Ace Update June 2014

INDIA’S FIRST MONTHLY NEWS & ANALYSIS ON CONSTRUCTION & INFRASTRUCTURE MAHENG/2011/38968

ARCHITECTURE

CONSTRUCTION

ENGINEERING

Inside... 

The Big Architect Architect Brinda Somaya



interviews Amit Gossain, JCB India Rajinder Raina, Escorts CE



EPC Player Of The Month Satish Parakh, Ashoka Buildcon



expert column Building insulation: opportunities and challenges

An I-Tech Media Publication

Vol 4 Issue 5 • Pages 76 • June 1, 2014 • `100/- • www.aceupdate.com

COVER STORY

COVER STORY

CONTENTS

40

Waterproofing industry upbeat on future Industry leaders talk on the challenges and growth opportunities for waterproofing sector

Railways

The Big Architect

16

Interview Architects are guardians of built and unbuilt environment: Brinda Somaya

26

Roads & Bridges Industry Analysis Road building equipment sector on a revival course

CE Finance

34

Interview

With no coalition pressure, infra awaits bold reforms

JCB India ready to meet growing demand Amit Gossain, EVP – Marketing, Business Development and Corporate Affairs at JCB India gives an overview of road building equipment sector in India.

30

“Govt looks in a mood to do business”

32

the big project

EPC Player Of The Month

36

India’s first Double Decker Flyover opens

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

Interview Building with Confidence Satish Parakh, Managing Director, Ashoka Buildcon digs deep to unearth the bottlenecks for infrastructure sector

Rajinder Raina, GM - Marketing, Escorts Construction Equipment talks about the industry’s expectation from new government in centre.

After a decade-long delay, the 6.45-km sixlane Santacruz-Chembur Link Road is finally open. The travel time between Chembur and Santacruz is expected to drop from the current 90 minutes to 20 minutes

4

Interview

D K Vyas, CEO, Srei BNP Paribas outlines the pressing issues that the new government should address with utmost priority.

A detailed analysis on industry trends

28

China plans a 13,000 km rail line to America The proposed ‘China-Russia plus America line’ would take two days travelling at an average speed of 350 kms per hour

Architect Brinda Somaya talks about conservation projects she is currently working on and what architecture means to her

20

global update

Chemicals & Coatings

44

industry analysis Margin improvement: necessity for Indian construction chemicals Experts from Tata Strategic Management Group give an overview of the industry trends

16

20

26

32

36

44

48

52

Chemicals & Coatings

48

special report Green Product Certification to transform Indian market

Real Estate

60

52

Here’s Indian real estate sector’s wishlist for new govt The real estate sector expects that the new government will take initiatives to address the bottlenecks which will result in muchawaited favourable growth

CII – Godrej GBC launches the Green Product Certification programme to bring-in transparency, enhance credibility and empower customers

Insulation

Realty Bytes

62

expert column

Industry analysis GST and REIT: the tough two GST and REIT are the two major policy challenges for the new government which can dramatically change the macro economic scenario

Building insulation: opportunities and challenges N. Srinivas, Mentor at Lloyd Insulations (India) explains the opportunities and challenges in building insulation methodology

Software

56

Firms adopt BIM to reduce construction delays and cost overruns; usage to pick up in India

24

WR 240: cold recycling and soil stabilisation made easy

BIM is a process that uses “smart” and “computable” 3D model of the project to enhance its design, construction and operation

43

PERMA delivers world-class construction chemicals

64

Wienerberger Brick Award 2014 recognises creative standards

66

Samir Surlaker bags award for his contribution

Smart Homes gaining momentum With building automation systems, building industry appears to be entering another era of change

68

Premier: leading in concrete blocks and landscaping pavers

Green Buildings

58

Promotional Feature

Technology

industry analysis

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

5

Editorial

Now, it’s the time to deliver

www.aceupdate.com

I-Tech Media Pvt Ltd, 15/2, 2nd Floor, Chandroday Co-Op Society, Swastik Park, CST Road, Chembur, Mumbai - 400071. (India) Tel.: +91-22-32682214 / 15 EDITOR* Subhajit Roy Email: editor@aceupdate.com EDITORIAL Afreen Sayed ADVERTISING Kashmira Shah Email: kashmira@i-techmedia.com Call: +91-9322640154 SUBSCRIPTION subscribe@aceupdate.com Telephone: +91-22-3268 2214/15 *responsible for selection of news under PRB Act

Building 100 new cities enabled with the latest in technology and infrastructure, thrust on rural development to improve village level infrastructure, launching Diamond Quadrilateral project of high speed train network are some of the promises the new govt. have to fulfil to revive growth and create employment in the country. So, infrastructure development will remain a key issue for the new government at the centre.

The country’s policy making and their implementations were in doldrums due to coalition ‘pressure’ during the past three decades. Expressing his reaction on the recent election result, ASSOCHAM President Rana Kapoor said, “It is first time after 1984 that a single party would be able to get majority on its own giving the ruling combination a huge elbow room to take bold economic decisions which at times may appear to be not so popular.”

Though the previous govt. initiated some policy reforms to boost the infrastructure, it could not achieve the desired target due to policy deadlock and lack of funds.

A stable govt. at centre without any coalition pressure is expected to implement better policy reforms successfully. However, to deal with the ongoing fund crunch, the new government to end the current chaos in the public private participation area and encourage investor confidence. The new govt. also has the challenge to disentangle stuck projects worth ` 7 lakh crore.

In this issue, a wave of optimism has been reflected in our in-depth analysis on construction chemicals industry and road building equipment sector. Real estate sector also expects that the new government will take initiatives to resolve the issues on real estate on top priority which will result in favourable growth of the sector.

We have to wait and watch how the new govt. takes its advantages and remove the bottlenecks in nation building.

We are keen to hear your comments. Please write to us at editor@aceupdate.com

Printed and published by Subhajit Roy on behalf of I-Tech Media Pvt Ltd. and printed at Print, Process Offset Printers, B-23, Royal Industrial Estate, 5-B, Wadala, Mumbai-400031 and published from I-Tech Media Pvt Ltd. 1, Gayatri, Karumari Amman, Chheda Nagar, Chembur (West), Mumbai - 400089. Editor: Subhajit Roy All rights reserved. While all efforts are made to ensure that the information published is correct, ACE Update holds no responsibility for any unlikely errors that might occur. The information on products and services / technology on offer is being provided for the reference of readers. However, readers are cautioned to make inquiries and take their decisions on purchase or investment after consulting experts on the subject. ACE Update holds no responsibility for any decision taken by readers on the basis of information provided herein. Tel.: +91-22-32682214/15, +91-9821667357

6

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

Applications

Insulation for building construction | Cold Storage & Cool Rooms | Refrigeration Insulation | Retaining Walls FOR TECHNICAL AND COMMERCIAL ENQUIRIES:

PREMIER BARS PVT. LTD. UNIT II

Corporate Office:4th Floor, Nidhi Kamal Tower Ajmer Road, Jaipur - 302006, Rajasthan | Tel : 0141 4053444, Fax : 0141-4053450, E : sales@pavcon.in Works: Plot No. 004-008, DTA Zone, Mahindra World City, Ajmer Road, Jaipur

Toll free No

1800 120 4060

Equipment JCB posts third-best profits ever Construction equipment major JCB has achieved its third most profitable year in its 68-year history in 2013 despite a fall sales.

The company’s earnings stood at £313 million on an EBITDA basis (2012: £365 million) on turnover of £2.68 billion (2012: £2.70 billion). JCB’s machine sales stood at 66,227 compared to 69,250 in 2012.

Lord Bamford, Chairman, JCB said, “The global market for construction equipment was more challenging throughout 2013 but I am delighted that, despite difficult market conditions, JCB delivered a strong performance and achieved the third highest profit in its history.”

He added, “Turnover remained virtually unchanged year-on-year but volume and earnings were adversely affected by a slowdown in emerging markets, notably India, where JCB has a strong presence. This was further compounded by adverse currency movements in some economies.”

Turnover growth in the UK, Middle East and Africa during 2013 helped JCB to offset reductions in India, Europe and the Far East.

He also said, “2014 has got off to a mixed start. Some markets are showing improvement, with stronger demand in the more developed markets of the UK and North America, which is offsetting weaker demand in the more fragile economies of Asia, Latin America and Russia. Political uncertainty created by elections in India and Brazil is also having an impact on markets.”

Volvo India appoints Kamal Bali as MD Volvo India has appointed Kamal Bali as Managing Director with immediate effect.

“The ambitious targets of the Volvo Group now make it necessary to reinforce the structure of the joint company, Volvo India Private Limited (VIPL), and to develop a strong presence in the Indian context,” the company said issuing a statement.

Mr Bali, based in Bangalore, would report at the Volvo Group level to Niklas Gustavsson, EVP, Corporate Sustainability and Public Affairs, and Chairman of the Board of Volvo India, and operationally to Philippe Divry, President VIPL. An engineering graduate from the Indian Institute of Technology (IIT), Mr Bali began his career with Eicher Group in 1981. Later, he headed the sales function for Escorts’ Tractors and Claas Harvestors, followed by the position of CEO and MD for Same Deutz-Fahr India and Escorts CE. Prior to joining Volvo India, he was working as the President and CEO of LeeBoy India Construction Equipment.

8

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

ElectroMech holds Mumbai edition of its knowledge series ElectroMech recently held the Mumbai edition of its ‘Knowledge Forums’ as a platform to interact with its customers and encourage an exchange of ideas.

The forum was addressed by ElectroMech’s senior management.

Along with the updates on the company’s products and services, Tushar Mehendale, Managing Director of ElectroMech gave an insight into the company’s operations and its focus areas for future growth. The company has introduced safest lifting solutions suitable for use in hazardous, explosionprone areas, in association with STAHL CraneSystems GmBH, Germany.

According to Mr Mehendale, “The highest reliability EX products from STAHL, which are proven worldwide, are backed in India by the industry expertise, nationwide network and acclaimed service support of ElectroMech.”

ElectroMech has partnered with Zoomlion to manufacture and sell their range of tower cranes in India through a joint venture. “The strategic alliance between ElectroMech and Zoomlion aims to combine the advanced technology and manufacturing expertise of Zoomlion with ElectroMech’s strong base in India and its strengths in sales and service to provide top-class tower cranes to Indian customers,” said Arun Bishnoi, Director, Sales, ZEIPL. ElectroMech’s service subsidiary Cranedge was set up to cater to the void in the market for professional offerings in the after sales service space. According to Raj Shrivastav, CEO, “Cranedge was born out of the commitment to provide trouble-free crane ownership experience to not just our customers, but all crane owners.”

100 %

ACCOLADES at only 1% COST!!!

KML Cla CPVC ssic Pipes

1�

(25mm

)

ASTM DSDR 2846 11

For Ho Water t & Cold Distrib ution

CPVC Pipes & Fittings

ASTM Pipes & Fittings

Composite Pipes & Fittings

While the cost of Pipes & Fittings is only about 1-2% of the entire cost, faulty piping can play havoc with the entire beauty & stability of any project. Depend on the quality of Kisan to compliment your intelligent designs & world-class construction. Our products, having the coveted BIS mark, are manufactured in ISO 9001 Certified manufacturing facilities & are designed to withstand varied on-site conditions. With Kisan Pipes & Fittings, you are assured of getting only accolades for your state-of-the-art projects.

In addition to Plumbing Systems, Kisan also manufactures Underground Drainage Systems, Electrical Conduit Pipes & Fittings, Rainwater Harvesting Systems, Suction/Delivery & Garden Hoses, Braided Tubing, Ball & Foot Valves, Solvent Cement & Rubber Lubricants, Flush Tanks & Toilet Seat Covers, HDPE Pipes & Fittings, Agricultural Pipes & Fittings, Submersible Riser Main Pipes with C.I. Adapters. Casing Pipes, Micro Irrigation Systems (Drip & Sprnklers), Moulded Furniture & other Moulded Articles.

SWR Pipes & Fittings

Real Estate BBCL launches premium project in Chennai Chennai-based real estate developers BBCL has launched a premium residential project at OMR, Thoraipakkam, Chennai.

Located near the AKDR golf village, BBCL Ashraya offers 2-BHK and 3-BHK apartments in a sprawling land with extensive greeneries around. Ashraya offers state-of-the-art amenities, including, multi-purpose hall, mini theatre, meditation hall, club house, swimming pool, steam & sauna, gym, children’s play area, central courtyard with party lawn, cricket net practice area and badminton court.

Ashraya is well connected to all the key landmarks and major public transportation systems.

With work spaces mushrooming all over OMR and beyond, Ashraya will minimise traffic woes, delays and frustrations. Experience the smooth, hassle free ride to work or any leisure place within minutes from BBCL Ashraya.

BBCL Ashraya has facilities such as round the clock security, with power backup for common amenities like lift, common area lighting, security system, etc and auto power backup for lights and fans within apartments.

It has provisions for rain water harvesting, sewage treatment plant, visitor’s car parking and restrooms for servants and drivers.

Neerav Parmar takes over as BAI Mumbai Chairman Neerav Parmar has taken over as the Chairman of Builders’ Association of India (BAI), Mumbai Centre for 2014-15.

He was the Hon. Secretary of BAI Mumbai Centre for 2010-11 and 2011-12 and Vice Chairman for 2012-13 and 2013-14.

BAI was formed in 1941 in Pune with guidance from Brigadier Jackson, who also allotted office space in the Military Compound. The then office of BAI, aptly named ‘Jackson Hut’ in his memory, is still being used by BAI. During the last 73 years since its inception, BAI, the apex all India association of civil engineering construction contractors and builders with more than 150 Centres spread across the length and breadth of India has 30,000 plus members with its headquarters at Mumbai.

10

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

Shapoorji Pallonji Real Estate enters Bengaluru Shapoorji Pallonji Real Estate (SPRE), a division of Shapoorji Pallonji, launched its premium residential project – ParkWest in Binnypet, Bengaluru.

Spread across sprawling 47 acres, this gated community has a large part of its expanse dedicated to green open spaces.

ParkWest has magnificent 18 storey towers scaling a height of 60 metres. The opulent flats have spacious configurations of 2 & 3 bedroom apartments, garden duplexes and penthouses ranging from 1245 sq. ft. to 2921 sq. ft. All of the apartments enjoy ample sunlight, fresh air and breath-taking views from every corner.

ParkWest offers world-class amenities in the project which include a world-class clubhouse and sky lounge, the company claims.

On this occasion, Kekoo Colah, CEO of Shapoorji Pallonji Real Estate said, “Our project, spread across 47 acres with 80 per cent open landscaped greens, puts the garden back into the Garden City, bringing back the Bangalore of yore.”

Building Material Ambuja Cements gets accreditation for tests from NABL Ambuja Cements’s Mumbai-based Concrete Futures Laboratory (CFL) has received accreditation for tests in concrete from National Accreditation Board for Testing and Calibration Laboratories (NABL), an autonomous body under the central government’s Department of Science and Technology.

According to Ambuja statement, it is the first cement company in the country to achieve this accreditation for it lab. The company received accreditation for 13 tests.

“The NABL accreditation will provide CFL with a clear differentiation in the market place,” said Ajay Kapur, MD and CEO, Ambuja Cements.

Government of India has authorised NABL as the accreditation body for testing and calibration laboratories. It has been set up with the aim to provide government, industry associations and industry with a scheme for third-party assessment of the quality and technical competence of testing and calibration laboratories.

NABL accreditation system complies with ISO/IEC 17011:2004 and Asia Pacific Laboratory Accreditation Cooperation (APLAC) MR001. Based on evaluation of NABL operations by APLAC in 2000, NABL has been granted signatory member status by APLAC and International Laboratory Accreditation Cooperation (ILAC) under their Mutual Recognition Arrangements (MRAs). Under these MRAs, the reports issued by NABL accredited laboratories are considered to be equivalent to reports issued by laboratories accredited by (currently) 76 accreditation bodies in 64 economies.

ACC launches concrete that can help reduce electricity bills ACC launches ACC Thermalcrete, a product designed to provide thermal comfort in the premises. A layer of it is usually applied over the top layer of the roof slab, so that the heat or cold is not directly allowed inside the building. This kind of arrangement keeps the building cool in summer and warm in winters.

The trapped insulation in the concrete layer provides a bed for energy control in the cement. Energy consumption is reduced to great extent due to this mechanism.

According to ACC, the advantage of using such a kind of cement is it reduces the power consumption and thereby helps to save non-renewable resources. The density of Thermalcrete is lesser than the normal concrete, which makes it an easier concrete to use. Its durable, and the benefits lasts a long time and it is usually a one time work.

It is used in residential as well as industrial purposes to provide thermal comfort. It can also be used as partition walls, whenever the heavy weight needs a replacement with some cement lighter in nature.

12

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JSW Steel inaugurates CRM2 facility in Karnataka JSW Steel has launched its Cold Roll Mill 2 (CRM-2) facility at Vijayanagar works, Karnataka.

The new CRM-2 complex, with a production capacity of 2.3 million tonnes per annum (MTPA), is the most sophisticated plant by configuration with capability to produce high strength and advanced high strength steel, both in uncoated and coated categories and wider width up to 1,870 mm. The CRM-2 facility includes a continuous annealing line, which is the first to start operations in India.

JFE Steel, which has a 15 per cent stake in JSW Steel, has been providing technical assistance to develop various grades of auto steel, including steel for external panels for automobiles, to meet the high demand from both domestic and international arena.

