A wholly owned subsidiary of Paharpur Cooling Towers Ltd., Paharpur Business Centre & Software Technology Incubator Park (PBC-STIP) was established in the year 1990. With a mission to be the preferred supplier of support services to corporate, today PBC-STIP is the leading provider of office facilities and services to corporate(s), which enables the companies to focus on their business and leave their ?non-mission critical? services.
Speaking to India Infoline Mr. Kamal Meattle, CEO, Paharpur Business Centre & Software Technology Incubator Park says that at Paharpur we provide an array of 28 services to our customers due to which they can concentrate on their work and leave all the non-critical services to us.
Give us a brief about the Paharpur group, its activities and promoters. Tell us about the Business Center. How much does it contribute to the group?s revenues?
The Paharpur group, a privately held company, was established 55 years ago. The Group is involved in the following areas - Manufacture of Cooling Towers, Flexible Plastic Packaging, Wood Processing and Fabrication, Heat Exchangers and Fibre Glass Components. Its Business Collaborations, Joint Ventures and Strategic Alliances include:
Joint venture partner in KSB Pumps Ltd., Pune (An Indo-German joint venture for manufacturing pumps)
Joint venture partner in KRUPP Industries India Ltd. for manufacturing sugar and cement machinery
Directors of Paharpur Business Centre are:
Mr. Mahendra Swarup M.Sc
Chairman of Paharpur Cooling Towers Ltd.; Kolkata, (holding Company of PBC ? STIP)
Mr. Kamal Meattle, SM, MIT, USA
CEO, Paharpur Business Centre & Software Technology Incubator Park
Mr. Gaurav Swarup: MBA, Harvard Business School, USA.
Managing Director, Paharpur Cooling Towers Limited
About Paharpur Business Centre
Paharpur Business Centre & Software Technology Incubator Park (PBC-STIP) is a business of PBC Ventures Ltd, a subsidiary of Paharpur Cooling Towers Ltd located in the heart of the capital ? Nehru Place Greens, is a state-of-the-art, environmentally attractive one-stop shop for MNCs entering in the country.
Established in the year 1990, PBC-STIP is the Indian capital?s corporate delight, offering total software technology infrastructure at global- level premium standards.
Surrounded by over 2,000 trees with dedicated parking and oxygen rich air it is also termed as the ?instant office? or the ?no fuss? business center.
Give us a feel of the business center business. Is it used mostly as a stopgap arrangement by firms before they go on to their own private premises? How long do companies use the center for?
Paharpur is home to a host of large multinationals setting up base in India. PBC-STIP enables companies to focus on their business and leave their ?non-mission critical? services. We provide flexibility in terms and conditions depending upon the need and demand of the customer and over the years we have seen companies starting operations and growing with us over years, the time has varied in the past from 3 to 84 months.
We hear Singapore-based business space provider, Ascendas and Mahindra are developing 1 million square feet of ready-built space at Mahindra City in Chennai catering to the IT and BPO industries. Do you see many such tie-ups coming up?
Yes. The management of PBC-STIP is promoting a new 1.4 million square feet software park called Haryana Technology Park, located on the national highway 2 (Delhi-Agra highway) about 3 km from Delhi border. This may have foreign tie-ups and investments and will be ready for occupation in 2006.
What kind of tie-ups do you have? Are you looking at any JVs to add value to your services?
As of now we do not have any tie ups for any of the 28 services which we offer to our clients. However, we are planning for a few.
You have participated in Outsource World, London 2004 exhibition cum conference in June 2004. What kind of feedback have you received from your meetings?
Very positive especially for collaboration and investments in the new Haryana Technology Park.
What initiatives have you taken in terms of quality, environment, health& safety of the people working in this centre?
With its focus on the customer PBC-STIP has carved a niche by innovating to meet the demands and expectations of customers. The company believes in ?Growth through innovation?.
