CM September 2018 Issue by Icon Media Group

EDITOR’S DESK Dear Reader!

Editor P. S. Syal Sub-Editor Roopal Chaurasia 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

In order to spur economic growth, the think-tank’s action plans would benefit all the states, working on a long term vision. The vision of ‘New India’ can only be realized through the combined efforts and cooperation of all the states. Infrastructure sectors like roads, transport and railways stepping towards right direction. The road transport and highways ministry is seeking a budgetary allocation of Rs 86,000 crore for the next fiscal year to fund its highway expansion plan in line with the government’s plans to boost public spending and create more construction sector jobs. This year the roads ministry has a target of constructing 10,000 km of highways Road construction pace has picked up this year to reach an all-time high of 27 km per day, construction clearances for several new projects have already been under process.

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Editor

INTERVIEW

CONTENTS

38 | Jasmeet Singh |

| Head Corporate Communications & Corporate Relations |

Cover Story

INTERVIEW

| JCB India Limited |

State of Architecture and Top Challenges Faced by Builders and Architects in India News Update

JSPL Bags 20 Per Cent of Rs 2,500 Crore to Supply Long rails for Railways Industry Focus

Pre Event

Building Machinery: Market Drivers Opportunities & Challenges Special Theme

Tenders

Projects

Advertisement Index

Event Diary

Govtâ&#x20AC;&#x2122;s Renewed Thrust in the Infra Segment to Boost the Demand for Backhoes Industry Feature

Bauma Conexpo India - Registrations Exceed All Expectations

Construction Equipment: Trends that the Market Players are Adapting to Withstand the Growing Demand Special Theme

The Indian Pvc Market: Demand On The Uphill

Guest Article VE Commercial Vehicles Ltd. 76 Manitou Equipment India Pvt. Ltd. 78 Case India 80 Rajinder Raina 81

Alltech Industries India Pvt. Ltd. 82 Venus Equipment 84 Ammann India 86 MANITOWOC 88-90

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News: of The Month

JSPL Bags 20 Per Cent of Rs 2,500 Crore to Supply Long rails for Railways

Buoyed by bagging an order from the first ever global tender for supply of rails by Indian Railways, JSPL on Tuesday said it aims at increasing its participation in proposed railway infrastructure modernization in the coming years. The company said received the order to supply nearly one lakh tonne of rails from Indian Railways after procuring all

technical clearances based on global best norms. JSPL operates India’s most advanced one million tonne per annum (mtpa) Rail Mill at its 3.6 mtpa integrated steel plant at Raigarh, Chhattisgarh. The company has already supplied Rails to national railways of Iran and Bangladesh; and to Dedicated Freight

Corridor of India. The company has capabilities to manufacture single piece rails of upto 121 metre length and upto 480 metre (with three welds) for higher durability. “It is indeed a historic moment for JSPL to bag this prestigious order through a global tender which saw participation from world’s top manufacturers of Rails. JSPL is fully geared up to commence faster deliveries so as to assist Indian Railways in rapid deployment of planned rail track rollout”, N A Ansari,CEO–JSPL said. The global tender which saw participation from eight bidders, including world’s seven topmost manufacturers of Rails. JSPL is the only private sector manufacturer of Rails in the country, and is amongst seven global steelmakers with capabilities to manufacture Head Hardened Rails. The company will supply around one lakh tonne of Rails to Indian Railways over a period of one year.

GVK Invites Bids for Engineering, Construction at Planned Navi Mumbai Airport

The GVK-led Navi Mumbai International Airport (NMIA) has sought expressions of interest from companies for construction, procurement and engineering at the airport project. “The scope of work includes but won’t be limited to the cut and fill works, construction of terminal building, airfield works including runway, apron, other airside infrastructure and 8

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facilities, landside infrastructure including roadway network, ancilliary buildings, multi-level car park, utilities and other associated works,” it said in a notice. The Rs 16,000 crore NMIA project, being set up in Panvel on the outskirts of Mumbai, will be built on 1,160 hectares of land in phases. The initial concession period is 30 years from the appointed date and is extendable for a further 10 years. The initial capacity has been doubled to 20 million. The GVK-led team is also working on a plan to increase the final capacity of the airport by 50% to 90

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million. The much-delayed Navi Mumbai airport is seen as a critical alternative to the existing airport in India’s financial capital which is already bursting at its seams. Mumbai’s airport is India’s second busiest and also its most congested. It handled 48.50 million passengers in 2017-18 and holds the record for being the world’s busiest single-runway airport. GVK, via GVK Airport Holding, owns 50.5% in Mumbai International Airport Ltd. (MIAL), the consortium that runs the existing airport and has won the bid for NMIA. MIAL’s other stakeholders are Airports Company South Africa (10%), Bidvest (13.5%) and the state-run Airports Authority of India (26%).

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Tata Steel Processing to Scrap Bhushan Steel-energy Deal

Tata Steel has started the process of cancelling power purchase agreements (PPAs) between Bhushan Steel, a company it acquired through bankruptcy resolution proceedings, and Bhushan Energy in a bid to cut costs. Tata Steel has started the process of cancelling power purchase agreements (PPAs) between Bhushan Steel, a company it acquired through bankruptcy resolution proceedings, and Bhushan Energy in a bid to cut costs. “We have sought reasons through a notice to BEL why the PPAs between BSL and BEL cannot be terminated,” one person said. BEL is a subsidiary of BSL, promoted by Neeraj Singal, and is under bankruptcy proceedings. Tata Steel has decided to cancel the PPAs because BSL can buy power from the grid at a lower cost, as it

has to keep paying the network a certain amount even if it purchases electricity from BEL, the people said. They indicated that the move to cancel the PPAs can bring the current or future BEL management to the negotiating table to work out terms that are more favourable to BSL The resolution professional for BSL, Deloitte Consulting refused to comment on the development. Tata Steel spokesperson Kulvin Suri did not respond to an emailed questionnaire and phone calls seeking comment. There may well be a case for more favourable terms for BSL. The NCLT order of May 15 revealed some details of the PPAs, including a clause stipulating that in case the agreement is cancelled, BSL will help BEL route the power to the grid. It requires BSL to compensate BEL if it incurs a loss of revenue by selling power to a third party. The PPA states BSL will make a certain minimum payment to BEL to enable it to keep operating and such payments would be adjusted against future power purchases. In June 2017, BEL had written to BSL seeking to revise tariff upwards, with effect from April 1, 2017, to meet lenders’ demands. Last year, before BEL went into

insolvency, it presented claims in excess of Rs 114 crore to the resolution professional of BSL. Some stock market experts said BSL’s new owner has no option but to ramp up production and cut costs. “BSL is a perfect fit for Tata Steel, especially when you compare this to the cost of a new plant… all they need to do now is to ramp up production and weed out whatever was wrong at Bhushan, like the interpromoter group lease agreement or the inter-group PPAs,” said Sudip Bandyopadhyay, founder of Inditrade Capital, a financial services firm. “While BSL is a good fit, I feel they are better off without Bhushan Power & Steel.” Tata Steel and rival JSW Steel are fighting a legal battle to purchase Bhushan Power & Steel from the bankruptcy court . Tata Steel had earlier cancelled a rental agreement for office space with the former promoters of BSL, leading to annual savings of Rs 72 crore, had reported on August 6. BEL operates a coal-fired 485MW power plant within the BSL premises at Dhenkanal in Odisha. There are two power purchase agreements between the two companies. The first sets the price of power at the higher of Rs 2.50 per unit or the cost of generation. The second stipulates a price that is the higher of Rs 3.35 per unit or the grid power rate.

SAIL in Actions to Close Certain Joint Venture Firms India’s largest steel maker SAIL has started process to exit some of its joint ventures that are either non-operational or non-performing, the public sector major has said in a report. The steel maker is also exploring options to monetise its investment in certain JV companies, the latest report said. “SAIL has initiated actions for closure/ exit from certain joint venture (JV) companies which are either non-operational or non-performing,” Steel Authority of India Ltd (SAIL) said in its annual report 2017-18. Some of the joint ventures include NTPC-SAIL Power Co Ltd, Bokaro Power Supply Co Pvt Ltd and International Coal ||www.constructionmirror.com||

Ventures Pvt Ltd (ICVL). According to sources, some of the non-operating JVs of the PSU include UEC Sail Information Technology Ltd and Romelt SAIL (India) Ltd. SAIL and ArcelorMittal also signed

a pact in May 2015 to explore the possibility of setting up an automotive steel manufacturing plant under a joint venture in the country. The proposed JV will construct a state-of-the-art cold rolling mill with a capacity of about 1.5 million tonnes per annum (MTPA) and other downstream finishing facilities in the country that will offer technologically advanced steel products to India’s rapidly growing automotive sector. The company’s hot metal output was at 15.983 million tonnes (MT) in 2017-18. SAIL’s crude steel output was at 15.021 MT and saleable steel output was at 14.071 MT in the last fiscal. SID MKJ

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CONSTRUCTION MIR ROR

News: of The Month

ATS Group Sells 975 Flats Worth Rs 1000 Crore in Three Months

Realty firm ATS group has sold 975 flats worth Rs 1,000 crore during the last three months on improved housing demand, a senior company official said today. The sales figure also includes that of Homekraft, its JV firm with HDFC Capital. Earlier, Gaurs group, another major developer in the National Capital Region (NCR), had reported sales if over 5,000 properties worth Rs 2,000 crore during the last four months. Realtors’ body CREDAI and property consultant JLL India, in their joint report, said that housing sales in India’s top seven cities have revived post demonetisation to rise by 25 per cent in the first six months of this year. However, Knight Frank India said sales growth was marginal at 3 per cent in the same period. ATS group launched a three-month campaign starting mid-May where it put on sale flats across 15 under-construction projects in Noida, Greater Noida, Gurugram, Mohali and Chandigarh. “There is an improvement in market sentiments leading to rise in housing

demand. We sold 975 units in this threemonth campaign valuing about Rs 1,000 crore,” Homekraft CEO Prasoon Chauhan told PTI. Chauhan said the end-user demand is shifting towards real estate companies having good projects execution track record. Asked about the impact of GST, he said, “We are charging only 6 per cent GST as we are passing on the input credit”. There is 12 per cent GST on under-construction flats and no GST on completed units. “ATS has created a name in building world class projects and has earned goodwill of customers by delivering projects on time and with best in class construction quality,” ATS group CMD Getamber Anand said.

Chauhan, who is also sales head of the entire group, said this sales momentum would continue in the upcoming festive season driven by end-user demand. ATS group has delivered 30 million square feet of residential space and is constructing 40 million square feet. In March this year, ATS group founder Getamber Anand launched a new venture HomeKraft to develop mid-income and affordable housing projects in a price range of Rs 30-70 lakh. Recently, HDFC Capital Affordable Real Estate Fund - a fund managed by HDFC Capital Advisors Ltd -- acquired a “significant minority” stake in HomeKraft and created a USD 300 million corpus to develop affordable and mid-income housing projects. HomeKraft is looking to clock sales of 6,000-6,500 units in the next 3-5 years with expected revenue in the range of USD 600-750 million. All apartments under this brand would qualify under the Pradhan Mantri Awas Yojana (PMAY) scheme, wherein, various concessional government schemes like interest subvention under credit-linked subsidy scheme (CLSS) and concessions on GST would be available.

Singapore’s GIC buys Minority Stake in Mumbai Realty firm Provenance Land in a statement. The project comprises a 5-star Four Seasons Hotel having 202 rooms, Four Seasons Private Residences and a proposed office tower. Singapore’s sovereign wealth fund GIC has acquired a ‘significant minority’ stake in Provenance Land for an undisclosed amount, the realty firm said. GIC had in December last year bought 33.34 per stake in DLF’s rental arm DLF Cyber City Developers Ltd (DCCDL) for about Rs 9,000 crore. DCCDL holds 27 million sq ft of price commercial assets earning an annual rental income of Rs 2,400 crore. Provenance Land, which first introduced the Four Seasons brand in India, owns a mixed-use development project spread over four acres of prime freehold land in Worli, central Mumbai, the company said 10

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Provenance Land MD Adarsh Jatia said: “This investment marks a key milestone for Provenance Land, as it directly bears out the intent to expand quickly and strategically into new best-in-class developments and deliver on our vision.” With our Worli development, he said the company is bringing a marque mixed-used project in the heart of Mumbai. “GIC’s investment brings us their international expertise in these asset classes. Their core strengths of a disciplined approach to investing long-term capital and sound governance structures will no doubt help us create additional value for all stakeholders,” Jatia said.

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Lee Kok Sun, Chief Investment Officer of GIC Real Estate, said: “As a long-term global investor, we continue to have a positive outlook in India’s growth potential in the long run. This investment is a unique opportunity to acquire a stake in a high-end mixed-use development situated in a prime location in Mumbai.” The proposed office development is an attractive proposition, given continued demand for quality office space and expected long-term rental growth in Mumbai. “We believe this well-located, high-quality project will generate resilient returns in the long run and look forward to partnering with Provenance Land on this joint venture,” said Lee Kok Sun. Provenace has delivered a portfolio of five greenfield hospitality projects across India. It has now forayed into diversified mixed used developments.

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News: Cement

Ultratech Gets CCI Approval to Acquire Century Cement Business

Aditya Birla Group firm UltraTech said it has received an approval from the fair trade regulator Competition Commission for the acquisition of the cement business of Century Textiles and Industries. The company said the CCI has given its approval for the share swap deal between the companies, Ultratech said in a regulatory filing.

On May 20, UltraTech said it would acquire the cement business of BK Birla Group company Century Textiles and Industries through a share swap deal, a move which would further consolidate its position as market leader in the segment. “...The Competition Commission of India

(CCI) has by its letter dated August 21, 2018 informed the company that it has approved the proposed combination under sub-section (1) of section 31 of the Competition Act, 2012,” Ultratech said. However, the copy of the CCI order is awaited, it added. The board of directors of UltraTech Cement May 20, 2018 approved a scheme of arrangement amongst Century Textiles and Industries and its respective shareholders and creditors, the Aditya Birla Group firm said in a statement. The transaction would provide UltraTech an opportunity to further strengthen its presence in the east and central markets, extending its footprint in the Western and Southern markets in the country. Century Textiles has three integrated cement units situated in Madhya Pradesh, Chhattisgarh and Maharashtra with a total capacity of 11.4 mtpa (million tonnes per annum) and a grinding unit in West Bengal of 2.0 mtpa.

French Cement Company Vicat Plans to Invest Rs 1,735 cr

French cement maker Vicat Group, which entered India a decade ago, is seeking to raise its capacity by more than 50% in three years, but would not chase volumes to enhance its shelfspace presence in the world’s secondbiggest market for the building material. The Indian arm of the 2.5-billion euros Vicat Group has outlined an investment of €223 million (Rs 1,735 crore) over the next four years to strengthen its presence in the south and west. It will also seek to enter the east, chief 12

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executive of Vicat India, Anoop Kumar Saxena, said at the inauguration of a 1.2-million tonne bulk cement terminal in Mumbai. The group launched the Vicat brand cement in the country. Vicat would seek to enhance its capacity to 13 million tonnes by 2021, but the company is in no rush to increase sales at the cost of profitability, Saxena said. The terminal will cater to the growing demand of the city. It will receive feed from its 100% subsidiary Kalburgi in the Gulbarga district of Karnataka. This facility was acquired in 2014 after Vicat ran it as a joint venture with Sagar Cements for six years. Even though the company has been pitted against home-grown cement giants such as UltraTech, ACC and Ambuja, it has no plans of decreasing

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prices to sell more at the cost of profitability. It recorded sales of 2.4 MT out of a capacity of 2.75 from Kalburgi last year prompting it to add another line. “The pricing right now is not good...But we have no pressure to sell at a cheap price. We will not sell at a cheap price but we can sell less,” said Saxena. Vicat will be adding a second line of 2.75 million tonnes to its Kalburgi facility as well as a grinding unit of 1.7 million tonne in Vizag, which will also supply to the east. It has also acquired a 51% stake in the 5.5 MT Bharathi Cement. Its current capacity stands at 8.25 MT. Vicat Group was founded by the son of Louis Vicat, who invented artificial cement in 1817. The group has a presence in 11 countries. ||www.constructionmirror.com||

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News: of The Month

India’s core Industries’ Growth Slows Down in July

The growth of eight core industries slowed down to 6.6 per cent in July against 7.6 per cent the previous month. However year-on-year, the figures are much better. The eight core sector -coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- had registered a growth of

2.9 per cent in July last year. The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, constitute 40.27 per cent of the total industrial production. The coal sector saw a huge decline

to 9.7 per cent from 11.5 per cent a month ago. Crude oil output was minus 5.4 per cent against minus 3.4 per cent in June. The Natural Gas production (weight: 6.88per cent) declined by 5.2 per cent in July. July refinery products at 12.3% vs 12.1% in June. Electricity output also dropped significantly to 4.8 percent vs 8.4 percent growth in the previous month. Steel sector saw better output with data showing growth of 6 percent vs 3.4 percent in the month of June 2018. The cement sector saw a growth of 10.8 percent against 13,2 percent in June. A marginal increase was wittnessed in fertilizer sector that saw growth of 1.3% vs 1% in June. During the April-July period of the current fiscal, these 8 sectors grew by 5.8 percent as against 2.6 percent in the year-ago period.

Birla Corporation Come up With Greenfield Cement Plant in Maharashtra for Rs 2450 Crore

Birla Corporation Ltd said that its wholly owned subsidiary RCCPL has decided to set up a 3.90 million tonne greenfield integrated cement plant at Mukutban in Maharashtra with a 40 mw captive power plant and a 10.60 mw heat recovery system. The company in a BSE filing on said that

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the RCCPL board has approved setting up the new cement plant, which will take up its capacity from p re s e nt 5 . 5 8 million tonne per annum (mtpa) to 9.48 mtpa. The project will entail an investment of Rs 2,450 crore. The greenfield project will be financed by a mix of debt and internal accruals. The move will catapult the MP Birla group’s cement production capacity to 19.5 mtpa within financial year 2021-22 from 15.5 mtpa now. The company in the BSE filing said, it has

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already acquired land and has mineral concessions required for the project. The proposed plant has already recieved environment clearance. The company is also expected to get fiscal incentive from the Maharashtra government since Maharashtra is a cement deficit state. The city-headquartered company had, in August 2016, acquired cement business of Reliance Infrastructure (Rinfra) cement arm Reliance Cement Company Private Limited (RCCPL) for an enterprise value of Rs 4800 crore. RCCPL has three cement units, an integrated cement plant at Maihar in Madhya Pradesh and grinding units at Kundanganj in Uttar Pradesh and Butibori in Maharashtra, with an aggregate capacity of 5.58 mtpa of cement and 3.3 mtpa of clinker. The cement maker had achieved successful integration of operations of RCCPL. ||www.constructionmirror.com||

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News: Metals & Mining

Vedanta Plans to Invest Over Rs 56,000 Crore in Three Years

Vedanta Limited said it plans to spend up to $400 million (Rs 2,800 crore) on expansion of Electrosteel’s capacity to 2.5 million tonnes, as well as increase expenditure on technology and digital

innovation to about Rs 3,500 crore. The announcements are part of a larger spending proposal of $8 billion (Rs 56,028 crore) that the natural resources major plans to implement across businesses over the next three years to boost their size by at least 50%. “Most of the $8 billion expenditure will be funded through internal accruals, so there is no plan at this point of time for our debt to go up,” Vedanta Ltd chairman Navin Agarwal said on the sidelines of the company’s annual general meeting.

“We have a comfortable level of internal free cash flow to fund expansion that will grow our size at least by 50%.” Vedanta’s free cash flow stood at Rs 7,900 crore at the end of the last fiscal year, as the company brought down its gross debt by Rs 8,500 crore. However, acquisition of Electrosteel and adjustment of working capital had increased its net debt to Rs 29, 910 at the end of the first quarter. It has cash and liquid investments of close to Rs 35,251 crore. Even though the company is grappling with the closure of its 400,000-tonne copper smelting plant in Tuticorin, the chairman said the company is in a “sweet spot”.

Government Insure About 2 Million Tonnes Sales Target for Coal India Limited

The Centre has asked Coal India to raise daily output and sales to 2 million tonnes from 1.4 million tonnes achieved in the last quarter to improve supply to power plants facing critically low stocks. The coal ministry has told the company that it needs to produce and sell 1.9 million tonnes and 1.94 million tonnes respectively throughout the year. In the June quarter, it managed daily production and sales of 1.4 million tonnes and 1.61 million tonnes respectively. This has necessitated ramping up production and sales during the second quarter to two million tonnes a day. If achieved this can help achieve production and sales targets of 652.25 million tonnes and 681.2 million tonnes

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respectively for the year. According to figures published by Coal India, it managed to produce and sell 136.87 million tonnes and 153.43 million tonnes respectively during the first quarter of the current fiscal. The company achieved 91% and 90% of production and sales targets during the quarter. It achieved 15% and 12% growth in production and sales during the quarter in comparison to the previous corresponding period. The centre has asked Coal India chairman, and heads of all subsidiaries to work out a definite action plan to ramp up supply. It has allowed the company to achieve desired sales by liquidating existing stocks at pit heads especially for plants faced with critical and super critical stock. It has also asked Coal India to ensure that all clearances for increasing production are in place. Clearances for operationalizing recently allotted blocks should also be in place so that production targets are achieved, the letter to the Coal India chairman from

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the coal ministry mentioned. The coal ministry has offered to intervene in case it faces issues relating to clearances or otherwise from any state government, or central ministries or any other agencies. According to a senior Coal India executive, the company missed targets due to issues with land acquisition, physical possession of land, and demand for compensation beyond norms and resettlement & rehabilitation. Delay in grant of environment clearances for expansion and forest clearance played a major role in production loss. Law and order issues by local leaders and villagers in almost all subsidiaries especially Eastern Coalfields, Bharat Coking Coal, Central Coalfields and Mahanadi Coalfields affected production and sales. “Sudden stoppage of DhanbadChandrapura railway line affected production at Bharat Coking Coal while evacuation constraint at Magadh and Amrapali open cast mines due to non-completion of Tori-Shibpur railway track affected coal production at Central Coalfields,” the executive said. ||www.constructionmirror.com||

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CONSTRUCTION MIR ROR

News: Metals & Mining

CIL to Charge Penalties on Delaying Payment Beyond 15 Days

Coal India will strictly implement its credit policy and levy penal interest on payment delayed beyond 15 days, and stop supply if money is not paid in a month as the company wants to bring down receivables that touched Rs 12,500 crore in April. “Although we have a policy of levying penal interest and discontinuing coal supplies if dues extend beyond a month, it was never implemented strictly. Over the past few years, dues were hovering around Rs 10,000 crore, affecting the company’s finances adversely. Towards the end of the last fiscal, it touched Rs 12,500 crore, prompting the board of directors to direct its executives to strictly implement the policy for defaulters,” a senior Coal India executive said. State-owned Coal India has started warning defaulters about penal interests and supply cuts, which reduced the dues to Rs 9,000 crore, the executive said. In July, almost 60% of the dues were from four

public sector companies. NTPC’s due was Rs 2,600 crore, followed by steel maker SAIL Rs 1,000 crore, and West Bengal Power Development Corporation at Rs 900 crore. Damodar Valley Corporation’s outstanding was Rs 693 crore. Earlier, consumers used to raise issues about the quality of coal delivered and raised disputes on billed amounts making it difficult for the fuel supplier to ensure settlement of dues. As Coal India moved to a system of joint sampling and measurement of heat content in coal, dispute resolution has been streamlined

making it easier for the company to raise bills or adjust them in case of disputes. According to an NTPC executive, bulk of the outstandings were old dues raised on mismatch in quality of coal delivered and the quality on which the billing was done. Since there has always been a mismatch in quality claimed to be delivered and the actual quality delivered, certain amount always remains outstanding which gets settled only when both parties agrees to the final outcome. Nevertheless, NTPC’s dues were around Rs 3,500 crore towards the beginning of the fiscal which have declined to Rs 2,600 crore by the beginning of July this year. Damodar Valley Corporation sells bulk of its power to states such as Bihar and Jharkhand, but payments from these two states are irregular at times leading to large dues. It affects the power company’s ability to settle outstandings with Coal India although the company is in regular touch with these states for settling dues.

India Needs to be on Toe to Boost Aluminium Overall Production: Tapan Kumar Chand

The country needs a dedicated national policy for aluminium to boost overall production and double per capita consumption of the metal, a top industry leader has said. Addressing delegates during the Annual National Convention of Aluminium held in Bangalore, Tapan Kumar Chand, chairman of National Aluminium Company (Nalco) said: ‘‘There is need for a National Aluminium Policy to enable the industry to produce 10 million tonne of aluminium with 75% in

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downstream.” He requested government of India to include aluminium in the group of core industries and said India needs to double its per capita consumption. “For this, there is a need to increase applications of aluminium and go for 75% value addition,” he pointed out. At present, there are some 300 aluminium applications in India, which is barely one-tenth of the 3,000 applications existing globally, Chand who is also chairman of Aluminium Association of India (AAI), added. Aluminium industry is tipped to have strong grwth prospects in India. While domestic aluminium demand has been growing at a rate of 10% every year, it is projected to double in the next 5-7 years to around 7 million tonne.

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The convention was attended by top leaders of the aluminium Industry, policy makers, secondary producers, technologists and foreign delegates. In his address, Chand emphasised on the scope of the aluminium Industry to generate employment. “Aluminium industry has the potential to generate an additional employment of 1.2 million at the 10 million tonne production stage,” he said. Calling upon prospective investors and stakeholders to look at Angul Aluminium Park as an attractive investment option, he invited Industries to set up units there. He park was developed jointly by Nalco & Odisha government’s IDCO. An Italian delegation which attended the convention led by its trade commissioner Prof. Alberto, spoke of the potential of downstream aluminium industries in India its role in the future growth of domestic aluminium sector and stressed on the lasting relationship between India and Italy in the sector. ||www.constructionmirror.com||

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Pre Event

• Well-known exhibitors ramp up their trade fair presence • Kaeser Kompressoren SE and Tata Hitachi make their debut • India’s construction machinery market continues to grow is not only attracting well-known companies from India but also exhibitors from across the globe. Various countries, including China, Germany, Spain and North America, will be represented on site with joint stands. More country pavilions are planned. The advantages of this centralized organization are that joint stands enable small and mediumsized companies to find cooperation partners, and provide help in gaining a foothold in this large market.

Award confirms trade fair’s importance as an outstanding B2B platform

he construction machinery market in India is booming. Infrastructure and construction projects are benefiting from long-term support thanks to reforms passed by the Indian government. These are positive signs that are also reflected in the number of companies signing up for the next bauma CONEXPO INDIA. The event will take place from December 11 to 14. Due to the positive feedback from visitors and exhibitors, the trade fair will be held for the second time at the HUDA Ground in Gurgaon/Delhi. With less than six months to go before it starts, the event organizers are optimistic about the upcoming construction machinery trade fair: “Demand is high and we are pleased with the high level of interest. We already have 30 percent more space registered than for the previous event,” says Bhupinder Singh, CEO of bC Expo India. Well-known companies such as ACE, Case, Caterpillar, JCB, Kobelco,

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L&T, LiuGong, PERI, Putzmeister, Sany, Schwing Stetter, Volvo, Wirtgen and Zoomlion have not only registered to take part again but have also increased the floor space for their stands.

Familiar & new faces at bauma CONEXPO INDIA

The event organizers are also thrilled to see the return of an industry giant: Terex, which last attended in 2014, will be back again. Other well-known companies such as DEUTZ Engines, Doka, Doosan Bobcat, eTrack Crushers (a Keestrack Group company), Hyundai and Manitou Equipment have also signed up for the event. New faces to bauma CONEXPO INDIA include the German company Kaeser Kompressoren SE, a worldleading manufacturer and supplier of compressed air products and services, and India’s Tata Hitachi, a leading manufacturer of mining, construction and agricultural machinery. The trade fair’s excellent reputation

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For the third time, bauma CONEXPO INDIA has won an award from the Indian Exhibition Industry Association (IEIA) and The Economic Times. The construction machinery trade fair impressed the panel of judges in the “India’s Top B2B Exhibition” category.