Dr Vinod Nowal, Deputy Managing Director, JSW Steel said, “The CRM-2 is equipped with the latest technology to produce continuously annealed CR up to a strength level of 980 MPA (UTS) and auto galvanising line with capability to produce both GI and GA up to a strength level of 590 MPA (UTS). At present, the high strength and higher grades are mostly imported.”

The phase-2 of the CRM-2 plant consisting of 0.95 MTPA CAL-2 is targeted to be commissioned during first half of FY16. The new plant will be the cornerstone of JSW Steel’s growth story enhancing the share of value added products in the product basket of company.

Products :-

Factory : Gat No. 355, 353/1, At Post Talegaon, Talegaon Indore Road, Tal. Dindori, Dist Nashik 422202. Maharashtra, India Tel. : +91 2557 255002/3/4. Cell: +91 8550994358 / 7798885276.

E-mail : factory.flyocrete@gmail.com. Website : www.flyocrete.com

INFRA Punj Lloyd bags ` 1,270 cr expressway project in Yemen Punj Lloyd has received a Letter of Award for the construction of 42-km, 2x3 lane dual carriageway project between Doraigh and NoubatDokaim from Yemen govt. This project, valued at Rs 1,270 crore, is funded by Saudi Development Fund (SDF).

Located 60-km from the port city of Aden, the scope of work for this project comprises construction of 210 lane-km new carriageway greenfield project. The work involves excavation of over 10 million cubic meter, road paving, surface sealing, two major concrete overpass bridges, box & pipe culvert construction and associated infrastructure work.

Pardeep Tandon, President & CEO, Buildings & Infrastructure, MEA & CIS, Punj Lloyd said, “This is the first major expressway project for Punj Lloyd in the Middle East. Our existing expertise in this sector coupled with our strong assets of equipment and manpower, was a strong determinant in our winning this order amidst tough global competition.”

Yemen is also a repeat country for Punj Lloyd which has already executed work on the offsites and utilities of the prestigious Yemen LNG project. The dual carriageway project is reflective of the Group’s intent to aggressively pursue global infrastructure opportunities.

With this new order, the group’s order backlog stands at ` 23,376 crores. The order backlog is the value of unexecuted orders on December 31, 2013 plus new orders received after that date.

Adani acquires Dhamra Port

HCC Concessions starts NH34 toll operations

Adani Ports and Special Economic Zone (APSEZ) announced that they have executed a definitive agreement with L&T Infrastructure Development Projects Ltd. and Tata Steel Ltd. to acquire 100 per cent stake in the Dhamra Port Company Ltd. (DPCL) at an enterprise value of ` 5,500 crores.

HCC Concessions Ltd, the infrastructure development arm of the HCC Group, has commenced commercial operations of its ` 1,169 crore, Baharampore-Farakka Highway, the first leg of the largest PPP highway project in West Bengal and part of National Highway-34 (NH34). The Baharampore Farakka Highway is a 101 km stretch with a 25 year concession period. The four laning of this highway has involved four major bridges, 12 minor bridges, four rail-over-bridges, three grade separators, nine passenger underpasses, two toll plazas and 137 crossdrainages.

The Dhamra port is a deep draft, all weather multi-user port located on the East Coast of India in the state of Odisha. The port commenced operations in May 2011 and handled a total cargo of 14.3 million tonnes in FY14. The port has two fully mechanized existing berths, 63 kms of a private rail line connecting the Bhadrak station to the main trunk line and has already received environmental clearance for the development of 12 additional berths.

“The Dhamra port acquisition now gives us an opportunity to replicate the development and phenomenal growth of the Mundra port on the eastern coast of India and thereby continue to execute on our pan India strategy” said Gautam Adani, Chairman of the Adani Group.

14

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

On the occasion, Arjun Dhawan, Director, HCC Concessions said, “Besides easing congestion and greatly enhancing safety, the widening of NH-34 will facilitate greater connectivity between Kolkata and the country’s interior, especially the land-locked Seven Sisters in the North East.”

HCC Concessions was awarded the contract to develop three contiguous sections of over 250 kms length between Baharampore to Dalkhola on NH34 in West Bengal on a DBFOT basis in 2010, involving a total investment of over ` 3,200 crores. The ` 1,378 crores second leg of 102 km between Farakka and Raiganj is also nearing completion and is expected to begin its toll operations later this year.

The Big Architect II Interview

Architects are guardians of built and unbuilt environment: Brinda Somaya “Architecture, for me, is about connecting and creating spaces between man and the earth,� says Architect Brinda Somaya

H

istoric conservation can make cities more competitive because historic buildings give more eminence to the area when compared to the standardised skyscrapers that dominate the cities. Architect Brinda Somaya has created contemporary spaces using traditional designs and made conservation her belief. In an interaction with Afreen Sayed, Brinda talks about conservation projects she is currently working on and what architecture means to her.

Can you describe the evolution in your work from when you began until today?

I believe that development and progress must proceed without straining the cultural and historic environment. My philosophy is that the architect's role is that of guardian - his is the conscience of the built and unbuilt environment. This belief led to the formation of Somaya & Kalappa, the company I founded and have headed for the last three decades. My work includes corporate, industrial and institutional designs that extends to public

16

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

Colaba wood

Interview II The Big Architect Rajabai Clock Tower

Apart from treading the land lightly for the new buildings we build, recycling and restoration of our existing built heritage has always been an integral part of my practice spaces, which has been rebuilt and sometimes reinvented as pavements, parks and plazas. These include the Colaba Woods, Ganeshpuri Temple and a slew of pavements in South Mumbai and the reconstruction of an entire village in Kutch.

Commenting on the diversity of projects, I would like to say, each project is different and each has to be part of its natural environment.

What is the biggest challenge the profession of architecture is facing as far as India is concerned?

Change is continuous in any practice and while changes occur the basic philosophy of my firm and its beliefs remain firmly grounded. I must admit that living and working as an architect in India has involved challenges much more varied in nature than conventional architectural projects in most parts of the world. In the olden days we thought of man (mankind) when cities were being built. Today we think of floor space index, building codes, budgets and so on but often leave out the protagonist of the space i.e. man.

TCS House - Mumbai

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

17

The Big Architect II Interview Goa Institute of Management in Goa

Architecture, for me, is about connecting and creating spaces between man and the earth. Architecture is about places, it’s a collective memory. Architects are guardians of the built and unbuilt environment, and must be able to work with the same commitment in urban as well as rural areas.

I enjoy diversity and the challenges of greenfield projects as much as conserving old heritage buildings.

What projects are you currently working on?

In conservation and restoration projects

we are restoring the famed Rajabai Clock Tower and the Library Building of the Mumbai University. We have just won the competition for the restoration and upgradation of the historic Louis Kahn Buildings of the Indian Institute of Management, Ahmedabad (IIM-A). In new work the Tata Consultancy Services campus at Indore has just begun construction and two phases of the Goa Institute of Management in Goa are now complete and the third has begun. Several other projects like the Textile Gallery at the Chhatrapati Shivaji Maharaj Vastu Sangrahalaya,

(CSMVS) formerly known as the Prince of Wales Museum in Mumbai is underway as well as the proposed expansion to the B.D. Petit Parsee General Hospital in Mumbai.

How do you bring environmental approach to modern designs?

Our ancient scriptures have always told us to tread the land lightly and I think that is a belief which I have had from the very first building I designed over thirty years ago.

This was long before “green” became such an important word in an architect’s practice.

Apart from treading the land lightly for the new buildings we build, recycling and restoration of our existing built heritage has always been an integral part of my practice.

What advice would you give to young architects?

Young architects are doing good work and I have full faith that they will protect our environment and our heritage and yet create contemporary design and take it forward into our new tech-savvy world. As an architect you need to understand people’s needs and anticipate changes. One needs to focus on the aspirations of young people and the changes happening in technology and their lives.

I have always been very optimistic and there are great young architects in our country today. I am sure they will take India on to the world map of architecture. n

Alapatt Heritage, Kochi

18

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

CONSTRUWELL INDUSTRIES Manufactures of Construction Chemicals, Wall putty & Protective Coatings

Mfg. & Mktd. by :

CONSTRUWELL INDUSTRIES (AN ISO 9001-2008 CERTIFIED COMPANY)

Off: 12, Iris Building, Mirchandani Garden, 100 feet Road, Sun City, Vasai (West) 401202. Dist: Thane.

Ph: 9552730728 / 7875151703 / 9860372315 / 0250-3299450 Customer Care: 9552730728 E-mail: construwell@yahoo.in, mohanpillai36@yahoo.com Website: www.hawksconstruwell.com Mumbai I Thane I Navi Mumbai I Pune I Latur I Kolhapur I Akluj I Sangli I Hyderabad Kolkata I Barauni I Ranchi I Kochi I Vapi I Surat I Coimbatore I Katihar I Goa.

Roads & Bridges II Industry Analysis

Road building equipment sector on a revival course

T

he road building equipment sector witnessed a bumpy ride in the past few years. But with the country planning to construct number of new roads and bridges and rebuild the old ones, the road looks smooth ahead. The construction plan has also thrown open new opportunities for construction equipment manufacturers.

ACE Update provides a detailed analysis on road building equipment sector. The report highlights performance during last fiscal, key challenges, outlook for current fiscal, expectation from the new government etc.

Financial Year 2013-14 The construction equipment and machinery industry has been hit by slow economic growth in last few years. Demand for construction equipment and machinery suffered a slump as investment in construction slowed.

20

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

“The demand for the road building equipment sector was sluggish in 2013 due to the slow pace of infrastructure investments, weak business confidence, and continued environment and regulatory issues. The 20km a day road building program from the UPA government entered its fifth year without much success. It was estimated that road projects worth ` 1 lakh crore were stalled at various stages of implementation,” says Ajay Shankar, Country Manager, Caterpillar India.

According to Tushar Mehendale, Managing Director, Electromech, “The last few years have been quite interesting for the Indian equipment industry. On account of the infamous policy paralysis, the growth of the capital goods industry was affected. In the last fiscal, the order finalisation was being delayed due to uncertainty surrounding several factors.”

After taking a heavy beating, the road building equipment sector looks to be on the path to recovery

However, Amit Gossain, EVP - Marketing, Business Development and Corporate Affairs, JCB India Ltd opines, “Road construction equipment segment is showing steady improvement year on year. Supported by Pradhan Mantri Gram Sadak Yojana (PMGSY) and other smaller district roads as well as road maintenance, the road construction sector continues to do comparatively well as opposed to other sectors that are facing the stress of economic slowdown.”

Challenges and solutions Road building equipment sector had been seriously affected by the economic crisis in last few years, but recently some movement in the demand for road building equipment has been witnessed in the market. Some of the projects which were stalled seem to be getting back on track.

Industry Analysis II Roads & Bridges Mr Mehendale says, “Overall the Indian economy continued limping into the start of 2013. The capacity utilisations at several factories were at record low levels. Furthermore, the scenario on the infrastructure projects front was also not promising as a lot of projects continued to be stuck in regulatory imbroglio. As a result of this, the market size shrunk quite dramatically in 2013 and this had a direct implication on the business generation possibilities.”

He adds, “But lately, customers have started discussions on expansion plans which had been shelved for a long time. As a result, there is a definite buildup of action in the industry. Our reading of the market is that the economy is slowly turning around, fuelled by the advent of a stable growth oriented government at the centre.”

Talking about challenges Mr Gossain says, “The current pace at which the road projects are taking off is relatively slow due to multiple reasons such as lack of coordination between central, state and local agencies, policy delays, financing issues, land acquisition issues, environment clearance issues etc. Supreme Court’s ruling to delink environmental approvals from forest clearances will definitely help in kick starting several roads and highways projects.”

Mr Shankar says, “The demand from road construction projects appeared promising given NHAI’s ambitious expansion plans.

However, difficulties in achieving financial closure, land acquisition and issues related to environment and forest clearance continued to hamper progress.”

Innovation With urbansiation, demand for infrastructure and cut throat competition in the market, innovation has become an important part of construction equipment sector. Companies are regularly innovating and manufacturing equipment that meet their clients’ requirements.

Amit Gossain, EVP - Marketing, Business Development and Corporate Affairs, JCB India Ltd

Supreme Court’s ruling to de-link environmental approvals from forest clearances will definitely help in kick starting several roads and highways projects

JCB’s wide array of construction equipment ranging from backhoe loaders to excavators to compactors is extensively used in road projects across India. “JCB offers the finest road compaction equipment (VMT115, VMT860 and VMT330). VMT 330 Tandem Roller is a latest addition to the portfolio. VMT 330 Tandem Roller is a highly versatile compactor with high compaction forces,” informs Mr Gossain. VMT 330 Tandem Roller is ideal for compaction in restricted spaces as this has got high kerb clearance – rural and township roads, highway side shoulders, canal lining, service roads and trench compaction.

efficiency and reliability. These cranes are available from SWL 2MT to 250MT in varying spans, traverses, lifts and speeds depending on the clients’ requirements. “Our Gantry cranes are typically used in bridge building – in casting yards where the segments are cast as well as for laying the segments itself,” Mr Mehendale says.

Caterpillar’s Cat 320D Series 2 hydraulic excavator is a versatile machine in its size class. It is configured in a way that is suitable for all applications.

Further he adds, “Three ElectroMech Gantry cranes cover the handling requirements of this entire project. A 60/12MT gantry crane is used to construct the flyover. A 12MT auxiliary hook of this crane is used to install and dismantle all supporting structure for

ElectroMech Gantry cranes meet the specific requirements for road building with utmost

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

21

Roads & Bridges II Industry Analysis Indian economy looks to be on the path to recovery.

JCB VMT860

the flyover and the concrete structures. This also ensures that the workers have easy access to the entire structure of the flyover.

The main hook with SWL 60MT is used to lift the precast concrete blocks and place them precisely on the top of the support pillar.”

Technology solutions and safety features As mentioned earlier, country is planning to construct number of new roads and bridges all over. And with these construction plans the question arises, are companies well-equipped technologically to take up these road projects? Technology and safety features are some of the important factors in the field of construction equipment industry.

“All of our cranes come equipped as a standard with redundant safety electric limit switches as well as mechanical barriers to ensure that the hook path does not stray dangerously out

Tushar Mehendale, Managing Director, Electromech

Our reading of the market is that the economy is slowly turning around, fuelled by the advent of a stable growth oriented govt. at the centre

22

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

of the intended work envelope. Overloading protection is standard in our ABUS range of cranes. The safety brakes used on the cranes are rated for one million operations on full load and ensure a lifetime of worry free duty,” says Mr Mehendale. “Not only do our end products incorporate all safety features, but our people are also extremely safety conscious when working on the shop floor while manufacturing cranes as well as when working at the site and erecting the cranes.”

Cat 320D2 is a robust machine capable of working in all kinds of applications. Some of the advantages of the Cat 320D2 are that the field-proven C7.1 engine that is designed for ease of service and can work efficiently at altitudes up to 4,000 meters (13,120 feet).

Cat 320D2 is capable of reducing the fuel consumption up to 15 per cent in heavy-duty applications. It is ‘easy on fuel’ and ‘hard on dirt’ and comes with a smaller and highefficiency pilot pump and newly designed main pump that boasts hydraulic efficiency by 3 per cent.

JCB VM115 is equipped with dual antivibration isolation system which reduces the vibration, thus making it more comfortable for the operator to operate the machine. This machine also has 3 point pre-loaded antivibration pads which also minimises the effect of vibration.

Outlook for current fiscal According to industry reports, earlier this year the government had given its consent for reviving stalled highway projects, providing better connectivity and restoring highways. After taking a heavy beating, the

Recently, about 7,200 kms of state roads were accorded national highway status with adequate funding for upkeep of roads.

Furthermore, it was stated that there would be adequate funds available for improvement of the remaining existing national highway network of 21,271 kms.

The National Highway Authority of India plans to award 6,000 kms of road projects in 2014-2015 with a combined net worth of ` 55,000 crore.

Commenting on his outlook for current fiscal Mr Shankar says, “We believe the formation of a new Government will provide the much

Ajay Shankar, Country Manager, Caterpillar

One of the foremost matters on the new government’s agenda should be to make best use of its first 100-day period after assuming office

needed impetus to the economy and this sector.”

Mr Mehendale says, “We are seeing an increase in the levels of enquiries from different industry sectors. Infrastructure construction industry which was very dormant is now waking up again and ‘quick delivery’ orders are becoming a norm once again. Apart from this, our inhouse expertise of crafting solutions and customising equipment ensures that we can cater to any customer requirement.

We definitely foresee some momentum in demand in the upcoming months and are eagerly looking forward to it.

New government’s priority The government is responsible to promote 24

g

Roads & Bridges II Industry Analysis 22

f

growth, and the overall well-being of a country. India is battling economy issues which had seen weakened infrastructure.

Companies dealing in construction equipment expect the new government to form a simplified framework, taxation system, resume stalled infrastructure projects, etc.

Mr Shankar observes, “One of the foremost matters on the new government’s agenda should be to make best use of its first 100-day period after assuming office. Procedural and structural reforms should be implemented to expedite environment clearances which are a lengthy and complicated procedure in India.”

Electromech - bridge building

He further added, “An institutional and simplified framework with measurable outcomes should be provided for PPP. Increase in foreign domestic investment in insurance and banking sectors and reduction of interest rates by 150 - 200 base points are some of the issues the new government should work on a priority.

with large scale infrastructure projects that will change the face of the country.

