Construction Mirror February 2018 Issue by Construction Mirror

EDITOR’S DESK Dear Reader!

Editor P. S. Syal Sub-Editor Ambika Gagar Associate Editor N.P.K. Reddy Editorial Advisor Priyanka Roy Chaudhary Design & Production Sr. Designer - Mukesh Kumar Sah National Business Head Subhash Chandra s.chandra@constructionmirror.com Business Head-West & South Pradeep Kumar - 09702818098 pradeep.k@constructionmirror.com Sales & Marketing Neha Chauhan neha@constructionmirror.com Hemant Kumar hemant@constructionmirror.com Ms. Manju manju@constructionmirror.com Subscription Praveen Chauhan Email: subscribe@constructionmirror.com Call: 011-6510 4350, 011-22758660 All rights reserved by all events are made to ensure that the information published is correct; Construction Mirror holds no responsibility any unlikely errors that might occur. Printed, published and owned by Usha, Published from 13/455, Block No. 13, Trilok Puri, Delhi-110091 and printed at Bright Tree, C-40, Gate No.-4, Okhla Industrial Area, Phase-II, New Delhi-110020. E-mail: brighttreesolutions@gmail.com Editor: P. S. Syal

India globally presents a clear view of developing robust infrastructure and economy towards the growth. With an opportunities of the industry in India as a new move to shift from ‘AA’ to ‘A’ grade ratings in corporate bonds is a welcome step as it will provide additional avenue to the corporates to raise funds for their infrastructure projects. It recognizes the role of “Infrastructure sector” as growth driver of the economy with an estimated investment requirement of massive INR 50 lakh crore. The government’s initiative of monetizing select CPSE assets using infrastructure investment funds (InvITs) from next year which is again a welcome move by our finance minister Arun Jaitley. Year to year when the CE industry growth prospect is consider we look into the major and main focused area which is th connective ‘The roads” again it is under threats although the further planning of complete the projects like Bharatmala and Sagarmala by 2018. With awarded Rs3 lakh crore and Rs3.5 lakh crore respectively and definitely supports the desire growth and timely completed of these projects. Other than this the government plans to achieve the house for all by 2022 is another concern which is on the move. It is consider that the control some of the environmental pollution, the government has addressed the crop burning issue and made allocations to help the farmer. Hope that besides the infrastructure development areas we Corley analysis our environment Mean while going through the updates in CE infrastructure industry, the inside it cover the budget overall and feature on high rise building. Happy Reading…. Thank you, Please give us your feedback at editor@constructionmirror.com For more details check out our Website www.constructionmirror.com & you can also visit our facebook page www.facebook.com/constructionmirror

Editor

CONTENTS

Guest Article

Report

KYB

Celebrates 15 Years of Business Operation in India & 10th Anniversary of its India Plant Guest Article

Shaping the Future Together Guest Article

Cover Story Infrastructure Sector: Budget Highlights 2018 News Update

ET Now Accorded Shriram Automall

Report

HighRise Buildings: Pros, Cons, Detriments

Product Info

Current Scenario of PVC Industry in India: Agri and Infra to Drive Demand Special Feature

Product Info

Indian Crane Industry: Market is an Attractive yet Challenging Prospect

Special Focus Industrial Lubricants Market: A Brief Review

Eaton Makes Your Home Office and Factory Buildings Safer

BUILD ROAD WITH QUALITY Product Info

Punture Proof Tyres for Severe Duty Applications

Use of Ground Granulated Blast Furnace Slag in Concrete at RMC Plants

Industry Feature

Supreme â&#x20AC;&#x201C; People who know Plastics Best

Report Special Theme

Putzmeister Looks Back at an Eventful Year and Continues to Grow at A Steady Rate

Tata Steel Expand its Capacity by Buying Stressed Assets Industry Focus

Tenders

Projects

Advertisement Index

Event Diary

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Tata Steel Expand its Capacity by Buying Stressed Assets

Tata Steel is keen on pursuing every opportunity to acquire stressed steel assets that can help it expand capacity in the domestic market, the company’s managing director has said. This comes at a critical time as several debt-ridden steel companies like Essar Steel, Electrosteel Steels, and Bhushan Steel are undergoing bankruptcy proceedings under the dedicated insolvency court -- the NCLT (National Company Law Tribunal).

“Such inorganic opportunities come once in a while and we need to pursue them. It is a great opportunity for anyone in the steel industry that has the appetite and ambition to grow in India and steel industry is one of the pioneers in India,” TV Narendran, MD, Tata Steel, said. “We have announced our plans to raise capacity in India. We see great opportunity to grow in India. We are well positioned because we have organic and inorganic opportunities to grow,” Narendran said. He was speaking on the sidelines of the Tata Literary Meet which opened in the city. “Kalinganager has shaped up well. It is in full production and it is the right time to start work on the second phase which has already been approved by the board,” he added. The company is

raising ₹12,800 crore through a mega rights issue that will go into creating additional steel capacity of 5 million tonne in Odisha. Narendran’s comments come close on the heels of Tata Steel announcing a mega bond issue of $1.38 billion last that the company said will help refinance part of its debt in Europe and pave the way for its possible merger of its steel business in Europe with Thyssenkrupp of Germany. Commenting on the Budget expectations, Narendran said the steel industry and Tata Steel would benefit if the government invests more in infrastructure. “You cannot build infrastructure without steel. It forms the biggest component of the steel policy. Secondly, better infra reduces cost of production since logistics remains abig issue in India and drags down production cost. We are also seeing demand coming from construction and rural sectors,” he said.

Centrum Research Downgrades Tata Sponge (TSIL) to ‘Hold’

Centrum Research has downgraded Tata Sponge (TSIL) to ‘Hold’ saying the recent sharp run up leaves less room for growth with the company likely to deploy its surplus cash in setting up its proposed steel plant over FY19-20. TSIL’s spreads in sponge iron business have continued to improve and outlook on sustenance of the same is strong which gives confidence of a smart uptick

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in earnings over FY18-19, the report said. Tata Sponge’s forward integration into steelmaking will be a positive for the company given the improved outlook for the steel sector and the company’s strong parentage, Centrum Research has said in its latest report on the company. However, we would wait for the final details on the capex to factor its impact on TSIL’s fair value, the report said. TSIL’s board had earlier approved setting up of a steel plant of up to 1.5 million tonne (mt) in stages. The plant was tipped to come up using the Blast Furnace -Basic Oxygen Furnace (BF-BOF) combination with approximate size of 0.8 mt in the first phase. This would be a brownfield expansion with a competitive capex and cost per

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tonne. TSIL would be foraying into long products manufacturing in the steel plant and expects to firm up the details of the plant by end of FY18. Centrum said it expected TSIL to start deploying its existing cash pile and internal accruals into the steel plant set up from FY19. In its report, the brokerage also said it revised its estimates on the company’s realisations higher following a sharp jump in prices of sponge iron in line with upward movement in global scrap and steel prices. However, with coal availability in the domestic market remaining tight, it factored in imports/ domestic sourcing of 90% to 10% for TSIL in FY18. In step, it revised its coal costs higher to account for higher global prices.

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JK Cement Production Capacity Will Add 8 Million Tonne Per Annum in Next 5 Yrs

JK Cement is planning to add up to 8 million tonne per annum (MTPA) capacity in the next five years, taking the total installed capacity to around 18 MTPA for grey cements, said a top company official. The company is planning to expand to 3.5 to 4 million tonne in brownfield and greenfield projects separately. The JK Organisation group firm would also invest around Rs 1,200-1,500 crore in brownfield expansion at its Mangrol facility in Rajasthan in the next 24-30

months. “We are looking, in the next 4-5 years to add at least 7-8 million tonne to our capacity and go from 10.5 MTPA to 18 -19 MTPA,” JK Grey Cement Business Head Rajnish Kapur said. He further said: “Now we are looking at a couple of options which we have in grey cement business. We are looking in terms of brownfield expansion at our existing plants to 3.5 to 4 MTPA.” Besides, the company has a greenfield mining license at Panna, and it is also exploring that, Kapur added. “This would give us entry into the new market of central India and diversify geographic expansion,” he added. When asked about the investment in the proposed expansion, he said the company is working on the fine details

and the proposal has to be vetted by the board. In 2016-17 fiscal, JK Cement had a revenue of Rs 4,420.71 crore. “We will be first going in brownfield, which we would target to keep at around Rs 1,200-1,500 crore and then after a couple of years, we would move for (greenfield) expansion,” Kapur said. This capex would happen in 2-2.5 years time. On funding, he said it would be a combination of internal funding and through debts. As part of its growth strategy, the company may also consider inorganic growth opportunities. “If some good opportunity is coming up, then we would keep our options open. We will keep looking and scanning...,” he added. Recently, JK Cements, as part of its CSR activity, hosted the second edition of its social campaign Swachh Ability run, held in Goa, Belgaum, Hubli, Mangaluru and Bengaluru in which 13,000 people participated.

Dalmia Bharat Agree on a on a New Agreement With Piramal Bain Dalmia Bharat Cement, India’s secondoldest manufacturer of the primary building material, has entered into an agreement with the Piramal Bain Resurgence Fund to bid for debt-laden Binani Cement Ltd, two people with direct knowledge of the plan. Piramal Bain Resurgence Fund, the corpus dedicated to stressed assets, and Dalmia Bharat will likely bid for Binani’s 6.25-million-tonnes-per-year plants in Rajasthan, with the National Company Law Tribunal (NCLT) seeking to resolve the debt issue at Binani. Piramal Bain Resurgence fund, floated by billionaire Ajay Piramal and American private equity fund Bain Capital Credit, and New Delhi-based Dalmia Bharat entered into the agreement last week. Dalmia Bharat, which has formidable

cement capacity in the eastern and southern parts of the country, is looking to replicate its success in lime-stone deficient northern India, where Rajasthan is the primary source of supplies to rich agrarian states of Punjab and Haryana, and the more affluent neighbourhoods of western Uttar Pradesh. “The purchase of the Rajasthan unit can cater to the entire northern and western markets,’’ said one of the two persons cited above. Binani Cement has debt of about Rs 3,400 crore and lenders are seeking an enterprise value of about Rs 6,000 crore. Piramal Enterprises, Dalmia Bharat, and Binani Cement declined to comment either on the arrangement or the likelihood of bids.

Lenders dragged Binani to the insolvency court after it failed to repay its dues for the past few years. The company, a profitable one until a few years ago, was hit by Rs 700 crore royalty penalty from the Rajasthan government on its limestone mines in the state. India’s largest cement maker Ultratech Cement, Shree Cement, Nirma, JSW cement and My Home Industries have expressed interest in bidding for the plants. The company is attractive to suitors seeking to expand their business in northern and western India and the Middle East, where Binani has a presence. The company’s India cement plants are located at two districts of Rajasthan - Sikar and Sirohi. Besides, it is present in China and Dubai.

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Steel Ministry Ensuring the Adequate Availability of Rakes for Industries

The Steel Ministry is in talks with the Railways Ministry to ensure the adequate availability of rakes for industries that have been saying the problem has led to a shortage of raw materials at plants, according to Union Minister Chaudhary Birender Singh. Railway rakes are those wagons which carry various raw materials like coal and iron ore to industrial plants. Coal-based steel, power and aluminium plants have been complaining against

ra i l way s fo r raw material supply-related issues due to unavailability of adequate rakes. On being asked about the measures the Steel Ministry is adopting to sort out the ra i l way ra ke shortage issue, the minister said, “This is a problem. We are talking to the Railways Ministry [in this regard],” Singh told PTI. The government understands that a market is very important for business, and for a market, transportation is essential, the minister said. Power industry body Indian Captive Power Producers Association (ICPPA), whose members include players from key sectors such as steel and aluminium, had urged the government to ensure

coal availability, saying most captive power producers (CPPs) are facing severe shortage of the fuel which may lead to closure of plants. Besides, railways is also doing “choosy deliveries”, it said. To meet their loading targets, the zonal railway is making deliveries to plants which are near pits and this is something which is not justified, ICPPA secretary general Rajiv Agarwal had said. Captive power producers are already facing shortage from one body of the government, which is Coal India and now this practice of Railways makes the matter worse, he added. Big steel players like JSPL had also complained about issues related to railway rakes. JSPL chairman Naveen Jindal had said supply and production of steel, aluminium, cement and captive power producers have been hit due to shortage of railway rakes and this situation needs immediate correction, Jindal said. The government should ensure that performing steel assets do not face any shortage of raw material, he added.

Planning to Raise Bengal Production Capacity: JSW Cement

JSW Cement plans to increase the production capacity in West Bengal from 2.4 mtpa to 3.6 mtpa besides a captive power plant in the same location, a top company official said. “The current installed capacity at the Salboni plant is 2.4 mtpa. We plan to build another 1.2 mtpa capacity for which another Rs 300 crore will be spent”, MD of JSW Cement Parth Jindal. The company has already started

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commercial production at Salboni in August, Jindal said, adding an investment of Rs 800 crore had gone to build the 2.4 mtpa capacity. Presently, the total installed capacity of JSW Cement pan-India stood at 11.6 mtpa, he said. Jindal said that JSW Cement would bid for the assets of Binani Cement and Kalyanpur Cement which were with the NCLT for a resolution. He said that JSW would partner with private equity to bid for the assets of Binani Cement having a capacity of 11 mtpa. The capacity of Kalyanpur Cement in Bihar was one mtpa.

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Jindal said the vision was to build a cement capacity of 20 mtpa by 2020. At the Salboni plant, the company so far has given jobs to 155 people of the land losers family from whom the land had been taken. West Bengal Chief Minister Mamata Banerjee inaugurate the Salboni plant. The company had also got into a contract with the state government for managing the super speciality hospital at Salboni as a private partner. Jindal said another Rs 100 crore would be spent on the 18 MW captive power plant.

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Budget 2018: Secondary Steel Makers Demand Removal of Import Duty on Scrap

Secondary steel industry body All India Induction Furnaces Association (AIIFA) has urged the government to remove 2.5 per cent import duty on steel melting scrap in the upcoming budget. The Joint Planned Committee (JPC) under the Steel Ministry has suggested abolition of basic customs duty on import of steel melting scrap, AIIFA Secretary General Kamal Agarwal claimed, adding that the recommendation should be considered. The AIIFA represents electric induction melting furnace industry which produces products like mild steels, low alloy steels and stainless steels and others. Agarwal, who was here for International

Indian Metals Recycling conference told PTI that as per the steel ministry data around 28 million tonnes (MT) of steel was produced from scrap in 2015-16 out of total 52 MT steel that was produced through electric route. India imports close to 7 million tonnes of scrap which leaves with a need to internally generate over 23 million tonnes of steel scrap annually, Agarwal said. Import of melting scrap has become very necessary due to insufficient availability of domestic scrap, he added, adding that removal of import duty will help lower their production cost. To support small and medium steel enterprises which are dependent up to 60 per cent of their raw material requirements on imports, the government should abolish the customs duty for making them competitive against cheaper steel imports, he said. “The necessity of importing scrap has also become important because of

the enforcement of quality control order passed by the steel ministry restricting production and sale of steel whose quality does not meet a certain standard of metallurgical composition and mechanical properties of stress and elongation,” he said. Agarwal said that using melting scrap for making steel offers other benefits like saving natural resources such as iron ore, limestone, coal and water and reduce emissions. Recycling of one tonne of steel scrap saves not only 1.2 tonne of iron ore, 0.7 tonne coal, 0.5 tonne lime stone, 287 litres of oil, 2.3 cubic meters of landfill, 40 per cent less water and overall 58 per cent reduction in GHG emission, he argued. Steel scrap is also necessary for producing quality steel in present scenario. The country imposed 2.5 per cent duty on scrap imports in May 2014. The AIIFA would like to highlight that countries like the US, Europe, the UK, Australia, China, Thailand and Pakistan have no such duty applicable on import of scrap, Agarwal said.

Government Permits Import of Non-Standard Steel Via two More Ports

The commerce ministry has allowed imports of non-standard steel products through Nhava Sheva, Mumbai and ICD-Tughlakabad in the national capital. Earlier, import of these non-prime 12

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products called as seconds or defectives were not permitted through these ports. “Imports of seconds/defectives of steel items...shall be allowed also through Nhava Sheva and at ICD-Tughlakabad, New Delhi, besides the existing customs sea port at Mumbai, Chennai and Kolkata,” the Directorate General of Foreign Trade (DGFT) said in a notification. The DGFT under the commerce ministry deals with export and import related matters. The terminologies like ‘Non-Prime’ or ‘Seconds & Defective’ or ‘Second Grade’

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are commonly used in steel trade and industry. Though, generally speaking, these cover products which are not prime, means, not tested as per the relevant standards specification, there is no laid down criteria or definition for classifying a given products on the basis of their actual characteristics, according to the information provided on the website of the steel ministry. The steel ministry has laid out certain guidelines and criteria for identification of the non-prime (second & defective) steel products based on their characteristics. ||www.constructionmirror.com||

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New Promotional Scheme for Consumers Launches

India Cements, a leading cement manufacturing company, launched a promotional offer for consumers under which they stand to get Chennai Super

Kings (CSK) merchandise and also an opportunity to meet the players. The scheme - ‘Veedu Kattu, Whistle Podu’ was inaugurated by India Cements whole-time director Rupa Gurunath in the presence of Chennai Super Kings captain Mahendra Singh Dhoni. Under the scheme, any consumer purchasing 50 bags (50kg) of Coromandel Super Power - or multiples thereof - between January 19 and April 19 will be eligible to receive an assured

gift from the CSK merchandise range, a press note said. Apart from the assured gift, consumers can participate in a “Punch Dialogue Contest” and winners stand to win prizes including match tickets and jerseys, besides a photo opportunity with Dhoni and the other players during the forthcoming IPL season. Speaking on the occasion, Dhoni said, “I am extremely proud of my association with India Cements ever since the birth of CSK in 2008. For me, Chennai has become second home and I am touched by the admiration I get from CSK fans.”

Sajjan Jindal’s JSW Group Has Highest Bidder for Binani Cement

Sajjan Jindal’s JSW Group has emerged as the highest bidder for Binani Cement, exceeding submissions from billionaire Rakesh Jhunjhunwala and UltraTech, said three people familiar with the development. JSW’s bid is worth about Rs 5,900 crore, they said While the bids were revealed to the committee of creditors two days ago, banks will take a final call on the winner in the coming days. The lenders have appointed consulting firm Alvarez & Marsal to evaluate bids. Bankers are confident Binani is one asset that they won’t lose money on. Cement makers such as UltraTech, Heidelberg, JSW Group, Dalmia Bharat and Ramco Cements besides Jhunjhunwala had made proposals to acquire assets of the debtridden company. Dalmia Bharat partnered 14

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billionaire Ajay Piramal to bid, while JSW submitted its proposal jointly with a private equity firm and Ramco Cement tied up with PE fund True North. ‘No Haircut’ “We have received several bids ranging from Rs 4,500 to a little less than Rs 6,000 crore, which is enthusing,” said a bank official. “I always maintained that we won’t have to take a haircut on this transaction. We will have to study these proposals very carefully to see which the best fit is.” JSW declined to comment on the matter. Parth Jindal, JSW Cement managing director, earlier this week that the group would “aggressively bid for stressed assets in cement, steel, and power that are undergoing bankruptcy proceedings”. Lenders have made a claim of Rs 3,884 crore on the company. This includes loans acquired by Edelweiss Asset Reconstruction Co from banks and dues to State Bank of India, Canara Bank and Bank of Baroda. Apart from this, the company also faces claims of Rs 2,429 crore from IDBI Bank and SBI in the form of corporate guarantees.

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JSW Cement is looking to increase production capacity in West Bengal to 3.6 million tonnes (mt) per year, up from the current 2.4 mt at an estimated investment of Rs 300 crore. The company has already invested close to Rs 800 crore in a 2.4 mt grinding plant at Salboni in West Bengal. It will also invest close to Rs Rs 100 crore for setting up an 18 MW captive power plant. Binani Cement has a production capacity of close to 11mt, of which nearly 6 mt is in India. It has a grinding unit in Dubai and a plant in China. Bank of Baroda had referred Binani Cement to the National Company Law Tribunal (NCLT) in July, after the unlisted subsidiary of Binani Industries failed to repay a Rs 97-crore loan to the lender. Bank of Baroda then appointed Vijaykumar V Iyer as the resolution professional. Originally, the resolution professional set December 22 as the last day for submitting a binding bid for the company, but this was extended to January 15 following requests from companies that had shown interest in the assets. In November, as many as 15 companies, including some international players like France’s Lafarge and Dublinbased CRH, had submitted expressions of interest for Binani. ||www.constructionmirror.com||

Inauguration of 2.4 MTPA Manufacturing Unit at Salboni by JSW Cement

JSW Cement announced the inauguration of its 2.4 million tonne per annum (mtpa) manufacturing unit at Salboni in West Bengal. State chief minister, Mamata Banerjee, inaugurated the state-of-the-art cement manufacturing unit at a function. Sajjan Jindal, Chairman - JSW Group, Sangita Jindal, Chairperson - JSW Foundation; Parth Jindal, Managing Director - JSW Cement; Nilesh Narwekar, CEO - JSW Cement, Biswadip Gupta, CEO - JSW Foundation also attended the event. The event, which took place on the eve of 4th Bengal Global Business Summit to be held between January 16-17 being hosted by the West Bengal government, will boost the state’s ambition to emerge as a major business hub.

At the inaugural function, JSW Cement dedicated its Salboni cement manufacturing unit to the economic development of West Bengal. The state-of-the-art manufacturing unit will produce eco-friendly PSC cement for Eastern markets. The inauguration of JSW Cement’s Salboni unit underscores JSW Group’s commitment to West Bengal’s economic growth and the state’s emergence as India’s leading manufacturing and business hub, an official statement said. Commenting on JSW Cement ’s commitment to stay invested in West Bengal, Parth Jindal, Managing Director - JSW Cement said, “The Salboni unit supports our nation-building goals. Today’s inaugural function marks a significant milestone for both JSW Group

and West Bengal. West Bengal has been a preferred state for setting up one of our biggest cement manufacturing units. We are committed to stay invested in this state and are in fact planning to increase the capacity of our Salboni cement unit to 3.6 mtpa. This will not only mean additional investments but also create new employment opportunities and community initiatives at Salboni. Jindal added: “The unit’s capacity expansion is part of our goal to achieve an overall production capacity of 20 mtpa by 2020. We thank the Hon’ble Chief Minister Smt Mamata Banerjee for joining us on this momentous day. We take immense pride in dedicating the Salboni cement unit to the economic development of West Bengal.” JSW Cement has commenced despatches of Concreel HD cement from the Salboni unit to eastern markets. Concreel HD is a unique cement variant innovated by JSW Cement. It is specially designed for concrete-based construction requirements. Concreel HD provides exceptional strength and sets quickly, thereby making it ideal for strengthbearing applications such as beams, columns, slabs and foundations.

Panel Looking Into Coal Blocks Auctions Process to Submit Report in 6-8 Months: Piyush Goyal A panel headed by former CVC Pratyush Sinha to review coal blocks auction mechanism is likely to submit its report in six-eight months, coal minister Piyush Goyal said. Coal blocks allocation could undergo an overhaul, with New Delhi leaning towards the oil-and-gas industry model that involves sharing production or revenue instead of the existing practice of auctions. Goyal said that the panel will also be exploring the revenue sharing model for coal blocks allocation. The coal ministry has set up a high-power ||www.constructionmirror.com||

expert committee to examine challenges of the current bidding system and suggest changes for conducting future auctions of coal mine. The committee will be headed by former chief vigilance commissioner Pratyush Sinha, former SBI chairperson Arundhati Bhattacharya and ex-chief of Union Bank of India. The panel will also suggest changes in the future coal block bid process in its report to be submitted within a month. The formation of the committee follows an advisory by a government department to the coal ministry pointing out at annulment of last two tranches

of coal mine auctions due to tepid response from the industry. The fourth and fifth round of coal mine auctions to non-power firms have been shelved due to tepid response from companies. The present coal mine auction mechanism has been provided under the Coal Mines Special Provisions Act and the amended Mines and Minerals Development and Regulation Act. The procedure, laid down under the Coal Block Allocation Rules introduced by the NDA government, provides for reverse online auctions for power projects and forward bidding for other uses.

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Rakesh Jhunjhunwala, Radhakishan Damani Team up as Race for Binani Cement intensifies

Billionaires Rakesh Jhunjhunwala and D-Mart promoter Radhakishan Damani teamed up to bid for Binani Cement, two senior executives in the know of the matter said, intensifying the race for the company which is facing bankruptcy proceedings from its lenders. Established cement makers such as UltraTech, Heidelberg, the JSW Group, Dalmia Bharat and Ramco Cements also made proposals on their own or in partnerships to acquire the assets of the debt-ridden company on the last day to submit bids, the people said, speaking on the condition of anonymity. Dalmia Bharat partnered billionaire Ajay Piramal to bid for Binani Cement, while the JSW Group submitted its proposal jointly with a private equity firm and Ramco Cement tied up with PE fund

True North. Competition good news for lenders “ The partnership between Jhunjhunwala and Damani is a big surprise,” said one of the people. “If you look at the list of bidders, it appears that competition will only intensify and lenders may not have to take any haircut.” Lenders had made a claim of Rs 3,884 crore on the company. This includes loans acquired by Edelweiss Asset Reconstruction Company from banks and dues to State Bank of India, Canara Bank and Bank of Baroda. This apart, the company also faces claims of Rs 2,429 crore from IDBI Bank and SBI in the form of corporate guarantees. Bank of Baroda had referred Binani Cement to the National Company Law Tribunal in July, after the unlisted subsidiary of Binani IndustriesBSE 0.85 % failed to repay a Rs 97-crore loan to the lender. Bank of Baroda then appointed Vijaykumar V Iyer as the resolution professional. Originally, the resolution professional set December 22 as the last day for submitting a binding bid for the company, but this was extended to

January 15 following requests from companies that had shown interested in the assets. In November, as many as 15 companies, including some international players like France’s Lafarge and Dublinbased CRH, had submitted expressions of interest for Binani. The lenders had appointed consulting firm Alvarez & Marsal to evaluate the bids. Binani Cement has a manufacturing capacity of 11.25 million tonnes a year with integrated plants in India and China, and grinding units in Dubai. Bidders are required to provide a plans on either acquiring the company fully or its assets. The resolution professional has received a total claim of around Rs 7,500 crore from financial and operational creditors. The claim of Rs 2,429 crore over corporate guarantees is in dispute between the resolution professional and the lenders. Driven by the resolution of stressed assets, the cement industry is going through a consolidation phase. A fortnight ago, Dalmia Bharat announced a deal to acquire Murli Cement, one of the companies facing bankruptcy proceedings. Earlier, UltraTech Cement had bought the cement plants of Jaiprakash Associates for Rs 16,189 crore, increasing its capacity to 93 million tonnes.

Tata Steel and Indian Institute of Metals have its 7th Asia Steel International Conference Tata Steel in association with the Indian Institute of Metals announced the 7th Asia Steel International Conference to be held in Bhubhaneshwar from February 6 to 9. The conference will address and focus on different challenges faced by the steel industry like optimising specific consumption of raw materials, especially coke and iron ore, usage of low-grade 16

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raw materials, along with decreasing the energy consumption in various ironmaking and steelmaking operations and, thereby, reducing carbon dioxide emissions. It will also be a platform for steel experts to discuss new surface treatments, innovative and green technologies for ironmaking and promoting automation and digitization in steel industry as well.