Sustained growth forecast for India’s construction machinery market

Following an Off-Highway Research analysis (April 2018), India’s construction and mining industries in particular are expected to experience sustained growth through to 2022. iCEMA, the Indian Construction Equipment Manufacturers’ Association, also predicts a 10 percent growth rate for India’s gross domestic product by 2024. A major reason behind these promising trends are ambitious reforms passed by the Indian government that support infrastructure and construction projects. Well-known companies are responding to the positive trends of the Indian economy and have already registered for the event. The preliminary exhibitor list is available here: bcindia.com/trade-fair/ information/exhibitor-directory. ||www.constructionmirror.com||

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News: Steel

Steel Ministry Against Inclusion of Finishings Products in RCEP

India’s steel ministry has strongly opposed the inclusion of finished steel products in the proposed regional free-trade agreement, saying it would have an adverse impact on the industry that’s recovering from a crisis. A group of ministers is looking into aspects of the Regional Comprehensive Economic Partnership, or RCEP, after many ministries and departments expressed reservations about the contours of the agreement. The RCEP includes the 10 ASEAN members, China, Australia, India, New Zealand, Japan and South Korea. “We believe in multilateralism, we believe in fairness, we believe in the WTO principles. But these should not be hitting Indian industries,” Aruna Sharma, steel secretary, “We are very clear as far as steel is concerned it should be out of RECP.” Sharma said only ingredients and products associated with steel-making such as coking coal, ferro nickel, ferro iron, stainless steel scrap and scrap should be included in the agreement. “This will help build volumes under RCEP. In any case, we would be importing these, so India can claim credit for their inclusion in the RCEP. But finished steel products should be out,” she said. The steel ministry is in talks with the department of 22

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commerce on this issue. Sharma, who retires this monthend, said the amendment in the general financial rules making steel a priority item has been a game-changer for the sector, which is now poised to clock 10% growth in this financial year. She said there is bound to be growth in infrastructure and in the consumption of steel and antidumping duties are crucial at this stage so that the country’s potential is exploited to the fullest and Indian manufacturers contribute to it. India’s steel industry is recovering from a crisis caused by excess global capacity. India, the world’s third-largest producer of crude steel, increased output 6.2% to 101.4 million tonnes in 2017, according to the World Steel Association. Finished steel in demand in India is expected to grow 5.5% to 92 million tonnes in 2018 and 6% to 97.5% in 2019, the association said in April, as the Indian economy stabilises and steel demand accelerates gradually. CHEAPER INPUTS The ministry is in talks with the department of revenue on lowering of import duties on inputs used in the industry. The thumb rule in the discussions is that imports of what India does not have in sufficient quantity should not be made expensive

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by imposition of duties, she said. “We are in talks on coking coal, ferro nickel, ferro chrome, stainless steel scrap and scrap. It may be an earning source. But steel is on a growth trajectory so the government will earn through GST and logistics. This is the line that the ministry has taken,” she said. CAPACITY EXPANSION Sharma said plans were in place for India to achieve a production capacity of 300 mt by 2030, in line with the new steel policy. “We are in talks with Japan and South Korea for green-field capacity... Auto steel is a requirement and we have iron ore,” she said. Sharma pointed that the Insolvency & Bankruptcy Code mechanism is also working well in resolving the debt of steel companies. “Each one of bids at the NCLT (National Company Law Tribunal) for steel companies has come with an expansion plan because everyone knows there is no looking back,” Sharma added. But for that, you need to clean up, she admitted. The government needs to make land available immediately and the steel ministry has 15,000 acres of identified land pool for investments. “For this, the ministry of steel itself has identified land, but more important are the linkages of coal, thermal coal if they want to go for gasification route or the coking coal route,” she said. Sharma said that when this government took charge, the situation that prevailed in terms of transparency in mining required corrections. “But now the time has come to have a relook at it, to have an assured supply. It can be auction route. Auction can be in two parts. One auction to give it to end-users and the other to mercantile miners. Coal for sponge-iron makers. For coking coal, we have asked NMDC as a major role player as it is used only by steel,” she said.

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Nippon Steel Sees India as Most Promising Market

Japan’s top steelmaker Nippon Steel & Sumitomo Metal Corp sees India as the most promising market and wants to become “an insider” to capitalise on growth of the world’s third-biggest steel market, a senior executive said. “India will be the fastest-growing steel market in the world going forward,” Nippon Steel Executive Vice President Katsuhiro Miyamoto told Reuters in an interview. “But since it’s not an easy market to export to due to trade and distribution issues, it’s important for us to become

an insider. That’s why we are bidding for Essar Steel,” he said. Nippon Steel has teamed up with Luxembourg-based ArcelorMittal, the world’s largest steelmaker, to bid around $6 billion for bankrupt Essar Steel, India’s 4th-biggest steelmaker. But the bidding process has been delayed due to legal battles over eligibility for the bidders. Asked if he thinks the chances are in their favour in the bidding race, Miyamoto said: “We have always believed so.” “We have submitted all the documents requested to the National Company Law Appellate Tribunal (NCLAT) and we expect their decision by the end of this month,” he said. World Steel Association (WSA) forecast steel demand in India will climb 5.5 percent in 2018 and 6 percent in 2019, becoming the fastest-growing market among the world’s top ten steel consumption countries.

Even so, Japan’s steel exports to India nearly halved in 2016 after India imposed duties of up to 20 percent on some hot-rolled flat steel products in September 2015. India also set a floor price in February 2016 for steel product imports to deter countries such as China, Japan and South Korea from undercutting local mills. Since then, Japan’s annual steel exports to India have been hovering at around 1.3 million tonnes, just 3 percent of the country’s total exports of the metal. Nippon Steel has a joint venture with India’s Tata Steel to produce cold-rolled sheets for automobiles, but it has little presence in steel used in other areas in the South Asian nation. “If we can buy Essar, it will give us access to India’s general steel users including builders,” Miyamoto said. Nippon Steel said in March it will spend 600 billion yen ($5.4 billion) for business investment, including for mergers and acquisitions (M&A), over the next three years. That would be up from 210 billion yen spent over the previous three years to step up global expansion.

Promising Market for Nippon Steel in Coming Days Japan’s top steelmaker Nippon Steel & Sumitomo Metal Corp sees India as the most promising market and wants to become “an insider” to capitalise on growth of the world’s third-biggest steel market, a senior executive said. “India will be the fastest-growing steel market in the world going forward,” Nippon Steel Executive Vice President Katsuhiro Miyamoto said. “But since it’s not an easy market to export to due to trade and distribution issues, it’s important for us to become an insider. That’s why we are bidding for Essar Steel,” he said. Nippon Steel has teamed up with Luxembourg-based ArcelorMittal, the world’s largest steelmaker, to bid around $6 billion for bankrupt Essar Steel, India’s 4th-biggest steelmaker. But the bidding process has been delayed due to legal battles over eligibility for the bidders. Asked if he thinks the chances are in their ||www.constructionmirror.com||

favour in the bidding race, Miyamoto said: “We have always believed so.” “We have submitted all the documents requested to the National Company Law Appellate Tribunal (NCLAT) and we expect their decision by the end of this month,” he said. World Steel Association (WSA) forecast steel demand in India will climb 5.5 percent in 2018 and 6 percent in 2019, becoming the fastest-growing market among the world’s top ten steel consumption countries. Even so, Japan’s steel exports to India nearly halved in 2016 after India imposed duties of up to 20 percent on some hot-rolled flat steel products in September 2015. India also set a floor price in February 2016 for steel product imports to deter countries such as China, Japan and South Korea from undercutting local mills. Since then, Japan’s annual steel exports to India have been hovering at around 1.3 million tonnes, just 3 percent of the country’s total exports of the metal.

Nippon Steel has a joint venture with India’s Tata Steel to produce cold-rolled sheets for automobiles, but it has little presence in steel used in other areas in the South Asian nation. “If we can buy Essar, it will give us access to India’s general steel users including builders,” Miyamoto said. Nippon Steel has a joint venture with India’s Tata Steel to produce cold-rolled sheets for automobiles, but it has little presence in steel used in other areas in the South Asian nation. If we can buy Essar, it will give us access to India’s general steel users including builders,” Miyamoto said. Nippon Steel said in March it will spend 600 billion yen ($5.4 billion) for business investment, including for mergers and acquisitions (M&A), over the next three years. That would be up from 210 billion yen spent over the previous three years to step up global expansion.

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ncrease in the population will bring a huge future for the construction industry. It is being forecasted that the global population will be 9 bn by 2050. By this time the majority of the population will be living in the cities. This will be the highest demand of construction yet to be faced.

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ndian Construction Industry: Overview & Prospects

Infra’ sector is a key driver for the Indian economy. It includes power, bridges, dams, roads & urban Infra’ development. 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. In 2016, India jumped 19 places in World Bank’s LPI 2016, to rank 35th amongst 160 countries. FDI received in Construction Development sector from Apr’00 to Dec’17 stood at US$ 24.67 bn, according to the DIPP. Logistics sector in India is expected to increase at a CAGR of 10.5%, from US$ 160 bn in 2017 to US$ 215 bn by 2020. India has a requirement of investment worth Rs 50 trillion in Infra’ by 2022 to have sustainable development in the country. India is witnessing significant interest from int’l investors in the Infra’ space. A report from market research firm Trimetric predicts the sector will grow at a CAGR of 4.16% from now until 2021. This is an increase over market growth seen in the previous report period, 2012-16, where the Indian construction industry expanded by 3.95%. India is one of the world’s most vibrant markets for building & interiors at the moment. Huge sums are being poured into a comprehensive range of construction projects, from major Infra’ upgrades, sweeping residential housing programs & wholesale city building. Residential construction is definitely a market to watch in India right now. India is facing a huge housing backlog some estimates claim as many as 30 mn families need homes to try & tackle the ever-expanding need for affordable housing, the govt’ is planning on building 20 mn low cost units by 2022. Rapid urbanization is necessitating the construction of modern, convenient transport links to & from major population centres. This means India is funneling cash into areas such as road building. This sub-sector alone is expected to see $13 bn of investment over the coming years. As much as 7,000 km of new roads are planned for construction, linking the East & West of India. Under the Smart City Mission, govt’ plans to develop Infra’ of 100 selected cities with an investment $7.2 bn, whereas under the AMRUT scheme it plans to spend $7.4 bn to develop 500 cities by 2022. In short, it’s a good time to get into construction in India. It’s been on the international radar for some time now, with many foreign CoS making some big wins on the market. Malaysian & Indian CoS inked deals worth $36 bn in early Apr’17. Increase in the population will bring a huge future for the construction industry. It is being forecasted that the global population will be 9 bn by 2050. By this time majority of the population will be living in the cities. This will be highest demand of construction yet

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in Infra’ development, & resident & non-residential building. Govt’ support is exemplified in expansionary budgetary allocations for Infra’ projects & in regulatory reforms that are opening new sectors to pvt. involvement & investment. According to BMI Research, India’s construction industry will see growth of 6.1% in 2018 – an increase on the 5% growth experienced in 2017, which was impacted by govt’s program of demonetization. Real growth will average 6.2% between 2018-27. Strong economic growth in India will also provide support for construction investment. BMI Research recently revised its forecast for GDP growth in this FY from 6.7-7.3%. Cumulative FDI inflows from April 2000 (US$ billion)

24.67

24.29 9.82

12.36 FY18

FY16

FY17

24.18

24.06 FY15

7.96

3.43

22.08

2.58 FY14

2.09

FY13

23.3

Construction activities (includes infrastructure) Construction Development: Townships, housing, built...

Roads / Bridges infrastructure value in India (US$ billion) 25

CAGR: 13.6%

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13.4

19.2 2017F

2016F

8.6 2013

2015E

8.6 2012

2014

8.3 2011

6.8

2010

6.8

16.1

2009

to be faced. The construction industry is one of the largest industries worldwide that have to face different aspects of challenges & issues to maintain their significant growth. With the increase in demand in the field of construction, there come challenges in performance, profit, productivity, sustainability, labor & the total industrial growth. Outside of the construction sector, India’s building activity is providing some different entry routes. Transport & logistics operators are also getting in on the action. There is heavy demand for construction equip. Sectors such as roads, airports, power, & seaports have become very attractive for both domestic & foreign investors. With many points of entry, India’s construction industry offers a wealth of opportunities for international CoS over the next decade. The ACETECH series of shows, dedicated to architecture, interior design & interiors, puts international firms in contact with India’s key buyers whilst World Build India offers a dedicated event to the building, construction & architecture industries. India’s construction industry is expected to continue to grow at strong rates over the next decade, according to a recent research note from BMI Research. Growth will be underpinned by stable govt’ support for Infra’ development, as well as expanded pvt. sector involvement. We have a positive outlook for India’s construction industry & expect that growth over the next decade will draw upon increasing govt ’ & pvt.-sector investments

State of Architecture in India

Today, the rapidly-developing country of India is one of the key places in the world where architecture could have the most impact; in spite of this, there has been little critical reflection on the country’s architectural landscape, & architecture has struggled to assert its value to the wider population. Looking back to the time architectural practices first began to proliferate in India, one sees that they always operated within an ecosystem of practice, academia, & association. We can trace this to the 1930s, when the Indian Institute of Architects (IIA) was set up, which in turn emerged from the alumni of the Bombay School of Art. Teachers at the school were the most prolific practitioners in the country, & students made the easy transition from learning to apprenticeship, to setting up their own practices. Even patrons, largely non-state aligned themselves with the architects in a collegial association. The Journal of the Indian Institute of Architects & their annual lectures became the mouthpieces of collective praxis, as the many presidential speeches show. Everyone knew what everyone else was doing, knowledge flowed centripetally. In the years after independence, these bonds became looser as the nationstate became the chief patron. While pvt. wealth & industry provided steady work for architects all over the country; the IIA still continued to remain the platform of discourse & dissemination; an internal professional rumination, ||www.constructionmirror.com||

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largely distanced from changing politics & culture in the country, especially from the 70s onwards. While students of architecture did briefly take political stances during the Emergency, practice remained unaffected. By the end of the 80’s, with the rise of the patron as aspirant or speculator, and, a few years later with the effects of liberalization made flesh, the erstwhile associations started to crumble, the ecosystem became unstable, & in some ways, unsustainable. Architectural practices became myriad & diffuse, working centrifugally, aligning into various smaller constellations. The influence of the IIA waned, while the Council of Architecture, mandated to look after the concerns of practice in the early seventies through an Act of Parliament, by & large, came to focus on monitoring architectural education that had, by the turn of the millennium, boomed with colleges springing up in all parts of the country. Education too, dispersed in the wake of overarching Modernism’s eclipse & the acceptance of pluralism fueled both by the rise of critical theoretical positions in architecture as well as a dilution of the rigor that functionalism once imposed on its practitioners. Critical discussions on Indian architecture have since been restricted to a few conferences & the odd polemic in architecture magazines. Books on Indian architecture, when concentrating on the contemporary, are in the form of monographs, vanity publications or, when serious, about 28

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urban change. Vistara, the exhibition, in 1986 was comprehensive, but an overview of Indian architecture. Three decades on, there has been no serious review of the state of the architectural profession in India. The first is clearly to correct or compensate for the absolute silence in the discussion of architecture in the last decade or two. For good reason, our discussions & our focus have been on urban questions, or at least we have approached our discussion about architecture through the lens of the city. Further, the architecture that has been celebrated in India since the liberalization of our economy has been the architecture of indulgence. While this is productive in its own way; it removes the perception of the usefulness of architecture away from the public. All such programs that, while they are crucial crucibles for architectural innovation, touch a very small fragment of our population. Lastly, in India, the State has more or less given up the responsibility of projecting an idea of India through the built & physical environment as it had done in the post-independence era when several state capitals, govt’ & educational campuses were built across the country. Today the major statedirected projects are highways, flyovers, airports, telecommunications networks & electricity grids which connect urban centers but don’t contribute to determining or guiding their physical structure. The State is now obsessed

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with a statistical architecture – GDP, etc. Architecture is largely being driven by patrons & the voice of the architect, at least as we see it, is muted; far too muted, sadly so. Since the liberalization of our economy, architects are pandering to Capital in unprecedented ways; creating what we could call the Architecture of Impatient Capital. Capital on account of its impatience creates architecture that is often whimsical, most often vendor driven, for ease of speed of construction, with new roles emerging for architects who now interface with technology but also exchange & access info. in a renewed relationship, sometimes productively & often in a subservient way. This then, by extension, is a critical issue for practitioners – the ideological stance of most patrons, which is largely based on & invested in Capitalisms. Interestingly, in today’s world no ideological stance can be singular or clear. Through the last 25 years we have the simultaneous experience of transitioning out of socialism & transitioning, simultaneously into capitalism. Thus there have been other patrons, trusts, faith-based organizations, NGOs & civil society more broadly that has also supported architecture & recognized its role in the well-being of society. We hope we can celebrate this other half of architectural production in India that is, equally or if not in greater measure, altering & making the “new landscape.” If the developer is playing a role in the building of our architectural physical ||www.constructionmirror.com||

fabric, then we will have to see where & how we can engage with that set of players. Real-estate is as much about planning, policy, & culture as much as it is economic & finance – this reality has to be elaborated, researched & explained, while as a profession we have to negotiate these forces for the larger good of our built & natural environments. Architectural education has a massive role to play in articulating & negotiating these conditions. Building appropriate capacity & training a generation in the various modes of engagement with practice, etc. But the media more generally must also make this more central to its imagination & agenda. We don’t see enough of this discussion in the mainstream media in these critical terms. The precise problem is that architecture is floating in murky waters, that is indeed its “state” – fluid & ambiguous! From a point in the early twentieth century when architects fought to stand apart from engineers, & projected themselves as designers & thinkers, participating in the cultural landscape of society, today architecture has slipped into modes of luxury or vanity commodity – pretty houses & rich interiors! Today architects are introduced as lifestyle-producers – handmaidens to a demand for style & fancy living! This condition was the urge behind setting up tents whenever & wherever possible to discuss architecture. Lack of valuable & critical discussions on architecture & the simultaneous pressure on urban development resulted in discussing architecture as an aspect of urban studies or regional/ rural studies to perhaps symbolically embrace the social sciences & their humanizing effects. But then, what does it mean to bring architecture back into focus – & how would we study this objectspace which it is, as well as occupies? In framing programming at Arbour: Research Initiatives in Architecture or the editorial intentions within Domus India, one struggled on experiments to develop the tools & system of understanding, analyzing, & discussing architecture, & whenever necessary, to understand architecture in India! It is ||www.constructionmirror.com||

now important that we stand within today & talk about today! We have to discuss our times as our experiences of political realities in everyday life – & here we draw in architecture, as one of the primary modes in which everyday life is lived & experienced. The production & consumption of architecture, as function or symbol, it is an everyday lived reality. The task is then to produce tools that will understand architecture as a material reality as much as it is a cultural topography. We don’t believe any time is right but different distances from the present give you different readings. This is also why we have consciously constructed a curatorial team that brings different pulses to our readings – one of an art critic, architectural critic as well as a practitioner. We bring different lenses to view the trajectory of architecture in India & our perspectives will offer different readings of time & distance. Each of these lenses is inherently better equipped for different distances! Besides this multiplicity of curatorial lenses, we believe the structure of the exhibition moves from an objectivity of presentation in the first section to a subjectivities reading or curatorial reading in the third section. The second section is a bridge from where we can look at the past with some distance. As a generation passes it becomes in some ways easier to read the immediate past, while in other ways harder because even for the immediate past we do not have an adequate culture to archive, capture & reflect on the production of architecture. So the chronological proximity can be used in both ways – to construct robust links & a sense of the continuity with the past but also to interrogate it with the ambiguity that the proximity to reality allows us. In the first few decades after independence there seemed to be a synchronicity between the aims of the architects & that of the fledgling nation state. Even pvt. Patronage seemed to follow a similar mindset. Now in the liberalized present, there seems to be a greater priority on the rights of individuals rather than on collective responsibility especially in the urban environment.

This transition in the nature & role of architecture in India clearly reflects the arc of political change in the country, from the primacy of the State as engine of social, economic & cultural transformation in the early decades after Independence to the gradual withdrawal of the State from this dirigisme position & the emergence of pvt. capital as the source & reference point for the formation of social values, the direction of economic policy & the texture of cultural production. In the earlier phase, architecture was clearly aligned with the Utopian, nationbuilding ambitions of the postcolonial State, whether the patron was the State or pvt. enterprise. In the current phase, architecture is equally clearly aligned with the aspirations of an emergent class of financiers, speculators & investors, with the State often following this cue in any projects it commissions. The premise of the earlier phase was the Leviathan-like delegation of decisionmaking by individuals & communities to the postcolonial State, which would guarantee the greater good. The premise of the current phase is the contrarian equation of individual liberty with pvt. property, & thus with the individual quest for personal happiness, with the greater good falling by the wayside. There is a difference in the geographies of the location of the new patronage that has emerged. There is an explosive growth of building in the southern states of India. The traditions & cultures of building in these new geographies is very different from the contemporary building culture. Interestingly this new form of patronage comes in a post-socialist era where the individual is at the center of the decision-making through an empowerment that is the result of capital accumulation. So this is a new form of patronage but also coming out of specific cultural & physical geographies. The globalized economy operates through a complex circulation of global goods, services & imaginaries that are threaded through a local set of conditions: the relationship between these is parsed through a variety of modes including translation, mistranslation, reflection & refraction.

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Cover Story Urban sphere that is thus produced is characterized by inchoate & often volatile aspirations, a pursuit of images that seem always out of reach, & also a culture that emphasizes the primacy of privatism rather than solidarities of any kind. There are some wonderful trends within the profession that are becoming evident, a new set of architectural practices have emerged, & have established a critical body of work that can be evaluated for their different ideas & theoretical perspectives. At the same time, today change occurs at an escalated pace – & to understand the present & future trajectories for the profession we need to build conversations that can facilitate this process. A nuanced, critical, robust & rigorous discourse within the academy of architecture education & more importantly the profession – we sincerely hope that SOA will be a contribution to this broader aspiration. Writing on architecture is in an abysmal state! But this statement does not take us far. Lack of writing indicates our lack of critical interest in architecture as a professional community, as a culture. To theorize a subject for a field is to indeed appreciate its value & existence beyond its mere need-to-be; & the discussions on architecture have happily slipped into rhetoric’s of regionalism or climate, hate-glass or love-brick & stone, outdated notes on power & architecture – in fact, they seem to be living in a time-warp! The world changed drastically & rapidly in the 1990s – & we could not as an architectural profession keep pace with it – unable to understand what had hit us. Rather than developing newer languages & idioms, & tools to asses & read the new architectural turns, we often resorted to a denial of the shape of things, to a rhetoric of rejection, & misplaced nostalgia. Politics has become ever more complex, & architects from once being agents of social & aesthetic revolutions, now maintain a technocratic attitude, where you fine-tune your skills, but avoid addressing the very environment (social & cultural) that you ironically depend on for your daily bread & butter! Until we address the conditions of our reality, 30

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writing will not be effective or incisive – because the drive to write, argue, shape/unshape will be missing! To write is to create a world that furthers the meaning & role of architecture in a society. It should not be imagined as a skill task of decoding some hidden meaning in an existing building; it is not supplementary to architecture, or to deliver formulas for a “better” design – but to enlarge the existing space & terrain of architecture productively. As an ideological position, the early Modernists could willfully reject history in the course of charting architectural futures. However, considering that a lot of buildings are part of brownfield developments, often in the heart of some of our ageing cities. Both positions are a problem – excessive sensitivity to a past or a denial/rejection of it – & that somewhere is our situation today, to be oscillating between two positions. Some of the interpretations of the past have also been problematic – where often past is reduced to a monolithic imagination or simply a set of images, to be cut-and-pasted. To the credit of many architects – some in the generation that established studios in the 1970s as well as the younger ones establishing studios between 1980-1990s there has been an expression of this dilemma – where do I address the present time & its own material reality, while also caring about a history & heritage we grow up to respect; at times this has been a dilemma & it has been evident in the architecture, at times it is purposeful expression of that struggle. The need is to struggle in these times & see what languages of architecture will work for us today & suit or challenge our political & functional existences. Some of the younger practices are indeed doing that; they may not be able to express that all points in time, but they are intuitively struggling with the present. There is also the shameless activity of building – which is more the real-estate end of architecture – where you binge on building & construction, where architecture is used to suit greed & some promoted idea of aspirations. Architecture in this realm can only be countered when some well-meaning

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& ethically-sound architects will enter this sphere of real-estate architecture, & try to push the boundaries from within these specific practices. On the other hand, one will have to work on the idea of public awareness regarding architecture. There is no discussion on architecture in non-professional forums, or the popular media; this is a big lacunae! Architecture is the most public of all arts – it sits in your face – it has a strong public presence in everyday living space – but there is no discussion on architecture in the public sphere. Indian architecture certainly articulated a politics of rupture & compelling forward movement in its heroic Modernist phase, when it presented itself as a force that would clear away the residues of tradition & the compromises of the colonial period, & would, both literally & figuratively, build a future for the nation-state that had no precedent in what went before. Even when they used motifs & devices, or redeployed typologies from the legacies of previous times, Habib Rahman, Achyut Kanvinde, B V Doshi, Charles Correa & Raj Rewal embodied this spirit in their early work. & when some members of this generation circled back to the retrieval of the embedded wisdom of regional building, architectural & visionary lineages, as they did during the 1980s, that was a political gesture as well – a gesture articulating a politics of critical retrieval. Having said that, in many architectural projects today, one can feel the struggle some architects are going through with this divorce of form, design, & politics. What we need is not to mourn this divorce but to try & figure out what is the current engagement that form & design have with everyday life politics & culture. There are many formulaic references established about people & public life, living & working, & often architects are simply reusing them again & again. These are no more than rhetoric. However in some cases there are new adjustments being made, to deal with the political & cultural negotiations of life in India now. It is probably more writing, more studies that will make these new forms of anxiety clear & ||www.constructionmirror.com||

understandable. All the Modernists who believed that good architecture – or noble art – would inevitably lead to a good society have come to grief. Mondrian believed that his rectilinear, flattened paintings offered cues to the spiritual refinement of life; mass culture has reduced them to shower curtains. Le Corbusier believed that his ideal designs would enable the citizens of tomorrow to lead lives of significance; his work was flawed from the beginning by his desire to subjugate all individual will & desire to the absolutism of the plan. There is no necessary connection between good architecture & a good society – at best, the former can be an image of the latter; it can gesture towards the latter. But the best architecture can be distorted by elites bent on exacerbating the asymmetries in society. To cut down on energy use, save money & make an impact on the environment, architects today are embracing green as their new way of life. While there is awareness on the importance of environmentally responsible & resourceefficient way of living, experts believe that it is much more important to promote a healthy environment, which does not disrupt the natural resources around us. We need environmentally responsible & resource efficient green buildings for a sustainable tomorrow. It’s time we encourage architects focused on designing green buildings. By adopting greener practices, we can take maximum advantage of environmental & economic performance. In India, the sustainable movement has gathered pace after the sector started focusing on affordable homes for ordinary citizens. In the current scenario, affordable homes in the range of Rs 20-30 lakh are the most sought after. To address this growing industry & govt’ interest, housing CoS are in the process of evolving norms for affordable homes & a specific rating system. In days to come, most architects, builders & developers plan to rebuild homes & make certain green changes to every home & ensure that they can create a sustainable lifestyle. By making few small changes one can cut down on energy usage, save money, & make a ||www.constructionmirror.com||

big impact on the environment.