PBC-STIP and its many services is perhaps the only service business in the World that is certified for four international standards viz. ISO 9001:2000 for Quality Management Systems, ISO 14001:1996 for Environmental Management Systems, SA 8000:2001 for Social accountability Management Systems and OHSAS 18001:1999 for Occupational health & Safety Management Systems besides committed to U N Global Compact.
It was showcased by CII at the WSSD at Johannesburg, September 2002, as one of the four companies from India that had taken successful initiatives for Corporate Sustainability Management System (CSMS). It has also been featured in the CII publication "Managing Environment Pays - Success Stories from Indian Industry" 2003. The most outstanding of all of PBC?s features and services is the quality of air inside the building. Paharpur Business Centre is New Delhi?s first Office complex with indoor air quality meeting ASHRAE standards.
PBC STIP is committed to perform its business and related activities in a manner so as to achieve continual improvement in environmental performance. As a socially responsible Corporate PBC ? STIP also took steps to improve the immediate environs, which included formally taking over an eight-acre area - with the launch of the Nehru Place Greens project. Promotion of ?Art for a Cause? led to the PBC Art Gallery.
Is it targeted mostly at foreign companies?
Yes, PBC-STIP is mostly targeted at foreign companies and also those companies, which are 100% EOU units and are registered with Software Technology Park (STP) in India.
Give us a brief list of those who have opened offices. What is the mix between Indian and foreign firms?
Our client list includes companies from all over the world. We have been host to organizations like 3M, Microsoft, GM, KFC, Johnson Control, LaSalle Partners, Parametric Technology Corp., Sun Micro Systems, Unisys, Yahoo Web Services, Indomag/Mannesman Demag, Hallmark, Intel, HP, EMC, SAP, Mobil, Intel, Teleglobe, Pioneer Electronic Corporation, Star TV, Amdocs Management, Fata Hunter, Pirelli Tyres, Riso Kagaku Corporation, Matsushita Electric Works, Canon, World Gold Council, Broad Vision, British Telecom, Powergen, BT Worldwide Ltd., Comverse Network Systems, Singapore Telecom, Pan Asian to name only a few.
What are the services you offer? What is your staff strength?
PBC offers a host of services under one roof. They include fully furnished serviced offices with plug-and-play facilities, 24 X 7 conferencing facility with fully equipped conference rooms in an oxygen rich air. Video and audio conferencing facilities with technical support suited for all types of events - corporate meetings, professional presentations, group workshops, trainings, seminars, board meetings and private client meetings, VOIP, PRI telephone lines, training rooms with computers, multimedia projectors and Internet access, and workstations equipped with state-of-the-art facilities.
Also on offer are business valet services, recruitment services, rent-a-car, travel assistance, security, horticulture, business coordination, property management, engineering safety, quality assurance etc.
It aims to be the "partner of choice" in meeting the requirements of business services to corporate. It is also Government of India approved Infrastructure Service Provider for software exporters as part of Software supplier of business services to Corporate.
The most outstanding of all of PBC?s features and services is the quality of air inside the building. Paharpur Business Centre is New Delhi?s first Office complex with indoor air quality meeting ASHRAE standards.
We have around 400 employees working for us.
Tell us about the Haryana Tech Park coming up. When will it be ready? What is the cost of setting it up? How is it being funded?
Looking at the demand and inspired by the success of Paharpur Business Centre & Software Technology Incubator Park (PBC-STIP) we took the initiative of promoting the Haryana Technology Park Project.
Today Haryana has become the preferred destination for setting up BPO and Software business. Presently Haryana?s IT exports rank at 3rd position in India and are worth more than USD one billion. Haryana, adjoining Delhi- is a rich reservoir of trained and skilled manpower and has one of the best infrastructure facilities with world-class security arrangements that encourage foreign companies to set up their offices here.