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Cement Bag Costs Rs 8000 at this Border Town in Arunachal

Believe it or not, people living in Vijoynagar town of Arunachal Pradesh pay Rs 8,000 for one bag of cement, that too if it is available. Vijoynagar, a sub-divisional town under Changlang district with just 1500 residents, has no proper surface communication. People have to walk for five days from the nearest thoroughfare in Miao to reach the town. Though there is a weekly helicopter service for transporting supplies but that is largely subjected to weather condition. “People in this town, mostly inhabited by Chakmas and Hajongs, charge Rs 8,000 for a bag of cement and flat Rs 2,000 for WC pan,” Public Health Engineering department junior engineer Jumli Ado told . The PHE department is undertaking construction of Individual Household Latrine (IHHL) in the town, a project partially funded by Centre - Rs 10,800 from the central government and Rs

9,200 by the state for one IHHL. “All materials are transported to Vijoynagar, at the IndiaChina-Myanmar tri-junction, through Namdapha National Park by Chakmas. They charge Rs 8,000 per bag of cement (Rs 150 per kg),” Ado disclosed. They carry those materials physically and walk down 156 km for five days to reach the destination, Ado said, adding one could imagine the challenges this hilly state faces in achieving the open defecation free (ODF) status by December. Ado, while taking part in Swachh Bharat Abhiyan - Gramin (SBA-gramin) awareness programme at Namphainong village of the district on November 4, had said despite numerous challenges IHHL project is moving at a fast pace. State Civil Supply Minister Kamlung Mossang, who represents Miao assembly constituency, said the state government has approved a road construction project for the area. Bordumsa village (headman) Shekhep and ODF consultant Nyabon Pongtey added that journey to Vijoynagar by foot is a herculean task. Development naturally moves at a snail’s speed in this part of the state, they said. “Union Minister of State for Home Kiren Rijiju had announced in Itanagar in July 2014 a central government proposal to

populate nearly 100 villages situated along the border. Though Arunachal shares international boundary of 1,680 km with Bhutan, China and Myanmar, the the project has not seen the light of the day,” Shekhep lamented. Development is still a mirage in this sensitive border state for lack of connectivity even after three decades of establishment. Many of the inhabited villages in far-flung areas are inaccessible and deprived of essential commodities. The North Eastern Frontier Agency (NEFA), largest among seven NE states, was created in 1954. It became a union territory and was renamed Arunachal Pradesh on January 20, 1972 and finally statehood on February 20, 1987. The Central Purchase Organization (CPO) with base at Mohanbari in Assam’s Dibrugarh district, now known as the public distribution system (PDS), was very effective in the 80s when essential items were airdropped in many remote areas. With the PDS proving ineffective, today salt which costs Rs 20 per kg in state capital is about Rs 250 in many border areas, including Vijoynagar. “People living in the border areas are forced to migrate to urban places for lack of basic amenities. These ghost towns along the border are one of the reasons why China is entering the territory,” former finance minister Late Kalikho Pul had told a tribal ministers’ conference in New Delhi on October 28, 2014.

NHAI toll Plazas will Facilitates Highway Nest, Food & Beverage Kiosks Toll plazas run by NHAI will soon have kiosks selling drinking water, tea/coffee, and packaged food for the convenience of highways users, the government said. “Termed as Highway Nest, these kiosks are under construction on both up-side and down-side at all 372 NHAI run toll plazas,” Ministry of Road Transport and Highways said in a statement. 18

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These kiosks are being built on 10mx20m paved platforms about 200-250 metres from the toll plaza, it said, adding that toilet facilities including that for the physically challenged are also available at these sites. “ Two Highway Nests have been inaugurated - one at Narayanpura toll plaza on NH-76 on Udaipur-

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Chittorgarh-Kota route under Regional Office, Jaipur and another at HyderabadVijaywada section of NH-65, Korlapahad toll plazas at km 118.250 (TP-2) under RO Hyderabad,” the statement said. Efforts are being made to have the Highway Nest in place on all the remaining toll plazas by the end of March 2018, it added. ||www.constructionmirror.com||

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ews of the Month

MB CRUSHER, GREAT IDEAS SINCE 2001 The story of a product that has revolutionised work on construction sites.

The first crusher bucket was introduced in 2001. It was invented by five brothers from Breganze. “We were born and raised amid the oil, grease and diesel of earth-moving machines - say the Azzolin brothers - We worked with them day and night. We’d had an idea buzzing around in our heads for some time though; to come up with an economic and innovative way to reuse the waste materials around the yard. Something that would reduce the costs of transporting and disposing of waste material.” There were already solutions out there: fixed and mobile crushers, screening plants, etc., but there was one problem: they were all costly to purchase, transport and maintain. And not all of them could be used on any type of construction site, especially sites in hard-to-reach locations or urban areas. “Then we had an idea. We already had excavators at the construction site, which we used with digging buckets and demolition hammers. That’s where we got the idea of making a bucket that could dig up the material and crush it at the same time. We researched it, designed it and patented it. Then we tested it with the machines on our construction sites. It was a great idea. That’s how the Meccanica Breganzese

was created, and it’s now known all over the world as the MB Crusher. MB is synonymous with crusher bucket”. It’s been more than 16 years since that time; years spent on technical research and development of dozens of patents, associated all over the world with a business that’s constantly being updated with new products. Years of creation and innovation that have seen the family business evolve into an international company, and created a new market segment that has improved and accelerated the work of thousands of companies. “In 16 years, it’s not just the market that’s changed - say the brothers - we’ve also grown in terms of turnover, international reach, the number of products we make - from one, we now have 30, and the number of employees - the company now has over 150.” The MB crusher bucket has also become the symbol of a worldwide campaign in which the search for maximum productivity is combined with an awareness of the need for rational and economical use of natural resources. “We live in a time where people all over the world are concerned about what will happen in the future - the company explains - and are wondering how best to use available resources more

sparingly. The population continues to grow, and with it the demand for raw materials. It’s precisely for this reason that the waste material processing equipment sector has evolved so rapidly and brought cutting-edge solutions to construction sites. Solutions like the MB crusher bucket; a product that creates value, is good for the environment and brings in profit for the companies that use it.” A product that the company exhibits and puts to work at the industry’s biggest showcases all over the world: trade fairs, exhibitions, demo tours etc., and it’s already started for 2018 from the very early days. An MB equipment demo tour of Chile and Brazil started in January. A demo trial has been set up for the “World of Concrete” fair in Las Vegas. In March, the demo tour will cover large parts of South America, Algeria and Turkey. Also in March, we’ll be at the “Mawev Show” in Austria, “Aquibat” in France, the “Big5 Heavy” in Dubai, and “Marble Izmir” in Turkey. In April, MB machines will be on demo at “Expomin” in Chile, “Diesel Dirt & Turf” in Australia, and the “Intermat” fair in France. Many other events will follow all over the world, right up to the end of the year.

ABB India Bags Order from Emami Cement

ABB India said it has bagged an order from Emami Cement for an automation and electrical system for a greenfield plant in Odisha.

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“A B B India has received an order for an automation and electrical system for a 2 MPTA greenfield plant in Odisha by Emami Cement, the flagship co m p a ny o f t h e Kolkata-based Emami Group,” ABB India said in a statement. According to the statement, Emami is setting up advanced and energy-efficient cement plants to meet the future demand of cement from the steadily rising

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infrastructure spend in the country. The solution implemented will minimise energy consumption and enhance the overall plant performance helping the plant support infrastructure growth in the region. ABB will be undertaking complete project implementation including supply, erection, testing and commissioning for the electrical distribution and distributed control system (DCS). The 800xA DCS will help monitor, control and optimise the cement manufacturing process while maximising plant uptime.

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ews of the Month

Birla White Poised to Help Customers Realize Their Dream Home Company has enhanced its products range to provide end-to-end solutions Birla White, a twenty nine years old pioneer company in cement industry which is a part of the US $41 billion Aditya Birla Group, has added new range of products like Terrazzo Flooring, Pointing (With Stone and Glazed Tiles), Mosaic Tiles, Decorative Plasters, Textura, etc to add color to the dreams of its customers. These products are being directly sold to customers via retail shops in India. Through continuous research & innovation, Birla White has come up with several end-to-end solutions & products. Continuing on this journey, the company has maintained the highest NPS (Net Promoter Score) in the category, has continuously taken ideas from the markets & basis these, Birla White has forward integrated in surface coating solutions space, which has predominantly been a Paint bastion. Birla White has a state of the art R&D center at Kharia where it has enhanced its products range from being just a white cement supplier to end-to-end 22

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solutions provider offering brands such as Birla White Wall Care Putty, Textura, Level Plast, GRC (Glass Reinforced Concrete) Brands. ‘‘Birla White has moved up the value chain and currently we are offering a wide range of value added products in addition to white cement and wall care putty. says Anurag Angrish, Joint executive president, marketing, Bilra White. Birla White considers its customers in the highest regard. To this effect, the company has been proactive in understanding its customer’s needs. The company has pioneered the creation of an entirely new category of Wall Care Putty in India as a substitute to the expensive Acrylic Putty and inferior quality traditional product -Laambi. Company has also created water, algae and fungi resistant, high adhesive strength products that resists weathering effects and offer durability to fulfill consumers’ desires to enhance consumer experience.

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Birla White boasts of the best in category products in white cement with superior whiteness and higher coverage. With intensive research they have added technical sophistication through Extra HP Polymers which enhance the water resistance property and adhesive strength for wall care putty. Birla White invests lot of time and resources to train its partners (both men and women) to achieve certification which provides them a better future and enhanced skillability. A world class training module has been established known as‘Vikas Training’ across India with the first center developed at KhariaKhangar, Rajasthan, where the first Birla White plant is located. A special painter-engagement program ‘Kaam perfect, toh naam perfect’ was undertaken to educate painters on the right wall-finishing-processes and the uniqueness of Birla White Wallcare as the ultimate solution to long lasting smooth walls. ||www.constructionmirror.com||

VTP Realty Expands Its Footprint in Pune with Two New Projects VTP Realty, one of Pune’s largest forward integration company, announced the launch of its two new projects: VTP Celesta at NIBM and VTP Solitaire at Baner. Both the properties have a mesmerizing frontage and a self-sustained lifestyle opportunity that is too good to turn down for any prospective home buyer in these localities. VTP Realty has always delivered projects of unmatched quality to its customers. Their principles of Better Build, Better Design, and Better Care makes them one of the most sought after real estate players in the Pune market. Their new projects Celesta and Solitaire will cater to the rising needs of luxurious homes in Pune. Spread over 1.7 acres, VTP Celesta offers 3 bed luxury homes, 150 acres of forest view at the highest point of South Pune, it is designed and planned by world-renowned architect – Reza Kabul. It is in close proximity to various malls, supermarkets and other facilities that one needs. A designer entrance lobby, three tier security and thoughtfully planned recreation space outside and optimized living spaces and premium specifications including a walk-in wardrobe inside make it an ideal place to feel heavenly. VTP Solitaire on the other hand is located at BanerPashan Link Road. Baner is the hub of west Pune and a hotspot of socializing and well connected with prime areas like Aundh, University Road, Hinjewadi (The IT hub of Pune), Pune Mumbai Highway, Wakad and Pashan. It spans over 2.25 acres offering 2 and 3 BHK flats, with 16 story exclusive tower and 3 level car parking- tallest in the vicinity with spectacular and spellbinding view of Bio Diversity Mountains. The property also boasts of amenities such as amphitheater, swimming pool, clubhouse with gymnasium, Earthquake resistant structure, a lavish entrance lobby with a security desk, two high speed passenger & stretcher premium elevators with power back-up etc. Commenting on the occasion, Mr Sachin Bhandari, CEO VTP Realty said, “VTP Realty always believes in providing the best living experience to customers. Luxury lifestyle is fast catching up in Pune and with the growing number of high-net individuals in the city, we at VTP are working towards providing that little extra to the customers. We are constantly trying to redefine luxury by developing premium and innovative projects. Both our projects, VTP Celesta ND VTP Solitaire, would bring together exclusivity, space and luxury under one roof.” VTP Realty VTP Realty is backed by the 30 – year young VTP Group, holding a prominent position in supplying best quality raw materials; cement & steel in Maharashtra. VTP Group has successfully constructed close to 100 projects for Government agencies, infrastructure companies and reputed real – estate developers across the country.VTP Realty ||www.constructionmirror.com||

is building best – in – class residential & commercial spaces in premium, middle- income and affordable segments, catering to each class of the society. VTP Realty’s values are rooted in customer delight. The company echoes its aspiration by offering homes at the highest tier of the MIG segment. VTP Realty can be fully relied on for delivering superior quality, transparency and maximum value to the last detail with every property. Present in all prime locales of Pune, the projects range between Rs. 11 Lakhs and Rs. 1.5 Cr.With most of the project offeringsand a special focus on delivering customer delight in the MIG segment, it aims to become one of the top 5 developers in Pune by 2020. VTP Realty places great attention in building homes that ‘they (VTP) would be happy to live in’. After sales and CRM is of utmost importance at VTP and they go to such lengths as organizing and funding society’s cultural events / community building initiatives on site to bring people together and break the ice during the first 6 months. They also stand by their product and pride themselves on responding and remedying any snagging issues that occur, post possession of the property, quickly and thoroughly.

Below is a list of ongoing VTP Projects: PROJECT

LOCATION

TYPE OF PROJECT

URBAN SENSES

Kharadi

MIG

URBAN BALANCE

Magarpatta Road

Lifestyle

URBAN NEST

Undri

Commercial, Retail, MIG

URBAN RISE

NIBM Annex, Pisoli

MIG

URBAN LIFE

Talegaon

MIG

VTP PURVANCHAL

Kesnand-Wagholi Road

MIG

BHAGYASTHAN

Talegaon

Low cost housing

Some of their upcoming projects are: PROJECT VTP CELESTA

LOCATION NIBM

TYPE OF PROJECT Lifestyle

VTP SOLITAIRE

Baner

MIG

KP SQUARE

PCMC

Commercial & Retail

WEST ICON

Wakad

Commercial

HIGH LIFE

Wakad

Residential - MIG

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he government have made a certain attempted to face and upgrade the challenges in the CE industry through different prospects in the nearly announced budget 2018, We have seen such changes in the attempted by the government. We have realised that the major emphasis given to the road construction; as Bharatmala project and Sagarmala project which is key areas of government to be concern on.

Cover Story

Infrastructure Sector Budget Highlights 2018 24

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eal estate & construction is a pivotal cog of economic growth for India, as it contributes the third highest share to the Indian economy & is also the third largest employer in India. Further, it accounts for the second highest inflows of FDI in India. Though the commercial asset classes have been witnessing healthy traction, the residential asset class has been plagued with no. of issues/challenges such as demand-supply mismatch across segments, project delays & liquidity issues. Additionally, the real estate sector has limited access to long-term funding, taxation & fees structures are either complicated or irrational, leading to higher project cost impacting the enduser/buyer. It is believed that the sector has the potential to grow at a considerably faster pace, but for that to happen, the prevalent challenges have to be overcome first. The govt. has made an attempt to address some of these challenges to a certain extent, through the proposals announced in the Union Budget 2018-19, with focus on providing thrust to affordable housing & infra.. Some of the key announcements made for real estate & construction include: granting an infra. status to affordable housing projects, which has been a long standing demand of the supply side stakeholders; highest ever allocation to the infra. development (Rs. 3.96 lakh Cr). relaxation in area requirements & time period for the completion of a project; reduction in holding period to 24 months from 36 months for long-term capital gains tax on immovable properties We believe that these announcements coupled with others would benefit the govt. in achieving the vision of ‘Housing for All’ & improve urban as well as rural infra. by attracting higher interest from private sector developers & domestic as well as foreign investors. India will invest as much as Rs. 5.97 tn in creating & upgrading infra. in the next financial year, finance minister Arun Jaitley said in his budget speech. Infra. development has been one of the focus areas of the current govt.. Starting with an allocation of around Rs. 1.81 tn in 2014-15, expenditure towards infra. reached Rs. 4.94 tn in 2017-18. “Our country needs massive investments estimated to be in excess of Rs. 50 lakh Cr. in infra. to increase growth of GDP, connect & integrate the nation with a network of roads, airports,

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over Story

railways, ports & inland waterways & to provide good quality services to our people,” Jaitley said. To raise resources, state-owned firms will access the equity & bond markets. The budget also levied a Rs. 8/ litre road & infra. cess on imported petrol & diesel. “The govt. & market regulators have taken necessary measures for development of monetizing vehicles like InvIT & ReITs in India. The govt. would initiate monetizing select CPSE’s assets using InvITs from next year,” Jaitley announced. These measures will be operationalised given that India will face a $526 billion infra. investment gap by 2040, according to the latest Economic Survey. “RBI has issued guidelines to nudge corporates to access the bond market. SEBI will also consider mandating, beginning with large corporates, to meet about one-fourth of their financing needs from the bond market,” he added. As part of the new integrated infra. planning model, the NDA govt. unveiled the largest-ever rail & road budget of Rs. 1.48 tn & Rs. 1.21 tn, resp. in 2018-19. Jaitley said that during 2017-18, the cabinet approved the ambitious Bharatmala (roads) scheme to strengthen the roads network, for which the govt. will raise Rs. 5.35 tn as equity from the market. India needs funds for ambitious plans such as Sagarmala (ports) & Bharatmala to improve its transport infra.. “To raise equity from the market for its mature road assets, NHAI will consider organizing its road assets into special purpose vehicles & use innovative monetizing structures like toll, operate & transfer (TOT) & InvITs,” Jaitley said. While the total investment for Bharatmala is estimated at Rs. 10 tn; the largest ever outlay for a govt. road construction scheme an additional Rs. 8 tn of investments will be needed for Sagarmala until 2035. “We are confident about complete national highways exceeding 9000km length during 2017-18,” Jaitley said. The country has a road network of 3.3 million km, the second largest globally. India has been constructing highways at a rate of 27-28km/ day, with the aim of speeding up the construction rate to

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41km/ day. The finance minister also announced the govt.’s new roadmap for infra., which included plans to introduce seaplanes & a passengerfriendly toll policy. Jaitley said the govt. was working on a “pay as you travel” policy for toll plazas. Mint first reported on this policy in May last year. Even as a budgetary allocation of Rs. 73.31 Cr. has been made for AAI from Rs. 149.93 Cr. in 2017-18, AAI is to raise Rs. 4,086 Cr.. Apart from creating infra. for seaplanes to boost connectivity, the push will also be towards the govt.’s regional connectivity scheme, that has already connected 16 new airports & aims to connect 56 unserved airports & 31 helipads. The scheme, UDAN, which loosely translates to “Let the common man fly”, proposes that at least half the seats on every flight should have a fare cap of Rs. 2,500/ seat/ hour of flying. Udan partly subsidizes such fares through a cess on flights to metro cities. It will cost the govt. about Rs. 800 Cr. annually, some of which is being recovered through the cess on metro flights. The budget demonstrates a very significant push on infra., including rural infra., as well as for immediate job creation as well as supporting long-term employability through education & skill development is very encouraging. The real estate sector has been facing a no. of issues, of which some of the major ones are enlisted below: While there is a significant shortage of housing in urban regions, it is estimated that the top-eight cities in India have approximately 6.5 lakh units of unsold housing stock. At the current rate of absorption, it may take over five years to clear the housing stock in regions, such as Delhi-NCR, which has the highest unsold inventory. There is a scarcity of developable land in urban areas, & peripheral regions of cities lack appropriate urban infra., which escalates the final project cost. One of the major issues that the real estate sector is facing is lack of clear land titles & land title insurance, which lead to litigations & causes project delays. Despite the real estate sector contributing the third highest share to the Indian economy, the share in outstanding loans from

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banks to the sector is extremely low at 3%.17 This results in limited access to long-term & low-cost funding channels, especially through banks & external commercial borrowings (ECB) route. The real estate sector has been grappling with liquidity issues & piling debt. The total outstanding debt of listed real estate developers in India has risen from Rs. 25,000 Cr. in FY07 to over Rs. 83,000 Cr. in FY1618. Lack of a strong micro finance sector makes it difficult for the EWS & LIG to secure housing finance credit. With over 30-35 regulatory approvals required to be obtained by a developer to develop a real estate project in India, the whole process becomes cumbersome & also leads to delays, which inflates the project cost by 20–30%. Higher rates of statutory fees & taxes, including multiple taxation inflate the cost of construction, making affordable housing projects financially unviable for the private sector developers. Unfavourable taxation structure for REITs impact the launch of REITs in India. Union Budget aims to provide thrust to increase govt. spending in rural areas, infra., alleviate poverty & maintain fiscal prudence. Govt.’s agenda for next year would be: ‘transform, energise & clean India’. Major policy announcements: Infra. status has been accorded to the affordable housing projects. Rural housing expenditure increased from Rs. 15,000 Cr. to Rs. 23,000 Cr., under Pradhan Mantri Awas Yojana (Gramin). Over one Cr. houses to be built for the homeless in rural areas by 2019. The National Housing Bank (NHB) would refinance individual housing loans of about Rs. 20,000 Cr. in FY2017-18. Allocation to infra. sector is at a record high of Rs. 3.96 lakh Cr. for FY2017-18, an increase of over 38% over the previous fiscal year. The pace of construction of roads under the Pradhan Mantri Gram Sadak Yojana (PMGSY) has accelerated to reach 133km/ day in 2016–17, as against the average of 73km during the period 2011–14. The Airport Authority of India Act would be amended to enable effective monetisation of land assets. The govt. is dedicated ||www.constructionmirror.com/net|| ||www.constructionmirror.com||

towards improving the ease of doing business in India. A no. of tribunals are expected to be rationalised & appropriate tribunals would be merged to reduce overlapping functions. Foreign Investment Promotion Board (FIPB) to be abolished in FY2017-18 & a road map is to be announced. Liberalisation of FDI policy under consideration & necessary announcements to be made in due course. The govt. plans to amend, simplify & rationalise the existing labour laws through legislative reforms. The existing law would be amalgamated into four codes: wages, industrial relations, social security & welfare, & safety & working conditions. A specific programme for the development of multi-modal logistics parks, together with multi-modal transport facilities, would be drawn up & implemented. Key direct tax proposals Corporate tax: Corporate tax rate reduced to 25% (for FY2017-18) for companies whose total turnover or gross receipts of FY2015-16 does not exceed Rs. 50 Cr.. In all other cases, the tax rates continue to remain the same. Certain conditions for claiming 100% profit linked deduction by a developer of affordable housing projects as introduced by Finance Act 2016 has been relaxed as under: - With respect to eligibility limits of 30 sq. meters & 60 sq. meters - built-up area has been substituted by carpet area as defined under Section 2(k) of Section 2 of the Real Estate (Regulation & Development) Act, 2016; - Time limit for completion of a project extended from three years to five years from the date of approval by the competent authority; - Limitation on size of residential unit of 30 square meters shall be applicable only to four metro cities (Chennai, Delhi, Kolkata & Mumbai) & shall not apply to a place located within 25km from the municipal limits of such four metro cities. Annual value of unsold stock-in-trade in the hands of real estate developers held for a period beyond one year from the end of the financial year in which the certificate of completion of construction is obtained, proposed to be notionally taxed as deemed let out property under the head ‘income from house property’. In order to qualify as long-term capital ||www.constructionmirror.com/net|| ||www.constructionmirror.com||

asset, period of holding for immovable property being land or building or both proposed has been reduced from 36 months to 24 months. It is proposed to shift the base year for indexation from 1981-01. Thus, if the actual cost of capital asset acquired before 1 Apr’01 is less than the Fair Market Value (FMV) as on 1 Apr’01, then such FMV to be deemed to be the cost of acquisition. The concessional rate of TDS under Section 194LC on interest payment on borrowings made in foreign currency (ECB) extended from 30 June 2017 to 30 June 2020. Similarly, concessional rate of TDS under Section 194LD has been extended on interest payable up to 30 Jun’20 on rupee denominated bonds (Masala Bonds). With respect to Rupee Denominated Bonds issued overseas (Masala Bonds), following relaxations have been proposed: - Benefit of 5% tax rate on interest extended to Rupee Denominated Bonds - Gains arising on appreciation of rupee against a foreign currency at the time of redemption of Rupee Denominated Bond of an Indian company extended to secondary holders - Non-resident (NR) to NR transfers of rupee denominated bonds not taxable. Scope of deemed taxation under the head income from other sources in terms of Section 56(2)(vii) & Section 56(viia) is widened to tax all kinds of assesses who are in receipt of any money/property without consideration or for inadequate consideration. In cases where consideration for transfer of unquoted shares of a company is less than the FMV of such shares, the FMV to be treated as the full value of consideration for computing ‘capital gains’. Manner of computing FMV to be prescribed. Loss under the head ‘income from house property’ over Rs. 2 lakh shall not be eligible to set-off against income under any other head of income. The excess is to be carried forward for a period of eight years for set-off in future years. Thin capitalisation norms proposed to limit deduction of ‘excess interest’ expenditure paid by an Indian company (or permanent establishment of a foreign company in India) to its non-resident associated enterprise. ‘Excess interest’ means interest paid (exceeding Rs. 1 Cr.) in excess of

30% of EBITDA or interest paid to its non-resident associate enterprise, whichever is lower. Excess interest amount could be carried forward for eight assessment years; Eligibility to carry forward & set off MAT/Alternate Minimum Tax (AMT) credit increased from 10 years to fifteen years from the end of the assessment year. Also, MAT provisions for computation of book profits proposed to be aligned with the provisions of Companies Act 2013 & IndAS. No changes made in the taxation framework of REITs. Personal tax: In case of Joint Development Agreements (JDA) under area sharing arrangement, the capital gains in hands of individuals & HUFs is to be taxable in the year of receipt of certificate of completion for the whole or part of the project based on the stamp duty valuation. Withholding tax at 10% to be deducted at the time of payment/credit of monetary consideration. Specified capital gains exemption to land owners, being individual or HUF in the state of Andhra Pradesh in relation to land pooling scheme. No change in slab rates of tax except as under: - Tax rate on income above Rs. 2.5 lakh/ Rs. 3 lakh (as the case may be) upto Rs. 5 lakh reduced to 5% from that of 10% - Surcharge to be levied at 10% in case total income exceeds Rs. 50 lakhs but does not exceed Rs. 1 Cr.. Individuals/ HUFs who are not subjected to tax audit, are now required to withhold tax at source at 5% from rental payments in excess of Rs. 50,000/ month. Other key proposals: Indirect transfer provisions not to apply to Category - I or Category – II Foreign Portfolio Investors registered under the Securities & Exchange Board of India Act, 1992. Conversion of preference shares of a company into equity shares not to be regarded as a transfer under Section 47. Further, the cost of acquisition & period of holding of preference shares to be considered for determining cost of acquisition & period of holding of equity shares. Scope of additional tax on dividend income exceeding Rs. 10 lakh proposed to be widened to include all resident assesses except for domestic companies & certain trusts/funds.