Commerce will be easier and much more efficient. Efficient and simple taxation systems like GST need to be implemented on top most priority.” He also suggests that incentives should be given in terms of easy land availability and clearances for projects above a certain size. This will boost foreign investment in the country and Indian industry can emerge as major industrial force on the global stage.

Mr Mehendale points out, “The government of India needs to push ahead relentlessly

“The new Government’s primary agenda should be to de-bottleneck stalled

infrastructure projects on ground and increase investments in the sector. It should firstly create a regulatory body to carry out active monitoring and to streamline end-to-end coordination.

Secondly, implementing the Goods and Service Tax should also be on the agenda for the Government in-charge. It will give the necessary boost to country’s economy by breaking tax barriers between states and integrating India through a uniform tax rate. This will boost investor confidence and help in increasing domestic as well as overseas investments in India,” Mr Gossain concludes. n

WR 240: cold recycling and soil stabilisation made easy Wirtgen’s new WR generation offers greater output, high cost-efficiency and easy handling

M

aximum quality every time – the WR 240 already delivered this level of performance when it was introduced to the market in summer 2012 as the first representative of the new-generation cold recyclers and soil stabilisers.

New standards in cold recycling and soil stabilisation With the world’s largest line of recyclers and soil stabilisers, Wirtgen has the right solution for every application. For example, the WR 240 is considered to be an allrounder for the heavy-duty stabilisation of large areas of non-cohesive soil, and for the conservative cold recycling of damaged asphalt layers. A variety of new features

24

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

make it a pioneer in terms of performance and cost-efficiency, and it has impressively demonstrated both of these in practical use in recent months, as the exclusively positive feedback from customers confirms. Despite its higher productivity, the WR 240 consumes significantly less fuel thanks to state-ofthe-art engine management, and therefore considerably reduces costs for contractors.

What is more, their machine operators praise the large, modern cabin, the all-around view it affords, the machine’s. iF product design award In addition to their innovative features, all three models lastly win out with their ultramodern design. The WR 240 even won the iF

WR240 00899 PR Wirtgen won the iF product design award in gold in the category “Special Vehicles / Construction / Agriculture” for the WR 240. The award, one of the most coveted international design prizes, evaluates aspects such as degree of innovation, environmental impact, functionality, ergonomics and product safety.

product design award in 2013 in gold, one of the world’s foremost design prices. n

Railways II global update

China plans a

Bullet train in China

13,000 km rail line to America

The proposed ‘China-Russia plus America line’ would take two days travelling at an average speed of 350 kms per hour

O

ver the years, China has created a benchmark in infrastructure development. Successful execution of high-speed rail line around the country has strengthen the country’s transport network and provided a comparatively easy option instead of a lengthy chore to the commuters.

Now, the country plans to further strengthen its footprint and build an ambitious railway track to operate bullet trains to America through Russia passing through a tunnel underneath the Pacific Ocean to reach the United States via Alaska and Canada.

The project, nicknamed as the 'ChinaRussia plus America line', would run for

26

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

13,000 kms, about 3,000 kms further than the Trans-Siberian Railway. Once completed, the entire trip would take two days travelling at an average speed of 350 kms per hour.

According to the official media, the construction of this rail network connecting China with Myanmar, Laos, Vietnam, Cambodia, Thailand, Malaysia and Singapore is set to commence next month.

The plan is expected to begin with the construction of a 30-km long tunnel connecting China with Myanmar. The 'ChinaRussia plus America line ‘ will cross the

Bering Strait between Russia and Alaska through a 200-km undersea tunnel.

So far, China has completed more than 11,000 kms of bullet train network and more than 12,000 kms of new track is currently under construction. China has also expressed its desire of building a high-speed rail network connecting India and Pakistan.

Also, it is already in discussions to develop a new high-speed railway link across Turkey.

Though this feat of engineering is still in planning stages, it is being considered to be a major game changer once executed as far as the world trade and transport is concerned. n

Roads & Bridges II Interview

JCB India ready to meet growing demand “With strong pipeline of road projects to be awarded by NHAI and state governments, the opportunities for the road equipment manufacturers are sizeable,” says Amit Gossain, Executive Vice President – Marketing, Business Development and Corporate Affairs at JCB India

L

eading construction equipment manufacturer JCB India continues to expand its footprint, explore new markets and fulfil customer requirements.

In an exclusive interview with ACE Update, Amit Gossain gives an overview of road building equipment sector in India. He also talks about JCB’s contribution in this segment.

India’s roads and bridges infrastructure is expected to reach $ 19.2 billion by 2017 from $ 6.9 billion in 2009. How do you look at the opportunities?

Road equipment has seen considerable growth in the past few years. For the current financial year, NHAI plans to award 2,000 km through cash contracts, and is ready with 3,000 km to be bid via the public-private-partnership (PPP) mode.

With strong pipeline of road projects to be awarded by NHAI and state governments, the opportunities for the road equipment manufacturers are sizeable.

JCB offers the finest road compaction equipment through its Vibromax series i.e. VMT 115, VMT 860 and VMT 330.

VMT 330 Tandem Roller is a latest addition to the portfolio. VMT 330 Tandem Roller is a highly versatile compactor with high compaction forces.

This machine is ideal for compaction in restricted spaces as this has got high kerb clearance.

28

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JCB VMT 115 comes with dual anti-vibration isolation system which reduces the vibration thus making it more comfortable for the operator to operate the machine. This machine also has a 3-point pre-loaded antivibration pads which also minimises the effect of vibration.

The 9T Tandem Roller VMT 860 is designed to offer high productivity and reliability with maximum operating economy. Powered by robust, fully tropicalised, low fuel consumption JCB Engine ecoMAX, the ideal combination of static weights, centrifugal forces and amplitudes makes this asphalt roller perfect for a wide range of both soil and asphalt applications, from rolling subbase to finish rolling.

How does JCB fare in such a competitive market?

Currently, the overall economy is facing a slowdown but at JCB, we always plan our business strategy for the long-term and longterm prospects for infrastructure growth are substantial. JCB focuses on strengthening its market share across product categories by constant innovating and launching technologically advanced products, strategically expanding its distribution network and manufacturing base.

JCB offers the finest distribution network in the country. Today, we have 59 dealers, 575 outlets and we will continue to expand our reach. Like JCB, which is a family-owned

organisation; our dealers are also familyowned businesses with whom we have developed a long-term relationship on the basis of mutual trust and understanding.

The aim for JCB is continue to expand its footprint, explore new markets and fulfil our customer requirements.

Are you going to expand your manufacturing capability to meet the additional demand from across the globe?

JCB India is well prepared to meet the growing demand. We have world-class facilities - one in Ballabgarh, Haryana near New Delhi, two in Pune and two upcoming units in Jaipur. With our upcoming Jaipur facility, the idea is to meet the growing demand for construction equipment in the coming time.

What is the status of your Jaipur facility?

The two plants in Jaipur are in the final stages of construction with a combined floor space of over 700,000 sq. ft. We plan to begin with fabrications and will continue to upscale its production facilities as per the market requirements.

Our Ballabgarh facility which is the world’s largest Backhoe Loader plant has the capacity to manufacture 100 machines per shift.

Our 100-acre Pune facility manufactures 4,500 state-of-the-art heavy equipment like Tracked Excavators, Wheeled Loaders and Compactors per annum. n

Roads & Bridges II Interview

“Govt looks in a mood to do business” “Govt needs to identify some infra sector projects for the next 1-2 years and workout some incentive package that attracts construction companies to invest with confidence,” says Rajinder Raina, General Manager - Marketing, Escorts Construction Equipment

C

onstruction equipment industry in India has gone through a very difficult phase during the last couple years. In FY 14, the size of the market was shrunk by about 35 per cent over the previous year.

Rajinder Raina talks about the industry’s expectation from new government in centre.

In 2013, the construction equipment industry in India had hit a record low on y-o-y basis. How do you see the road ahead?

From business perspective, the year 2013 was certainly a year better forgotten for all the players in the CE industry. With the new government in place it is hoped that the projects on hold will get started off and the ones waiting for departmental clearances get the nod in quick time. The outlook is promising and movement in the market place should be visible from September 2014 onwards.

Like many other companies, Escorts CE had also experienced negative growth in FY 14. Why? The fact that the size of the market reduced by about 35 per cent over the previous year, there was no way that Escorts CE could insulate itself totally from the negative growth. However we managed to garner a slightly better market share and thereby

post a negative growth which was less than the industry. Also, there was marked improvement in the most important domain of after sales and service.

From a negative growth in past year, you are targeting 10-12 per cent growth in current fiscal. How are you going to make it?

Our growth during the current fiscal year is pegged upon two things: expected market growth of about 10 per cent and increased market share in backhoe loaders and road compaction equipment. These two put together should give us growth higher than that of the industry.

We are ready with the product portfolios in backhoe loaders and road compaction equipment which should give us increased market share.

Are you going to introduce any new product or technology to support your growth plan?

We are planning to introduce some new variants across the product lines during the current fiscal these products shall incorporate changes in technology, design and other parameters. These changes are based upon the demand coming up from the various project sites.

However, new products introduction is not planned for the first half of the current fiscal year. Our current product portfolio has enough bandwidth to deliver the planned growth for us.

What are your expectations from the new govt. in centre?

From the perspective of the industry

30

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

that we are catering to, sharp focus on infrastructure and road construction will give the desired impetus. The sentiment is already up and the govt looks in a mood to do business. It does not need to re-invent the wheel, decision making at intra and inter departmental levels within defined timelines and the financial closure of the projects should be defined, monitored and measured at regular intervals.

Premium needs to be placed on completion of projects with bonus for early or timely completion and penalty clauses for delay.

What are the issues the govt. should take up on utmost priority?

Road projects need to be put on fast track to avoid cost over runs. Some of the projects which are stuck halfway are to be cleared off on priority. The target should be to use the monsoon period in a manner that road projects can start off by early September. On the infrastructure front, govt has to enthuse the stake holders through some tangible actions and decision making.

This will see lots of foreign investment flow into India which is a must ingredient.

Are you expecting any kind of reforms in the infra sector that will help CE industry to grow?

On the equipment purchase front, funding has become scarce and expensive. Govt needs to identify some infra sector projects for the next 1-2 years and workout some incentive package that attracts construction companies to invest with confidence. Also, some tax benefits on equipment deployed in various infra sector projects would be a big help. The biggest relief of course would be the GST. n

Roads & Bridges II the big project

India’s first

Double Decker Flyover opens I After a decade-long delay, the 6.45-km six-lane Santacruz-Chembur Link Road is finally open. The travel time between Chembur and Santacruz is expected to drop from the current 90 minutes to 20 minutes 32

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

ndia’s first double-decker flyover, part of the 3.5 km long Santacruz-Chembur Link Road (SCLR), has finally been thrown open for Mumbaikars on 18th April. The ` 428 crore project, undertaken under the Mumbai Urban Transport Project (MUTP) of MMRDA, is expected to provide much-needed east-west connectivity in Mumbai.

Starting from Vakola Junction on Western Express Highway (WEH)

and extending up to Amar Mahal Junction near the Eastern Express Highway (EEH), the 6.45-km six-lane road What lies in store at the end of a long wait?

Planned in 2002 and under construction since 2006, the Santacruz-Chembur Link Road missed around a dozen completion deadlines and witnessed a four-fold jump in cost since it was first projected.

the big project II Roads & Bridges

Santacruz-Chembur Link Road: some facts

• 6.5km road a SCLR is to connect Santacruz and Chembur • It is expected to have a double deck fly-over near Kurla Terminus (LTT) • However, approval from the railways for a bridge on the Central Railway line near Kurla terminus is awaited • The construction work commenced in 2003 and was expected to be realy in 2005.

Its progress was stuck becouse of the rehabilitation of project-affected people (PAP) and red-tapism • December 2013 the implementing authorities are now struggling to get the project ready • 45 minutes of travel time will be saved • The SCLR will out pollution as the distance will be less • It will also ease traffic congestion on the Sion-Dharavi road, Eastern express highway and Western express highway.

The Santacruz-Chembur Link Road (SCLR) is aimed to ease traffic snarls at Amar Mahal Junction, Vakola, Sion and Kula areas and will also significantly de-congest the Eastern and Western Express Highways.

The opening of SCLR project will also reduce traffic chaos at Sion and Kalanagar junctions. This will enable commuters travel from Santacruz to Chembur in a mere 1520 minutes. Today, Mumbaikars require anywhere between 60 to 90 minutes to cross this stretch during peak hours.

SCLR – providing three lanes each for up and down traffic – is expected to carry more than 80,000 vehicles per day. The upper and the lower levels of the flyover provide two lanes each for up and down traffic. Footpaths on the lower level flyover are also provided for commuters who intend to cross over from Kurla Station to LT Terminus and vice versa.

The commuters can take Vakola Junction road to reach the upper level of the double decker flyover to reach Eastern Express Highway directly with the help of Amar Mahal Junction flyover. The commuters will take the lower level of the flyover and turn right to reach Kurla Railway Station and turn left to reach Lokmanya Tilak Terminus. The

Rehabilitation The Santacruz-Chembur Link Road project faced innumerable court cases, various issues related to resettlement and rehabilitation, encroachment etc. MMRDA claims to have resettled and rehabilitated more than 3,500 project affected families from Gazi Nagar, Buddha Colony, Sable Nagar, Rahul Nagar

and Indira Colony areas. This included residential, commercial as also religious structures.

Besides this, the authority also shifted 13 MHADA buildings from Tilak Nagar and two MHADA buildings from Netaji Nagar, Kurla.

While the occupants of 13 MHADA buildings from Tilak Nagar were rehabilitated in-situ, the occupants of two MHADA buildings from Netaji Nagar were rehabilitated in BandraKurla Complex.

“The demolition, shifting and relocation of 15 MHADA buildings has been acknowledged as model-case-study in the developing world,” MMRDA states. n

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

33

CE Finance II Interview

With no coalition pressure, infra awaits bold reforms “Most probably centre would lay down some basic minimum criteria which are sacrosanct and which need to be adhered to at all cost and based on that each state will be given the freedom to shape their own policies,” says D K Vyas, CEO, Srei BNP Paribas

S

rei BNP Paribas is a major player in the infrastructure and construction equipment (ICE) financing business in India with a market share of about 30 per cent. In an exclusive interview with ACE Update, D K Vyas observes that the high interest rate regime is hurting the prospects of infrastructure financing. He also outlines the pressing issues that the new government should address with utmost priority.

How do you look at the current pace in infrastructure industry?

I think having a government at the centre with absolute majority is the best thing that can happen for the infrastructure sector.

With no coalition pressure, I now expect a lean and compact cabinet with each minister in charge of multiple related portfolios. For example, if instead of multiple ministries like road, railways, shipping, civil aviation, if there is one ministry of transportation with separate departments for road, rail, shipping, civil aviation, and each being headed by a secretary who would be reporting to the minister – just imagine how efficient the entire planning and coordination process can be. Optimum use of resources can then become a reality in planning and implementing the route networks for various modes of transportation. Similarly, a minister for energy can be in charge of power, coal, oil and gas and maybe mining too.

I have been following the election speeches of Narendra Modi. What I realised is that

34

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

having been the Chief Minister of a state for over a decade, Mr Modi believes in autonomy of the state governments. Thus, I am upbeat that he envisages a greater role for the state governments in shaping the rules and regulations pertaining to issues like land acquisition, environmental clearances, etc.

Most probably centre would lay down some basic minimum criteria which are sacrosanct and which need to be adhered to at all cost and based on that each state will be given the freedom to shape their own policies. Such an approach would be a boon to infrastructure creation. This will set in motion a healthy competition among state governments in attracting investments and that, in turn, will augur well for the overall development of the economy. Thus, I am extremely upbeat about this sector at this juncture. Maybe we should allow this new government some 3-4 months to settle down, and thereafter I foresee the pace of infrastructure to pick up in a major way post-monsoon.

The roads and bridges sector awaits a much-needed thrust. Being one of the major players in the equipment finance industry, what are the difficulties you are facing? What are your strategies in place to deal with the given situation?

While PPP has been the preferred mode of infrastructure creation in India, the present mess in the road sector is also a PPP creation. Both government and private sector need to share the blame. Till 2011-12, the progress of NHDP had elicited interest of

investors from around the world and helped bring in substantial investments into the road sector. However, 2012-13 onwards, weak financial position of concessionaires and developers in the road sector, delays in project clearances, problems in land acquisition, unrealistic bids, faulty traffic projection and a host of other factors emerged as major stumbling blocks for this sector. It is the BOT (build-own-transfer) projects which have been affected the most.

Of late, there has been a growing inclination towards moving away from BOT and instead settle for EPC (engineering-procurementconstruction) projects. However, from our experience, we strongly feel that to continue the momentum in the highway sector, there should be both EPC and BOT projects.

With commercial banks having the maximum exposure to infrastructure projects, the asset-liability mismatch problem forces loan repayment to be front-loaded.

Concessionaires face problems making the payments as revenue from the projects typically grows as the concession matures.

