PM December 01, 2014 by ERIL Publications

01] Front Page - JCB India Ad.qxp

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Vol.14 No.15

December 1-15, 2014 `100

Pages 32

02-03] RMD Kwikform Ad + bC India - Igor Palka.qxp

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02-03] RMD Kwikform Ad + bC India - Igor Palka.qxp

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‘Growth of the Indian CE industry is assured’ — Igor Palka, Chief Executive Officer, bC India Expo Pvt. Ltd

Igor, what are your key expectations from the third edition of bC India international trade fair? We have been getting queries from across India, which made us confident about the impact that this show has on the construction and infrastructure sector. Trade shows are traditionally an event where companies show their latest products and innovations and I’m convinced that this year’s bC India will be no difference: there will be novelties, innovative products, shows, technologies etc. For our visitors, it will be a great platform to get first-hand information in a short period of time.

Apart from the change in venue, what other changes can we expect from bC India 2014 compared to the previous two editions in 2011 and 2013? I think that the new venue and its location in the north of India is, indeed, the biggest change. So far no major exhibition for the construction industry has happened in this region. Apart from that we pretty much stick to the concepts we had in 2011 and 2013 as they proved to be very effective for exhibitors and visitors alike. However, I’d like to point out that recently even Nitin Gadkari, Minister of Road Transportation and Highways, accepted the invitation and confirmed to visit and inaugurate this year’s show.

Can you give us some figures pertaining to the exhibition space, the number of exhibitors and visitors, and the kind of equipment and machinery that will be on display at bC India 2014? From the first edition in 2011 to the second one in 2013 we had an increase from 508 to 710 participating companies which was a big success and approximately a growth of 40 per cent. This year we hope to see the same number of exhibitors as in the last event and an increase in terms of visitor response by another 10 to 15 per cent compared to the 28,000 business visitors that we welcomed last year in Mumbai. We also have new players like Amann Apollo, Elgi, Layher and

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From a student on bicycle at Messe München, Germany, the organiser of the Bauma Conexpo show, 10 years ago to CEO of bC India, Igor Palka is overseeing the third edition of the international trade fair for construction and mining equipment and material in Greater Noida near Delhi. He interacted with Prashant C. Trikannad on his expectations of bC India 2014.

04-05] bc India - Volvo PR + Overview.qxp

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CASE STUDY: VOLVO CONSTRUCTION EQUIPMENT

Adding growth momentum to CE rentals

aurav Enterprises was founded in 1985 with a commitment to provide the highest quality products and excellence in service to customers. The goal was to build lasting customer relationships and ultimately, to be the equipment rental company of choice in every market they served.

“As an equipment rental organisation, our business thrives on multiple factors such as maximum fleet utilisation and uptime, efficient customer service, strategic rental terms, and cost-effective solutions to clients. It is a large canvas to work on, and unless you have an efficient fleet of

machines, it is difficult to survive, let alone succeed. We were looking for a construction equipment company that understood these dynamics,” Rishi Gupta, Managing Director, Gaurav Enterprises, said. Knowing when to switch gears, as someone said, growth is life and no one believes this

PHOTOS: WWW.VOLVOCE.COM

adage more than Gaurav Enterprises. During the last decade, they have focused on building their fleet of rental equipment and believe that by adopting the best of technology to provide the right solutions for their clients, growth is assured. They found an ideal partner in Volvo CE with its advanced fleet of construction equipment machines. With the right equipment and machinery, safety training, genuine spares and well trained service personnel, Volvo CE provided the flexibility and muscle power that Gaurav Enterprises needed to improve customer service through flexible rentals. At Volvo, we understand that no one is more important than the customer and nothing pays as much as true customer delight. A lot has changed for Gaurav Enterprises since the company starting purchasing and renting Volvo construction equipment because of the superior technology Volvo machines provide. Today, we own a fleet of 15 Volvo machines comprising of EC290 & EC210 excavators, SD110 compactors and G930 graders, which have proved to be a great investment and has helped the management in scaling up their operations effectively. “Volvo CE has enabled effective control over costs and operational parameters like equipment availability, operational expenses, equipment run time, etc., which has in turn led to improved equipment utilisation and profitability. As it has become possible to perform real-time analysis of key parameters, the management is never short of adequate information for strategic decision making,” Rishi Gupta averred. With an aim to diversify into large-scale infrastructure projects, Gaurav Enterprises is confident of moving forward because they know that when they buy a Volvo, they get one of the most reliable machines on the market. They come with ready help on all the products, services and knowledge customers need to optimise their machine’s profitability and productivity along with a global dealer and service network, well-trained service personnel and the right parts. Source: Volvo CE

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Bigger, better, brighter PRASHANT C. TRIKANNAD

new reform-minded government in New Delhi, a visible uptrend in the economy, the proposed investment of over $1 trillion in infrastructure development, and Prime Minister Narendra Modi’s hard selling of India to foreign investors and governments is expected to have a positive impact on the third edition of the Bauma Conexpo Show— bC India. The international trade fair for construction machinery, building material machines, mining machines and construction vehicles will be held in Greater Noida, near Delhi, from December 15 to 18. The previous two events in 2011 and 2013 were held in Mumbai. “Looking at the current fiveyear plan and the huge planned infrastructure investment, I am convinced that (bC India) will attract many international clients. Also, with the new government at the Centre and its focus on infrastructure development, trade shows like bC India will be crucial,” Igor Palka, Chief Executive Officer, bC India Expo Pvt. Ltd, told this paper (see interview on page 3). In spite of the recent economic slowdown, India continued to be a very dynamic market for the global construction equipment industry, Messe München International, organisers of the trade show, felt. In 2016, MMI expects around 80,000 units to be sold in India and the bC India expo is meant to lay the groundwork for business opportunities for manufacturers and suppliers of all kinds of construction equipment. Various forecasts suggest that the Indian construction and mining equipment market is in for good times in coming years. One survey indicates that the sector will grow at a CAGR of 18.52 per cent over the period 2012-2016 while another expects it to grow at a CAGR of 9.6 per cent to 166,876 units in FY2018. Fuelling the growth will be a large number of new and ongoing projects in the government sector like national highway development, metro rail and monorail, integrated transport systems, dedicated industrial and freight corridors, smart cities, and port and airport expansion, among others. The $90-billion Delhi-Mumbai Industrial Corridor alone envisages the development of eight mega industrial cities of about 200-500 sq. km each, a high-

PHOTO: ANTHONY AZAVEDO

speed freight line, ports, airports, power and water projects. It opens up all kinds of opportunities for construction equipment manufacturers. “Though the growth rate has stabilised recently, the initiative proposed by the new government will certainly rejuvenate

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An aerial view of the second edition of bC India 2013 held in Mumbai.

06-07] bC India - JCB India + DNS Automotive AD.qxp

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JCB goes to Jaipur Vipin Sondhi, MD & CEO, JCB India Ltd PM NEWS BUREAU

ajasthan Chief Minister Vasundhara Raje and JCB Group Chairman Lord Bamford, last month, inaugurated two new, world-class manufacturing facilities in Jaipur. These new facilities are positioned to enable JCB to keep pace with future economic growth and to further strengthen its position as a market leader in the construction equipment Industry, a company release said. Speaking about the `500crore investment in Jaipur, Lord Bamford said: “The inauguration of the two Jaipur factories is a significant milestone for JCB, which has been making in India for 35 years and has grown to become one of India’s most respected manufacturers. From small beginnings in 1979,

JCB’s two new construction equipment plants in Jaipur. I could never have imagined that our family business would employ 5,000 people in India making JCBs, with thousands more employed elsewhere in the supply chain. The new factories in Jaipur mean our contribution to the Indian economy will grow and I am grateful to the Rajasthan Government for their support in helping JCB make our investment ambitions a reality.” “JCB has a long history of investing in long-term global growth opportunities. Today’s inauguration of two new factories in Jaipur is the beginning of another phase in JCB’s growth plans for India. It is only a matter of time before the current shortterm market concerns give way to the long-term growth in demand for construction equipment that will follow as the wider Indian economy picks up,”

Graeme Macdonald, CEO, JCB Group CEO, noted. Located on 115 acres of land 35 km from Jaipur city, the site is home to JCB’s single largest manufacturing footprint in India. When operating at full capacity, it will employ around 1,000 people. Component manufacturing is already underway at one of the plants and next year production will begin of telescopic handlers and skid steer loaders for the Indian market. The facility will also provide additional backhoe loader capacity from 2015. The new factories have been built in record time and incorporate world-class ecological developments, including water management, rainwater harvesting, solar power and daylight optimisation. The Jaipur site has also been attractively landscaped to JCB’s very exact-

PHOTOS: JCB INDIA

Rajasthan Chief Minister Vasundhara Raje and JCB Group Chairman Lord Bamford at the opening of JCB's new plants in Jaipur. ing global standards. Vipin Sondhi, Managing Director & CEO, JCB India Ltd, said: “JCB’s new facilities in the historical city of Jaipur are world-class in every respect, with zero effect on the environment both in terms of construction and operation. JCB India will be making products in Jaipur to the same world-class standard as the machines we make in our existing three factories in Ballabgarh and Pune.” JCB India’s three manufacturing facilities include the world’s

largest backhoe loader factory located in Ballabgarh, Haryana, near New Delhi, and two factories in Pune, Maharashtra, manufacturing fabrications and components (mainly for export) as well as state-of-the-art heavy equipment, including large excavators, wheeled loading shovels and compaction equipment. JCB is the market leader for construction equipment in India and operates the most extensive distribution network with 60 dealers and 600 outlets across India.

