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Bangalore: Hold Me Tight
And Don't Let Go

The IT boom is flagging, the power situation still sucks, and it is the third-most polluted city in the country. But Bangalore still retains its lustre for investors, has hopes of seguing from one revolution, infotech, to another, biotech, and has a side-bet on the healthcare business.

Mumbai: The Revival
Chennai: Coming Up From Behind
Chandigarh: It's All About Scalability
Mysore: Don't Pass Me By
Pune: In Quest Of An Identity
Hyderabad: Hyperabad Deflated
Coimbatore: Coming Of Age
Delhi: The Rot Continues...
Thiruvananthapuram: Talking Business

By Venkatesha Babu

3

BANGALORE

Every city should have a Supreme Court,'' says V. Ravichandar, the CEO of Feedback Research, a Bangalore-based industrial-b2b, if you will-market research organisation, the country's largest. The 44-year-old Ravichandar, an Indian Institute of Management, Ahmedabad, alum who moved to the city in 1969 sits on the Bangalore Agenda Task Force (BATF) chaired by Infosys Managing Director Nandan M. Nilekani. Ravichandar's reference is to the way the Supreme Court's Green Bench has gone about ridding Delhi of vehicular pollution, making it a far more livable city obiter dicta.

It isn't just the pollution-city administrators admit Bangalore is the third-most polluted city in India after Kolkata and Mumbai-that is wrong with Bangalore. Traffic snarls are quotidian affairs, power is a problem for CEOs and home-makers alike, and piped drinking water, that most basic of necessities, isn't as freely available as it should be. Karnataka Chief Minister S.M. Krishna's blue-sky vision for the city acknowledges the deficiencies but chooses to strike an optimistic note. ''Our dream is to make Bangalore another Singapore. With the construction of several new flyovers, the implementation of Cauvery 4-stage water project, augmenting power generation, and shifting smokestack industries from the city, we want to improve the quality of life in Bangalore.''

BOOMTOWN BLUES: The Vidhan Soudha building in the foreground look impressive, but Bangalore may have grown too big too soon
J.C. ROAD: The city's second-most important thoroughfare, after M.G. Road, is now a commuter's nightmare
COMMERCIAL STREET: The bright signs on Bangalore's most crowded shopping cluster contrast darkly with a grim power situation

If there's one thing that will prevent Krishna from realising his vision, it is the city's population that is an impressive 7.2 million-as compared to role model Singapore's 4.1 million.

It is the fact that the city's population has almost doubled from 4.2 million in 1992 that lies at the root of Bangalore's ills. Result? Population density in yesterday's garden city, at 14,876 people per square kilometre, isn't really as high as Mumbai's 39,671 but it is certainly more than Delhi's 11,114. And its 840 kilometres of roads support 2.16 lakh cars as compared to Mumbai's 1,870 kilometres that do 4.1 lakh cars, and Delhi's 26,323 kilometres that do 7.3 lakh. Worse, Bangalore, despite the 1,800 buses of the Bangalore Metropolitan Transport Organisation, doesn't really have a great public transport system. So, while the chief minister dreams of hyper-disciplinary city-states, the typical Bangalore resident has nightmares of the city turning into another Delhi. One, as Ravichandar would hasten to add, without a Supreme Court.

A Mis-timed Threnody

An obituary for Bangalore, though, would be premature given the businesses that inhabit the city. Infotech? Glimmer twins Wipro and Infosys, multinationals TI, Cisco, IBM, Compaq, Oracle, and a clutch of others. Consumer products? Toyota, BPL, biscuit king Britannia, United Breweries, Madura Garments, Arvind Clothing, and HLL's beverages businesses. And the list of notable others includes the John F. Welch Research Centre, GE's largest research facility outside the continental United States.

FACT FILE

FOUNDED
1537 A.D.
AREA
484 square kms
POPULATION*
7.2 million
ROAD-LENGTH
840 kilometres
PUBLIC TRANSPORT
1,800 (Number of buses)
PEAK POLLUTION LEVELS**
So2: 8 microgram/Metre cube,
SPM: 362 Microgram/Metre Cube
INDUSTRIAL LOAD SHEDDING
4 hours/day (average)
RESIDENTIAL LOAD SHEDDING
2 hours/ day (average)
POWER TARIFF
Rs 2.55 per unit (residential);
Rs 4.15 per unit (industrial)
HOURS OF PIPED WATER SUPPLY PER DAY
4 hours
COMMUTING TIME
45 minutes from Jayanagar to M.G. Road
COST OF DOMESTIC HELP****
Rs 800 a month
COST OF PETROL
Rs 32.17/ litre
COMMERCIAL REAL ESTATE RATES
Rs 4,000/ sq foot (average)
RESIDENTIAL REAL ESTATE RATES
Rs 1,800/sq foot (average)
TELEDENSITY
104.46 phones for 1,000 people
AVERAGE PER CAPITA WHITE COLLAR WAGES
JUNIOR MANAGER Rs 3.52 lakh p.a
MIDDLE MANAGER Rs 11 lakh p.a
SENIOR MANAGER Rs 35 lakh p.a.
NUMBER OF MURDERS*** 622
NUMBER OF TRAFFIC ACCIDENTS***
7,326 (550 fatal)
HEALTHCARE
8.1 beds per 1,000 people
CONSUMER PRICE INDEX***** 413

* : As on March 31, 2001
**As on 23 November, 2001
***Between January 1, 2001 and October 31, 2001
****For a maid/manservant who comes in for 2 hours every day
Source: Ministry of Statistics & Programme Implementation,
Base: 1984-85=100 Other sources: Bangalore Mahanagara Palike, Bangalore Telecom, BWSSB, KPTCL, Bangalore Police, Plakon Consulting, & Watson Wyatt.