Thus, servicing the loan in the initial years becomes a major challenge. Going forward, a financial structuring of an infrastructure project like a typical BOT-Toll road project can be thought of. Considering the concession period for a BOT-Toll road project of 25 years with a door-to-door debt tenure of maximum 15 years (which is generally the case these days), a financing structure can be formed where the repayment schedule is such that 50 per cent of the total debt is repaid during

Interview II CE Finance the loan period and balance 50 per cent is to be repaid by way of bullet payment at the end of the loan period. The bullet payment shall be made by arranging refinancing of the balance 50 per cent debt, repayable over the remaining concession period. This would help the project in overcoming from the cash flows stress during the entire concession period (i.e. 25 years) as the repayment of debt is practically getting spread out over the entire concession period for the project vis-à-vis 15 years under the present structure.

Of course such an arrangement must be backed up by the government stepping up its role as a public partner by helping land acquisition, getting clearances pertaining to environment, forests, etc. so that private sector is encouraged to invest in road building.

As regards to our approach in dealing with financial stress, I feel the immediate answer to mitigating that risk is prudence. All lenders, NBFC or bank, must act prudently and conduct thorough due-diligence checks on customer profiles before each disbursement. Maintaining credit quality and minimising NPAs are extremely important.

While our disbursement criteria are similar to market practices, our ability to provide customer centric solutions makes us more flexible. Our approach for financing has always been risk based evaluation and primarily from a cash flow perspective. We take a position on the project, our client and the quality of the asset. We, at Srei Group, have consciously reduced our exposure to our strategic customers, as that helps in reducing the concentration risk.

Is the current monetary policy conducive for NBFCs in equipment finance or do you expect norms to be eased further?

The high interest rate regime is definitely hurting the prospects of infrastructure financing. RBI has made its intentions clear that they want to link the policy rates with the Consumer Price Index (CPI) inflation number, and move away from the erstwhile practice of linking it to the Wholesale Price Index (WPI) inflation number. Keeping in mind that CPI inflation is still quite high, I do not foresee RBI going for any cut in policy rate in the next couple of months. At the same time, I do not expect RBI to hike policy rates too, until and unless something drastic happens and inflation shoots up.

Thus, I feel policy rates will stagnate for sometime now.

We believe in a partnership approach, and whenever our customer is facing a problem in servicing the loan, we try to assist in whatever way possible, be it in terms of rescheduling their payment cycle, or restructuring the financing arrangement, or helping them find new projects or redeploying their assets. We are into assetbacked lending and thus the asset itself is a key risk mitigant for us. But repossession of an asset is always the last option for us. Joining hands with the manufacturer partners, we try our level best to address the concerns of our customers, because their growth ensures our growth.

What are your expectations from the new government? What are the pressing issues that the new government should address with utmost priority?

I have already touched upon these points before. I expect infrastructure creation to figure topmost in the new government’s agenda. They should devote the first few months to put in place the right policies.

Also, it must set in motion the stalled infrastructure projects.

of Goods & Services Tax (GST). Direct Tax Code (DTC) but take some more time. But introduction of GST and DTC will bring in a lot of clarity in terms of tax implication for the businesses and that would help in reviving investor interest. In addition, GST can help the central government in mobilising resources which it can then use to productive use. Keeping in mind the tight fiscal situation it is in now, the central government should itself be keen to ensure roll-out of GST. India is a land of entrepreneurs. Thousands of small and medium entrepreneurs scattered throughout the country constitute the backbone of the India growth story. The new government would need to review ‘The Companies Act 2013’ which has introduced a plethora of compliance norms and archaic rules which will make life extremely difficult for India Inc. Due to this Act, even unlisted companies are now expected to comply with multiple norms which earlier applied only on the listed companies. Small unlisted players neither have the expertise nor the wherewithal to understand and comply with these norms. Leave aside the smaller players, even the bigger entities are finding it difficult to comply with all the norms and thinking of investing abroad. Precious entrepreneurial talent will get nipped in the bud and there would be a flight of capital too. Thus, review of the Act should be another item in the new government’s priority agenda. n

The government needs to urgently work towards consensus-building among all stakeholders to ensure the introduction

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

35

EPC Player Of The Month II Interview

Building with Confidence “We are aiming a turnover of ` 5,000 crore in the next couple of years,� says Satish Parakh, Managing Director, Ashoka Buildcon

A

shoka Buildcon, a multi-faceted infrastructure development company in India, is striving to expand in new markets. In an exclusive interview with ACE Update, Satish Parakh talks about the company - its journey, success story and roadmap. He also digs deep to unearth the bottlenecks for infrastructure sector. He feels that India needs to revisit its bureaucratic set-up.

In roads and highways sector, Ashoka Buildcon has successfully executed a number of projects establishing new benchmarks. Please elaborate on the journey of the company.

Ashoka Buildcon Ltd. has come a long way.

Starting off as a small time contracting firm, today Ashoka Buildcon has emerged as a leader in highway infrastructure development.

started constructing commercial buildings in the regions of Nashik, Pune and Mumbai.

The period between 1986 and 1997 was an important phase in our journey as we diversified into construction of industrial plants and institutional buildings. This diversification proved to be a major turning point. At that time industrial construction was not considered to be a lucrative business to engage in, but we had a different view. We were foreseeing a boom in the industry as well as the educational sector and expecting several opportunities

to open up. The scenario eventually turned out to be the way we had expected and our company earned a first movers advantage in this sector.

Our fast execution speed and high-quality helped us become a preferred choice for multinational companies and we were able to work for major brands in the country including Mahindra and Mahindra, Samsonite, Godrej Pilsbury, Hindalco. The company became a national player and we were winning and executing projects in various parts of the country.

Our origins can be traced back to 1976, when our Founder Chairman Ashok Katariya quit his government job and laid the foundation of the company in order to fulfil his vision.

From 1976 to 1982, the company was engaged in contract based assignments for government and semi government bodies.

Though the jobs were small, the company was getting noticed for its speed and quality of work.

The next level for the company was the period between 1982 and 1986, where we

36

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

Bridges on river Roopnarayan Assembly with guiding nose launched

Interview II EPC Player Of The Month 1997 was the year when Ashoka Buildcon took a major leap by venturing into the infrastructure development sector through public-private partnership projects. Yet again it was a sector where builders were hesitant to participate. We faced challenges particularly in terms of raising finances from banks for completing our first BOTbased projects. We were still successful in completed it ahead of schedule. Since then there has been no looking back and we are today positioned as one of the leaders in the BOT-based highway sector with a project portfolio of 28 BOT projects which is the largest by any private player in the country.

In the year 2010, Ashoka Buildcon went public and the IPO was oversubscribed by over 15 times. The company is now listed on BSE and NSE. In 2010, we added another sector to our profile. We ventured into the field of power transmission and distribution. In the very first year we bagged orders worth over ` 1,000 crore. Today all our projects

are being executed ahead of schedule and we are competing neck to neck with well established players in the sector.

How has this journey been helpful in achieving milestones and paving the way for its progress and growth in the industry?

Our journey is a reflection of our working methodology. We have always believed in staying ahead of the curve by identifying opportunities before others do and get first movers advantage. This has been a critical factor for our success.

We are the first unlisted company to acquire investment of ` 100 crore from IDFC. IIF also invested over ` 200 crore in Ashoka Buildcon. Recently, SBI Maquarie invested ` 800 crore in our projects. L&T formed a joint venture with us for a prestigious highway project in Nashik, Maharashtra.

Such associations have been benefited the entire industry.

We have learnt that to stay ahead of the competition one has to be equipped with

We are open to the idea of foreign collaborations.

Our business development team is looking into such initiatives. If we find something suitable to our profile, we may venture into the same updated technology, advanced machinery and a very dedicated work force. Our efforts are to ensure that we are always strong in all these areas. We have our own R&D wing which enables us to explore newer and better ways of completing projects.

We have always accepted challenges and the calculated risks we have taken have earned us dividends. Our in-house expertise in all the aspects of construction empowers us

EPC Player Of The Month II Interview attrition rate is fairly low when compared to the sector at large. Most of our management team members comprise of individuals who had joined the company at trainee levels and have worked their way up the ladder.

These individuals have emerged as assets for the company who take ownership of their assignments and deliver results.

We also have in-house training division that grooms fresh candidates. Our Ashoka Training Institute offers short-term courses for supervisory levels which have proven to be very effective in increasing the effectiveness of our work force.

Bridges on river Roopnarayan 2nd Bridge on the adjacent side

to be minimally dependant on third parties which results in increased control over project execution.

Our milestones include a list of several projects which have been completed ahead of schedule without any compromise in the quality of work. Some of the projects were considered impossible due to technical and geographical difficulties yet our team was able to complete them with splendid results.

We have recently completed two major bridges on river Rupnarayan in West Bengal. The project was so difficult that for 10 years construction companies were not willing to take up the challenge. We completed the two bridges (1.1 kms each) in 12 months which was 18 months ahead of schedule.

a record by constructing a 90 tonnes cast in-situ bridge within a period of only 38 days against an allotted time of 12 months.

This changed the entire scenario in terms of the time that was allotted to builders for completing projects.

Similarly we promoted the milling technology, which again brought a great change in the Indian highways sector.

Presently we are working on rain water harvesting systems to prevent the rain water on highways from getting wasted.

We are hopeful that it too will emerge as a trend changer in the sector.

Which are your major focus areas as far as EPC business is concerned?

With respect to EPC business, we will continue to focus on national and state level highways construction. We believe that the coming years will be very good for the sector.

Similarly, the highway we built for RIDCOR in Rajasthan was very challenging as it was faced by extreme climatic conditions. Our team made optimum utilisation of time and resources and completed the project 95 days ahead of schedule, resulting in a bonus of ` 1.90 crore.

Also we shall be bidding for power transmission and distribution projects.

We are already present in the states of Maharashtra, Chhattisgarh and Tamil Nadu and are looking forward to penetrate in other states as well.

We have been trendsetters in many ways for the industry. Our major contribution is in reducing the time that was estimated for completion of civil engineering projects.

To quote an example, in 1999 we created

Availability of manpower is a major concern. How is Ashoka Buildcon addressing this issue?

Our human resources management has always been a strong department. Our

38

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

What other challenges is EPC sector facing today?

Our country seriously needs to revisit its bureaucratic set-up. The whole sector needs to be put on a fast forward mode when it comes to approvals, settling disputes and addressing major issues which require government intervention.

Land acquisition, requisite approvals and uncertainties with regards to escalation in prices of raw material, manpower and other resources continue to hamper this industry.

We also feel that the new land acquisition act is going to be a challenge for the government because it may lead to increase in land prices without addressing the issue of dispute resolutions and time for acquisitions.

Are you looking for any foreign collaboration to strengthen your position in the overseas market?

We are open to the idea of foreign collaborations. Our business development team is looking into such initiatives. If we find something suitable to our profile, we may venture into the same.

What is your target for next couple of years?

We are aiming a turnover of ` 5,000 crore in the next couple of years. However, our target is not just about increasing the volume of business; we want to continue to be a major contributor to the industry in terms of national development, environmentally beneficial construction methodologies, improving the levels of occupational safety and building of a better society. We want to help in nation building. n

-

Shree Cement Ltd.



The Oberoi Nirma Ltd. Adani Group Radisson Blu Hotel Group Hilton Hotel Group GDCL PNC Infratech Ltd. Bestech India IL&FS Rail Ltd. IL&FS Infrastructure Ltd. IOTL Infrastructure Ltd. Romsons Group Manglam Cement Ltd. BE Billimoria & Co. Ltd.

Vishwas

Bond of trust

Contact us:B-115 1st Floor, Vijay Vihar, Phase-2, Rohini, Delhi-85 Ph-011-64659814 Branch office:Vill. Radawas, Teh-Shahpura Distt.-Jaipur- Rajasthan

 Our Quality: - Civil Engineering’s in application of EXPOXIES, SILICONES & POLYURETHANES IN Structure Buildings, Damp & Water Proofing & Restoration, Chemical resistant, Load Bearing Industrial flooring & heavy machinery grouting.

Specialist In: Basement, Roofs, Lift Pits, Water Tank, Grouting, Gunnting, polyurethane, Thermal Insulation Hot & Cold Insulation, Terrace Gardens, Dust Proofing Swimming pools, Sunken Areas, Water Fall & tunnels, Repairing & Strengthen of Structure & Etc.

Ramesh Vishwas- #9891770111, #9999476964 Email- Vishwaswaterproofing@gmail.com, Vishwaswaterproofing@hotmail.com Website:- www.vishwaswaterproofing.com

Waterproofing II Cover story

Waterproofing industry upbeat on future T

he construction chemical industry in India is growing rapidly, and waterproofing, a niche segment of the chemical industry, is picking up the pace too. Time and again neglected or forgotten, waterproofing is one of the most essential jobs involved in building a structure. Waterproofing system plays a major role just like any other parameter when it comes to constructing a structure because waterproofing is an important feature when it comes to the durability and safety of the structure.

Here’s a thorough analysis on waterproofing industry: the current market scenario, the challenges, the growth drivers, and the future outlook.

Current status Due to the rising infrastructure and construction activities in the country, the

40

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

waterproofing industry has definitely shown positive growth; and this growth has opened a far-reaching demand for technological advances in waterproofing materials and products over the years.

FICCI observes that the market size for construction chemicals has the potential to grow to ` 5,000 crore over the next few years if the industry promotes itself professionally and increases the level of awareness in the construction industry. Sunny Surlaker, Head Admixtures Division, MC-Bauchemie (India) says, “Constructors should be convinced that usage of construction chemicals is a benefit and not undue cost. Further, based on statistics, waterproofing systems form roughly 13-14 per cent of our industry sales figure. With a growing industry, we anticipate the demand for waterproofing systems to grow positively.”

Mostly, waterproofing is not given much importance in the initial stage of a building construction. However, Deepak Kanitkar, GM–Technology and Business Development, Construction Chemicals Division, Chembond believes waterproofing is the next biggest market after admixtures. He observes, “Whether it is repair or new construction, there is a lot of demand in waterproofing products such as sealants, waterproof coating, membrane, polymers and other repair material.”

Racy Sidhu, CEO, Kryton Buildmat Co. Pvt. Ltd says, “The waterproofing industry has been growing at an estimated 9.2 per cent CAGR per year; as compared to the 5-6 per cent GDP growth this is almost double the annual rate and is only set to go up.

Year 2014 – 2015 is a pivotal year for the economy due to high hopes being begged on

Cover story II Waterproofing

Sanjay Bahadur, Global CEO, Construction Chemicals, Pidilite Industries

There is an urgency to inculcate the right material usage, right dosage and the correct application to ensure that we create healthy structures cum-insulation system, to meet the need of complex high-rise structures.

Market status Talking about the market share Mr Kanitkar says, “If the construction chemicals market size is ` 2,500 crore, the waterproofing market should be of ` 700 - 800 crore which includes waterproofing materials, membranes.”

Waterproofing, a niche segment of the chemical industry, is expected to grow rampantly a NDA-led government. Business is looking forward to industry reforms to increase

Racy Sidhu, CEO, Kryton Buildmat Co. Pvt. Ltd

Year 2014 – 2015 is a pivotal year for the economy due to high hopes being begged on a NDA-led government

Mr Sidhu observes, “International brands continue to dominate the space. Quality, longevity and ease of application will continue to influence product choice.”

foreign direct investment which will ramp up construction and large infrastructure projects.”

Commenting on the market size and growth status Mr Bahadur said, “The Indian construction chemicals market size is at ` 4,000 crore in 2014-15 which is pegged at about 10 per cent of the Chinese market.

As far development in the construction chemicals industry goes – there has been a strong growth rate of 17 per cent per annum.”

Waterproofing market in India is at a very premature state, since the bulk of the construction sites use traditional methods like brickbat coba, mud puska which have their own limitations. Hence, there are huge opportunities exist. However, Sanjay Bahadur, Global CEO, Construction Chemicals, Pidilite Industries observes, “There is an urgency to inculcate the right material usage, right dosage and the correct application to ensure that we create healthy structures.”

Key challenges Though the waterproofing market has witnessed significant growth during the past, it is facing a few challenges. Lack of awareness on efficient use and quality of waterproofing materials is the major challenge. Also, customers do not prefer spending much on this term and prefer to go for cheaper solutions. Beside this, lack of skilled manpower is one of the biggest

Pidilite believes that green construction is the current trend in construction chemicals and waterproofing solutions market in the country. The company has launched LEC (Low Energy Consumption), a waterproofing-

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

41

Waterproofing II Cover story challenges and a major constraint faced by the sector.

creates confusion instead of proper selection of the right waterproofing products.”

According to Mr Bahadur, “About 85 per cent of contractors and builders are not aware of the key advantages of using construction chemicals and have limited knowledge on their proper applications.” Dr. Fixit provides training and supervision at site for right application practices.

Commenting on the challenges the waterproofing industry facing today, Mr Surlaker opines, “The focus in waterproofing has been exclusively on materials and guarantees. Correct materials, trained and skilled manpower and correct application machinery and tools are keys to excellent waterproofing. Across the general market, a lot more awareness and training needs to come into play to ensure durability of waterproofing and structures. This points to the fact that awareness on correct usage of construction chemicals still poses as a challenge.”

Experts also feel waterproofing is still a neglected job in most of the buildings whether it is residential or commercial.

According to Mr Kanitkar workmanship and availability of funds are probably major issues. He said, “Waterproofing comes at the end of the construction, people are exhausted in their budget at that time and they don’t have enough money to do waterproofing job.

So lot of people make compromises and the quality of material used are not that good.

Workmanship too is a big issue in India.”

According to Mr Sidhu, “The quality of construction in India is improving with time, but still lags from international standards.

