IT traders hit by MCD sealing

The 'sealing effect' of Municipal Corporation of Delhi (MCD) has made
sure that renting or leasing rates in authorized places like the IT hub Nehru
Place jump multifold, adding to the irony of already puzzled IT traders of the
region

This festive season of Dussehra and Diwali is likely to bring less cheer to
traders involved into selling IT products and equipment, irrespective of the
fact whether they operate from dubious places or have their offices in
well-organized localities like Nehru Place. The two-pronged side effect of MCD's
sealing activity has not only ensured the sealing/closure of the premises but
has also made the rent rates in legal areas skyrocket.

“It is very surprising to see that the recent episode of sealing has
witnessed some of the highest increases, when it comes to renting or leasing one's
own property, in authorized places like Nehru Place-the IT hub of this region.
In some cases where the shop location is really good, people are increasing
their rent or lease agreements by 150 to 200 percent. Original allotment for
Nehru Place was done long time back in the 1978-79, so most of the IT traders
today work here from a rented place,” informed, Saket Kapur, CEO of Nehru
Place-based Green Vision.

Speaking about different repercussions of this situation, Anil Sachdeva, CEO
of Nehru Place-based Kadam Marketing, said that in one way the appreciating
value of real estate is a good phenomenon but the situation is going to be quite
difficult for small traders who are involved in 'rotation' business. “I
think it is a temporary phase and is will also mean that only serious people
will be able to survive this situation,” he added.

Ongoing MCD sealing activity is also likely to put brakes for IT companies
eyeing Delhi for high sales when it comes to cashing in on the upcoming festive
season of Dussehra and Diwali.

What vendors say!

When it comes to having a big retail presence, LG Electronics India has got
a lot of dealers based in and around Delhi but the company feels that the MCD
sealing will not have major affect on its overall IT business activity.

“If you look at our component business, nothing big will happen as most of
our partners are based in authorized marketplaces like Nehru Place,” informed,
R Manikandan, GM-Sales and Marketing (IT Division), LG.

When contacted Samsung India's official spokesperson said that the company's
IT business is not likely to get affected, however, there would certainly be
some portion of consumer electronics and home appliances business that will be
hit by this situation.

Zia Askari