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Applicability of concessional tax rates on capital gains on unlisted shares - The Finance Act, 2016 had amended Section 112 to clarify that the concessional tax rate of 10% shall also be applicable to capital gains earned by a non-resident on sale of shares of a private company. The aforesaid amendment is to be applicable retrospectively from 1 Apr’13 (i.e., AY 2013-14 onwards). Cash receipt in excess of Rs. 3 lakh to attract penalty at the rate of 100% of amount received. Cash expenses in excess of Rs. 10,000/ day, whether revenue or capital in nature, shall not be allowed as a deduction/depreciable. Applicability of domestic transfer pricing provisions restricted to apply only in case one of the entities involved enjoys specified profit linked deduction. Transactions referred in Section 40A(2) (b) which disallows certain expenses paid to related parties excluded form applicability of domestic transfer pricing provisions. Key indirect tax proposals: GST Council has arrived at a consensus on key GST issues & the IT preparedness for the GST roll out is also on schedule. Consultation with trade & industry bodies on GST is scheduled to start from 1 Apr’17. Minimal changes have 28

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been proposed in view of GST roll-out. Retrospective service tax exemption (i.e. from 1 Jun’07 to 21 Sep’16) on one time upfront amount payable for grant of long-term lease of industrial plots (30 years or more) by state govt. industrial development corporations/ undertakings to industrial units. Retrospective amendment with effect from 1 Jul’10 to exclude value of land/ undivided share of land, in addition to the value of goods, for computing service portion in execution of works contract (involving transfer of goods & land/ undivided share of land). Impact: Infra. status accorded to affordable housing: Granting of infra. status to affordable housing is likely to provide impetus to the govt.’s mission of ‘Housing for All by 2022’. With the infra. status, the developers will have access to cheaper funding by way of debt which would result in reduction of overall cost of homes to the buyer. Further, this would see a likely increase in participation from domestic & foreign players in the affordable housing sector.. Relaxation of conditions to claim tax incentive for affordable housing projects: The proposal of the govt. to relax the size req. for residential units from built-up area to carpet area

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would enable the real estate developers expand customer base & also claim tax deduction Further, the govt.’s proposal to increase the time limit allowed for completion of the project from three years to five years would expand the no. of projects eligible for tax incentives.. Clarity on point of taxability & manner of computation in case of JDA: The govt. has provided that capital gains on entering into JDA in the hands of land owners being individuals & HUFs would be taxable in the year of receipt of certificate of completion for the whole or part of the project. Further, the govt. has also provided that the stamp duty value of the individual or HUF’s share in the land or building or both would be the full value of consideration for the purpose of computation of capital gains. It is a welcome move by the govt. considering the genuine hardship faced by the land owners in paying tax in the year of transfer when the consideration is received near to completion of a project. However, the said relaxation has not been provided to the corporate & other non-corporate entities. Considering the benefit is only provided to the individual & HUF assessee, the overall objective of reducing tax burden on an assessee ||www.constructionmirror.com||

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CONSTRUCTION MIR ROR

over Story

facing genuine hardship will not be completely achieved.. Taxability of notional income from house property held as stock-in-trade: This proposal of the govt. will have a far reaching impact on real estate developers who own property as a stock in trade. Prior to this proposal, there was significant tax litigation relating to taxability of notional income for unsold stock in the hands of real estate developers. As/ the new proposal, the house property which is not let out & held by the real estate developers as stock in trade will suffer tax on notional rental income after completion of one year from the end of the financial year in which the certificate of completion of construction of the property is obtained. As a result, there will be pressure on real estate developers to sell the stock within the stipulated time period in order to avoid tax on the notional rental income. Correspondingly, it could result into rationalisation of the real estate prices & reduce unsold inventory levels. This proposal would also raise a fundamental question relating to characterisation of rental income as income from house property or income from business & profession in the hands of real estate developers. Thin capitalisation rules: The govt. has proposed introduction of the thin capitalisation rules which restricts the interest deductibility to the extent of 30% of EBITDA on payments to nonresident associated enterprises. Considering the fact that the real estate sector is a highly capital intensive industry & generally overseas investors infuse funds in the form of debentures (i.e. NCD/CCD), the restriction of interest deductibility will have an impact on raising low cost funds from overseas investors at a juncture when currently the industry is facing a financial crunch.. Rationalisation of capital gains provisions: The period of holding long-term capital gains in the case of land/building has been reduced to 24 months from 36 months. The base for determining the indexed cost of acquisition of an asset has been shifted from 1981 to 2001. The said proposals will significantly reduce the

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capital gains tax liability on both counts viz. the reduction of holding period & also shifting of base from 1981 to 2001.. Major focus on infra. push likely to have considerable benefits for the real estate sector: The govt. announced several policy measures for the infra. sector such as, the amendment of the Airport Authority of India Act, a new Metro Rail Policy, & the dispute resolution mechanism for infra. related construction contracts, PPP, & public utility contracts. Req. mechanism would be instituted as part of the Arbitration & Conciliation Act 1996 & an amendment Bill would be introduced for the resolution of disputes arising out of such contracts. These initiatives are likely to revive the private sector participation in urban infra. projects. As a result, infra. sector is expected to attract higher investment going forward, leading to higher availability of much required infra. in urban regions, which may benefit real estate developments. In the wake of the setback suffered due to demonitisation, the Finance Minister in his budget speech has made some key announcements which would provide the much needed impetus to the real estate sector. However, there are still certain areas which remain to be addressed as discussed hereunder: Granting infra. status to the real estate sector (other than affordable housing) to help attract higher investments in the sector. Single window clearance mechanism to reduce gestation period of realty projects & cost to end buyer. Allowing FDI in an LLP engaged in real estate development & construction;– doing away with performance linked criteria. Allowing developers to raise funds through ECB. Removal of MAT levy on SEZ developers & affordable housing projects. Rationalise & revitalise laws related to land acquisition & development, eliminate multiple local levies & taxes to foster growth of the real estate sector. Rationalisation of RERA provisions across various states & fair implementation of RERA regime. Rationalisation of provisions relating to REIT/InvIT more specifically: - Relaxation of holding period of 36 months for units to qualify as a long-term capital

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asset; - Providing exemption from tax to immovable property transferred directly to REIT; - Providing exemption from dividend distribution tax on dividends to be distributed by an SPV to holding company. - Exemption provisions relating to DDT & interest income should be extended to two level SPV structure. Removal of deemed taxation based on stamp duty valuation. Relief by way of additional tax incentives to first time home buyers (including enhanced deduction on principal repayment & interest on housing loan). Only in the case of individuals & HUF, the capital gains taxability on JDA transaction has been shifted to the year of completion of a project. The said relaxation should also be extended to corporate & other non-corporate entities. Clarity around some of the contentious issues such as applicability of service tax on transfer of development rights, long-term leasing of land, etc. would have helped the sector. Allowing CENVAT credit of service tax paid against the renting activity would have resulted in reducing the cascading effect. The announcements made in the Union Budget, coupled with policy reforms undertaken such as RERA & Model GST Law earlier this fiscal are expected to lead to higher investments in the sector, especially in the affordable housing segment. We acknowledge the progressive steps made by the govt. in the budget. However, a lot more needs to be done to address the challenges presently being faced by the sector. We expected some more measures such as relaxation of norms for REITs & ECB, & removal of MAT, which could have led to significant improvement in liquidity, must be considered later this year. Further, various measures have been announced to reduce the supply side constraints, however, we believe that the budget lacked any major announcement & incentitives to boost the sluggish housing demand, must be addressed going forward. Also, the focus to boost rental housing in India which was completely missed out in the budget must be considered in the coming months. These measures could be quite beneficial & would enable the Govt. in achieving the ‘Housing for All by 2022’ vision. ||www.constructionmirror.com||

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CONSTRUCTION MIR ROR

ndustry Focus: High Rise Buildings

High Rise Buildings: Pros, Cons, Detriments 32

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high-rise is a tall/ multi-storied building equipped with elevators, but various bodies have defined the term â&#x20AC;&#x2DC;high-rise differently. For instance, the International Conference on Fire Safety in High-Rise Buildings pessimistically defined a high-rise as a structure where height can seriously impact evacuation, while the Shorter Oxford English Dictionary merely refers to high-rises as buildings having many stories. From a real estate development perspective, it makes more sense to use the definition accepted by most building engineers, inspectors & architects; namely, a high-rise as a building that is at least 75 feet. One gets a better perception of what is involved in such buildings when one considers that the law makes it mandatory to have a lift for any building above 4 floors, two lifts & fire fighting system for any building above seven floors, & a earthquake-resistance structural design if a high-rise is situated in a seismically active region, or if the underlying soils have geo-technical risk factors such as high compressibility. In India, the definition of a high-rise again differs from city to city, because of the parameters dictated by each cityâ&#x20AC;&#x2122;s available infra. for firefighting, solid waste disposal, water supply & sewerage facilities. These are the agencies whose capabilities dictate how high a building can be in any particular city. It takes roughly around 18-36 months to build a high-rise, but this period can vary according to who the developerâ&#x20AC;&#x2122;s funding flow, who the architect, building contractor & structural consultant are, & on local development & environmental clearances laws. Interestingly, we have seen high-rise buildings come in Dubai within 6-10 months.

Pros & Cons of High-Rises

Among the most imp. advantages that high-rise buildings offer to consumers is the fact that they tend to have well-established occupier profiles - in other words, tailored neighbourhoods. The other appeal factors for high rises are that they offer all the conveniences of modern life, including swimming-pools, gymnasiums, grand entrance lobbies, high-speed elevators. Because property prices in a high-rise are higher than in smaller projects in a locality, developers tend to provide a lot of extra amenities & features. On the negative side, sociologists have found that high-rise tend to isolate their occupants from the outside ||www.constructionmirror.com||

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CONSTRUCTION MIR ROR

ndustry Focus: High Rise Buildings

world by creating their own closed environments. This is, in fact, the reason why squabbles with neighbours tend to escalate & intensify more quickly in a high-rise. Also, high-rises can pose serious challenges to both firefighters & occupants, especially in older buildings that do not have the benefits of modern building design, HVAC systems, fire sprinkler system & stairwell & properly managed elevator evacuation protocols. Developers of high-rise buildings often add a premium called as floor’rise premium’ to the sale price of units, which can be anything between Rs. 40-150 per square feet per floor. Buyers generally prefer upper floors in such a building, as these provide them with superior views & ventilation, more distance from street-level pollution (which also results in improved home hygiene) & better security. Some of the basic points to be remembered when buying a high rise are: Obtain the approved site plan, sanctioned drawings, copies of title document, occupancy & completion certificates, commencement certificate, sewerage clearance certificate, traffic clearance, NOC/Clearance from ULC/IT/Pollution Control/Fire Control & other authorities. Also verify that the building’s Structural Stability Certificate or Report of Structural Engineer & Architect Report for non-violation of FSI/Sanctioned Plan is available, & ensure that the paperwork & title documentation are in order. Verify whether the developer has delivered on the specifications, including quality of construction, adherence to safety norms, common amenities & availability of drinking water. Try to avoid the ground & the topmost floors. High-rise structures are also called vertical cities, having the potential to decongest urban sprawl. Indian cities are witnessing immense demographic expansion due to migration from surrounding villages, leading to urban sprawl, housing demand, rise in cost of land. Housing has developed into an economy generating industry. Given this demand, while high-rise residential structures have become a solution in the 34

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metropolitan cities, they remain eluded in tier II cities in India. Low-rise or mid-rise high-density dwelling types have developed in these cities. Tall buildings throughout the world are becoming popular day by day. With the advent of modern day construction technology & computers, the basic aim has been to construct safer buildings keeping in view the overall economics of the project. A high-rise building, apartment tower, office tower, apartment block, or block of flats, is a tall buildingor structure used as a residential & or office use. In some areas they may be referred to as “Multi Dwelling Unit” or “Vertical cities”. They have the potential to decongest the urban sprawl on the ground level, & increase the urban density, housing higher number of families in lesser space. Benefits include they act as landmarks; create unique skyline & efficient land use. Most building engineers, inspectors, architects & similar professions define a high-rise as a building that is at least 75 feet (23 m) tall. The International Building Code (IBC 2000) & the Building Construction & Safety Code, NFPA 5000TM-2002,Paragraph 3.3.28.7 of the Life Safety Code®, 2006 edition, define high-rise buildings as buildings 75 feet or greater in height measured from the lowest level of fire department vehicle access to the floor of the highest occupiable story. Considered to be one that extends higher than the maximum reach available to fire fighters. When this happens fire is fought by personnel inside the building rather than from outside. The term “high-rise building” means any building having an occupied floor(s) located more than 75 feet above the lowest level of Fire Department vehicle access. But from the structural point of view it can be defined as the a building that its height will be affected by lateral forces resulting from earthquakes & wind forces to extent that such forces will play a major role in the process of design. Based on the distribution of the components of the primary lateral load-resisting system over the building, the structural system of high-rise buildings can be broadly classified as: Interior Structures, Exterior Structures; In interior structural

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system, the major part of the lateral load-resisting system is located within the interior of the building. Whereas in exterior structural system, the lateral loads resisting system, is located along the building perimeter. Indian cities are witnessing immense demographic expansion due to migration from surrounding villages, leading to urban sprawl, housing demand, rise in cost ofland. Many citizens all over India migrate to the cities for better jobs & education. Industries, trade & commerce activities & number of educational centres in cities attract floating population from all their surrounding villages & districts. This has expanded the cities in all directions & all aspects of development. With an urban sprawl of kilometres, these face the problems of congestion, pollution, everyday commuting to work place, competition, deforestation etc. Development can be categorized in 4 categories considering different philosophy: High Rise with High Density; High Rise with Low Density; Low Rise with High Density; & Low Rise with Low Density. In India, a building greater than 75ft (23 m), generally 7-10 stories, is considered as high-rise. Also a building is considered to behigh-rise when it extends higher than the maximum reach available to fire fighters. According to the building code of India, a tall building is one with 4 floors or more or a high-rise building isone 15 meters or more in height. Most of the tall buildings in India are in the commercial capital Mumbai. >2500 high-rise buildings are already constructed. In addition more than thousand mid-rises exists already in the city. Mumbai is undergoing a massive construction boom, with thousands of tall buildings & about fifteen high-rise structures are under construction. Delhi & its surrounding regions are witnessing huge construction activities with 1500 already constructed high-rises. Listed below are the 20 cities in India with the most high-rise buildings as defined by emporis.com. If the city is a suburb, the core city is listed next to it in parenthesis. Also shown in parenthesis at the end of each row are the number of high-rise buildings in each city that ||www.constructionmirror.com||

are considered to be skyscrapers by emporis.com: Mumbai = 2,789 (321); Guragon (Delhi) = 1,785 (15); Greater Noida (Delhi) = 1,115 (5); Navi Mumbai (Mumbai) = 1,077 (14); Noida (Delhi) = 1,019 (34); Pune = 905 (2); Thane (Mumbai) = 654 (6); Kolkata = 597 (21); Ghaziabad (Delhi) = 525 (0); Bangalore = 490 (7); Surat = 401 (0); Faridabad (Delhi)= 276 (0); Hyderabad = 201 (9); Chennai = 181 (1); Sonipat (Delhi) = 100 (0); New Delhi (Delhi) = 77/1; Dharuhera (Delhi) = 62 (1); Mangalore = 61 (1); Dombiuli (Mumbai) = 35 (0); Lucknow = 35 (1).

Materials used in the construction of high-rise buildings in india

Concrete is an incredibly strong manmade mixture of aggregate (sand & gravel), cement & water that has been used in construction since Roman times. It is very hard & in its normal state can withstand high compression loads but it has one major weakness - it cannot resist tension loads. Many factors will affect how concrete will behave under fire conditions. These may include: Quantity & type of aggregate used in the mix; Thickness (and thus protection of reinforcement);Type of Cement used; Water content of the concrete; Load bearing; Fire Exposure time; Temperature; Application of water (fire fighting Jets); Cladding or covering; Age The failure of the concrete slab usually occurs in the form of spalling which is the progressive deterioration of the surface exposed to heat. This is because the aggregate element usually containsquartz, which will start to crack & disintegrate at 600oC. It is the type & quantity of aggregate in the concrete mix that will define its inherent fire behavior of concrete in fire resistance properties. Steel is extensively used in all forms of construction & is present in nearly inevery form of reinforced concrete. Steel is a metal alloy whose major component is iron. Carbon is added & this acts as a hardener. Because of its limitations in fire, if used in a structural context, steel is usually given additional fire protection, inthe form of a sacrificial cladding or a barrier. The steel work buried within reinforced concrete is to a large degree protected

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from fire by the concrete covering it, but prolonged exposure to high temperature can affect the integrity or the tensioning within concrete, leading to failure. High strength & the development of modern glass construction techniques means that many new high rise buildings use large quantities of glass as walling. This technique is seldom used in residential accommodation, but all windows are of glass held in by a variety of framing materials. Aluminum is a relatively soft & light metal with a melting point of 660oC. Its lightness means it has uses in the construction industry for non-structural items, such as door & window frames & external cladding. It is imp. to note that exposure to high temperatures will lead to early failure & if these frames form part of the fire resistance of the building (either compartmentation within lobby’s or as windows b/w floors) integrity can be affected. Aluminum as an external cladding can melt if exposed to fire & the falling molten aluminum possess additional hazards. In India, coal will continue to remain a major source of fuel for power generation. At present, about 60% power is produced by using coal as fuel, which results in the production of about 112 milliontons of flyash per annum. Considering the tremendous growth required in the power sector for the development of Indian economy, it is expected that ash generation will reach 225 million tons by 2017. Ash is good resource material for utilization in various areas such as manufacture of cement, cementconcrete, embankment construction, lowlying area filling etc. The major utilization areas of flyash are as under: Manufacture of Portland Pozzolana Cement & Performance improver in Ordinary Portland Cement (OPC). Part replacement of OPC in cementconcrete. High volume fly ash concrete. Roller Compacted Concrete used fordam& pavement construction. Use of ash in road embankment. Manufacture of ash bricks & other building products. Construction of road embankments, structural fills, low lying area development. As a soil amender in agriculture & wasteland development.

Why India keeps its cities so short

Despite an urban development explosion, the country hasn’t developed a taste for skyscrapers & tall building. Ascend to the top floor of the UB Tower downtown, & you can nearly see the city’s full expanse from all sides. The skyscraper, the centerpiece of the five-year-old luxury shopping mall UB City, is one of the city’s tallest structures. It stands 420 feet. More than 100 buildings rise higher in both New York & Hong Kong, though each is less populous. Chengdu, an equallysized metropolis in China, has some 25 buildings taller than all of Bangalore, & will probably keep soaring faster. Cities in China & southeast Asia rise high, but Indian ones did not. Most grew like Bangalore: outwards & compact. Their skylines are almost nonexistent. & their urban ills -- millions without housing, millions more facing exorbitant rents & crumbling infra. -- are often given the economic prescription to grow up. It leads to a natural question: Why aren’t Indian cities that tall? But there are others who pose a very different query: Why should they be? The strength of India has always been that there is mixed land use in every part of towns. That vision is a relief for anyone who has braved Bangalore rush hour. But he is less concerned with traffic than resources, particularly water. All Indian cities struggle delivering potable water, but Bangalore’s problems are notably acute. Up high & far from its natural source, the Kaveri River, the city must use scores of energy to pump in water, which now reaches barely half the city. Tall buildings, where water has to move up several stories, can have wider ecological footprints. The conundrum means that growth up & out each deplete something scarce & valuable. While the low-rise consumes more land, the high-rise consumes more energy. It is not very easy to be judgmental about either of them. It is seens that shorter, dense structures as more conducive to public life. The strength of India has always been that there is mixed land use in every part of town. Residents dwell alongside shop owners, street vendors & the legions of working poor in cities.

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ndustry Focus: High Rise Buildings

Those kind of people get mediated out of these vertical spaces. But the culprit for most Indian cities is the tight rein on building codes. The floor-area-ratio in Bangalore, up to 3.25 but around 1.25 in many areas, requires builders to pay for pricey land plots if they want to build up. Mumbai lowered & capped its FAR at 1.33 in 1991 in a failed effort to keep migrants out by limiting new housing construction. Now Mumbai is India’s tallest. Yet it is dwarfed by other urban islands, like Manhattan & Singapore. Its property market is a messy web, but FAR is usually among the first reasons cited for the skyscraper dearth. A 2003 study isolated the impact of Bangalore’s low FAR & found that it reduced household consumption by up to six percent, forcing residents to travel greater lengths for work by flattening the city. People did not live in self-contained regions. If the city keeps its low-rise character, these “work-home relationships will have to be addressed,” admits Vishwanath. Yet he sees no problem with sprawl itself. Agriculture land, eaten up by expanding cities, lies fallow for nine months. After years of following this course, some cities are now looking up. Recently, the national urban development minister urged New Delhi to permit more skyscrapers, & Gurgaon, a booming city in its periphery, floated an increased FAR. Bangalore, too, is seeing a slew of lofty, vertical projects. But the city is also pursuing the Correa tactic. Earlier this month, the state approved a plan to spend $390 million to set up eight small, contained towns surrounding Bangalore, an effort to de-congest the bursting city. A prior effort was derailed by political protest. That reflects India’s

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troubles growing higher without stable governance. Many developers are weary of building costlier vertical units when they must deliver utilities themselves. “A city with taller structures & high core-area density needs to be planned for services & infra.,” says Varanashi. He think simply lifting restrictions & letting the market take shape will go poorly. “If greater density is imposed by FAR allocation, the quality of life is bound to suffer. Varanashi also points to another barrier in a nation where 70% of the population is still in villages. Born in one himself, he confesses his objection to height. “Aesthetically,” tall structures do not appeal much.”

Detriments of high-rise buildings

Internationally, a building that reaches or exceeds the height of 150 metres is considered a skyscraper. Until recently, Mumbai was the only Indian city with high-rise buildings. The financial capital continues to see. Internationally, a building that reaches or exceeds the height of 150 metres is considered a skyscraper. Until recently, Mumbai was the only Indian city with high-rise buildings. The financial capital continues to see the highest demand for skyscrapers, as the only option to grow there is vertically. It now seems that in the coming decade, Max City will receive an even more cohesive skyline, with a host of projects in the race to touch the sky being constructed. The demand for high-rise buildings is certainly growing, & other cities are catching up. Mumbai continues to have the maximum number of tall buildings approved or under construction. Development of India One - the tallest in the country - has already begun in Max City. It spans 126 floors & stretches

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up to a height of 720 metres. Apart from this, Mumbai has more than 30 such super-tall buildings ranging between the heights of 150 metres to 450 metres either at the approval stage or already under construction. New Delhi, the capital of India, has around a dozen of such buildings coming up. They range between heights of 150-300 metres. Kolkata too is catching up with 9 such residential buildings extending to the height of 245 metres either approved or under construction. Ahmedabad too has about 13 tall buildings which are under construction & are ranging between 200 metres to 410 metres. Hyderabad & Bangalore too are witnessing some development in construction of tall buildings for residential-commercial purpose with 2 or 3 approved projects. All in all, this amounts to around 60 skyscrapers. Developers see such edifices as a good way to attract potential buyers - high-rise buildings are a good gambit to differentiate their offerings from the rest of the pack. However, this coin has two sides – high-rise development has its own share of demerits, too: Effect on Urban Wind: Rise in the elevation of a building increases the distance of the wind shadow & minimizes the air flow at the street level behind the building. Near high-rise buildings, the local wind speed is high even in summer. In addition, high-rise buildings tend to create a turbulent flow of the gradient wind as a result of increasing the roughness of the boundary layer surface. Increased Air Pollution: In summers, local wind speeds near skyscrapers are very high & troublesome. The ventilation conditions in the urban spaces & major ||www.constructionmirror.com||

streets with high vehicular traffic have significant impact on the concentration of air pollutants at the street level. The high velocity & turbulent wind at the street level results in the mixing of the highly polluted low-level air with cleaner air flowing above the urban canopy. Effect on Urban Radiation: High-rise buildings absorb direct & reflected solar radiation of surrounding low-rise buildings & convert it into heat via convection of long wave radiation. However, when buildings are of different heights, the walls of the higher buildings absorb part of the reflected & emitted radiation & block a portion of the sky, resulting in reduced solar exposure & long-wave emission from the roofs of the lower buildings. Increased Urban Temperature: Size & density of the built-up areas affect urban areas temperatures. In the congested centres of large cities, temperature levels are generally higher than in the suburbs. The largest elevations of urban temperature occur during clear & still-air nights, also called ‘Urban Heat Island’. Excessive opacity of high-rise buildings in city centres results in concentrated heat generation by high-density land use (traffic, lighting, heat exhaust) & contributes to the creation of urban heat islands. Effect on Night-Time Cooling: Nocturnal radiation is a major climatic factor that reduces atmospheric heat in urban areas located in hot, dry regions. Nocturnal radiation decreases when the density & the height of built-up urban masses increase. High-rise buildings store solar energy during the day time & release it slowly into low-speed local wind, especially at night. The vertical distance between cool winds above buildings roofs & the ground surface is long, & this results in decreased radiant cooling during the nights. Low-rise buildings that match trees heights of 12-15 meters, on the other hand, penetrate night-time ventilated cooling at the ground level & also store cool radiation through built-up urban areas. Other Factors: Tall buildings are colder in winter & hotter in summer than regular buildings, & therefore require ||www.constructionmirror.com||

more heating & more cooling. This is particularly true of modern glass towers. Thus, a lot of energy is required to keep these high rises functioning. Exterior cleaning & maintenance of a high-rise building can be very costly & dangerous. With global warming (which causes higher wind speeds) on the rise, insurance companies often refuse coverage to maintenance companies in charge of high-rise buildings at certain times of the year. High-rise buildings take longer to build, & due to rapid & heavy construction activity within the city, there is a heavy load on civic infra.. In-high rise buildings, the average construction cost per square foot is 20-25% higher if the building has more than 12 floors. Major modifications and/or renovations in a skyscraper are significantly more cost-intensive. If a new building has to be built on the same piece of land, the number of claimants is vastly higher. When it comes to our largest cities, there is not much one can do about these factors – & indeed, they are accepted as a fact of life in a city like Mumbai, which must grow vertically if it is to grow at all. Unfortunately, the areas of our cities which are in the biggest need of high rise buildings are also the ones which offer the lowest scope for remedial infra. measures that could reduce the impact of skyscraper development.

Shoosing the right floor in a high-rise

One of the world’s tallest residential tower ‘World One’. So, if you are a home buyer & want to know which floor to choose & buy in a high-rise residential apartment project or the best floor to live, read on. High or low, each floor has its own advantages & disadvantages. Before you make a decision, weigh all the factors involved & decide what suits your lifestyle better. Obviously, higher floors offer a better view, especially if the tower is located close to a scenic place. If this is imp. for you, go for higher floors. Property surveys have proved that lower floors command better rental returns, as Indians generally have an affinity for staying closer to the ground. If you are buying a property for an investment purpose, the ground floor is the best floor in high rise building for you. People, especially in Mumbai

& Bengaluru, prefer upper floors, while buyers in the Delhi-National Capital Region (NCR) & Chennai prefer ground floors. Climatic differences could be cited as a reason the difference in choice. For more information on property in Mumbai & Bengaluru, click here & here. In congested areas, however, living on the lower floors might not offer much privacy. If you love solitude & wish to avoid any kind of unwanted intrusion, a higher floor might be better for you. Many home buyers prefer higher floors to minimise street noise or to avoid the noise coming from other occupants walking through the common passage. However, if the ground floor flat is not located in the common hallway & is also far from the elevators, staircase or clubhouse, then the noise would not be an issue for you at all. Power consumption increases as you go higher. It is so because you need to run your air-conditioners (ACs) for a longer time during summers. Also, drawing water using motor pumps could be another heavy power consumption task. Ground floors pose a comparatively increased crime risk, as it is easier for anti-social elements to break into lower or sub-level apartments. Overall, it also depends on the structure of your high-rise & the security measures adopted by the management of your residential society. For most of us, waiting for the elevator can be time-consuming. Choose to live on the ground floor or sub-floors, so you can comfortably take the stairs. With children & elderly parents around, it is always good if your home is on a lower floor. Apart from the safety point, it also adds to the convenience factor. In addition to this, if you or someone in your family suffers from mobility impairment or has the fear of height, you should prefer living closer to the ground. Apartments on the ground floor have comparatively limited light & ventilation when compared to the upper ones. Not only this, upper floors don’t face mosquito intrusion as well. It is observed that generally the top floor & the ground floor suffer from water seepage & drainage issues. It also depends upon the drainage & sanitary mechanism of the residential complex.

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CONSTRUCTION MIR ROR

udget Review

Vipin Sondhi, MD & CEO, JCB India Ltd

The Union Budget presented today is a balanced Budget with a focus on the Agri Sector, Rural Development, Healthcare and a continued thrust on Infrastructure creation. All of these will provide significant impetus to the revival of growth and creation of employment. The Budget also addresses the opportunities to modernise and create new

infrastructure in Affordable Housing, Railways, Airports which continues the effort of the last few years. These will present favourable opportunities for growth to the Indian Construction Equipment Industry. Incentivisation to the MSME sector, which forms the backbone of industrialisation of a Nation, as also job creation is another welcome step

The budget has introduced some interesting schemes towards agriculture and rural development. They continue to support investments in infrastructure, which will support our portable compressor range. Many of our suppliers will benefit from the MSME tax reduction and perhaps

the tax reduction will encourage capital expenditure, which could in turn support our industrial compressor range. Overall, while there are no explicit manufacturing boosters, we hope that the momentum from the last quarter will sustain through 2018.