Engineers, governments and leading construction companies are demanding higher quality standards. It is difficult to put a price on quality and purchasing departments are trained to drive price in a downward direction. This, at times, allows inferior products to be utilised in projects which ultimately negatively affect the Indian consumer. There is also a significant amount of misinformation provided which

Growth drivers According to a report on construction chemicals published by FICCI in January 2013, the Indian construction opportunity is expected to grow by 1.9 times over the next five years. Customer awareness and company specific activities such as innovation, market reach and focus on technology will act as growth drivers for the waterproofing segment.

Mr Sidhu believes new product development of greener and more economic products is one of key growth drivers. He said, “Bitumen membranes that once ruled the waterproofing landscape are now considered environmentally unfriendly. Across the world green is the new motto and construction companies are adjusting to the demands of sustainable products.”

He further added, “Customer awareness and demand for international standard of living are also driving the growth. They want dry and mildew free living spaces that are healthy and vibrant. Urbanisation too is leading to the need of simpler and more economical solutions that last a lifetime.”

Deepak Kanitkar, GM–Technology and Business Development, Construction Chemicals Division, Chembond

...there will be higher growth for waterproofing materials than the other products in construction chemical range

42

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

Mr Surlaker says, “From an industry perspective, fresh investment into construction will provide a boost to the industry as a whole and also to the waterproofing segment. We also believe with the advent of our Construction Chemicals Manufacturer’s Association, our industry is pushing forward the drive for awareness on correct usage of construction chemicals.

Once this wave catches on, it would be a big boost in driving the growth of our industry,

Sunny Surlaker, Head Admixtures Division, MC-Bauchemie (India)

With the growth in construction, the market slowdown is receding.

The future outlook for the industry and waterproofing segment looks extremely positive the waterproofing segment and our company forward.”

Future outlook Due to infrastructural development in India, waterproofing industry is being considered as a flourishing industry. With companies taking initiatives to promote the idea of efficient use and quality of waterproofing it is expected the industry will grow rampantly in the near future.

Mr Sidhu states, “The future looks bright especially for crystalline waterproofing as more and more architects and developers set out to create beautiful buildings that they are proud to put their names on. The companies that will win satisfied customers understand that quality, integrity, service and professionalism are the key differentiators. Customised solutions and new products are the way forward in today’s India.”

Commenting on the future outlook for the waterproofing industry, Mr Kanitkar says, “A lot of old structures will come for repair. Also, seeing the current quality of construction, the cycle for repair will be shorter. So, there will be higher growth for waterproofing materials than the other products in construction chemical range.”

“With the growth in construction, the market slowdown is receding. The future outlook for the industry and waterproofing segment looks extremely positive,” Mr Surlaker concludes. n

Promotional Feature II Chemicals & Coatings

PERMA delivers world-class construction chemicals

P

ERMA Construction Aids, an ISO 9001 - 2008 certified company, is manufacturing and marketing various construction chemicals of international standards, all over India and neighbouring countries. PERMA offers the pro-modern construction chemicals to cater to all critical applications in the civil engineering industry.

“The growth factor and performance criteria for building products are expected to increase multi-fold in the 21st century.

To bridge these gaps between performance expectation and the availability of quality construction chemicals, professionals with decades of experience in this field have joined hands to take up this challenge under the banner of PERMA," the company said.

The product range of the company consists of polymer-based tile-fixing adhesives and coloured joint fillers, range of waterproofing chemicals, integral waterproofing compounds for concrete and mortars, water repellent coatings, structural and non-structural

bonding agents, repair additives for structural rehabilitation based on SBR and acrylics, range of admixtures for concrete, non shrink grouts for machine foundations, floor hardeners and sealers, epoxy floor self levellers, toppings and coatings, among others. In addition, the company has various product ranges such as PERMA Seal, PERMA Guard, PERMA Bond SBR, PERMA Crackfill, C-Tone Filler and PERMA Bond AR. The company plans to launch waterproof ready-to-use plaster high-strength structural repair powder for rehabilitation works along with polyurethane injection grouting material and pumps for injecting polyurethane. The company feels opening of B-class cities for construction chemicals are the primary growth drivers for the type of PERMA business model.

“Construction chemicals market is growing at the rate of 30 per cent per annum. The company business network is through channel partners stationed all over India. They in

turn supply material to dealers, contractors, applicators, builders etc.,” the company said.

The company’s clientele includes major PSU companies such as Indian Oil Corporation, Jawaharlal Nehru Port Trust, Nuclear Power Corporation, Larsen & Toubro, Ennore Port, Air India, Airport Authority of India and Hindustan Petroleum Corporation Ltd. The company strives to build sustainable relationships with customers, by satisfying their evolving needs, safety and lifestyle through the employees whose entrepreneurial spirit and ambition is fuelled by the culture of pride, learning, earning and fun. The products and services reflect innovation, become quality benchmarks and provide real value for money.

The policies and practices are fair, transparent and constantly improving to maximise customer satisfaction and achieve market leadership. n Contact: Email: info@permaindia.com www.permaindia.com, www.permaindia.net

Chemicals & Coatings II industry analysis

Margin improvement

necessity for Indian construction chemicals C

onstruction Chemicals, as the name suggests, are chemical compounds used in construction activities. These compounds belong to specialty segment of the chemical industry and can be used either in existing construction projects or in new construction projects either to impart specific properties to the structures or to make construction more efficient. Based on end use applications, these compounds can be broadly classified into five categories.

A growing market Indian construction chemicals industry currently stands at ` 3,600 crores and has grown at a CAGR of 17 per cent from 2007 to 2013. Admixtures constitute majority of the market with 42 per cent share. Flooring and waterproofing agents constitute 14 per cent share each. Chemicals for repair and rehabilitation constitute 12 per cent

44

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

9,500

of the market while adhesives and sealants constitute the remaining 18 per cent of the market (Fig 1).

Segments

Sub-segments

Concrete Admixtures

Ligno based, *SNF & SMF based, *PCE based

Water Proofing

Polyurethane based, Bitumen based, Polymer – SBR, Acrylic

Flooring Compounds

Epoxy Floor hardeners, Polyurethane coatings, Polyurea based

Repair & Rehabilitation

Cementitious repair mortars, polymer repair mortars, epoxy based resin mortars

Miscellaneous

Sealants, Grouts, Adhesives

*PCE: Polycarboxylic ether; SNF: Sodium Naphthalene Formaldehyde; SMF: Sulphonated Melamine Formaldehyde

16% 1,400

2,100

2007

2010

3,600

2013

2020

Fig 1: Construction chemicals market, India (` Cr)

Key growth drivers Going forward, the industry is expected to maintain its growth momentum driven by untapped potential of the market and growth in construction industry over the next 5-7 years. Also, increasing awareness and adoption of international standards would lead to usage of higher performance products. Moreover, changing regulatory environment which incentivises energy efficient or green buildings and discourages the usage of on-site concrete mixing in metros and tier 1 cities is further expected to increase demand.

industry analysis II Chemicals & Coatings

While fragmentation in the construction chemical industry is likely to get addressed from inevitable consolidation in the market in coming years, immediate need for companies is to improve their margins and have a business model which provides expected margins consistently, experts from Tata Strategic Management Group explain

As per TATA Strategic estimates, the industry is expected to grow at a CAGR ofapprox. 15 per cent till 2020 to reach ` 9,500 Cr. Growth rate can increase to CAGR of 20 per cent if certain regulation like off-site concrete mixing becomes mandatory.

is low regarding benefits of construction chemicals when used appropriately. High value products have limited demand and are Low entry barrier

` 1,800 Cr

900 Cr Next Top ~ 20 Companies 25%

Top ~7 companies 50%

Capital Intensive

High volume, low margin

Challenges still remain The industry faces multiple challenges which can impact the growth rate of the industry. Consumer awareness in India ~ 200 Companies 25%

used only by premium construction projects.

Furthermore, industry lacks in relevant consumer standards for construction. All this

Low volume, low margin

Fragmented

High volume, low margin

Market Size: ` 3,600 Cr

Market Size: ` 9,500 Cr

EBITDA margin: 10%

EBITDA margin: 15%

No. of players: 230

No. of players: 100

Share of top 7 players: 50%

Share of top 7 players: 60%

Low volume, high margin

Consolidated

900 Cr

<70%

Fig 2: Construction chemicals market, India (` Cr)

Total market share

<70%

Fig 3: Chemicals market overview

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

45

Chemicals & Coatings II industry analysis has resulted in a under developed market in India when compared to other countries, such as China, which accounted for 42 per cent of the global construction chemicals consumption in 2012.

The one major challenge from the supply side is that the construction chemical industry is highly fragmented with the top 7 players accounting for ~50 per cent of the market; next 20 players ~25 per cent and the remaining 25 per cent comprises of small and unorganised players (Fig 2). Low capital investments, high growth rates and localised nature of the business are the key reasons for high fragmentation. Such situation along with absence of standards leads to price wars between manufacturers and lower margins for the overall industry.

Future Possibilities TATA Strategic expects the construction chemicals market to shift towards consolidation in the future. The market is expected to grow to ` 9,500 crores by 2020 with top 7 players accounting for ~ ` 5,700 crores. With the presence of large MNCs, vying for their position in the fast growing market, we expect the awareness levels to improve. The number of players competing is expected to reduce and the industry is likely to move to an improved EBITDA margin levels (Fig 3).

Strategic Imperatives While consolidation will happen over time, in the short to medium term, improving margins is the need for the sector to ensure sustainability of business. We have detailed below four key levers which can help companies improve their margins ( Fig 4).

Understand Value Chain • Companies need to understand the value chain in detail and explore how to position • Premium paying segments Need, Willingness, Drivers • Opportunity size Margin pool • Margin sustainability of segments Are margins for long term?

• Pricing strategy Price elasticity, scenario effects Competition, product lifecycle • Discontinuity Substitutes, regulation, technology • Value addition Premium variants, certifications

46

JUNE 2014

ARCHITECTURE

CONSTRUCTION

ENGINEERING

10% 5% 0%

14% 10%

9%

7-9%

Player 1

Player catering to all product segments

12%

15%

4-7% Player 2

Player 3

Player 4

Player catering to a specialty product segments

Player A Player catering to small infrastructure project

Player B

Player C

Player D

Player catering to large infrastructure & premium real estate projects

Fig 5: EBITDA margins w.r.t. product mix and customer segments

their products. Margins for a company can significantly increase if their products are sold in company’s own brand verses products being sold as generics.

• Companies also need to evaluate where in the value chain they can provide value added products. There are several opportunities but success depends upon strength of company’s technical sales team and their brand recall across focus regions • Our estimates reveal that backward integration can improve the EBITDA margin by 5-10 per cent and therefore evaluating possibilities of backward integration will be a crucial factor in developing a more profitable business model.

Evaluate Operational Costs • Both direct and indirect costs need to be evaluated and benchmarked against industry standards. This will help identify specific areas of improvement for companies vis-à-vis overall industry and companies can focus their efforts on improving selected metrics. Such focused optimisation exercises yields better results in the short to medium terms.

Assess Product Portfolio • Companies understand that their product portfolio plays a critical role in determining the overall EBITDA margins.

However, given the intense competition,

Value Chain

Product Portfolio

Operational Costs

A C E UPDATE

18%

15%

Customer Segments

Fig 4: Levers to improve margins

EBITDA margins w.r.t. customer segments

EBITDA margins w.r.t. product mix 20%

• Products positioning End-user/ Distributor/ Trader • Customer relationship enhancement Value added services, customised products, Joint developments with end-users • Direct material costs Zero based costing, yield improvements Process optimisation, alternate sourcing • Indirect costs Beachmarking exercises • Conversion costs Energy costs, repairs and maintenance

it is imperative for companies to understand at a deeper level pricing strategy of their products. To achieve right pricing in market, several factors need to be understood such as price elasticity of their products vis-à-vis demand, any existing or upcoming discontinuities in the market, and available variants of their products • It is often seen that number of products sold by companies are too large. This leads to a large but ineffective portfolio.

Companies need to move their business model to a portfolio which is in tune with the requirements of Indian market and has “just enough” products given companies capability to manufacture and serve the market.

• TATA Strategic analysis shows that companies enjoyed higher EBITDA margins (14-18 per cent) when targeting speciality segments as compared to players serving only the major segments like Admixtures.

Therefore, companies need to determine which specialty segments should be their focus and why (Fig 5).

Evaluate Customer Segments • Not all customer segments have the same decision making pattern. Companies need to critically assess their focus customer segments and cater to segments which are willing to pay a premium consistently. A segment which may look attractive today may not be the same six months later if the entry barriers are too low. For eg: quality than cost and thus are willing to pay a premium for quality construction chemical products. TATA Strategic analysis shows that players focusing on these segments were able to achieve a higher EBITDA margin of 12-15 per cent.

• Since Indian market has a relatively low base for construction chemicals, companies, while defining their focus customers segments also need to evaluate

which other countries or geographies should they focus to ascertain critical mass which is required to make their business sustainable.

Way forward The construction chemical industry has shown a healthy growth in the past and is expected to continue this growth in the future. However, high industry fragmentation and lack of awareness among end users pose a considerable challenge for the companies. Low entry barriers and lack of standards create fly by night operators which depress the overall margins for the segment. While consolidation in the segment will happen over a period of time, immediate need for companies is to improve their margins and have a business model which provides expected margins consistently. TATA Strategic has identified four key levers to improve margins which are: • Understanding value chain • Operational costs benchmarking • Product portfolio optimisation • Focus customer segments.

Depending on companies’ current business model and capabilities, they can improve their profit margins by focusing on one or more of these levers.

About TATA Strategic Management Group Tata Strategic Management Group, setup in 1991, is the largest Indian owned Management Consulting firm. We enhance client value by providing creative strategy advice, developing innovative solutions and partnering in effective implementation. n

Authored by_

Manish Panchal, Practice Head – Chemicals, Energy, Supply Chain and Sustainability TATA Strategic Management Group

Charu Kapoor, Principal - Chemicals TATA Strategic Management Group

Binay Agrawal, Project Leader - Chemicals TATA Strategic Management Group

Also contributed to the article, Keerthy P, Associate Consultant at TATA Strategic Management Group Chemicals Practice.

Chemicals & Coatings II special report

CII â&#x20AC;&#x201C; Godrej GBC launches the Green Product Certification programme to bring-in transparency, enhance credibility and empower customers

Green Product Certification

to transform Indian market M

ajor cities in India are witnessing expansion of its boundaries and the infrastructural growth is at its best.

With this massive infrastructural construction underway, resources of the cities are put under stress. Energy requirements for these cities are skyrocketing which places a huge burden on the already stressed out state electricity boards.

sensitive, CII-Sohrabji Godrej Green Business Centre has established the Indian Green Building Council (IGBC).

huge and greening this enormous market is what green product certification is trying to achieve

The council encourages, builders, developers, owners, architects and consultants to design and construct green buildings thereby enhancing the economic and environmental performance of buildings.

Energy stress is not the only by-product of growth. Water availability and waste management has grown to cause more serious problems to cities. Ground water has reached alarmingly low levels in several cities and disposal of waste generated from both residential and commercial buildings is fast becoming an environmental hazard.

The green building movement in India has been spearheaded by IGBC since 2001, by creating awareness amongst the stakeholders. The council has been instrumental in enabling 2.06 billion sq.ft. of green buildings in the country.

Green Product Certification Green Product Certification aims at market transformation for green products in India.

By certifying green products, the visibility of green products in the market would increase thereby transforming the market as whole for green products.

With India witnessing a rapid infrastructure development, preserving the environment poses a host of challenges. To enable the construction industry environmentally

48

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

The green building space is growing at an exponential rate and by 2020 India would host 10 billion sq.ft. of green building space. This 10 billion sq.ft. of green building space, would host materials worth of $ 250 billion. The market for green products is

Why Green Product Certification Traditionally Indian product manufacturers have been relying on international ratings for certifying their products as green. Since the cost associated with an international certification is high, product manufacturers generally shy away from these ratings.

Also since there are no certifications, the customers had to rely only on the claims of the manufacturers and there is no transparency.

50

g

Chemicals & Coatings II special report 48

f

To bring in transparency, credibility and customer empowerment, CII – Godrej GBC is launching the Green Product Certification.

Benefits of Green Product Certification • A system to measure and certify “greeness” of a product • Bring product transparency • Customer empowerment • Differentiate the sustainable manufacturers from the commercial manufactures • Spur the demand for the Green products in building sector • Encourage manufacturers to manufacture only green products.

The Green Product Certification would point to products that are eco- and healthfriendlier than comparable products.

Certificate is only awarded to products which – from a holistic point of view – are of considerable benefit to the environment and, at the same time, meet high standards of health, and occupational protection.

Holistic approach A comprehensive approach from raw materials to end of life of products is considered for

50

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

the rating system. The product is rated for its environmental friendliness right from the raw material stage. The manufacturing process, packaging, and recycling are being considered for the certification. Therefore the certification program provides an excellent platform for the manufacturers to showcase their product environmental performance to the consumers.

Green Products Council Green Product Certification is a voluntary, consensus based, and market-driven program and is designed to address national priorities. The Green Product Certification program of CII – Godrej GBC would involve all the stakeholders like architects, developers, product manufacturers, testing agencies and consumers.

The overall certification program will be guided by Green Product Council. The council would comprise of all stakeholders and council would be chaired by R ParasuRaman, Past Chairman, Indian Green Building Council and Past Vice Chairman, World Green Building Council.

