Success Factors for a Special Economic Zone
A large Indian conglomerate with presence in utilities and transportation was investigating the feasibility of setting up a large multiuse Special Economic Zone (SEZ) in India.
Management engaged SDG to conduct a study of SEZs in China, South Korea, South-East Asia, the Middle East and elsewhere across geographies. SDG was able identify several key success factors that had contributed to the tremendous growth of the most successful zones, e.g. Shenzhen and Jebel Ali.
In addition, SDG investigated the emerging structures in zone management – which varied among state initiatives, public-private partnerships, and foreign equity partnerships.
In particular, SDG studied the nature of foreign funding and participation in the Chinese SEZs, particularly Shenzhen, and the value proposition that an SEZ offers to attract Fortune 500 companies to locate within the zone. We profiled the large multiuse zones in India announced recently by large private entities. We investigated the likely changes in the SEZ landscape post the WTO regime of reduced regulatory benefits and special and differential treatment.
SDG formulated preliminary entry strategies for the client, identifying the opportunities and challenges to a private developer in the Indian scenario. In addition, we profiled leading master planners with a track record of planning large industrial land-use initiatives.