Dr. Jairam Varadaraj, MD, ELGi Equipments

AK Bal, Director, Viraj Projects India Pvt Ltd

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“We have seen our government taking various initiatives for the infrastructure growth in our country, and we saw a positive move in the same direction when our Finance Minister announced that India will invest an amount of Rs 5.97 trillion in creating and upgrading infrastructure in the next financial year. The government’s initiative of monetizing select CPSE (central public sector enterprises) assets using Infrastructure Investment Funds (InvITs) from next year is also a welcome move. Selection of 99

smart cities with an outlay of Rs 2.04 lakh is also something that will help our country becoming better at smart and fine construction. Government’s announcement of developing Bharatmala project to 35,000 KM under phase 1 with an outlay of Rs 5.35 lakh is a major boost to construction industry of the country. As a construction company, this is a great opportunity for us to play a critical role in the development of the country and help in increasing the GDP of our country.”

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Sachin Bhandari, CEO, VTP Realty

Dharmesh Arora - CEO, Schaeffler India

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With real estate being a major focus owing to the infrastructure development and housing for all initiatives by the Government, the Union Budget 2018 announced today did have some interesting inclusions. Infact, prior to the Union Budget being broadcasted, the Government had declared reduction of GST to 8% for all houses qualifying under credit link subsidy scheme under PMAY. This itself shows the Government’s keenness and commitment to make Housing for All a reality by 2022. Funds have also been allocated by the government for building 37 lakh houses in urban areas. These project the Government’s sanguine outlook towards the realty sector which is very encouraging for us as a business and also as consumers.

Out of 100 smart cities, 99 have been identified and Government announced budgets for development of various projects in these cities. The Finance Minister further announced that the Centre will create a dedicated affordable housing fund in collaboration with the National Housing Bank. For companies like ours, which have MIG and Affordable House offerings, this is a great opportunity to play a role in the development of India and contribute our bit in making our country one of the largest economies in the world. Government’s initiative to focus on both rural and urban housing will further help in accelerating the growth of real estate in our country.

Finance minister ArunJaitley has presented a balanced budget. He has stayed on the growth momentum and allowed small widening of fiscal deficit in the short term to focus on continued growth agenda. There is a huge focus on infrastructure development towards road construction railways and air travel, that bodes well for Union that bodes well for spurring economic activity in many sectors such as construction equipments, commercial vehicles in addition to thecore sectors. The minimum support prices for the agriculture segment and higher budgetary allocation for the rural, agriculture and allied sectors should generate discretionary spending that is likely to spur consumption led demand and push rural economic

growth. Relaxation of Corporate Tax on smaller industries show positive intent in line with previous announcements of reduction of corporate taxes. This also means surplus cash available for capital expenditures and growth in those sectors. All these initiatives together are expected to create a positive effect with respect to demand, generate employment and boost investments in the private sector. While the budget has refrained from providing any direction to the country’s automotive sector, we are hopeful that the impending EV policy will provide clarity. On the whole, we expect Budget 2018 to create a positive investment climate.

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CONSTRUCTION MIR ROR

pecial Theme: PVC Pipe

Current Scenario of PVC Industry in India: Agri and Infra to Drive Demand 40

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Structure of the Indian Plastic Industry High

Low

Dominated by~15 large industrial groups

Dominated by Equipment ~200 players Manufacturers

Plastics Processors Llow of equipment Flow of virgin polymers

Recycling Players

~4,000 unorganized units ~3,500 organized units

End-User Industries

Concentration

Polymer Manufacturers

Fragmented with ~30,000 units mostly operated by small players

Flow of processed plastics Flow of recycled plastics

Source: CRISIL, Plastindia Foundation, Kanvic, TSMG Analysis

Plastic Industry: Overview

The entire chain in the Plastic industry can be classified into: Upstream sector: Manufacturing of polymers & Downstream sector: Conversion of polymers into plastic articles. Upstream polymer manufacturers have commissioned globally

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competitive size plants with imported state-of-art technology from the world leaders. Upstream petrochemical industries have also witnessed consolidation to remain globally competitive. Downstream plastic processing industry is highly fragmented & consists of micro, small & medium units. There are 30,000+ registered plastic processing units of which about 75% are in the small-scale sector. Small-scale sector, however, accounts for only about 25% of polymer consumption. The industry also consumes recycled plastic, which constitutes about 30% of total consumption. There is a good scope for innovative products which will further contribute to growth of the sector in years to come. Packaging industry has witnessed a complete replacement of old age products with the new ones. With India’s population similar to China’s, but polymer demand at only one-fifth of China’s, the Indian subcontinent’s plastics industry has a good potential for growth. Improving standards of living have led to an increase in consumption of a wide range of consumer goods from packaged foods to automobiles. Investments in infra. & agriculture are also further fueling the demand of plastics & related products in India. While the outlook for plastics

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CONSTRUCTION MIR ROR

pecial Theme: PVC Pipe

processing in the Indian subcontinent is positive, the industry still faces many challenges in terms of inadequate infra. & environmental myths. The plastics processing industry has grown at a CAGR of 10% in volume terms from 8.3 MMTPA in FY10 to 13.4 MMTPA in FY15 & is expected to grow at a CAGR of approximately 10.5% from FY15 to FY20 to reach 22 MMTPA (Refer Figure 3). In value terms, the plastic processing industry has grown at a CAGR of 11% from Rs. 35,000 Cr. in FY05 to Rs. 100,000 Cr. in FY15. Plastics are gradually becoming material of choice for extensive usage due to their unique & diverse set of properties. With govt. policies & initiatives stressing on manufacturing in the country, competitive rivalry in the sector is bound to grow considerably. However, due to low penetration levels of plastic products in Indian market, especially rural segment, the per capita consumption of plastics is low. With current per capita consumption of plastics in the U.S. at 109 kg & in China at 38 kg, India at 11 kg has a long way to go. Low consumption level indicates an enormous growth potential for plastics sector.

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Challenges faced by Plastic processing industry

Indian plastics processing industry is highly fragmented & small & micro players constitute majority of the units. Indian Petrochemical Industry is facing intense competition from the Middle East countries where price of feedstock ranges between 1/5th-1/10th prices prevailing in intâ&#x20AC;&#x2122;l markets. Indiaâ&#x20AC;&#x2122;s plastics market depends on labor intensive equipment which has adversely impacted the productivity. Unreliable power & high energy costs in India as compared with other countries are also constraints which hamper capacity utilization. While the usage & benefits of plastics are manifold, it invariably gets branded as a polluting material. Plastics, being a polymer derived from crude, are made up of long chains of carbon. It takes years for them to decompose completely. Improper disposal of plastics leads to ground water pollution, disturbance in soil microbial activity along with releasing of carcinogenic chemicals in the atmosphere leading to health issues among people. Other life forms also get affected due to this imbalance in value chain, with stray cattle feeding on thrown-away plastics. These adverse impacts are alarming the society & industry to ensure proper disposal of plastics. Both govt. as well as industry needs to come forward to cater to this issue & sensitize the general mass to follow the ritual of recycling waste plastic products. If plastics can be collected & disposed of or recycled as per laid down guidelines/rules then the issue of plastic waste can be suitably addressed. There is wide scope for industries based on re-cycling of plastics waste. This will not only address the issue of environmental degradation but will also generate capital. The Indian Plastic processing industry has seen a shift from low output/low technology machines to high output, high technology machines. There has been some major technological advancement of global standards leading to achievements. Focus to develop a state-of-the-art R&D is dying down with more focus on increasing the capacity utilization. Domestic machinery is manufactured as per the current technology to improve productivity & energy efficiency, in order to enable the processors to compete globally. Key machineries are imported from Europe, the U.S. & Japan which invite a 7.5% customs duty resulting in huge losses. Indiaâ&#x20AC;&#x2122;s technical needs are acute in areas like high production & automatic blow moulding machines, multilayer blow moulding, stretch/blow moulding machines, specific projects involving high capital expenditure like PVC calendaring; multilayer film plants for barrier films, multilayer cast lines, BOPP & non-woven depend excl. on imported tech/ machinery. Cost of plastic processing is largely correlated to crude oil price which is a major determining factor for polymer raw materials. It is worthy of note that crude oil prices have experienced a heightened degree of volatility in the recent past, wherein prices have plummeted to around USD 50/bbl in 2016 from USD 100/ bbl in 2014. Further, with a large number of raw materials being imported into India, currency volatility also poses as a sig. challenge to plastic processors. PVC pipes & fittings market in India has grown at a CAGR ||www.constructionmirror.com||

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CONSTRUCTION MIR ROR

pecial Theme: PVC Pipe

of 13.4% during the period FY’2010-15. In the past few years, govt. of India has initiated many new projects & investments in the irrigation sector. The focus of the govt. is on rural water management, which will be fulfilled only when there will be proper infra. for the transportation of water to the end-user. This factor will remain as one of the major drivers for the growth of PVC pipe industry in the country along with the expansion of housing sector & increasing demand for oil & gas transportation. The market is primarily segmented into rigid PVC, flexible PVC & chlorinated PVC pipes & fittings. CPVC pipes & fittings is the fastest growing segment of the PVC pipes & fittings industry in India. Agriculture account for the largest share in terms of application of PVC pipes in India in FY’15. Agriculture forms a major portion of the PVC pipes & fittings market revenue in India followed by construction sector with increased spending witnessed in real estate & infra. development in the country. Govt. increased its investment in irrigation sector to Rs. 3,300 bn during FY’2011-16 from Rs. 2,000 bn in the period FY’2007-11 as it makes efforts to narrow the gaps in irrigation infra. to increase the agricultural output. Some of the major players in the industry include companies such as Finolex Industries Ltd., Jain Irrigation Systems 44

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Ltd., Supreme Industries, Prince Pipes & Fittings Private Ltd., Astral Poly Technik Ltd. & others. The Indian plastic pipe market is forecast to grow at a CAGR of 10.4% from 2016-21. The major growth drivers for this market are the growth of govt. infrastructural spending, increasing residential & commercial construction, industrial production, irrigation sector, & replacement of aging pipelines. Emerging trends, which have a direct impact on the dynamics of the Indian plastic pipe industry, are the usage of anti-microbial plastic pipes to improve hygiene, consumption of CPVC (chlorinated polyvinyl chloride) piping system in various applications of plastic pipes, & increasing consumption of multilayer plastic pipe in gas distribution in the Indian plastic pipe market. Future growth of India PVC pipes & fittings Market is expected to be led by the rising construction of much required residential units & inclining demand of PVC pipes & fittings in agricultural sector to bring in more area under cultivation. This will also be bolstered by the govt. projects for clean environment & housing for all which includes a large focus on the sanitation facilities for the people. The Indian PVC pipes & fittings industry, which comprises of segments such as RPVC, PVC & CPVC pipes & fittings has

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grown sig.ly over the last few years due to the increase in the demand from irrigation sector on account of the burgeoning population & uncertain weather conditions in the country. The PVC pipes & fittings industry in India is highly fragmented. The market revenues have grown at a CAGR of 13.4% from FY’2010-15. There is a stiff competition in the market with a large number of organized & unorganized players engaged in the manufacturing & distribution of PVC pipes & fittings in the country. Jain Irrigation Ltd. dominated the market in terms of production capacity in FY’15. According to the research report, the India PVC pipes & fittings market will grow at a double digit CAGR over the period FY’2015-20 & is projected to reach Rs. 327 bn by FY’2020. The launch of new products, improved penetration of the companies with expanding distribution network & sig. role played by the govt. in the development of irrigation infra. & real estate sector in the country will bolster the growth in the industry. Besides, a deficient & uneven rainfall in the country is expected to increase the demand for irrigation systems in the coming years, which will boost the demand for PVC pipes, tubes & hoses. PVC pipes will gradually replace conventional piping systems in the market due to their lower cost & higher durability. CPVC pipes ||www.constructionmirror.com||

are expected to register fastest growth in terms of the production capacity in the next 5 years from FY’2015-20. Rising acceptance of CPVC pipes over galvanized or PVC pipes will lead to the growth in the future. The organized segment of the market is predicted to grow at a faster rate in the coming years with shifting preferences towards branded & quality products being witnessed in the domestic market.

Current Scenario of PVC Industry In India

Sometimes known as industrial plastic, PVC stands for poly vinyl chloride & an important material in the manufacturing of various products across different sectors. There is no doubt that plastics is one of the crucial manufacturing elements in today’s versatile global economy & plays a vital role in driving any country’s economy. In fact, it has been one of the largest & fastest-growing industry sectors of the economy. In today’s times, plastics emerged out as one of the most universally-used & widely used materials all across the world. With the increasing use of plastics in automobiles, consumer packaging & the result of increased infra. spending in India, the plastics industry is set to continue double-digit growth beyond FY 2016. The demand for plastics is also supposed to almost double to about 20 MMT by 2021 from the existing level of about 10 MMT. It has been found that packaging will be the biggest sector of plastics consumption at 10 MMT by 2021 moving ahead from 6 MMT in 2013. Increasing income levels & growing middle class will move up the demand for plastics in different end use segments such as automobiles, white goods, healthcare etc. With the launch of various PVC products in 1970s, PVC consumption in country began doubling almost every five years. During 1985 - 1995, adoption of Green Revolution by the country lead to the surged usage of PVC pipes in the agriculture sector due to their exemplary performance. The consumption of PVC increased to 2 MMT by 2012 due to great infra. development in the country between 2004 & 2012 & because of contribution of PVC to end use applications including pipes, conduits, wires & cables, doors, partitions & windows. It is relatively easy to find a PVC compounds manufacturer in India today which was very rare earlier. As it is an element which is used almost in every sector today including agriculture, automobiles, building & construction, electrical & electronics, food & pharmaceuticals, sports & leisure & more. Pipes & fittings industry comprises of 70% share of PVC consumption in the country followed by calendared products at 9%, wire & cables at 6%, & films at 5%. Recent announcements by the GoI aim to take this industry to new success heights. The industry is all set to experienced great boom in the next few years.

Trends and Opportunities

Infra. sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development & enjoys intense focus from Govt. for initiating policies that would ensure time-bound creation of world class infra. in the country. Plastic industry plays a sig. role in this endeavor. Indian pipes business has been growing rapidly in the past decade, largely due to increasing demand for ||www.constructionmirror.com||

pipes in the irrigation sector & construction industry. Among the several varieties of pipes available in the market, the demand for plastic pipes such as PVC, CPVC in particular, is on a rise largely due to - Gaining popularity of plastic pipes over traditional/ galvanised iron (GI) pipes; Huge replacement demand; Flexibility in terms of transportation, less corrosive & long lasting life (25 years v/s 8-10 years of GI pipes); Easy installation & competitive price in nature (20-25% cheaper over GI pipes). Other types of pipes, like steel pipes & ductile iron pipes also have major demand. Across the country, infra development, urbanization, govt.’s focus on real estate, irrigation is expected to drive the demand. Construction & agricultural growth have been identified as major factors facilitating the growth of the pipes industry in the country. Currently, in India, approx. 73% of the PVC is consumed by the Pipes & Fittings industries with the other sectors comprising only 27%. Globally, Pipes & Fittings account for only 43% of the PVC consumption, showing that PVC applications in India other than Pipes & Fittings are still in the early stages & are primed for growth. This, along with the relatively low per capita PVC consumption in India, shows that future prospects for the Indian PVC processing industry are bright. Although, CPVC pipes & fittings contributed just ~10% to overall production capacity in FY’15, it is fastest growing segment of PVC pipes & fittings industry in India. In the past few years, the govt. of India has initiated many new projects & investments in the irrigation sector. The govt.’s focus is on rural water management, which will be fulfilled only with proper infra. for the transportation of water to the end-user. This factor will remain as one of the major drivers for the growth of PVC pipe industry in the country along with the expansion of housing sector & increasing replacement demand for CPVC.

The Indian agriculture piping industry is highly fragmented due to presence of large chunk of players, giving tough competition both on product offerings & pricing terms. Also, the main reason for low yield or margins in this segment is due to the less proportion of fittings in usage, compared to the plumbing segment. There are few organised players operating with sig. presence through wide distribution network & a strong quality product portfolio. Plastics play a major role in managing water resources. The various applications of plastics in water management include plastic rain water collection tanks, pipes, profiles; waste water applications (waste water treatment plants) & plastic pipes for water transportation (PVC, HDPE, LLDPE, PP, FRP). || FEBRUARY 2018 ||

CONSTRUCTION MIR ROR

pecial Theme: PVC Pipe

Plastic products in water management are being used as compared to various alternate competitive materials like metal, cement, due to light & weight durability, rust free, smoother surface. Ministry of Water Resources is responsible for laying down policy guidelines for water conservation. PVC pipes & fittings with BIS certification are being used in various water/sewerage transportation applications in various private/govt. supplies. In recent years, the CPVC market has seen some traction of shifting preference towards branded premium products (in spite of price differentiation of 30-40%). Strong branding & regular product campaigning through various forums (educating stakeholders about the products along with small prizes, gifts to encourage them) & wide distribution network has helped a few players to pocket a large share & create a strong reputation in the customers eyes. India’s growing economy of the country has encouraged the spending capacity of the people, which in turn has boosted the sales of branded furniture items in the market. The growing phase of infra. & real estate markets has also augmented the demand for furniture products in the country. In addition, the entry of international brands & increasing brand awareness amongst Indian inhabitants has led to the emergence of furniture retailing in India. The plastic moulded furniture industry has been growing rapidly in the Indian market & from a stage of infancy the field has risen to almost 70 million in volume, consuming almost 170 kT of polypropylene material. The popularity of plastic furniture has grown since it offers fe a t u re s unavailable in conventional wooden & m e t a l furniture, such as easy

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maintenance, light weight, durability & various attractive features (such as shapes, designs). Plastic furniture is essentially based on composition of polypropylene (PP) which contains polymers to provide rigidity & copolymer to lend impact. There exist around 30 producers of PP chairs in India though 30% of the top producers generate almost 75% of the market share. India´s piping market is worth around Rs 15,000 Cr. & is growing at 20% annually. ´Demand for fittings is growing at 12 to 15% per annum. Real estate development largely drives the plumbing fittings market. Now Swachh Bharat Abhiyan, the Govt.´s ambitious project to extend sanitation facilities to every household by 2019 is expected to boost demand for certain plumbing products. As per the 2011 census, only 46% of 25 Cr. households in India have a toilet. The basic sanitation system schemes of the Govt. of India may spur demand for low-end fittings in coming years. The construction of toilets in rural areas will spur demand for cost-effective plumbing & drainage products, underground drainage systems & perhaps even readymade toilets & readymade septic tanks. Creating toilets in every school & the smart cities project will also spur demand for quality plumbing & piping products. Today, real estate developers have plentiful sanitaryware, piping & fittings choices. Metal piping options include copper & iron & steel variants. In plastic, the selection includes unplasticised polyvinyl chloride (UPVC) pipes, chlorinated polyvinyl chloride (CPVC) pipes, polypropylene random copolymer (PPR) pipes & high-density polyethylene (HDPE) pipes. Cost is the leading determinant for choosing a certain internal piping system for a project. Other factors are ease of availability, ease of installation & compliance with local & international codes & standards. In some countries, systems are also evaluated for their impact on health. By those measures, CPVC systems come out winners. ´They usually satisfy all the criteria better than other options like copper, PPR, PEX & other composite (sandwiched) pipes. It helps that awareness has grown

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tremendously about CPVC systems. Developers prefer PVC products (UPVC, CPVC & PPR) for internal water supply pipes & fittings. CPVC pipes are generally preferred for green buildings & buildings that use solar water heating systems. Developers usually prefer CPVC or copper plumbing for high-end projects & PPR products for medium end. Developers demand PPR, CPVC or UPVC piping for internal plumbing as these are inert to impurities in water, corrosion & leakage free with a long service life. For external water supply plumbing like down-takes & for connections with municipal mains, UPVC pipes (with solvent welded joints for smaller apartment complexes) is recommended. HDPE is recommended for bigger townships, though developers & municipal corporations tend to go in for ductile iron, malleable steel or cast iron piping. DI & HDPE pipes are preferred for external water supply. Developers are putting much more emphasis on layouts & product designs. They are also keen to earn water efficiency points in the LEED green building rating system. Today, demand for sanitaryware is veering towards products that score high on aesthetics as well as help save energy, water & space. Developers largely choose products for practical reasons like long service life & high performance. We use CPVC pipes in walls for washing water & drinking water as they are extra chlorinated & therefore ideal for water supply. CPVC are high-functioning pipes & superior to PVC & HDPE. They can carry both hot & cold water but have low tolerance for sub-zero temperatures. We use galvanised steel pipes as extensions to CPVC where higher level of support is required for load-bearing fittings & fitments. We use copper pipes because they are reliable, resistant to corrosion & tolerant of heat. An all-copper plumbing system costs a little more than other, less-reliable materials. But since copper piping is more durable, easier to handle & faster to install as forming & joining take less time, sometimes the installed cost of a copper plumbing system can be less than so-called cheaper materials. Developers ||www.constructionmirror.com||

of townships & large real-estate projects are aware of safety aspects of piping & this has created space for new classes of piping products. Prince is a pioneer in manufacturing lead-free Easyfit pipes & fittings that ensure that consumers drink safe water. Municipal norms also drive developers´ choices in places where they lay down detailed guidelines. In Mumbai, for instance, the municipal corporation (Municipal Corporation of Greater Mumbai) approval for piping systems has recently been abolished. Instead, the municipality has deemed as per its Water Bylaws that any ISI-approved product be considered as approved. IS standards like IS:15778, IS:16088 & IS:15801 exist for CPVC & PPR. IS standards haven´t been set for materials such as composite (sandwiched) & PEX pipes. So for these, we turn to international standards (like ASTM, NSF, ANSI, UPC, DIN, EN, etc.). Municipalities in Gurgaon & Sohna, Haryana, where Homestead Infra. is developing real estate, clearly state the plumbing fittings to be used is in their bylaws. They describe the pipes, fittings, such as taps, cocks, valves, meters, cisterns, baths, water closets, lavatory basins, etc. They specify that plumbing work has to be carried out by a licensed plumbing contractor & that all plumbing fittings should be IS-certified. Also, nowadays municipal departments are laying emphasis on zero discharge. Waste-water must be routed to a sewage treatment plant for treatment & recycled back for flushing, cooling towers & irrigation purposes. However, any overflow from the plant may be drained to the nearest municipal manhole. Municipalities in Noida & Gurgaon where we have our upcoming projects have laid down plumbing norms for the size & method of installing communicating pipes, the point of discharge of pipes, pipe support, IS certifications, etc. In cities where Sobha Ltd operates, such as Bengaluru, Thrissur, Coimbatore, Chennai & Pune, the municipalities do not lay down plumbing norms. They just insist on leak-proof plumbing that doesn´t waste water nor contaminates ||www.constructionmirror.com||

water owing to faulty installation. Information about plumbing options is best had from the National Building Codes, Bureau of Indian Standards & the Uniform Plumbing Code of India. Indeed, new systems promising better water flows & a cleaner environment are welcome Plumbing plays a role in getting green building certification. Buildings can score up to 19 points under the IGBC LEED Water Conservation subhead for certified buildings. This mandates the use of leak-proof piping systems & water-saving fittings. To help buildings achieve certain green ratings, sanitaryware & faucets must conform to established norms. India´s piping market : Rs.15,000 Cr.. Growth rate: 20% annually. Only 46% of 25 Cr. households in India have a toilet: 2011 census. Real-estate development largely drives the plumbing fittings market. As there are no Indian standards for composite materials & PEX pipes, international standards are followed.

Conclusion

Potable water supply, wastewater treatment, agriculture & chemical sectors are expected to propel the demand for plastic pipes in India by manifold, thus offering new opportunities for manufacturers, according to a new report of Lucintel. Indian plastic pipe market is forecast to grow at a CAGR of 10.4% from 2016 to 2021. The major growth drivers for this market are the growth of govt. infra spending, increasing residential & commercial construction, industrial production, irrigation sector, & replacement of aging pipelines. Polyvinyl chloride (PVC), polyethylene (PE) & polypropylene (PP) are the major raw materials used to manufacture pipe. As per the report, the PVC plastic pipes market is likely to experience the highest growth during 2016-21, supported by growing demand in the potable water, wastewater supply & agriculture sector. Lucintel predicts that the agriculture & wastewater applications are expected to show above average growth during this period. Within Indian plastic pipe market, agri sector is expected to remain the largest application. Growth of residential & commercial

construction & infra. development especially in the agri. sector in the country are expected to spur growth for this segment over the coming years. Emerging trends, which have a direct impact on the dynamics of the market, are the usage of anti-microbial plastic pipes to improve hygiene, consumption of CPVC (chlorinated polyvinyl chloride) piping system in various applications of plastic pipes, & increasing consumption of multilayer plastic pipe in gas distribution in the Indian plastic pipe market. Plastics industry is assured to grow at a good rate with the major applications being in FMCG & consumer goods. There are several factors like low per-capita consumption, manufacturing focus, end use industry growth, availability of feedstock, increasing urbanization, changing lifestyle & demographic dividend, promoting growth of plastic across India. Plastic processing industry has changed our lives in many aspects. It has the potential to continue to change the way we grow our crops, the way we build our roads, & the way we live everyday life. It has sig. impact on our economy, generation of wealth & in job creation. Plastics processing industry will need to invest in modern equipment to reduce costs & improve performance & improve installed capacities to achieve economies of scale so that the Indian subcontinent can reach its full potential. With Govt.’s current campaign on ‘Make in India’ which has a special focus on the chemical industry & aims to turn the country into a global manufacturing hub, a tremendous growth in the plastic processing sector is expected especially in downstream industries. Govt. should not hesitate to provide better infra. & favorable policies. With a step already being take in that direction, plastics are bound to find tremendous use in the infra. space. With adequate support from Govt. & growth in end use demand, our study indicates that the market for plastic processing industry in India is expected to grow at a CAGR of 10.5% from FY15 to reach 22 MMTPA by FY20.

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CONSTRUCTION MIR ROR

pecial Feature: RMC Plants

Use of Ground Granulated Blast Furnace Slag in Concrete at RMC Plants 48

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Cement Industry: Forging Ahead Despite Odds

Indian cement industry is growing at a brisk pace of 9-10%, in spite of the fact that it is saddled with excess capacity, & buffeted by slowing economy. However, the prospects of the industry remains bright as the high level of housing deficit in India & the infra. sector growth will drive the industry’s growth going forward. Cement industry in India is the 2nd largest market after China with a total capacity of over 300 MT as of financial year ended 2011-12. The industry has gone through a consolidation phase due to which the top three players alone control over a third of the total capacity. However, due to large number of players, the balance capacity remains quite fragmented. During the last decade, the Indian cement industry has registered a decent growth of about 9-10%. However, the per capita consumption of cement still remains quite low when compared with the world average. When compared with China’s per capita consumption of 1,380 kg in 2010, India’s per capita consumption at 230 kg is abysmally poor. The positive thing is that low per capita consumption indicates that there is huge scope for growth in the Indian cement industry. Cement industry in India is largely divided into five main ||www.constructionmirror.com||

regions, viz. north, south, west, east & central region, because cement being a bulk commodity its transportation over long distances is uneconomical. In the last on year, capacity additions have happened at a faster rate than growth in demand, due to which prices of cement have remained subdued. Principal growth driver for cement industry is residential housing. However, with govt’s thrust on the infra. sector, this sector is likely to emerge as the next growth driver.