Mr ParasuRaman has played a pioneering

role in the spread of the green building movement.

Vision of Green Product Council The vision of the council is to build an environment centric certification system which would empower customers with product information and also help them to choose products ranging from daily use to industrial use.

Green Product Certification workshop CII – Godrej GBC has conducted a stakeholder workshop on 6th May in Mumbai. The main objective of the workshop was to take the views and inputs from all the major stakeholders and decide on the next steps.

There was an overwhelming response for the certification program and several manufacturers have volunteered for the pilot certification.

The workshop revealed that there is an immediate need for a green product certification in India. Product manufacturers felt that the certification program can help to transform the market for green products in India. n

Insulation II expert column

A

s we all know, we are in a global and local environment, which is extremely sensitive to energy and green issues. Being the 4th largest emitters of greenhouse gases, India must realise that we are always within the crosshairs of those who are implementing climate change policies - most of the time facing adverse political compulsions within each country.

Green buildings have now become the buzzword wherever we go. If we are not positioned somewhere in this ecosystem, we are likely to be left out in the cold!

In every activity, there is a quest towards making our operations more energy-efficient and sustainable. Contemporary building design offers enormous scope to reduce energy usage in the built environment.

Thermal insulation plays a very important role in this pursuit, whether it is: • For insulation of the building envelope itself to limit energy loss to the atmosphere, or • For effective insulation of the devices and systems we deploy for ambient temperature control (HVAC systems) or for appliances we use to sustain our lifestyle.

The role played by insulation in our daily lives and challenges involved are not immediately appreciated by most of our users and agencies responsible for building projects. This explains the extraordinary casualness with which design, selection and implementation of insulation work is handled in a typical building project.

Antilia, Mumbai

Building insulation: opportunities and challenges

Thermal insulation plays a key role to reduce energy usage in the built environment. N. Srinivas, Mentor at Lloyd Insulations (India) explains the opportunities and challenges in building insulation methodology 52

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

Building insulation as an exact science Various challenges and opportunities present themselves if we want to keep abreast of issues such as: • Energy-efficiency in the face of high cost of energy and a scenario of depleting energy resources. Insulation is the major player in improving energy availability by reducing loss of heat or cold.

• Durability to ensure and protect the interests of owners and other stakeholders. Insulation, when selected right, has undergone time tested evaluation for durability.

• Conformance to green building standards - being a barrier against energy loss,

expert column II Insulation insulation promotes sustainability.

By promoting thermal and acoustical comfort, insulation improves productivity of the occupants to optimum levels. â&#x20AC;˘ Updated design ensures safety against loss of life and property due to fire, wind or storm etc â&#x20AC;˘ Conservation of water is ensured by adoption of totally dry construction (e.g. dry walls), use of renewable sources of energy is made possible by limiting loss of energy to the minimum levels achievable. â&#x20AC;˘ Sustainability issues in keeping with present environmental concerns, since the industry employs manufacturing processes which are constantly being upgraded to meet new environmental norms even as they evolve.

New opportunities At no other time have we been exposed to a more dramatic set of changes than what we see today. Incentives can be created for a scientific re-look at everything we have been doing in this domain to create highperformance buildings. We need to deliver enduring value to the user through better use of building science.

Shunya-Net Zero House

Whether newly built or retrofitted, highperformance buildings begin with envelopes that involve increased thermal efficiency and weather integrity. These give greater assembly complexity with wider material choices.

To meet these challenges, designers, architects and builders must get the building enclosure details right the first time, starting with the earliest stages of schematic design, continued through detail engineering, benchmarking and actual construction. At the end, users

Insulation II expert column may also be exposed to many alterations in lifestyle during occupancy itself.

Evolving best practices in design and methods to manage construction details would yield an engineered result of a built environment with superior hygrothermal performance.

Science of high-performance assemblies Performance of effective thermal envelopes depends on examination of: Thermal issues • Optimum positioning of building • Roof and wall alignments • Disposition of thermal barriers • Heat flow pattern • Understanding thermal bridging • Minimising heat flow through windows Air flow issues • Continuity of air barriers • Air tightness • Gaskets and seals - their service life Water percolation issues • How water can move through building fabric • Continuity of water barriers • Capillary breaks • Managing bulk water, capillary water, and drying Vapour transmission issues • Vapour stops, vapour retarder membranes and coatings • How they work together.

Combining various elements to fulfil each of the above functions to create the final built environment raises many challenges including compatibility between each layer and the next. Above all, combining components faultlessly and elegantly for the assembly to perform as per design intent is what we term as ‘detailing’.

or pavements helps create a final product that would fit the needs of a user totally.

Needless to state, correct detailing of connections, joints and interfaces have their own place of major importance.

Effective insulation prevents long-term effects such as thermal stresses and thermal movements caused by changes in ambient temperatures. These are important since major causes for failure of weather seals and rupture of bonds between concrete and reinforcement is the direct consequence of thermal stress cycling.

Thermal insulation - a total system Insulation does not involve only a single material. It is a total system consisting of many ancillary materials like sealants, gaskets, adhesives, putties and caulkings.

Each of these needs special study to avoid embarrassing failures. We have to select materials and combinations that work - after deep study of what makes them fail over the whole service life of the building. Varieties of materials available in this category present their own challenges to the designer in making the correct choice for a specific function.

It is not enough if we study service life aspects alone. Assessing product safety, in particular, examination of the presence of hazardous or unacceptable solvents and carriers from health and environmental considerations is a major subject by itself. In addition, all liquid sealants, flashing tapes and gaskets need deep study as to their chemical safety.

A major aspect which needs to be captured concerns is fire safety - both during service and during construction or implementation.

Getting details right High performance assemblies easily stand out from the ordinary. A high-quality completed work reveals itself by the excellent detailing that must have gone into through all the agencies that were associated at each stage.

It is particularly true in industrial steel buildings where there are special challenges.

The above broadly cover aspects related to components of the thermally insulated building envelope assembly. All these would also be relevant in the choice of insulation systems for mechanical elements in the HVAC system like the chilled water or refrigeration piping, ventilation ducts, air handling rooms or chambers etc. Exterior finish and site construction methodologies become even more important in this area.

Detailed examination of alternative concepts for roof assemblies or wall assemblies, floors

Care at every stage A new building envelope needs care at

54

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

each stage, starting from pre-design phase, passing through a harmonious continuity of design. “Benchmarking” and “Mockups” help to ensure that we have factored in all relevant aspects needing least interventions during actual construction. Finishing and checking before releasing built environment for occupancy assume high importance as well.

When we retrofit for improved performance of an existing building, we need to look at the existing state of the building in respect of its performance level. A comprehensive assessment checklist can be made to arrive at how we can reach the desired performance level. Prior to design we may want to assess and evaluate alternative concepts available If the performance gets tested for final benchmarking for various purposes like LEED certification, details of test methods to be employed, test equipment that would be used for the purpose etc. must be made known well in time. It is absolutely necessary to establish clear guidelines and standards whenever we aim to have a building assessed, classified or certified. Otherwise, verification, evaluation testing etc would be open to vagaries of subjective judgement.

Above all, the comfort level we provide to the end user, friendliness afforded to his lifestyle and easing of pressure on his operating cost during actual occupation are probably the best final certificate goals to aim for.

Lloyd Insulations India Ltd. has led energy conservation and resource protection fields for 50 years through its thermal insulation products for heat or cold conservation, corrosion protection of buried cross country pipelines and protection of buildings against deterioration through scientific waterproofing and fire protection products and devices. n Authored by__

N. Srinivas, Mentor, Lloyd Insulations (India)

(The opinions expressed in this article are those of the author)

Software II Technology

BIM is a process that uses “smart” and “computable” 3D model of the project to enhance its design, construction and operation

G

lobally, as project delays, cost overruns and liquidity constraints continue to trouble the real estate and construction sectors, Building Information Modelling (BIM) has emerged as one of the most reliable tools to eliminate challenges and reduce the capital cost and carbon footprint by over 20 per cent.

While a number of developed countries across the world have already adopted BIM to reduce project delays and cost overruns, Indian firms are fast adopting BIM, according to the findings of a recently

56

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

conducted research by the RICS School of Built Environment, Amity University.

Firms involved in built environment sector in India are facing significant schedule and cost

GREEN BIM is the future and the imperative thing to realise is that BIM, at heart, is not just software, but a human activity that ultimately involves broad organisational process changes in engineering, construction and operation.

- Manish Gajbe, Global Practice Head – BIM & VDC,

Engineering & Construction Vertical, Wipro Ltd.

Technology II Software overrun on account of poor coordination, wastage of material, significant rework, and lack of information sharing etc. Keeping aside other complexities facing the sector, project delivery can be made more efficient by using technological tools. Various ITenabled project management techniques have been introduced in the market so far.

One such tool, BIM that offers digital representation of the project during the project lifecycle, right from planning to execution of the project, is gradually picking up among Indian firms. This can significantly improve operational efficiencies leading to reduction in project time and cost overruns that the sector currently faces.

As the awareness for BIM is increasing within the architecture, engineering and construction (AEC) sectors, around 22 per cent of the firms have already started using BIM; and over 78 per cent firms would adopt the technology in coming years, according to the findings.

According to findings of the research, BIM is used most extensively in real estate sector and mostly in design development and construction stage. Most users who are using BIM, fall in the residential segment, building housing projects followed by those doing mixed land use projects under the Some facts • The US is the leader in BIM usage; almost 70 per cent of the projects use BIM • A number of governments across Europe has made BIM usage mandatory • BIM adoption in Europe is 36 per cent • Hong Kong government aims to apply BIM across all projects by end of 2014 • South Korea and Singapore governments have allocated large sums for BIM’s adoption.

Globally, BIM is finding increased attention from the construction sector. However, the level of maturity in using BIM differs in different region.

The United States of America is still the leader in BIM usage and is still evolving at a fast pace.

United Kingdom though started a bit late but has picked up pace in BIM adoption.

The adoption in Australia is also impressive with high usage reported by professionals. In Europe, BIM is used in almost a third of the projects.

Emerging economies such as Middle East, China and India are still lagging in BIM adoption with similar challenges such as lack of experienced professionals and high cost involved.

CPWD is one of the very first organisations that used BIM in India since 2008-09. We have benefited using BIM in execution of complex services-intensive projects and currently using on a number of projects. Personally I am convinced that BIM is the way forward for the Indian construction sector.

- Anil K Sharma, Additional Director General, CPWD

commercial category. The lowest usage was found to be in the non-housing sectors such as industrial and infrastructural developments.

• BIM reduces capital cost and carbon footprint from the construction by over 20 per cent •  BIM significantly reduces project delivery timelines and cost overruns •  Despite being in an experimental stage, 22 per cent companies involved in real estate and infrastructure sector currently use BIM •  Over 78 per cent companies aware of BIM, plan to use it in the next 2-3 years •  Mostly used by architecture firms, BIM is catching up fast with companies involved in the housing segment.

While the popularity of BIM is increasing gradually, there are challenges in its usage. Commenting on the trend, Prof Anil Sawhney FRICS - Associate Dean and Director School of Construction, RICS School of Built Environment, Amity University said, “BIM holds tremendous potential for the Indian construction sector. It allows us to drive out the inefficiencies that are currently bogging the industry”. He further added that “Few issues remain before we see widespread use of BIM in the country.

Compatibility between software platforms, availability of skilled resources, and lack of standard processes are among the major challenges deterring usage of BIM technology.”

“To promote BIM, it is highly essential that government agencies and clients lay stress on the usage of BIM in their procurement processes and contracts.

As more benefits surface, and as more owners see and share higher profits, BIM will find full traction and will reshape the Indian built environment sector,” he added.

“Work practices currently followed by the industry are out of sync with the processes required to make BIM implementation successful,” he added. High cost of hardware and software, unavailability of process implementation guidelines and lack of support from the government are some of the other challenges that the industry is facing.

The report added, organisations who are taking up to BIM now or at the least are aware of the technology would be in a better position to serve the industry and would soon be in high demand.

Commenting on the trend, Neeraj Bansal, Partner and Head of Real Estate and Construction Practice, KPMG India said, “BIM has the potential to provide significant benefits to the Indian built environment sector. But implementation of BIM requires a change in the mindset of all stakeholders, as managements of most organisations are reluctant to adopt.”

KPMG India was the research partner for the study and helped analyse the results of the survey.

A majority of the construction industry stakeholders are intuitively convinced that there is savings in time and significant improvement in final quality. “Moving forward these very stakeholders need to come together and create an ecosystem for the widespread adoption of BIM in India so that the whole-of sector operational efficiencies can be improved,” stated Prof Sawhney. n

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

57

Green Buildings II industry analysis

Home Aut omation

Smart Homes

gaining momentum S

mart is the latest buzzword in the technology world. Today we have smart phones, smart meters even smart cars.

A number of products and applications are growing to be smart and the latest to join the bandwagon is smart building.

Buildings offer residential and commercial space, but they are also capital investments.

Currently, buildings account for 40 per cent of the energy consumed worldwide.

Nowadays, efforts are being taken to make these buildings smarter and energy efficient.

Developers and owners are adopting technologies which can lower the operating cost while reducing environmental impacts.

Building Automation System (BAS) is one such technology which comprises all the given factors as it can help in reducing the annual operating costs of buildings through effective monitoring and optimisation.

According to Shailendra Shukla, Director - Channel, Building Business, Schneider Electric India, “Building automation, which

58

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

encompasses energy management solutions, life safety solutions, security solutions, utility service solutions and building management system, plays a critical role in integrated building planning.”

Undoubtedly, building automation is one of the important elements in controlling the HVAC, lighting and other equipment and systems. M Anand, Principal Counsellor, CII-IGBC comments, “External ambient conditions and internal loads including occupants, lighting, computers, and audiovisual equipment keep varying in a given day. Hence, BAS has become an integral part of a green building in sustaining energy efficiency.”

Current scenario The automation and control systems market in India has seen significant changes over the years. Building automation system allows achieving significant energy savings reforming building operations, efficiently linking, controlling and monitoring a variety of different functions and building

With building automation systems, building industry appears to be entering another era of change.

Afreen Sayed takes a closer look

disciplines. The given factors are giving a boost to BAS in the market.

Mr Shukla says, “Building automation facilitates energy savings, comfort, safety and higher operational efficiency affecting

M Anand, Principal Counsellor, CII-IGBC

A fully optimised BAS can save energy cost to the extent of 15-20 per cent as compared to a building without building automation

industry analysis II Green Buildings a high adoption rate in India. The market is further supported by the rising concern for Greenhouse Gases (GHG) along with rapidly increasing power demand-supply gap.”

He further added, “The policy and regulatory support such as building codes, incentive schemes and labelling schemes such as LEED rating scheme and BEE star rating scheme are expected to continue driving the BACS market over the next five years. The market growth is further supported by emerging trends of cloud based energy control solutions, ESCO schemes and automated demand response in building automation system.”

The demand for BAS is majorly driven by commercial building segment, due to increasing number of shopping malls, office buildings, educational institutes, hotels, hospitals, etc. The market is further supported by mandatory regulation of energy efficiency in commercial buildings in states such as Delhi.

Efficiency gains Better comfort, safety, building-services technology are some of the important factors for property upgrading. But one of the most important factors is energy efficiency which opens a variety of extensive opportunities for building automation system.

Building automation is the solution to reduce energy use while maximising the comfort levels of occupants. Using various sensors (occupancy, temperature, humidity, etc.) and controllers connected together, building administrators can monitor and control lighting/HVAC devices and systems more efficiently.

“Saving energy through the automation of buildings is a field that has been extensively researched, and the potential savings of some 30 per cent for office buildings, 40 per cent for hotels and 25 per cent for residential buildings that have been identified are now included in international standards,” Mr Shukla explained.

Over 450 IGBC certified and fully functional green buildings have benefited significantly by incorporating BAS. BAS ensures that the building remains ‘green’ throughout its life.

“A fully optimised BAS can save energy cost to the extent of 15-20 per cent as compared

to a building without building automation,” informed Mr Anand.

Beneficial to green building Almost all green buildings are designed to accommodate building automation for the energy, air and water conservation characteristics. One of the key aspects of building automation is energy management solutions and building management system which directly contribute to the concept of a green building. BAS can benefit green building in a number of ways.

Shailendra Shukla, Director - Channel, Building Business, Schneider Electric India

Building automation facilitates energy savings, comfort, safety and higher operational efficiency affecting a high adoption rate in India

A well designed BAS can help manage, monitor, control and save energy for HVAC, lighting, chillers and other energy consuming device which forms significant portion of energy consumed in an environment using Building Management System (BMS). It helps customers review the performance of their buildings and services on a real time basis and enables them to deploy targets and action plans to reduce energy consumption and improve productivity and reduce carbon footprint. According to Mr Shukla, a welldesigned automation solution can save up to 30 per cent of the energy consumed in a building.

smaller environmental footprint which offers a tremendous scope for BAS in future.

According to Research and Markets India report “Building Automation & Control Systems Market Forecast & Opportunities, 2019”, the Indian market for building automation and control system is projected to grow at a CAGR of around 21.7 per cent during 2014-19.

Mr Anand throws light on how useful BAS can be. He said, “A building can have the best energy-efficient HVAC systems, pumps, fans, lighting, efficient glass etc. However optimisation of performance can be ensured only through regular monitoring and controlling the equipment operation, with the help of building automation. It can also help ensure the comfort and health of a building’s occupants by automatically monitoring the amount of fresh air that enters a space.”

