Gurgaon, Haryana

Gurgaon, Haryana market report

Gurgaon is the sixth largest city in the Indian state of Haryana. Gurgaon is the industrial and financial center of Haryana. It is located 30 km south of national capital New Delhi and 268 km south of Chandigarh, the state capital. Gurgaon is one of Delhi’s four major satellite cities and is part of the National Capital Region of India. According to a survey by Business Today magazine, Gurgaon is considered the best city in India to work and live in and ranks 11 amongst Indian cities on the “Life after Work” index. Gurgaon has the 3rd highest per capita income in India after Chandigarh and Mumbai.

Over the past 25 years the city has undergone rapid development and construction. A wave of multinational companies chose to locate their operations in Gurgaon after GE did so in 1997. Big companies like Airtel, American Express, EXL, IBM, Microsoft, Sapient, DLF, Maruti Suzuki, Hero Honda, Infosys, Ericsson, Oracle, Bank of America, American Airlines, The Coca-Cola Company, etc. have made Gurgaon the call centre capital of India and an important financial center.

Geography

Gurgaon district comprises five blocks: Badshahpur, Pataudi, Sohna, Gurgaon and Farrukhnagar. On its north, it is bounded by the district of Jhajjar and Delhi. Faridabad district lies to its east. On its south, the district shares boundaries with the district of Mewat. To its west lies the district of Rewari and the Rajasthan state. Gurgaon city is situated at the northern edge of Aravali mountain ranges. The length of district is about 21 km (13 mi) and the breadth is 27 km (17 miles).

Economy

Favorable tax policy by the Haryana government, pressure from Rajiv Gandhi to allow private companies to build properties and its proximity to Indira Gandhi International Airport saw the emergence of Gurgaon as one of the most prominent outsourcing and offshoring hubs in the world. It has also become a major hub of telecom companies. Prominent companies headquartered here include Bharti Airtel, Nokia, Motorola, Alcatel Lucent, and Ericsson.

Automobile manufacturing, garment manufacturing, world-class real estate and shopping malls are the other main industries. Gurgaon and Faridabad together generate over 50% of Haryana’s income tax revenues. Gurgaon also has a major manufacturing industry. Car manufacturing facilities include India’s largest passenger car company, Maruti Suzuki. Hero Honda, the world’s biggest motor cycle company is based in Gurgaon.

Infrastructure – One of the attractions for international companies to operate factories and offices in Gurgaon is nearby Delhi Airport.

Private real-estate giants, such as Emaar Properties, DLF Limited and Unitech Group have built gated communities in Gurgaon, which have 24×7 water and security. These gated complexes range from apartment complexes to integrated mini-cities such as DLF City, Nirvana Country and Suncity.

Real Estate Hub – Private real estate companies such as DLF Universal, Unitech Group and others constructed offices in Gurgaon, near Delhi Airport and National Highway 8 and then leased them to Fortune 500 and Indian companies.

Retail is another big industry in Gurgaon, where there are 43 malls, including the biggest, Mall of India, giving Gurgaon the 3rd highest number of malls in an Indian city.

Upcoming areas in Gurgaon developed by HUDA and private developers include Sohna Road, Pataudi road, Badshahpur, Dharuhera and Manesar.

According to a research report by Jones Lang LaSalle on ‘Indian Real Estate: An outlook on Industry trends’- “Although the prime areas of Gurgaon are saturated in terms of residential developments, the future growth corridors are the Golf Course Extension Road and Dwarka-Gurgaon Expressway. The National Highway-8 and Sohna Road are also witnessing considerable residential activity.”

Industry

Delhi Mumbai Industrial Corridor Project – Haryana government had identified four Early Bird Projects to be implemented as a pilot initiative within the DMIC region, which includes Mass Rapid Transportation System between Gurgaon-Manesar-Bawal, exhibition-cum-convention centre, integrated multi-modal logistics hub and new passenger rail link. The first phase of the project is likely to be completed by 2012 with an estimated $90 billion ( Rs 4,23,000 crore) to be invested to develop infrastructure in the investment regions.