Bigger, better, brighter PAGE 5 the Indian economy to greater heights,” Sushanta Kumar Basu, President, Builders’ Association of India, said. In terms of the demand for construction equipment, backhoe loaders, bulldozers and mobile cranes are likely to give way to crawler-excavators whose market share is expected to increase in coming years. The mood among foreign investors is decidedly upbeat. As Johann Sailer, Chairman, Association for Construction Equipment and Building Material Machines in the German Engineering Federation (VDMA), noted: “This is the first time since 1991 that a party has won

an absolute majority, so the prospects for stability are quite promising. For now, that is having a positive effect on construction-equipment and buildingmachine manufacturers who do business in India. We are hoping that India will recover now. Prime Minister Narendra Modi is considered business friendly, and expectations are high.” Given these positive developments and the shift to a much bigger venue, bC India 2014 is expected to do far better than its previous two editions in 2013 and 2011, especially in terms of more exhibitors and visitor footfalls and the potential for lucrative deals between buyers and sellers of construction equipment.

06-07] bC India - JCB India + DNS Automotive AD.qxp

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08-09] Voestalpine Ad + bC India - Manitowoc Cranes.qxp

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08-09] Voestalpine Ad + bC India - Manitowoc Cranes.qxp

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WWW.MANITOWOCCRANES.COM

PM NEWS BUREAU

Manitowoc to unveil new

anitowoc Company, Inc., a multiindustry capital goods manufacturer, will introduce two new topless tower cranes from its Potain brand, the company has said. Live demonstrations of each crane will be available on request at the company’s outdoor booth at the bC India trade show. The two new Potain tower cranes, MCT 205 & MCT 85, are topless models, which include the latest design for better onsite placement, allowing contractors to situate more cranes on projects, to speed construction. Raman Joshi, Managing Director, Manitowoc Cranes India, said that the new cranes would be a major highlight at bC India. “The new topless Potain cranes are easy to erect, highly efficient and very reliable, the three major requirements of crane users across the country,” Joshi said. “The two new Potain tower cranes, together with other displays on our booth, will show visitors at bC India how we are true leaders in lifting.”

tower cranes

MCT 205

Potain MCT 205

The MCT 205 tower crane has a 10-tonne maximum capacity and can lift 1.75 tonnes at its maximum jib end of 65 m. With a focus on fast erection, the complete upperworks for the MCT 205 can be assem-

bled in four lifts. The heaviest group of components is just 7.9 tonnes and the full 65 m jib can be placed in a single lift. Attention has been paid to transportation too, with

India to strengthen capital goods sector PM NEWS BUREAU

he Ministry of Heavy Industries and Public Enterprises has recently notified a scheme called ‘Enhancement of Competitiveness in the Indian Capital Goods Sector’ which aims to make the domestic capital goods industry globally competitive by strengthening technology development, providing common manufacturing infrastructure and extending financial assistance for technology acquisition. The capital goods industry scheme envisages government budgetary support of `581.22 crore and industry contribution of `349.74 crore. The scheme is likely to be implemented in five years. The scheme has components consisting of infrastructure intervention as well as financial intervention to boost competitiveness of the domestic capital goods industry.

three jib sections able to fit inside a standard container.

MCT 85 The second model in the Potain line-up of new top-

less cranes is the MCT 85. Smaller than the MCT 205, it has a 5-tonne maximum capacity and an ability to lift 1.1 tonnes at its jib end of 52 m. This practical unit is efficiently

‘We look forward to some prospective developments’ n an election year there is always uncertainty. Now that uncertainty is over and we can look ahead to some prospective developments that we hope will have a positive effect on our industry. With Mr. Modi's strong background in economic development, infrastructure, and creating a business-friendly atmosphere, we hope he will be able to drive through the necessary changes to push the Indian economy to the next level. — Raman Joshi, Managing Director, Manitowoc Cranes India

easy to transport, needing just two trucks for the entire top portion of the crane. Again, on-site assembly is simplified thanks to the pre-assembly work done at the Potain factory in Pune before the crane is delivered to the customer. For example, the counterjib and towerhead are assembled as a single component and can be lifted as such. Connecting the jib is quick and easy, facilitated through the use of pin-connectors. This means the entire upperworks of the MCT 85 is connected in just two sections. Like the MCT 205, the MCT 85 can be operated as an internal climbing crane, sitting inside the building it is constructing. Mounted on 1.2 m mast

sections, the crane offers a maximum free-standing height of 33.2 m when operating internally. Manitowoc Company, Inc. has nearly 100 manufacturing, distribution, service, and/or office facilities in 26 countries. It is one of the world’s largest providers of lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes and boom trucks. Manitowoc is also one of the world’s leading innovators and manufacturers of commercial foodservice equipment serving the ice, beverage, refrigeration, food prep, and cooking needs of restaurants, convenience stores, hotels, healthcare, and institutional applications.

10-11] bC India - Aquarius + Barco AD.qxp

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PHOTOS: AQUARIUS ENGINEERS PVT. LTD

Aquarius batching plants working at Amrapali precast factory in Noida, the largest plants in India for this application.

Aquarius footprint in precast concrete I PM NEWS BUREAU

n recent past, India has already witnessed a boom in housing sector. With a population of more than a billion, the demand for housing projects is ever increasing and the same is to be achieved in an accelerated timeframe. The Indian construction industry has matured during the last couple of decades, to a certain stage, and is on the verge of forging its way forward with use of the worldwide established, advanced technology of Precast Concrete products. Within next few years the popularity of this technology will go up due to its inherent advantages of quick turnaround, cost savings and economy of production. This technology also offers limitless possibilities to the architectural world. Concrete is the heart and soul of precast elements. Ironically, it is the most taken-for-granted thing in past construction practices. Usage of precast elements is going to demand a paradigm shift in the way the concrete is produced and handled. The pre-

cast application concrete needs to be produced with a high precision and superior quality in a much-controlled environment, especially parameters like moisture in the concrete to be controlled with very high accuracy. Aquarius has an established line of concrete batching and mixing plants, with a product range using mixer size varying from 0.35 cu.m/batch to 3.0

cu.m/batch. The same is well supported by a nationwide spares and service network. With inbuilt expertise in concrete batch plants, the company has fast grown into the field of special application and customised solutions to cater to the requirements of the hollow core precast, block making and pipe making applications. Till date 11 plants are working successfully across India at dedicated precast factory setups and have got wide acceptance in the construction sphere. Primarily, the company delivers two special application product ranges in batching plants viz.

‘Precast Range plants’ (for hollow core applications) and ‘Drycast Range plants’ (for block making and similar application). Aquarius can customise and deliver these plants equipped with the following key features: Planetary or twin shaft type mixers – for dry or wet concrete needs Specialised software – designed for the abovementioned application needs Moisture probes – for mixer, sand etc. Customised plant design – as per client application needs High precision water dosing mechanism Another key aspect of Aquarius precast application batch plant is the ‘capability to integrate with varying scale of automation,’ when it comes to handling of concrete in tandem

with the casting machinery. The plant software has the inbuilt capability to closely monitor and react as per the instantaneous demand of concrete. The company delivers customised software solutions, which can work flawlessly with wide nature of precasting equipment. Other important product lines i.e. concrete pump and placer boom combination caters to the wet concrete handling needs of the precast factories, especially for placing concrete in column and wall molds. Presently, the Indian construction sector is poised for further growth. The simple fact that India requires quality infrastrcture will be a long-term growth driver for this sector. For completion and delivery of such worldclass infrastrcture and housing projects, adopting the new methodology of precast will be an eventuality. Aquarius aims to be a complete solution provider to the precasters for their quality concrete production needs through worldclass technology batching plant solutions.

10-11] bC India - Aquarius + Barco AD.qxp

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‘Swachch Bharat will increase demand for our machines’ — Rohit J. Shah, Director, Pakona Engineers (I) Pvt. Ltd

Pakona Engineers (I) Pvt. Ltd is a manufacturer of vertical cast pipe machines. Rohit J. Shah, in an email interaction with Sandeep Menezes, talks about the prospects for the pipe and pipeline industry in the wake of new schemes announced by the government. He expects demand to come from drainage and water supply systems and other industrial sectors.

and cost effective.

Last year, you mentioned that the industry would witness higher growth levels after the elections. How optimistic are you growth now? We are definitely optimistic about growth in our industry because of new projects launched by Prime Minister Modi, such as Swachch Bharat Abhiyan, wherein he has stated that by end of this decade every household should have a toilet. This means increase in pipes and pipeline work for drainage and water supply system. So, definitely, demand for our machines will also increase.

Going forward, what are main growth drivers for the industry? The main demand drivers will be improvement in drainage and water supply system along with growth in industrial sectors. Pakona’s first machine had almost 60 per cent imported components but today

You said last year that Pakona would witness minimum growth of 50 per cent. Do you still feel the same way? Pakona has witnessed growth above 50 per cent this year and hopefully manifold next year.

What is the status of the `5-crore brownfield capacity expansion at your Vadodara site in Gujarat? We have added a 10,000 sq.ft workshop building with high tech equipments to manufacture components. The project was completed this year.

95 per cent components are locally manufactured. Localisation has benefited us, as now we can save a lot of time in procuring these components which ensures quick service to our customers.

