Chennai has been ranked the world’s cheapest FDI location for electronics R&D with estimated annual operating costs of $1.24 million for a 50-person center. Penang, Malaysia took the second spot followed by Gurgaon and Pune, says FDI Benchmark, an investment location comparison tool from the Financial Times.
In terms of competitiveness, Chennai was ranked second – next to Seoul – as the world’s most competitive location for electronics R&D activities. The two Chinese megacities of Guangzhou and Shenzhen were in third and fourth places, respectively, the report said.
Location competitiveness was benchmarked based on cost and quality of doing electronic R&D activities.
Big boost to Oragadam
Oragadam multi-sector SEZ, and Sriperumbudur multi-sector SEZ, are two sector-specific SEZs for electronic hardware in Tamil Nadu. Companies like Samsung and Apple have a strong presence in manufacturing, while Flex, Sanmina, Salcomp, and Foxconn have strong in-house R&D units.
The presence of several MNCs and a large number of employees including expats has necessitated the need for quality residential options. One development that is being sought-after in Oragadam is Hiranandani Parks. The 360-acre sports-themed township is home to luxurious 2.5 and 3 BHK apartments and premium plots for those who wish to build their own homes. The long list of trending amenities, themed gardens, a hospital, a school, and more features make Hiranandani Parks the perfect environment to set up their homes.
Leading the state’s industrial growth
Oragadam and Sriperumbdur SEZs produce nearly 20% of India’s electronics. The State’s Electronics Hardware Manufacturing Policy has targeted to up the electronics industry output to $100 billion and raise the export contribution to 25%.
Guidance Tamil Nadu on its website points out that Oragadam provides a conducive environment for large companies with accessibility to the robust supply chain and availability of several thousands of employees.
The South Korean government has invested in IT infrastructure for decades and rolled out R&D tax incentives to multinationals and chaebol (domestic family-run conglomerates). This has enabled the likes of Samsung and LG to become world leaders in memory chips, displays, and smartphones.
The presence of good institutions in higher education coupled with the best ecosystem for electronics manufacturing has made this possible, say experts.
Popularly known as a city within a city, the 360-acre self-sufficient township has its own sewage treatment and a state-of-the-art water treatment plant that supplies unhindered water to the residents 24/7. The fine range of amenities includes a 9-hole golf course, large indoor and outdoor playgrounds, a clubhouse, swimming pool, yoga studio, gym, exclusive zones for kids and senior citizens, themed gardens, a hospital with round-the-clock pharmacy and ambulance services, an international school and more help the residents to lead a healthy and comfortable lifestyle.