Concerns

Cement industry has been facing quite a few challenges due to adverse investment environment & rising fuel prices. Investment in cement plants is always on a long-term basis due to the long gestation period. Also, with interest rates at a high, the capital costs are high too. Licensing of coal & limestone reserves, supply of power from the state grid, etc. are controlled by the govt., so cement CoS have no option but to buy from the state. The shortage of coal & the volatile fuel prices have forced the producers to rely on captive power. There is tough competition amongst the players, which also takes a toll on the company’s profitability. RBI policy measures to increase interest rates aimed at curbing inflationary pressures resulted in credit

crunch thereby adversely impacting real estate, infra. & other construction projects. The vagaries of monsoons & logistical bottlenecks slowed down construction work and, as a result, average industry capacity utilisation at one point fell to as low as 70%. Low cement demand dented average realizations, while additional capacities exacerbated oversupply situation. Also, rising input & fuel costs hurt the margins of cement players, while export markets saw sluggish growth due to slowdown in global economy, especially the sagging construction activity in Gulf region.

Prospects

Rising inflation, high interest rates, high prices of commodities & fuels have slowed down Indian economy & since cement industry’s prospects are linked to the prospects of the economy, the cement industry would face an uphill task ahead. The housing sector consumes almost 60-70% of the country’s cement & if the slowdown in real estate persists for an extended period, it would adversely impact the consumption of cement. Despite overcapacity situation in cement industry, several major capacity additions on the anvil in the next few years in anticipation of rise in cement demand. As a result, supply overhang would persist for next 2-3 years, putting

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CONSTRUCTION MIR ROR

pecial Feature: RMC Plants

pressure on realizations. Demand for cement is likely to grow at around 8-9% due to the govt’s thrust on infra. & housing. While presence of RMC in India has been growing steadily over past few years, it only accounts for about 9% of cement consumption compared to other developed countries wherein nearly 80% of cement consumption is in form of RMC. Cyclical downturns in construction activity driven by slowing economic activity, deferral of infra. projects, policy hurdles & high interest rateshas resulted in subdued RMC demand growth through the years 2012-13, affecting the industry in terms of reduced production volumes & cash flows. However, RMC segment is expected to grow at a healthy rate in next few years with markets expecting to see a turnaround shortly & an increased emphasis on quality, safety & speed within Indian construction industry.

Market Statistics

According to a 2013 report by Building Materials & Technology Promotion Council, it is est. that India produces around 35-40 mn cu.m of concrete annually from around 1000 RMC facilities spread over the country. Projected growth of RMC plants is expected to be over 7% in the next 5 years. Many of the RMC plants in India are modern computerized batching plants with automated controls. But all the plants are not properly equipped to produce the desired quality of concrete. Overall ready-mix penetration in India is around 9% but it is projected to be

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14% by 2017-18. Demand is highest from housing segment followed by infra. & industry resp. While earlier, demand for RMC was largely seen in the metros, industry has now grown to all parts of the country including Tier II & III cities. In terms of regional distribution, the WR & SR contribute to majority of India’s RMC demand. Both these regions have higher concentration of urban areas with relatively higher number of projects involving construction of multiple high rise buildings & large scale infra. projects which compulsorily focus on the quality of concrete & its timely availability.

Demand Drivers

Construction industry has been predominantly labour intensive & a large volume of market still produces site-mixed concrete involving un-skilled labour. However, there has been a gradual shift in the mindset. According to a study by Synergy Industrial Services, unorganized construction sector in India is soon going to be plagued by labour shortage & the unavailability is expected to steeply go up by 65% by the next decade with more workforce moving from the traditional brick & mortar industry to more lucrative industries. This is expected to drive the Indian construction sector go in for large-scale mechanization & project mgt. to meet the challenges of rapid development, cost, quality & time. An increase in big projects is spurring consumption of RMC because these structures require concrete that is of uniformly high

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quality & provided on a timely basis to meet needs of tech’s for accelerated construction like slip form construction that use a continuous flow of concrete. This becomes more sig. against backdrop of govt. initiatives such as the development of smart cities, increasing connectivity through metros, monorails & road networks & enhancement of existing infra. facilities like airports, hospitals, bridges, roads & stations. The need for affordable housing is also expected to boost demand in Tier II & Tier III cities. All the above factors are expected to encourage the growth of the RMC industry in the country. The market consists of pure play RMC CoS such as RDC Concrete, cement manufacturers who have a RMC arm such as ACC, Ultratech, RMC Readymix (Prism Cements), India Cements, Chettinad Cements, Ramco Cements, Lafarge Holcim & Heidelberg & captive capacities typically set up by infra. players & real estate developers involved in the execution of large scale projects with a certain minimum & sustained req. of concrete such as Godrej & Boyce & Ahlcon. RMC market in the country has become more fragmented & competitive with many new entrants from the unorganized segment. Lack of any stringent govt. regulations & localized nature of demand has led to the entry of several small, unorganized players. These local players with smaller capacities (30cu.m/ hr to 45 cu.m/hr) foray into the market with a strategy to meet local demand over a longer period of time. Majority of the plants ||www.constructionmirror.com||

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pecial Feature: RMC Plants

operate at below 40% utilization levels & the batching plants operate for a couple of hours against its effective capacity. Large RMC producers with forward integrated supply chains enjoy a competitive advantage over small players. Advantage results from securing more reliable supplies of materials, more efficient logistics, better mgt. of site networks, better customer service & stronger technology. These are benefits of scale. & in terms of sales & marketing, the well-known RMC producers with strong brands serve as preferred vendors to large contractors, thus dominating the high-value project segment.

Challenges & Outlook

Timely & uninterrupted delivery of RMC to a construction site is of utmost importance for efficient construction operation. Due to the small time windows available for the transport of concrete material, delivering the material in the shortest time is imperative. However, road infra. in India is ill equipped to cope up with traffic & average speed in central business districts during peak hours is extremely low. To a RMC producer, these traffic conditions are potentially detrimental because it adversely affects the slump retention. Other major problem is the congestion which makes it difficult for maneuvering the transit mixers at desired point. Time restriction for heavy traffic in most of the roads is also increasing day by day, making the transportation problems worst as well as hampering the quality & productivity of site execution. In order to work around this, RMC manufacturers are introducing several other measures. Manufacturers are using certain chemical mixtures 52

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at times to increase the life-span of the concrete while it travels in transit mixers. Lafarge India introduced a product called the Concrete Master (ready to use concrete & mortar in 30 kg bags)which allows customers to order RMC in small quantities & allows up to 4 hours of workability. This benefits contractors & people who are working in congested areas where concrete mixers cannot reach. Also targeting the retail segment, ACC has launched Bucketcrete, which contains 30kg concrete in a bucket. The content, enough to layout 4ft2, needs to be used within six hours. Self-curing Bucketcrete is made to order & delivered a day in advance at the dealerâ&#x20AC;&#x2122;s end. The use of RMC has long been restricted to big builders as it is traditionally sold in truck loads. Contractors doing small civil repair work have to depend on the manual mix of cement, sand, stone & water by the mason. The company hopes to change the situation with the introduction of Bucketcrete. Malpractices like forged invoices & quantities to save taxes & fly by night operators have marred the industry. Absence of any quality certifications by the govt. had led to new entrants without any technical knowhow to operate plants & sell concrete at low prices. Realizing this challenge, Ready Mixed Concrete Plant Manufactureâ&#x20AC;&#x2122;s Associations (RMCMA) took initiative to evolve a system of audit themselves & developed a detailed check list, based on international practices & relevant Indian Standards for audit. To give the auditing an independent identity, RMCMA has now joined hands with Quality Council of India, who has taken responsibility to operate the

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certification of RMC plants. Taxation is another major deterrent since RMC manufacturers have to pay VAT on the concrete, which is not applicable for site mixed concrete. Govt. has a major role to play with promoting the use RMC by specifying its use in major public & construction projects. Govt. bodies, private builders, architects/ engineers, contractors, & individuals are to be made fully aware about the advantages of using ready mix concrete. Lack of good quality aggregates is also an impediment to the growth of the industry. Aggregates are the lifeline of continuing RMC supplies. While govt. has banned mining of natural river sand, little has been done to promote alternatives like manufactured sand. Factors affecting the durability of concrete are dependent on all elements that constitute final concrete mix including placing, compaction, finishing & curing of concrete which is under the purview of the contractor. Currently, little freedom is given to RMC players to optimize mixes for strength or durability resulting in uneconomical mixes devoid of durability & sustainability. This also leads to shrinkage cracking owing to higher cement & water contents & the blame goes to the RMC producer. Being late entrants, RMC producers in India have had the advantage of using the latest-generation plant & equipment for their plants with sophisticated micro-processor based controls having ability of accurate weighing & batching, automatic charging, adjustments for moisture compensation & inventory control. Most of them also have a fleet of transit mixers of various capacities & are also well-equipped with facilities for pumping concrete. ||www.constructionmirror.com||

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pecial Feature: RMC Plants

Players like Putzmeister, Schwing Stetter, Greaves Cotton, Apollo Infratech, ReadyMix Construction Machinery have also increased their presence with expectation of strong growth in the ready mix concrete industry. The nation’s RMC industry is still at a somewhat early stage of development, & will expand considerably on the back of growth in the construction sector. Consequently, the long term outlook of RMC market continues to be positive.

Quality certification

Quality control standards are required to benchmark the ideal req.s of RMC & also to standardise the quality of materials used in the manufacturing process. The need for certificationWith abundant options available for any product in the market, it has become highly imperative for the customers to be aware of the quality of the options being chosen. Similarly, in the present era of rapid infra. development where there are large numbers of RMC (ready-mixed concrete) manufacturers in the country, both pan-India suppliers & local players, it is important to have some quality control standards to benchmark the ideal req.s of RMC & also to standardise the quality of materials used in the manufacturing process. QCI & NABL are two such certifications which, if acquired by the plants & labs give the customers an assurance of quality in operations & processes of business transactions.

elimination of the need of extensive & time taking retesting. The NABL certificate is valid for two years, after which a reassessment is required. Currently, RMC Readymix (India) has four NABL accredited labs in Bangalore, Mumbai, Gurgaon & Chennai. The certification of Bangalore lab in December, 2012 was the first of its kind for any RMC manufacturer in the country. All four labs have facilities for mechanical testing of concrete & aggregates. Customers’ ConfidenceWhen a customer buys concrete from a QCI certified manufacturer who also happens to maintain NABL accredited labs, he can be assured of the quality of raw materials used in the concrete as well as a steadfast quality assurance plan coupled with immaculate manufacturing processes. The concrete samples drawn from the supplies may also be tested at the plant’s NABL labs. Maintaining both NABL accredited labs & QCI certified RMC plants, reflects the company’s resolute focus towards quality of products & customer service.

RMC Plant Certification Scheme

In May’13, the Ready Mixed Concrete Manufacturers’ Association (RMCMA), a Mumbai based non-profit industry organisation & Building Materials & Technology Promotion Council (BMTPC) participated with the Quality Council of India (QCI) to set up a credible & independent third-party voluntary RMC Plant Certification Scheme. RMC plants under this scheme are certified by NABCB accredited certification bodies. Currently, there are two such bodies: Bureau Veritas Certification (India) Pvt Ltd & Tata Projects Ltd (Division TQ Services). This scheme has two options: RMC Capability Certification & RMC 9000+ Capability Certification. It specifies the criteria for req.s of plants & equipment, concrete mix design, testing, quality control of materials, final product, delivery, control & maintenance of equipment etc. With the advent of this scheme, customers got an assurance that a QCI certified plant is capable of consistently producing concrete of superior quality & if they purchase RMC from such plants, it will meet their req.s. RMC Readymix (India) claims to be the first Indian company to receive this certification at its Kochi Plant & hasn’t looked back after that. Most of the company’s plants are QCI certified & of these, three have the RMC 9000+ Capability Certification. NABL Accreditation for Laboratories Another such coveted standard of accreditation is the one from the National Accreditation Board for Testing & Calibration Laboratories. NABL has become an impartial third-party assessor that certifies the technical competence of any laboratory. This accreditation was brought into being with the intention that the test results & data from any NABL accredited lab can be accepted throughout so that there is an 54

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Fly Ash vis-a-vis GGBS

Fly ash Fly Ash is the finely divided mineral residue resulting from the combustion of powdered coal in electric generating plants. GGBS (Ground granulated blast furnace slag) GGBS is obtained by quenching molten iron blast furnace slag in water or Steam, to produce a glassy granular product that is then dried and ground into a fine powder. As worldwide awareness & concern over increased carbon emissions & its direct impact over global climate change increases, there is intense pressure over all industries to reduce their emissions. The backbone of the construction industry is concrete, which is widely regarded as a high energy material with a current consumption of 1 cubic meter per person per year. Some of the proposed alternatives are Blended Concretes that utilize industrial wastes such as Fly ash & GGBS. Ordinary Portland cement (OPC) has been used for around 200 years as a binder material. However OPC has high embodied energy of 4.2MJ/kg. Contribution of OPC is approx. 5–7% of global man made CO2 emissions high CO2 emissions arising from OPC manufacturing are from calcination of limestone, & high energy consumption during manufacturing. During the recent past many alternatives to OPC concrete have been proposed to reduce green house gas emissions which are Blended Cement Concretes, comprising OPC that has been partly substituted by supplementary cementitious materials, as binders for concrete. Commonly used substitutes include

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Fly ash, a fine waste residue that is collected from emissions liberated by coal burning power stations, & GGBS, a waste by-product from steelmaking. According to Flower & Sanjayan use of blended cements results in reduction of CO2 emissions by 13–22%. These estimates vary according to the local conditions at the source of raw materials, binder quantity, & amount of OPC replacement, type of manufacturing facilities, climate, energy sources, & transportation distances. Slag is the co-product of a controlled process from iron production, which results in a very uniform composition from source to source. Fly ash is a byproduct of electric power generation that varies from source to source. This is one reason why Slag can be used in much larger amounts. Both are used as a replacement for a portion of the Portland cement. Slag replaces as much as 50& in normal concrete (and up to 70& in special applications such as mass concrete). Fly -Ash is usually limited to 15 or 35&. Indian Fly ash contains about 55& SiO2, out of which only 20 to 25& are in glassy form. Hence, addition of 100 kg of fly ash (that is, 25& of OPC), will consume only about 14& of Ca(OH)2; & 86& will remain unconsumed. This calculation is in line with the fact that all of Ca(OH)2 in concrete was shown to be consumed only when 50& of Slag or 30& of silica fume was used, which is mostly active silica. Fly ash is not a hydraulic material, hydration will not take place on its own, & it will only harden with the use of activators (e.g. OPC). GGBS, in contrast, is a hydraulic material, which means that it will set & harden due to a chemical reaction with water. After hardening, it will retain some strength development & remain stable even under water. Concrete containing GGBS cement has a higher ultimate strength than concrete that uses 100% Portland cement. The permitted replacement ratio of Fly Ash in OPC is 15-35% (IS 1489 Part-1), but it’s usually no more than 30% in concrete. On the other hand, the permitted replacement ratio of GGBS in OPC or concrete is 25-70% (IS 455). It could even be replaced up to 85% in some of the European ||www.constructionmirror.com||

countries. With the same content of cementitious material (the total weight of Portland cement plus GGBS), similar 28-day strengths to Portland cement will normally be achieved when using up to 50& GGBS. At higher GGBS&ages the cementitious content may need to be increased to achieve equivalent 28-day strength. GGBS concrete gains strength more steadily than equivalent concrete made with Portland cement. Typically a Portland cement concrete will achieve about 75& of its 28-day strength at seven days, with a small increase of five to 10& between 28 & 90 days. Ready mix concrete industry is slowly & steadily adopting & increasing the usage of secondary cementing materials like Fly ash & GGBS in the production of ready-mixed concretes contrary to the use of pure ordinary port land cement concrete in the ready-mixed concrete productions in the initial stages of RMC Industry growth in the early 90’s. In the late 90’s & early 2000 readymixed concrete industry predominantly used blended concretes made with Fly ash as it was abundantly available from various nearby thermal power producing plants & was well received by the customers even though there was very much resistance from customers, structural consultants & builders in the early stage due to lack of awareness. The year 2006 was the major entry of GGBS to the Indian market by a well known steel company in the south Indian markets having its manufacturing facility at Karnataka, Andra pradesh & Maharastra through their group cement company & later on many new CoS have entered the market with manufacturing facility for GGBS due to the increased demand & potential. GGBS is now mainly available in major southern & western Indian ready-mixed concrete markets like Bangalore, Hyderabad, Chennai, Mumbai, Pune, Mysore, Mangalore, Hubli, Vizag, Vijayawada & Coimbatore etc If we look at the ready mixed concrete industry in India today, it has grown exponentially high due to availability & growth of technology, mechanization, resources & demand. As per survey conducted by the Authors during the period from December 2009 to April 2013 on the

spread of commercial Ready mixed concrete plants in cites throughout India, & as per Table 4 listed below, there are more than 857 commercial RMC plants run by 5 large RMC CoS like Ultratech, RMC readymix (India), Lafarge, ACC Concrete, RDC Concrete & 445 smaller RMC CoS operating in 88 large & smaller cities & towns across India producing approximately 2.25 mn cum of commercial RMC monthly & the numbers are growing every year. The usage of GGBS for producing concrete at RMC plants is increasing day by day in the southern & western markets due to the availability of product & technical superiority. As per survey it is estimated that average consumption of GGBS in the southern RMC industry markets is near to one mn mt per year & about 0.4 mn mt in the western India. It can safely be concluded that GGBS, which till recent years has been treated as a waste product of steelmaking plant, is in fact a valuable resource material. Its appropriate utilization can provide an economic bonanza worth more than a billion dollars. If we add the value of land which would otherwise be excavated for consumption or for dumping of GGBS, value of agricultural produce from this land area & environmental benefits in terms of reduction in emission of green house gases & reduction in mining activity etc., the total worth of the saving would increase phenomenally. Due to quality, availability, energy effective, low cost, it is widely used for construction purpose which enriches the workability, mechanical properties, durability & sustainability. Because of enriched properties of GGBS, it is widely used for RCC in all types of foundations & Super Structure works, General building construction, Mass Concrete works in dams, spillways, canals, foundations, Underground works, retaining walls, culverts & drainage works, Effluent & sewage treatment plants, Marine work & many more. RMC industry in southern & western Indian market is adopting the use of GGBS in their concrete mixes for giving value addition to their customers in respect of cost effectiveness, sustainability & durability performance.

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CONSTRUCTION MIR ROR

ndustry Feature: Crane Industry

Indian Crane Industry: Market is an Attractive yet Challenging Prospect 56

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rane Industry

By 2019, the APAC region is est. to account for >45% of the total market share. Increasing investments in urban infra. projects across countries, such as China, India & Indonesia is exp. to augment market growth in APAC. According to industry reports, the market is driven by many growth factors, one of which is, the growth of high-rise building construction in APAC. Growing population & migration of people to urban areas, have led to an increase in demand for new cities, with efficient transport infra. facilities. Result is a sig. rise in the no. of urban infra. projects, across diff. countries, which has escalated demand for tower cranes. Consequently, this market is exp. to generate revenue of >USD 8 bn, by 2019. One of the major trends is the growth of equip. rentals. With construction equip. industry being capital intensive, many small firms are unable to invest heavily in advanced tower cranes. There are many vendors, who offer equip. on a rental basisand is exp. to lead to an increased adoption of tower cranes. Today, the market has become more customercentric. There are several players in the market, to offer similar type of products. The buyers power comes into the picture, when several manufacturers are able to offer similar type of equip. However, the features offered by diff. manufacturers should play the crucial role, in decision making. This is the area, where supplier power comes into the picture. Nowadays, apart from just an equip., service & spare parts, support is also considered to be extremely imp. Good products, without prompt service support is bound to lead to losses, because of breakdown & loss of crucial project-completion time. Capacity & Capability of manufacturers, to offer advanced equip. with service back-up differ marginally. Hence, is difficult to compare

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ndustry Feature: Crane Industry

them on similar scale. Reliability, user-friendliness & safety are some of the most imp. features of tower cranes. Range of tower cranes comes with several innovative features, such as parameter monitoring system. It ensures all the movements remain within the safe programmed limits. Self-climbing mechanism with anti-drop device ensures safe jacking operation. Climbing frame with platform is provided for easy & quick self-erection. Limit switches used in cranes help for smooth hoisting, slewing & trolley movement. Anti-twist device used for wire rope prevents twisting of wire ropes, to avoid any potential danger. Trolley is equipped with safety features, such as wire rope breakage protection, axle breakage protection & wire rope guide. Load limiter & moment limiter provided, ensure extra safety measures. Modular connections of the counter jib & main jib, to the slewing module en-sure quick assembly & disassembly to save time & efforts. Ladder with safety cage & rest platforms is convenient for operators & maintenance personnel. It is true & equally imp. to make operator-friendly design for cabins of tower cranes. It is the operator, who needs to drive-out the best performance of a tower crane. The user-friendly, ‘space capsule’ operator cabin not only looks great, but also provides the operator with a wider field 58

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of vision. Most of the control systems are placed at convenient locations, inside the cabin. The capsule shape of cabin ensures the stability during high wind pressure. Load limiter & moment limiter provided, ensures extra safety measures. Ladder with safety cage & rest platforms is convenient, for operators & maintenance personnel. Higher land cost & limited space in urban area are pushing developers to opt for high-rise buildings. There is still a big gap between the demand & the supply of residential space, in major metros in India. On the other hand, govt.’s push on infra. projects has created demand for tower cranes, in India. Construction & infra. are the biggest verticals to drive the demand for tower cranes, followed by industrial vertical. As/ our estimate, 5-10T capacity cranes will be in high demand. Renting crane business is becoming popular these days, because many small & medium-size developers cannot afford to buy tower cranes. Big players are more likely to buy tower cranes, because they use it for several projects, over a longer time frame to save on project cost. On the other hand, financing option will still be lucrative & feasible only for the big players. For many of the small developers, basic finance plus interest surplus can still be a big ‘no’. However, financing will support the renting CoS to buy tower

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cranes. This will encourage smal-ler upcoming CoS into crane renting business. Reliability, user-friendliness & safety are some of the most imp. features of tower cranes.

Evolution & growth of Indian crane industry From being simple machines used to carry up & bring down materials, cranes & hoists have today become more sophisticated simplifying processes in manufacturing, mining, infra., automotive & construction industries. A wide range of industries, especially manufacturing, mining & construction require heavy loads to be lifted or lowered in various processes. Machineries like hoist & cranes have greatly refused the human efforts & also brought down the process timing, thereby increasing the output. A crane is a machine used for lifting materials. It has a winder (also called a wire rope drum), wire ropes or chains & sheaves to lift & lower loads & to move them horizontally. It has one or more simple machines to produce the mechanical power for moving the loads, which otherwise is beyond a human’s physical capability. Cranes are commonly used in the transport industry for loading & unloading freight. It is widely used in the construction industry, especially while building tall buildings, & also in the ||www.constructionmirror.com||

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CONSTRUCTION MIR ROR

ndustry Feature: Crane Industry

manufacturing industry for assembling of heavy equip.. The earliest cranes were used for construction activities in Ancient Greece. They were mostly powered by labourers or men or other animals. Later, as their application increased, they evolved into larger cranes to lift heavier weights. With the growth in the shipping industry, harbour cranes were introduced for loading & unloading material & even building of huge ships. Wood being the commonly used material back then, most of the earliest cranes were made from wood. Later after industrial revolution, cast iron & steel cranes came into existence. The invention of steam engines added to the power of these cranes. The earliest steam crane being introduced in the 18th or 19th century & were used till the late 20th century. With increase in the scope of their usage, todayâ&#x20AC;&#x2122;s cranes are powered by internal combustion engines or electric motors & hydraulic systems & operate with advanced computerised systems. Some industries though still use manual cranes power supply is a concern. Cranes exist in an enormous variety of forms; each tailored to a specific use. Sizes range from the smallest jib cranes, used inside workshops, to the tallest tower cranes, used for constructing high buildings. 60

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For a while, mini-cranes are also used for constructing high buildings, in order to facilitate constructions by reaching tight spaces. Larger floating cranes are generally used to build oil rigs & salvage sunken ships. There are 3 major considerations in the design of cranes. 1st, the crane must be able to lift the weight of the load; 2nd, the crane must not topple; 3rd, the crane must not rupture. Cranes illustrate the use of one or more simple machines to create mechanical advantage. Cranes, like all machines, obey the principle of conservation of energy. This means that the energy delivered to the load cannot exceed the energy put into the machine. Cranes can also get in chain reactions; the rupture of one crane may in turn take out nearby cranes. Cranes need to be watched carefully. Standards for cranes mounted on ships or offshore platforms are somewhat stricter because of the dynamic load on the crane due to vessel motion. Additionally, the stability of the vessel or platform must be considered. For stationary pedestal or kingpost mounted cranes, the moment created by the boom, jib, & load is resisted by the pedestal base or kingpost. Stress within the base must be less than the yield stress of the material or the crane will fail. There are many types

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of cranes depending on their use. They include mobile crane, truck-mounted crane, sidelift crane, rough terrain crane, all terrain crane, crawler crane, aerial crane, fixed carne, tower crane, hammerhead crane, overhead crane, deeck crane, jib crane, bulk-handling crans et al. A hoist is a device used for lifting or lowering a load by means of a drum or lift-wheel around which rope or chain wraps. It may be manually operated, electrically or pneumatically driven & may use chain, fiber or wire rope as its lifting medium. The basic hoist has two imp. characteristics: Lifting medium & power type. The lifting medium is either wire rope, wrapped around a drum, or load-chain, raised by a pulley with a special profile to engage the chain. Power type can be either electric motor or air motor. Both the wire rope hoist & chain hoist have been in common use since the 1800s. Also known as a Man-Lift, Buckhoist, temporary elevator, Alimak or construction elevator, this type of hoist is commonly used on large-scale construction projects, such as high-rise buildings or major hospitals. There are many other uses for the construction elevator. Many other industries use the buckhoist for full time operations. The purpose being to carry personnel, materials, & ||www.constructionmirror.com||

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ndustry Feature: Crane Industry

equip. quickly between the ground & higher floors, or between floors in the middle of a structure. In underground mining, a hoist or winder is used to raise & lower conveyances within the mine shaft. Modern hoists are powered using electric motors, historically with direct current drives utilising solid-state converters (thyristors), however modern large hoists use alternating current drives that are variable frequency controlled. There are 3 principal types of hoists used in mining applications, Drum hoists, Friction hoists & Blair multi-rope hoists.

Growth potential

Demand in the Indian industry has now shifted from simple mechanical handling of loads to complex processes & more automated equip.. The industrial cranes & intra-logistics industry has seen strong demand from infra., energy, 62

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steel & automotive segments. Other than automotive, all other segments attracted investments even during the slowdown of 2008-09 & thus helped most material handling CoS sustain the top-line. This industry is highly fragmented with many small & regional manufacturers; eg. industrial cranes segment has >100 players in the country with top five CoS having an aggregate market share of 50%. Increasing need of sophistication coupled with expectation of higher growth rates has made India an interesting market for many MNCâ&#x20AC;&#x2122;s; this will also change the industry structure in medium run. With India pulling out all stops in building world-class infra., crane manufacturers are looking at exploiting the huge market potential this presents. Witnessing the boom in this sector, crane manufacturing is the right place

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to be in. Despite the slowdown, the crane industry has been on the fast track because of the demand in power & infra. sectors. The Indian crane industry is split along the lines of organised sector & unorganised sector. Further, the competition is also split up geographically. Hence, there are only a handful of players in the organised sector, which are really active on a pan-India basis. India is a growing market with many multi-national & domestic crane manufacturers.