Mr Anand also envisions positive growth for BAS. He said, “There are significant growth opportunities. As various studies indicate, India would add another 60 billion sq. ft. of building footprint in next two decades.”

These developments include airports, metro stations, residential and commercial spaces, integrated townships, manufacturing facilities, etc. Hence, BAS plays a vital role in enhancing the energy efficiency and sustaining the energy savings. A study conducted by IGBC indicates that the overall market potential for green products and technologies is estimated to be $ 120 billion by 2015, which also includes BAS controls and systems.

Sophisticated BAS can also track the occupancy status of each zone and accordingly adjust fresh air flow. Building automation can be integrated with fire safety control panels with back-up power supplies, audible alarms, emergency voice evacuation systems and PA systems.

Mr Shukla points out, “The demand for building automations and control systems is projected to continue to be driven by the commercial building, hospitality and healthcare verticals. The market growth is further amplified by mandatory regulations and energy efficiency norms, rapidly increasing power supply-demand gap and the customers increasing ask for comfort, safety and operational efficiency.” n

“Today, BMS has gone beyond classical monitoring and control,” Mr Shukla opines.

Market forecast BAS enable energy efficiency, less cost operation, better indoor environment, and

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

59

Real Estate II Realty Bytes

le party. g n i s a ority to j a ess the m r d r d a a e l c o t giving a ake initiatives y b t n e overnm nt will t g e e m l n b r a e t v d for a s at the new go ourable growth e t o v s a ects th ntry h ted fav The cou tate sector exp in much-awai ult l es The rea s which will res ck bottlene

Here’s Indian real estate sector’s wishlist for new govt

Restore consumer confidence The housing sector particularly is facing a number of challenges – the biggest of all is the subdued buyer sentiment. Hopefully the new government will try to bring back consumer confidence into the market by removing these impediments.

Sachin Sandhir, MD, RICS South Asia

Amendments in regulatory framework are essential The industry currently requires much needed amendments in its regulatory framework of single window clearance, fast-track approvals on projects; make green housing projects more viable for developers as well as buyers. Apart from this, the enactment of the Real Estate Regulatory Bill should be approved to make the Indian real estate sector more attractive for foreign investors.

Srinivasan Gopalan, CFO and COO, The Wadhwa Group

60

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

Realty Bytes II Real Estate

Ease process of funds availability New government should make regulations which are investment friendly thereby easing and speeding up the process of availability of funds. Commencing operations of the Real Estate Investment Trusts (REITs) in India is an immediate requirement. To boost the real estate sector, there is an urgent need to pass the Real Estate Regulatory Bill thus attracting and streamlining the approvals and sanctions process.

Tackle current inflation levels The new governmentâ&#x20AC;&#x2122;s primary focus should be to infuse life into the real estate sector by tackling the current inflation levels. We need the government to revive economic growth in the country and give the sector the much needed impetus to recover from the cynicism in the industry. Also there should be a conscience effort to bring down interest rates and make finance easily available for developers while streamlining and reducing delays in approvals. The government needs to provide incentives for first time home buyers and focus on lowering interest rates for home buyers. The real estate regulatory bill for Maharashtra is pending sign-off by the President of India. This bill will lead to an increase in customer confidence and comfort and can further boost demand for approved projects.

Rohit Gera, MD, Gera Developments

Implement REIT to tap cash flow

Pankaj Srivastava, COO, Maitreya Realtors

New government should implement Real Estate Investment Trusts (REIT) on priority basis. It will serve as a great instrument to tap cash flow into the Indian economy, and help smaller investorsâ&#x20AC;&#x2122; access in to income-generating real estate assets. It will help both developers and investors, through better financing and investment options.

Infrastructure status to real estate sector Make Indian real estate more investment-friendly Many overseas investment funds have so far abstained from the Indian real estate market because of the lack of regulation, political instability and bureaucratic quagmire. The new government will have the opportunity of making Indian real estate more investmentfriendly and attractive, and this would go a long way in meeting its considerable capital requirements. Investor-friendly, streamlined policies from the new government can be a game-changer for Indian real estate.

Anuj Puri, Chairman and Country Head, JLL India

Real estate industry expects that the new government will give the sector its due priority and support the sector.

We look forward that the new government will give its due credit and award the infrastructure status to the real estate sector in India.

Pankaj Kumar Jain, Director, K World Group

C Shekar Reddy, President, CREDAI - National

Need single-window clearance system Among other priorities, the sector (real estate) is also waiting for an initiative like single-window clearance system to speed up the process and avoid huge delay in approvals. Easy access to funds and low Shailesh Puranik, interest rates on procuring capital is also one of the vital demands of Managing Director, the real estate sector.

Puranik Builders

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

61

Real Estate II Industry analysis

GST and REIT

The Tough Two GST and REIT are the two major policy challenges for the new government which can dramatically change the macro economic scenario

T

he Western media often refers to India is as the â&#x20AC;&#x2DC;noisyâ&#x20AC;&#x2122; democracy.

As always, the noise has reached its peak during the electoral phase, but we can look forward to the dust settling in mid-May 2014.

A stable regime at the centre will ensure that India regains its growth trajectory.

There are several areas where reforms and interventions are required to propel this growth. Out of these, two policies which have been delayed for a long time can dramatically change the macro economic scenario - GST and REIT. Goods and Service Tax (GST) One of the biggest taxation reforms in India, Goods and Service Tax (GST) will integrate state economies and boost overall growth by creating a single, unified Indian market. While presenting his Budget in July 2006, then Finance Minister Pranab Mukherjee had indicated that GST would come into effect from April 2010.

However, no decision has been taken thereafter.

62

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

The implementation of GST will phase out other taxes such as octroi, central sales tax, state-level sales tax, entry tax, stamp duty, telecom licence fees, turnover tax, tax on consumption or sale of electricity, taxes on transportation of goods and services, etc. It is the only way out of the multiple layers of taxation that currently exist in India.

economic development by breaking tax barriers between states and integrating the country through a uniform tax rate.

What is GST? GST is a comprehensive tax levy on the manufacture, sale and consumption of goods and services at a national level. It employs a tax credit mechanism to collect tax on value-added goods and services at each stage of sale or purchase in the supply chain.

Benefits of GST Under GST, the taxation burden will be divided equitably between manufacturing and services through a lower tax rate by increasing the tax base and minimising exemptions. Such a system is a major step towards transparent and corruption-free tax administration. GST will be is levied only at the destination and not at various points (from manufacturing to retail outlets).

Currently, a manufacturer needs to pay tax when a finished product moves out of a factory, after which it is again taxed at the retail outlet when sold.

The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end-consumer bears this tax being the last person in the supply chain. GST is likely to improve tax collections and boost India's

Benefits to centre and states It is estimated that India will gain $15 billion a year by implementing the GST as it would promote exports, raise employment and boost growth. It will divide the tax burden equitably between manufacturing and services.

Industry analysis II Real Estate Benefits to individuals and companies In the GST system, both central and state taxes will be collected at the point of sale.

Both components (viz. the central and state GST) will be charged on the manufacturing cost. This will benefit individuals, as prices are likely to come down. Lower prices will lead to more consumption, thereby helping companies.

If implemented the GST regime will revolutionise the logistics sector. It will also help create small and medium size enterprises and thereby create more employment. Various hinterland cities like Nagpur, Indore etc. will emerge as hotspots with robust demand for real estate.

Challenges for implementation of GST The biggest impediment on the way of implementing GST is getting all the state government on the board. Various state finance ministers have expressed their apprehension that it will reduce financial autonomy of the states and make them more dependent on the centre.

The success of the policy will depend on the derivation of right kind of revenuesharing mechanism between the centre and the states. A stable and decisive central government may be able to crack the deadlock.

Real Estate Investment Trusts (REITs) REIT is a company that owns, and in most cases operates income-producing real estate.

REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping malls, hotels and even timberlands. Some REITs also engage in financing real estate.

The REIT system was designed to provide a real estate investment structure similar to the kind that mutual funds provide for investment in stocks. REITs can be publicly or privately held, but only public REITs may be listed on public stock exchanges. REITs can be classified as equity, mortgage or a hybrid.

REITs were created in the United States when President Dwight D. Eisenhower signed into law the REIT Act. REITs were created by the US Congress in to give all investors the opportunity to invest in large-scale,

diversified portfolios of income-producing real estate in the same way they typically invest in other asset classes â&#x20AC;&#x201C; through the purchase and sale of liquid securities.

REITs will provide them with exits and an incentive to develop high-grade buildings.

This would have a very positive impact on the overall real estate industry, since developers who are currently doing only residential projects would be able to diversify their portfolios and achieve a more balanced growth.

Since then, more than 20 countries around the world have established REIT regimes, with more countries actively considering them. The spread of the REIT approach to real estate investment around the world has also increased awareness and acceptance of investing in global real estate securities.

There would definitely be more momentum on the market, and various new asset classes hitherto considered non-viable by many developers would emerge in strength â&#x20AC;&#x201C; for instance, student housing, senior living projects and rental housing schemes.

The Govt. of India is still in the process of formulating legislations for REITs in the Indian real estate market. SEBI published its draft regulation in the last quarter of 2012. Once implemented, Indian REITs will help individual investors reap the benefits of owning interest in the securitised real estate market.

Challenges for REITs There are several challenges to overcome before the successful implementation of REITs in India. To begin with, title certification in India is an ambiguous and cumbersome process, and this complexity discourages many potential foreign and domestic investors from buying into incomeyielding properties.

The greatest benefit will be that of fast and easy liquidation of investments in the real estate market, in marked contrast to the traditional manner of disposing of real estate. The government and Securities and Exchange Board of India (SEBI), through various notifications, is in the process of making it easier to invest in real estate in India directly and indirectly through foreign direct investment, via listed real estate companies and mutual funds.

Another issue is the valuation mechanism.

Real estate valuation in India is largely unregulated and lacks a standard code of practice or ethics. In order to implement REITs, the government will have to address these issues via making and amending multiple legislatures.

Benefits for Indian real estate REITs will enable retail investors to participate in the real estate space with small investment sizes. This will unlock a new source of project financing for real estate.

As of now there is very little holding power available with the developers. Therefore, there is little interest with them to create high-grade commercial, retail or any other income generating assets.

It is to be hoped that the new government will seriously look into the urban development and focus on the creation of right kind of built infrastructure that is the key for sustainable growth. REITs and the associated changes in the legislature need to find a place on a priority list that aims for larger developments and subsequent employment creation. n Authored by___

Even large developers strata sell commercial or retail projects to multiple HNI investors.

Such a situation creates complexity in maintaining and promoting these spaces, apart from creating title issues and many other complications. Once a REIT takes charge of a commercial property, the scenario improves significantly.

Subhankar Mitra, Head - Strategic Consulting (West), JLL India

Smaller developers will also be encouraged to create lease-hold assets, because

(The opinions expressed in this article are those of the author)

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

63

Award II Promotional Feature

Wienerberger Brick Award 2014 recognises creative standards One grand prize, awards in five categories as well as two Wienerberger Special Prizes were presented on 8th May “In this project, brick not only serves a decorative purpose, but it is determinative for the whole building structure – a fact I consider as particularly important,” Wang Shu, jury member and Pritzker Prize winner 2012, describes the grand prize winner of the Wienerberger Brick Award 2014. “It is very simple, but very beautiful – it was the first project that made me immediately think: This is magnificent.” He praises the Kantana Film and Animation Institute in Nakhon Pathom in Thailand, which is also the award winner in the Special Solution category. The training centre designed by Bangkok Project Studio was built of more than 600,000 handmade bricks obtained from Thailand’s last brick-producing village. Unemployed people were trained to carry out the construction works, a fact giving the project a special social component.

Grand Prize winner Kantana Film Animation Institute, Thailand

64

JUNE 2014

The awards of the international Wienerberger Brick Award 2014 were presented on 8th May in the Architekturzentrum Wien: one grand prize, awards in five categories as well as two ‘Wienerberger Special Prizes’. International architecture critics and journalists had proposed more than 300 projects from 26 countries, 50 of which were shortlisted for this year’s Wienerberger Brick Award, which has been conferred every two years since 2004.

A house allowing a lifestyle as self-reliant as possible was victorious in the Residential Use category: in the Chinese Province of Shaanxi, John Lin constructed the ‘House for All Seasons’ from traditional materials like clay bricks. The interior courtyards connect the kitchen, bathroom, living room and bedrooms with each other, whilst the roof serves to dry meat and collect rainwater.

Ar. John Lin from China, received the Brick Award 2014 for Residential Use project

Ar. Boonserm Premthada, Bangkok Project Studio recieving Grand Prize from Heimo Scheuch, CEO, Wienerbereger

66

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

g

Award II Promotional Feature 64

f

Public re-use buda art centre, Belgium

In the Public Use category, the Kunstmuseum Ravensburg by LRO Lederer Ragnarsdóttir Oei carried off the first prize. Windows interrupt the façade of the museum for the Peter and Gudrun Selinka Art Collection only in few specific places. The bricks were obtained from the demolition of a nearby monastery.

The Buda Art Centre in Kortrijk, Belgium was victorious in the Public Re-Use category.

Studio 51N4E converted a former textile dyeing factory on the Island of Buda into a generous place for cultural activities. Already existing brick surfaces were cleaned and renovated, woodwork and concrete columns

were filled in. Particularly salient is the yellow brick with its almost velvety appearance.

A cooking school located in a former slaughterhouse impressed the jury in the Urban Infill class. Sol89 is responsible for the ‘Cooking School in Ancient Slaughterhouse’ near Cádiz in Spain. Bright whitewashed walls are compliant with regional building traditions, and special ceramic tiles provide for hygiene and slip resistance in the kitchen.

The Wienerberger Special Prize went to two buildings projects using Wienerberger products: the House of Light in Pula, Croatia

Residential use a house for all seasons, China

by Andrija Rusan as well as the Paasitorni Hotel & Conference Centre in Helsinki by K2S Architects, where custom-manufactured ivory- coloured facing bricks make a lasting impression.

“I am very enthusiastic about the creative standards and, most importantly, about the architecture of the winning projects, which is geared to the respective use,” says Heimo Scheuch, CEO of Wienerberger AG. “In my opinion, the projects built of recycled bricks are especially inspiring – a proof of the durability and sustainability of this building material.” n

Samir Surlaker bags award for his contribution

S

amir Surlaker, the Managing Director of MC-Bauchemie (India) Pvt. Ltd., has been awarded with Outstanding Concrete Engineer Award in a function jointly organised

by Indian Concrete Institute and Ultratech.

Mr Surlaker is a Civil and Structural Engineer from VJTI having over 35 years of experience in construction chemicals, rehabilitation strategies, injection systems etc. across Germany, Europe, Middle East, Asia Pacific Countries and India. He is presently President of Construction Chemicals Manufacturers Association, Chairman of ICI, Mumbai and Director of ICACI. The event held in Goa was attended by over 200 engineering professionals. Pascoa1 Noronha, Chairman ICI Goa welcomed the attendants and the function was inaugurated

by Chief Guest Mr Radhakrishnan, Secretary General of ICI. Keshav Tayde, VP (West) ICI was the Guest of Honour.

Mr Surlaker made a technical presentation on recent advances in construction chemicals. He

66

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

is Co-author of Advance Handbook of Concrete Technology and has presented over 800 lectures and written over 150 technical papers.

He is a Goan engineer of international repute.

“This is a rare honour as I am getting this in Goa,” said Mr Surlaker accepting the award.

Also, the new airport terminal of Goa was awarded the outstanding concrete structure and the award was received by M.N.N. Rao, GM, Airport Authority of India. He explained

the features and intricacies of new Goa airport terminal in his presentation.

Jury application award was given to Irrigation Department for Bhandara (weir) on remote river in Usgaon which was completed within a record time. Outstanding concrete structure - building category was awarded to Space Building in Patto with M.S. Suctankar as architect. ‘Wellbuilt residential villas’ was awarded to a Villa in Priol with Mr. Kelekar as Architect. n

Promotional Feature

Premier: leading in concrete blocks and landscaping pavers

J

aipur-based Premier Bars Pvt. Ltd., one of the largest manufacturers of innovative range of landscaping concrete products in Northern India, recently launched concrete blocks and landscaping pavers.

Achieving manufacturing excellence Premier Pavcon is part of Premier Group involved in running steel plants and manufacturing of steel and PVC pipes across North India. Operating on a fully automated German vibro compact technology

and deploying innovative material handling system, its manufacturing plant at Mahindra World City, Jaipur has a installed capacity to roll out 1,500 concrete blocks and kerb stone, 4,500 concrete pavers and 6,000 flyash bricks per hour. Its hardscaping products are being widely used in industrial, residential and commercial applications especially for building and retaining walls, internal partition wall, exterior wall, pathway, drive way, ware house, open driveway, patio, petrol pump, internal roads of township.

Arun Jain, Managing Director, Premier Bars Pvt. Ltd.

Dynamic leadership Young entrepreneur Arun Jain, Managing Director of Premier Bars Pvt. Ltd. is achieving new heights in the field of steel and environment friendly concrete products. His company is taking care of environment while making steel rebars and concrete blocks. He has recently been awarded by Steel Ministry for production of biogas and zero carbon emission.