What are your thoughts on the ‘Make in India’ policy? ‘Make in India’ will not only increase industrialisation in India, but also localisation and generate employment opportunities. It will definitely be time

Does Pakona have plans to launch any new products? Last year, we promoted Manhole which was displayed at Excon. This year we are introducing HDPE lining pipes and Jacking pipes

Concrete additive based on Pozzolanic Alumosilicate entrilit NC (nano-crystallizer) is a pozzolanic concrete additive based on amorphous alumosilicate. It concerns a synthetically manufactured material, not an industrial byproduct. Apart from high uniformity, long-term availability is also ensured. New generation materials like Centrilit NC based on special nano-crystallizers have been recently developed. These new materials improve the properties that are crucial for the durability of high-performance concrete. In addition to reducing chloride migration, an exceptional chemical and acid resistance of the high-performance concrete can be achieved with Centrilit NC. The concrete structure is simultaneously reinforced right down to nano scale, density is improved and compressive and flexural strength as well as abrasion resistance of the high-performance concrete is increased. The unique properties of Centrilit NC can be utilised in all areas of ready-made and precast concrete production that need high durability e.g.: precast concrete, HPC in the energy, wastewater and chemical industry. Due to high homogeneity and reduced tackiness compared with microsilicabased concrete, workability is Centrilit NC: Available forms improved significantly. In many instances this even enables the production of high-performance concrete that can be pumped. A distinct improvement of the building structure’s aesthetics is gained due to the fair appearance of the concrete surface. Centrilit NC performs over some disadvantages of Other Superfine Pozzolans: Graded for dispersion in concrete, graded particle size, optimises mixing time within concrete, good dispersion reduces unreacted material in the mix and increases passivation by C-S-H gel on aggregate surface, and reduces risk of alkali silica reaction by agglomeration of aluminosilicate particles. MC-Bauchemie (India) Pvt. Ltd manufactures this product along with other construction chemicals in technical and financial collaboration with MC-Bauchemie, Germany.

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Ensure long-term demand for construction equipment There is a strong intent from the government towards infrastructure development since the beginning and to substantiate it, they have introduced some notable reforms, projects like Swachh Bharat, Clean Ganga, and Make in India. But to achieve these targets, the government needs to ensure that all the bottlenecks are removed and the stalled projects are cleared without further delay, writes Amit Gossain, Executive Vice President - Sales, Marketing and Business Development, JCB India. WWW.JCBINDIA.COM

ith the government's renewed impetus on infrastructure, the construction equipment industry is now poised for tremendous growth. The Modiled government has instilled a positive outlook in the country by announcing new infrastructure projects and is allowing huge investments in infrastructure industry. However, I believe, with the allocation of `37, 800 crore to National Highways Authority of

India for roads and `14, 000 crore for rural roads, and the announcement to invest `2 lakh crore in infrastructure this year by Minister for Road Transport and Highways Nitin Gadkari, there will be a huge demand of construction equipment in the coming years. The new government is also promoting domestic and foreign investment in a big way. Recent announcements of US companies planning to invest $42 billion in India over the next two-

Loadall 530-110 is a telehandler. three years and China planning to invest $20 billion in India primarily in building the railway infrastructure will give a huge boost to the infrastructure industry.

We have seen a strong intent from the government towards infrastructural development since the beginning and to substantiate it, they have introduced some notable reforms, projects like Swachh Bharat, Clean Ganga, and Make in India. But to achieve these targets, the government needs to ensure that all the bottlenecks are removed and the stalled projects are cleared without any further delay. The need of the hour is to

identify projects of national importance and ensure they are implemented expeditiously. We need to have a mechanism in place which will streamline the on-ground execution, thus ensuring a long-term demand for all construction equipment. JCB is a pioneer in the industry and in the past few years, we have launched machines which are known for its performance, productivity, its cutting-edge

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Growth of commercial vehicle lubricant market in India The per capita lubricant consumption in India is quite low compared to developed countries. However, a comparison with other developing countries like China and Indonesia reveals that there is a significant potential for growth in lubricant consumption in India. Akhil Jha, Vice President - Technical, Shell India Markets Pvt. Ltd, analyses the commercial lubricant market vis-à-vis the medium and heavy commercial vehicle industry.

he global lubricants market is rapidly changing. Ranking third behind the United States and China, India is one of the most important markets in the world. With GDP of $1,825 billion in 2012, India is the third-largest economy in

Asia, after China and Japan. Historically, India has been one of the fastest growing major economies. The per capita lubricant consumption in India is quite low compared to developed countries. However, even a comparison with other developing

countries like China and Indonesia reveals that there is a significant potential for growth in lubricant consumption in India. The automotive industry in India is one of the largest automotive markets in the world. It had previously been one of the

PHOTOS: SHELL INDIA MARKETSPVT. LTD

The company’s plant at Taloja in Maharashtra. fastest growing markets globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011. Automobile production in India has experienced a strong growth of 14 per cent from 20072008 to 2012-2013. The market for commercial automotive lubricants declined in 2013 due to the retarded economic growth as well as its impact on sectors as logistics, construction, mining, and agriculture. In India, more than half of the commercial automotive lubricant market is supplied by oil PSUs. Commercial vehicle OEMs are currently looking at lubricants to provide reduction in Total Cost of Operation (TCO) through extension of oil drain interval and fuel economy benefits in the area of engine, gear box and rear axle oil. 2015 onwards commercial vehicles market in India is expected to move in this direction. Carbon dioxide emissions by vehicles, after the implementation of the new norms, are projected to come down from 142 gm per km in 2010-11 to 129.8 gm by 2021-22 and 113 gm 2022 onwards. This reduction of CO2 means guideline for fuel economy development from both hardware and lubricant side. In the first phase, the government expects the passenger cars to consume 5.49 litres of fuel on average to cover 100 km by 2016, thus increasing the average mileage to 18.2 km per litre from

16.5 km in 2010-11, when the norms were initially proposed. In the second phase, the consumption of fuel will come down to 4.77 litres for 100 km, increasing the mileage to 21 km per litre. The same as per our understanding will be also considered for commercial vehicles and two-wheeler segment. This means that in coming one-two years the lubricants are not only required to ensure durability with extended drain but also improving fuel economy of vehicle which cannot be obtained by traditional lubricants but has to be met by coengineered advance lubricants, especially designed for chosen hardware. Different models will require different type of advance technology lubricants as stress factor will vary from model to model but all models have to meet the same set of guidelines as set by government.

Main demand drivers The market and future trends as reported by Kline & Company, Inc. in the ‘Opportunities in Lubricants India Market Analysis’ report are: Total commercial lubricant market: In 2013, the on-highway segment consumes an estimated 460.2 kilotonnes or 61 per cent of the total commercial lubricant market, while the off-highway segment accounts for 299.8 kilotonnes or 39 per cent of the total. Engine oil is the highestselling product at about 60 per cent of total commercial

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‘Safety norms need to be strengthened’ — P. Ravishankar, Chief Executive Officer, Ashok Leyland John Deere

What are some of Leyland Deere’s key achievements since launching its first product, the 435 Backhoe Loader, in November 2011? Leyland Deere had launched 435 Backhoe Loader in the last quarter of 2011-12 with a major focus on large customers. We have sold close to 1,300 machines till date. In the last quarter of 2013-14 we launched 435E Backhoe Loader which is targeted for first-time buyers or first-time users. We intend to grow our presence in the backhoe market with these products for now.

The backhoe loader segment in India is very com-

petitive with many global players vying for a market share. How does Leyland Deere compare? In terms of mileage we are better than competition. We save half litre per hour of operation which translates into savings of `60,000 per year only on fuel. In terms of uptime we are at 90 per cent level due to durable parts. This level of uptime of our products is highest in the industry which translates into quicker return on investment. Our revolutionary service offering CARE–I, which stands for lowest ‘Cost’ of operation delivering highest ‘Availability’ through most ‘Reliable’ products with

‘Easy’ to do business with Intelligent Product and Processes, reduces MTTR (Mean Time To Repair) to less than five hours. This ensures 20-25 per cent savings to the customers.

What are the growth prospects for the Indian construction equipment market? The market for construction equipment has been one of the most severely impacted in the past two years. The new government, with its focus on infrastructure, will hopefully help restore some growth.

What do you think will be the main growth drivers?

National Highway expansion programme of four lane to six lane projects by NHAI, state highways development programmes and rural roads development programmes typically increase the demand for backhoe loaders. Agriculture land development and associated irrigation projects also provide momentum for growth in backhoe loader segment. We hope to see several projects start work in these areas, with a stable government in place. Land development, building construction and industrial development projects will also add to backhoe loader utilisation. Blue metal quarries to support road construction, as well as reopening of the mining industry, will support the growth of demand for backhoe loaders, as the last mile material handling is economically managed with a fleet of backhoe loaders. Based on the various initiatives, we estimate that the backhoe loader market will grow at a rate of about 5 per cent to 10 per cent CAGR over the next few years.

Ashok Leyland John Deere Construction Equipment Company Pvt. Ltd is a joint venture between Ashok Leyland, the flagship of Hinduja Group, and John Deere. It was formed in 2008 and the first commercial product, the 435 Backhoe Loader, was launched in November 2011, signalling the partnership’s foray into the Indian construction equipment space. P. Ravishankar, CEO, Ashok Leyland John Deere, talks about the construction equipment sector in general and the backhoe loader market in particular. Interview by Sandeep Menezes.

What is the size of the backhoe loader segment in India? The size of the backhoe loader segment is expected to be around 22,000 to 24,000 for the year 2014-15. Based on the various infrastructure development programmes and mining industry, the backhoe loader segment size could touch around 30,000 in 2016-17.

operation of the backhoe loaders, product features and benefits, scheduled maintenance and daily checks in order to ensure that the operator and customers are aware of the product. As and when required, operators are also trained on the scheduled intervals and call centre activities to report product issues and take quick and appropriate actions to improve the uptime.