Challenges faced by Construction Industry

Productivity within the construction industries over the past 50 years are remaining in a stagnant situation. The entry into a construction industry is not difficult that this marketplace is highly saturated at current situation. Competition is the main factor behind such saturation that will shrink the profit margin to a large extent. This stagnant situation will cause stagnant productivity. 63 % of the labor time is employed for waiting for the materials, traveling to area, waiting for equip., breaks, & works on planning to do certain activity. Hence the construction CoS end up between the shrinking profit margins & the productivity stagnation without generating any appreciable profit. Each year the demand for the construction projects are increasing. This also brings new & complicated design which is a big challenge for the construction industry. So, the construction firms must be choosy about the project they select. This is done by analyzing their regular pace of working & completion. Committing too many projects brings difficulty in completion & large loss. This result in dropping profit & prestige of the company easily form your hands. With the increase in the complex nature of the project, the opportunities for construction will grow. For CoS that move in thin profit margins, it becomes difficult to keep up with the increase in complexity of the project. As per the Accenture study conducted, only 30% of the largest projects in the industry are completed & delivered as per the budget signed. & the rate of projects that are completed on time are 15%. The ethics & the set of skills that is followed by a new generation will be very different from the past generations. These differences existing in a construction firm may result in certain opinion conflicts & issues of communication gap. The construction industry has been undergoing continuous growth for the past few years & it is continuing to show large growth. But the construction contractors have the remark that they find it difficult to

get qualified workers & employees for doing specific construction works. This is due to the misalignment that is raised between the number of skilled labors that are available & the number job available. This is one of the biggest issue faced at present. This construction issue requires the organization or the construction company to spend & invest on training the people for required jobs along with a provision of additional pay. Studies & opinions taken from the site engineers & the contractors say that the lack of having inexperienced labors & workers gives rise of huge safety issues. Any issue or a problem faced in the construction industry due to some error or mistake is mainly due to the breakdown of the communication between the concerned parties of the project. If everybody in a project is communicated in & all about the project about the planning details, investigation details, doubts & clarifications, permission for work commencement, a huge issue due to a small error can be avoided easily. Whatever be the size of the project, there comes an issue with sub-contractors if the work is not delivered in proper hands. This is a big problem faced by most of the main contractors. The only advice to such issues is to study about the sub-contractor before the work delivery. The opinion or suggestion about a sub-contractor can be asked to a manufacturing dealer or any other sub-contractor who you have worked with before or check the details & license of the sub-contractor & proceed with the work. It is very necessary to check whether the sub-contractor possess general liability insurance. Development of new technologies has completely transformed the construction industry. As the competition increases, more workers & competing projects are attracted. Some of the essential construction technologies are the integrated collaboration, mobile project management, & the cloud-based software. Special care has to be taken by the company while introducing the new technologies that it must not let down the workers who are working there in the traditional way. So, the

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introduction & implementation of new methods & ideas have to done slowly & under a steady condition. This patience can help in attaining greater benefits & the blowback from the employees will be minimized. This year & coming years will bring more of Building Information modeling, virtual reality, & laser scanning technology in the construction firms rapidly. Now, these technologies are becoming economical & affordable by the construction firms. The initial investment of these is bit higher, but in long run, the company will save money. Among all the industries, the construction industries are the greatest consumer of raw materials. The industry account for 20-40% of the carbon emissions. This reveals that such a consumption of resources is not ought to be sustainable bringing the environment to great risk. Two main challenges for the construction industry in environmental point of view are the climatic changes & the water management. The construction industries mainly in China & India are facing a great challenge to reduce the carbon dioxide emissions to a safe level. The method of smart planning & design based on sustainability will help in the reducing the energy consumption & the pollution caused to a large extent. But this will demand for a new approach in the field of project management. We all know that the construction work is not always smooth & perfect. If a mistake is observed, many fingers will be pointing towards each other; i.e. contractors will blame the sub-contractors, the owner will blame the contractor, the 32

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engineer blames the owner etc. Such situations must be faced by considering the builderâ&#x20AC;&#x2122;s risk policy. This type of insurance will help in covering the project & any principle works that is to be done on it. The issues that can come under such policy is the building disruption due to environmental disasters or due to theft or vandalism.

Challenges faced by Reatly CoS in India

Housing remains & continues to be the most lucrative investment opportunity known to Indians over the last three to four decades. Investments in housing sector are witnessing an unprecedented growth with suburbs & rural pockets gaining prominence to suit the requirement of varied investors. Real Estate CoS is going all out to gain a slice of the opportunities available in the suburbs & outskirts. The RE CoS through marketing efforts are extending many facilities to tap investors to invest in their ambitious projects. Now, it is imperative to understand the nuances of the RE industry from the Developers perspective. The high risk of default in handing over possession of the units to the investors has become a major cause for concern for buyers. Builders with excellent reputation of meeting commitments are performing relatively better than the rest in the pack. Delay in handing over of projects on time has led to a poor demand in recent times & thus the inventory of the developers is piling up & causing great unrest in the builder community. Banks are vary of extending loans as some of the builders have come on the black list of

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the banks & now banks are forced to classify the loans as non-performing assets. Numerous litigationâ&#x20AC;&#x2122;s have been filed against developers by Bankers, the Investors & by the Creditor community. These litigationâ&#x20AC;&#x2122;s have made matters worse for the investors. Deadlock in the construction activity has become a major issue for every investor as their funds have got blocked & the handing over of the possession has been postponed indefinitely, leaving investors in a dire situation. Land being the most crucial aspect of all projects, the first concern for every developer is to ensure that the title certificates of the land parcels on which development is to be undertaken is clear from any & all defects with respect to the title. This will ensure that the development activity can be taken up with no apprehensions in respect to the ownership of the particular land under consideration. Solicitors & Advocates, along with the assistance of search clerks carry out search of the land for over 60 years to satisfy themselves as to whether the title is free from defect. Review of Title Certificate may come across as a simple task for a common man. This is by far one of the most difficult aspects of a Real Estate transaction. Numerous decisions by various High Courts & Supreme Courts have only raised red flags about defective title certificate. Thus, Solicitors, Search Clerks, Banks, Financial Institutions etc. thoroughly inspect revenue records & also circulate public notice to get a comfort on the title certificate ||www.constructionmirror.com||

After complete satisfaction of the title certificate, review of court orders, if any, Developers & the prospective buyers decide to go ahead or skip the investment in the project. The law in India does not require any Developer to issue Public Notice for carrying out development work on a particular land. However, it is considered as a good practice by RE Developers to issue a Public Notice & call for objections, if any from third parties & from parties who purport to have interest in the said land parcels. The challenge here is, even if there are no oppositions received after the expiry of the time frame mentioned in the Public Notice, the Developer cannot prohibit the claims made by a third party claiming any interest in the said property. Chances are that this aspect may get into litigation between the Developer & the opposing party. No price for guessing, the project may only tank or get delayed if these issues are not resolved. Mumbai is amongst the most fertile ground for development of RE. However, land being a scarce resource & considering the topography of Mumbai, RE Developers have made a conscious decision to set up projects in the outskirts/suburbs & rural areas. RE Developers have begun to earmark their funds only for projects which are lucrative. In the rural areas, the authenticity of the ownership of land is ascertained by reviewing the 7/12 extracts & in the urban area the authenticity is confirmed by reviewing Property Card. Index Card is the record of the local authorities & this confirms the details of buyers & sellers in the Govt’ record. Many a times, there are multiple entries in the 7/12 extracts, Property Card etc. & this possess a major challenge to the parties involved. Project Funding leaves most parties gasping for breath. The Developers often face an uphill task when it comes to rising funds for the development. Improper planning & coordination leaves the parties in a confused state. The Developers /Land Owners/ Aggregators etc. come under severe pressure if funding is not kicked in at the appropriate time. In order to ensure ||www.constructionmirror.com||

smooth operations, the RE Developer should have absolute clarity with respect to the mode of funds raised by it. Funds can be raised by way of Equity/ Preference Shares/ Debentures/ Overseas borrowing etc. All these modes are unique in their character & have different risk perceptions from the Company’s & investors perspective. Collateral security is another aspect to be furnished by Developer to the Banks/Financial Institution/NBFCs etc. Unless the RE Developer makes best use of the borrowings & ensures to create a leverage effect. creation of a charge stresses the operations of a RE Developer, Red tapism has been the order of Indian economy from the last 6.8 decades. Govt’ corporations & Local Authorities have very rarely taken proactive steps in facilitating growth & development of pvt. sector. Even till this date, delays are faced in obtaining Intimation of Disapproval (“IOD’s”) or in obtaining Occupation Certificate (“OC”) or Completion Certificate (“CC”) & this phenomenon is faced by most developers. Delays have a direct impact on the projects, increased cost and/or potential dip in the quality of building etc. At times, there may be a variation in the built-up or carpet area agreed to be transferred & the actual built-up & carpet area which will be ultimately transferred. Any adverse variation has an impact on the Developers margins & also has a direct impact on the investors (buyers) pocket. Whether to advertise in print media or digital media or by word of mouth or other avenues remains a major challenge. Recovering these costs from the buyers is often a difficult task for Developers. Whether the cost forms part of the per square feet recovered from the buyer & how accurately this is measured is always a challenging task. Sometimes the Local Authorities lay down restrictions for development of parks, play grounds etc. & only then will the mandatory certificates will be issued. Furnishing Bank Guarantees etc. to the Local Authorities is always stressful & a major challenge. Sale of property in held in stock (unsold flats) will be treated as business income.

However, It so happens that builders account unsold flats as work in progress & these get converted into income only after allotment of flats to the purchaser or after receipt of full & final consideration. This creates a situation of deferred tax asset/liability & also lays stress on cash flows in the year the work in progress is converted into sale. Valuation of work in progress is sometimes arbitrary & this may result in overstating profits in the year of inflation leading to higher payment of tax, when the company is yet to realize all its revenue in cash. The construction industry offers a lot of opportunity for employment but most of it is restricted to manual jobs. Due to the low wage expectancy of workers, who mainly come from the rural areas in search of work, contractors still follow traditional work practices. This doesn’t just reduce the efficiency of the process but also makes it a lot risky. As many as 70% contractors believe that there is lack of skilled workforce & qualified/ certified professionals. Though the demand for housing & commercial projects in the cities has been increasing, supply is highly limited due to non-availability of land & the rising costs. This makes most construction projects non-feasible & the implications fall both on the contractors & the buyers. Material prices too have increased over the past few years & building high-quality properties with the right technology & materials has become a very costly affair – something that doesn’t attract the general buyer. The cost of construction materials, especially after the implementation of GST (Goods & Service Tax) has undergone changes. Most materials used in the construction industry, especially those in the high-end category fall in the 28% GST slab. This has grown up to be a big challenge for all stakeholders. Technology has been a big differentiator in the construction industry today. This is especially pressing with international investors pouring into India. Technologically efficient builders are attracting collaborations in the higher end & businesses that follow traditional means are falling behind. Elements like

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Virtual Reality, AI security, & BIM are transforming the trends today, both in the commercial & housing sector. It is necessary that all competitors start getting technologically efficient to live up to the challenge of technology. Modern construction projects are getting more demanding, both in terms of design & functionality. The challenge is alleviated by the lack of skilled labor & latest technology with most investors. Firms consequently are getting selective into what projects they will be able to accept. A report by Accenture suggests that only 30% of firms have been able to deliver projects in the agreed budget & 15% on the agreed time. The govt’ too plays a pivotal role in guiding the construction industry in India. Being the policy-making body, it rests upon the current govt’ in power as to whether the current policies are in favor or against the general acceptance of the industry. The construction industry is responsible for 25-40% of the carbon emissions on a global scale. In the Indian perspective, this is even more pressing as traditional means of manufacturing & construction is a large part of the process even today. Climate change & environment is a global agenda & govt’s across the world are pushing towards environmentally sustainable practices. New norms & regulations require CoS to become more technology advanced & acquire skilled manpower. Caring about the environment is no more just a social obligation but a legal requirement. Being a tropical nation, India is prone to a lot of climatic disasters, especially floods that happened every year. Big cities like Mumbai & Chennai have been 34

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under havoc continuously in the past years & this has been a huge challenge for the construction industry. However, this might be the only challenge that the industry will continue to live with while building ways into more sustainable & safer building practices.

Challenges faced by Construction Manager The very nature of construction introduces challenges. typically not encountered in other industries. For example, construction differs widely from manufacturing in that: the work is often seasonal, each project is unique, often involves remote sites with various access problems, the process is not as predictable, difficulty in applying automation, there is high potential for encountering unforeseen conditions, costs can vary according to conditions, difficult to manage & supply utilities & other resources, technical innovations are adopted slower, success is dependent upon the quality of its people, very custom-oriented, product can be of mind-boggling size, cost, & complexity, the work is not performed in controlled conditions, therefore highly impacted by weather & other environmental conditions. Weather & construction have been at odds since the beginning. Today’s meteorologists have a vast array of tools such as Doppler radar, satellite, & computer modeling. These tools enable the meteorologist to predict weather patterns & events with some degree of accuracy. However, even with the most sophisticated technology available, forecasts are still subject to wide variability & questionable accuracy. Even if meteorologists

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could predict weather to a degree of accuracy of ±5%, the impending weather events cannot be modified or delayed. The construction manager remains at the mercy of the weather. This fact is particularly troublesome to those engaged in heavy civil work, site development, & activities that involve earthwork or other weather sensitive operations. Those located in northern climates often have limited construction seasons. Weather related delays or curtailments are especially unwelcome in today’s highly time driven construction environment. Weather is one of many variables that the Construction Manager (CM) cannot control. The CM must recognize the impact of weather & mitigate the effects whenever possible. The nature of the work is changing to include more retrofit, rehabilitation, & restoration (RRR) along with new work. RRR work introduces greater risk into the process. These risks include limited or non-existent as-built information, maintaining existing facilities during construction, & the various other difficulties associated with marrying new work to old. Work in urban settings is further complicated by the growing presence of utilities that must be maintained & protected through the course of construction. Damages accrued from the interruption of services such as communications can be very costly, to the point of bankrupting the constructor. Construction work rarely occurs in isolation. The surrounding built environment must be safely maintained & preserved during construction. As is the case in any business, people are a construction organization’s greatest ||www.constructionmirror.com||

resource. Construction operations depend on the knowledge & skills of people planning & executing the work. The quality of this most important resource: people, is what distinguishes one team or company from another. Having talented management in place to guide & direct operations is crucial. Obviously, having an adequate number of skilled & unskilled workers to perform the work is a bare necessity. Finding & recruiting sufficient numbers of skilled, talented people is becoming increasing difficult. There are several factors contributing to this problem. Construction is typically viewed as being one of the least desirable industries in which to work. Surveys among the nation’s youth show construction at the bottom of the list of professions that they would enter. Construction by nature is dangerous, dirty, hard work. Other industries or professions offer preferred work environments that are cleaner, safer, & generally more desirable. The pervasive growth of technology & the associated industries that have followed are attracting the youth away from traditional industries. Consequently, there is a severe shortage of bright, talented people willing to work in construction. Empowerment leads to high levels of commitment, enthusiasm, self-motivation, productivity, & innovation. Benefits to the employee include feelings of appreciation, belonging, & heightened self-worth which motivates them. Empowerment enables employees to make decisions for which they are accountable & responsible. Research indicates the level of empowerment does influence productivity. A high level of empowerment yields correspondingly higher productivity. Empowerment of the workforce is one of the keys to improving construction performance. Safety remains an ongoing concern for the construction manager. Construction by nature is inherently dangerous, with a high degree of hazard & risk. The toll of construction accidents is high in terms of both costs & human suffering. Accidents add a tremendous burden of needless & avoidable expense. Financial loses pale when compared to bodily ||www.constructionmirror.com||

injury & death, & the resulting human, social impacts. Protects the contractor from certain direct expenses, but accidents also involve substantial costs that are not insurable, referred to as hidden or indirect cost. The CM must be concerned with the issues of safety for several reasons including: Legal obligations imposed by OSHA, Contract requirements , Direct & indirect financial impact (profit picture), Corporate & personal legal liability (fiduciary duty) , Ethical duty & moral obligation, Public image & reputation. The courts charge the employer (management) with the responsibility of providing a safe place to work; safe appliances, tools, & equip.; developing & enforcing safety rules & regulations; & providing instructions regarding employment dangers. Keys to a successful construction safety program includes: support & enforcement from top management, front line management (superintendents & foremen) consistently following & enforcing the safety program, on-going & comprehensive training, & recognition by all employees that safety is everyone’s job. Time is money to owners, builders, & users of the constructed facility. From the owner’s perspective there is lost revenue by not receiving return on investment, cash flow crunch, potential alienation & loss of clients/ tenants, extended interest payments, & negative marketing impacts. From the users’ perspective, there are financial implications similar to owners. Delays in upgrading facilities translate into operating at below optimum efficiency resulting in higher user cost. Delays in constructing or rehabilitating Infra’ negatively affects businesses & the public at-large. Time implications from the constructor’s perspective include liquidated damages & incentive/ disincentive payments. Delays result in extended overhead costs & put a crunch on critical cash flow. Extending project durations limits the constructor ’s bonding capacity & ability to bid more work (opportunity cost). Inefficient time management results in higher labor & equip. costs. A reputation for late completions is bad for business,

especially in negotiated work. In today’s intensely time driven business environment, superior planning, scheduling, & control are vital. The CM is faced with the challenges of completing high volumes of work within tight time frames, & generally finite resources. CMs must comprehensively plan construction operations & closely monitor progress. CPM schedules & linear schedules are valuable tools that provide several advantages in managing construction operations. Schedule preparation requires managers to think the project through prior starting the work & provides a structured approach to planning. Comprehensive schedules provide a means of communicating the work plan to others. Schedules must be an accurate portrayal of the work plan to realize the full value. A good, regularly updated schedule in the hands of a competent CM is a powerful tool. Good schedules are critical to project success; however, they are only a tool. Schedules do not build things; people build things. Proactive rather than reactive control by the CM is a key to staying on schedule. Events or conditions that cause delays & require appropriate action include weather, lower productivity than anticipated, delivery problems, resource constraints, changes in scope, & differing site conditions. The CM must manage or mitigate these situations in order to deliver a constructed project on time. Time is of the essence! Nearly all segments & sectors of the industry are affected by one or more environmental issues. Strict regulation, permitting requirements, & enforcement are designed to protect human health & the natural environment. Failure to comply with environmental regulation can result in project delay or termination, disqualification from future work opportunities, fines, civil action, & even criminal prosecution. It is paramount that CMs have full knowledge & understanding of environmental regulations & permit requirements. Individual states, counties, & municipalities have laws that supplement or are even more stringent than the Federal regulations. It is imp that

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owners recognize their cradle-to-grave responsibilities. Environmental concerns that impact construction include erosion & sedimentation control, wetlands & parklands, leaking underground storage tanks & contaminated soil, lead paint removal, asbestos, hazardous waste, dust control, & noise. All of these concerns increase the organization’s risk, which the CM must address & effectively manage. Ignorance of the law is no excuse & can place the project, owner, constructor, & CM in jeopardy. The number of civil actions is growing at an alarming rate. Businesses across the board are at great risk because of liability & other legal implications. Not many industries are exposed to greater risks from legal issues than the construction industry. Construction business is conducted through contractual arrangements that at times results in disputes. Claims & disputes have been steadily on the rise for years. A claim is a request by a contractor for additional compensation or time extension for occurrences beyond the contractor’s control. The contractor must prove entitlement & quantify the associated damages. Timely notice of claim upon discovering impact is required. The owner has a duty to provide adequate, accurate data to the 36

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bidders, & is liable to the constructor when inaccurate data are given, extras develop because of improper design, or the design is significantly changed after the contract is signed (constructive change). Change in scope & differing or unexpected site conditions are grounds for a claim. The various types of claims include delay/disruption, extra work claims, acceleration, impossibility-ofperformance, defective design (error or omission), interference, & superior knowledge claims. The industry continues to seek less adversarial methods of resolving disputes & settling claims. The motivation is to reduce costs by equitably resolving issues before they escalate into litigation. Alternative dispute resolution (ADR) practices have been employed with some success. ADR methods include negotiation, arbitration, mediation, neutral advisors. ADR has demonstrated great value in resolving issues to the satisfaction of both parties. However, in some cases litigation is unavoidable. It is usually undesirable, but sometimes the best method for final resolution. Claims in general are bad for the industry. All parties must work to reduce the frequency & magnitude of claims. The CM plays a central role in claims avoidance & resolution. Claims avoidance begins in the pre-construction

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phase; a time with the greatest potential to influence cost. A large percentage of claims could be avoided by generating comprehensive, accurate, contract documents. Preconstruction claims avoidance requires intensive document & constructability reviews. Careful consideration should be given to the construction means & methods during the design phase. Designs should allow construction using the prevailing methods & equip., specify a level of workmanship consistent with the quality of the project, & not require the constructor to assume responsibility for information that should be furnished by the designer Specifications should be simple & straightforward, clearly stating what is expected. CM input during preconstruction reviews is invaluable. The constructor must have a clear understanding of contract requirements prior to bidding. Keys to avoiding claims during construction include good administrative procedures, open & honest communication, & timely troubleshooting. Increasing govt’ regulation is another of the challenges facing today’s CM. Along with increasing environmental & safety laws, the industry is coming under greater regulation through the construction codes & licensing requirements. State ||www.constructionmirror.com||

& local municipalities adopt model codes.. These codes provide for public safety by establishing min. construction standards for structural integrity & fire safety. Local building codes are based on one of the model codes, but often include modifications that are unnecessarily restrictive. Some local codes are outdated & obsolete & prohibit the use of often superior, cost-effective materials & systems. Permitting requirements, contractor licensing laws, & the associated cost are also escalating. Quality of code administration is also a concern as are the delays caused by waiting for inspection. Public works projects that receive Federal or State funds are also subject greater process & administrative regulation. Timely resolution of issues is often entangled in bureaucratic red tape. Socio-Political pressures have more impact on construction than in the past. Political pressures & community involvement affect public & to some extent, pvt. sector work. Pressures emanate from adjacent property owners & the public at-large, including existing businesses, institutions, & residences adjacent to the constructed facility. Civic organizations & community groups have more input into design & construction of public works projects, & greater impact on pvt. work through ||www.constructionmirror.com||

the land use & planning process. The community has greater input through citizen advisory boards that are engaged during project initiation, design, & construction. Today’s CM has substantially greater accountability to the public than previous generations. Increasing the number of stakeholders further complicates an already complex process. Socio-political pressures also stem from the NIMBY syndrome (not in my back yard). The NIMBY syndrome stymies growth & development, & generally hampers construction. The obstacles caused by the NIMBY syndrome typify the challenges facing today’s CM.

Conclusion

The Agreement For Sale should be freely tradeable in the market backed & should be backed by SEBI or any other recognized Govt’ body. An institutionally backed up Regulatory Authority to be set up by the Govt’ of India & backed by local State laws/State specific Rules. New instruments should be created in the market to facilitate growth of the Real Estate Sector & simultaneously protect the interest of small & individual investors. Real Estate Developers will continue to face challenges despite there being a marked increase in disposable funds. In order to ensure a sustainable growth, The Govt’

should be proactive & institutionalize this sector. After all the second largest sector in the Indian economy should get its due credit & unless there is a paradigm shift or change in Govt’s attitude by implementing new laws & better regulations, no significant improvements could be seen in this thriving sector. Today’s CM faces many challenges, stemming from a variety of sources. These challenges can have an impact on project success. CMs must be keenly aware of the risks & implications of these challenges. The challenges listed in this report include situations & conditions that must be proactively managed by the CM to ensure project success. Many of these challenges are a direct result of construction operations, while others are result of indirect, peripheral activities. Construction issues include workforce considerations, safety, time constraints, & the changing nature of the work itself. Non construction challenges that CMs face that are part of the business landscape include legal issues, govt’ regulations, environmental concerns, & socio-political pressures. Excellent CMs understand & navigate through these realities. CMs that are able to master obstacles gain a competitive advantage. Excellent CMs transform risks into opportunities. Excellent CMs understand the business, legal & social aspects of construction. They act as responsible stewards of the environment & observe all applicable laws & ethical practices. Excellent CMs value the people they employ & work to ensure their safety & promote their well-being. Excellent CMs proactively manage operations to achieve the project’s quality, cost, time, & scope requirements. The excellent CM strives to avoid & resolve conflict & promote harmony among all project stakeholders. The excellent CM adapts to the changing business, social, & legal environment, & leads the organization through the challenges it faces. The years ahead are crucial for the Indian construction industry, especially when it’s trying to make headway into the global standards. Technology & training will become the key answers to the problems & to bring back the confidence in its growth.

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INTERVIEW

CB116, the latest addition in JCB compaction range comes with a revolutionary Telematics TechnologyJCB Livelink. Furthermore, for the first time in the industry, JCB introduced a Compaction Monitoring System which helps in achieving consistent & uniform compaction.

Jasmeet Singh

Head Corporate Communications and Corporate Relations

JCB India Limited

Q. Brief on JCB India’s Road

Construction Solutions?

JCB India offers three world class products in the road compaction equipment segment - the VMT330 (a 3T Class Mini Tandem Roller), the VMT 860eco (a 9T Class Tandem Roller) and the JCB116 (a 11T Class Soil Compactor), the latest introduction in the Compaction range. The JCB116 Soil Compactor is the latest world-class machine that comes equipped with a state-of-the-art JCB Diesel Max engine, which provides fuel savings in the range of 5-10%. Equipped with a variable fan as a standard issue, the engine delivers a massive 430Nm of torque at low engine speeds for optimum responsiveness. It provides unmatched fuel consumption in its class of machines. To make compaction operation more efficient, Compaction Monitoring System (CMS) has been introduced in the JCB116 - an industry first feature from JCB India. Integrated with JCB’s Livelink technology, CMS allows operators to monitor compaction in real-time,

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thus enhancing machine and operator efficiency. The first ever CMS in India with telematics connectivity, it enables consistent and uniform compaction through precise measurement and with accuracy. Suitable for both asphalt and soil surfaces, it allows operation in two modes – auto and manual, displaying both frequency and amplitude of vibrations. JCB also offers the VMT330 Mini Tandem Roller and the VMT860eco Tandem Roller in its compactor range. The VMT330 Mini Tandem Roller is best suited for applications such as highway road shoulders, retaining the walls of flyovers, for the compaction of road shoulders, footpaths, trenches, service roads, industrial and residential columns and rural roads. The VMT860eco Tandem Roller is equipped with the latest hydraulics from Germany. The machine offers greater visibility for ease of operation and is equipped with an automatic water sprinkler system which minimises the effort. Both these machines have an auto dust removal system and provide unmatched operator comfort which

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ultimately increases efficiency and maximises productivity. All JCB compactors offer lifetime lubricated center joints and also offer grease-free bearings. This saves the costs of lubrication and also reduces the possibility of failures due to any negligence in greasing the joints. In our range of world class Compactors, vibrations and heat levels are kept lowest to provide a comfortable work environment. Moreover, operator friendly and ergonomically located controls with joystick help in easy machine operation. The machine cabins are designed keeping the operator comfort in focus. Our range of Compactors features best-in-class advancements which not only enhances the work experience, but significantly reduces fatigue. In our range of world class Compactors, vibrations and heat levels are kept lowest to provide a comfortable work environment.

Advanced technologies in the products?

Roads and Highways continues to be a

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strong growth driver for the Construction Equipment Industry and many big ticket projects have been announced and implemented by the Government in this sector. However, ensuring timely completion of these projects not only demands the best quality output, but also creates a need for specialised, intelligent and technologically advanced construction equipment. To fully leverage the opportunity in the Road Construction sector, JCB introduced a wide range of innovative and intelligent machines which exhibit a blend of technology and digital innovation to meet the demand for world class machines to build India’s Next Gen Infrastructure. The latest Compactor from JCB, the 11T Soil Compactor – the JCB116 comes with a revolutionary telematics technology –JCB Livelink. This stateof-the-art technology enables users to get SMS alerts on their mobile phones or smart devices regarding service alerts, operations and security of their machines. The information is available in real time regarding the health of the machine including engines and gives vital information to the customer in terms of number of hours the machine has ||www.constructionmirror.com|| ||www.constructionmirror.com||

been operational, service intervals, fuel levels, malfunctions if any, etc. It thus enables better site management and equipment utilisation. In addition to this, JCB India, for the first time in the industry, introduced a Compaction Monitoring System integrated with Livelink in JCB116. It provides Relative Compaction value which helps in achieving consistent and uniform compaction throughout the patch. JCB Compaction Monitoring System digital display shows High/ low frequency and amplitude values for compaction control. This versatile system is suitable for both Asphalt and Soil Surface. JCB116 is built with highly reliable and latest hydraulics components from Germany. Full access is provided for all hydraulic and engine components for easy serviceability.

