Marketing of SEZs

The Growth Catalysts

With recession fading away, there is a hope of markets in Europe and North America jumping back to business. This will mean increased business for Indian IT and ITeS and also BPO and KPO companies and need for centralised and better infrastructure. Considering SEZs play an important role in India’s export sector now is the need to plan a marketing strategy that will project them rightly.

What are SEZs?

SEZ or special economic zones are specifically delineated duty free enclaves. These zones are deemed to be foreign territory and are given special privilege for the purposes of trade operations, duties and tariffs. They were primarily promoted for facilitating exports in the country. SEZS also aim to attract export-oriented FDI, enable Indian entrepreneurs to operate under international conditions, implement of global industries and practices, create employment and attract international investment in India. For SEZs to grow, the first requirement is world class infrastructure. This is true for not just IT and ITeS SEZs, but also for manufacturing and industrial SEZs.

Marketing SEZs

While planning any marketing strategy in terms of SEZs, it should be remembered that these areas will be occupied by a mix of mid-sized Indian companies hoping to go global as well as some of the large players from India and outside. This calls for a focussed marketing strategy that should be directed at new domestic as well as international companies. The international companies should particularly be targeted as they will be looking for economically viable areas to set up their units at and will be also be aiming at expanding their operations after deployment.

It is important to send positive signals to potential tenants due to the negative impression that has been created of SEZs by policy flip-flops and land acquisition issues. The marketing strategy of SEZs should aim at showing tenants that inspite of STPI been granted a year’s extension in the last budget, they will be better off than existing STPI-based companies in the end. Those with space in IT and ITeS SEZs definitely stand to gain in the long run when STPI concessions will ultimately cease in future.

There is no denying that marketing activities for SEZs were rather slow till recent times. With companies becoming more aware of different benefits of leasing space in SEZs, the time is now ripe to execute these strategies with full vigour. From large players to start-ups and small entrepreneurs, everyone is waking up to the benefits of SEZs. We can further instil hope in these companies by making them aware of the through tax benefits that SEZs provide and will continue to provide in future.

Sun seems to be rising now for SEZs! Encouraging news of Bharat Forge (BFL) starting its marketing effort for the first phase of its 10,500 acre SEZ at Khed and the Tamil Nadu Industrial Development Corporation (TIDCO) starting marketing space at the multiproduct SEZ in Ennore from April-May are definitely promising a better future for SEZs in India.