Godrej to convert Hyderabad IT SEZ into housing project

The Godrej Group’s realty arm, Godrej Properties (GPL), plans to convert its information technology (IT) special economic zone (SEZ) project in Hyderabad into a residential one, a top company official said. GPL had bought over 34 acres in Hyderabad in 2006 to set up an SEZ, keeping in view the then boom in the IT sector.

“SEZs are no more lucrative following the slowdown in the IT sector and some government regulations. We are looking at converting our Hyderabad SEZ project into a residential one, most likely catering to the mid-market segment. We will not focus on SEZs as of now,” Godrej Chairman Adi Godrej told reporters after the company’s AGM here today.

The company earlier had plans to build a six-million-sq-ft IT park or, alternatively, an IT SEZ in Hyderabad. Currently, the company is developing two IT parks in Kolkata’s Salt Lake city, one of which will be completed by this year-end.

GPL’s profit for the first quarter in 2010-11 has increased seven times to Rs 22 crore on the back of impressive bookings in its residential projects in Ahmedabad and Kolkata, Godrej said. The third phase of the Ahmedabad project will start in the next two-months.