Hub

About 1.5 mn sft of captive office space currently under consideration, approx. 3.3 mn sft transacted between 1Q2010-1H2017

  Karan Singh Sodi – Managing Director (Mumbai), JLL India

Navi Mumbai continues to have the most affordable average rent among all micro-markets of Mumbai. The well-planned city also has a growing footprint of grade-A, and superior grade-A, offices. In addition, it is interestingly emerging as a hub for captive services too. Captive service represents a segment of Business Process Outsourcing (BPO) in which companies utilize wholly-owned subsidiaries in place of 3rd part vendors.

The benefit of doing such an arrangement would be to leverage the cost savings of using offshore resources, while maintaining complete control over process and delivery.Thanks to the availability of land parcels, good connectivity by road and rail to all areas within the Mumbai metropolitan region and access to a human capital of 8-9 million in its proximity, it will emerge as one of India’s most prominent captive hubs for the BFSI sector.

Over the last 12-15 months, banks have either set up offices in this region or expanded their existing captive footprint. Whether it is Axis Bank, IDFC or a multinational bank like UBS (the first multinational bank to have set up a captive office here), increasingly prefer to base their back-end operations in such captive facilities here. Banks and other occupiers are happy after moving their offices to Navi Mumbai from Mumbai and most have either firmed up their expansion plans in this region while some others are in the process of doing so.

While Axis and IDFC have expanded considerably in this satellite city, SBI – that has its global delivery centre in CBD Belapur – is also likely to follow. Over the last seven years, prominent occupiers such as Accenture, L&T Infotech, Capgemini (iGate), Cognizant and Syntel have made Navi Mumbai an established back office hub. Many more businesses are expected to set up their back-end operations in captive spaces here. The preference is especially for the Airoli-CBD Belapur belt, which enjoys better rail and road connectivity.

PROPERTY
ADDRESS
PRECINCT
QUARTER
YEAR
AREA LEASED (sq ft)
LANDLORD
TENANT
Mindspace 1 Building 7
Airoli
Navi Mumbai
1Q
2010
         3,00,000.00
K Raheja Corp
Wipro
Mindspace 1 Building 2
Airoli
Navi Mumbai
4Q
2010
         3,50,000.00
K Raheja Corp
Accenture
Mindspace 1 Building 2
Airoli
Navi Mumbai
1Q
2012
         1,60,000.00
K Raheja Corp
Accenture
Mindspace 1 Building 1
Airoli
Navi Mumbai
1Q
2013
         3,50,000.00
K Raheja Corp
L&T Infotech
Gigaplex Building 1
Airoli
Navi Mumbai
2Q
2013
         2,11,000.00
K Raheja Corp
Axis Bank
Mindspace 1 Building 11
Airoli
Navi Mumbai
3Q
2013
         1,75,000.00
K Raheja Corp
Accenture
Mindspace 1 Building 11
Airoli
Navi Mumbai
3Q
2014
         2,50,000.00
K Raheja Corp
Eclerx
Gigaplex Building 5
Airoli
Navi Mumbai
4Q
2014
         2,80,000.00
K Raheja Corp
iGate Patni
Gigaplex Building 6
Airoli
Navi Mumbai
2Q
2015
         4,00,000.00
K Raheja Corp
Accenture
Gigaplex B2
Airoli
Navi Mumbai
2Q
2016
         2,40,000.00
K Raheja Corp
MNC Bank
Loma IT Park, Phase 1
Mahape
Navi Mumbai
2Q
2016


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