Trivandrum vs Kochi to set up an IT business and live in.....

traveladdictindia

Hi All

Would be keen on knowing people's opinions on Trivandrum vs Kochi but for living as opposed to just visiting as a tourist... I am looking to move to India to set up an ecommerce business and my girlfriend has a kids clothing business. We are both ocean people so had narrowed the choice down to Kerala as it seems to have a focus on IT but also some nice beaches.

Is there any clothes manufacturing done in either Trivandrum or Kochi?

Is there surfing beaches in either place?

Is there something similiar to a technopark in Kochi?

Is there a good pool of people to employ with IT skills in both places?

Would be keen to know people's opinions on this

thanks
sam

2cents

Sam, welcome to IM. To answer some of your questions and get this thread rolling :-

There are apparel units located both in Trivandrum and Kochi. The Kerala International Apparel Park(KIAP) has been set-up by the state government recently in Trivandrum. Kochi too has several hundred garment manufacturing units some of which are located in the Cochin Special Economic Zone. The Kerala State Industrial Development Corporation(KSIDC) website has the details on new and ongoing projects in the textile sector.

Yes. Its called the Infopark. The Cochin Special Economic Zone, and the privately developed Technopolis adjacent to it,hosts IT firms.

Recently the Kerala government has inked an agreement with the promoters of Dubai Internet City to develop a knowledge industry hub in Kochi called 'Smartcity'. www.kochicalling.com tracks the latest news and developments regarding this and other IT projects in Kochi.

It wouldn't be too hard to find qualified people with skills in e-commerce or web development in either of the places. Kochi based HR firms/sites like Jobsomega will give you an idea of the local talent available.

traveladdictindia

thanks 2cents... what a great start to my information gathering

With the special economic zone... it is hard to understand, can I set up an ecommerce company where the software could be used overseas in the future but would also be used domestically in India?

Do you know if there are surfing beaches close to Kochi, or is Trivandrum better for this?

cheers
sam

abhilashdas

Cochin is better to settle down. After the arrival of Smart city cochin will explode as an IT Destination. Even today many big IT firms are working in Infopark. Further, investing in Cochin at this point of time should be a very brilliant descission because land price is going upwards all the time.

Its no hard to find talented IT professionals in and around Cochin. Myself is an IT professional working in Cochin .

If you are concerned about beach(ONLY), then trivandrum is better. Further, People usually say trivandrum as a bad place to live. I have lived there for 1 month but havnt come across too much bad experience.

2cents

Sam,setting up shop in an SEZ is possible only if you intend to provide e-commerce services primarily to overseas clients i.e yours earnings should be mainly in foreign currency. There is an option where you could provide services domestically too. However this is subject to minimum export performance norms.
In case of an IT firm all the benefits available to those units located in an SEZ can be availed by registering with Software Technology Parks of India. The advantage in this case is that there is no restriction in terms of location and the firm can be located anywhere in India.The STP Scheme is meant for Export Oriented Units(EOU) and domestic sales is permitted subject to certain conditions.To quote from the 'STP Scheme benefits and highlights' - "The sales in the Domestic Tariff Area (DTA) shall be permissible up to 50% of the export in value terms."

The Kerala government offers incentives for setting up IT units in the state.The Investment Promotion and Management Cell (IPMC)of Kerala State IT Mission can provide you with the list of benefits and the procedures involved, eligibility criteria etc.
To start off my suggestion would be to contact the business development section of Infopark in Kochi and Technopark in Trivandrum alongwith the IPMC. They would be able to provide you with the latest information on the steps involved in setting up and registering an IT firm in Kerala along with all the incentives on offer.

For an overview of the rules and regulations for setting up an IT company in India :- http://www.nasscom.in/Nasscom/templa...e.aspx?id=6216

I have no idea about which, if any, beaches in Kerala are suitable for surfing. Do try searching for it here. You might be able to find something relevant.Here is one I found :-

http://www.indiamike.com/india/movin...757/#post94977

traveladdictindia

I understand the SEZ rules..... yes you are right my business is likley to generate more revenue from domestic businesses rather than export.... I will contact the technoparks and go from there as you suggested....

I think we are leaning towards Cochin as my partner is looking to set up a kids clothing manufacturing business, importing fabrics then manufacturing in India and selling overseas... so proximity to the port and SEZ at Cochin are a big advantage....

thanks for all your help....

cheers
sam

2cents

Sam,Kochi is a good choice indeed when considering an optimal location for both IT firm and an apparel manufacturing unit. As your partner plans to source material from outside India and then export the finished clothing items, CSEZ does offer a lot of advantages as compared to a standalone excise bonded production facility.CSEZ and Infopark are located close to each other so that is a plus too.


Good luck with your venture; and that of your partner's.

go37go

I am also interested in working with the local talent in the Trivandrum area and surf. You addressed many questions I have in this post and wanted to follow up if you made any progress.