Challenges in the Crane Industry

Material Handling Equip. (MHE) Industry in India has a wide variety of products to offer to multiple industries depending upon the needs of that particular industry. This sector manages equip.s that concern storage, control & protection of materials, goods & processes throughout the manufacturing ||www.constructionmirror.com||

funding; Slow Documentation Due to the lack of coordination between the local, state & central govt. bodies, there is a major delay that gets established right at the legal approval & documentation stage; Unfavourable Laws & Taxes Due to unfavourable taxes, the industry cannot fully grow. Profit margins have reduced & thus, investors could potentially lose interest in MHE; & Demand Supply Gap also exists. While the Indian market provides a plethora of opportunities to crane manufacturers, the challenges in this sector cannot be overlooked. Challenges are faced by manufacturers while undertaking business development in making the users understand the application & utility of the machinery. Skilled manpower development is yet another challenge which needs to be addressed intelligently to allow optimum utilization of the equip.. Starting diploma cou rses for crane operators in the field of crane operations & safety is a good way to plug skill shortage. The possibility of a tie-up with institutions overseas can be a good business proposal in this regard. India has a vast technical talent base, an established component vendor base & low labour rates, all of which lend it the distinct advantage of becoming an export hub for the Middle East & South-east Asian markets. India can also be regarded as a future R&D hub for international giants because of low R&D manpower costs. Thus to sum it up, with investments to the scale of US$ 700-800 bn planned in all the relevant user industries of construction equip., this is the best time for construction equip. manufacturers. India is an exciting market to be present in over next 20 years.

Market trends

process. The industry extends up to the processes of distribution, consumption & disposal. It is classified into equip. categories like cranes, hoists, manufacturers, conveyors, scissor lifts, transfer trolleys, etc. Since cranes impact the working of so many industries, the huge demand for this category of equip. is reflected upon the industry with the growth of crane manufacturers in India. Crane suppliers in India have thrived with the growth of industries like infra., construction, automobile, shipyard, capital goods manufacturing, general engineering, transportation, energy, power, etc. In spite of a promising future of the industry in a developing economy like India, here are some major problems which hamper the growth of the crane suppliers: Slow Clearance Procedure The clearance process includes collaboration with multiple agencies which makes the process painstakingly time consuming. Due to a lack of coordination, basic clearances end up slowing down the entire process; High Working Capital Due to factors like low cost recovery, high working capital, & long working capital cycles, the crane manufacturers in India are limited to a mere few. This leaves the market for those crane suppliers who are backed by large sources of ||www.constructionmirror.com||

Demand is definitely shifting from cheap & quick equip. to well-engineered & reliable equip. offering high productivity as well as safety features. Clients are spending more time reviewing product specifications & performance parameters & suppliers’ credentials. They are aware that the consequential project losses of equip. failure are steep. Experience suggests that it isn’t enough to evaluate models from diffrent brands on features & price. Machines could be comparable in terms of features, but the usage experience & product support could sig.ly vary. Poor product support can seriously affect site activities. It helps to buy a product, for which product support & spare parts from an OEM are available in the project vicinity. One perception is that MNC’s construction CoS are leading demand-side changes. In aiming for high standards of quality & faster completion periods, to start revenue generation earlier & thereby lower costs for clients & deliver healthy profit margins to operators, MNC’s have raised the bar for equip. & tech.. A key market trend is growing consciousness about safety, including compliance with site safety req.s. To this end, crane users are shifting away from less safe articulated cranes. In an articulated crane, the centre of gravity shifts as soon as the crane is steered with load, making it prone to toppling, especially when it handles loads sidewise. The safe load indicator works only when the boom is straight. Safer pick-and-carry cranes are also in demand. Growing availability of pick-and-carry cranes of 15 T capacity, Among crane hirers, || FEBRUARY 2018 ||

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ndustry Feature: Crane Industry

CoS on completing projects in time by deploying highly productive machines has helped weed out fly-by-night equip. manufacturers who won orders by cutting prices & cutting corners. All considered, genuine players offering quality products & buyers driven by price over tech. are indeed positive signs. Strict regulations against the import of used machines, introduced in 2012, led to the import & then local manufacturing or assembly-supply of Chinese cranes & hoists. Chinese cranes of capacity as low as 25-T-class, all terrain/ truckmounted/ crawler cranes, up to 200-Tclass, self-propelled, truck-mounted/ crawler/ hydraulic /mechanical cranes are priced more competitively than

a visible trend is that they are opting for new cranes instead of used cranes to ensure higher reliability & uptime. Crane rental CoS are increasingly seeking value-added modern models, as rentals have not increased over the past few years. Growing demand augurs well for the cranes & hoists industry. A fairly large segment on its own, it is seeing appreciable growth rates. India boasts a huge market for regular hoists, pick-andcarry cranes & small capacity cranes, about 5,000-6,000 units annually. Demand for above 200 T, tyre-mounted mobile cranes & above 600 T crawler cranes doesn’t exceed 20 cranes annually. Cranes & lifting solutions are the fastest growing construction equip. segment with annual growth of over 30%. The power, roads, manufacturing & infra. sectors are generating most of the demand for cranes. Demand depends a lot on govt. policies & priorities. Based on that, opportunities in the immediate term, in his view, exist in the windmill industry (it needs 15 high-capacity crawler cranes) & in the metro industry (it needs five 300 T to 500 T mobile cranes). A major growth in demand for 600 T & above crawler cranes is visible, especially those required for wind turbine installations. At spaceconstrained metro construction sites across the country, where underfoot conditions are difficult, CoS prefer 64

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rough terrain cranes for their compact size, pick-and-carry advantage, shorter turning radius & four-wheel drive over mobile truck cranes. ‘Demand for new all-terrain cranes of 300 T capacity & crawler cranes is increasing in the power sector. CoS prefer truck cranes of 40 to 80 T capacity for material handling. The increased uptake of cranes for the windmill industry has resulted in some product evolution. For instance, Liebherr now offers two additional upgraded configurations of the LR 1600/2 crane, the SL10DFB & SL13DFB, with modified booms specially designed for higher wind mill hub heights. ‘Lifting height needs have increased from 120 m to 135 m or even 150 m. Buyers of high-capacity crawler cranes look for lower transport cost as this forms a major component in the crane’s operating cost. This has led to the development of cranes needing fewer trailers for transport. Reliable machines from Indian manufacturers like Escorts, Ace, etc, dominate the lower-end of the market. ‘Mid-range heavy weights for the breadth of choice they offer include Tadano, Kato, Groove, Bendini, Zoomlion, XCMG, etc, while mid-range market leaders like Terex, Leibherr, Hitachi-Sumitomo-Linkbelt, Demag, etc, cover the heavy lifting or wider operating radius end. Branding as a concept is gradually gaining as construction CoS become more aware of tech.. The focus of construction

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Indian models & at even half the price of MNCâ&#x20AC;&#x2122;s products. Chinese cranes made recently, say in the past 5 years, are also technologically superior to Indian models. Chinese manufacturers are competing in developed markets with CE/US approval-certified machines; this is why Indian CoS have entered into JVs with Korean, Chinese, European & US brands. Elevated metro jobs involve lifting large, heavy structures like girders weighing 60 T, of width 25-30 m. One way to achieve such lifts is to use cranes of 500-700 T capacity, which are not easily available. An alternative is to lift the material by using two gantry cranes, each of 350 T capacity, in tandem. Now two similar cranes can be operated in

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tandem to lift such heavy structures with the use of a radio remote. Gantry cranes with an AC drive motor allow variation of speed. Slow speeds of LT motors are useful when girders are lifted & transported. An AC drive motor with lower RPM running requires lower starting current. Soft starters are typically installed in bigger motors. This reduces the starting current & offers higher starting torque. Anti-collision devices activate when two cranes come close to each other, tripping operations for safety. Gantry cranes with cantilever extensions, can sig.ly extend the reach of the machine. A 30-m-span gantry with 6 m cantilever extensions on both ends can serve up to 42 m. Both the extension segments

are detachable. Huge market in India for regular hoists, pick-and-carry cranes & small capacity cranes, about 5,0006,000 units annually. Demand drivers: Power, roads, manufacturing, infra, windmill & metro. Consciousness about reliability, safety & quality of products, increasing. Preference for new cranes over used cranes for higher reliability & uptime.

Indian Customer

The Indian Industrial cranes industry is definitely getting more & more customer oriented. The Indian customer is an ever evolving customer. From being exposed to shoddy equip. a decade back, today the Indian customer is the king with a choice of high quality equip. at his beck & call. Hence naturally, the demands

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CONSTRUCTION MIR ROR

ndustry Feature: Crane Industry

of the Customer’s are also evolving. Initially, the customer used to have a single line focus of only the pricing aspect without bothering a lot about the technical comparisons between diff. offerings. However, now, the customer takes pains to go through the complete technical specifications & ensures that the end product encompasses all the functional aspects as well as other aspects like reliability, safety, ease of maintenance, etc. In today’s infra. projects timelines are sacrosanct & delivery & commissioning schedules are closely monitored by the customer. Another remarkable trend in this sector is that with several international tie-ups happening, the industry has started to have considerable global influence in terms of quality & use of better tech.. The industry is definitely getting more & more customer oriented. Apart from the competition & the plethora of products available in the market, there has also been a shift in the mindsets of the consumers as well as manufacturers towards the overall aspect of customer service. As a result Customer’s expect good & timely service by default & manufacturers have to put enabling structures in place to ensure that their Customer’s have no cause for complain. Talking of the availability of high-end solutions, the Indian materials handling equip. sector is at par with the global industry when it comes to the field of industrial cranes. Today, the latest & best tech. is available in India & Indian industrialists are embracing these products with open arms. Price & cost efficiency is definitely imp. but the competitive advantage of cranes lies in technological superiority. India is following the international trend of consolidation in the industry; most Indian manufacturers are associating with international majors on the technological front.

Industry Poised for Great Heights

Along with earthmoving equip., lifting equip. constitute one of the fastest growing segments in the Indian construction equip. industry. The market for cranes is on the rebound after the lull experienced during the 66

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time of global economic meltdown. The continued thrust on infra. development has been driving forward the market’s growth. With both the Central & state govt.s keen on providing impetus to development of the power sector, things have never looked better for lifting & material handling suppliers in the country. Hogging the headlines in recent times in the power sector has been the slew of announcements with respect to nuclear power projects in the country. There are reportedly plans for establishing around 25 nuclear power plants in various parts of the country. Glad tidings for crane suppliers also came in the form of the thrust being provided to wind power generation in the country. The recent slowdown in China’s economy, with the Chinese govt. taking a series of measures to bring down inflation, has ensured that the focus has now shifted right onto India, as far as the Asian continent is concerned. With the market for cranes maintaining a healthy growth rate of 25% to 30 %, several new models are on display during Excon. Most of the global majors have their presence in the Indian market, either on their own or through tie-ups with domestic players. TIL for e.g., considered a market leader offers a comprehensive range of lifting equip.. The CoS range includes, rough terrain cranes from 20T -120 T, truck mounted cranes from 25 T,90 T, all terrain cranes from 35 T,450 T & crawler cranes from 80T,1300 T lifting capacities. TIL with its strong R & D focus has been continuously & successfully anticipating future needs of the industry & introducing products. This endeavour has meant that whenever there was a req. for a new type of crane or new tech., the company has been a trendsetter. One of the fastest growing segments among cranes is the mobile crane market. The market is was est. to be growing at a rate of about 25 % till 2008 after which the rate declined in 2009 due to the global economic meltdown. With renewed focus on infra. projects, there are positive signs of growth for this segment, according to industry analysts. Then market has rebounded after the

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lull experienced a few years ago & is exp. to maintain its rapid growth rate, what with the govt. envisaging US $ 1 trillion investment in infra. development during the 12th FYP. Another segment that has been performing really well is that of construction cranes that have been growing rapidly in recent times is that of crawler cranes. Industry analysts estimate the market to be growing at a rate of 20%-25% & predicted to double within five years. It is not surprising that a bevy of leading global, as well as domestic players are now offering crawler cranes in India. Some of the prominent names include, Manitowoc, Sany, Liebherr, Kobelco, terex Cranes, ACE, ECEL, Fushun , etc,who offer a wide variety of models in the country. Along with the spurt in thermal & nuclear power projects, another factor that has been driving the demand for crawler cranes has been the demand from the wind energy sector. Demand for wind power in India is still lagging behind other countries, as there is greater focus on more traditional methods of power generation. It is exp. that demand for crawler cranes in wind power applications to increase in the coming years. The power sector, with nuclear energy & wind energy projects, are exp. to give fillip to the growth of this segment in the coming few years. Among all the diff. types of construction equip., if there was one that has now become a common sight across city skylines, it has to be that of the tower cranes. The demand for tower cranes has been fuelled by virtually every sector including, aviation, metro rail, power & realty projects, especially high-rise projects. Apart from residential & commercial high-rise buildings in urban environs, the use of tower cranes is also increasing in the sphere of power projects, where erection of structural frame work & steel structures, with respect to tall RCC chimneys is another area where they play a key role. In fact, they have along with earthmoving equip.; become a common feature in almost every construction site in India. The market size for tower cranes is est. to be around 1000 units/ year, which is ||www.constructionmirror.com||

only a miniscule figure when compared to a country like China for e.g., but gives an idea about the huge potential of the Indian market. The tower crane market has witnessed a perceptible shift & the trend is now towards the use of automated lifting solutions. While earlier it was felt that the human element was the all imp. role in lifting equip., the situation has quite literally changed on its head now. The change in the trend can also be attributed to the increasing no. of high-rise projects, for they demand tower cranes that can be remotely operated , since most of them are located in metros , where space is a major issue dictating the use of cranes. In the wake of unprecedented growth in infra. development activities, the construction crane market could be witnessing its best phase in the next five years. With projects becoming bigger & timelines getting shorter, there has also been a corresponding greater emphasis on factors such as safety & up time. With competition intensifying manufacturers are exp. to increasingly rely on tech. to give them the edge over competitors. Spurt in automated lifting solutions is a good e.g. of competition leading to product innovations. Perceptible shift in buyer behaviour has meant that manufacturers are gearing themselves for offering value added propositions in the form of training & prompt aftersales support services. The market after a period of sustained growth, followed by a lull for a few years, has rebounded & is exp. to reach a consolidation phase in the next few years. Excon 2011 is exp. to offer a peep into the future trends of the construction crane market in India, with several new models, from almost every leading global player, on display.

Market is an attractive yet challenging prospect

Manufacturers from outside India are making forays into a market traditionally dominated by a particular type of pick & carry crane. Times are changing & opportunity is rife. Although it will be some time before the pick & carry crane is eclipsed as the most common type in India, the market is moving slowly towards models found in foreign ||www.constructionmirror.com||

markets. There is an increasing req. for a broader range of higher lifting capacity, quality products, with long life expectancy & comprehensive after sales service. With increased investments in infra. projects & entry of global players in construction & project execution, safety norms are now of the utmost importance & becoming more & more stringent. As a result the market is moving towards larger capacity cranes within pick & carry segment - from 8-10 T class to 12-15 T - as these offer more stability in material handling. Customer’s are now looking for safe load indicators for increased safety. There is also a trend towards articulated cranes in the Indian market. In India there are varied customer types, in terms of application, features required by them in machines & their business size. Products available in the market are tailor made for a particular customer base. The cost sensitive Customer’s may prefer the low cost equip., without many features that have to do with safety & long term quality. A major challenge for players is to educate the Customer’s on the importance of quality & safety. When it comes to other types of mobile cranes in India, there has been a marked increase in interest but a sig. drop in rental rates over the last couple of years - partly due to intense competition & the large quantity of machines flooding the market. There are too many people with crawler cranes & the rates have come down substantially. Situation is partly caused, by the no. of cranes imported from neighbouring China, thanks to their continually expanding ranges. Customer’s are now demanding free transport & delivery but he sees a positive outcome. The market is strong & there has been tremendous growth in the population of cranes in the last few years. Although this has led to an increased supply & a drop in prices it has allowed newer clients access to cranes for their projects. Now, a client who would not use a large machine in the past due to price constraints is using such machines to improve their cycle time. These recent circumstances are likely to become a long term trend. Overall, there will be more competition

due to the flooding of the market from older cranes from all over the world. There will be a marked difference between operators’ execution style with premium clients sticking with suppliers who maintain the machines & also provide engineering back up. India still tends to be a niche market for a wide variety of cranes products. However, in view of the increasing no. of govt. supported infra. projects currently underway, the future trend looks very positive. The biggest demand is for mobile cranes, particularly crawlers in the 600-1,000 T capacity range, as well as 20-64 T capacity tower cranes. It is no longer just about price. Many Customer’s want to know about the lifecycle cost, fuel economy, ease of maintenance, customer support & a host of other factors. In terms of Customer’s in India, they generally like cranes that are easy to operate. In more rural areas, the demand is for cranes that are easy to maintain. Rough terrain mobile cranes from Grove are very popular in India, they are very straightforward to own & operate. In terms of size, India is still relatively small but the key is that it is growing & the outlook for the next 10 to 15 years in this country is very strong. The increasing & rapid development of the economy in India in recent years is amazing & hope the growth will continue for years. India & China are the only 2 major economies still growing rapidly, at a time when the majority of developed markets are struggling to come out of recession. Nevertheless, the Indian economy passed through difficult times in the last fiscal year. The first challenge for the Indian govt. is to get back to 9% GDP growth, & then push on to sustain growth above 10%. India, which increased its share of global construction equip. sales will account for at least 7% of world demand in the next five years. The market will be dominated by the following six products, continues Off Highway Research: backhoe loaders, crawler excavators, mobile cranes, compaction equip., wheeled loaders & mobile compressors.

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CONSTRUCTION MIR ROR

pecial Focus: Industrial Lubricants

CONSTRUCTION MIR ROR

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Industrial Lubricants Market: A Brief Review As growth in Asia slows down, India is the only bright prospect on the horizon. India is an imp. emerging n at i o n i n t h e region registering a high growth rate for over a decade now. Improving consumer spending, accelerating infra. development & stronger FDI inflows in India, is creating potential for a rapid growth in lubricant consumption. Poor air quality is forcing the GoI to tighten emission limits & improve fuel quality. This bodes well for lubricant quality improvement & increased use of synthetic lubricants. However, despite these positive factors, the Indian lubricants marketâ&#x20AC;&#x2122;s performance has been disappointing in the recent past. There is uncertainty on economic reforms & infra. development, crucial factors for demand growth. India occupies 5th position in the global lubricants market after US, China, Russia & Japan. Indian lubricants market which was a monopoly of public sector oil marketing CoS (OMCâ&#x20AC;&#x2122;s), has witnessed the entry of MNC & domestic private players post liberalization. Over the recent years, consumer awareness about usage of lubricants has improved leading to an increased demand for high performance products. Domestic lubricants industry is witnessing stiff competition among players leading to an overall shift in perception of lubricants ||www.constructionmirror.com||

market from a volume driven market to a value driven market. India is a net base oil deficit market & many additives used in lubricants are mostly imported. Volume consumption of lubricants in India has consistently declined over past few years as a result of improving lubricant & engine quality. Lubricants usage can be divided in to Automotive & Industrial segments. Demand for automotive lubricants in India is driven by growth in vehicle population & consumption of industrial lubricants is highly correlated with IIP. Automotive lubricants typically are higher margin products compared to industrial lubricants. Majority of automotive lubricants demand is derived from commercial vehicles & tractors, largely dominated by diesel engines. Process oils are the biggest contributor within industrial lubes. In the Indian market, lubricants are sold broadly through three channels- Original Equipment Manufacturers (OEMs), petrol pumps & bazaar/retail trade. Bazaar trade is the most profitable amongst the distribution channels & consists of spare part shops, dedicated lubricant dealers, mechanic workshops & service centers. Key drivers in lubricant market in India Untapped rural markets

Bio-based lubricants

Changes in engine technology

Increasing consumer awareness

Innovation focus on energy efficiency

The lubricants industry in India is dominated by national oil CoS namely IOC, BPCL & HPCL that account for almost half of market share. Rest of the market includes private multinationals like Shell, Exxon Mobil, Total & numerous smaller & loyal players. Based on application, lubricants are broadly classified as automotive lubricants & industrial lubricants. Engine oil, gear oil, greases & hydraulic & transmission fluid are the products under || FEBRUARY 2018 ||

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pecial Focus: Industrial Lubricants

automotive lubricant segment. Industrial lubricants comprise process oil, general industrial oil, metalworking fluids, industrial engine oil & greases Lubricant consumption in India stood at around 2.9 million MT during 2013-14, registering a healthy growth rate of 7.6% during 2008-13; the market was valued at around INR 260 bn. Automotive lubricants account for around 47% of the lubricant usage in India; industrial lubes & process oils together account for the rest. Original equipment manufacturers (OEM), petrol pumps & retail trade are major channels in the domestic automotive lubricants market. Petrol pumps & retail trade account for around 90% of the total automotive lubricants sale, of which retail trade accounts for a major share of around 74%. Retail trade comprising wholesale distributors, auto spare shops, service centres, lube oil shop & s u p e r m a r ke t s i s considered a profitable model among the distribution channels C o r e industrial sectors l i k e

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cement, coal, steel, engineering, sugar, marine, defense, railways, fertilizer are some of the major end-users of industrial lubricant. Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd., & Bharat Petroleum Corporation Ltd. are the three leading PSU in lubricants sector who account for around 60% of the lubricants market. Recently, Gulf Petrochem Group has planned to invest INR 5 bn in Indian lubricants market including setting up two fuel storage terminal with a capacity of up to 600,000 cubic metres. One of the essentials in lubricant science is world-class technology. Lubricant technology is driven by the changing needs of the customers & stakeholders. Different models will require different types of advance technology lubricants as stress factor will vary from model to model. The demand from OEMs & end customers for better quality lubricants with longer life, leads to technology developments in lubricants industry. Engineering technology has improved significantly in the past few years with a corresponding impact on the improvement of lubricant quality. Improving engine & lubricant technology has resulted in the decline in the lube for fuel ratio. In India, improving lubricant technology has progressively increased the drain life of lubricants. As industry faces the challenges of lower production, a key requirement is to lower the operating costs & total maintenance costs. Hence, we see more rapid adoption of leading edge lubricants that provide energy efficiency benefits & lowers the total maintenance costs.

Slow Growth Expected

Overall lubricant consumption in India is projected to grow at an annual rate of 2.5% over the next 5 years. It is expected that the consumer segment to grow the fastest at a projected 6.6% per year, while the commercial & industrial lubricant segments will exhibit a moderate growth of 2.3 & 1.6% per year, respectively. In general, overall subdued economic growth of the Indian economy will continue to affect the growth of commercial automotive lubricants, although economic growth is expected to pick up after 2017. Ranking 3rd after the US & China, India remains one of the most imp. lubricant markets. Historically, India has been one of the fastest growing major economies. However, since 2010, the economic growth rate has successively dropped. Automobile production in India has experienced a strong growth. Like most Asian countries, India has a large percentage of 2-wheelers. India is the worldâ&#x20AC;&#x2122;s 2nd largest manufacturer of 2-wheelers. Consequently, motorcycle oil is the largest product category in the consumer automotive lubricants segment, with about 60% of the consumer automotive lubricants. Overall, consumer automotive lubricants account for 13% of the total market. The market for commercial automotive lubricants declined in 2013 due to the retarded economic growth, as well as its impact on such sectors

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CONSTRUCTION MIR ROR

pecial Focus: Industrial Lubricants

as logistics, construction, mining & agriculture. In India, more than half of the commercial automotive lubricant market is controlled by nationalized oil CoS. Industrial lubricants is the largest market segment in India, with more than 54% of the total market. Power generation, chemicals, automotive & other manufacturing, railways, marine, & metals are the leading end-user industries, accounting for nearly 80% of industrial lubricant consumption. India is a huge market for process oils as well, with 53% of the overall industrial lubricant demand. Rapid expansion of the power generation & distribution infra. has also created a strong demand for transformer oils in India. Industrial engine oils (including marine & railroad), metalworking fluids & hydraulic fluids are other imp. product categories. The per capita lubricant consumption in India is quite low compared to developed countries. However, a comparison with other developing countries like China & Indonesia reveals significant potential in India for growth in lubricant consumption.

Marketing Challenges

Importance of oil in the engine is just like blood in the body. Blood flows through all the veins to vital organs to keep them healthy & alive, similar is the function of lubricating oil in the

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engine. Across the world, lubricant oil is primarily used for cooling automobile engine, marine engine & for industrial purposes. Globally, more than 50% of the total lubricant volume is being used for automobile, around 40% is for industrial purpose & rest is for marine industry. Shell, ExxonMobil, BP - Castrol, Sinopec, Chevron â&#x20AC;&#x201C; Texaco, Total, Lukoil, Fuchs, Nippon Oil & Valvoline are the major global players in lubricant manufacturing industry. In the coming future global demand of lubricant will remain stagnated or grow at a very low rate due to following reasons: Low emission norms for industries & automobile sector; Advancement in engine oil technology; Use of high performance oil; Saturation in automobile sector for developed countries. Currently, USA is the largest consumer of lubricant oil across the world. China & India comes at second & third position respectively. But, in the next 7-8 years china will overtake USA in terms lubricant consumption. Reason behind this is that US automobile sector has reached at its saturation level, while the developing countries like India & China, it is still growing. The consumption pattern In Indian lubricant oil industry is similar to world lube industry. Majority of lubricant is being consumed by automobile sector (55%), rest is being used for Industrial purpose & marine industry. Major

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players of the Indian lubricant oil industry are IOCL - Servo, BPCL-MAK, HPCL & Castrol. These four players approximately hold 80% of the market share in Indian lubricant industry. IOCL is the market leader in the overall lubricants industry, with its market share at 40%. However, Castrol dominates the automotive lubricant oil market, with 19% share of the bazzar segment, followed by IOCL, which has 14% share of the bazzar segment according to industry estimates. Private players like Castrol, Shell, Gulf Oil, etc. account for 75% of the bazzar segment while the oil PSUs account for 25%. In 1993 lubricant industry in India got liberalized, which attracted the private players to enter into the Indian lube market. Before liberalization auto lube oil in India was sold mainly through petrol filling stations. Decline in margin due to rising base oil (main raw material for lubricating oil production) prices, increasing competition due to large number of private players, very low consumer awareness about the brands & quality & too much price sensitivity has led Indian lube oil industry to a major marketing challenge for the CoS involved with it. For understanding the marketing issues pertaining to the lubricating oil market in India let us first understand the overall common flow followed by almost all CoS to sell their product into the market. ||www.constructionmirror.com||

Company Blending Plant Carrying and Forwarding agents Distributor wholesalers

Dealers Consumers

Primary sale Secondary Sale

Fleet Owners/ Bulk buyers

Mechanics

Tertiary sale

Blending plant is the place where base oil is processed; additives are mixed & converted into final product i.e. lubricating oil. These final products are move towards carrying & forwarding agents i.e. stock points or depots, as the name suggests these C&F agents are third party & they provide the infra. support for storing of goods & in turn earn commission. On an average 37-45 stock points or depots are there for any lube oil company in India. That is on an average 10-12 distributors order from a single C&F agent or depot, thus they are geographically positioned accordingly. Primary sale is the C&Fs sale to Distributors, Secondary sale is the Distributors sale to Dealers & Tertiary sale is Dealers sale to consumers. Thus in this flow, three of the imp. stakeholders for lube oil sales are distributors, mechanics & the DSRs (Distributors Sales Representative) employed by distributors. Why each of them is imp. is explained one by one. First let us discuss about the distributors, an imp. channel partner for sales of any product. They can greatly affect the sales in a market that is driven on credit dealings. The greater the credit period he can offer the more the trust the mechanics/ dealers have on him. Robustness of distributor plays a major role. In case of lubricant oils following are some of the imp. roles of a distributor: Market Information; Buying & Assortment Building; Selling & promotion; Customer Relations; Risk Bearing; Branding; Financing ,Warehousing & Transporting; Management of DSRs. Another major stakeholder that affects sale in lube oil is mechanic. End users are mostly less or not aware about the quality, brand & other technical factors associated with the product. If it is a commodity like toothpaste or a shampoo than consumer can differentiate but for the product that is meant for their vehicle they usually ||www.constructionmirror.com||

follow the suggestions of their mechanic. Mechanic is also a person who is less aware about technicalities & works with different myths spread around in market & spreads that to end customers. For a mechanic earning some extra money on filling a pack of engine oil of a particular brand which gives him good return will be lucrative business & thus comes the role of sales & marketing at the CoS end. Company which is able to come up with good promotional offer for their dealers & mechanics wins the battle. It is sometimes distributor also who come up with offers in order to increase their sales volume & get good return. But, company can bear the cost of promotional cost all the time so comes the role of advertising & branding. DSR that is Distributors Sales Representative, these are the people who become the face of the company in terms of sales to dealers & mechanics. Distributor must be smart enough to appoint them wisely & manage them properly. They must be given proper route plans & soft skill training as sweetness & calmness in their nature can earn more sales volume for the company. They must strike the balance between distributors & CoS reputation in market, though they are paid by distributor but they are liable towards the brand image of company. Some of the major problems faced overall in the market are Delivery time from distributor to dealer, tracking of the scheme issued to dealers or mechanics, proper use of branding materials. So these are the things to be taken care by DSR. To conclude, the major parameters are margin, schemes, promotional activities, & branding of product. In India a product can‘t be placed in the market on the basis of brand only, but it should match the spending power of customers. An industry where switching cost is negligible, person relationship plays an imp. role to capture maximum market share. Regular schemes have become part of the lube market. Not only product, but also superior service differentiates one Co. from another. An effective distribution channel as well as hard working sales team drives a company on front foot. A battery-

powered vehicle doesn’t have internal combustion engine, which is the major component that requires lubrication. However, these vehicles will continue to have gearboxes, axles, wheel hubs & other lubricant & grease points, although with different lubrication challenges. Talking about long-term challenges, including electric cars, although the role of lubricants won’t reduce, different lubrication challenges will emerge. Transition to electric vehicles will need CoS to focus on transmission oil, brake fuels & other oils, & not necessarily engine oil. The deadline for BS-VI roll-out is 2020, which is not very far away. Automakers either ask lubricant CoS to present products to them as per their requirements, or seek a partnership model, where they work with lubricant CoS to develop a specific product for a new car or an engine they are developing. Apart from the engine, lubricants are used in manual & automatic transmissions, wheel hubs & many other underchassis applications. Some of these, like engine oil & transmission oil, require periodic changes, whereas many others, especially greases, are filled for life. The quantity of oil consumed depends on two things. First, the oil sump capacity, & second, the oil drain interval; both of which are design considerations for passenger car OEMs. If we talk about the internal combustion engine, a diesel engine application is more challenging compared to a gasoline engine in terms of contamination due to the nature of the fuel. However, lubricant technology has advanced to a level where drain intervals & hence oil consumption is optimised to provide the most effective lubrication for a car. Between diesel & petrol, there is no significant difference in lubricant consumption over the lifetime of a vehicle. A battery-powered car consumes a lower amount of lubricants during its life-cycle compared to a typical internal combustion engine car. With the transition to electric vehicles, while the role of lubricants can’t be said to decline, but it will mould itself. It will come down to transmission oil, brake fuels

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CONSTRUCTION MIR ROR

pecial Focus: Industrial Lubricants

& other oils, & not necessarily engine oil. Also, more electric vehicles on the road will increase the consumption of electricity, which, in turn, increases the consumption of industrial lubricants. An electric car doesn’t have the internal combustion engine, which is the major component that requires lubrication. However, these vehicles will continue to have gearboxes, axles, wheel hubs & other lubricant & grease points, although with slightly different lubrication challenges. Solid lubricants, per se, have limited applications. Solid lubricants are also used as friction modifier additives in engine oils with extremely low viscosities to protection against wear, while contributing to better fuel economy. In the long run, GST will benefit the industry. With GST, the movement of goods will be faster, easier & smoother, & can cut down on storage locations & logistics value involved.