About Intelligent Compaction?

Intelligent Compaction technology is a

concept which is being well accepted and is generating interest among customers. JCB India is the first manufacturer in the industry to offer an in-built Compaction Meter which ensures uniform compaction as the operator exactly knows where to stop and the number of passes that are required to achieve the desired density. This leads to a uniform compaction density and savings in Fuel as well as time. It helps in reducing the number of passes and also avoids over compaction. In order to make compaction operation more efficient, Compaction Monitoring System (CMS) has been introduced in JCB116 by JCB India. The first ever CMS in India with telematics connectivity, it enables consistent and uniform compaction through precise measurement and with accuracy. Suitable for both asphalt and soil surfaces, it allows operation in two modes – auto and manual, displaying both frequency and amplitude of vibrations.

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INTERVIEW

Complete range of solutions provided by JCB?

JCB’s machines have been contributing to the development of India’s infrastructure for close to four decades. To leverage the growing opportunities in the Roads and Highways sector, JCB introduced a wide range of Made-inIndia Road Construction Solutions in early 2017 which aims at contributing and expediting the building of Roads and Highways in both, rural and urban India. Through its Premier Line Road Construction Solutions, JCB now provides a full solution of products, training, monitoring, parts, and service, backed by the largest distribution network in India. Moreover, to ensure that customers derive the maximum from our machines, JCB recently introduced “Premier Line Solutions” which are specifically designed to give maximum value to customers through a comprehensive range of customised support packages. These packages offer real time and proactive product support solutions.

Products included under the JCB Premier Line Solutions are the JCB 220LC Xtra, the JCB 305LC, the JCB 380, the 455ZX Wheeled Loader and the JCB116 Soil Compactor. In December 2017, during Excon, JCB showcased the latest range of product solutions which are not only based on the evolving customer trends, but come integrated with latest technologies i.e. Internet of Things and Big Data. It was in Excon that JCB introduced the JCB 116 Soil Compactor with a Compaction Monitoring System (CMS) - first in the industry. This unique system not only improves the quality of compaction, but also provides real time alerts on over-compaction. The on-board Digital display for real time monitoring ensures accuracy in compaction, helps to reduce number of passes and saves fuel and time. Moreover, JCB introduced the Loader Productivity Management System (LPMS) in the JCB455ZX Wheeled Loader which helps in real time monitoring of individual weight of loaded bucket, Total Accumulated Weight, Tare weight, and Number of loaded buckets.

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Its integration with JCB LiveLink is another Industry First that is used to transmit the monitored value to server for analytics and report generation.

JCB India’s vision by 2020?

Given the investments earmarked by the Government for the Roads and Highways sector, we foresee a considerable growth potential in the Road Compaction segment. There is a requirement for building a world class road network in India, both in the urban and rural parts of the country which presents a significant opportunity for the OEM’s as building roads will require world class road compaction machinery. At JCB, we have strengthened our range by introducing a wide range of innovative and intelligent such as a 11T Soil Compactor, 5T Wheeled Loader, 38T Tracked Excavator, and a Backhoe Loader which is equipped with all the latest features and technology that are essential for building long lasting roads. With our Road Construction Solutions, we are fully prepared to leverage this opportunity.

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ndustry Focus: Construction Equipment

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rends Driving CE Market

In India, there is a potential ground of opportunities for the construction sector. The country is in a crucial phase of development where numerous projects are running in different regions, propelling the demand for CE’s. Analyzing the developments taking place over the decade, there has been sig. advancement in the sector. On the supply front, the market has evolved on technology, product utility, variants & price fronts. Almost all major CE CoS across the globe have established presence in India either as joint ventures with Indian CoS or as independent entities. Similarly, on the demand front, the Indian consumer has realized the importance of value proposition rather than money, thereby shifting the demand curve towards value driven products, more importantly quality services. Indian CE industry is projected to exhibit a cumulative annual growth rate of 19% during 2013-2018. Almost all types of building sites & construction projects utilize mechanical compaction techniques. With > 60% of the cargo movement being handled by the road network, the focus will naturally be on road infra. Roads & Highways sector has been & continues to be one of the key drivers for growth for the infra sector in India. India needs roads, both in rural & urban areas to progress. GoI has shown sig. focus on building a world-class road network. Thus, there is a substantial budget outlay in successive National Budgets towards this segment. Investments that have been earmarked for this sector present a great opportunity for the OEMs. According to Off-Highway Research, the growth rate of compaction equip’ from 7.6% in 2009-10 will reach to over 60% by 2014. The total volume of compaction equip’ in 2009 was 2,787 units, which in 2010, crossed 3,000 units (a growth rate of 7.6%) & the forecast is a growth in the volume of around 4,800 units by 2014, a growth rate of 60%. Discussed below are the top trends that the market players are adapting to withstand the growing demand aided by some govt push. MoRTH, has decided to implement a ‘Value Engineering Programme’ to promote the use of new technologies, materials & equip’ in highways projects executed either under PPP mode or public funding mode. The programme aims at using innovative technology, materials & equip’ to reduce the cost of projects & make them more environment friendly. It will simultaneously ensure that the roads or bridges & other assets get constructed much faster, & are structurally stronger as well as more durable. The ministry has also reconstituted a nine-member experts’ panel for approving proposals for use of new technologies, material & equip’. NPE (National Panel of Experts) will examine all technical matters involving the new technologies, materials & equip’ referred to it by the concerned Engineers or concessionaires/ contractors. NPE will also resolve the technical issues which arise as a result of difference in views between engineers & contractors regarding implementation, besides deciding about the need for field trials of any new or innovative technology/ materials/ equip’ before its adoption.

A safer outlook

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ndustry Focus: Construction Equipment

An operator’s efficiency is paramount with regard to optimizing the output. Comfort & safety of an operator are of paramount importance as it not only ensures safe operations at the construction site, but also increases the efficiency of the operator. Hamm compactors are provided with isolated operator platform, there is no feeling of vibration of the machine. This improves the stress-free operation of the machine & improves the operator’s efficiency. Hamm soil compactors are built with patented design of three point pendulum articulated joint. The three point articulation joint connects the front & rear ends of the compactor & enables excellent directional stability & steerability & provides driver safety on difficult terrains & for the driver’s comfort. Operator efficiency is improved by the isolated operator platform, by providing comfortable seat 3 point articulation will help the better stability of the operator, operator safety & maintenance related features are in built design in Hamm compactors which include safety indication & alarms for any faulty conditions. In Hamm, machine 44

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Engine compartment is closed with FRP hood, which will reduce the noise levels by approx. 10 -12 DB, we can also provide the isolation foam as an option to reduce the noise levels further Similarly SD110BA, model of Volvo is one of the most popular compactors in the Indian market. A conveniently positioned control on the operational panel allows easy switching of work modes, depending on working conditions. The unit also offers variable drum vibration frequencies from 0-30 Hz, which is again easily adjusted from the operator’s console, allowing faster & easier reactions to changing soil types & conditions. The latest Compactor from JCB India, the JCB116 has been designed keeping operator comfort in mind. Few key features are: The in-built Compaction Meter is placed ergonomically for operator comfort thereby, helping in achieving the desired output, The steering wheel & console are designed to ensure fatigue free operation & The cab platform is mounted on 4 viscous mounts, to isolate it from any vibrations & to make the operator feel comfortable even during

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high amplitude passes. JCB’s range of Compactors, vibrations, & heat levels are kept lowest to provide a comfortable work environment. Moreover, operator friendly & ergonomically located controls with joystick help in easy machine operation.

Sustainable construction

The road sector produces the highest level of greenhouse gas, directly, through fossil energy used in mining, transportation, paving works… & indirectly through the emissions coming from vehicles. Indeed, the constant increase in the number of road vehicles & therefore of the traffic generates a substantial increase in pollution & noise disturbances. Besides, huge challenges await the road construction sector such as a cheaper & better production, construction & of course maintenance, all the more as raw materials are becoming scarce & the environmental laws are getting stricter regarding air pollution & noise disturbances. Like the rest of the sectors, the road construction sector needs to face the challenge of sustainability. India

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too is adopting the nuisances of sustainability adhering to ecological threat. With the advancements in the field of road construction technology, the construction of rehabilitated roads, which support environment providing long durability to road infra, is required utilizing alternative materials, industrial & construction wastes & by products, facilitating road travel, travelers comfort & safety together with cost effectiveness & sustainable development. Go green movement is gaining strength with increased global warming & climate changes. Going green in transportation projects implies environment friendly construction of roads with the availability of alternative materials & the unique question of disposal of non-decaying waste posing a problem for environmental protection. With increased industrialization & growth of population with increasing quantities of waste world over together with increased demand for traditional road construction materials such as bitumen, cement, aggregate etc., the question is of sustainable development. With advances in science & technology, the use of non-decaying materials such as Plastic, Blast furnace slag, Fly ash, Scrap tyres, Mine wastes, Marble dust etc., offer an economically viable & sustainable alternative towards increasing demand 46

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for better road construction. In this way these materials can be utilized in an ecofriendly way, providing solutions to their disposal with a commitment towards development of infra. Green road construction technology aims at low cost road construction, offering employment opportunities to the masses generating income at the disposal of the people involved thus improving the standard of living of the community at large. The technology also leads to appropriate & optimum resources utilization enhancing the country’s potential to grow faster by eliminating the possibility of resource erosion (depletion), it also provides an opportunity to employ alternatives which are cheaper, easily available & are ecofriendly. The need of the hour is to develop & accept the designs & technology which is environment friendly & economical feasible adding an edge to Road construction with lower cost & less maintenance.

‘Housing for All by 2022’

The Union budget 2017-2018, released on 1st Feb’17. In regards to the Govt’s aim of the ‘Housing for All by 2022’, the FM in his Budget speech proposed to give ‘infra’ status to affordable housing. Banks can now lend money to affordable housing projects under

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infra category this move is expected to boost the volume of construction activity across the country. Talking about CE, Asia-Pacific is projected to register the highest growth in the heavy CE market from 2016-21 with India projected to be the fastest-growing market in the region. Overall volumes of CE have increased to a four year high with 41.5% growth accounting to 52,100 units in 2016 compared to 36,800 units in 2015. With the Indian Govt’s target of investing about $377 bn in infra by 2019, the CE market is expected to witness a high growth in this period.

Automation & IOT

At present, there is a shift towards increasing automation, production enhancement, & safety. A lot of innovations are also taking place to develop equip’ specifically customized solution. There is an adaptation of control methodology in relation to accuracy, repeatability, & efficiency Firms are using modified mechanisms & electrical sensors to ensure safety guidelines. There is a definite shift towards adoption of newer technologies for industries as well which can be seen in specifically in the crane system modulation. With changing times there is a demand for the MHE model that yields a quicker ROI than ever before.

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Even CoS who are replacing or upgrading their existing range of material handling equip’ are inclined towards technology that is efficient. The Internet of Things (IoT) is one of the hottest topics in the construction sector, & with good reason. It influences the interaction of technological, economic, social, societal, & individual changes. IOT is being implemented in construction for data gratification & safeguarding of products. In regard to this JCB India Introduced the world’s first Backhoe Loader with an Automated Manual Transmission (AMT) & its largest Made in India 38 Ton Tracked Excavator at Excon 2017. JCB India is known for products with state-of-the-art technology & innovation in design, JCB India is now leveraging digital technology by integrating Big Data & Internet of Things in its products & services. The new range of intelligent machines exhibit the blend of technology & digital innovation to meet the demand for world class machines to build India’s Next Gen Infra. Applications such as JCB Livelink, Smart Diagnostic, Parts E-sell & Digital product manuals will re-define how customers interact with manufacturers. They are all aimed at improving the overall customer experience by providing all the important info. in real time. JCB at Excon had a dedicated “Livelink Zone” which was set up to provide a Virtual Reality tour on JCB’s Innovation & Future Telematics Technology. It gave visitors a real-time experience of the new features of its advanced telematics technology – Livelink.

Voice-recognition systems

Another trend in material handling equip’ is the growing popularity of voice-recognition systems. People understand the benefits of using a hands-free communication system & being trained to use this technology for minimal error in operations thereby leading to increased productivity. Another sig. development is the emergence of M2M communications space which allows communications to happen between Machines. There is also a move towards the products are environmentally-friendly without sacrificing the cost competitiveness. ||www.constructionmirror.com||

The advent of sophisticated electrical controls through various sensors & inverter drives, it is possible to achieve the same level of control & smoothness of operations using electrical drives.

Customized Machines

The fast-changing & varied requirements of a developing nation. It is no longer enough to create one machine & expect to suit the needs of all. Buyers have become more educated & demanding in terms of wanting machines suited to the kind of work & environment that they work in. The biggest example of this is the motor grader of int’l brands being obsolete for use in the construction of narrow rural roads due to its size despite the technology being more advanced & quality of machines being superior. There is no doubt that customization is now key when it comes to the world of development. Customizations have to be in sync with the market & the on-ground realities for making the most of it. According to industry experts there is only one single language that is used for communication across the country. But with a country like India where there is no unifying language & different language is spoken in every district & state, it becomes counterproductive to have all instructions about the machine in a single language. This simple customization helps interact better with the operator. Machine Abuse & Fuel Theft Are Major issue across the country. Uncertified operators tend to work the machines inappropriately. Simple software customizations help keep a log of the machine’s data for future reference. It also helps keep track of the machine’s numbers in terms of efficiency & fuel consumption. The customized software help run troubleshooting & diagnostic measures to ensure safety & efficacy of the machines. CASE CE, unveiled its latest new product – the 752EX Vibratory Tandem Compactor during Excon keeping in mind the customization factor. The CASE 752EX is equipped with a fuel-efficient 3.9-liter 4-cylinder engine, with a mechanical injection system & internal exhaust gas recirculation that delivers 76 HP at 2200 rpm & torque of 332

Nm at 1300 rpm. This new-generation engine – developed by CNH Industrial subsidiary FPT Industrial, the worldleading manufacturer of engines, transmissions, & powertrains – provides outstanding performance, fast response times, & best-in-class fuel economy. The 752EX’s single- piece engine hood gives easy access for routine maintenance, with all daily service points conveniently accessible at ground level. The 752EX’s operator compartment features a rotating operator seat which gives the excellent front & rear drum/nozzle visibility, making the drive & compaction process easier & safer. The look of the machine is enhanced by two post canopies & by new fuel & water tanks.

Fuel efficiency & multiple applications

Whatever come or may fuel efficiency is perhaps the most pivotal point of consideration for any buyer depending on the project needs. Moreover, better the applicability of the machines, more is its economic gratification. In this regard JCB has been doing a quality service. JCB India offers a range of road compaction equip’ with three worldclass products – the VMT330 (a 3T Class Mini Tandem Roller), the VMT 860 eco (a 9T Class Tandem Roller) & the JCB116 (a 11T Class Soil Compactor), a latest introduction in the Compaction range. The JCB116 Soil Compactor is the new world-class machine that comes fitted with a state-of-the-art JCB Diesel Max engine, providing fuel savings in the range of 5-10%. Equipped with a variable fan as standard, the engine delivers a massive 430 Nm of torque at low engine speeds for optimum responsiveness. It provides unmatched fuel consumption in its class of machines. In order to make compaction operation more efficient, Compaction Monitoring System (CMS) has been introduced in JCB116 – an industry first feature from JCB India. Integrated with JCB’s Livelink technology, CMS allows operators to monitor compaction in real-time, thus enhancing machine & operator efficiency. The first ever CMS in India with telematics connectivity, it enables consistent & uniform compaction through precise measurement & with accuracy. Suitable for both asphalt &

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soil surfaces, it allows operation in two modes auto & manual, displaying both frequency & amplitude of vibrations. Escort Equip’ too is providing high end functional machines which are fuel efficient in performance. The company’s Compaction products portfolio is one of the most exhaustive in the country. Their machines are equipped with the best aggregates from leading int’l technology CoS & laden with high-end features. Ideal for road compaction & relaying, these machines are one of the most productive, economical & rugged in their segments. Their compaction range consists of Soil Vibratory Roller, Tandem Vibratory Roller & Mini Tandem Vibratory Roller. Escorts EC 2420, delivers the ideal results including high productivity & low cost of operation. Being the only one in the weight category gave it the requisite edge. EC 5250 vibratory soil compactor too has been redesigned & comes with enhanced safety. With highest gradeability & travelling speed, EC 5250 is the most fuel efficient m/c in its class.

Fitted for rough terrains

The biggest challenge of Indian construction especially tough terrains provides resistance & is always a hard work for operators. Therefore the machines have to be stringent enough to address the rough terrains. Volvo in this regard is doing an efficient service. Volvo soil compactors are versatile machines that can efficiently compact varying soils & aggregates in applications such 48

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as highways, utilities, water retention structures, as well as in the preparation of large residential, commercial & industrial sites. There are many features on each Volvo compactor which help them deliver more productivity & efficiency to users. The company’s highly-anticipated new EC200D excavator joined a host of other machinery on the Volvo CE booth at this year’s Excon 2017 in Bangalore, India. The new EC200D excavator from Volvo CE is the star of the company’s line up. Volvo is expecting strong interest in the EC200D, which has been specifically designed for general construction work. Featuring Volvo’s famed fuel efficiency, the new machine also has a bucket breakout force of 123 kN & an arm tear out force of 96 kN, which help it deliver high job site productivity & fast cycle times. Alongside the EC200D was its sister machine, the EC210D. Like the EC200D, the EC210D is a 20-ton rated machine, but it has been tailored for more heavy-duty applications, such as mining & quarry work, as well as general construction. The third excavator on the Volvo booth that drew large crowds at Excon 2017 was the huge EC950E. This 90-ton rated heavyweight is the largest excavator in the Volvo line. Its maximum bucket capacity is 6 m3, while its breakout force of 424 kN & arm tear out force of 408 kN help deliver the machine’s unparalleled digging performance.

An initiation towards training

Achieving man-machine integration to maximize the output keeping the cost of operations minimum is what the operator is trained for. Routine preventive & predictive maintenance

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is a part of the training to reduce the reliance of the operator for external help. JCB is quite renowned for it. Training is also an essential part of Escorts go-to-market strategy wherein the operators & mechanics are trained at an in-house facility of Escorts, Bangalore. On the side, training is also imparted to make the training more application oriented.

Applications on smaller road construction Along the ever demanding big projects, there is always a need work of small sites, which frankly could be a bit costly at times. In this regard, the Wirtgen Group offers Hamm range of compactors which are Economical & Effective. The articulated tandem rollers like the compact line HD 12 VV are perfectly adapted to applications on smaller road construction or landscaping sites. They are highly maneuverable for smaller areas & offer economical compaction on small sites. The HD series rollers like the HD 99 tandem roller made in India are perfectly designed for road construction & paving of large asphalt surfaces. Vibration & oscillation make them suitable for a variety of applications. They offer benefit to the operator in terms of comfort & visibility. The 311 soil Compactors & the 3520 Padfoot compactors for earthwork applications are characterized by high degree of comfort, outstanding ergonomic design, excellent field of vision & extremely powerful gradeability. The rubber wheeled rollers GRW 15 are used to compact asphalt pavements. In recent months, HAMM compactors have been laying the foundations for a better

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road network in Punjab. One example of this is the construction of the new National Highway NH-52 from Moga to Shahkot. For compaction of the subbase, the construction firm Dilip Buildcon Ltd. employed several HAMM compactors 311. They are “made in India” produced in WIRTGEN India’s own factory in Pune. For compaction of the subbase for the new road around Moga, Dilip Buildcon employed a total of 8 type 311 compactors. For the asphalt compaction, a number of HAMM type HD 99 tandem rollers were used. HAMM produces both machine types in its own factory in India. The 311 compactor with the unique HAMM 3-point articulation was developed especially for India in a joint German-Indian team of engineers & has been in production in Pune for some years. With an operating weight of 11 t & a 2.14 m wide vibration drum it brings high compaction force & a large static linear load of up to 30 kg/ cm to the construction site. This enables the machine to perform a wide range of tasks with ease.

Conclusion

Growing public & private infra, FDI reforms for construction sector, highway projects & growing economy has led to the overall surge of CE market in India. In comparison with procurement market of CE, rental market in India is at nascent stage but shows higher growth rate. As compared to other developed countries, India’s rental market penetration of CE is lower & is limited to Tier-I & II cities. CE for procurement market is mostly dominated by construction vehicle segment comprising of dumper, tanker & tipper trucks, followed by earthmoving equip’ segment such as excavators & loaders. According to 6Wresearch, India’s CE market is projected to reach 131 thousand units by 2022. The market declined during 2012 to 2014 owing to factors such as delay in project clearance issues & land acquisition delays. However, in coming years, owing to several construction projects in pipeline, the market for CE is expected to witness growth led by surge in construction vehicle segment, followed by earthmoving segment. While the recent times may have been tough on CE manufacturers, the industry still is brimming with optimism. This is particularly true in the case of road building machinery manufacturers since there have been signals of a spurt in road ||www.constructionmirror.com||

construction activities. With competition becoming intense manufacturers too are faced with challenges to innovate. The entry of several global leaders in the field is a welcome development, since it brings in latest technology into the market. With major players having gained a solid presence in the Indian market, the next few years could see them further consolidating their position by bringing out newer models. Indian Constructions & Equip’ market has a robust potential for growth, having been supported by the govt investments in improving infra & housing demands. It is well anticipated that Indian economy good & the GDP is currently US$1.3 tn, making it the 8th largest economy in the world, & the GDP is expected to grow about 9-10% in next 10 years. India’s promising economic condition paves way for lots of global entrants in ECE sector. Those global key players in the CE market not only establish manufacturing facilities in India, but they also do ensure they have a strong distribution channel that enables them to reach all through the country even to the more remote parts of the nation. Thus global entrants, joint ventures, FDI inflows, Infrastructural Investments, Govt Initiatives & policies will act as the backbone for the earthmoving & construction (ECE) Industry, & would strive to make the $3bn industry reach the peaks with $16-20 bn market by 2020. GoI through a series of initiatives, is working on policies to attract sig. investor interest. GoI plans to develop a total of 66,117 km of roads under different programs such as NHDP, SARDP-NE & LWE. Govt. has identified development of 2,000 km of coastal roads to improve connectivity between ports & remote villages. NHAI plans to build 50,000 km of roads worth US$ 250 bn by 2022 as part of a long-term goal of doubling the length of the national highway network to 200,000 km. Govt. will spend around Rs 1 lakh Cr. during FY’18-20 to build roads in the country under PMGSY. Govt. has decided to invest Rs 7 tn for construction of new roads & highways over the next 5 years. India’s growth story has witnessed many cyclical changes across a wide range of industries from agriculture and retail to software, IT and real estate, all of which serve as key drivers of the country’s economy. Volatility in real estate and related industries, such as

CE, has resulted in demand-supply gaps that hamper analysis of the sector and its trends. Demand for CE is a reflection of broader macroeconomic trends such as interest rates, infra. investment and liquidity, which themselves indicate the health of the overall economy. This demand equip. is expected to grow in line with the expansion of real estate development from India’s key urban centres into tier-2 and tier-3 cities. This paper provides insight into opportunities for various CE OEMs in terms of business channels, as well as outlining the market structure by manufacturers and segments while indicating the road ahead in terms of infra. requirements. The global CE market was estimated at Rs 5,551 bn last year and is expected to reach Rs 7,310bn by 2016, representing CAGR of 7.7 %. Emerging markets such as China and India are becoming increasingly important on the global stage as key players shift their production bases to Asia to drive revenue by benefitting from the region’s growing infra. investment, favorable govt. policies and mass-scale domestic markets. India’s CE market, meanwhile, outpaced global growth trends with the market estimated at Rs 208.4bn at the end of last year. Revenue is expected to reach Rs 461.5bn by 2016, CAGR of 20.5%. The sector is made up of five main segments: earthmoving equip., road CE, concrete equip., material handling equip., and material processing equip.. Earthmoving equip. and road CE account for close to 70% of India’s CE market. Backhoe loaders, which comprise tractors, front shovel/ bucket backhoes and small backhoes, account for 65% of the earthmoving equip. and road construction segment. Concrete equip. is the second largest segment with a market share of approximately 14 %. It comprises asphalt finishers, transit mixers, concrete pumps and batching plants. Material handling equip. and material processing equip. account for 10 % and 6 % of the market respectively. Cranes are the largest category within the material handling equip.. Major national and international players such as ECEL, JCB and Action CE dominate India’s CE market. Recent influx of foreign direct investment in the construction sector saw many new entries to market, either in the form of JVs with Indian CoS or by foreign firms setting up their own local manufacturing facilities.

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INTERVIEW

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.

boasts of amenities such as amphitheatre, 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.

The Indian real estate market is expected to reach $180 billion and contribute 11% to the country’s GDP by 2020. It is the second largest employer in the country after agriculture. The sector has stood up as an ideal investment option and has scope of growth. The Government of India has initiated reforms like GST, RERA on the sector to make it more transparent and customer friendly. These reforms are also responsible for the revival of the real estate in India. The country is experiencing a lot of NRI investments in the properties in cities like Bengaluru, Pune, and Ahmedabad where they can easily put up the property on rent. The real estate in India is also witnessing revolutionising changes in the market like the increasing demand in office spaces, malls and commercial properties. Office space demand in the country increased 23 per cent year-on-year in January-March 2018 with office space absorption at 11.4 million square feet during the quarter. The Government of India is focusing more on the real estate and infrastructure sector with launching schemes like PMAY (Pradhan Mantri Awas Yojna) that aims to provide housing for all by 2022 and The Smart City Project which envisions retrofitting 100 cities for easy and sustainable living. Such initiatives have contributed to the upliftment of the sector.

What are the total numbers of projects have been completed by VTP till yet, and what are the running projects?

Sachin Bhandari CEO VTP Realty

Brief us about the success story of VTP Reality and its core business?

A Pune based business conglomerate, VTP Group, a leader in construction material and construction industry, is a 30-year-old trusted company having a pan Maharashtra presence. The Group has grown to become the second largest distributor of cement in Maharashtra. Along with its journey in Construction Materials, the Group has also ventured into other avenues. Five years back, building on the strengths of the group, VTP started real-estate development as a forward integration company with VTP Realty. Over the years, VTP Realty has grown tremendously and has projects in all prime locales of Pune, building residential and commercial spaces in premium, middleincome and affordable segment, catering to each class of the society. With most of the project offerings and a special focus on delivering customer delight in the MIG segment, it aims to become one of the top five developers in Pune by 2020. Being seen as a benchmark of trust, commitment and care, VTP Realty’s three-tiered philosophy are Better Build, Better Design and Better Care. 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

CONSTRUCTION MIR ROR

A total of four projects have been completed until date. Recently we have launched two of our most anticipated properties VTP Hi Life and VTP Solitaire in the western part of Pune. The properties promise to be a perfect combination of exclusivity, elegance and style giving Pune the very best of living nestled in the lap of nature. Spread across 4.75 acres, VTP Hi Life is a two and three BHK apartment project located in Dange Chowk. This project hosts three different recreational zones giving comfort and joy to each and every member of the family. The project also offers central vehicle free podium landscape for modern homebuyers who are health conscious and seek a participative lifestyle that can help them to stay active and rejuvenated along with a G +2 level parking which is one of the tallest in the vicinity. Specifically keeping in mind the lifestyle needs of youth working class, the landscape is designed with numerous sport activities like swimming pool, jogging track, cycling track, sand pits, cricket pitch, half basketball court, yoga zone, skating rink, children’s play area, sand pit, activity lawn, tennis court, badminton court, squash court etc. In addition to this, the property also hosts facilities such as clubhouse, party lawn.The project also enjoys easy connectivity to the Mumbai-Pune-Bangalore highway along with an easy access to prime areas like Aundh, Baner, and Hinjewadi etc. The construction on site is going on in full swing with 370 families already being a part of it.

