The Executive Centre logo.
Credit: executivecentre.com
Benlgauru: Having raked in a profit of Rs 157 crore from its Indian operations in 2023, Hong Kong’s flexible workspace provider The Executive Centre (TEC) is ploughing back Rs 125 crore to nurture this market further.
The investment will go towards establishing 2.75 lakh square feet of workspace across eight centres - one each in Bengaluru, Chennai, New Delhi, and Gurgaon, besides two in Mumbai and Hyderabad.
“We want to double up our business in the next 2.5-3 years in India,” said Manish Khedia, Managing Director for South India, West India, and Sri Lanka, in an interview with DH.
TEC’s key markets for expansions will be India, Middle East and Singapore. It is planning to enter a new country in the Middle East soon.
On the momentum that flex workspace is gaining, Khedia explained, “A lot of companies deploy their capital expenditure looking at a horizon of six to ten years. But with flex offices, they can sign up for a shorter duration, use it on a pay-per-use basis and expand as per them.”
“In India, you have everything in one: the tech park, social amenities, and the office space. This is driving global powerhouses to set up their office space here,” observed Khedia.
In terms of sectors, 70 per cent of TEC’s leasing is by Information Technology (IT).
Flex office players are also partnering with companies setting up Global Capability Centres (GCCs) in India. This year, TEC crossed 50,000 people operating out of GCCs.
Khedia said, “The rental is increasing by 5-7 per cent year-on-year because of the rising cost of construction and land prices.” TEC’s prices have accordingly been rising at the same rate. Khedia distinguished this from China and Hong Kong where a downward trend is observed.
Khedia explained, “We don't sign up with startup companies. The advantage of working with global MNCs is that they have a credit worthiness which aligns with our vision of offering a premium quality.”
This year, TEC is looking at a growth of 15-17 per cent from last year, similar to the last five years.