Metalworking lubricants & coolants industry Tougher metals, more advanced, severe metal working processes & the ongoing drive by machine shops to increase productivity & reduce costs has seen the importance of cutting fluids rise up in the agenda of metal working operators in recent years. The metalworking

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industry continues to go green as more shops adopt vegetable-based coolants & implement recycling programs. To reduce overhead costs, more shops are investigating in new ways to reuse their coolant rather than dispose it, including new coolant recycling programs that can reduce coolant waste & increase sump life. However, with a multitude of factors including the operating environment, machining application & machined metal type, all having an impact on a cutting fluid, one cutting fluid cannot provide the lubrication, cooling & protection required in each & every operation. As such, leading lubricant & metal working fluid providers such as Mobil Industrial Lubricants have developed a range of fluids to meet many of the varied machining operations in machine shops today. There are two classes of cutting fluids: Water Soluble (Aqueous / Water Miscible) & Neat (Straight). While water soluble cutting fluids are used in a number of machining operations & are provided in a concentrate form & must be diluted with water at the machine shop site before use. Neat cutting oils are not mixed with water & are provided in packs for immediate use. They are used in applications which are beyond the typical performance profile of water soluble coolants, such as tapping & threading of high alloy steels

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Whether a manufacturing company specialises in producing nuts & bolts, complex gear sets or high precision valves, keeping its equipment running efficiently is the key to profitability. Lubrication plays an integral role in reducing friction between critical rotating or moving machine tool components, dissipates heat which can translate into equipment durability & availability. To help ensure that the machine tool runs smoothly, it is important to choose a combination of high-quality lubricants – slideway oils, water soluble cutting fluids & neat cutting oils. As a company that helped pioneer synthetic lubricant technology, ExxonMobil devotes significant resources to product research & development. A balanced formulation approach - comprehensive process enables to develop lubricants that deliver exceptional performance across all critical areas for each application – such as oxidative stability, component wear protection, corrosion control, filterability, shear stability & extreme temperature performance. New challenges continue to be addressed with new products & services. With every new technological development there will be continuous challenges in the industry. OEM or Equipment Builder (EB) recommendations / approvals are a key factor when industrial organisations

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select lubricants for their machinery. Working closely with EBs to elevate awareness & knowledge of metal working fluid technology including health & safety aspects of usage, at the same time delivering improved productivity of the equipment on a shop floor is very important since they help one understand equipment trends as well as current & future lubricant requirements.

Coolants & lubricants

In India, the lubricant industry is on a growth path. The industry has been growing considerably above industrial output in the last few years. The industrial lubricant market in India has grown significantly owing to strong growth through green field projects, capacity expansion & upgrading to new technology in key sectors like Energy, Manufacturing, Process, & Metals in the last decade & an increasing number of customers are demanding superior performing, high technology products to deliver sustainability benefits. Technology is evolving & new energy efficient techâ&#x20AC;&#x2122;s are contributing to reducing energy demand. Poorly formulated slideway oils may not separate readily from aqueous coolants. This can result in the formation of â&#x20AC;&#x2DC;tramp oilâ&#x20AC;&#x2122; which can compromise the effectiveness of the coolant by

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shortening its effective life & adversely altering cutting performance. Tramp oil can also lead to bacterial growth resulting in foul odour, short service life & potential health & safety concerns. To identify high performance slideway oil, maintenance professionals seek out products with outstanding frictional properties & Exceptional coolant separability. To optimise productivity it is very important to choose technologyleading aqueous coolants. The highest performing coolants can provide reduced maintenance requirements by resisting biological attack which helps to extend batch life. Ease of maintenance needs to be balanced with good machining performance as well as protecting the machine tools & work pieces from corrosion & sticky deposits. In addition, the fluids should meet the latest Health & Safety regulations & be easy to monitor & maintain in service. Collectively, these properties will help deliver long service life, excellent cutting performance & reduced maintenance downtime.

Key growth drivers

The Indian lubricants industry is one of the fastest growing lubricant industries in the world. The key growth drivers of the lubricant industry in India are: Rising disposable incomes, soaring population of automobile users &

increased industrial activity will result in increased spending on lubricants in India. Industrial lubricants are majorly used in the core industrial sectors such as spamming cement, coal, steel, engineering, sugar, marine, defence, railways, power, surface transport, fertiliser & others. Consummation of industrial lubricants is driven by growth in infrastructure investments, manufacturing, mining sector & increased manufacturing exports. Demand for high performance lubricants in industrial segment is driven by vitality of application which is used in critical applications such as compressors, textile machinery windmills, captive power plants & other such applications. Strong demand from power generation, automotive manufacturing sector, higher investment in infrastructure division & project execution by construction companies generate excellent demand in machinery manufacturing, metals & other core industrial segments. Trends shaping the Indian lubricants industry are: oil marketing companies are shifting focus to the untapped rural market; emergence of bio-based lubricants; changes in engine technology; OEMs introducing own brands; & focus on energy efficiency & total cost of ownership leading to adoption of more leading edge products & solutions.

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ost Event

Build & Construct Your Business To Unprecedented Altitudes, With A Platform That Reins Supreme: Constro International Fair 2018

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ABEC Exhibitions & Conferences Pvt. Ltd. & ITE proudly partnered with Pune Construction Engineering Research Foundation PCERF with a vision of taking the building and construction industry to greater heights, and organized Constro International Fair 2018 Pune, through the 18th to the 21st of January 2018 at the Agriculture College Ground in Pune. ‘‘Constro International Fair 2018 has unleashed multiple business opportunities to the participants as a result of the, shared know-how during the event. It has proved to be the information hub of rapid developments in the Future of the Building Industry and also a launch-pad for many new services and technologies in the Construction Industry. Constro 2018 has matched International benchmarks in terms of facilities offered, overall business and social ambiance. ‘’-Sumit Gandhi (Chairman & Managing Director ABEC Exhibitions & Conferences Pvt. Ltd)

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Constro International Fair, the flagship event of PCERF, started in the year 1985. The theme for this year, ‘Latest Trends in Building Services and Products – The Future of Buildings.’, propagated the relentless purpose to constantly evolve and celebrate innovation. Constro raised the bar by exhibiting global products, sharing tomorrow’s knowledge today, and showcasing ground-breaking advancements in the building and construction industry. The fair established itself as the most credited expo in the infrastructure & civil engineering industry in India, sprawled across an area of 21,078.00sq.m, with participation from more than 250 Exhibitors, attendance of over 97,578 visitors and more than 15,000 business delegates. It assimilated the finest global brands, government bodies, engineers, construction companies, developers, architects, and designers, on one platform to display and source

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products and services pragmatically. Constro 2018 hosted and promoted innovations and technology in the industry as well as created better networking opportunities among procurement companies and suppliers and enabled Industry exhibitors to showcase their extensive range and promotions. The Grand Inaugural Ceremony of the 15th edition of Constro International Fair 2018 at its home turf, Pune, set the tone for 4 power packed days to follow.The curtain raiser event took

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place on the 18th of January, 2018, at the Constro Auditorium at the lush Agricultural College Ground Pune. Keeping with tradition, the auspicious morning started off with the ribbon cutting ceremony by Chief Guest Shri. Atul Chordia, followed by the National anthem, soulful renditions of the Ganesh Vandana and Gurbani. Post the symbolic lighting of the lamp by all the dignitaries present, the emcee, none other than Ar. Mrinalini Sane, an Executive Committee Member of PCERF and the Convenor of the PCERF

Padmashree BG Shirke Vidyarthi Competition, introduced Chief Guest, Mr. Atul Chordia Chairman Panchshil Realty, Keynote Speaker Mr. Shantilal Kataria President CREDAI Maharashtra, and Guest of Honour Mr. R. S. Kulkarni leading HVACR Consultant. Directors of ABEC Exhibitions & Conferences Pvt. Ltd. Mr. Sumit Gandhi Chairman & Managing Director ABEC & Mr. Manish Gandhi COO & Executive Director ABEC along with Mr. Vishwas Lokare- Chairman Constro’18 & President, PCERF , Mr. Naren Kothari Vice President, PCERF , Mr. Sanjay Vaichal Vice President PCERF, Mr. Jaideep Raje Hon. Treasurer of PCERF who honored The Constro International Fair 2018 platform with their presence and partaking in our prestigious inaugural ceremony. , Ar. Shirish Kembhavi convener Newsletter Committee Constro 2018 as well as Er. Manoj Deshmukh convener Souvenir 2018 were felicitated during the function. Constro International Fair 2018 unleashed unparalleled business opportunities to all its exhibitors and has proved to be an informative hub of prompt developments in the industry as well as a launch-pad for new services and technologies in the construction sector. To sum up Constro 2018 in the words of -Vishwas Lokare (President Pcerf, Chairman – Constro ’18) “Constro is not an event, it’s a movement, a platform with the primary objective to exchange and share information on technocommercial advancements, industry trends and innovative concepts related to materials, machinery, methods, and projects and it abides by this core principle even in the 15th edition of Constro.”

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uest Article

echnological advancement is the need of every sector and this holds true for the Construction Equipment (CE) sector as well. While in the past decade, a lot of technological advancements have taken place in the CE segment in the country, yet there is a long way to go. Construction Equipment sector in India is growing and maturing along the way. Over the past two decades, the nature of work execution has moved increasingly from manual labour towards greater mechanization in India. KYB-Conmat Pvt. Ltd. has been a major contributor in this drive towards greater efficiency and productivity of resources in India. There are various advantages offered by technological advanced CE like; timely completion of projects, improves quality of work, cost savings and profitability, performs multiple tasks, reduces maintenance cost, and enhances brand value. Moreover, with the accelerating of the current momentum in delivering road projects, which the transport ministry has targeted Rs. 7 trillion road and highway projects, approved by the cabined during the new financial year, with an outlay for building an 83,677 km road network over the next five years declared by Union Minister Shri. Nitin Gadkari.

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“KYB-Conmat ’s hi-tech, higher capacity batching plant with support equipment which compiles tender specs contributes the most advanced offering in the road construction equipment segment which contains 90, 120, 160, 200 & 240 CuM per hour capacity batching plant. The uniqueness about this infra series batching plant is its In-Line configuration due to which very less foundation is required & twin shaft mixer technology, which is the latest technology in mixing, through which homogeneous mixing can be achieved in a very less time. It is a rugged, accurate, productive & dependable plant”. Mr Sailaj Verma, Sr.VP Sales said. The most striking feature of KYB-Conmat batching plant is its faster & easy erection at site. It has all welded frame structure & comes fully assembled from the factory in three parts. It can be installed with an ordinary “Pick & Carry” crane available locally. KYB-Conmat’s batching plant which is engineered to perfection requires minimum maintenance, assuring continuous performance. They have invested heavily in state-of-the-art design & development, which is not only efficient, but performs in tough conditions.

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eport

Sambandh-A journey from germination to blossoming in the quest of world class customer service

• Complete range of excavators &mining machines for Indian consumers • Unmatched reliability and uncompromised durability for 15 Years in India • Designed for better fuel efficiency, increased viability and unparalleled comfort • Supported by the world class R&D, best service network with over 50 touch points in India

LiuGong Facts

• Celebrating 10 years of setting up of its plant in India • Investment of more than $42 million in R&D in 2016 • 19 product lines from 20 manufacturing facilities worldwide

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LiuGong

Celebrates 15 Years

of Business Operation in India & 10th Anniversary of its India Plant LiuGong India, a subsidiary of Guangxi LiuGong Machinery–one of the world’s largest manufacturers of wheel loaders proudly announces completion of its 15 years business in India with a gala celebration for business partners, supporters and media. Committed to embrace the “Make in India” campaign by initiatives and new offerings to the Indian market, LiuGong machines are designed to meet any challenge, any day. This celebration is also part of LiuGong’s 60th Anniversary global tour which was announced last November. Mr. Wu Song, Managing Director, LiuGong India said on the occasion, “It has been an incredible journey and we are proud to celebrate memories, experiences & our successes. We express our gratitude to all our patrons for their continuous support & commitment which has helped us develop and evolve as market leaders in the construction equipment sector.”

To embrace the ‘Make in India’ campaign and generate better local employment opportunities, an additional investment of 5 Million USD, has been invested to enhance the production capacity at LiuGong’s factory in Pithampur. The Company’s manpower is likely to increase by 40% over the next 2-3 years; generating more manpower from Indian to support the motto of ‘Skill India Mission’. Like all LiuGong machines, LiuGong India’s machines are designed and tested to operate in the toughest conditions. The machines made in India are well tested for the local conditions. World class components are used in the equipment including engines, transmission axle, cylinders and control valves; from renowned manufacturers like Cummins, ZF & Kawasaki. LiuGong machines adopt proven technologies to thrive in the most rigorous conditions of India, making them - highly efficient, durable, simple to run, easy to service and cost-efficient. ||www.constructionmirror.com||

A LiuGong India Dealer Meeting Held on 24th January 2018 at its Facility – Pithampur, Indore (MP) Appendix: Key Milestones of LiuGong India

• 2002: India’s first purchase of LiuGong construction equipment. Fourteen units of wheel loaders were delivered to the iron ore mines at Goa. These machines have performed more than working 30,000 hours and are still working. • 2007: First 1,000 units of construction equipment were sold. LiuGong India Pvt. Ltd. (LIPL) was founded, corporate office is at New Delhi. • 2008: Foundation of Pithampur manufacturing plant was laid. The premises cover more than forty-four acres of land and has the capacity to manufacture 3,000 units of wheel loaders and motor graders annually. • 2009: Rolled out the first MADE IN INDIA wheel loader from the Pithampur factory. • 2011: Launched construction vehicles that adhered to the local government regulations– BS-III. • 2012: Expanded product line to include manufacturing of

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• •

• • •

LiuGong’s 414 motor grader. 2013: Introduced new variant in 3 tonne wheel loader 836 BS-III 2014: Created a new segment with 2 tonne wheel loader 818 BS-III 2016: Launched 922D heavy duty excavator. 2016: Launched next generation wheel loader 856H 2017: Launched all NEW 921D I excavator & 611 compactor

About LiuGong

For nearly 60 years, LiuGong Machinery Corporation has been a global leader in construction equipment manufacturing industry. As a global player, LiuGong has increased their presence to more than 137 countries with 20 manufacturing plants & 9 subsidiaries worldwide. LiuGong has joint ventures with both Cummins and ZF, who are the pioneers for manufacturing engines and transmission respectively. LiuGong has evolved to become one of the fastest growing, global, CE companies in the world offering a full line of extreme duty, intuitive machines for construction equipment owners constantly challenged

to do more with less. LiuGong delivers opportunity to its employees, quality products and services to its customers, financial success to its investors, and community support in the regions it serves. Among its latest innovations, LiuGong has launched the world’s first vertical lift wheel loader.

About LiuGong India

LiuGong India has its state of art manufacturing facility supported by a R&D Centre & Training Centre in Pithampur (Madhya Pradesh). Having more than 4,000 LiuGong machines working successfully, in road construction, mining, hydropower and pipe handling, for India’s most prestigious companies and having continuous repeat orders is a testament to the excellence of LiuGong’s products. With corporate offices at Delhi, Kolkata, and Chennai, 20 dealerships with more than 50 customer touch points across India including Nepal, Bhutan, Bangladesh & Sri Lanka, spare parts warehousing in Chennai & Indore and its manufacturing, R & D and training centers in Pithampur. LiuGong India is ready to ensure its customers are supported anywhere, anytime.

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uest Article

Shaping the Future Together The Indian subsidiary of global lifting systems Palfinger AG has been an outstanding contributor to the India Growth Story.

he Chennai based Palfinger Cranes India Private Limited is a wholly owned subsidiary of Palfinger AG, Austria. Palfinger AG established in 1932, has for many years been among the leading international manufacturers of hydraulic lifting systems in the line of commercial vehicles, ships and special utility vehicles. With headquarters in Salzburg, Austria, Palfinger has manufacturing and assembly sites in Europe, North/ South America, Asia and over 4,500 sales and service centres located in 130 countries across five continents. Innovation, internationalisation and flexibility are the strategic pillars of the company’s corporate strategy. Greater flexibility has enabled Palfinger to market development of any kind through fast adaption of resources and capacities thus ensuring its success even in times of high volatility. In line with this strategy, Palfinger today stands for innovative lifting solutions at the interfaces of the transport chain. Thanks to the commitment of its staff the company’s main guiding principle is to make customers throughout the world more successful with market know-how and technological skills.

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Palfinger is a technology leader and number one worldwide for loader cranes, EPSILON timber and recycling cranes, container handling systems and cranes in the offshore wind energy industry. Furthermore the company is one of the leading manufacturers of marine and offshore cranes as well as launch and recovery systems. In the highly advanced area of railway applications and bridge inspection, Palfinger is considered a market leader for his technological excellence. Products such as truck mounted forklifts (worldwide number two), tail lifts, access platforms, truck bodies and pick-up tail lifts complete the product portfolio. Palfinger’s 29th manufacturing facility was incorporated in the year 2008 in Chennai. However the products were present in India since year 2000 and supplied directly through Palfinger Asia Pacific and local dealership. The unit started production at its Chennai facility in July 2010 with 100 per cent localised Stiff Boom Cranes and has successfully launched two models in the market. As per the current capacity the facility can produce one stiff boom crane a day. Since then the company is

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continuously bearing the No 1 flag bearer in the Indian market. Its growth has been leveraged through over five decades of experience in developing, manufacturing and distributing innovative logistics solutions. With a dedicated manufacturing centre in India complete with R&D, product management and installation specialists providing complete technical solutions to clients, Palfinger is the only global company offering the widest product range which includes light duty telescopic Cranes (PC series), Medium and Heavy Duty Knuckle Boom Cranes (PK Series), Recycling & Forestry Cranes (EPSILON series), Stiff Boom Cranes, Aerial Work Platforms, Hook loaders, Tail lifts, Railway cranes and Bridge Inspection Units. Palfinger Cranes India Pvt Ltd offers the advantage of a large service team, a dedicated dealership network supported by specialists, readily available product stock with minimum lead time to delivery. These advantages clubbed with high quality product and manufacturing prowess clearly puts the company far ahead of the competition.

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ET Now Accorded Shriram Automall as "Best Employee Engagement Company in Service Sector" Shriram Automall India Limited, Country’s Most Trusted Service Provider For Exchange Of Pre-Owned Vehicles & Equipment foster a culture of communication which unite employees around the mission and business goals.

Key Highlights

• Shriram Automall won the award of Best Employee Engagement in Service Sector. • Shriram Automall received 7th Accolade of the FY2017-18

Shriram Automall India Limited (SAMIL) India’s Largest Service Provider for Exchange of Used Vehicles & Equipment has been recognized as the company having “Best Employee Engagement in Service Sector”, at Employee Engagement Leadership Awards 2018 organized by World HRD Congress & presented by ET Now at Taj Lands End, Mumbai. Employee Engagement Leadership Awards 2018 aims to recognize and honor esteemed industry companies which have played an essential role in boosting the employee engagement across various sectors as well as have shown the willingness to do distinctive work in their respective fields. Shriram Automall has been rightfully coveted the Best Employee Engagement company in Service Sector, as at SAMIL we feel that every employee contributes towards company success in one or the other way and that’s why the company takes care that all its employees and content both in terms of pay and peace of mind. “Shriram Automall since its inception in 2011 has been doing great work to continuously improve its employee satisfaction and engagement. We happy that all the efforts we put in are duly recognized by World HRD Congress and ET Now. This is a proud moment for all of us and we dedicate this award to our core strength we call the SAMILIANS who consider Shriram Automall as their extended

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family and give their 100% to take company towards New Success.” Said Mr. Sameer Malhotra, CEO Shriram Automall The management at SAMIL believes in connecting with its employees, to work closely towards their development both individually and in the organization. This is the 7th award in the Financial Year (FY) 2017-18, that company has received, which in itself represent how well developed Shriram Automall is from inside-out. Beginning from the hiring process to the increase in competency and the knowledge base of the company, SAMIL makes it presence visible. The initiative involves a scrutinized hiring process in which the company emphasizes on acquiring talent by bridging the gap between skill-sets possessed by human resources and requisites of the job position, through Traditional sources and Non-Traditional sources. Not just that, every new employee receives a warm welcome leading to a 5-Day Induction program. SAMIL also believes in offering an environment that recharges its employees, eventually making them perform their best. Regular acknowledgment through e-mails, newsletter and incentives motivates all SAMILIANS to take company towards new heights. Festive & Birthday celebrations, movie outings and rewarding its best performers are a routine at SAMIL.

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eport

Putzmeister Looks Back at an Eventful Year and Continues to Grow at A Steady Rate

he leading solution provider for pumping, mixing and placing concrete, mortar and industrial solids has once again proven to know the market req u i re me nts a n d res p o n d by delivering user friendly, environment conscious and economical features in their product range. Moreover the company closed on an eventful year by participating at Excon and presenting the right equipment for the south Indian clientele. The exhibition was very successful and Putzmeister closed its year with a very positive growth.

Stationary Concrete Pump, Truck Mounted Concrete Pump, Stationary Placing Boom, Mobile Line Concrete Pump, Batching Plant, Mortar and Underground Machines.

Faster turnaround time of housing projects, thanks to Putzmeister’s mortar equipment There were many activities launched by the company in 2017, but one of the most exciting one was the launch of Putzmeister’s plastering and screed machines like the MP 25, P 13 and Mixocrete. Due to the positive response in India, Putzmeister has achieved its initial sales target. The technology used in Putzmeister’s plastering machines results in a faster production of a high quality mix. Compared to manual labour, the work can be completed up to ten times faster. Considering the dynamics in affordable housing in India, the company is poised to excel in this segment.

Managing Director Mr. Wilfried Theissen holding his Excon welcome speech

Rocking Elephant Nights with over a 1000 guests enjoying the music by Putzmeister in-house Dj Pranav 86

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Adapting to digital and creating a over 40,000 business visitors and Putzmeister was able to capture modern look On a global level, Putzmeister subtly amended its logo and gave its elephant symbol a makeover. The modern and trendy new logo was designed in order to be applied to digital platforms and to portray one of Putzmeister’s main vision statements “Engineered for success”: wherein the company seeks to be the pioneer in all areas related to their reliability, quality and performance of products and services. Improving their image is just as important.

Putzmeister Discovery Days (PDDs) in Tier II and III cities

Putzmeister continued to welcome their clients and prospects in a very personal approach in order to support them with expert knowledge. PDDs travel from state to state and makes sure that the remotely located and highly astute tier II and III builders are targeted and well supported. According to the 2017 survey conducted with the attendees of PDDs, all respondents found the events very helpful in understanding the unique features of Putzmeister equipment. The company now targets another 30 PDD events all over India, including Nepal, Bhutan and Bangladesh.

EXCON 2017 – It’s all about being closer to the customers

The most anticipated moment of 2017 was the participation in the biggest construction event of the year, Excon. Putzmeister marked the occasion to celebrate its 10th anniversary with clients and partners, from the 12th to the 16th of December 2017 at the Bangalore International Exhibition Center, Bengaluru. Excon is south India’s largest and leading trade fair that represents all branches of the construction industry. Excon received ||www.constructionmirror.com||

over 10% of the footfall at their stall which is quite remarkable for the industry. This growing number of visitors at the Putzmeister stall reflects the expertise in qualitative equipment and service support that the company provides. The Putzmeister bestseller BSA 1407D received a lot of enquires followed by the Truck Mounted Concrete Pump, BSF 36-4 due to its special features such as the I frame concept, which offers improved torsional properties in comparison to the fixed frames, and the 4 arm boom with the Z-fold system which ensures a low unfolding height. In addition, the OSS System (One Sided Support System) allows the telescopic legs to be securely placed in minimal spaces between obstacles. The Batching plants MT 0.5 and MT 1.0 as well as the newly launched mortar machines saw the most bookings, and the orders for 2018 look very promising. The elephant nights are well known by now in the industry and it was not a surprise that over 1000 Putzmeister VIP guests found their way to the stall to enjoy and unwind from a hard working day. Putzmeister ’s most prestigious clients were celebrated with key handover ceremonies, delicious finger food, drinks and great entertainment during these nights

Giving back to society: Putzmeister’s involvement in corporate social responsibility The company desires to contribute to the society and support deserving, unique CSR projects. In 2017, Putzmeister along with the Museum of Goa and the Panchayat of Saligao, a village in North Goa, created an Awareness movement, starting with the Eco Art Exhibition “Carpet of

Joy”, which involved 1, 50,000 discarded plastic bottles, crafted to look like flowers and painted colourfully. The bottles formed a 2,000 m2 carpet on a field near the village. From March until May 2017, visitors from all over India were invited to see the impressive installation. The intention to raise awareness on pollution, anti-litter and the correct disposal of toxic garbage to assist in “Swachh Bharat”. The Sound of Joy was the closing Anti-Litter Festival with topmost Musicians and stalls with pioneers in the re-cycling, up-cycling, garbage treatment and many more, to help the common man understand the need to re-think. Furthermore Putzmeister supports over a 100 orphan children with a hands-on attitude near its head office based out of Goa by providing food, beds and other day to day requirements which every child deserves.