The Foundation stone of Haryana Technology Park was laid down by Hon?ble Chief Minister of Haryana, Shri Om Prakash Chautala at 15/1 Mathura Road, (located on main Delhi - Agra highway), Faridabad on August 18, 2003. The Haryana Technology Park will be a world-class Leeds ?certified green building? facility, targeted for use by multi national companies, especially U.S. based firms, and corporate those wish to set up or expand their BPO and software business. The I.T. and I.T.E.S Park will have a covered area of over 1.4 million square feet. It is expected to provide employment to more than twenty five thousand young skilled I.T. professionals, residing in Faridabad, NOIDA, Gurgaon and Delhi ? the NCR region. The Park will become operational by end of 2006
Tell us about your financials. How the previous year was and what growth do you see going ahead?
PBC-TIP is the wholly owned subsidiary of Paharpur Cooling Towers Ltd, Kolkata, India. It is a closely held company and not listed.
The company?s growth in net worth is over 500 times in the last decade.
For the financial year ending March 2004: (approx. % of turnover):
- Team member/ staffing costs are 37%
- PAT is 11 %
- Direct taxes paid to Government are 7%
- Social Spending is 1%
PBC complies with the Accounting Standards issued by ICAI and as per Indian laws.
How much does your value added offerings contribute to revenue. Could you provide a break up or at least a percentage wise break-up?
In a service industry most of the revenue is value added. It is at an average over all of our 28 services offered, about 30 times cost of Goods sold.
What triggers do you see for the development of business centers? How are you placed to take advantage of the same?
We started this building with the aim of providing the best facilities to foreign companies planning to set up their operations in India at a time when centrally air-conditioned A class building was unheard of and getting necessary connection was a pain. With the passage of time the customer demands and requirement has increased and with the motto to provide the best we have upgrade the benefits that a customer derives from setting up operation at our center.
What benefits do companies get by choosing a business center rather than having their own premise? Is there any cost advantage you can provide?
A business centre provides ready to move in facility to corporate. A company can move in just with a laptop and start operation at Paharpur Business Centre. At Paharpur we provide an array of 28 services to our customers due to which they can concentrate on their work and leave all the non-critical services to us. Flexibility in terms and conditions also gives companies lot of scope to grow.
Any new services you are planning to add. What are your future plans?
We have already added a center in the premier south Delhi area and now plan to come up with state-of-the art Technology Park located in the most preferred destination of India ? Faridabad that will be an answer to all the requirements of a multinational planning to set up its operation in India.
The Park will have a covered area of over 1.4 million square feet. It is expected to provide employment to more than twenty five thousand young skilled I.T. professionals, residing in Faridabad, NOIDA, Gurgaon and Delhi ? the NCR region
The Park will provide for Software, I.T. enabled services, office facilities, recreation centers like bowling, billiard tables and game rooms, food courts, gyms and health clubs with indoor exercising pools, barber shops, grocery shops, laundry shops, gift shops, computer stores, travel agencies, car rentals, medical centers, educational facilities, video conferencing rooms, overnight residential rooms and all the other facilities that are required to service and keep the 30,000 young people working around the clock happy, and have parking for over 1,600 vehicles.
Below are some more plans for the future
- Upgrade and enhance our service portfolio
- To take-up community development programs and be a showcase as a Public-Private partnership
- Undertake initiatives to promote greater environmental awareness amongst our stakeholders and sphere of influence.
- To pursue our commitment to the environment by giving an opportunity to upcoming artists to show case their works of art
- PBC -STIP now has four existing systems based on its four certifications. PBC -STIP aims to integrate all these four systems to one management system
- To works towards achieving HACCP (Hazard Analysis and Critical Control Points) certification for our Food and Beverage Division ?CuisineArt
- PBC -STIP is also working towards achieving the USGBC LEED Certification for being a LEED certified Green Building. www.usgbc.org/leed.
- As part of our Corporate Sustainability Management Systems, we aim to measure and assess our performance against previous performance and also assess the performance in new ventures. We report our performance on the triple bottom line concept. This Sustainability Report is available on our web site www.pbcnet.com.