Interest rates have started softening though they remain high and most equipment sales happen through financing rather than self-purchase. The impact of softening of interest rates has not yet been felt in the market. However, this could support the first-time buyers and first-time users segment with more and more operators becoming owners.

There is a shortage of equipment operators and technicians. How does your company handle this critical issue? Leyland Deere already assists in training the new operators. Operators are trained on the

India is not governed by stringent equipment safety norms like those in the EU and USA. Going forward, do you feel that equipment safety norms need to be strengthened in India? Yes, equipment safety norms should be strengthened in India with features like ROPS, FOPS Cab etc., on which regulatory bodies like ICEMA and ARAI work to improve safety norms. Leyland Deere is the only backhoe loader manufacturer in the country with ROPS (Roll Over Protective Structure) and FOPS (Falling Object Protection System) cabin. This provides operators the confidence to operate the machine and will enhance productivity. PHOTOS: ASHOK LEYLAND JOHN DEERE

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‘Safety norms need to be strengthened’ — P. Ravishankar, Chief Executive Officer, Ashok Leyland John Deere

The backhoe loader segment in India is very com-

‘Easy’ to do business with Intelligent Product and Processes, reduces MTTR (Mean Time To Repair) to less than five hours. This ensures 20-25 per cent savings to the customers.

What do you think will be the main growth drivers?

There is a shortage of equipment operators and technicians. How does your company handle this critical issue? Leyland Deere already assists in training the new operators. Operators are trained on the

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A new breed of boom pumps PM NEWS BUREAU

PHOTO: SCHWING STETTER INDIA

chwing Stetter concrete pumps set the standard for modern concrete conveying. With worldwide experience and up-to-date technology Schwing has designed highly efficient and low-wearing pumps ideal for long-term use under the most severe conditions. The innovative concrete boom pumps came into being in order to make the tedious process of carrying concrete for heights easy. The boom pumps are a different breed of concrete pumps unlike other stationary and line pumps where the pipelines need to be laid well before pumping, the boom pump does not require this exercise. It has an assembly of pipelines with R, Z or R-Z folds which enable its 360 degree rotating capacity. Schwing Stetter India manufactures two types of boom pumps: the Truck Mounted and the Separate Placing Boom

Pumps. Each of these has their own applications. The separate placing booms are usually opted for high raise building projects, whereas the boom pumps can be

used for all the applications and also have a reputation of providing faster completion. The most economical construction machine is the one that

can be used continuously. Therefore, it should be rugged, reliable and above all suitable for universal applications. Schwing Stetter has designed its Boom Placer in a way that makes it superior to all comparable placing booms in all working ranges. Separate placing booms, which are used in combination with stationary concrete pumps, have established themselves as the ideal concrete distribution system in high-rise construction and other largescale structures. The benefits of Schwing Stetter separate placing booms are

many, from increased concrete placement speed to having a tower crane free to handle other necessary lifting and reduced labour requirements. Schwing Stetter India manufactures separate placing booms ranging the radius from 25 m to 35 m. These Separate Placing Booms are equipped with floor climbing mechanism to meet the increasing demand in high-rise construction. At construction sites around the world, truck-mounted concrete pumps are widely used. On account of their high utilisation, these machines are an integral part of the vehicle fleets of uncounted pump services. These truck-mounted concrete pumps also set new standards in occupational safety. Schwing Stetter India manufactures a range of models in truck-mounted boom pumps. All the pumps manufactured by Schwing Stetter are remote controlled and are extremely user friendly. These pumps have very low operative maintenance cost and are easy to operate. There are multiple greasing points in every pump to allow smooth operation of the pump. The hydraulic circuit offered by Schwing Stetter is an open circuit as compared to the closed circuit offered by others. The open circuit curbs the hydraulic oil temperature from rising and suitable for dusty environments, hence cuts the costly maintenance.

Kobelco India shifts into recovery mode PM NEWS BUREAU he crawler crane market in Japan showed growth in the first half of the current year with demand increasing 24 per cent from the same period last year. This is attributed to the Tokyo Olympics and the Japanese government’s Fundamental Plan for National Resilience. In overseas markets, however, demand in Europe, the Middle East, and India, which suffered from sluggish growth, has shifted into recovery mode in addition to growth in North America and East Asia, a company said in a news release. Further, overall demand has continued to remain strong in Southeast Asia, though demand has varied by country. Growth is still stagnant in China, where recovery had previously been WWW.KOBELCO -CRANES.COM expected. As a result, aggregate overseas demand increased 12 per cent over the same period last year. Specifically, in India, Kobelco Cranes said that it had steadily enhanced the sales service system and significantly increased unit sales compared with the previous period, despite the fact that the market was still at a low level of recovery with the change in the administration. In China, conditions remain severe due to the delay in market recovery on top of investment control by a state-owned enterprise that is one of Kobelco Cranes’ major customers. “Although Kobelco Cranes’ subsidiaries in China and India continued to face challenging conditions, the company will put effort into building a structure capable of meeting recovering demand by continuing with cost reduction through local procurement, enhancing the sales service system, and expanding the product lineup,” Kobelco Cranes said.

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‘I want to see action in Indian infra sector’ — Arul Raja, Managing Director – India, RMD Kwikform

What are your expectations from bC India? We are expecting top 10 infrastructure companies and residential contractors and companies to visit us and that generates enquiry and revenue.

What type of products and solutions will you be offering at this event? We have products for the temporary support of bridges, tunnels, airports, shopping malls, metro rail, dams, power plants and building construction.

Can you briefly tell us about RMD Kwikform and its role in the construction industry? We supply and provide engineering solutions to the construction industry. We sell and hire out scaffolding.

What is your experience with regard to customised formwork, shoring and access planning services in India? We tend to get a majority of standard system formwork and therefore we don’t focus enough on customised formwork.

Tell us about the recent projects undertaken by RWM Kwikform. Camellias of DLF in Delhi for contractor Leighton India, and Godrej Towers in Mumbai and Delhi for contractor Capacite Infra Ltd.

Which projects is RMD currently executing? Kalpaturu in Pune, Bishop Gate in Mumbai, Syntel in Chennai, Chennai Metro in Chennai, and so on

Is India on par with the rest of the world in formwork and shoring technology? Not yet but we are progressing very well. The system formwork is well adopted by the top contractors.

Are you satisfied with the initiatives taken by the new government to boost industrial and infrastructure sectors? Very much and I would like to see the action.

Do you have any investment plans? Yes, we work on a three-year plan which includes investment in people and equipment.

RMD Kwikform is a global construction specialist in formwork, falsework, shoring, propping, and temporary works solutions for infrastructure, commercial property, public sector, and retail and sports development. Arul Raja, in an email interaction, discusses his company’s plans for bC India 2014 with Prashant C. Trikannad.

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LPS: growing fast in fasteners

S.K. JAIN

ounded in 1972, LPS is a leading manufacturer and supplier of high tensile fasteners such as bolts, screws, nuts and similar parts for automobile and other industrial sectors. With three state-of-the-art plants supported by ancillary, team work of professionals, LPS has a capacity to produce over 12,000 mt of engineered fasteners. LPS offers over 8,000 kinds of fasteners with diameter ranging from 3 mm to 42 mm and in grades of 8.8, 10.9, 12.9, 45H, R, S, T, V, grade 5, grade 8 etc. High-grade alloy steel goes into LPS high tensile precision fasteners for fatigue resistance and closer tolerance levels. Besides cold forging, thread rolling, heat treating and extruding, LPS has capabilities of sophisticated physical, mechanical and chemical testing.

Automatic microprocessor, controlled plating and phosphating continuous atmosphere controlled furnaces, upgraded cold forging technology and modern drive systems with CAD/CAM facilities are all under its roof. All manufacturing facilities at LPS are supported with an online quality assurance system employing statistical process control. Each fastener lot is marked with code number for traceability of its origin to the steel mill. LPS fasteners are in total compliance with various interna-

tional standards such as accredited laboratory. LPS enjoys the confidence of the global market. LPS has grown steadily over the past 26 years on the strength of its in-house technological developments and innovations. The company assures its customers of undivided attention, for design and application problems, on behalf of its engineers and technical problem solvers. Moreover, LPS offers various drive systems, which maintain integrity through repeated removal and installation such as

torx, 12-point, socket cap, button, flat and low heads and hex sockets. In addition, it offers traceability. Each special fastener has its own laboratory number, so as to ease the tracing back to steel mill.

Salient features

12-point configuration for faster assembly production rate Specialised secondary operations Centre-less grinding equipment is utilised for production of close tolerance and smooth surface finish

Industrial paints for CE sector A BUSINESS CORRESPONDENT rand Polycoats is into manufacturing high performance industrial paints based on polyurethane, epoxy, elastomeric polyurethane, polyurea coatings, special polymer-based single pack coatings, heat resistant and silencer HR coatings, acid resistant coatings, ethyl zinc silicate and unsaturated polyester putty. The company is a leading supplier to the construction equipment sector, power sector, pumps, motors and valves, machines, safes and lockers, agriculture sector, railways, and automobile and its ancillaries and process industries. It also provides tailor-made paint solutions to customers. The company's R&D facilities are approved by the Department of Science and Industrial Research, Government of India. Grand Polycoats, the pioneer in polyurethane coating in India, was founded with a clear vision of “Perfection in Protection” in the 1980s.