As American industry's experience with Silicon Valley proves, it makes sense for companies of a feather to flock together. Like begets like. And if it was the weather, the 26 engineering colleges, the nation's premier pure science school (Indian Institute of Science), and research-minded public sector behemoths like Hindustan Aeronautics, Bharat Electricals, ITI, Indian Space research Organisation, and Defence Research and Development Organisation that attracted pilgrims like IBM and TI, then it was the presence of these blue-chip tech companies that, in turn, encouraged others to make a beeline for Bangalore.

None of that has changed. When Ittiam, a tech-hothouse that works in the DSP (Digital Signal Processing) area, decided to hire 20 VLSI (Very Large Scale Integration) engineers and advertised for the positions, the bulk of the 10,000 applications it received were from Bangalore. ''Nowhere else, with the possible exception of Mumbai, would we have got such a response for a niche specialisation,'' says Srini Rajam, the company's CEO and former head of TI's facility in the city.

What has changed is the demand-supply imbalance on several fronts: water, road-length, power, and public transport. Although he is quick to apportion all blame to the previous government, the city's new mayor K. Chandrasekhar of the Congress party admits that the quality of life in Bangalore has deteriorated. ''We are doing our utmost, but with the population explosion in the city, we can only do so much.'' So, what's going to redeem yesterday's boomtown?

Dark Horse, White Knight


That question should read who, and the answer is, the city's businesses. That won't come as a surprise to those aware of an incident in the mid-1990s, when, after tiring of repeated reminders to the city administration to improve the quality of the road linking Bangalore to Electronics City, 18 kilometres away, CEOs of several tech companies located there (including N.R. Narayana Murthy of Infosys, Arvind Kasargod of VXL, and Srikant Manchankiti of Siri Technologies), rolled up their sleeves and started laying the road themselves. For the record, they managed to shame the city into action.

''The infrastructure problems faced by the city have to be solved systematically,'' says Nandan Nilekani of BATF. ''All concerted citizens have to work with the civic authorities for this.'' Those aren't just words. Soon after being persuaded by chief minister Krishna to accept the post, Nilekani wrote out a cheque for Rs 2 crore for the BATF fund.

PERCEPTUAL TAKES 

» Bangalore comes in third in the overall ranking BUT it tops the perceptual survey
» Policy makers boast Bangalore lures foreign investors BUT CEOs are worried about availability and quality of power
» Family-makers like the city's roads and its climate BUT the rising cost of living is a concern
» Bangalore is the third-most polluted city in India BUT most respondents say the city has low pollution levels

Things do seem to be moving. A spokesperson for the Bangalore Water Supply and Sewerage Board claims the implementation of the fourth stage of the Cauvery Scheme-this will supply an additional 9.46 TMC of water-will make piped water available to all, and the city's commissioner of police H.T. Sangaliana maintains that the crime rate (more than 8,000 crimes thus far in 2001, including about 600 murders) isn't bad given its population. And while the ubiquitous sad story-this time, that of T. Narayana Gowda, a small-time entrepreneur who runs an office equipment dealership and hasn't managed a telephone connection after 10 months of trying-is not very far away, companies, especially those located in facilities maintained by the Software Technology Parks, Bangalore, don't seem to have any problems with connectivity. ''One attraction Bangalore holds for it companies is that telecommunication facilities in the city are very good,'' agrees Anant Koppar, the CEO of Kshema Technologies, a tech hotshop that operates in the software services segment. ''Bandwidth is on tap, and if there is a problem, STPB takes care of it immediately.'' But if Bangalore reclaims its position on top of the heap, it won't be connectivity or low crime rates that help it do so.

Jobs@bangalore

K. Pandiarajan, Managing Director, Mafoi Consultants
"It-enabled sevices have taken off where IT left off."
One would expect things to be bad in Bangalore. With things not going so well for the infotech economy, companies have closed shop, right-sized their operations, or offered extended sabbaticals to employees. That seems to suggest things are dismal in Bangalore, but recruitement firms (I head one) have a different story to tell. Today, in Bangalore it-enabled services have taken off where it left off. And the insurance and financial services sectors (both of which wouldn't traditionally be associated with the city) follow close behind. Things have changed, yes, but there are jobs for those with the right skills. Bio-informatics, for instance, is one sector where jobs are going in Bangalore. This is an area that brings together people from diverse backgrounds-physicists, biologists, software engineers and mathematicians work in teams. With the state government planning a bio-tech park in Bangalore things could look even better in the future.

It will be the city's technical education institutions. It will be the research organisations located there. It will be the tech-oriented companies that have made it their home. More than anything else, it will be the entrepreneurial drive that has become as much a part of the city's culture as the 118 pubs that dot its topography. Already, Bangalore seems set to become the biotech capital of India, although Hyderabad runs it close. And the government is trying to leverage the large number of medical colleges in the city (5 in all), and the strong foundation of organised healthcare that already exists in it-courtesy, seven corporate hospitals-to position Bangalore as an off-shore operating facility for over-burdened healthcare systems abroad like the United Kingdom's National Health Service. ''The healthcare and medicare segment holds great potential. We get patients not only from neighbouring countries, but also from developed countries like the US and New Zealand,'' says Dr Devi Prasad Shetty, an eminent cardiac surgeon who recently set up his own corporate hospital, Naryana Hrudayalya.

Does the city have room to grow? Ravi Purvankara, the head of an eponymous business group that is one of Bangalore's largest builders thinks it can. ''Even today, if one travels 15-20 kilometres in any direction from the heart of the city, one reaches its end. Since there is so much room for growth, real estate prices haven't shown much appreciation. It won't be geography, then, that will come in the way of Bangalore's tryst with history.

 

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