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They are local firms tying up with Mumbai/Delhi/Bangalore based national law firms. Because chennai is not a city where biglaw thrives.
Khaitan Chennai is basically Assentio Legal a Chennai firm who tied up or merged with Khaitan.
I don't think they pay same salaries as Khaitan in Bangalore/Mumbai/Delhi.
Khaitan Chennai is not just Assentio Legal. When KCO was set up, Vivek Sriram also moved from Mumbai with his clientele to head the Chennai office. They also added Pramod from SAM Delhi to their partnership. Both Vivek and Sriram are great people to work with and have solid GC work which is better than even a few teams from other offices put together.
The same goes for Aarthi Sivanandh (ex-JSA. now a senior partner heading AZB Chennai) and Kavita Vijay (ICUL Chennai).
While the pay is not comparable to other locations (there is still a minimum of 30-40% gap), the work has surely become on par. Please look at the credentials and the nature of work being done recently by the partners in Chennai before dissuading.