VTP Solitaire on the other hand is located at Baner Pashan Link Road. The property 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

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Q. What is the market scenario of the Real Estate sector?

Q. What are the upcoming plans of VTP,

VTP Realty is launching Hi Life phase-II and coming up with KP square and Urban Nest as their upcoming projects.

Please share your geographical locations; are you planning to expand more? Currently our projects are spread across Pune and the adjoining areas. Our focus is Pune market and gradually we will expand our market to Mumbai & Bangalore.

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CONSTRUCTION MIR ROR

pecial Theme: Building Machinery

CONSTRUCTION MIR ROR

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arth Moving & CE Industry in India

CE generally refers to the relatively heavy machines/ heavy-duty vehicles that are specially designed for executing construction (or demolition) tasks, mainly earthwork operations. An efficient, accurate, easy, & cost-effective method for the construction of complex & high-quality infra is possible only with the help of CE. India’s earth moving & CE industry has enjoyed strong growth over the last seven years as a result of rapid economic development in the country. CE (CE) can be classified into four groups – Earth moving, Road Construction, Concrete & Material Handling Equip’. Earth moving equip’ the largest group, followed by concrete equip’ & material handling equip’. To give a snapshot, the earth moving & CE is one of the most important sectors which forms around 7% - 8% of national gross domestic product (GDP). It is one of the largest contributors to economic activity, following the agriculture sector in India. Hence it acts a key driver for various infra development & to create growth opportunities to various other industries in the economy. Thus the CE industry by its tremendous growth over years paves way for valuable FDI inflows & attracted various int’l players. It is the sector which gives either direct or indirect employment to more than 30 million people in the country & hence it’s highly labor-intensive. Among the total infrastructural investment, around 60% accounts for CE. During the last two decades, we could notice that the earth moving & CE industry has made enormous progress & grown both in size & diversity.

How CE industry found its feet after slump

Given that India has an infra-deficit & needs about $7 tn over the next 7 years, this would itself trigger a Construction Equip’ (CE) business of around $180-200 bn at the current rate of equip’ penetration over the next 10 years. For every 0.5% increase in mechanization, the CE demand would rise by $30-35 bn. Winds of change are blowing across the Indian CE sector. The industry that saw a reversal of fortunes post FY’16 is currently piggybacking on Govt’s stimulants & investments to fast forward infra projects primarily development of roads & highways as well as coal mining. Big ticket Sagarmala, Bharatmala & Jal Marg Vikas projects will also give a leg up to development of rural roads & rural infra. Given that India has an infra-deficit & needs about $7 tn over the next 7 years, this would itself trigger a CE business of around $180-200 bn at the current rate of equip’ penetration over the next 10 years. For every 0.5% increase in mechanization, the CE demand would rise by $30-35 bn. CE industry had hit a rough patch during the three years FY’13-16 when infra & road building activities were subdued. Demand for construction machinery remained bogged down pushing back utilization of production capacities to 45%, a far cry

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CONSTRUCTION MIR ROR

pecial Theme: Building Machinery

from the current 75% utilization. In the present landscape, optimum capacity utilization is expected to be achieved over the next 3-4 years. There is enough capacity in the industry to meet future demand, with investments likely to be based on demand. Spurred by road & highway projects, some equip’ segments saw a spurt of 25-30% in last 9 months. Some opportunities are also emerging in railway real estate to replace ageing rail infra. The last quarter of FY 2016 showed a good surge in overall equipment sales; A positive change of 6% than the estimated figures Volume in Units 1,20,000

65,750

73,340

64,110

50,850

2009-10

2010-11 2011-12

2012-13

52,550

50,100

2013-14

2014-15

56,540

Exp

2015-16

+ 20

d c te

g ro

2019-20 (E)

Source; Feedback estimates & ICEMA data

Market Perambulations

CE industry is today pegged at $4.3 bn in value with the Feedback Business Consultancy report forecasting industry volumes to spike upto over 1,20,000 units by 2021 growing at a CAGR of 20%. Current industry volumes are close to 75000 units. Policy changes in the infra segment are expected to boost the Equip’ industry to an est. $ 7.5 bn by 2020. Loaders, excavators & compactors dominate the road sector with backhoe loaders singularly contributing the largest chunk of the sales pie- 43% growing 10% last fiscal. In China this segment chips in with 0.5% sales while North America accounts for just 8.5%. Key players in the fray are Tata 54

CONSTRUCTION MIR ROR

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Hitachi, Kobelco, Hyundai, Case New Holland, & JCB with most of the machinery sporting a local content of 60-70%. However, some int’l players like Caterpillar & Kobelco CE continue to import a larger component basket. According to the Off-Highway Research Indian Annual Review 2018, CE sales in India grew 17% in 2017-18, building on the 36% upswing witnessed in 2016-17. Going forward, the Indian CE market will continue to be driven by construction, mining & other infra investments. The macro economic situation, govt policy & availability of funding will support this upsurge. The govt is taking action to reform procedures & policies such as the introduction of the RERA Bill, along with the speeding up of environmental issues, forest clearances & land acquisition issues to boost infra development. Crisil Research estimates project execution by the NHAI at 3,070 km in FY’18 & 3,300 km in FY19 from 2,625 km in FY’17. A BofA Merrill Lynch (BofAML) 2018-19 report has given a positive outlook for the highway sector with the govt fixing the national highways project award target at 20,000 km for FY19 up 25% over the previous year. The Union Budget 2018-19 has allocated $ 92.22 bn for the infra sector. Such a frenetic pace of execution over the next 5 years will mean a further leg up to demand for CE.

Top players take competition headlong

Among the top contestants in this market, is Tata Hitachi Construction Machinery India, with a primary focus on excavators for road construction, irrigation & mining operations. Tata Hitachi saw a robust 19% upswing in sales during the last fiscal & a 30% growth in the year earlier on a low base of the previous year. The current Indian govt is placing a lot of emphasis & investments into road infra. Many ||www.constructionmirror.com||

of the states have undertaken a lot of work linking rivers & canals that has helped the railways in expanding tracks as well as in laying of new tracks that has also given us good opportunities. The company is sprinting towards an average 15% uptick over the next couple of years egged on after establishment of a stable govt post 2019 elections. A broader 10-15% growth window is on the scanner across a 5 year timeframe. The company commands a 35% share of the excavator market with its CE ranging between 2T-120T. With capacity utilization peaking at 70%, Tata Hitachi is expanding for ushering more efficiency & for optimizing production. Production capacity was upped 20-25% last year to produce an annual 10k machines. In FY’19, it will be ramped up further to 12k units per year to meet growing demand. The average ticket size of a construction machine is pegged at Rs 50 lakh. A capital expenditure of Rs 80-100 crore is on the cards funded through internal accruals for launching new backhoe loaders next month that will give a fillip to sales in the following year. Earlier Tata Hitachi was making backhoe loaders but the business did not take off. Now it is making a fresh attempt to re-enter the market with a new machine developed from scratch with the support of Tata Technologies & Hitachi. The existing manufacturing facility for the machinery will be roped in for the production. Interestingly, the backhoe loader market is dominated by players such as Case New Holland, Caterpillar & JCB & Tata Hitachi will be up against tough competition. Besides, the company is looking to up its indigenization level from the existing 65-75% over the next 3 years. CE is moving to Euro IV in 2019 for which we are awaiting emission standards rules from the govt. It is eloquent that the industry is being dominated by low end technology & cheaper machines. Consequently a level playing field was absent in India compared to global markets like Japan. In Japan CE machines meet Euro III emission norms. Lifecycle costs would be a better consideration compared to low end machines where upfront costs ||www.constructionmirror.com||

may be lower but may end up raising the operating costs by 50%. Sectors such as Irrigation, Ports, & Water Conservation have shown potential & hopeful that they will start driving demand in the coming times. The industry is working with the Govt towards integration of BS-IV (CEV) emission standards for wheeled equip’ which are due around Oct’20. New standards will lead to considerable technological advancement in the product placing CoS at par with other advanced markets such as USA & Europe. It will also contribute to the enhancement of the overall value chain of the product in terms of development, research & the percolation of this technology in the supply chain. Availability of 10ppm fuel is essential for the roll out of these emission norms & the fuel is expected to be available pan India by 2020. Meanwhile, Kobelco though well positioned in the CE market, has been constrained by the inability to match demand with supply. With a current market share of 10% it is into excavators that rake in a 20,000 unit market volume for multiple applications. The excavator market is expected to beef upto 30,000 units across 5 years when Kobelco is bullish of scaling up its market share by a few percentage points. Though earlier its localization stood at 40% it scaled back as right quality components could not be developed in India. Foreign vendors could not achieve economies of scale as volumes remained small. Kobelco sells 2000 machines annually & instead prefers to import many of the parts. It is currently beefing up its production capacity at its Sri City, Andhra Pradesh facility to 2500 units over the next 3 months & to 3000 units in the medium term.

Bad debts: A challenge

Optimistic against the backdrop of the impetus received from the govt’s infra push, Escorts CE foresees a major challenge emanating from mobilization of funding requirements for the govt projects. Large bank NPAs arising as projects run into problems & turn into bad debts has prevented contractors from accessing fresh funds for development projects. Machines

are also becoming more advanced & require trained operators to man them. While the Govt is working on skilling operators & providing them subsidy for taking up training programmes, ICEMA has also joined hands for conducting certified courses. Escorts has also set up a separate not-for-profit company, Escorts Skill Development for imparting skilling initiatives to operators. The private sector needs to be given the required comfort for their active participation. Some positive initiation has already been taken by the govt through HAM (hybrid annuity scheme), & of FDI & we are sure much more will be done to bring back the interest of the private sector in the Infra projects. The company’s Vision 2022 includes benchmarking aftersales wherein IoT will be proactively leveraged as a tool to service the needs of the machines. JCB is also harnessing digital technologies in CEs through the integration of IoT & Big Data through an advanced telematics technology called JCB Livelink. Escorts is betting on entering new product categories as well as new product platforms. R&D investments are being enhanced to develop products supported by in-house expertise, foreign associations & technical tie-ups. Escorts recently forayed into excavators, wheel loaders & dumpers with an exclusive distribution agreement with CE major Doosan Infracore of S.Korea. Its heavy duty machine Jungli 4X4 model will soon see the launch of the 2WD option. Safety features such as anti-toppling, anti-lifting & operator sensing technologies available in City series of cranes will soon span the entire portfolio of cranes as an option.

CE industry is essentially of domestic consumption

While the story of the CE industry is essentially of domestic consumption, commodity prices like steel have seen a hardening over a short to medium term & stabilization over the long term. With the tailwinds of demand blowing in favor of the sector, all major players in the reckoning are optimistic of its positive impact. Of late, the sector’s exports were under strain as CoS competed to meet domestic demand. For Kobelco,

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CONSTRUCTION MIR ROR

pecial Theme: Building Machinery

exports till 2015 constituted 30% of the total product basket mainly to South East Asia –Myanmar, Indonesia, Malaysia, West Asia, East Africa, Jordan, Saudia Arabia, Ethiopia & Tanzania. At present, the export share has dwindled & become negligible as no spare capacity is available in the Indian plants. Hence exports have been shifted to global facilities. For JCB India, exports rose from eight countries in 2011 to > 90 in 2018. With most world markets coming back on the growth path, the company feels that its exports from India will only rise going forward. Further, Tata Hitachi exports to Middle East & Africa as well as neighboring countries with a key global trend being modern machines & connectivity. 30% of the machines are fitted with telematics on site that could ascertain fuel efficiency, health check of the engine, transmission, how the machine has worked, & access all info. online. This telematics trend is set to capture Indian market in a couple of years giving competition to Europe & Japan.

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Market Drivers, Opportunities & Challenges

According to the report “Construction & Mining Equip’ Market ” by MarketsAndMarkets, the global CE Market Worth $125.4 Bn by 2019. Among which Asia-Pacific is the Largest & Fastest Growing Construction & Mining Equip’ Market, & these markets have a potential to grow with a promising CAGR. Based on the report by A.T.Kearney & ICEM), In India, over the next few years the “Earth Moving & CE (ECE) is expected to grow at a tremendous CAGR of 20-25%. Currently ECE market accounts for only $3 bn, but its growth potential is more in near future, such that the market would be around $16-20 bn by 2020. Indian ECE market has the greatest capability to grow at 20-25% to reach 330k-450k unit sales by 2020. Construction industry of India is an important indicator of the development as it creates investment opportunities across various related sectors. The construction industry has contributed an est. ₹6708 bn to the national GDP in 2011-12. The industry is

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fragmented, with a handful of major CoS involved in the construction activities across all segments; medium-sized CoS specializing in niche activities; & small & medium contractors who work on the subcontractor basis & carry out the work in the field. In 2011, there were slightly over 500 CE manufacturing CoS in all of India. The sector is labor-intensive and, including indirect jobs, provides employment to more than 35 million people. According to “Construction Market Report by DMG Events”, by 2012, the CE industry’s revenues were US$ 5.1 bn, but by 2020 it is est. to reach by US$ 22.7 bn. In the same way unit sale of CE is projected to reach to 82,000 by 2016 from 61,745 in 2012. Also the demand for CE in India is expected to grow to US$ 9.9 bn by 2015, at a CAGR of 24.1% (from 2011). Based on a report by Ipsos research, the global CE market was est. at INR5,551bn last year & is expected to reach INR7,310bn by 2016, representing CAGR of 7.7%. India’s CE market, though smaller in size, yet it outpaced global growth trends with the market est. at INR208.4bn at the end of ||www.constructionmirror.com||

Indian ECE Industry Market Size (INR bn) 461.5 377.1 308.2 208.4

2012

last year. Revenue is expected to reach INR461.5bn by 2016, CAGR of 20.5%. Based on revenues, among CE industry, Earth moving holds the largest share of around 68% whereas the remaining 32% contributed by Concreting/ Road Construction/ Material handling / Material Processing. In India, 71% of the sector comprises of public limited CoS including PSU’s & 29% private limited, or joint ventures including closely held private limited CoS. It is notable that there were cumulative FDI inflows of US$ 209.4 million in earth-moving machinery in the period Apr’00-Mar’14. Projected ECE Equipment sales in India 450 20-2

180 76 2012

2016

~$3bn

$7-8bn

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2020 $16-21bn

252.3

2013

2014

2015

2016

The overall growth in the CE industry in India is correlated to the overall level of infra development as well as growth in construction activity. Increased urge to develop infra is attracting the major global players towards India. Great news is the Planning Commission had projected a USD 1 tn investment in infra for the 2012-17 period with 40% of funds to arrive from the private sector. Increased construction activities create favorable conditions for foreign direct investment in the equip’ sector. For attracting such investments, the govt has eased certain FDI norms related to infra development. If everything happens in-line, & industry’s full potential is realized, then there is no doubt that by 2020, the infra industry would be a $16-$21 bn industry. India is a country which offers greatest potential as an OEM hub due to its lower costs & the availability of skilled labour. By this year around 10 equip’ manufacturers are expected to establish bases in India. Moreover It is amazing that the Govt of India in the Union Budget 2014-15, has announced a project to develop ‘One Hundred Smart Cities’ as satellite towns of larger cities by modernizing the existing mid-sized cities in the country. INR 70.6 Bn has been allocated in the current fiscal year for the same. It is really a positive outcome that the govt is working on many ambitious projects undertaking the development of infra & roads in India. The Union finance minister in his budget speech proposed industrial corridors & 20 new industrial clusters. These worthy projects will definitely bring in a greater demand for CE & thereby shows the road ahead for CE industry. Infra investment remains as key & vital strategy for tremendous economic growth. Current Union Budget 2015 also has paved way for the same; & in the Budget the Total allocation for

infra has been increased by 1.5 times to INR 2.8 tn (roads, railways & urban infra are to be the biggest beneficiaries). As per world population statistics, India’s population grew by 17.7%, from 2000 to 2011, & by 2020 it is expected to reach 1.4 bn. The rising population & urbanization trends likely to enhance the demand for wide range of residential construction. In India Present levels of urban infra are not sufficient enough to meet the demands of the existing urban population. Even the Govt of India is in the process of launching a new urban development mission. This will help develop 500 cities, which include cities with a population of more than 100,000 & some cities of religious & tourist importance. Growth in population will increase the demand for residential & commercial real estate projects; thereby proving the opportunity for CE market. Real estate industry in India is directly related to the demand for concrete & building CE. India has been top producers of coal & iron, & there is huge increase in mining operations. These mining operations thus being the root cause for the notable demand in mining equip’s. Issues of land acquisition & also there is scarcity of land for various infra developments. Various project bottlenecks like delays in project approval or other Regulatory issues & environmental concerns puts some barriers in CE sale. Delays related to forest & environment clearance have an impact on infra projects. Deviations in projected cash flow from the projects. Financing options are limited, & payment terms for first-time users are often unfavorable. Only few govt incentives to develop skilled workforce. Hence to rule out the issue & upgrade the skills of the workers, the major CE CoS, has to establish costly training centers. Need for pro-development policies from the govt to bring about rapid execution of planned projects without any delays.

Key Market Players • • • •

Action CE Ashok Leyland John Deere Pvt Ltd Bharat Earth Movers Ltd. Caterpillar Commercial Pvt. Ltd.

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CONSTRUCTION MIR ROR

pecial Theme: Building Machinery

• Escorts CE Ltd. • GMMCO Ltd. Greaves Cotton Ltd. • Ingersoll Rand India Ltd. JCB India Ltd. • JCB • L&T Komatsu Ltd. • Larsen & Toubro Ltd. (CE Division) • Mahindra & Mahindra Ltd. • Stetter India Pvt. Ltd. • Trucks India Ltd. • Telco CE Co. Ltd. • TIL Ltd Voltas Ltd. • Volvo India Pvt. Ltd. • Wirtgen India Pvt. Ltd.

The other prominent players in the segment are: • • • • • • • • • • • • 58

Appollo Earthmovers Apollo Industrial Products Braithwaite & Co. Ltd. Elecon Engineering Co. Ltd. Godrej & Boyce Mfg. Co. Ltd. Gujarat Appollo Equip’ Ltd. Heavy Engineering Corporation Ltd. Hyderabad Industries Ltd. Int’l Combustion (India) Ltd. Jessop & Co. Ltd. Macneil Engineering Mukand Ltd. Shethia Erection & Material

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Handlers • TRF Ltd. • WMI Cranes The worldwide technology leaders in the CE sector are: Komatsu, Caterpillar, Hitachi, Terex, Volvo, Scania, Case, Ingersoll-Rand, HAMM, Bomag, John Deere, JCB, Poclain, Bitelli, Hyundai, Kobelco & Daewoo. & good news is that almost all the technology leaders have presence in India either as joint ventures, or have set up their own manufacturing facilities, or marketing CoS.

Trend in Pre-owned Equip. Industry

Developing public & pvt. infra. FDI reforms for construction sector, highway projects & growing economy have led to the overall surge of CE market in India. In fact Indian CE market is expected to grow more on account of increasing number of public infra. projects across the country. Further, initiatives by the govt. to develop 100 new smart cities & setup industrial hubs in the country through ‘Make in India’ campaign would boost the overall CE market in the country. According to Off Highway Research, India’s CE market is projected to reach 73,470 units by 2021. The market declined during 2012 to 2015 owing to factors such as delay in project clearance issues & land acquisition delays. However, in coming years,

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owing to several construction projects in pipeline, the market for CE is expected to witness growth. Over the past few decades, there has been an excessive pressure on the urban infra. in India due to rapid urbanization & industrialization. India has one of the densest road networks in the world but lacks in the number of multilane highways. There is huge demand for airport infra. railways, roads, sanitation facilities, urban & rural housing, office spaces & numerous other projects; all indicating the need for an improved infra.. This signifies the demand & growth of the CE industry in India. An investment of $1 tn has been projected for the infra. sector until 2017 around 40% of which is to be funded by private sector & rest 60% from govt. funded projects. Around 45% of infra. investment will be funneled into construction activities. Moreover the initiative to develop 100 smart cities will also attract an investment of $150 Bn over next few years, these will also impact the sales of CE in market positively, thereby resulting in its long term growth. Sale of CE in India is estimated to grow in India, for 2017 are 59,295, followed by 65,770 in 2018, 66,270 in 2019, 69,895 in 2020 & 73,470 in 2021. While facing all the challenges, construction sector has witnessed a robust growth, as initially pre-owned CE market was not developed in India ||www.constructionmirror.com||

& thus the resale of the pre-owned equip. was a great challenge. Today the ratio between new & used commercial vehicle has become 1:1. Earlier people used to acquire & dispose of these equip. through local dealers/brokers & personal sources. But over the time, the market has become much more structured as many renowned organized players have come in. Also, individuals as well as businesses are far more realistic & practical today as they are ready to believe in the profitable idea of investing in pre-owned vehicles & CE.

Positive Outlook for construction sector

Regulatory framework will bring more order to the sector. Operators who depended on capital from the market & the buyers only will no longer be able to operate that way. Only players who are organised & plan their projects & capitals in a professional manner can survive now. Being a small player or big player does not matter. What matter is being organised, having proper project development plans, capital procurement systems & adhering to the rules. GoI has recently announced massive spending on infra., housebuilding & others. The recent spending announcement by the GoI is very encouraging. But the announced spending has to be translated into realized projects within the timeline. Post-tender acceptance & project clearance by the govt., & land acquisition issues often hold up projects. We cannot avoid paying interest on the capital generated through bank loans during the deadlock period & it threatens our survival in certain cases. Construction industry expects to employ 80 mn workers by 2020. The productivity of Indian construction workers is very low currently. If we can enhance productivity, it will bring down project execution time drastically. BAI, in association with the govt. as well as private bodies, has taken up training of construction workers. For the construction industry, we have formed CSDCI, & Builders’ Association of India is one of the promoters. To train construction workers, huge funds are needed. The govt. has collected more than ₹40,000 crore as on 30 Sep’17, from the contractors towards ||www.constructionmirror.com||

‘Labour Welfare Cess’, & a minimum of 20% of this amount should be made available for skilling the construction workers. Credit flow from banks has significantly reduced & is more stringent following demonetization & RERA. Many projects held up by the combined impact of demonetization & RERA could not pay back the debts as the major part of their inventory went unsold. This has prompted the banks to be more stringent in sanctioning loans. Demonetization has affected the economy. It has hit liquidity adversely & impacted real estate & construction industry acutely. Being primarily a non-organised sector, 70-80% of the real estate transactions were in cash. At the ground level, workers are paid their wages in cash. GST ensured that we don’t have to pay multiple tax components amounting to 32%. GST was later brought down from 28% to 18%, encouraging the industry. RERA brought real estate developers under the ambit of certain regulations primarily to protect the interest of buyers, implying a certain order & clarity into the sector. However, at the implementation level, there are failures; RERA too has serious failures hampering the functioning of the sector. The Centre had given certain flexibility to State govt.s only to bring minor changes/deviations in the RERA Act, but some State govt.s attempted meddling with the Act. The outlook for the construction sector is very positive with the govt. ready to mobilize $1 tn investment plan over the next five years. About 80-100% of this plan can be a reality if the core issues are addressed from the root level. We hope that that 2018 Budget will be reflective of the recommendations made by us. Construction sector in India will remain buoyant due to increased demand from real estate and infra. projects. USD 650 Bn will be required for urban infra. over the next 20 years. India’s real estate market is expected to reach a market size of USD 180 bn by 2020. India to be third largest construction market globally by 2030, with its contribution to GDP increasing to 15% by 2030. Size of the India’s construction industry expected to be USD 1 tn by

2025. Construction Industry is poised to become the largest employer by 2022, employing more than 75 mn people. Some of the large government projects offer significant up-side thrust. As India’s urban GDP is expected to reach USD 7.5 tn by 2030, accruing 75% of India’s total GDP. , the country needs to develop over 170 mn houses until 2030. Present levels of urban infra. are inadequate to meet the demands of the existing urban population. There is need for re-generation of urban areas in existing cities and the creation of new, inclusive smart cities to meet the demands of increasing population and migration from rural to urban areas. Future cities of India will require smart real estate and urban infra.. To provide quality urban services on a sustainable basis in Indian cities, the need of the hour is that ULBs enter into partnership agreements with foreign players, either through joint ventures, private sector partners or through other models. Key drivers of real estate sector-regulatory reforms, steady demand generated due to rapid urbanization, rising household income and rising number of nuclear families. As per the second advance estimates for the year 2017-18, GVA (at basic prices) by the construction sector stood at USD 140 bn. It is estimated to register a growth rate of 4.3% in 2017-18 as compared to 1.3% in 2016-17. Share of infra. spending in the construction sector as a part of India’s GDP rose to 9% in 2017. Investment in retail projects in Tier 1 & 2 cities reached USD 6.19 bn from 2006-17. During the last three years, over 7.1 mn houses have already been completed which include 1.7 mn under PMAY (G) houses. Second largest employer, after agriculture sector, employing more than 35 Mn people. Under the GST regime, all under-construction properties are to be charged at 8% (excluding stamp duty and registration charges).GST is not applicable to completed and readyto-move-in projects, as there are no indirect taxes applicable in the sale of such properties. On account of GST, reduction in prices is estimated to be around 3-4 %.

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CONSTRUCTION MIR ROR

pecial Theme: Backhoe Loader

n order to understand the growing popularity of backhoe loaders in India, we need to first know about their definition. Backhoe loaders consist of a tractor, front shovel/bucket & small backhoe in the rear. Being very versatile equipment, they are generally the only piece of heavy equipment brought onto small to medium landscaping projects. Backhoes have the capacity to easily duplicate the work of bulldozers, front end loaders & excavators. What more? Backhoe loaders can be driven directly to the different job sites as opposed to other specialized machines which need to be towed into the site & require external power sources. This makes backhoes most popular CE & result in their large market share. Decades of practical use & owner demand have made the backhoe what it is today. The backhoe loader invented in 1953 by J.C Bamford, founder of JCB, began to use the hydraulicpowered backhoe which was developed in 1957 by a small American- based firm in Indiana after acquiring it. The first Co. to manufacture a four wheel drive backhoe loader which was able to move over any terrain with considerable ease was Hy-Dynamic which is now a division of Bucyrus-Erie, the manufacturer of Dynahoe. Later, in 1971, a highly refined version of the backhoe loader in terms of better ride quality & maneuverability known as the â&#x20AC;&#x2DC;over centerâ&#x20AC;&#x2122; backhoe loader was introduced. Since then, the backhoe loader incorporated within it all the technology that was developed with regards to its purpose. Hydraulics, auxiliary hydraulics, electronics, tech to reduce spillage & offer smoother ride, effect of operator on controls, practical innovation, etc. all these innovative technologies has made the backhoe loader what it is today, an integral piece of equipment in the construction & infrastructural sector.

CONSTRUCTION MIR ROR

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arket Evolution

For >40 years, Backhoe Loader has been around as common CE in urban engineering & small construction projects. Over the years this construction equipment (CE) market in India has gone through evolution. Presently the sales of backhoe loaders in India are expected to increase from the 21,192 units sold in 2015 to 28,000 machines by 2020, a +32% increase, according to Off-Highway Research. India is clearly one of the largest backhoe loader markets in the world, with this type of machine accounting for the majority of all CE sales in unit terms. Moreover, the Investment in infra by the GoI seems to be driving backhoe loader sales a notch higher. There are also several other initiations underway to reform procedures & policies around infra investment which should stimulate the sector further. Additionally new funding initiative is taking place across the country. These factors are expected to underpin growth across the Indian CE sector in years to come, but there are other reasons for the backhoe loader market in particular to enjoy continued buoyancy.