Bharat Chokshi, CMD, Grand Polycoats “Every industry has a different problem and hence the need of protection is also different. Grand Polycoats understands this and provides customised solutions for each client. Right from understanding the requirement, to developing the protective coat, to rigorous testing, to supervision of application and post follow ups - GP works in tandem with

the client's team,” Bharat Chokshi, Chairman and Managing Director, said. He continued, “The core strength of GP is a focused team of researchers who conceive, design and develop innovative products, which enables us to stay ahead of the global competition. Our R&D ensures that the products meet clearly identified market requirements. It is this attention to customer satisfaction that has allowed us to register a customer retention ratio of over 90 per cent.” In conclusion, Chokshi said, “I am proud to say that our coatings cover assets not only on Planet Earth but also assets that are currently in space. Be it a coating for protecting a tunnel in the Himalayan range or a coating for petroleum tanks or a coating for the second largest telescope in the world. GP has always answered the call of the nation and provided a solution appropriate for these needs.”

PPAP available on request PPM level of quality Process designed through FMEA techniques Process control through APQP and SPC Precision mechanical measurements through MSA/Gauge R&R LPS has more than 15 years of experience in design and engineering assistance with capabilities that include in-house tooling, vast investments in R&D, modern production equipment and quality control facilities. The company's commitment to manufacture high quality products is further enhanced by the use of automatic controlled heat treatment. Lakshmi Precision Screws Ltd is a leading manufacturer of high tensile fasteners. With stateof-the-art plants and quality testing facilities, it holds a large share in the domestic market and is also one of the leading exporters with an average 35 per cent sales coming from exports to countries such as USA, Germany, UK, Sweden, Switzerland, Japan, South Korea, Australia, and Gulf countries. It hopes to reach $106 million turnover by end of next financial year. With an established metallurgical laboratory, which is A2LA and NABL accredited and

supported by state-of-theart metallurgical equipment for testing and checking all type of fasteners, it is an ISO, TS and OSHAS certified company. Powered by its five plants in Rohtak and Gurgaon, Haryana, it is supplying more than 10,000 varieties of fasteners in India to almost all the consumers directly as well as through its dealer network. Its products find application in many segments of automotive industry, machine tool industry, refrigeration and air conditioning, pumps and compressor, earthmoving equipment, transmission, textile machinery, diesel engine and agricultural machinery industry. The company also has a strong presence in government sectors such as thermal power plants, hydel projects, railways, defence, aeronautical industry, port trusts and steel plants. Standard products include hex head bolts and screws, hex nuts, flange bolts/screws, socket head cap screws (allen bolts), socket button head cap screws, socket set screws, hexagonal wrenches (allen keys). Besides, LPS also manufactures special fasteners. S.K. Jain is Director (S of Lakshmi Precision Screws Ltd)

Ensure long-term demand for construction equipment PAGE 13 technology and versatility. JCB machines always set new benchmarks when it comes to technologically advanced features and will continue to do so. JCB currently offers the widest range of construction equipment in the industry with 25 variants in seven product lines. All JCB products are manufactured on the company philosophy of 'One Global Quality'. We recently introduced 12 next generation products in which we introduced two new best-inclass product lines in the material handling segment—Telehandlers known as Loadalls (Loadall 7m and Loadall 11m) and Skid Steers Loaders known as Robots (SSL 135 and SSL 155). Both the products will revolutionise the material handling process in India. We also introduced an

advanced telematics technology known as 'JCB Livelink'. JCB Livelink is a feature which has the potential to change the way the Indian construction machinery customer operates. JCB Livelink is an advance telematics system which provides information on service, operation and security of machines. JCB has set up five world-class facilities in Ballabgarh, Pune and Jaipur - this is the latest addition in our manufacturing footprint. We have always taken the longterm view on growth and have continued to invest. We invested during the 2007-08 downturn and now during 2013-14 in Jaipur. The idea is to keep pace with future economic growth and to further strengthen JCB's position as a market leader in construction equipment industry. We also have the strongest distribution network in the construction equipment sector.

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‘The CE industry is awaiting the budget’ — Rajinder Raina, General Manager – Marketing, Escorts Construction Equipment

What is ECE’s roadmap for the construction equipment segment? Currently, we are present in three major segments— material handling, earthmoving and road construction. Being the leaders in pick-n-carry cranes, we are going to introduce new models in 2015 to maintain our leadership position as the market requirement is dynamic. In backhoe loader business, we have been improving upon our market share and intend to double it by middle of 2015. On the road construction front, vibratory compactors are being

upgraded to the next level to be amongst the top 3.

ECE had plans to restructure its construction equipment division and improve product mix. ECE is a part of Escorts Ltd and the merger happened quite some time back. Within ECE, the restructuring has been completed and the new structure would be functional from December 1, 2014. The restructuring has been done to put right focus on various areas in keeping with Vision 2020. The new structure would deliver the

best possible results for the customer and the company. The market dynamics is going to change in the coming few years and we at ECE being conscious about the same are working on the right product mix that will cater to the changing market demands and give us the desired results within the company and in the market place.

What are your expectations on infrastructure development from the government? The takeoff is expected to be slow followed by a phase of deployment of the idle

Escorts Construction Equipment manufacturers and markets a wide range of construction and material handling equipment like cranes, loaders, vibratory rollers and forklifts. Rajinder Raina discusses the likely growth drivers for the construction equipment industry in an interview with Sandeep Menezes.

machines and thereafter the market will gain momentum as different infrastructure projects will get awarded. The new government is conscious of the fact that the stalled projects need to be pushed through and newer ones to be awarded, but it has to make it happen sooner than later. The industry is waiting for the next Union Budget to be a milestone budget with some bold declarations which are needed to accelerate growth.

Tell us about the growth scenario and main demand drivers across CE sector.

The major demand is expected from roads, mining, ports, cement, power and manufacturing. Exports have to grow at a definite pace. Low cost of money will help and RBI has to play its bit of role. Implementation of GST has to be put on fast track. The falling crude prices need to be leveraged. However, the biggest enabler/driver is time, not only for these things to happen, but they have to happen in quick time because the Indian Growth Story has lost a lot on the time graph and cannot afford any further loss due to delays.

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ENERGY

PM NEWS BUREAU

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inister of State (Independent Charge) for Power, Coal, New and Renewable Energy Piyush Goyal recently declared the commencement of commercial operation and generation of the 110-MW unit-II of Muzzafarpur thermal power station (stage I) of Kanti Bijlee Utpadan Nigam Ltd and the first 660-MW unit of NTPC’s Barh super thermal power station, both in Bihar. Muzzafarpur TPS: Situated at Kanti in Muzzafarpur district of Bihar, the namesake thermal power station belongs to Kanti Bijlee Utpadan Nigam Ltd, a subsidiary of NTPC (65 per cent), in joint venture with Bihar State Power Generation Company Ltd (35 per cent). The 2x110 MW power station was owned by Bihar State Electricity Board. However, both the units were under shut down. In order to revive the station, the Bihar government handed over the

Projectmonitor, Mumbai, December 1-15, 2014

Bihar gets more power

A view of NTPC's 2,340-MW Kahalgaon super thermal power plant. station to a JV company formed by BSEB and NTPC. At present, 2x195 MW

capacity is under construction. Bihar will get 484 MW from the project (220 MW from stage-I and

264 MW from stage-II), which is 80 per cent of the project capacity. Barh STPS: NTPC-Barh

will have a total capacity of 3,300 MW in two stages (stage-I - 3x660 MW and stage-II - 2x660 MW). Sit-

uated in Patna district of Bihar, the project is expected to benefit the state and elsewhere in the eastern region. India’s Ministry of Power has allocated 26.42 per cent power of stage-I and 50 per cent power of stage-II to the home state and the balance for allocation to West Bengal, Odisha, Jharkhand and Sikkim. At present, NTPC has a capacity of over 3,200 MW in Bihar from Kahalgaon (2,340 MW), Muzzafarpur-I (220 MW) and Barh II (660 MW). The total capacity under construction is 6,010 MW, namely Barh-I (1,980 MW), Barh-II (660 MW unit V), Nabinagar, a subsidiary of NTPC (1,000 MW), Muffaarpur-II, a subsidiary of NTPC (390 MW), and Nabinagar-I, a JV with Bihar SEB (1,980 MW). The current allocation of power from NTPC to Bihar is 1,864 MW and in coming years the public sector power utility intends to provide 3,622 MW of power from its upcoming stations.

Growth of commercial vehicle lubricant market PAGE 14 ONGC has approved Cairn India’s gas development plan for Rajasthan fields which involves increasing production from the Raageshwari deep gas fields in the Rajasthan block to 100 million standard cu ft (2.83 mscmd) by fiscal 2017. In April 2014, Cairn had submitted a revised development plan to ONGC. Cairn India is on track to double the Raageshwari deep gas daily production by the fourth quarter of fiscal 2015, from the present 0.25 million standard cu ft of gas. The company is utilising its full resource base of 3,00,000 barrel of oil equivalent per day from its Barmer block. Carin India has floated tenders for construction of the gas processing terminal. BHEL has commissioned the second module of the 2x363.3 MW gas-based combined cycle power plant of ONGC Thermal Power Corporation in Tripura. Located at Palatana in Udaipur district of the northeastern state, around 50 km from capital Agartala, the CCPPcomprises two modules of 363.3 MW each equipped with fuelefficient advanced class Frame 9FA gas turbines. BHEL had won the contract for setting up the CCPP on EPC basis. With this, BHEL has commissioned nine modules of Frame 9FAgas turbines in the combined cycle mode, in India. BHELhas so far commissioned 911 MW of gas-based and hydro sets in Tripura which accounts for 100 per cent of the state's generating capacity.