Reliance 25,000-acre SEZ – Reliance Ventures, a group company of India’s largest private sector company Reliance Industries, and the Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC), signed a joint venture to set up a multi-product special economic zone in Gurgaon. At an investment of Rs 40,000 Crore, the project will be India’s largest SEZ spread over 25,000 acres (100 km2). It will be implemented by a 90:10 joint venture company, Reliance Haryana SEZ Ltd.

RIL is planning to kick-start its SEZ plan in Gurgaon and Jhajjar with around Rs 3000 crore being pumped in. Agreements are virtually done with Japanese and Korean companies like Panasonic and Mitsui for setting up large manufacturing and logistics facilities in the Gurgaon SEZ and estimated to create 1.5 million jobs.

IMT Manesar – HSIDC has acquired 1,736 acres (7.03 km2) land at Manesar to set up the Industrial Model Township in 2006. After taking over the possession of the land, HSIDC has allotted about 110 acres (0.45 km2) land to vendors of MUL, Gurgaon and others in Sector-3.

The IMT Manesar is located at 28 22′north latitudes and 76 57′ east longitudes. The IMT is situated on the National Highway No.8 known as Delhi-Jaipur highway and is extremely well-connected to Delhi.The international airport is just 32 km away, while Connaught Place is 45 km. Besides the location, the other attractive feature of Manesar is that it has the best infrastructure and is far ahead of other industrial townships in this respect.

The infrastructure is in place and operational and internationally known companies like Agilent Technologies, Honda, Denso, Norcool, Mitsubishi Electricals, Videocon, Motorola, Samsung, Frigo Glass, Alcatel-Lucent India Ltd, Johnson Matthey (India) Pvt Ltd, Baxter India and the prestigious Automobile Research Association of India are already operational here.

Transportation

Road – An eight lane expressway runs between Delhi and Gurgaon and connects to NH8 (Delhi-Jaipur-Mumbai national highway). The expressway connects to Dhaula Kuan in Delhi over a distance of 28 kilometres (17 mi). Buses connect Gurgaon bus station to Delhi and to cities and towns in Haryana and neighboring states.

The expressway is being extended to Jaipur 225.6 kilometres (140.2 mi) and will be completed in June 2011. Infrastructure major Reliance Infra has taken up a project to widen and upgrade the Gurgaon-Faridabad Road link, which is due to be completed by May 2011 and includes 4-laning of the road which is 2-laned at present.

The main bus depot of the city connects to neighboring towns including Delhi, Jaipur, Alwar and Chandigarh. There are also buses to Uttar Pradesh, Jammu, Faridabad, Dharuhera and others. Recently, the Gurgaon administration and Haryana Roadways have bought a number of Ashok Leyland low floor buses and started some new city bus service routes in New Gurgaon that connect MG Road to the many business parks like DLF City and Unitech International Business Park. The Delhi Transport Corporation also runs buses on the Delhi-Gurgaon Expressway. Shared auto-rickshaws are also a very common, cheap and convenient means of transport in Gurgaon.

To improve the public transport system in the Millennium City, the state government has finally decided to start a city bus service in Gurgaon on public-private-partnership (PPP) mode.

Metro – The Gurgaon-Qutub minar section of Delhi Metro opened to public on 21 June 2010. The line has been extended up to Central Secretariat on 3 September 2010 and is ultimately merged with the existing Yellow line between Jahangirpuri and Central Secretariat.

Haryana will set up its own Metro Corporation to extend the metro-rail facility to areas in the national capital region (NCR) falling in Haryana, also plans to extend the Metro-rail up to Manesar town.

Also, a privately owned and operated Gurgaon Metro Rail Link is planned to connect the Delhi Metro’s Sikanderpur Station to NH-8, with six stations on a 6 km elevated link. It will be financed by DLF. This rail link will complete in 2013.

Train – The Gurgaon railway station located at western end of the original city and connects to Rewari towards the south and Delhi Cantt. towards north.