Market scenario & Future trends

The backhoe market in the country has been growing at a rate of close to 37% CAGR over last few years & this pace is likely to continue in the coming years too. As a matter of fact, India is the second largest market for backhoes in the world. This segment is perhaps the only one in the CE sector in India that has reached the stage of maturity & scale where exports could be considered. The market for backhoes is spreading eastwards, largely due to the way in which India is making progress in the infra & construction segment. JCB India & Mahindra CE are the market leaders in the segment with a share of over 70% followed by other players like Caterpillar India, ACE, Escorts, Terex Equipment & few more. Backhoe loaders are expected to account for over 68.23% of total sales of CE by 2018. This is because there are clear benefits of using backhoe loaders over manual labour & traditional methods like improved quality, timeliness, better project financials & safety. Further, factors such as increased demand for mechanization will also work in the favor of growth of backhoe loaders in India. In the coming times, with more players entering the market segment & increased competition among them, the price competition is slated to increase. Also, since backhoes are used for all construction applications, the backhoe rental market will see a boom in the future. Many big players have entered the backhoe rental market & thus, backhoe loaders on rent will be a more common norm in the days to come. India has a teeming population of backhoe loader OEMs, of both Indian & global brands. All are set to capitalize on infra projects being fast tracked by the Govt. Only the backhoe loaders loaded with USPs cut

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out for niche markets can win max. Market share. Along with the boom in construction & infrastructural projects come the necessities for CE. Among them the most versatile, one must say, is the backhoe loader. These workhorses in varying capacities will meet demand of big ticket buyers as well as the large number of individual customers. The backhoe loader expedites project execution which would otherwise require thousands of man hours. This beautifully complex piece of machinery heralded the arrival of mechanization in construction, & was followed by all sorts of other machinery which were accepted & used widely in India. JCB pioneered the backhoe loaders concept almost four decades ago in India & has sold over 2,25,000 backhoes in India. It continues to be one of the most widely used CE in India. The backhoe loader is popularly known as the Swiss army knife of CE. In order to enable it to complete various tasks, backhoe loaders come with an extensive range of attachments that can be fitted to it for performing difficult tasks like lifting, grabbing objects, dozing, drilling, demolition & leveling the ground. Due 62

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to its affordability & multi- application versatility, the backhoe loader is the popular choice for most jobs & accounts for approximately 65% of the earth moving & CE segment. At present, most of the technology leaders like JCB, Mahindra, Escorts CE, Terex, Case, Caterpillar, TATA Hitachi, ACE, LeeBoy, BEML, Bull, etc, are present in India either as joint venture CoS or have set up their own manufacturing facilities or marketing CoS. All backhoe loaders sold in India are manufactured in the country. In addition to domestic sales, Indian based backhoe loader manufacturers exported some 2,171 units last year according to the consultancy, Off-Highway Research. The growing popularity of the backhoe loaders in the global market has also necessitated new inventions in the production of the same by its manufactures. It is for this reason that the established players in the field are increasingly working towards reducing customerâ&#x20AC;&#x2122;s pain points by enhancing the backhoe productive performance, uptime, & the ease of operation & maintenance so that customers can singularly focus on business outcomes.

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GoI is taking initiative such as Sagarmala Program & many other such initiatives that are creating a demand on its own for this product market. If you see backhoe machines statistics you will find out that for coming 2 years or so it is going to be an upward rise of 25000 machine market all put together. Plus it might be exceeding that. In this respect, we are targeting for 10-15%. Out of these 25000, 23000 would be on soft strata in which only 10 people are competing in which there is a distinctive advantage which is lacking in general category. Backhoe loaders account for close to 50% of all CE sales in unit terms. At the current estimate, there are nearly 200,000 backhoe loaders deployed across the country in various projects. Most of them in operation are manufactured in the country by the OEMs. Apart from domestic sales manufacturers have also been eyeing exports with to 2,171 units contributed last year. According to persistence market research, India is expected to continue to be the worldâ&#x20AC;&#x2122;s most lucrative & largest market for backhoe loaders, growing at 6.9%- higher than the 5.9% global CAGR- through 2026. ||www.constructionmirror.com||

System Development

With times there has been development in Productivity & performance. Backhoe loaders can now enable more Load, Dig & Doze productivity. Security, Servo Controls, & serviceability have now become an important criterion. Operators now want to be assured of the safety, security & operation update with the advanced system. The buyers are looking to manage their machines on Service, Operations & Security of their machines through real-time alerts. In this regard, JCB India has introduced a new ecoXcellence range, specially designed to deliver excellence in all aspects. The new machine is 10% more fuel efficient with 30% less maintenance cost. The ecoXcellence range is fitted with the new generation JCB ecoMAX engine, & provides high productivity & enhanced performance in any application. Following the line of innovations manufacturers, CASE India has introduced latest technologies with engine capacity & higher torque along with a banana boom which dictates the machine’s max. digging height, max. dump height, & fuel efficiency. The Co. offers S8000 engine, deliver powerful performance & fast response time coupled with a 5% which translate into ||www.constructionmirror.com||

huge customer savings. LeeBoy offers standard features like a 4WD side-shift, extended dipper, multipurpose bucket & an air-conditioned cabin. However, Escorts has features of a durable & chassis, boom, dipper, & loader arm structure specially designed for Indian application with ‘high tensile strength’ steel. Further, it has ergonomically designed spacious operator cabin & ‘equipment management system’ which works as effective diagnostic & tracking tool. Caterpillar is also innovating its backhoe products with the introduction of features like high rotation backhoe bucket linkage design, spacious cabin with an ergonomic interior for max. operator comfort, carved boom for easy reach over obstacles, variable flow hydraulic system adjusting to demand along with excellent fuel economy. Terex is also breaking new ground with its range of versatile, innovative & efficient backhoe loaders. Its unique UC Hydraulic Mechanism is designed to set new standards in Fuel Economy while delivering uninterrupted digging & loading. Backhoe Loader of ACE is installed with new technologies like KIRLOSKAR engine 4R1040T (BS III) 4 cylinder, turbocharged, water cooled diesel engine & developing high torque with low fuel consumption. Their machine is installed with hydrostatic steering for reliability & better control. Roll-over protective structures is fully enclosed wide view cabin with easy entry & exit from the cabin for the operator. Tata Hitachi is also introducing new features in its products like its peer manufacturers as it offers one of the most fuel efficient machines in its class. They provide power-shift transmission in their backhoe loaders which improve productivity & ease of operation. However, fuel efficiency is achieved by a combination of many factors such as the inherent design of the engine, the application in which the machine is being used in & the operator skill. The broad range of fuel consumption in the Backhoe Loader is between 3.5 to 6 litres per hour, depending on the model & application mix.

35 30 Sales volume in thousand units

On the back of strong demand from the US construction sector, North America will maintain its position as the world’s second largest market, followed by Latin America. Global heavy CE industry is projected to grow at a CAGR of 6.80% from 2015 to 2020 of which the heavy earth moving equipment is the fastest growing segment across the globe & India is no exception here. In fact, the heavy earth moving equipment segment in the country accounts for close to 70% of India’s CE market. On the basis of operations performed by the various machines in the segment, the earth moving equipment industry can be bifurcated into excavators, loaders, backhoe loaders or backhoes, construction tractors & others like grader, scraper etc. Among all, Backhoe Loaders account for >65% of heavy earth moving equipment segment (followed by excavators) & 40% of total demand of CE in India.

24.5

25 20

2018*

2019*

21.19

15 10 5 0

2015

2016*

2017*

2020*

Demand drivers

The booms in housing, construction & infra- including transport(road, rail, sea, airports), power, mining, pipelines, irrigation & water supply, etc. as well as rural development driven by Gram Panchayats & small municipalities, coupled with the Swachh Bharat Abhiyan & Pradhan Mantri Gram Sadak Yojana projects has been raising the demand for backhoe loaders. CE industry in India is expected to reach $5 bn by FY’20 from $3 bn in FY’16 in value terms & with infra investment set to go up, the sale of CEs is expected to grow at an estimated CAGR of 6.18%, in volume terms to 96,700 units by FY’18 from 50,000 in FY’07. Backhoe loaders are expected to account for over 39.28% of the total CE sales by 2018. Off-Highway Research estimates an active population of over 195,000 backhoe loaders in India. But despite the growth forecast in the sector, sales of backhoe loaders are not expected to exceed the high water mark of 33,595 machines sold in 2011. Apart from the construction & infra development in urban India which was the major demand driver for the backhoe loader market, the 2016-2017 budget allocation for rural development that amounted to Rs. 86,000 Cr., out of which Rs. 19,000 Cr. was allocated to the road sector under the PMGSY project had contributed to the demand. The PMGSY has proved to be a key driver that boosted backhoe loader sales for the bygone decade. Now, again, rural development is going to be the major driver for backhoe loaders, considering the 2017-2018 budget allocation of a whopping Rs. 1,05,447.88 Cr..

Global trends

As for the global earth moving equipment, growing industrialization || September 2018 ||

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in several parts of the world presents better opportunities for the earth moving equipment market. According to Persistence Market Report: Global earth moving equipment market will witness a robust growth growing at CAGR of 6.7% during 2017-2025. Earth moving equipment market in APAC is estimated to represent more than 50% of market value share in the global earth moving equipment. China & India are among the developing countries with intensive construction activities that fuel the growth of earth moving equipment market. In terms of volume, backhoe loader sales will grow at a 7.3% CAGR, owing to its smaller size, which makes it simple to use in different types of construction projects. Increase of PPP projects in commercial & residential constructions will drive the earth moving equipment market, says the report. Reports on the Indian market expects the demand for backhoe loaders to increase at a healthier pace than what has been seen since early 2007 onwards & it anticipates the demand to touch new high of 3400-3500 per month. Inquiries with both buyers & suppliers of CE are pointing towards a significant recovery from FY’17-18 onwards, & the industry expects to 64

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further build on this momentum when getting into FY’18-19.

Major challenges

Driver training is a major challenge in this segment. Driving a backhoe loader & putting it to optimum use is a specialized skill in itself due to operational capabilities of the machine. Most importantly this machine has a very small turning radius due to the very nature of its tasks. They have to operate in limited confined spaces & hence need high maneuverability with a small turn radius. The other important characteristic of these machines is that it operates at both ends. Hence the driver has to be equally familiar in both the forward & reverse gears. Most OEMs of backhoe loaders offer specialized driver training for their clients. Market leader JCB has 14 operator training centers across India, which have produced about 24,000 certified drivers till now. ACE has a dedicated training center at Faridabad. LeeBoy’s Expertise Development Growth & Excellence (EDGE) is another case in point for driver training. Terex also has its own Terex Training School. Stringent emission norms confirming to BS IV is another major challenge for backhoe OEMs. Rules & regulations on emission levels

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for mining & CE is also restricting the demand for earth moving equipment. Different countries have different laws for the emission, for example, Europe & North America have more stringent laws on emission as compared to other countries. Equipment finance is another major challenge in India. A majority of the Indian rural market does not have a strong financial background, & have to resort to equipment finance CoS to fund their purchases.

Major OEM offerings

JCB is the global leader offering widest range (7 variants) of niche oriented backhoe loaders, namely- 2DX, 3DX, 3DX Xtra, 3DX Super, 4DX, 2DXL, & 3DXL to suit different user segments for different applications. The new 3DX ecoXcellence range is the latest addition to JCBs range of next generation backhoe loaders. It delivers an increased fuel efficiency of 10% with a 30% decrease in maintenance cost. This equipment is fitted with the new generation JCB ecoMAX engine that provides high productivity & enhanced performance in any application. Owing to its high digging force & fast excavation cycle time, the machine works 25% more per litre, churning out the best performance in all strata with fuel savings worth ||www.constructionmirror.com||

Rs. 800,000 thousand in 3 years. It is designed according to Indian excavation & loading requirements so it can load conventional & high bodied rigid dump trucks. Other competitive attributes are newly designed spacious cabin with 20% more leg space for operators & easy access to the engine & cabin for carrying out periodic maintenance. JCB machines can now be remotely monitored real time, via its advanced ‘Livelink’ telematics system. JCB India plans to foray into Nepal, Arunachal Pradesh in North East India, Leh & Kargil in J&K. This expansion will add up to a total 700 outlets by end 2017. JCB currently has over 650 outlets & 63 dealers across India. With over 2,25,000 customers, JCB is a leading manufacturer of backhoe loaders in India. These machines are not only sold in India, but are also exported around the world. Inherent design, reliability, product quality, & a world class product support, has ensured that we remain close to our customers. JCB machines are known for best-in-class productivity, efficiency, & technologically advanced features. Our aim is to offer products which help in improving our customers’ business & hence, JCB has always been on the forefront of design & technological innovations. Latest being the introduction of telematics in the Indian ECE industry. We introduced Livelink, an advanced telematics technology which enables our customers in better fleet management. It maximizes the productivity of machines by providing real time alerts on service, operation, & security benefits to machines owners. Over 40,000 Livelink enabled machines are successfully working in India. Introducing this technology on this scale in the Indian market is another step towards our endeavor to always provide the best in class, technologically advanced products, to our customers.” Jasmeet Singh, Head - Corporate Communications & External Relations, JCB India Ltd. Escorts CE (ECE) is India’s homegrown global player who launched their backhoe in the mid 1980s. With an eye on harsh operating conditions, it ||www.constructionmirror.com||

launched its new 4x4 backhoe loader, Jungli, in October 2016. True to its name, Jungli has a commando type livery & has been designed for rough terrains, excavation of morrum soil, rock breaking, working in slushy underfoot conditions, river bed sand excavation, overburden excavation in stone mines, etc. Its structure & the bucket has been redesigned for tough applications with high dumping & ground reach & digging depth. Their breakout forces are much higher than most competitors, ensuring high productivity in rough terrains with minimum failures. The Jungli’s 4-wheel drive makes it suitable for all types of harsh terrains. Its engine is turbocharged with an inline fuel pump. The eye-catching combat color of a battle tank gives it a rugged look, making the product an attractive & competitive value proposition. An owner can monitor his machine through its Equipment Monitoring System (EMS) to ensure that the desired deliverables are in line with the expectations/promise made by the manufacturer. The initial response to Jungli has been extremely encouraging & ECE is optimistic about Jungli carving a niche segment for itself. Having crossed the magical figure of 30,000 Units per annum, there will be some growth for a couple of years where after market will plateau for a while as the machine park will reach a point of saturation. Notwithstanding the point of saturation, a sustained market demand of 25,000 plus is decent enough. It won’t be an overstatement to say that price remains the single most influencing factor driving the sales of backhoe loaders. Machine performance by way of operating cost & reliability does play its part when there is not much to choose on the price front. ACE is another Indian major who’s AX 130, Digmaster backhoe loader is an extremely reliable loading & excavating, fuel-efficient machine with two & four wheel drive options. ACE’s strategy is to offer it as a package along with its range of road CE. As an Indian OEM it is attuned to the local market & its loaders are geared to various application requirements of local contractors. It has a strong service network of 100

dealers across the country, which are fully equipped to provide genuine spare parts & services by Co.-trained engineers in Faridabad. Almost all the international players in backhoe have their manufacturing facilities in India & are using aggregates manufactured in India only. We in our backhoes use internationally compatible & best suitable & acceptable aggregates like engines from Kirloskar, transmission from Carraro, hydraulics from David Browne, Walvoil etc., & with the kind of all India network of our well-equipped Dealerships & ACE’s own Regional Offices (more than 100 locations) & the most modern manufacturing facilities & CSIR certified R&D facilities, we are more than confident about our product Quality & ability to serve in the shortest possible time.

Structural Strength

Case CE latest offering CASE EX Series loader backhoes are powered by S8000 engine & deliver powerful performance & fast response time coupled with a 5% higher productivity & fuel savings of up to 13%. They are re-engineered from the ground up to deliver industryleading backhoe breakout force, greater loader lift capacity/reach & best-inclass cab visibility. The new EX Series Backhoe Loaders have robust robotically welded two-piece structural frame design that results in great stability, performance & serviceability. Large box-section structures in high-stress areas such as the boom nose, foot & cylinder, enhances the machine’s durability. The new heavy-duty front axle with double effect steering cylinder ensues all wheels remain in contact with the ground even on the roughest terrain, ensuring exceptional stability & reliability. The S-styled backhoe boom delivers excellent breakout forces. It has a superior working range & reaches deeper than any other backhoe loader. CASE also provides a choice of two configurations: a standard dipper to reach 4.2 meters & an extendable dipper to reach 6 meters. The power shuttle transmission provides four forward & reverse speeds. The hydraulically shifted clutches allow the operator to change direction & travel speed on the go, while

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the control valves deliver smooth speed & direction shifts, resulting in smooth & accurate operation. The new tilting engine hood provides excellent access for maintenance. The machine layout has been designed to ensure that all daily service points are easily accessible at ground level, for quick & efficient servicing.

Focused TCO

Caterpillar CAT® 424B backhoe loader has been designed to deliver superior reliability & durability with lower maintenance costs & best in class fuel consumption, thus enabling its customers to optimize their owning & operating costs. Its USPs include load sensing closed centre hydraulics for superior performance at optimal fuel consumption. The pump works as per the job demand & keeps the wastage to minimal level & the engine load at optimal level ensuring lower fuel consumption. In this system, the wear & tear of components is very low which improves the service life of components. 66

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The transmission of the backhoe loader is equipped with Cat Power-Shuttle transmission. The gear ratios are engineered to deliver higher rim pull in the first & the second gear. This ensures better loading & dozing performance. Highly fuel efficient engines, reliable & durable drive train, structures, pins, hoses, spacious cabin & ease of maintenance, backed by adequate product support, allow the customers to have higher uptime & productivity through the CAT backhoe loader. Cat backhoe loader is engineered with some of the best in class features like load sensing & close centered hydraulics, which has got much better hydraulic efficiency, thereby ensuring minimal wastage & better fuel efficiency at optimal performance. In addition to that the components are designed keeping in mind the machine duty cycle so as to deliver better product life that exceeds customer’s expectations.” Amit Bansal, Director Sales & Marketing - Building Construction Products India Region,

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Caterpillar India Pvt Ltd.

Product Positioning

Tata Hitachi is among market leaders in the backhoe segment & has introduced improvements in its two existing models for stronger product positioning. Its TH76 & TH86 models are being extensively upgraded with a focus on improving reliability & optimizing the operating cost. Tata Hitachi machines are supported by genuine spare parts at competitive prices to keep its maintenance & operating costs low. Their central warehouse in Nagpur with 1,30,300 sqft, stocks more than 30,000 items. Strategically located in the central part of the country, this facility ensures that it feeds the dealers warehouses situated throughout the country in the shortest possible time. The Co.’s new warehouse facility at Dharwad has been opened to better serve market demands in South India.

Fully Loaded

LeeBoy India CE plans to increase its ||www.constructionmirror.com||

loader population by adding value to its 699 loader model by offering specialized attachments which will be indigenously manufactured at its stateof-the-art new plant in Bengaluru. LeeBoy’s manufacturing facilities are in Lincolnton, North Carolina US, Bangalore, India & Canoas, Brazil. The 699 backhoe loader is powered by a turbo-charged after cooled, 99 hp, fuel efficient Cummins engine which has been field-proven on 14t excavators on very heavy duty cycles & tough operating conditions. Hi-performance power-shift transmission from ZF, Germany ensures that when the machine is on a grade, the wheels do not lose power during a gear shift which will occur in all synchro-shuttle models. It has a 4-section, side-by-side aluminum heat exchanger, joystick controls, fully enclosed cabin with very high visibility, return-to-dig, high quality flashing beacons, work-lights & back-up alarm are just some of the added features working on European components like AKG, Safim, Cobo, Hella, Walvoil, Casappa, that delivers higher productivity, ergonomic comfort.

Rural Strategy

Terex is aiming at the rural market where customers are involved directly in infra development. It has 57 dealers spread across the country, all located strategically. Terex backhoe loaders include TLB 740S powered by a 76 HP Engine, TLB 844S powered by a 90 HP Engine, TLB 818 centre mounted machine & TLB 818 S, are powered by Perkins engines. The side shift model delivers high break out force, ideal for functioning in the toughest strata. Terex machines also score on faster digging & loading. The four wheel drive machines deliver superior lifecycle costs owing to their high strength steel structures. They will soon be available with GPS systems for remote monitoring of larger equipment fleet.

More for Less

BULL India rolled out its first backhoe loader ‘BULLSMART’ in September 2011 from its Greenfield state-of-the-art facility at Sulur in Coimbatore. Neither big nor small, it is a smart machine with 28% lesser initial capital investment & ||www.constructionmirror.com||

31% lower running cost vis-à-vis popular backhoe loader brands. Due to its faster cycle time & shorter hydraulic circuit, it is capable of similar output with lesser cost resulting in better economics & higher return on investment. It houses the Kirloskar 4R810, 60 HP turbocharged; 4 cylinder engine, & incorporates the Carraro transmission. It holds a 0.23 cubic meter backhoe bucket, 0.90 cubic meter loader bucket with payload capacity of 1,300 kg. The major benefits of the Bull Smart are, shorter cycle time on account of innovative hydraulic circuit, for better productivity. High on savings, low on running costs, it can save approximately 30% directly just on fuel cost. It is also the right solution to counter the rising cost of fuel as it is multi-utility with 39 types of optional application-specific buckets. It is optimized for Indian requirements with bottom-of-pyramid approach for highest affordability & max. usage in additional segments, leading to more earnings. It is the only backhoe which can easily load full body/ high body dump trucks by its booster bucket with a dump height of 13 ft on its loader. Booster bucket eliminates the need of making a ramp which is a must for other backhoe loaders while loading onto hoppers of batching plants etc. Bull provides fast service through an extensive all-India service support network; well-trained service teams; & better parts availability. The Co. manufactures a range of other backhoe loaders; Bull HD 76 4WD which has Carraro transmission with integral torque convertor with 2 WD & 4WD drive options available, Bull HD 76 2WD which has Carraro transmission with integral torque convertor. It has a power steering with 2 WD & 4WD drive options available, Bull HD96 4WD has the Kirloskar 96 hp engine with gross power of 71.6 Kw & Carraro transmission, Bull HD 100 has a Euro III diesel Perkins engine & ZF power shift transmission with integral torque convertor, Bull Smart Loader 60HP Backhoe loader has a Kirloskar 44.8KW (60 HP) engine. It has a Carraro synchro shuttle transmission with integral torque convertor; Bull HD 76 Loader has Carraro transmission with integral torque convertor. It has a power

steering with 2 WD & 4WD drive options available. Bull is aiming to become a major OEM in ECE equipment not only in the Asia but also Latin America & Africa.

Aftermarket Focus

Mahindra CE is the latest entrant in the backhoe loader market. Its EarthMaster backhoe loader represents the auto giant ’s foray into manufacturing heavy-duty CE. It is the result of 36 months of development, & offers best-inclass power, superior fuel-efficiency, & meets USA Tier III emission norms, the most demanding in the world. Made for the world-class performance, it has been field-tested for over 20,000 hours in the harshest terrains, & comes with an intelligent communication system that relays information on its operation, coolant temperature, & diesel level directly to your mobile phone. Mahindra EarthMaster Brand is available in 3 variants: EarthMaster VX, EarthMaster SX & EarthMaster 4WD. For monitoring & maintenance its telematic system REMOTECARE, has built-in intelligent sensors capable of sensing & detecting critical faults in time & by giving an advance warning to the owner to help maintain the health of the machine. Since it is preventative in nature, it helps to prevent major breakdown. The system also sends out an SMS to the Service call centre of Mahindra CE which in turn informs the nearby dealer about the same. Optimum utilisation of the machines is also being warranted by faster parts availability & support through its dealers & also from the dealers of other businesses in Mahindra. The Co.’s new ongoing service improvement project will further help its customers to leverage its services. Mahindra manufactures SX & VX backhoe loaders under the EarthMaster category of earthmoving equipment. The Mahindra Co.’s CE business is supported by a wide network of 60 dealers catering to more than 400 districts across the country.

Future prospects

Due to the very nature of this multitasking machine, backhoe loaders will always dominate in terms of market share among all CEs. They

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will register max. demand among all CEs. But most importantly, India will set the standard for backhoe loaders in emerging markets, considering that many OEMs are ‘Making in India, selling globally’. Due to very nature of this multitasking machine, backhoe loaders will always dominate in terms of market share among all construction equip’s. They will register max. demand among all construction equip’s. But most imp.ly, India will set the standard for backhoe loaders in emerging markets, considering that many OEMs are making in India, selling globally. With a huge existing population of machines in the market & project demands still to pick up, demand outlook remains grim in the short term, at least. Backhoe loader market is shrinking. Customers are opting for either wheel loaders or excavators instead of multipurpose machine. Moreover, a huge population of backhoe loaders is available in the market. Challenge would be to differentiate product from competitor. However, in the next few years, the size of the Indian CE industry, by volume, will begin to approach that of Europe. 68

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India along with China & Brazil is poised to be one amongst 3 large & growing CE markets globally. This has led to various new players entering the industry. The country is going through a turnaround phase of its infra. dev., & backhoe loader is a machine which is known for its versatility always takes the centre stage. Unique to India, backhoe loaders will continue to be the star product for the earthmoving & construction equip. industry. In fact, this equip. has educated the world of its multifaceted capabilities in support of infra. construction in probably the most innovative applications to achieve the desired construction speeds at economical costs. Now it will play a similar role in the rural dev. of India. Rural roads & rural infra. prospects are very imp. in driving the revival of backhoe loader industry. There seems to be a new urgency for action in the equipment zone as witnessed by the slew of govt initiatives to reform procedures & policies around infra investment, which in turn has spurred the fast tracking of projects. There is a new emphasis on fast

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tracking ambitious infra development programs like Smart Cities, Swachh Bharat Abhiyaan, Clean Ganga, National Highway projects & rural road & irrigation schemes that will spur backhoe loader sales. The ongoing air of optimism also derives strength from a recent report by the London-based Off Highway Research. The consultant has assessed that the sales of backhoe loaders in India could jump from 21,192 units sold in 2015 to 28,000 machines by 2020, a growth rate of about 32%. Notwithstanding those predictions, no one expects the leap in sales to cross the high-water mark of the 33,595 machines sold in 2011, & the prevailing mood of ‘let’s wait & watch’ leads India’s CE sector to toe a cautious line. Backhoe loaders account for close to 50% of all CE sales in unit terms. At the current estimate there are nearly 200,000 backhoe loaders deployed across the country in various projects. Most of them in operation are manufactured in the country by the OEMs. Apart from domestic sales, manufacturers have also been eyeing exports with up to 2,171 units contributed last year. & with ||www.constructionmirror.com||

more required to join the equipment line-up, this should mean increased business for established players like JCB, Caterpillar, CASE India, Terex, Komatsu, LeeBoy, John Deere, not to mention the new challenger in the backhoe space; Mahindra, with its EarthMaster series. The backhoe is not just the most ubiquitous CE in India due to its multiple applications & uses but one which is progressively evolving with every trade show. With a huge existing population of machines in the market & project demands still to pick up, demand outlook remains grim in the short term, at least. Backhoe loader market is shrinking. Customers are opting for either wheel loaders or excavators instead of multipurpose machine. Moreover, a huge population of backhoe loaders is available in the market. Challenge would be to differentiate product from competitor. In the next few years, the size of the Indian CE industry, by volume, will begin to approach that of Europe. India along with China & Brazil, is poised to be one amongst three large & growing CE markets globally. This has led to various new players entering the industry. It is expected that the CE industry to become hyper competitive with constant pressure on existing players & new incumbents to continuously improve their value proposition & cut costs. The high margins that have traditionally been earned by market leaders will come down. The country is going through a turnaround phase of its infra dev, & backhoe loader is a machine which is known for its versatility always takes the center stage. After a 3-year lull, backhoe loaders are expected to see a pickup in business volumes. Across the Great Indian Dust Bowl, the market for the good old tractor-digger, aka the backhoe, has fast begun to gather pace. After a 2-year lull in the construction & infra sector which saw a slowdown in both scale & speed of project implementation, & a decline in CE hire & purchase, Indian backhoe loader sales is slated to pick up momentum along with the green shoots of economic recovery. ||www.constructionmirror.com||

This found reflection overseas through a milestone achievement in Feb this year when global digger giant JC Bamford Excavators Ltd, to mark its 70th anniversary rolled out its limited batch of special Platinum Edition 3CX backhoe loaders from production lines at its world headquarters at Rochester, UK. Understandably JCB, which introduced its backhoe loaders in India 37 years ago its factory in Delhi NCR is now a global hub for production is expected to play a leadership role. The intent for a long innings ahead for the backhoe loader was set at Excon in Bengaluru last year when the Co. showcased its new “ecoXcellence” range. A market leader, JCB India offers a range of backhoe loaders with 5 variants designed for multiple applications. These range from the Compact 2DX, the bestselling 3DX with the variants; 3DX Xtra & the 3DX Super; & finally, the larger 4DX. All these machines come with a variety of attachments to suit the varied needs of customers. The govt’s renewed thrust in the infra segment has led to a considerable increase in the demand for backhoes which are the most widely used equipment in the country. JCB has been a major contributor to the Make in India cause through its products which carry with them cutting edge technology & versatility. The Indian construction machinery market is still on an uptrend: after an exceptional gain of 34% in 2016, the German Engineering Federation (VDMA) determined a still very considerable growth of twelve% for 2017. And also the start of 2018 was extremely positive, as the first months witnessed a strong sales performance. IBEF provides an indicative value here. Established by the Indian Ministry of Commerce & Industry to promote the international brand & location marketing activities, the trust estimates that in the Indian fiscal year of 2018, almost 97,000 construction machines were sold throughout the country. Biggest ever highway development plan approved In general, things are looking good for the second most populous nation after China worldwide. Looking at the World Economic League Table 2018

published by the Centre for Economics & Business Research, India will overtake the UK & France in terms of the GDP to move 2 places up & become the world’s 5th largest economy in 2018. The development in the construction machinery market is mainly driven by the states massive infra expansion. According to Off-Highway Research this expansion is a top priority for the GoI that monitors all projects at highest level to overcome potential obstacles as quickly as possible. At the very top of the agenda is road construction. In Oct’17, the Indian politicians hence approved the biggest ever highway development plan to develop & expand almost 84,000 kms of roads at an investment of USD 107 bn by 2022. According to the experts quite a few foreign CoS managed to conquer significant market shares, competing with the domestic & dominating bulldozer manufacturer BEML. Also the real estate market primarily housing sends out positive signals: IBEF assumes that it will grow from an estimated USD 126 bn in 2015 to USD 180 bn in 2020. In the Indian construction machinery market, crawler excavators & backhoe loaders remain a mainstay. According to IBEF these two types are expected to account for 68% of the units sold in 2018. With an increase of almost 6% over 2015, crawler excavators are estimated to yield the highest growth rate. Backhoe loaders find their application in a wide range of end-use industries, including construction & mining remain the largest end-use sector, accounting for nearly 53% revenue share of the market in 2016. Moreover, construction activity in Tier II cities & declaration Smart City program are anticipated to provide an impetus to overall CE sales in India, which in turn, is expected to have a crucial impact on prospects of the global market. According to expert survey reports, the demand for backhoe loaders from the agriculture & forestry segment is expected to remain steady, growing at 5.8% CAGR through 2026. Keeping all these innovations & growing demand for backhoe loader in the global market in mind, one can safely conclude that the backhoe loaders are here for an up surging rise.