Ministry of New and Renewable Energy has identified 12 locations in different states for setting up new solar parks, as part of the government’s scheme to establish 25 solar parks over the next five years. The total capacity will be around 20,000 MW, with each park capacity ranging from 500 MW to 1,000 MW. For this fiscal year, the government has allocated `1,000 crore for the development of ultra solar projects and parks. The ministry is finalising the draft proposal to get approval from the Cabinet. Andhra Pradesh has proposed a 2,500-MW park; Telangana 1,000 MW; Madhya Pradesh is keen to have two parks of 750 MW each; Karnataka a 750-MW park; Rajasthan has identified land to set up projects as big as 4,0005,000 MW; and Odisha and Punjab have planned solar parks of around 3,000 MW each. Chennai Petroleum Corporation Ltd has invited tenders for civil and structural work at Manali Refinery located in Chennai district of Tamil Nadu. Bids have been invited for work related to the resid upgradation project at the refinery. The Manali Refinery Upgradation project is currently under execution at an estimated cost of `3,350 crore. Indraprastha Gas Ltd, the authorised CNG operator in Delhi, plans to set up three more CNG stations in Delhi during the current financial year and another eight CNG stations in 2015-16. The land acquisition process, both allotment and possession, has been completed for setting up nine CNG stations. The sanctioning of building plan is awaited for seven CNG stations. Two plots for CNG stations require Delhi Urban Shelter Improvement Board assistance for removal of encroachment.

automotive demand, followed by gear oil and hydraulic transmission fluid (HTF) at 18 per cent each. SAE 15W-40 and SAE 20W-40 account for 45 per cent and 39 per cent, respectively, of the total HDMO sales in the commercial automotive market for engine oils. The use of monogrades, which account for 12 per cent of total HDMO consumption in 2013, has been constantly declining. The use of fuel economy oil is slightly increasing, accounting for 2 per cent of the overall HDMO consumption. The usage of CNG vehicles is increasing, and CNG lubricants account for 2 per cent of the total HDMO sales in 2013.

Emission standards The introduction of Euro IVbased Bharat Stage (BS) IV emission standards in April 2010 has led to technical changes in diesel vehicles, such as introduction of Exhaust Gas Recirculation (EGR) systems in vehicles. The sulfur limit under BS IV emission standards has been reduced to 50 ppm from 350 ppm. CNG and LPG as an alternate fuel demand are picking up in India, especially in cities with access to CNG and LPG for CV segment other than passenger car. Demand for CNG specific lubricants is expected to grow in line with the growth in CNG vehicle population. Euro V-based BS V is expected

to come into force by 2020 in India.

OEM tie-ups For oil companies, having tie-ups with OEMs is becoming increasingly important to increase their foothold in the country. The profit margin is relatively low for suppliers in the OEM market, but it provides them access to the aftersales market as well. A few suppliers are also coming up with co-branded oils with OEMs, which will help vehicle owners to associate the OEM brand with that particular supplier, and is expected to create a better brand image. In an attempt to increase their penetration in the market, many suppliers as well as OEMs have been expanding their distribution reach and dealerships, respectively, in semi-urban and rural areas.

Longer drain Most of the new BS IV vehicles that are being launched have engines that require better quality lubricants, which typically offer longer drain. Shell has established technology in fuel economy lubricants for CV and fill for life lubricants for transmission. Consequently, overall growth in lubricant demand due to the growth in vehicle population has been to an extent arrested by lubricants with long drain interval.

Shift in viscosity grades In engine oil, the demand for 15W-40 has superseded demand for 20W-40, and it is expected

that the ratio would get further skewed in the coming years, as most of the OEMs now recommend the use of the former. Amongst gear oils, demand for monogrades has declined considerably over the last few years, while demand for multigrade has increased correspondingly. As per Kline the overall lubricant consumption in India will grow at an annual rate of 2.5 per cent over the next five years. The commercial and industrial lubricant segments will exhibit a moderate growth of 2.3 per cent and 1.6 per cent per year, respectively.

Technological trends To meet the challenges on soot induced wear and viscosity increase posed by high EGR rates combined with high sulfur fuel while maintaining the ODI, OEMs are now recommending engine oils with API CI-4 plus specification for latest models. Engine oils with API CJ-4 specifications confirming to Low SAPS (sulfated ash, phosphorous and sulfur) which were designed for low sulfur fuels like ULSD (ultra low sulfur diesel) should be used with caution for extended drain intervals in India. Fuel economy benefits across engine and driveline are becoming increasingly important and OEMs are looking at lubricants to contribute to their overall fuel economy target. This would mean a further downshift in viscosity grades. However, many of these developments depend on Emission Norms Phasing Plan laid out by the government and availability of low sulfur fuels.

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REAL ESTATE

Projectmonitor, Mumbai, December 1-15, 2014

NAVI MUMBAI INTERNATIONAL AIRPORT

Cidco gets flak for high fee

Rajesh Prajapati, MD, Prajapati Constructions Ltd, and (right) illustration of Navi Mumbai airport. PM NEWS BUREAU

he decision by the City and Industrial Development Corporation of Maharashtra Ltd to levy very high development fee for permission to develop projects in Navi Mumbai Airport Influence Notified Area (NAINA) would be detrimental to the development of the area, Rajesh Prajapati, Managing Director, Prajapati Constructions Ltd, Navi Mumbai, said in a press release. "The exorbitant development charges will tender affordable housing into a joke as the cost of housing is bound to double. The devel-

ESTIMATED COST OF THE PROJECT Phases 1 2 3 4

Operational Year 2017 2020 2025 2030

Traffic (MPPA) 10 25 45 60 Total

Source: CIDCO

opment fee will translate into cost hike by `500 per square foot," Prajapati noted. Prajapati argued that the cost of housing was already high in and around Navi Mumbai and home buyers were looking at outskirts of the city for affordable housing. However, the new levy was bound to make affordable housing shortage even more acute.

"We hope better sense prevails and CIDCO will reconsider their decision, most importantly, in the interest of home buyers who have very few options and nowhere to go," Prajapati said. He also drew CIDCO's attention to widespread illegal construction in NAINA area and said that the planning authority's new move would further aggravate the

Mangalya Group unveils new residential project in Noida PHOTOS: MANGALYA GROUP

Manoj Kumar Singh, MD, Mangalya Group

PM NEWS BUREAU

angalya Group, a real estate developer from Noida, Uttar Pradesh, has launched its new residential project called 'Ophira' in Sector1, Greater Noida (West), near Delhi. The project offers 2-3 BHK apartments. The project is located 15 minutes away from Noida City Centre metro station and features all modern amenities and facilities, such as an exclusive club house, swimming pool coupled with

KEY POINTS Project Type Location Developer Launch Date Date of Possession Status

Ophira Residential Sector-1, Greater Noida West Mangalya Buildtech Pvt. Ltd January 2014 2017 Under Construction

Estimated Cost @ FY13 (`` crore) 6,215 3,699 3,162 1,498 14,574

kids' splash pool, indoor and outdoor recreation facilities, joggers track and meditation hut, besides sporting amenities like tennis and basketball court, and gymnasium, covering 80 per cent of the area. It will also have 24-hour power back-up, rainwater harvesting, eco-efficient structures and CCTV security. Speaking at the launch of the project, Manoj Kumar Singh, Managing Director, Mangalya Group, said, "Ophira is a worldclass residential project that offers peaceful living and tranquillity." Construction of the project is underway and is expected to be delivered by 2017. The area ranges from 1,025 sq. ft to 1,455 sq. ft, apartments under this project with maximum carpet area in Noida extension. Project located nearby the upcoming Bridge connected Noida Extension to Noida.

housing problem. The Navi Mumbai International Airport, located over an area of 1,160 hectares, would be developed in four phases. Phase-I envisages the construction of north runway and attached taxiway system, terminal building and concourse (1,15,000 sq. m), 20 contact gates, five remote gates, general aviation apron (23,340 sq. m), technical building and ATC tower, and part of the cargo complex. Most of the approvals and clearances for the project have been obtained. These include environment and coastal regulation zone, defence, and stage-1 forest and wildlife clearance. The Bombay High Court has permitted the clearance of mangroves in the airport area. The Navi Mumbai Airport is proposed to be developed through PPP. A special purpose vehicle will be formed in which CIDCO and its nominees will hold 26 per cent of equity and the rest will be held by the private developer. The LBG-Ineco-Rites consortium, the prime consultant appointed by CIDCO, has prepared the master plan and detailed project report for the airport project.

Puravankara signs land deal in Pune PM NEWS BUREAU uravankara Projects Ltd, a leading real estate company, has entered into a landmark joint venture deal of approximately 30 acres of prime residential land in Mundhwa, east Pune, Maha- Ashish Puravankara, Joint MD, Puravankara rashtra Projects Ltd This JV arrangement, which was structured by JLL India's Capital Markets division, will yield an expected 2 million sq. ft of prime residential space. Ashish Puravankara, Joint Managing Director, Puravankara Projects Ltd, said, "We are excited about this joint venture in Pune, as this would mark our foray into the west Indian market. Pune offers great potential with its changing demographics and significant demand in real estate, across segments." From a residential real estate viewpoint, Mundhwa is now the location of choice for infotech employees from Pune's Magarpatta, Kharadi and Kalyaninagar IT hubs. Adding to the strategic value of this micro-market are major malls. Puravankara Projects Ltd has a significant presence in Bengaluru, Kochi, Chennai, Coimbatore, Hyderabad, Mysore and overseas in Sri Lanka. The company has 25.52 million sq. ft of projects under development with additional 79.83 million sq. ft in projected development over the next seven to 10 years.

