AdSpeed Digital is in Lower Parel in Mumbai, occupying an area of 10400 sq feet for its 160 employees spread across half of one floor in a commercial building. It has a total of 212 employees with the balance 52 working from client locations, home, or agency locations.
Before shifting to a hybrid workspace, the company paid a monthly rent of INR 1525000 per-month to the landlord for fully furnished office premises, which included eleven reserved parking spots.
AdSpeed had planned its transition to Hybrid Work to coincide with the end of its rental agreements, the initiation of certain software enhancements and the launch of its mandatory Hybrid Work policy. However, instead of fully returning the office they occupied, AdSpeed renegotiated the lease to retain just under half of the space it occupied earlier (5100 square feet) along with six reserved parking spots. AdSpeed spent approximately INR 3.1 Million restructuring it to suit its new purpose.
Rs 9.9 Million
Now, AdSpeed Digital’s monthly rental is INR 695000, an annual savings of INR 9.9 Million.
AdSpeed has also pre-contracted a large party-cum-conference room at a 5-star hotel one km away for the two days they the whole team is required to be present for a townhall.
Cryxus Limited, having seen a resounding adoption of its Hybrid work trial, has re-assessed its commercial space needs as well.
Prior to the successful trial, Cryxus Limited worked out of six floors that it occupied in a fifteen-floor commercial building at Bandra Kurla Complex in Mumbai. The building, had a total of 600000 sq feet of which 210000 sq feet was occupied by Cryxus Limited, accommodating its entire workforce and leased at a cost of INR 33 Million per month (fully furnished, alongside a deposit of INR 110 Million). Cryxus Limited has now signed a deal with the property manager to release two of the six floor it occupies, one of which has already been released with the second due to be released by month end. One part of the third of six floor is being converted to a R&D center for one of its subsidiaries.
By the end of the year, the total outgo for lease rentals paid by Cryxus will reduce from INR 396 Million to INR 228 Million.
Rs 168 Million
Cryxus will pay an addition INR 20 Million to restack the three existing floors to suit them for purpose, and, in addition, will retain a part of the third floor for office gatherings and socials, the other being occupied by its subsidiary.
Maintenance, Facilities and Amenities
Rs 9.1 Million
AdSpeed Digital’s spend on things like power, maintenance, furnishing upkeep, cleaning facilities, drinking water and hosting amenities and furniture (chairs, desks, cubicles, charging sockets, cabins, bean bags, highchairs, conference tables and chairs, storage spaces, phone and camera holders, lunchroom tables, etc.) resulted in an annual savings of INR 9.1 million (click here to see calculation breakdown).
Cryxus Limited had, instead, leased fully furnished offices. While the savings in lease rentals were more significant, however it saved (INR 132 million) across power, maintenance and upkeep, cleaning, safety, maintenance, fire prevention, facilities, and amenities even after bumping them up (based on average per employee) (click here for full details).
Rs 132 Million
Rs 17.8 Million
AdSpeed a limited liability partnership, landed up paying out INR 9 million more per partner in profit for the year compared to the previous year (INR 8.9 million of which was solely attributable to Hybridization).
Cryxus Limited, a listed corporate, increased its annual EBITDA by INR 344 million, INR 301 million of which was solely attributable to Hybridization.
Rs 301 Million
Cryxus saw its stock rewarded by shareholders. With a majority of its 9.1 million shares listed on the stock exchange, Cryxus saw its stock price jump by INR 590 per share based on an average P/E multiple of 18 for its industry peers, with a higher P/E awarded the subsequent year.
Hybrid Work, Savings Economics – Employees: Nancy works for AdSpeed Digital and Rehan for Cryxus Limited. Nancy and Rehan are a young working couple with a 2-year-old infant (Sarah) living in Mumbai…