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ndustry Feature: PVC Pipe

VC industry in India is valued at over Rs. 20,000 Cr’s with 5 major producers & over 6,000 processors, employing tens of thousands of people, making consumer & industrial products. In spite of strong economic growth, India still has a long way to go to realize its infrastructural needs - nearly USD 650 bn will be required for urban infra in the next twenty years. Also, the construction sector contributes to 10% of the GDP. This provides great opportunity for investment & hence for PVC products that are used in these sectors. Fundamentally, PVC is a synthetic resin made from the polymerization of vinyl chloride. It is the third largest plastic in production & consumption. Technology has gradually improved over time with improvements in safety, product quality, production volume, environmental issues & cost. A key feature of PVC is that it can be combined with additives & fabricated into a wide variety of forms. These include pipes & fittings, profiles & tubes, windows & doors, sidings,

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wires & cables, film & sheets, toys & other moulded products & floorings. This quality, together with features such as durability, self-extinguishing property, resistance to most chemicals & oil, mechanical strength & ease of processing, means that PVC is a competitive & attractive option for many end uses in construction & infra, agriculture, electrical products & healthcare. Further, only 43% of PVC’s content comes from oil. The balance 57% comes from salt, meaning that PVC is less dependent on fossil fuels compared to other materials. This feature, coupled with the fact that PVC products can last up to 100 years, can be recycled & can provide products with good quality to price ratio, greatly reduces life cycle costs of PVC.

Indian Scenario

Indian plastic industry is making significant contribution to the economic development & growth of various key sectors in the country which includes Automotive, Construction, Electronics, Healthcare, Textiles, & FMCG. The

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developments in the plastic machinery sector are coupled with developments in the petrochemical sector, both of which support the plastic processing sector. This has facilitated plastic processors to build capacities for the service of both the domestic market & the markets overseas. Today, the plastic processing sector comprises over 30,000 units involved in producing a variety of items, gaining notable importance in different spheres of activity with per capita consumption increasing. The plastic processing industry has the potential to contribute in bringing foreign investments & thus India’s vision of becoming a manufacturing hub. Our study indicates that plastics processing industry has grown at a CAGR of 10% in volume terms from 8.3 MMTPA in FY’10 to 13.4 MMTPA in FY’15 & is expected to grow at a CAGR of 10.5% from FY’15 to FY20 to reach 22 MMTPA. In value terms, the plastic processing industry has grown at a CAGR of 11% from RS 35,000 Cr. in FY ’05 to RS 100,000 Cr. in FY’15. Current low levels of per ||www.constructionmirror.com||

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ASHIRVAD PIPES PVT.LTD., BENGALURU. E info@ashirvad.com W www.ashirvad.com M +91 9902333 333

SMART WATER MANAGEMENT PLUMBING. SANITARY. AGRICULTURE

ndustry Feature: PVC Pipe

capita consumption (11 Kg), increased growth in end use industries, & higher penetration of plastics in various existing applications & ever growing range of new applications could further propel the growth of plastics in India. Infra development & urbanization in India has given a dynamic shape to the Indian construction industry. Various govt’ initiatives like Smart City Mission, Housing for All, & Swatch Bharat Abhiyaan is creating business opportunities for construction industry. Pipes & fittings is one such essential part of the construction industry that is expected to gain momentum in the coming days due to faster developments. This industry has been segmented on the basis of types of PVC pipes & fittings (RPVC, PVC & CPVC pipes & fittings). As per a report, PVC pipes & fittings market in India has grown at a CAGR of 12.5% during the period from FY’09-14. The PVC pipes & fittings market in India is poised to register a double digit growth over the period FY’14–19 & is expected to reach Rs 391 bn in FY’19 as compared to FY’14. To achieve this growth, not only infra development but also progress in irrigation, waste water management, water supplies, sewage & plumbing etc. is expected to play a huge role & are to be major growth drivers to spur the opportunities for pipes & fitting industry. With the impetus given for Real Estate/ Infra development & conversion from Galvanized Iron (GI), the growth rate will improve to 20%. India has been producing PVC for over 50 years now, with the first plant of 6ktpa capacity set up by Calico Mills Ltd., in Mumbai in 1961. After this, India never looked back till about the mid-2000s, with capacity keeping pace with demand. The figure below illustrates how, after the drop in duty levels in mid 2000s, capacity addition completely lagged demand growth, resulting in the zooming import numbers. The PVC industry in India has historically been driven by agriculture till 2000. Thereafter, the main driver for PVC consumption has been infra growth. For instance, Pipes & Fittings, that constituted only 14% of the total consumption in 1975, has grown to over 70% now. Currently, in India, approximately 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. The total demand for PVC in the country in 2014-15 was at 2,564kt. The demand grew by 6% compared to 2013–14

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Future Potential in India

Indian PVC demand in the future will be driven by the following sectors - Agriculture: The govt’ has emphasized on bringing in increased land under irrigation. Infra: The Govt’ is focusing on rural water & sanitation infra which will be a huge consumer of PVC pipes. The development of ‘smart cities’ will be a further boost to PVC consumption in India due to the huge requirement of urban infra in these cities. Housing: The demand for housing from the middle income group in India is expected to increase in the coming years & the Govt’ is taking active steps to bridge the gap in supply. It is estimated that every year, 2 mn housing units are built in urban areas while 4.5 mn units are built in rural areas. One typical urban unit will require about 200 kg of PVC in major applications like pipes, doors & windows, conduits, wires & cables, etc. while one rural unit requires approximately 75 kg of PVC. Thus, the potential for PVC in the building & construction sector alone is over 700 ktpa (without taking smart city development into account). Moreover, introduction of green building concepts is picking up. PVC, being recyclable, less energy intensive & having longer life will be in demand in these segments. Furthermore, development ||www.constructionmirror.com||

of smart cities initiative from govt’ will further drive the urban housing demand. Other sectors: PVC has packaging as well as other applications in the FMCG, pharmaceutical & retail segments. These sectors are expected to grow in the coming years as the customer base comprising India’s young population increases. Further, there are a number of applications in India, which are still nascent or currently unexploited like, wall cladding, technologically-advanced pipes for sewerage application, liners for landfill applications, decking, furniture applications, waterproofing membranes & food grain storage. These products are well established abroad & with ever-increasing urbanization, changing lifestyles, new technologies in construction & other factors, investments in these sectors are expected in the future. This bodes well for the PVC industry. Taking into account the above demand drivers & the CAGR in demand of around 9% from 2002-15, it is estimated that annual demand growth for PVC will be at least 13% in the next 5 years. Demand is expected to cross 5 mn tons in 2020.

TA countries on PVC but will continue to have to import EDC & VCM from non-TA countries at the current import duty of 2%. This would further narrow the duty differential, if not turning them in to negative, which has already impacted capacity addition in the industry. As an illustration, in the case of Japan, duty on PVC will be reduced to zero by the end of 2019. This has helped imports of PVC from Japan jump from an average of 3kt per month in FY’15 to an average of 18kt per month in FY’16. This number is expected to further increase. Granted, by 2019, duty on imports of EDC & VCM from ASEAN member countries, South Korea & Japan will also be removed. However, India imports only a minor share of its requirements of these products from this set of countries, & as such, this is not likely to benefit local PVC industry in any great way. Indonesia is the only TA country that supplies EDC & Japan is the only significant supplier of VCM, with which India has a TA. India actually imports most of its EDC & VCM from Arab countries, the USA & Europe with which it does not have any TAs. It is also thus critical that India does not agree for any duty concession on any PVC product in its negotiations on RCEP & keeps all three HS codes – 390410, 390421 & 390422 – under “exempt” category.

GST, Demonetization, RERA & Budget ‘18

Free Trade Agreements

Over the last few years, India has entered into a number of Trade Agreements (TAs) including free trade agreements, preferential trade agreements, comprehensive economic cooperation agreements & comprehensive economic partnership agreements in order to increase its foreign trade, particularly exports. Some of the agreements signed by India are Comprehensive Economic Cooperation Agreement (Singapore), Comprehensive Economic Partnership Agreement (South Korea & Japan), India – Malaysia Free Trade Agreement, India – ASEAN Free Trade Agreement, etc. India has committed to reducing import duties on imports of PVC, EDC or VCM in almost all the TAs, but timing & extent of reduction varies. There is a risk of inversion of import duties across the PVC value chain as a result of the trade patterns between India & the TA as well as non-TA countries. Today, the PVC industry imports most of its feedstock from countries with which India does not have TA. As a result of the TAs, India will have lower or no import duty for some ||www.constructionmirror.com||

GST, is hailed as most important tax system in India. With its implementation it has driven up the efficiencies by cutting out the multiple taxes that are charged. It has also got much ease & transparency in the business & also has been fair enough to curb down the unethical practices. GST is an indirect tax levied on goods & services in India wherein the goods & services are divided into five tax slabs that is 0, 5, 12, 18, & 28%. On the other hand, the announcement Demonetization made by the govt’ created a big hullabaloo, prolonged cash shortages etc., which slowed down various markets & sectors. However, with time the impact of the same is reduced & the money circulation is in line. Demonetization affected the money circulation which in turn slowed down the markets in most categories, which phase is over now. GST is a positive step & a major systemic change, the impact of this is felt in real estate sector too, but we are hopeful it will settle soon. RERA will benefit the Real Estate Industry in the long run. It will attract more investment by large players & this in turn will benefit the home buyers at large. During the budget 2017-18 for the infra sector, the total allocation for the infra development in 2017-18 was Rs 3,96,135 Cr’. For irrigation sector, the govt’ announced Rs 20,000 Cr’ to NABARD for long term irrigation funds & 5000 Cr’ for setting up of dedicated micro irrigation fund. On the other hand, Under Swatch Bharat Mission (rural) the govt’ prioritized pipe water supply for open defecation free villages & safe sanitation. The budget of this year is good for the infra sector, especially water & energy. The Rs.19,428 core allocation for water supply projects under AMRUT schemes will help in providing drinking water facilities to urban & semi urban households. The increase from Rs. 20,000 Cr’ to Rs 40,000 Cr’ for irrigation projects & dedicated micro irrigation fund || September 2018 ||

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ndustry Feature: PVC Pipe

of Rs 5,000 Cr’ will help the agriculture sector to grow & have good production that will contribute to the growth in our economy. These projects will require huge quantity of bulk pipeline to be laid for transporting water from source to destinations thus having opportunities for pipe manufacturers in India. The demand for pipes from oil & gas sector will also increase with the several development schemes by the govt’ comes under implementation. This year’s budget with progressive thinking will lead India to an inclusive growth path with clear focus to develop robust infra & lift the economy to achieve the target for next fiscal.

Challenges faced by processing industry

The 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 one-fifth to one-tenth the prices prevailing in international markets. India’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. The 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

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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. India’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 exclusively on imported technology/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 significant challenge to plastic processors.

pipes over traditional/ galvanized 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, infrastructural 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, approximately 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 the overall production capacity in FY15, it is the fastest growing segment of the PVC pipes & fittings industry in India.

Opportunities in Infra

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. The plastic industry plays a significant role in this endeavor. The Indian pipes business has been growing rapidly in the past decade, largely due to increasing demand for 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

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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 ||www.constructionmirror.com||

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 significant 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). 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. The 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. Shifting focus towards premium products: 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 ||www.constructionmirror.com||

industry has been growing rapidly in the Indian market & from a stage of infancy the field has risen to almost 70 mn in volume, consuming almost 170 kT of polypropylene material. The popularity of plastic furniture has grown since it offers features unavailable in conventional wooden & metal furniture, such as easy 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.

Conclusions

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. The 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 significant 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. The 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 FY’15 to reach 22 MMTPA by FY’20. Both the PVC & the caustic soda industries are essential to the growth of the Indian economy

with both products finding applications in a variety of sectors as well as being a source of employment. Today, close to 50% of the demand for PVC in the country is met by imports. Though the level of imports have been increasing over the years & thereby meeting the supplydemand deficit for PVC in the country, it remains to be seen whether this can be sustained over the medium to long term when domestic demand grows. Very little capacity expansion is seen in the countries which are currently exporting to India, meaning that there is an upper threshold beyond which these countries cannot supply. There could be a case in the future where Indian demand for PVC could possibly outstrip supply. This would lead to processed PVC products not being available for use as well as a lot of downstream processing facilities having poor capacity utilization levels. The immediate effect would be loss of employment. Considering that tens of thousands of people are employed by the PVC downstream industry, the effects would be detrimental. It would

also have a deleterious impact on the foreign exchange outflow & the trade deficit. Increase in domestic production capacity of PVC would give processors a secure & stable source of supply whereby plant capacity utilizations levels can be high leading to wealth creation in the economy. Increase in PVC production capacity will also facilitate increase in chlorine utilization leading to better ECU economics & enhancement in caustic soda capacity. Caustic soda production capacity enhancement is also reducing due to the influx of cheaper imports from the Middle East, where power costs are lower. When the country’s goal today is to ‘Make in India’, increased imports & lower manufacturing levels contribute to loss of potential employment & widening the current account deficit As such, unless certain corrective fiscal measures are taken, India runs the risk of missing out on the growth opportunities in both these sectors.

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Guest Article

Mr Rama Rao

EVP Sales, Marketing & Aftermarket, HD Trucks

VE Commercial Vehicles Ltd.

he biggest developments in technology have probably been in communications, and trucking is no exception. The way trucks and drivers manage their fleet is undergoing a sea change, and it is only going to scale up further in the years to come. Until recently, infrastructure investment and lack of customer demand sidelined telematics from the broader picture. With mobile technology and smart phones inbuilt internet and GPS facilities having penetrated the length and breadth of India, telematics revolution is gradually making its presence felt. The ease of collecting vehicle and driver data on the phone, is proving to be a game-changer for fleet management. And this has been possible only through telematics technology and the usefulness of this system. In the last few years, vehicle telematics has

revolutionized the whole scenario of fleet transport with a new set of innovations. It is shaping the future of the trucking industry, taking efficiencies and hence, profitability to new levels. The benefits are multifold. It allows constant access to the truck, including monitoring vehicle location and also travel duration. This wireless communication has also made it possible for fleet owners and also drivers to deliver better performance. It takes the estimate and guesswork out of the situation through constant two-way communication. It delivers information to optimize vehicle utilization. Telematics technology improves maintenance and repairs, alerting owners when the service is due. It also improves communication and navigation and hence, fuel efficiencies. Fuel savings have been found to increase. All this data is valuable to fleets as it helps with reduced downtime.

The Road Ahead

Telematics is a becoming an important

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aspect of the industry and it could soon become the standard norm / default setting for heavy trucks. It is important not only for the health and performance of the trucks, but also ensuring well-being and efficiencies of the business. This disruptive wireless communication is a fast growing segment. According to a study, the telematics market is estimated to be worth $39 billion, and is expected to grow at 18% rate by 2022. Major chunk of this pie is going to be dominated by commercial vehicles. And countries like India and China, which are large CV markets, will drive this growth. India, is actually one of the fastest growing telematics markets and the installations in CV is expected to grow to 9.3% in 2023 ( from 2.4 % in 2016) as per a research conducted by Frost and Sullivan. One of the biggest benefits is also towards safety on the road. These analytics help fleet owners keep track and get insights on driver behaviour and performance. Any damage or loss of trucks due to accidents and thefts are also alerted to the owner.

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The growth of telematics, globally, has been in the logistics and supply chain segment in domains such as- information, navigation, safety, and remote diagnostics. Automotive companies have integrated telematics to monitor vehicle performance and ensure vehicle and passenger security.

The India Scenario:

In India, the main drivers of the commercial vehicle telematics market have been increasing fuel prices that have compelled the fleet operators to opt for telematics. Telematics offers fleet management solutions which will play a significant role in reducing fuel costs by cutting down empty runs, thereby reducing overall vehicle downtime. Other factors that influence the demand of vehicle telematics are the safety and security issues. Road safety and proper traffic management is a huge concern in India and telematics offers efficient solutions in this sphere – such as thorough driver risk assessment technology and driver ratings. Analysis of real-life driving behavior, driving patterns, live alerts and warnings can be produced in case of any violation of safe driving practices, such as over speeding, hurried braking, seat-belt use, indicator use, checking blind spots, engine revving, wrong gear selection and rash acceleration. Telematics transmits real time data generated by the vehicle to the back-end server which is then converted to meaningful information and reports. This data can be fuel related, distance travelled, error codes, driving pattern etc. Integration of telematics can convert a normal vehicle into an intelligent version with a few cutting-edge features such as fuel management, GPS navigation, vehicle tracking, automatic driving assistance systems support, triggering alerts in case of unauthorized interference, remote service support, SOS transmission of diagnostics information during

emergency and other related features. CV manufacturers in India have over a period of time also started to realize that telematics is not just about monitoring, but also about achieving transparency in business processes and efficiency. Remote diagnosis & assistance can help owners in getting improved uptime/turn-around time, while CV manufacturers will benefit by reduced warranty costs through preventive actions, and enhanced customer satisfaction. Eicher has pioneered the use of intelligent technologies in trucks and tippers to bring a significant improvement in quality, efficiency and productivity operations. Eicher is one of the first players to introduce the Fuel Coaching system in their Pro Series trucks which enables the driver to improve his driving and achieve better fuel efficiency. Eicher Live, a telematics enabled advanced fleet management is a “Live Hub” of real-time communication and actions by customers, dealers and Eicher. It allows the management of truck fleets by monitoring their movement, fuel consumption and maintenance needs. It enables proactive maintenance of the truck. Eicher Live offers granular views at the level of a driver, a vehicle and a time span. It’s a real time dashboard of the fleet, tracking the most important factors. . Together with the fully equipped Eicher service network, this ensures preventive and corrective maintenance of the truck, thus delivering superior uptime. Telematics does play a crucial role for commercial fleet operators as it will also make legal process more hassle-free as there would be more chances of the said events being recorded in the form of images or electronics transmissions. It also helps in lowering the vehicle insurance premium. For instance, telematics in vehicles tracks vehicular thefts.

Current technologies available are expected to prevent theft of vehicles but very few have solutions that can report theft automatically. This can be done by a vehicle telematics solution. Also, the use of telematics will lower accident probability, leading to reduced insurance premium. Some leading FIs in India (e.g. ICICI) have already started evaluating the telematics factor in deciding insurance premium. A tool for driver engagement Drivers’ community is an important and critical element of CV industry and telematics can help to achieve greater harmony between drivers and owners by increased drivers’ engagement, reliable data for performance based incentives, and enabling safety and infotainment needs of driver. The increasing penetration of affordable smart mobile devices is also helping in increasing telematics’ reach as the service providers are integrating the offering on mobile platforms for providing information and data on the move. India still has a long way to go in adoption of vehicle telematics. While India is a fast growing market, what is seen as a hurdle is the high cost involved in telematics. Another challenge occurs from the low range utilization of telematics technologies and technical unawareness among consumers. However, the application of telematics and data analytics in the logistics space presents a massive opportunity for higher revenues and operational profits for fleet operators. As competition intensifies, advanced telematics will be a key enabler for sustainability in trucking, and a business imperative to maintain a competitive edge. The coming years will witness the rise of the connected ecosystem, which will be enable fleet operators and external stakeholders such as governments, insurance companies etc., for efficient operations.

www.vecv.in ||www.constructionmirror.com||

|| September 2018 ||

CONSTRUCTION MIR ROR

Guest Article

anitou Equipment India Private Limited is a fully owned subsidiary of Manitou, a diversified global manufacturer of a broad range of equipment that is focused on delivering reliable, customer-driven solutions for various applications including construction, infrastructure, quarrying, mining, shipping, transportation, refining, energy, utility and manufacturing industries. At Manitou, “Handling Your World” is more than a slogan - it’s a promise. It’s what you can count on from our equipment and the thousands of Manitou team members around the world who are here to support you. We provide you the best handling solution for your needs. The brand product range include all-terrain telescopic forklift-trucks, semi-industrial and industrial all-terrain masted forklift-trucks, aerial work platforms for personnel, truck-mounted forklifts, warehousing equipment, backhoe loaders, skid steer loaders and attachments. Providing engineering support for these machines is not the only work we do….we support in creating experience. With increased government spend on infrastructure projects, there has been a continuous increase in demand for Construction equipment by customers .Customers prefer products which are fuel efficient and high on productivity and at the same time reliable.

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Manitou Equipment India Pvt. Ltd. quests for excellence in product support and best productive machines with greater versatility. Recently they have forayed into production of Skid Steer Loaders in India. After Exhaustive research, travel, testing and engineering excellence, 1700R Skid Steer Loader was launched in August 2018.1700R is manufactured from World class facility in Greater Noida to cater Domestic Market. A perfect fit for productivity and ease of use in constrained spaces, 1700R Skid Steer Loader is powered with 60 HP Simpsons engine known for its reliability. With Rated Operating Capacity of 769 Kg, 1700R provides best in class Operating Capacity for higher material handling and working range to customer. This machine is manufactured on five major factors which are explained as mentioned below: 1. Power – Compact Design and Full on Power : Hi-power drive chains powered by heavy duty drive train coupled to powerful 60 HP engine gives best performance with clean emissions. With only 63 inches in width, 1700R is capable to perform well in cramped and constrainedspaces 2. Performance: Radial lift design helps in delivering excellent digging performance and superior mid-lift reach and higher forward reach.

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Low profile boom provides optimal side-to-side visibility. 3. Operator Safety and Comfort : Unique Hydraloc feature helps in automatic interlocking of lift, tilt and drive systems when operator leaves seat thereby increasing operator safety. Also machine operator presence mechanism helps in allowing system to work only when user is on the seat and restrain bar is lowered. With precise control through standard proportion hydraulics and large entry area helps in Operator to have comfortable operating environment. 4. Ease of Maintenance : Tiltable ROPS/FOPS cabin helps in easy maintenance of machine . 90 degrees swing out rear door helps in easier daily regular maintenance. Front Chassis cleanout helps in easier maintenance. Side chain cover helps in better maintenance of chain tension of final drive axles. 5. Versatility : A full range of versatile attachments makes 1700R most versatile machine on ever demanding job site. With above features, 1700R is perfect companion for customer job site demands and to provide best Returns on Investment to customer to “ Make a Mark “. ||www.constructionmirror.com||

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|| September 2018 ||

CONSTRUCTION MIR ROR

Guest Article

NH Industrial Capital, the financial services divisionof CNH IndustrialN.V. (NYSE: CNHI / MI: CNHI), launched its retail finance offeringfor Indiaunder CNH Industrial Capital (India) Private Limited at an event held in the national capital regionattended by brand representativesof CNH Industrial Capital, New Holland Agriculture and CASE Construction Equipment as well as dealers selected from the CNH Industrial sales network in India. CNH Industrial Capital is a global financial services player in the Agricultural and Construction Equipment and Commercial Vehicles finance businesses and supports the CNH Industrial brands’ customers and dealers with customized solutions by offering a full range of retail financing, leases, rental programs and insurance products. CNH Industrial Capital (India) Private Limited will dedicateits field based financial specialists called “Capital

CONSTRUCTION MIR ROR

Mitras” to New Holland Agriculture and CASE dealerships across the country to interact with customers to understand their financing needs and offer customized financial solutions to meet their requirements making use of a digital platform for a faster turnaround time, transparency and real-time tracking. Commenting on the launch of CNH Industrial Capital (India) Private Limited’sretail finance services in India, Mr. Raunak Varma, Country Manager, CNH Industrial India, said,“Ournew retail finance arm will enhance CNH Industrial’s value proposition in India and support our dealers and end customers with tailor made finance offering. What sets CNH Industrial Capital apart is its in-depth understanding of the markets and customers gathered over more than 60 yearsof working with users of agricultural and construction equipment and commercial vehicles, across the

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globe.” Mr. Daniel McTaggart, Head of Financial Services, CNH Industrial APAC, said,“India is one of the most exciting opportunities for CNH Industrial. Both agriculture and construction equipment sectors are experiencing consistent growth,and with the launch of CNH Industrial Capital (India) Private Limited’sretail operations, we are looking forward to offering competive retail finance solutions to customers of New Holland Agricuture, Case IH and CASEConstruction Equipment in India.”

||www.constructionmirror.com||

Author: Rajinder Raina

aving discussed the maturing of excavator market last month, I now take up other products which were catching up fast in the Indian market. In the case of vibratory compactors, greater than 10 ton class soil compactors got introduced. Tandem vibratory rollers (TVRs) also caught up from 1999 onwards. Year 2005 saw introduction of Pneumatic Tyre Rollers (TVRs) for sealing and surface finishing of asphalt roads. These road compaction equipment saw a spurt in demand during NDA- I regime under Shri Atal Bihari Vajpayee. National Highway projects, the Golden Quadrilateral (G.Q) and NEWS corridors got constructed which changed the face of Road Construction in India. These national highways led to introduction of motor graders of different horsepower capacities as also Scrappers, Soil Stablizers etc. The scene on material handling front saw a major shift in 1999 as the Pick-n-Carry (PnC) crane technology got upgraded from tractor backend (Escorts Hydra cranes) to commercial vehicle platform. ESCORTS FARANA K-10 was the first of its kind. These cranes were safer for man and material as well as faster in material handling and could travel at much higher speed. This particular series of cranes grew up at a faster pace in proportion to traditional Hydra cranes. Year 2011 saw the PnC market cross 8000 units with increasing bias towards non-hydra cranes. More than 90% market was shared between Escorts and ACE. As newer techniques and procedures were getting adapted at various project sites, there was a demand for specialised

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equipment growing up. However, the numbers were not big enough to justify local manufacturing. Strange as it is that in India, there is no difference in the Import Duty Tariff on completely built up units (CBU), semi knocked down (SKD) or the aggregates/components. This further defeats the purpose of localization when the volumes are low. This led to import of CBUs of various equipment. In the material handling, Telehandlers and Aerial Work Platforms (AWPs) were received well in the year 2011. Telehandlers with rib erecting attachments, loader bucket& Forks etc. got imported from various European countries for tunnelling work in hydel projects, roads and railways. AWPs also got imported and used for multipurpose works in various factories for erection & subsequent maintenance. Year 2006 onwards there was a huge growth in imported equipment wherein high-end slew cranes (more than 100T Cap), truck trains, lattice boom cranes, crawler cranes etc. got imported for major refineries and steel plants in particular. As the real estate market boomed, tower cranes could be seen all around particularly in metro cities. Most of these cranes were imported. Truck mounted cranes also made foray into the Indian market immediately after yr 2000. Fassi from Italy was the first one to enter the market. In the industrial vehicles, the technology saw a major upgrade with Doosan (then Daewoo) Forklift Trucks entering the market. It was for the first time that LPG powered forklift trucks were launched and well accepted by food and beverage

industry. This was followed by electrical forklifts with AC drive. These forklifts gave a new definition to industrial material handling. Output and through put in warehouses acknowledged the deliverables of this technology. These machines were customized for various applications like paper, white goods, multiple pallet handling using special attachments. The point being driven home in the last few paragraphs is that machines were moving from generic to specialised/ customised application. Indian market took its time to open up to imported equipment as the customers were reluctant to pay the premium & were not too sure about the after sales service support, on the parts availability & the service capability front. The industry rose up to the occasion & took care of the service aspect by working on RT & TAT with better proximity of service outlets. This proved to be the turning point as the best in class/contemporary equipment started getting accepted with ease. This is true of Concreting, Crushing & Screening as also Mining Industry. Today, the industry is working in anticipation of demand in technology, productivity, reliability & operator friendliness & safety. The products spoken about were limited rather than comprehensive/exhaustive as the idea is to showcase the state &status of the industry as a whole viz-a-viz the demand. Next few years will see many new products, upgrades & newer technologies including the IoT which is a complete story in itself. All in all, it is a win-win situation for manufacturer as well us users/operators.