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INSIGHT

Projectmonitor, Mumbai, December 1-15, 2014

Students are the core of our educational institutions. They are the ripening fruits of their intellectual enterprise. The students of today would be engaged in their lifetime in jobs that perhaps do not even exist now. They have to be taught critical skills and transferable competencies. — Pranab Mukherjee, President of India

Production of world crude steel climbs 2% DR M.S. KAPADIA orld crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 137 million tonnes in October 2014, more or less the same as in October 2013. The 65 countries account for around 98 per cent of total crude steel production in the world. China’s crude CRUDE STEEL PRODUCTION ('000 TONNES) steel production was January-October % Increase 67.5 million tonnes 2014 2013 2014/13 during the month, a China 685,346 671,458 2.1 slight decrease of Japan 92,491 91,983 0.6 0.3 per cent comUSA 73,667 72,658 1.4 pared to October India 69,492 67,802 2.5 2013. Japan proSouth Korea 59,458 54,599 8.9 Russia 58,995 57,537 2.5 duced 9.4 million South America 37,792 38,682 -2.3 tonnes of crude steel Germany 36,096 35,517 1.6 (-1.7 per cent) and Brazil 28,608 28,800 -0.7 South Korea 6.2 milTurkey 28,435 28,698 -0.9 lion tonnes (+4.5 per Total for above 10 countries 1,170,380 1,147,734 2.0 cent). In the EU, GerTotal for other 55 countries 197,125 193,465 1.9 many produced 3.5 Total for 65 countries 1,367,505 1,341,199 2.0 million tonnes of crude steel (-5.9 per cent), Italy 2.1 million tonnes (-.5.4 per cent) and France 1.5 million tonnes (+15 per cent). USA produced 7.3 million tonnes of crude steel in October 2014, a decrease of 0.7 per cent. Brazil’s crude steel production was 3.1 million tonnes (+2.7 per cent). Turkey’s crude steel production was 11 per cent down to 2.7 million tonnes. The crude steel capacity utilisation ratio for the 65 countries was 74.7 per cent in October 2014; 2.6 percentage points lower than in October 2013 and 1.4 percentage points than in September. Total crude steel production during the first ten months of the calendar year 2014 has been assessed at 1,367 million tonnes, showing 2 per cent increase over a similar period of 2013. Crude steel production in India increased by 2.5 per cent to 69.5 million tonnes, whereas the same in China, which produces around a half of crude steel in the world increased by 2.1 per cent to 685.3 million tonnes. The World Steel Association (worldsteel) represents approximately 170 steel producers (including nine of the world's 10 largest steel companies), national and regional steel industry associations, and steel research institutes.

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Editor Editorial Advisor Executive Editors

: : :

Deputy Editors

DESIGN & PRODUCTION Art Director : Graphic Designers : Photo Editor

Shashikant Hegde Dr. M.S. Kapadia Prashant C. Trikannad Venugopal Pillai Renu Rajaram (Mumbai) Sandeep Menezes (Mumbai) Debdeep Chakraborty (New Delhi)

Satish Kamath Nitin Parkar, Rajendra Vichare, Madhukar Ingavale Anthony Azavedo

Manufacturing sector breaks through decline in September DR. M.S. KAPADIA

ILLUSTRATION ONLY

actory output expanded 2.5 per cent in September, after y-o-y stagnation in the previous two months. What is more encouraging, a generally laggard manufacturing not only matched the overall pace in aggregate IIP, the sector also came out of the rot during July-August. Capital goods index, a proxy indicator for project investment, too, spurted 11.6 per cent, after decline in the preceding two months. Electricity slowed to 3.9 per cent after a scorching double-digit increase during AprilAugust. Production index of mining, however, recorded the sub-sector’s slowest pace of 0.7 per cent in H1. In mining, coal production expanded 7.2 per cent, though petroleum crude and natural gas remained in the negative zone. Taking H1 period, aggregate factory output index expanded 2.8 per cent, which though relatively a modest measure, was much better than 0.5 per cent in the same period during 2013-14 or near stagnation in this period two years ago. All the three segments have recorded improvement: mining increased 2.1 per

cent (decline of 2.5 per cent); manufacturing was up 2 per cent (0.2 per cent), and electricity, gas and steam 10.4 per cent (5.9 per cent). In manufacturing, 15 out of 22 industries at two-digit NIClevels showed positive growth over April-September. Industries showing negative growth during H1 included wearing apparel: (-) 6.8 per cent, publishing and printing: (-) 5.5 per cent, office and computing machinery (-) 39.9 per cent, radio, TV, communication equipment: (-) 49 per cent, motor vehicles: (-) 1.8 per cent,

INDEX OF INDUSTRIAL PRODUCTION (Y-O-Y % INCREASE) Mining Manufacturing Electricity Overall IIP Basic goods Capital goods Intermediate goods Consumer goods Consumer durables Consumer non-durables

SALES & MARKETING Senior Vice President : Product Head : Manager - Sales : Assistant Manager - Sales : Coordinator :

September 2013 2014 3.6 0.7 1.4 2.5 12.9 3.9 2.7 2.5 Use-based classification 6.7 5.1 -6.6 11.6 4.4 1.8 1 -4 -10.6 -11.3 12 1.5

H1 2013-14 2014-15 -2.5 2.1 0.2 2 5.9 10.4 0.5 2.8 1.3 -0.6 2.7 -1.2 -11.1 7.6

8 5.8 2.3 -4.6 -12.6 1.3

coke, petroleum refinery: (-) 2 per cent, and chemicals and chemical products (-) 0.4 per cent. Fifteen industries recording positive growth rates included food products (7.1 per cent), basic metals (13.6 per cent), non-metallic mineral products (6.6 per cent), machinery and equipment (5.5 per cent), transport vehicles (13.1 per cent) and electrical machinery (23.8 per cent).

Capital goods In use-based classification, capital goods index gushed 11.6 per cent in September. However, held down by decline in JulyAugust, the sector recorded a lower 5.8 per cent expansion over H1, which was nevertheless better than declines in H1 of preceding two fiscals. Among the other material inputs in project execution, cement production increased 9.7 per cent and alloy, non-alloy steel 2 .3 per cent cumulatively. Consumer durables index has kept sinking, consumer durables include passenger cars, two-wheelers, gems and jewellery etc. Consumer non-durables increased 1.3 per cent, basic goods 8 per cent and intermediate goods 2.3 per cent over H1.

FROM OUR ARCHIVES Sanjeev Singh Abhishek Mishra Vijay Bhoir Bharat Metharamani Raghuvansh Pandey

CIRCULATION & SUBSCRIPTION Head - Circulation : Raju Chendavankar Support - Circulation : Anil Mungekar Subscription : Rosebin Mukadam Printed, published and Edited by Shashikant Hegde on behalf of Economic Research India Pvt. Ltd and published at Economic Research India Pvt. Ltd, Sterling House, 5/7 Sorabji Santuk Lane, Off. Dr. Cawasji Hormasji Street, Dhobi Talao, Mumbai 400002, and printed from Print Vision, 31, Jyoti Industrial Estate, Near Makhamali Talao, Noorie Baba Darga Road, Thane (West) 400601. Editor: Shashikant Hegde

Disclaimer: This magazine is for information purposes only. All rights reserved. All copyright in this magazine and related works is solely and exclusively owned by Economic Research India Pvt Ltd. No part of the contents of this newspaper may be reproduced in any form without the written permission of the Editor.While due care has been taken during the compilation to ensure that the information is accurate to the best of Economic Research India Pvt Ltd’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. Economic Research India Pvt Ltd neither recommends nor endorses any specific products or services that may have been mentioned in this magazine and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this document.Readers are recommended to make necessary enquiries before acting upon or entering into any commitment in relation to any advertisement published in this publication. Economic Research India Pvt. Ltd does not vouch for any claims made by advertisers of products and services. The Directors, Printer, Publisher and Editor of Economic Research India Pvt. Ltd shall not be held liable for any consequences, in the event such claims are not honoured by the advertisers.

May 1, 2001

Regional disparity in project investment he recent Quarterly Survey by ProjectsToday, a division of Economic Research India Ltd, finds that Maharashtra has retained its T premier position, both in terms of the number of projects and investment. As of April 2001, with 1,070 projects entailing an aggregate investment of Rs.1,82,000 crore, the state attracted around 11 per cent of the total investment planned in the country. This is undoubtedly a commendable achievement. However, the sad part of the story is that the investments are not spread across all regions in the state. A look at the regional investment pattern reveals a lopsided development of the state in recent years. According to the survey of the four major regions—Konkan, Western Maharashtra, Marathwada and Vidarbha—Konkan has cornered maximum investment followed by Western Maharashtra and Vidarbha. Marathwada region has the least investment. The state government has done little to mitigate this disparity. This is despite the fact that the state and central governments have been controlling most of the investment in recent years.

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SPECIAL REPORT

Projectmonitor, Mumbai, December 1-15, 2014

Draft civil aviation policy relies on PPP W DEBDEEP CHAKRABORTY

ith a view to make the regulations governing the civil aviation sector more meaningful and transparent, the Ministry of Civil Aviation recently released the draft of the new civil aviation policy for consultations with stakeholders and public. The new civil aviation policy is expected to come into effect from January next year. As per the draft policy, the government will continue to rely on the public-private partnership model for developing more airports in the country. Currently, there are a total of 132 airports in the country. Of these, 46 domestic airports and 15 international airports are run by Airports Authority of India. Four joint venture airports developed under the PPP model operate in the cities of Delhi, Mumbai, Bangalore and Hyderabad. Out of the remaining airports, 31 are not operational and the rest include civil enclaves in defence airports or customs airports. There are also six airports run by state governments or the private sector. During the last decade, four major airports in the country have been developed under the PPP model. These airports of international standards are making significant contribution towards growth of the civil aviation sector as well as regional economic growth. “Government’s objective is to develop more airports in the PPP mode, with appropriate modifications to ensure competitiveness in costs,” the draft policy said.

