The Mumbai-based DBS Group has plans to foray into Gujarat with its office business centre concept. Currently, it operates DBS Office Business Center in cities such as New Delhi, Mumbai, Chennai, Kolkata and Bangalore.
An office business centre is a ready-to-use office, which, according to the company, is an attractive option when real estate prices are on the high.
The group's entry to the state comes at a time when the hospitality sector is trying its best to cater to the growing number of business travellers by providing separate business lounges and conference areas.
"A business centre, as the word suggests, is a place that offers instant offices for use of clients for a period ranging from a few hours to days and months," said Vanita Bhandari, director of the DBS Group.
"These instant offices provide space, furniture and other support services such as secretarial, communication assistance, travel arrangements, high-speed internet and ambience of an office culture. We are exploring the possibilities of opening such centres or franchising to have a presence in the mini metros of the country and Ahmedabad is one such city," Bhandari added.
Refusing to divulge the investment details of the project, Bhandari said the company was on the lookout for property in the state. "The business centre usage is fast becoming a viable option for businessmen, professionals, consultants and corporate executives with soaring cost of real estate, change in executive lifestyle and setting up time and corresponding office overheads. Ahmedabad, which is growing rapidly with lot of industrialisation, seems to be an ideal place to set up such a centre," said Bhandari.
Currently, DBS has business centres in various cities spread across an area of 1 lakh sq ft.
On rental rates, Bhandari said, "The rent varies from city to city depending on the property rates there and also the size of the business centre that is being rented out. On an average, a 100 sq ft business centre can be rented out for about Rs 3,500 per day. We even have large spaces of 500 sq ft, apart from conference facilities, classroom style and boardroom style facilities, which can be rented out for boardroom meetings, trainings, etc."
The company claims to witness an occupancy of 80-90 per cent across its business centres. "Our business centres are usually used when a company wants to grow and requires additional space 'instantly'; for private and confidential meetings away from ones own office; for opening many branch offices at the same time; and during renovations and emergencies," she added. So far, DBS has assisted more than 5,000 companies start or expand operations in India. DBS' clientele include Titan, Coca-Cola, Singapore Telecom, Infosys, ABN Amro, Federal Express, P&O Containers, DSP Merrill Lynch, Informix and Star Cruises. It targets a turnover of Rs 30 crore in the current financial year.