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CONSTRUCTION MIR ROR

Guest Article

An ISO 9001 : 2015 Company

LLTECH UNIBLACK is now a day’s known for developing remarkable and exceeding asphalt plants for the Indian civil construction market, Alltech is one of India’s pioneer manufacturer & current market leaders of road and civil construction machinery, known for quality, optimization service, strong leadership and years of experience located at Mehsana Gujarat in 24000 SQM area with 5000 SQM production area. Alltech Industries India Pvt. Ltd. Mehsana, Gujarat (Indo-Turkish JV) is keen to expand its footprint in the manufacturing of Road Construction Machinery market with its newly launched Asphalt Batch Mix Plant. We serve a wide base of customers in the region. Its unique technology applies into road construction industry by manufacturing an inimitable plant that produce asphalt used in paving highways and airports, road maintenance and widening and development of road projects. The rated output of our UNIBLACK Series Asphalt Batch Mix Plant is between 80 – 240 TPH. Alltech has produced a whole

CONSTRUCTION MIR ROR

range of Asphalt batch mix plants are designed for maximum efficiency and minimum operational cost. UNIBLACK series Plants are outfitted with the latest technology, quality components, process controls, automation and proven our performance. UNIBLACK series plants hence outstandingly Guarantees – Use of different modified material for extend wear and tear parts, Huge power savings, maximum Fuel Efficiency with auto modulating burner, Reliability, Internationally complying pollution control system, Lower Maintenance, User Friendly Fully computerized automatic process controls and much more. Any sort of liquid (light diesel oil, fuel-oil, diesel) natural gas or LPG can be used in the asphalt plants. Operating cost is low because of low energy needed, optimized fuel consumption, long life of system units and minimized maintenance needs. The operation of the plant can be controlled continuously through the Control Room. Furthermore, the plants are safe with respect to noise, dust, and heat. It is environment and user-friendly. It

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is improved for fast dismantling and reassembling. Affordability, end product consistency, cost efficient production rates, user-friendly operations and simplicity of erection are some of the driving factors of the plant. The Company will be promoting its road equipment solutions through direct sales, and is also in the process of setting up a marketing and service team. It may even consider appointing dealers in a phased manner. Our Customers will get service support from commissioning of the equipment during the initial stage to completion of the entire road project. The company also provides operator training and timely availability of parts whenever needed. For Further Details :

Alltech Industries India Pvt. Ltd. At. Geratpur Patiya, Near Saffrony resort, Mehsana-Ahmedabad highway, At & Post Ditasan, Mehsana, Gujarat, India. M: +91 9825006188| Email: info@alltechgroup.com | Web: www.alltech-group.com

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|| September 2018 ||

CONSTRUCTION MIR ROR

Guest Article

Tejas Patel Managing Director

s there are several ingredients to be added in appropriate proportion while preparing the concrete but fortunately the invention of concrete batching plants, cement silo and other construction equipments After a 15 years of experience Venus Equipment is the leading solution for construction industry . Mr. Tejas Patel the Managing director of Venus equipment , who said concrete batching plant and other equipments of construction machineries are the friendly solutions which is preferred by construction industries globally In corporate in year 2010, Venus is a well known brand in the field of

Concrete Batching Plant Manufactures in India. We have wide range of mobile type concrete batching plants, reversible concrete mixers, stationary concrete batching plants , Concrete canal lying pavers , Concrete road pavers and other products to mix lay and transit the fresh concrete. In future road construction project high capacity of concrete batching plant capacity of 120 Cum/hr is suitable for the work. We have our own state of the art manufacturing units spread over more than 1,50,000 Sq Feet which are equipped with CNC, Plasma Machines , Overhead Cranes, Well Equipped in house machine shop backed by over qualified .

Venus Equipment

www.venusindustries.net 84

CONSTRUCTION MIR ROR

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For road building making equipments our high capacity of stationary concrete batching plant which are available on 20 cum /hr to 120 cum/hr with Pan/ Twin Shaft Mixers, and for Mobile type concrete batching plant starting from 15 cum/hr to 45 cum/hr with reversible drum /pan/twin shaft mixers . Reversible concrete mixers available in electrical and diesel engine versions. The key features of our stationary concrete batching plant series VI ST 120 cum/hr, which made from Sicoma / BHS make 2 cum/batch twin shaft mixer with auto greasing facility is installed in said plant. Having in built R & D department, Unique Mixer Unit and state of the art machine design, combined with latest PLC based panel we have made the concrete work simple and hassle free. This new generation of batching plants are easy to operate and having least operation and maintenance cost. Venus make high output capacity of static plant which is 120 cum/hr of

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output capacity other main features are given below • Mixer unit available in turbo pan type Mixer / twin shaft mixer • Main mixer reduction gear box which is imported planetary gear box • Main drive electrical motor : 20 HP , 30 HP, 40 HP , 60 Hp , 50 HPx2 nos , 75 HP X2 nos • Material storage unit which are available in 2x2 cross bin and in line four bin feeder • Material storage capacity : 20 cum,30 cum,40 CUM,60 Cum,90 cum & 100 cum • Digital load cell based weighing system of material • Batch feeding system through inclined belt conveyor/inclined skip bucket • Cement feeding system through screw conveyor • Water weighing system through

•

• • • •

•

digital load cell based weighing of water in separate tank Admixture Dozing system though digital load cell based auto admixture dozing system Control panel is fully automatic PLC based control panel Control cabin are provided Concrete discharge chute height from ground level is 4 meter Total connected load power in HP are 52 HP,74 HP,87 HP,120 HP,145 HP,200 HP&275 HP Suggested DG set are 62 KVA,82 K VA , 1 2 5 K VA , 1 6 0 K VA , 2 0 0 KVA,300KVA &400 KVA

Optional Accessories

• Computer SCADA system and software • Cement storage silos • Fly Ash feeding system and storage Silos • Moisture controlling system • Water Chilling Plant.

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CONSTRUCTION MIR ROR

Guest Article

he visit was primarily to keep the association alongside with Ammann India new products launches, technology, processes being followed together with Ammann India focus on Skill development.

delegation of 34 members of Builders Association of India, Gujarat Chapter super headed by Mr. Dinesh Patel, President,visited Ammann India factory, Ditasan on 18 August. The visit was primarily to keep the association abreast with Ammann India new products launches, technology, processes being followed together with Ammann India focus on Skill development. It started with a guided factory tour of machines & plant division followed with light equipment demonstration and a complete organization overview & product overview presentation.

Ammann Academy too was showcased, together with different modules for operators and technicians. These Modules help & honor the skills & via this training contribute to the â&#x20AC;&#x153;Skill Indiaâ&#x20AC;? governmental initiative. At the end the session concluded with Q&A. The delegates were served dinner in Ammann India canteen The visit was very positive, with association members impressed by the facility and learning much about Ammann capabilities.

www.ammann-group.com 86

CONSTRUCTION MIR ROR

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|| September 2018 ||

CONSTRUCTION MIR ROR

Guest Article

• Lean manufacturing initiatives of The Manitowoc Way plus new equipment help shorten lead times and enhance quality at new Pune facility. • New factory is smaller than previous plant but with the same manufacturing capacity. • The factory produces Potain MCT 85 and MC 125 cranes for customers in India, as well as surrounding markets such as Sri Lanka, Bangladesh and Nepal. 88

CONSTRUCTION MIR ROR

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anitowoc has opened a new Potain tower crane factory in the Indian city of Chakan, which lies outside Pune, with production beginning in first-quarter 2018. This facility replaces the company’s previous factory in Pune, which opened back in 2007. With a smaller land area as well as new equipment and lean processes, the new facility produces Potain MCT 85 and MC 125 cranes more efficiently and with even greater quality. David Semple, Manitowoc’s senior vice president for the Middle East and India, said the development of the plant had been closely aligned to the principles of The Manitowoc Way. “ This new factory is another demonstration of how The Manitowoc Way business philosophy guides our operations,” he said. “We are focused on developing and executing lean strategies to improve efficiency, profitability, and value for our stakeholders. Our customers will benefit from the faster delivery times and enhanced quality of this new facility while our employees can feel proud to work at one of the most advanced tower crane factories in Asia. Potain has long been a marketleader in India and we want to ensure that continues, so opening this factory is an important step.” With a production area of 9,760 m 2, the new factory’s manufacturing footprint has been reduced by one-third

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compared to its previous facility but has been designed for the same level of production output. Among the upgrades in equipment at the facility are a new paint shop and shot blasting machine cells, complemented by intensive worker training to ensure Manitowoc produces the finest tower crane products. The facility layout delivers other productivity improvements. Most notably, the time to transport materials from the assembly area to the finished goods yard is reduced by 68%. There are other significant savings in material transport from the steel yard, supplier

yard and fabrication area. Time savings are not limited to onsite operations either. Although still in the Pune area, the new factory sits some 45 km from the old location, in the city’s industrial belt of Chakan. Being situated in Chakan offers better connectivity to national highways, speeding customer deliveries within India. In addition, the new facility is closer to Mumbai from where Potain cranes are shipped to export markets. “The majority of cranes manufactured at this new factory will be shipped to customers in India,” said David Semple. “But we will also serve neighboring markets such as Sri Lanka, Bangladesh and Nepal. All of our customers will benefit from the faster deliveries and enhanced quality of Potain cranes in this region.” The Potain MCT 85 and MC 125 are popular units in India and the surrounding markets. The MCT 85 can lift a maximum of 5 t or 1.1 t at its jib end of 52 m. It is a practical unit designed for easier transportation, with its entire top portion able to travel on just two trucks. Assembly is easier too as most of the pre-assembly work happens at the factory before the crane is delivered to the customer. The MC 125 has a maximum capacity of 6 t and maximum jib length of 60 m. It can lift 1.15 t at its maximum jib end.

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CONSTRUCTION MIR ROR

Guest Article

• Bridge and Roof is using a Potain MC 205 B. • The crane is lifting replacement parts for the 180 million-liter water tank.

ndian contractor Bridge and Roof chose a Potain MC 205 B tower crane to handle lifting work on the refurbishment of the 107-year-old overhead Tallah water tank in Kolkata. The Tallah tank stands up to 33 m tall in parts, with an area coverage of 30 m2 and it can hold up to 180 million liters of water. With the MC 205 B’s proven performance, the company knew it had the right tool for the job. “We trust the Potain MC 205 B to handle lifts on what is the world’s largest overhead water tank,” said Soumyajit Sardar, deputy resident manager for Bridge and Roof. “We like the efficiency of the crane. This is one of two units we own, both of which have been used with great success on numerous projects across India.” Among the parts being replaced for the Tallah tank are the base, roof joists, roof plates and penstock gates. The heaviest loads weigh 2 t, which the MC 205 B can handle even at its maximum jib length of 60 m. The crane has a maximum capacity of 10 t, and its working height is 50 m. The refurbishment work is part of the Indian government’s Atal Mission for Rejuvenation and Urban Transformation (AMRUT) launched in 2015. One of its goals is to improve the water supply and sewerage infrastructure in the country. The Tallah tank supplies drinking water to millions of people in north and central Kolkata, making it a prime target for AMRUT. Work is scheduled to finish in November 2019 The MC 205 B is a popular choice for owners, with hundreds still in operation across India. The model was replaced in late 2014 by the topless MCT 205, which continues the proud legacy of the MC 205 B and is already establishing itself as a popular choice for tower crane owners across Asia. Bridge and Roof is a construction company with over 1,300 employees and it handles a variety of projects including road building, general construction and stadium development.

CONSTRUCTION MIR ROR

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CONSTRUCTION MIR ROR

Tenders 31150908

Ref. Number :

30143315

Ref. Number :

31292548

rehabilitation and upgradation of tikamgarh_ shahgarh road sh_37 and tikamgarh_orcha sh_37 under ppppmprsp

Requirement :

Construction of Group Housing.

Requirement :

Tender Estimated Cost :

INR 620,000,000

Construction of Grade Separator at Medavakkam (Balance Work).

Closing Date :

20/09/2018

Document Fees :

INR 16,800

Document Fees :

INR 50,000

Location :

Bangalore - Karnataka

EMD :

INR 3,700,000 INR 728,400,000

EMD :

INR 31,100,000

Tender Estimated Cost :

INR 3,107,200,000

Closing Date :

25/09/2018

Location :

Bhopal - Madhya Pradesh

Ref. Number :

31330340

Requirement :

Improvement to Road Joining District Place in District (Kolambi Ghatanji) ( Ii) Improvement to Road Joining Two Taluka Places in District (Pandharkawada - Sibala)

Ref. Number : Requirement :

Document Fees :

INR 11,200

EMD :

INR 50,000

Tender Estimated Cost :

INR 2,950,900,000

Closing Date :

25/09/2018

Document Sale To :

21/09/2018

Location :

Yavatmal - Maharashtra

Ref. Number :

31010892

Requirement :

Construction Of 4 Lane Elevated Corridor In Dessa Town Between Km 565.850 To Km 569.600 Length 3.750Km On Nh-27 Old Nh-14 In The State Of Gujarat On Epc Mode.

Document Fees :

INR 30,000

EMD :

INR 22,300,000

Tender Estimated Cost :

INR 2,227,500,000

Closing Date :

19/09/2018

Location :

Disa - Gujarat - India

CONSTRUCTION MIR ROR

Ref. Number :

31221993

Closing Date :

27/09/2018

Requirement :

Rehabilitation and Upgrading of Tikarapara Sejbahar Semara Bhakhara Dhamtari Road (Old Dhamtari Road)(Length= 54.68 Kms) in Chhattisgarh

Document Sale To :

24/09/2018

Location :

Chennai - Tamil Nadu

Ref. Number :

31188091

Requirement :

Construction of 4 lane rob twins 2 lanes ant its approaches in replacement of level crossing at km 3.950 on nh0-2b, railway km 226/0 at talit.

Tender Estimated Cost :

INR 1,039,800,000

Closing Date :

27/09/2018

Location :

Birbhum - West Bengal

Ref. Number :

31284698

Requirement :

Construction of building of sdrf battalion head quarter cum training center.

Document Fees :

INR 21,000,000

Tender Estimated Cost :

INR 2,129,641,116

Closing Date :

18/09/2018

Location :

Raipur - Chhattisgarh

Ref. Number :

31234145

Requirement :

Construction of 25,000 Mt Godown Complex at Bhatar Under Food and Supplies Department, Govt. Of West Bengal

EMD :

INR 9,787,693

Tender Estimated Cost :

INR 489,384,659

Closing Date :

15/09/2018

Document Sale To :

15/09/2018

Location :

Bardhaman - West Bengal

Ref. Number :

30770470

Requirement :

Construction Of Roadbed, Bridges, Supply Of Ballast, Installation Of Track, Electrical (Re And General) Snt Works Btw Jmpt-

Document Fees :

INR 20,000

EMD :

INR 40,000,000

Tender Estimated Cost :

INR 7,940,100,000

Closing Date :

28/09/2018

Document Sale To :

28/09/2018

Location :

Visakhapatnam - Andhra Pradesh

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construction of disaster management authority building. Tender Estimated Cost :

INR 720,000,000

Closing Date :

15/09/2018

Location :

Dehradun - Uttaranchal

Ref. Number :

31333073

Requirement :

Construction of Building s Including Allied and External Development Works for National Sports University.

Tender Estimated Cost :

INR 964,000,000

Closing Date :

17/09/2018

Location :

Imphal - Manipur

||www.constructionmirror.com||

Projects Project Ref. No :

179870

Project Ref. No :

179761

Project Location :

Chennai - Tamil Nadu - India

Project Title :

Construction Of Axial Roads Projects In Punjab

Project Title :

Road Project In Bihar

Estimation

Refer Document

Company Name :

Road Construction Department

Status :

Announced

Project Detail :

The Road Construction Department of Bihar envisages two-laning with paved shoulder of Sakri to Madhubani-Rajnagar-BabubarhiKhutauna-Phulparash Road on NH-57 (NH-27 new)

Project Ref. No :

179832

Project Title :

Flyover Project In Maharashtra

Company Name :

Pune Municipal Corporation

Project Detail :

The local unit of the Shiv Sena has demanded extension of the proposed flyover planned in Market Yard area up to Gangadham Chowk The Pune Municipal Corporation (PMC) has planned a flyover on busy Jawaharlal Nehru road starting from the Seven Loves Chowk near Gultekdi up to the office of the State Wearhouse Corporation towards Market Yard. The project recently received go ahead of PMC’s standing committee The local workers of Shiv Sena, however, have raised objection over the flyover alignment claiming that landing of flyover near the Wearhouse Corporation will not resolve traffic issues in the area unless the facility gets extension up to Gangadham chowk which is about 600 meters ahead of existing landing An agitation was organised by Sena workers at the flyover spot. Later, workers submitted a memorandum of demand to civic chief urging an urgent interference in the issue before the administration plans execution of project Sena leader Ashok Harnaval and Bala Oswal said that significant numbers of vehicles will benefit after extension of flyover’s landing up to Gangadham chowk. All these vehicles travel daily from city’s central area towards Kondhwa, Bibwewadi and Swargate

Company Name :

Central Public Works Department

Project Detail :

The Central Public Works Department has floated tender for construction of axial roads in Punjab The scope of work envisages consultancy services fo r preparation of detailed project report (DPR) for construction of axial roads (roads leading from locations inside Indian territory to border security fence) along Indo-Pak Border under Abohar, Ferozpur, Amritsar and Gurdaspur in Punjab

The road stretching in length of 72 km will be executed on engineering, procurement and construction (EPC) basis. Jindals Consortium in joint venture (JV) with Manglam Associates bagged an order worth Rs 2.22 crore for the consultancy services the JV company has initiated consultancy services which includes preparation of feasibility study and detailed project report

The work will be executed in a period of six months Project Location :

Multi Location - Punjab - India

Estimation

Refer Document

Status :

Announced

Project Ref. No :

179785

Project Title :

Plans To 6 Lane Road Project In Maharashtra

Company Name :

Government Of Maharashtra

Project Detail :

It’s finally decided. MahaMetro has been assigned the task of demolishing the railway station flyover after September 25. With it gone, the railway station road will be widened to six lanes. Central government has sanctioned Rs 234.21 crore for the purpose by under Central Road Fund Scheme, said Union transport minister and city MP Nitin Gadkari here

Project Location :

Nagpur - Maharashtra - India

Estimation

INR 234.21 Cr / INR 2.34 Bn

Status :

Announced

Project Location :

Madhubani - Bihar - India

Estimation

Refer Document

Status :

Announced

Project Ref. No :

179943

Project Title :

Olympia Teknos Office Complex Project In Tamil Nadu

Company Name :

Olympia Group

Project Detail :

Olympia Group, Chennai-based real estate developer, is developing an office complex ‘Olympia Teknos’ at Guindy SIDCO Industrial Estate in Chennai district of Tamil Nadu The upcoming project spread over 1.11 lakh sq ft of land parcel comprises a tower of G+10 floors with various modern amenities The office project, which began by the end of 2016, was expected to be ready by June 2018. As per the recent information gathered, around 80 percent work on the project is completed, and the completion has now been re-scheduled for March 2019

These vehicles will not confront traffic in Market yard area and they will reach Gangadham chowk without any hurdle, they said

Project Location :

Pune - Maharashtra - India

Estimation

Refer Document

Status :

Announced

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||www.constructionmirror.com||

|| September 2018 ||

CONSTRUCTION MIR ROR

7th Sri Lanka Buildcon International Expo 2018 .... 45

Everest Engineering Equipment Pvt. Ltd. .................. 15

Ashirvad Pipes Pvt. Ltd. ................................................. 71

HMB Engineering ............................................................... 95

Aggcon Equipments International Pvt. Ltd................. 27

Ifat India 2018 .................................................................... 83

Ajax Fiori Engineering (I) Pvt. Ltd. ............................ 11

IMME 2018 ........................................................................... 91

Akona Engineering Pvt. Ltd. .......................................... 19

SEC-RJMT Engineering Pvt. Ltd. ................................... P-05

Ammann India Pvt. Ltd. .................................................. 13

Schwing Stetter (I) Pvt. Ltd. .......................................... BC

Apollo Concrete Solutions .............................................. 17

Solmec Earthmovers Pvt. Ltd. ........................................ 97

Bauma Conexpo India 2018 ............................................ 41

The International Commercial Vehicle Fair ............... 51

Capex 2018 .......................................................................... 87

VE Commercial Vehicles Ltd. ......................................... IBC

Electrotherm India Ltd. ................................................... P-01

Volvo Group India Pvt. Ltd. ..................................... IFC

Escorts Construction Equipment .................................. P-03

World Build India 2019 .................................................... 79

CONSTRUCTION MIR ROR

|| September 2018 ||

||www.constructionmirror.com||

HMB ENGINEERING

(A Quitter Never WINS & A Winner Never QUITS...) Manufacture & Exporter of wire mesh, High Carbon Steel Wire mesh, Crushing Wire Cloth, Spring steel wire Cloth With EDGE Preparation, Crimped wire mesh,Vibrating Screen, Perforated Sheet & Conveyor Belt & Rubber Beading

HMB ENGINEERING I-40, Sector-9, 1st floor, Noida – 201301, Uttar Pradesh Tel: 0120 4333744 Mob:Mr. Amit – 09911399006, 09911702233 & Mr. Sumit – 09810907051 Email: hmbmesh@gmail.com, info@screencloth.co.in Web: www.screencloth.co.in, www.hmbengineering.com, www.wiremeshscreen.co.in

||www.constructionmirror.com||

|| September 2018 ||

CONSTRUCTION MIR ROR

EVENT DIARY 05-06 Sept 2018

19-21 September 2018

Hotel The Ashok, Delhi

The Event started in 2005, has been the preferred Indian platform to deliberate regarding Coal related development for sustainable and competitive energy. It aims to discuss all related issues regarding Coal, Mining and allied industry and present the same to the Ministry of Coal, Niti Aayog, Ministry of Environment and Forests an agenda for accelerating the growth of the sector.

Mumbai

www.capex.co.in

CAPEx is an International trade fair exclusively focused on emerging building materials and technologies. This includes mechanical, electrical, plumbing & fire services (MEPF), green building products etc, which are environment friendly and energy saving.

07-09 Sept 2018

October 15-17 2018

BMICH, Colombo

bauma CHINA is Asia’s largest and most important event for the construction industry. It attracts international buyers–a fact that guarantees a high return on your investment as well as sustainable success. Today, the show is both a platform for product presentations and a grand industry party for communication, cooperation and continued growth.

31st oct, 1-3 Nov-2018

ECO Park, Rajarhat, Kolkata www.immeindia.in

CONSTRUCTION MIR ROR

Delhi

www.bcindia.com

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

November 21-22 2018

21-24 Feb 2019

CTC, Chennai

December 11-14, 2018

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.

14-16 Sep 2018

HO CHI MINH CITY, VIETNAM www.concretevietnam.com

CAI (Construction Architecture & Interior) 2018 is the ideal opportunity for your organisation to access major developers, contractors, and clients procuring work. One can gain access to a competitve consturction boom across India! This is a Build & Design Exhibition of ingenious designs and construction facets.

27-30 November 2018

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.

BIEC Bengaluru

FIMI a body that supports responsible mineral exploration and mining is organizing a three-day event on “Mining, Exploration Convention & Trade Show” from 13th to 15th September 2018 at Bangalore International Exhibition Centre (BIEC), Bangalore

The construction industry in Nepal is seeing unrivalled growth and a blossom of business opportunities, and ConMac 2018 Nepal will be the key platform which will provide the strongest foundation to build business in the country and we are glad that the Infrastructure and the construction landscape in the Region is going through significant transformation heralding a new paradigm for development of Nepal

Shanghai www.bauma-china.com

13-15 Sep 2018

The Biggest Mining Exploration Trade Show”

Kathmandu, Nepal www.conmac.in

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

The exhibition was first conceptualized and organized in Sri Lanka in 2012 to bring all the architects, designers, developers, engineers, contracting companies, material suppliers and technology providers under one roof for displaying and sourcing products and the journey continues year after year.

22-24 November 2018

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.

|| September 2018 ||

Udaipur, Rajasthan www.gmmeindia.com GMME INDIA-2019 is a 4 days event being held from 21st Feb to 24th Feb 2019 at the Khelgaon, Udaipur (Rajasthan). The GMME INDIA is mainly focused on all kind of Mineral machinery, Construction Machinery, Building Material Machines, Industrial Machinery, Construction vehicle and all kind heavy equipments, tyre, bearings, lubricants etc.

||www.constructionmirror.com||

|| September 2018 ||

CONSTRUCTION MIR ROR

Eicher Pro 1000 Series

DRIVE HOME A FULLY BUILT EICHER TIPPER AT AN EASY DOWN PAYMENT. The Eicher Fully Built LMD range now comes with high fuel eﬃciency, long service interval, low maintenance and easy down payment options too. So start earning from day one and save on down payment.

Fully Built Tipper can be used from day 1.

Eicher Pro 1055T

• GVW: 6250 • Tyres: 7.50 x 16-16PR • 100CFT-1unit

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Eicher Pro 1080XPT

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• GVW: 8750 • Tyres: 8.25 x 16-16PR • 150CFT-1.5 Units

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RNI No. DELENG/2013/53728 . English . Monthly. Date of Publication 7th of Every Month