According to the company, Mr Jain was one of the pioneers in Rajasthan to introduce TMT under the brand name PREMIER in 2004. n Contact: Premier Bars Pvt. Ltd. 402, Nidhikamal Tower, Ajmer Road, Jaipur - 06 Tele: +91-141-4053409, Fax: +91-141-4053450 www.pavcon.in, www.premierispat.com, www.defendoqtr.com

68

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

NEW PROJECTS

Commercial Complexes Andhra Pradesh State Road Transport Corporation plans to construct state-of-the-art modern bus terminus at Maddilapalem, dist.

Visakhapatnam, Andhra Pradesh.The bus bays and one or two floors would be developed for use by RTCLocation: Visakhapatnam, Andhra Pradesh Status: Planning Stage Contact: Andhra Pradesh State Road Transport Corporation, Administrative Office: Bus Bhavan, Musheerabad, Hyderabad - 500020, Andhra Pradesh Tel: 91-40-27616234 Website: www.apsrtc.gov.in

Roads & highways Road Infrastructure Company Kerala plans a rehabilitation of state highways and major district roads in Kerala.

Location: Kerala Status: Planning Stage Contact: Road Infrastructure Company Kerala Limited, Administrative Office: GNA 215, Sarojini, Gandhi Nagar, 2nd Street, Vazhuthacaud, Thiruvananthapuram - 695014, Kerala Tel: 91-471-2323258/ 2323259 Website: www.rickltd.org

Hospitals Eye-Q Super Speciality Eye Hospitals plans to open 100 centres across India. The centres offers services like comprehensive eye care, cataract services, pediatric services, etc. The project is planned for completion in 2018.

Status: Planning Stage Contact: Eye - Q Super Speciality Eye Hospitals, Corporate Office:18 B, DLF Cyber City, Building No. 5, DLF Phase-III, Gurgaon - 122002, Haryana Tel: 91-124-4245460 Website: www.eyeqindia.com

Environment protection Pune Municipal Corporation plans garbage processing plants in Pune, Maharashtra. The project will use biomethanation and waste-toenergy technology.

Location: Pune, Maharashtra.

Status: Planning Stage Contact: Pune Municipal Corporation , Administrative Office: PMC Building, Near Mangla Theatre, Shivaji Nagar, Pune - 411005, Maharashtra Tel: 91-20-25501000 Fax: 91-20-25501104 Email: info@punecorporation.org Website: www.punecorporation.org

Real Estate Olympia Infratech is constructing the ‘Olympia Opaline Sequel’, a 700 units, residential project at OMR, dist. Kanchipuram, Tamil Nadu on 17 acres. The project is estimated to cost more than ` 1,000 million.

Location: Kanchipuram, Tamil Nadu Status: Under Implementation Contact: Olympia Infratech Private Limited, Registered Office: Olympia Technology Park, Plot No. 1, SIDCO Industrial Estate, Chennai - 600032, Tamil Nadu Tel: 91-44-43563773/ 43563774/ 43563775 Fax: 91-44-43563289 Email: seo@olympiagroup.in Website: www.olympiagroup.in

Hotels Vicon Imperial (I) is constructing ‘The Gateway’, a 109 rooms, 5-Star hotel at GE Road, Raipur, Chhattisgarh on 3.5 acres. The project consist of amenities like grand ballroom 597 SQFT, swimming pool, 3 different food & beverage outlets, business centre, fitness centre, etc.

Location: Raipur, Chhattisgarh.

Status: Under Implementation Contact: Vicon Imperial ( I ) Private Limited, Site Office: GE Road, Behind Magneto Mall, Raipur - 492006, Chhattisgarh Tel: 91-771-6661000 Email: gateway.raipur@tajhotels.com Website: www.thegatewayhotels.com, www.vicon.in

Ports & harbours Mormugao Port Trust plans to construct a multi-purpose cargo terminal at Mormugao Port,South Goa. The estimated cost of the project is ` 16,000 million.

Location: South Goa Status: Planning Stage Contact: Mormugao Port Trust, Administrative Office: Mormugao Port, Headland Sada, South Goa- 403804, Goa Tel: 91-832-2521120/ 2521160/ 2521162/ 2594603 Fax: 91-832-2521165/ 2521105 Website: www.mptgoa.com

Thermal Power generation Kanodia Cement plans a 15 MW coal-based CPP at Unit-I, Durgawati, dist. Kaimur (Bhabua), Bihar. The project will come up along with an ordinary portland cement manufacturing project. The total cost of both the projects is ` 900 million.

Location: Kaimur (Bhabua), Bihar Status: Planning Stage Contact: Kanodia Cement Limited, Corporate Office: CS-21, Ansal Plaza, Vaishali, Ghaziabad - 201001, Uttar Pradesh Tel: 91-120-4158534 Email: info@bigcement.in Website: www.bigcement.in

Note: Above information is the sole property of domexinfo.in and can not be published without prior permission.

70

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

tenderS CIVIL Company Name: Karnataka Road Development Corporation Limited Tender Detail: Construction of Grade Separator (3 nos.) on Mangsuli-Lakshmeshwar (SH-73) between Dharwad-Hubli Location: Karnataka Documentation Sale from: 14-April-2014 Documentation Sale to: 9-June-2014 Documentation Fees: `. 7500/EMD: ` 307,4000/Closing Date: 9-June-2014 Address: 16/J, Miller Tank Bed Area, Thimmaiah Road, Bangalore-560052, Karnataka Tel: 91-80-22380141 Website: www.krdcl.in Company Name: Karnataka Road Development Corporation Limited Tender Detail: Construction of Mixed Traffic Lanes on Mangsuli – Lakshmeshwar (SH-73) between Dharwad – Hubli Location: Karnataka Documentation Sale from: 14-April-2014 Documentation Sale to: 9-June-2014 Documentation Fees: ` 7500/EMD: ` 15,510,000/Closing Date: 9-June-2014 Address: 16/J, Miller Tank Bed Area, Thimmaiah Road, Bangalore-560052, Karnataka, Tel: 91-80-22380141 Website: www.krdcl.in Company Name: National Highways Authority Of India Tender Detail: RFQs for widening and strengthening of existing two-lane with paved shoulders of the project highway from Jodhpur to Pokaran section from km 11.000 to 176.040 of National Highway-114 under NHDP Phase-IV in the State of Rajasthan on EPC mode.

Location: Rajasthan Documentation Sale to: 23-June-2014 Closing Date: 24-June-2014 Address: G-5&6, Sector 10, Dwarka, New Delhi-110075, Delhi Tel: 91-11-25074100/ 25074200.

Fax: 91-11-25093507/ 25093514.

Email: bnsahay@nhai.org Website: www.nhai.org

Residential Complexes Company Name: Southern Railway Tender Detail: Mangalore Sub division – Re-roofing of type-I – 20 units and type-II Qrs. 15 units and other allied works at Mangalore Central station.

Location: Mangalore Documentation Sale from: 7-May-2014 Documentation Sale to: 4-June-2014 Documentation Fees: ` 3,300/- EMD: ` 80,650/Closing Date: 4-June-2014 Address: Office of the divisional railway manager/works,

Documentation Fees: ` 1,000/EMD: 2% of the tender cost Closing Date: 03-June-2014 Address: Punjab Agricultural University, Ludhiana-141027, Punjab Tel: 91-161- 2401960-79 Fax: 91-161- 2400945 Website: http://web.pau.edu

southern railway, dist. Palakkad – 678002, Kerala Tel: 91-491-2555332 Fax: 91-491-2555332 Website: www.sr.indianrailways.gov.in

Railways Tracks Company Name: Rail Vikas Nigam Limited Tender Detail: RFP for Bankability study of Peralam to Karaikal New Line (23 Km) in Southern Railway.

Location: Tamil Nadu Documentation Sale from: 22-April-2014 Documentation Sale to: 06-June-2014 Documentation Fees: ` 5,000/EMD: ` 55,000/- (Bid Security) Closing Date: 09-June-2014 Address: 1st Floor, August Kranti Bhawan (Room No. 273), Bhikaji Cama Place, R.K. Puram, Dist. New Delhi, Delhi -110066 Tel: 91-11-26738404 Fax: 91-11-26738491 Contact Person: Joint General Manager /PP&D Email: shanti_999@hotmail.com Website: www.rvnl.org

Dist.

Ports Company Name: Cochin Port Trust Tender Detail: Leasing of 1.14 HA. of land for 30 years on annual lease basis for facilities for handling bulk cement and bagging plant in front of Ernakulam wharf in w/island on tender cum auction basis has been extended up to14.30 hrs. on 09-06-2014.

Location: Ernakulam Documentation Sale from: 29-January-2014 Documentation Sale to: 09-June-2014 Documentation Fees: `10,500/EMD: ` 1,200,000/Closing Date: 09-June-2014 Address: Office Of The Chief Engineer, Estate Division, Willingdon Island, Kochi, Dist. Ernakulam- 682009, Kerala Tel: 91-484-2666414 Website: www.cochinport.com

Company Name: Delhi Metro Rail Corporation Ltd Tender Detail: RFP for Licensing of built-up shops at Pul Bangash metro station Location: Delhi Documentation Sale from: 5-May-2014 Documentation Sale to: 4-June-2014 Documentation Fees: ` 21,000/EMD: ` 2,400,000/Closing Date: 5-June-2014 Address: Deputy Manager / Property Business-I, B-Wing, 4th Floor, Metro Bhawan, Fire Brigade Lane, Barakhamba Road, New Delhi – 110001 Tel: 91-11-23417910 / 23417912 Fax: 91-11-23417921 Website: www.delhimetrorail.com

Company Name: Kandla Port Trust Tender Detail: E-tender cum e-auction for work of allotment of land for purpose of liquid storage tanks (hazardous / non-hazardous) [including structures] on 30 years lease on as is where is basis at Kandla.

Location: Kandla Documentation Sale from: 7-April-2014 Documentation Sale to: 20-June-2014 Documentation Fees: ` 5,000/EMD: ` 305,300,000/Closing Date: 20-June-2014 Address: P.O. Box 50, Administrative Building, Gandhidham, Kutch-370201, Gujarat Tel: 91-2836-238055, 91-2836-220016 Website: www.kandlaport.gov.in

Water Supply & Sewerage Company Name: Indraprastha Power Generation Co. Ltd. Tender Detail: E-tender for annual contract for maintenance of water supply and sanitary works at pragati power station-I Location: Pragati Power Station-I Documentation Sale from: 24-April-2014 Documentation Sale to:10-June-2014 EMD: ` 20,500/Closing Date:10-June-2014 Address: 220KV Substation Building, First Floor, Pragati Power Station-I, Ring Road, New Delhi-110002 Tel: 91-11-23378857 Website: www.ipgcl-ppcl.gov.in

Power Company Name: Power Grid Corporation Of India Limited Tender Detail: 765 KV reactor package-RT2 for (I) Jabalpur pooling station and (II) Vindhyachal pooling station under transmission system associated with Vindhyachal V Location: Madhya Pradesh Documentation Sale from: 30-April-2014 Documentation Sale to: 13-June-2014 Documentation Fees: ` 25,000/EMD: ` 16,654,000/Closing Date: 20-June-2014 Address: Chief Manager (CS-G10)/Dy Manager (CS-G10)Saudamini,3rd Floor, Plot No.-2, Sector29Gurgaon – 122001, Haryana Tel: 91-124-2571700 to 719. Extn. 2366/3316 Fax: 91-124-2571831 Website: www.powergridindia.com

Company Name: Punjab Agricultural University Tender Detail: E-tender for Construction of Pucca water channel & construction of threshing floor at USF, Naraingarh Location: USF, Naraingarh Documentation Sale from:19-February-2014 Documentation Sale to: 02-June-2014

Note: Above information is the sole property of domexinfo.in and can not be published without prior permission.

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

71

Events

Steel Secretary urges paradigm shift in approach to utilise steel slag Steel slag as a sustainable alternative material for road construction, agriculture, cement making and railways

S

teel slag is a co-product generated during the steel making process.

It is used as an aggregate in many industries, with a high rate of adoption globally, especially in the United States, the European Union, China and Brazil.

Its high abrasion resistance, soundness characteristics, high bearing strength and basicity make it suitable to be used as ballast for railways as well as in road making as a replacement for natural aggregate, in cement making, in agriculture for soil amelioration, in paver blocks and bricks, and also as an alternative to landfills.

This necessitates that proper procedures, regulations and guidelines be formulated in India for the testing, processing and usage of slag. The seminar has been a useful platform to bring regulators as well as stakeholders from various industries together to work towards this.

Stating that the industry needed to now look at time-bound outcomes on the utilisation of steel slag, G. Mohan Kumar, Secretary of Steel Ministry said, “There should be a

Mr. G. Mohan Kumar, Secretary, Ministry of Steel at the Conference

72

JUNE 2014

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

Inaugural Session at the Conference on Promoting the Awareness and Usage of Steel Slag

paradigm shift in our approach. We need a sustained effort on what is possible and today is a beginning. It is gratifying to see such an overwhelming response to the need to address the utilisation of steel slag. The industry needs to come together on this issue, and I hope that the sparkling discussions in the technical sessions result in something concrete.”

capability to absorb industrial co-products such as steel slag, while also addressing costs of road construction. There is a need to have a mission-mode approach to bring all stakeholders to the same platform to discuss optimised ways to utilise this coproduct.”

Mr Kumar was talking during a seminar on promoting awareness and usage of steel slag was jointly organised by the Ministry of Steel and the Federation of Indian Chambers of Commerce and Industry (FICCI) in New Delhi.

Presenting the view of the steel industry, Sandeep Kumar, Executive-In-Charge, (Secondary Products), Tata Steel, said that “The usage of steel slag for various applications is an established practice globally and should be adopted in India keeping in mind the economic and environmental benefits at large.”

Vishnu Shankar Prasad, Secretary General, Indian Roads Congress said, “There is a need to have collaborative research in the country to identify applications of steel slag across sectors. The roads sector in India, being the world’s largest, has the highest

Dr. Vijay Joshi, Consultant and Director, DRSlag, said, “This seminar organised by FICCI is an excellent way and could set a road map for India. Steel slag has excellent engineering properties and can be used in infrastructural applications.” n

Ajax Fiori Engineering (I) Pvt Ltd.........................................IBC

Roxul - Rockwool Technical Insulation India Pvt. Ltd. ��������� 51

Ashtech India Pvt. Ltd...........................................................31

Sara Trading Co. ����������������������������������������������������������������� 53

BASF India Ltd.................................................................... IFC

Siadow Systems Pvt. Ltd. ���������������������������������������������������� 27

Construwell Industries...........................................................19 Escorts Construction Equipment Ltd.....................................23 Flyocrete Green Concrete LLP..............................................13 JCB India Ltd........................................................................BC Kisan Mouldings Ltd................................................................9 KYB - Conmat Pvt Ltd ..........................................................29 Megha Insulations Pvt. Ltd....................................................55

Supreme Startech Pvt. Ltd. ������������������������������������������������� 68 Tata BlueScope Steel Ltd. ��������������������������������������������������� 15 The South India Waterproofing Co. ������������������������������������� 47 Techno Industries ���������������������������������������������������������������� 37 Vashi Electricals Pvt. Ltd. ���������������������������������������������������� 11 Vishwas Waterproofing & Chemical Inc. ����������������������������� 39

Perma Construction Aids Pvt. Ltd..........................................43

Walplast Products Pvt. Ltd. ������������������������������������������������� 49

Premier Bars Private Limited...................................................7

Weinerberger India Pvt Ltd ���������������������������������������������������� 3

Prince Pipes & Fittings Pvt. Ltd.............................................65

Wirtgen India Pvt. Ltd. ��������������������������������������������������������� 25

A C E UPDATE ARCHITECTURE

CONSTRUCTION

ENGINEERING

JUNE 2014

73

Skyscrapers & Prefab India Summit 24 - 25 July 2014 | Mumbai “Understanding Construction technologies for Building Skyscrapers using Innovative techniques , New Strategies and Efficient Equipment”

2 DAYS - IMMENSE INSIGHTS, UNLIMITED OPPORTUNITIES KEY-NOTE SPEAKER Mr. Lalit Kumar Jain Confederation of Real Estate Developers‘ Association of India Chairman

PRIME MEDIA PARTNER

EXCLUSIVE PROPERTY PARTNER:

Dr. Ken Yeang Hamzah & Yeang Principal

Qutub Mandviwala Mandviwala Qutub & Associates Owner

MEDIA PARTNERS:

FIRE AND SAFETY MEDIA PARTNERS:

View the conference agenda to know our complete speaker line-up topics of presentation and participating companies.

ORGANISED BY

Sresth Gaikwad sresth.gaikwad@fleminggulf.com +91 20 6607 1602

http://infra.fleminggulf.com/skyscrapers-prefab-india-summit

Qu a

Reliab ilit

y

y lit

nse ete Se

cr s Con Make

No. 253 /1, 11th Main, 3rd Phase, Peenya Industrial Area, Bangalore - 560 058, CIN No.: U28920KA1992PTC013306, Tel : +91 80 6720 0082, Fax : +91 80 6720 0031, Email : info@ajax-fiori.com, www.ajax-fiori.com

For Sales queries, please contact

Self-Loaders Batching Plants Pumps

Regd. No. MH/MR/North East/275/2014-16. Posted at Tilak Nagar PO, Mumbai - 400089 on 1st and 2nd of every month.

English • Monthly • Date of Publication: 1st of Every Month.

76