What the future holds

With the slogan of being “Closer to your business” Putzmeister India is on a fast pace track to build on the steady growth of the last 10 years and will continue to offer their ever growing customer base a sales and service network. In 2017 many new regional branches such as Jaipur and Ahmedabad were inaugurated. The company looks at an ambitious year 2018 where the major focus will lie on their customer needs; especially in customer centric service and in further building on their efficient supply of genuine parts. The product range in India now comprises not only of concrete pumping solutions but also of mortar, screed and underground equipment offered by a local expert team. Putzmeister is looking forward to this promising New Year.

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roduct Info

Supreme – People who know Plastics Best

n acknowledged leader of the Indian plastic industry, The Supreme Industries offers the most diversified portfolio of plastic products. In its journey of 75 years of excellence, Supreme has always strived to enrich millions of lives every day. With an annual production of over 3,50,000 tonnes of polymer, Supreme is India’s largest plastic processor. Its 25 state-of-the-art manufacturing plants, along with dynamic & robust R&D facility provide it cutting edge superiority, making it the leader of the Indian Plastic Industry. Supreme’s large portfolio includes Plastic Pipe Systems, Bath Fittings,

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Moulded Furniture, Performance Films, Industrial Moulded Products, Material Handling Products, Protective Packaging Products, Multilayered Cross Laminated Films and Composite LPG Cylinders. Plastic pipes and fittings form a key part of Supreme’s portfolio. This comprises of pipes and a vast spectrum of fittings totalling over 7500 diverse items. Supreme’s range of Piping system meets the varied requirements of irrigation, bore wells, potable water supply, plumbing, drainage, sewerage, rain water harvesting and water management. Whether it is above the ground & underground requirements

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of civil construction and infrastructure or agricultural applications like high pressure pipes, casing pipes for bore-well, column pipes for submersible pumps & water sprinklers - Supreme is the one- stop- shop for plastic piping products. Supreme offers various specialised products to construction and building industry. Right from portable water supply to underground drainage system everything is being taken care by these speciality products. Supreme’s Lifeline is one of the most sought after products used for hot and cold water supply. Supreme Siltank is a range of 4 layered insulated overhead water tanks & loft tanks. Company also deals in specialised drainage solutions with various product lines. Supreme Skyrise – a low noise SWR drainage system is specially designed for hotels, hospitals and hi rise buildings as silent pipes while Nu-drain & Eco drain pipes and Ultra manholes provide a complete solution for underground drainage and sewerage application. Double Wall corrugated pipes & multilayer PVC foam pipes are being introduced to take care of entire sanitation requirement. Latest additions are septic tanks and community toilets for rural sanitation which are in line with Government’s initiative to provide sanitation to all. ||www.constructionmirror.com||

Eaton Makes Your Home, Office and Factory Buildings Safer With electrification in full swing across India and a strong push by the Government on several progressive schemes and policies, the power sector is expected to continue on its growth journey. But in this quest it is pertinent to consider what matters the most in any sprint towards prosperity. What matters and needs protecting is often the same for everyone - human lives, property and assets. And this means, no matter how efficient and expansive progress becomes, when it comes to electricity – SAFETY should be the greatest priority.

The Hidden Hazzard of Electricity

Electrically-ignited fire pose a significant threat to life and property. Innumerable accidents that happen every year due to exposure to dangerous levels of electricity. The most common reason behind fatal incidents is coming in contact with live HT wire and many have lost their lives both at home as well as factories through accidental contact with a live wire. The condition worsens in heavy rains and floods current may transmit through water. Another major cause is short circuit in the building electric network leading to fire and severe damage to life and property. At homes especially, while we operate at 415V line voltage, the usage of heavy-duty appliances like air-conditioners, water heaters and electric motors make us equally prone to risk with currents as high as 500 mA which is fatal even in short exposure times. Presence of leakage currents, ground faults and unbalanced phase can bring damages of different intensity.

Electrical Safety Today

Electrical equipment like bus bars, links, transformer, motor, generator and capacitor banks are susceptible to failures like short circuits, overloads, earth fault, residual current and arc fault. Hence, it is necessary to protect them with switchgears such as relays, circuit breakers, contactors, residual current devices, sensors and monitoring devices. Most of the protection devices available today in market are equipped with the basic design and operational

Residual Current Devices ||www.constructionmirror.com||

principle. So, It is crucial to equip buildings and infrastructure with components that ensure the highest precision, reliability and safety. Investing in the latest advanced technologies with proven performances and high resolutional efficiency is the only way to ensure that human life, property and assists are out of harms way.

of 4 – 10kA. Sensitivity design is for AC & pulsating DC. The RCD is available in a digital version as well which is equipped with LED indication on status of leakage current and “monitoring” features that provide preventive information/ warning before RCD trips on leakage current; thereby reducing unwanted tripping.

Safe and Smart Power Management Distribution Boards Eaton’s aesthetically designed with Eaton As g l o b al te ch n o l o g y l e a d er i n power management solutions Eaton’s comprehensive range of efficient products and services can help make power across utility, commercial, industrial and residential infrastructure more safe and reliable. Eaton offers a range of smart connected switchgears that integrates with the Building Management System or DCIM software, and makes the whole process of managing the facilities easy and efficient. These include:

Miniature Circuit Breakers

Eaton’s Moeller brand of AC/ DC Miniature Circuit Breakers (MCB’s) are versatile and reliable MCB’s which are available in wide range of current ratings (0.5A – 125A; 10kA – 25kA) and trip curves (B,C,D, K, Z, X) and meet major global certifications and standards including BIS, IEC, CE etc. The MCB’s are equipped with industry leading features such as: unique color for each rating that enables easy identification; insulated shutters for safe & secure terminal connection; “true-contact position” indicator for safe operation; bi-connect terminals for ease of wiring and compatibility with a standard busbar which can be positioned either above or below

Residual Current Devices

Eaton’s Moeller brand of Residual Current Devices (RCD’s) is available in a full range for fault current/residual current and additional protection, suitable for residential and commercial use. The RCD’s are designed to BIS and global standards and are available in current ratings of 16A – 100A with tripping currents of 10, 30, 100, 300 & 500 mA and rated short circuit current strength

Distribution Boards

Distribution Boards (DB’s) are space-optimized sheet steel construction and meet all required application standards for commercial and residential applications. The DB’s are provided with comprehensive features including: Door-Earthing, Earth Bar/ Neutral Bar/ DIN Channel, adequate number of knockouts and detachable plates (of various sizes) and ample wiring space. The DB’s are available in a variety of customized configurations for 1-phase and 3-phase applications

Arc Fault Detection Device (AFDD+)

The Eaton AFDD+ incorporates the next

generation of detection technology and provides enhanced fire protection. It not only detects arc faults, but also incorporates leakage current, short-circuit and overload protection, to provide all-in-one protection for new-build or retrofit applications. The AFDD+ uses digital technology with embedded processing and smart evaluation of current signals, to provide sensitive detection of fault currents, combined with avoidance of nuisance tripping, by digitally monitoring the wire for specific frequencies that can indicate an arc fault. Its indicators display the status and detailed fault information when it trips due to a fault. This makes fault-finding easier and saves time. Eaton is responding to some of the most critical electrical power management challenges that the country faces today.

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Arc Fault Detection Device (AFDD+) CONSTRUCTION MIR ROR

eport

BUILD ROAD WITH QUALITY

he capability to develop the quality products is entirely credited to our facility at Plot No. 3 Kamalpur- Padhariya link road, Mehsana (Gujarat). We “Waken Multitech Pvt. Ltd..”, are engaged in Design, Development, Manufacturing, Marketing & Servicing a complete range of Asphalt Paver finisher, Wet Mix Paver finisher, Hyd. Broomer, Mech. Broomer, Bitumen Pressure Distributor, and all type of fabrication work as per requirement etc

Our Infrastructure

We have a large manufacturing unit that sprawls over a wide area of land. The entire unit is well-facilitated with advanced technology and equipment in order to assemble the best quality machines for our valuable clients. This unit is operated by our team of experienced professionals that enable us to meet the bulk and urgent requirements of our esteemed clients within a promised time-frame. Moreover, in order to enhance our production capacity, we regularly upgrade our manufacturing unit as per the latest developments and technology. Purpose To be a leader in the road construction industry by providing enhanced services, relationship and profitability. Vision To provide quality services that exceeds the expectations of our esteemed customers. Mission statement To build long term relationships with our customers and clients and provide exceptional customer services by pursuing business through innovation and advanced technology. Core values We believe in treating our customers with respect and faith. • We grow through creativity, invention and innovation. • We integrate honesty, integrity and business ethics into all aspects of our business functioning. Goals Regional expansion in the field of road construction industry and develop a strong base of key customers. • Increase the assets and investments of the company to support the development of services. • To build good reputation in the field of road construction industry and become a key player in the industry.

WE ARE LAUNCHING OUR NEW PRODUCT “WAKEN SENSOR PAVER FINISHER” SHORTLY… 90

CONSTRUCTION MIR ROR

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Hall 4, Bombay Exhibition Centre, Mumbai, India

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CONSTRUCTION MIR ROR

roduct Info

Punture Proof Tyres for Severe Duty Applications

Tyres are the only connect between the vehicle and the terrain hence ensuring that tyres are reliable, safe, performance worthy anytime & every time,is critical specially for severe duty applications such as construction, industrial plant, mining, recycling, scrap handling etc. Besides, as tyres represent the highest operating cost after fuel, understanding tyre related global best practices & emerging concepts is essential. We wish to introduce and explain to the readerscontemporary punctureprooftyres&technologies that reduce TCO (total cost of ownership) & CPH (cost per hour).

Semi Solid Industrial Tyres:

Developed specifically to address the problems of frequent punctures and fast wear encountered by industrialvehicles/ equipment used in demanding service environmentsand difficult underfoot conditions. These semi-solid tyres are airless thus puncture proof, have an extra deep tread for long, uninterrupted

CONSTRUCTION MIR ROR

service, with specially designed sidewall apertures to provide shock absorption & ride comfort. These are available in a range of patterns to suit various operating conditions and supplied as ready to fit tyre & wheel assemblies for easy replacement.

Product Features& benefits:

• Puncture Proof • Zero Downtime • High Safety - no danger from blowouts • Long Life– 4-5 times that of pneumatic tyres Semi-solid tyres are suitablefor industrialequipment with a maximum operating speed of 25 Km/hr, such as: • Aerial Work Platforms such as Manlifts, Boom lifts & Scissor Lifts • Back Hoe Loaders • Skid Steer Loaders • Telehandlers • Wheel Loaders

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PU Foam Filled Tyres: Tyre Filling isa process in which a pneumatic tyre is injected & pressurized with a special 2 component urethane polymer in a precise proportion using a special metering pump. The polyurethane cures into a soft, resilient, synthetic rubber core replacing the air in the tyre. The resultant filled tyre is thus rendered puncture proof andmaintainsthe required pressure throughout its service life.PU Filled tyreshave a full footprint & are capable of carrying their rated load at all times. Thesoft core is designed to provide a ride similar to air filled pneumatic tyres. Product Features & benefits:

• Puncture Proof&Maintenance Free • Enhanced Man & Machine Safety • Better Ballast in overload conditions • Extended Limp-in Capability Suitable for vehicles with a maximum operating speed of 90 Km/hr& Industrial equipment for which semi- solid tyres are not available Typical applications: • Access Equipment • Defence& Paramilitary • Port &Harbour • Open Cast Mining&Quarrying • Steel Mills • Underground Mining

Semi-Solid Tyres&PU FilledTyres offer the following long term benefits: 1. ZeroTyreMaintenance: No punctures andelimination of periodic tyre pressure checks 2. Lower Operating Costs:Direct Puncture Costs &puncture-related costs such as machine downtime, operator idle time and operational delays are automatically eliminated. While Semi-Solid Tyres cost about 3 times the price of pneumatic tyres, it is important to note that they are puncture-proof and their life is four to five times that of pneumatic tyres thus offer a lower CPH. 3. User& Equipment Safety: a. Semi-Solid Tyres/ PU Filled Tyres significantly improve occupational safety as there is no possibility of

tyre blowout related accidents 4. Maintenance of Operational Tempo: The elimination of punctures allows sustained, continuous use of the equipment in any operating environment. Tyre Damage does not cause delays or stoppages 5. Damage Resistance& All-Terrain Utility: Abrasion & cuts do not affect structural properties and stability of the tyre, thus offering a high degree of failure-resistance in severe service conditions 6. Stability: The added weight augments balance & ballast properties. This provides stability when negotiating gradients and uneven terrain 7. Ease of Installation:Semi-Solid Tyres are supplied as ready to fit

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Tyre&Wheel Assembles. No special mounting equipment is required and the entire assembly can be hand mounted in a few minutes 8. Inventory Management: Fewer replacements mean that costs associated with re-purchase, downtime, inventory and repair are significantly reduced Ideation to implementation: Trident has developed application specific, outcome orientated products and solutions to assist machine owners & operators get the best out of their equipment in the most demanding conditions. Our products are distributed in over 25 countries which include the Americas, Europe, Africa, the Middle East and Asia-Pacific. For further information please visit www. trident-intl.com or write to ankit@ trident-intl.com.

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CONSTRUCTION MIR ROR

Tenders Ref. Number :

27687149

Ref. Number :

27737068

Ref. Number :

26935555

Requirement :

Construction of 500 Bedded Hospital Building Under Medical College, .

Requirement :

Document Fees :

INR 10,000

EMD :

INR 42,612,000

Tender Estimated Cost :

INR 4,261,130,083

Closing Date :

14/03/2018

Construction Of Access Controlled Nagpur Mumbai Super Communication Expressway Maharashtra Samruddhi Mahamarg In The State Of Maharashtra On Epc Mode For Package 3 Village Ashta To Village Wadhona Ramnath In District

Document Sale To :

14/03/2018

Document Fees :

INR 250,000

Construction of 4 Lane Flyovers from Old Pune Naka to Satrasta chowk till ROB at Vijayapura Road, including approach Ramps, Service Roads, Fo o t p at h o ve r RC C Rectangular Drain, Cycle Track over RCC Utility Ducts in Solapur city in Maharashtra on EPC.

Location :

Jharkhand - India

INR 26,650,000,000

Document Fees :

INR 50,000

Tender Estimated Cost :

EMD :

Closing Date :

28/03/2018

INR 42,300,000

Document Sale To :

Tender Estimated Cost :

INR 4,229,200,000

28/03/2018

Closing Date :

26/02/2018

Location :

Maharashtra - India

Location :

Maharashtra - India

Ref. Number :

27472221

Ref. Number :

27268315

Requirement :

4-Laning of Jangipur/ Omarpur Jn(km 244/60 of NH-34) at TalaiTeghari-Barjumla- LalgolaBhagwangola- Sabjikatra Section(Pkg-1) from km 0.00 to km 52.20 (Des. Len.52.20km) of Bharat Mala Project on HAM WB (Pkg-No.BM13/Pkg-1/0052.200)

Requirement :

Construction of 2nd Flyover (Lcw) Parallel To Existing Flyover In Kishanganj Town Starting From Km. 472.300 To Km. 475.480 Of Nh-31 (Total Length-3.180 Km.) In The State Of Bihar On Epc Mode.

Document Fees :

INR 20,000

EMD :

INR 14,600,000

Ref. Number :

27754258

Requirement :

S ett i n g u p p hys i ca l infrastructure for the National Institute of Communication Finance NICF at Ghitorni,

EMD :

INR 20,658,861

Tender Estimated Cost :

INR 20,658,861

Closing Date :

5/03/2018

Location :

Delhi - India

Ref. Number :

27327814

Requirement :

Rehabilitation and up gradation of NH-730 from km 484.000 to km 505.120 to two lane with paved shoulders and two lane paved shoulders with service road under EPC mode in the state. Rehabilitation and up gradation of NH-730 from km 537.000 to km 564.750 to two lane with paved shoulders and four lane divided carriageway with service road under EPC model in the state of uttar pradesh.

INR 230,000

EMD :

INR 220,700,000

Tender Estimated Cost :

INR 1,460,200,000

Tender Estimated Cost :

INR 22,066,100,000

Closing Date :

5/03/2018

Closing Date :

15/03/2018

Location :

Bihar - India

Location :

Delhi - India Ref. Number :

27503982

Requirement :

S u r v e y, design, construction, operation, maintenance & management of irrigation network to irrigate the culturabale command area of 131750 Ha area under RMC and LMC of parwan major multipurpose irrigation project.

Ref. Number :

27666296

Requirement :

Construction of formation for railway line between CH 51250 to 60351 of Wardha-Nanded new line including Earthwork, Side drain, Retaining wall, Tunnel, Major & Minor bridges , ROB etc

Tender Estimated Cost :

INR 216,980,000,000

Tender Estimated Cost :

INR 1,307,480,174

Tender Estimated Cost :

INR 16,815,100,000

Closing Date :

5/03/2018

Closing Date :

21/03/2018

Closing Date :

20/03/2018

Uttar Pradesh - India

Location :

Maharashtra - India

Location :

Rajasthan - India

Location :

Document Fees :

CONSTRUCTION MIR ROR

|| FEBRUARY 2018 ||

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Projects Corporations/ Associations/ Others | Jammukashmir - India | PID: 173293 Minister for Education Syed Mohammad Altaf Bukhari informed the Legislative Council that the government had approved upgrade of 200 middle schools (100 in each division) to the level of high school and 200 high schools (100 in each division) to the level of higher secondary school in the state

terms of concession agreement executed with the National Highways Authority of India (NHAI), by tying up of project finance of Rs 1,020 crore

Replying to a question of MLC Sajjad Ahmad Kichloo, the minister said the upgrade of these schools would be done as per the existing norms. “However, the government will not establish any college through upgrade of higher secondary schools,” he added

The total cost of the road project is Rs 1,526 crore, of which equity contribution/internal accrual by the company will be Rs 506 crore and the remaining amount of Rs 1,020 crore will be funded through project finance

He further said the government had approved opening of 17 new government degree colleges and priority would be given to the uncovered areas of the state. The government was working on finalisation of the locations subject to the availability of requisite land and feasibility of demand which included sufficient number of feeding higher secondary schools, he added Regarding the status of construction work on the Kishtwar campus of the University of Jammu, the minister said work was apace on the building for boys’ and girls’ hostels and development of basic infrastructure | Updated on: 13 - Feb - 2018 Central Government/Public Sector | Chhattisgarh - India | PID: 173345 The Ministry of Road Transport and Highways (MoRTH) has invited bids for upgradation of NH-130C in Chhattisgarh The work involves upgradation of NH-130C Madangmuda-Odisha/Chhattisgarh border from 168.520 km to 196.170 km (design 168.800 km to 196.400 km) to two-lane with paved shoulder with cement concrete configuration through engineering, procurement, construction (EPC) contract The estimated value of the project is Rs 130.14 crore, and the completion period is 24 months | Updated on: 15 - Feb - 2018 Central Government/Public Sector | Rajasthan India | PID: 173337 Kishangarh Gulabpura Tollway, a subsidiary and a special purpose vehicle (SPV) of IRB Infrastructure Developers, has attained financial closure in

The project envisages six-laning of Kishangarh to Gulabpura section of NH-79A and NH-79 in Rajasthan (length 90.000 km) on design, build, finance, operate and transfer DBFOT (toll) mode, under NHDP Phase-V Package-I

The average cost of debt for the project finance is around 10.20 percent per annum. A consortium of lenders comprising the State Bank of India -lead institution, Yes Bank, Bank of Maharashtra and IFCI have financed the road project The concession period of the project is 20 years, including construction period of 91 0 days. Kishangarh Gulabpura Tollway will get the tolling rights from the appointed date The company has offered premium of Rs 186.30 crore to the NHAI. The premium payment will commence after three years from the appointed date in terms of the concession agreement The SPV will soon commence construction and tolling of its project | Updated on: 14 - Feb - 2018 State Government | Tamil Nadu - India | PID: 173343 CHENNAI: Tamil Nadu Road Infrastructure Development Corporation (TNRIDC), a State highways wing, is to begin widening of the 16-km stretch between Oragadam and Walajabad into six lane highway The move aimed at catering to the increasing vehicular movement on the Oragadam industrial corridor and to ease congestion between Chennai and Kancheepuram stretch via Walajabad The road project estimated to cost Rs 163 crore is to widen the existing road into six lanes with 12.5 meter carriageway on both sides, besides 0.61 metre width median The existing road has a width of seven to nine metres from Oragadam to Walajabad passing through Mettupalayam, Thollazhi and Vellapakkam villages

The widening of stretch was part of upgrading 57 km long Oragadam Industrial Corridor Project road into six lanes, involving a 24 km road from Singaperumalkoil to Sriperumbudur of State highways 57 and 33.3 km road from Vandalur to Walajabad in State highways of 48 The Vandalur-Walajabad road handles about 40,000 vehicles a day. They are mostly heavy vehicles, including trucks, container trucks and multi-axle vehicles for loading and unloading goods. At night, these vehicles get piled up towards Walajabad road In addition to this, vehicular traffic between Kancheepuram and Chennai via Walajabad is on the increase Officials said the widening works would ease vehicular movement towards Kancheepuram. “Along the stretch, a few parcels of land need to be acquired for the widening and the government had already issued orders,” said an officer The TNRIDC had already floated tenders for the project. “On completion of paper work, orders would be issued to commence the work. It is likely to start by April, “ said an officer Of the 24-km road from S P Koil to Sriperumbudur, 22.5 km road had been widened into six lanes and works on the remaining stretch had been delayed due to issues in land acquisition. Up-gradation of 18 km road between Vandalur and Oragadam is nearing completion | Updated on: 14 - Feb - 2018 Central Government/Public Sector | Karnataka - India | PID: 173116 Nitin Gadkari, Minister for Road Transport & Highways, Shipping and Water Resources, River Development & Ganga Rejuvenation, will lay the foundation stone on 19 February 2018 for construction of the bridge to connect Kalasavalli and Ambaragodlu villages The 2.16 km long bridge across the Sharavati backwaters in Karnataka will offer easy access to the mainland for people of Karur and Barangi hoblis The Union government has sanctioned Rs 600 crore for the construction of the bridge. Besides, the Centre has provided Rs 500 crore for widening of the road connecting NH-206 in Sagar city with Baindur-Ranibennur National Highway | Updated on: 07 - Feb - 2018

Get access to 70 Lakh+ New Government & Private Tenders Annualy only on www.TenderTiger.com ProcureTiger helps buyers in automating his purchase & sales using tools like eRFQ, eTendering, Reverse Auction, Forward Auction, eAuction, Indent Management, Contract Management etc. Looking for Tenders Services? For more details please contact to +91-9825079334 or mail us on sales@TenderTiger.com OR register at www.TenderTiger.com

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CONSTRUCTION MIR ROR

2nd Buildings India 2018 Expo ......................................

Gandhi Automations Pvt. Ltd. ........................................

Ashirvad Pipes Pvt. Ltd. ...................................................

Jindal Aluminium Limited ...............................................

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

Mahindra Construction Equipment ...............................

Akona Engineering Pvt. Ltd. ...........................................

Po Tech India .....................................................................

Aggcon Equipments International Pvt. Ltd. ...............

Quest Informatics Private Limited ...............................

Ammann Apollo ..................................................................

Schwing Stetter

Automation Expo 2018 ....................................................

TATA Projects ....................................................................

IBC

Case Construction ..............................................................

IFC

Tyrexpo India 2018 ............................................................

Conquest Project Pvt. Ltd. ..............................................

UltraTech Cement Ltd. ..................................................... 53

............................................................... BC

IFAT India 2018 ................................................................... 91

Warehousing and Inventory Optimization .................

Finolex Industries Limited. ................................................ 11

WorldBuild India ..............................................................

76-77

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EVENT DIARY 22nd - 23rd February 2018 Casablanca - Morocco www.traiconevents.com

We also make leadership development accessible to those who aspire to have a better future by bridging traditional management with global values. In collaboration with various organizations, we forge new links to build an eco-system of technological and environmental leadership.

March 05–09 2018 New Delhi, India www.isgw.in

ISGF is a public private partnership initiative of Govt. of India with the mandate of accelerating smart grid deployments across the country. With 180+ members comprising of ministries, utilities, technology providers, academia and research, ISGF has evolved as a Think-Tank of global repute on Smart Energy and Smart Cities.

April 19-21 2018

October 15-17 2018

June 21-23 2018

Pragati Maidan, New Delhi

Bombay Exhibition Center, Mumbai www.ifat-india.com

www.tyrexpoindia.com

Increase your brand awareness and establish a foothold in the growing Automotive industry in India. Showcase your products, services and business solutions to over 3,500 industry players from the Tyres, Automotive Repair & Maintenance, and Tyre Accessories.

August 29 - 31 2018

31st oct, 1-3 Nov-2018

Pragati Maidan, New Delhi, India.

ECO Park, Rajarhat, Kolkata

www.mmmm-expo.com

www.immeindia.in

MMMM 2018 (Minerals, Metals, Metallurgy and Materials) is the 12th Edition in the series and is scheduled on 29 - 31 August, 2018 at Pragati Maidan, New Delhi, India.

November 21-22 2018

Pragati Maidan New Delhi

WorldBuild India an initiative by ITE - ABEC, the proud owners of the world’s largest portfolio of build and design shows, is positioned to witness the ever growing story towards the future of Indian construction. It offers an exhibition for the industry by the industry taking into consideration the current affairs, issues, trends and topics during the duration of the exhibition.

HAND TOOLS & FASTENER EXPO series carries forward the theme of ‘TOOLS FOR INDUSTRY’ from its previous successful edition, and it focus on the need for quality, special and high-end Hand Tools, Power Tools, Fasteners, and Specilty Tools

June 07-09 2018

Chennai Trade Center, Chennai www.roofindia.com

India is the 2nd fastest growing major economy in the world and inspite of the global economic scenario, the Building Construction & Infrastructure industry in India continues to boom.

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The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India, partnering industry, Government, and civil society,through advisory and consultative processes.

August 29-31 2018

Bombay Exhibition Center, Mumbai, India www.mmmm-expo.com

IFAT India is India’s leading environmental trade fair for water, sewage, refuse and recycling. The last event, covering approximately 5,000 sqm of exhibition space, attracted 136 exhibitors from 11 countries. More than 4,100 trade visitors benefited from this ideal platform for successful networking with representatives from the industries and municipal sectors.

HO CHI MINH CITY, VIETNAM www.concretevietnam.com

www.iihtexpo.com

THE CONCRETE EXPO VIETNAM is the only specialized Concrete event in Vietnam that brings together an international congregation of both upstream and downstream Cement & Concrete companies and also its supporting industries gathered in the Capital City of Hanoi, Vietnam to showcase the latest developments in the Cement& Concrete industry.

29th Aug to 1st Sep 2018

December 11-14, 2018

Bombay Exhibition Centre, Mumbai

Delhi

www.automationindiaexpo.com

After delivering a grand and successful event in 2017, Automation Expo, the largest Automation & Instrumentation exhibition in South-East Asia is all set to make a mark in 2018 as well. Under the valiant leadership of Dr. M. Arokiaswamy, IED Communications Ltd has been successfully hosting Automation Expo and achieving its objective to fuel innovation and growth since the past 14 years.

www.bcindia.com bauma CONEXPO INDIA is your community for doing business in India. Exhibitors, trade visitors and decision-makers meet here.

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