Phased development The government proposes to carry out the development of airports in phases. In the first phase, development of the airports in Chennai, Kolkata, Ahmedabad and Jaipur will be taken up. The draft policy also focuses on development of the six metropolitan airports of Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad as major international hubs. These airports will be the main access points for international travel to and from India in the future. “We would in future follow a ‘hub-and-spoke’ model, which would also facilitate the development of regional networks and air connectivity as a whole. The existing bilateral agreements with foreign airlines will be reviewed on an equal opportunity basis. Future bilateral agreements will be designed in such a way as to facilitate the hub-and-spoke model,” the draft policy said. The draft policy calls for designing the airports as integrated multimodal hubs which will include rail, metro rail, bus

The new terminal at IGI Airport in Delhi.

and truck connectivity as well as accommodation and other services with the objective of providing best possible service levels and potential for growth. The draft policy also stresses on the need to create access to manufacturing, business, tourism, and pilgrimage centers alongside development of airports through integration and pooling of resources between various departments of the cen-

tre and states as well as other stakeholders. In order to ensure the best possible conveniences to the passengers, the draft policy intends providing electronic check-in facilities and automated baggage handling services at airports in phases. Scan the QR code to read the full report at www.projectsmonitor.com

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ORDERS & CONTRACTS

Projectmonitor, Mumbai, December 1-15, 2014

Punj Lloyd to build AHN SOURCE: WIKIMEDIA COMMONS

Ricoh India Ltd, a leading office automation company, has received a `1,370-crore order from the Department of Posts, Government of India, for the supply, installation and maintenance services of hardware peripheral devices and operating system for the Rural Information and Communication Technology. The project needs to be completed over the next five years. VA Tech Wabag, a leading Indian MNC in water and wastewater treatment, has won an order worth `100 crore from Maynilad Water Services, Philippines. The order is for the construction of a 20-mld sewage treatment plant at Tunasan. The project is funded by the World Bank. Wabag is required to design and build the plant. The company will also operate and maintain the plant for one year. At present, the company is executing two large projects at Illugin and Putatan in the Philippines. It has already executed three projects. L&T Construction and L&T Infotech, both subsidiaries of Larsen & Toubro Ltd, have been selected for a surveillance project in Mumbai. The two entities emerged as the lowest bidders for the project, with a quote of `950 crore. The order entails the installation of about 6,000 closed circuit television cameras across the metro. This is the fourth attempt by the Maharashtra government to invite bids for the project.

PM NEWS BUREAU

unj Lloyd has secured an EPC highway contract worth `666 crore from the Ministry of Road Transport and Highways for 90.586 km of the Asian Highway Network, a cooperative project for improving transport facilities throughout 32 nations and providing road links to Europe, a company release said. The scope of work comprises rehabilitation and upgrading to 2/4 lanes of Bhutan border at Pasakha to Bangladesh border at Changrabandha comprising Jaigaon, Hasimara, Dhupguri section and Mainaguri-

Changrabandha section. This contract includes the proposed Pasakha access road of length 6.558 km, bypass to Jaigaon and Hasimara in West Bengal. The Asian Highway Network is a part of the Asian Land Transport Infrastructure Development project being supported by the United Nations Economic and Social Commission for Asia and the Pacific. Also known as the Great Asian Highway, the network has eight routes in India including AH-48, funded by the Asian Development Bank. The total length of the Asian Highways in India is about 11,458 km, of which 11,432 km are national high-

ways and 26 km are state roads. The project is scheduled for completion in 30 months. Speaking on this win, J.P. Chalasani, Managing Director and CEO, Punk Lloyd, said, “We are proud to be a partner in this cooperative project. Besides creating high quality infrastructure, this development will reduce travel time and more importantly improve safety levels for travellers as it will be built to world-class specification.” With the new order, the group’s order backlog stands at `24,021 crore. The backlog is the value of unexecuted orders on September 30, 2014 plus new orders received after that date.

Valecha Engineering Ltd has won two projects worth `157.95 crore. The Valecha Engineering-Arnikonirman JV company bagged an order for upgrading and improving Jaleshor-Loharpatti section of Janakpur Parikarma Road (Ch 0.00-23.00) in Kathmandu, Nepal (`19.88 crore) and a contract from NHAI for the construction of a flyover and underpass at Hero Honda Chowk (at km 36.175) on Delhi-Gurgaon section of access controlled highway on NH-8 in Haryana (`138.07 crore). KNR Constructions Ltd, an infrastructure development company, has secured a `109.56-crore order from Madhya Pradesh Road Development Corporation Ltd for widening and reconstruction of Dabra-Bhitarwar-Harsi Road (Package-C). The project is to be completed within 24 months. The order has been awarded to the company’s 51:49 joint venture with Tomar Builders & Contractors (KNR-TBCPL). Alstom T&D India has been awarded a contract by Ceylon Electricity Board worth Euro 7 million (`56 crore). The company will monitor and control Sri Lanka's electricity transmission network. It will also supply its first energy management system and e-terraplatform. This will enable reliable, secure and efficient operation of Sri Lanka's hydro-thermal electricity system. This is Sri Lanka’s first energy management system project for grid monitoring, stability and control.

PROJECT INVESTMENT

Gamesa gets a wind on the Indian market PHOTO: GAMESA

PM NEW BUREAU amesa India, a leading wind energy company in India, has strengthened its operations in the country by announcing the launch of a new production line in its Nacelles plant in Mamandur, near Chennai, Tamil Nadu, the company said in a press release. Ignacio Martín, Executive Chairman, Gamesa Group, and Xabier Etxeberria, Business CEO, Gamesa Group, inaugurated the new production line for manufacturing larger G114-2.0 MW machines to be launched in 2015. For the first time in the Indian wind turbines industry, the Mamandur plant will feature an automated conveyor system in its production line which will considerably reduce the manufacturing time and ensures faster delivery. With the launch of the G114 next year, the production line will be one of the few multi-model lines in the sector assembling two models (i.e. G97-2.0 & G114-2.0) on the same line. Ignacio Martín, Executive Chairman, Gamesa Group, said, “The positive political climate coupled with the growing demand for renewable ener-

L to R: Ramesh Kymal, CMD, Gamesa India, Ignacio Martín, Executive Chairman, Gamesa Group, and Xabier Etxeberria, Business CEO, Gamesa Group, at the inauguration. gy was the key driver for us to further expand our presence. India is one of the top three markets for Gamesa contributing 27 per cent of the overall revenues in 3Q 2014. Gamesa plans to invest over Euro 100 million in India in the next five years. Our primary focus in India is to increase our manu-

facturing capability, developing our supply-chain and to increase our land bank to promote and develop wind farms.” The plant at Mamandur is a part of the earlier investment outlay made by the parent company to further strengthen its Indian operations. The company

already has two manufacturing plants in Vadodara, Gujarat, namely a blade manufacturing facility and a tower facility which is part of a JV with Daniel Alonso group. The company also has a state-of-theart integrated turbine monitoring and service training centre at Red Hills,

Chennai. There are 1,015 people working in Gamesa India. Xabier Etxeberria, Business CEO, Gamesa Group, said, “India has been a success story for Gamesa since we entered the country in 2009. Gamesa captured a market share of about 20 per cent of the total 2,070 MW installed in the country last year. We are committed to the Indian market and see technology as a differentiator to be the leader in the renewable energy segment. We will be introducing the next generation G114-2.0 MW turbines with longer rotors in 2015. Though this is a new turbine it leverages on the decade long experience of 18 GW of 2.0 MW platform installed globally.” “The investment climate in India is looking positive driven by the ‘Make in India’ campaign by the Government of India. With a technologically superior turbine and an efficient plant, fuelled by the future investments, we are aiming to increase our presence substantially in the coming year. With the new G1142.0 turbines, we are confident of offering the best value to our customers across India,” Ramesh Kymal, Chairman and Managing Director, Gamesa India, said.

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PROJECT UPDATE

Projectmonitor, Mumbai, December 1-15, 2014

PHOTOS: MERCK

KEY POINTS

Greenfield site Greenhouse gas reduction Cogeneration (steam and electricity) Uninterrupted power supply and biomass supply potential Fuel efficiency improvement 5% plant productivity increase

‘Growth of the Indian CE industry is assured’ PHOTO: WWW.MEDIA.NMM.DE

The cogeneration plant was installed at Merck's production site in Goa.

Merck commissions biomass plant in Goa

Construction machinery on display at bC India 2013 in Mumbai.

PM NEWS BUREAU

PAGE 3

erck, a leading company for innovative and hightech products in the pharmaceutical, chemical and life science sectors, has commissioned a climate-neutral cogeneration plant at its production site in Goa, a company release said. The project is part of a company-wide climate protection programme. Merck previously commissioned a new cogeneration plant at its headquarters in Darmstadt, Germany, in July. Dr. Thierry Hulot, Executive Vice President, Head of Global Manufacturing and Supply, and Member of Merck Pharmaceutical Executive Committee, inaugurated the plant. He said, “Merck’s new climateneutral cogeneration plant in Goa has a tremendous power output for our pharmaceutical and chemical production operations. In the manufacture of our products, we seek to impact the environment as little as possible.” The cogeneration plant is located in Usgao, around 45 km from Panaji, the capital of the western state of Goa. The unit, which has a power output of 3 MW, generates electricity and steam for the pharmaceutical

Dr. Thierry Hulot, Executive VP, Merck and chemical production operations in Goa. Merck is mainly recycling the shells of cashews and coconuts, two crops that are farmed in the region, to use as biomass. Overall, this will make it possible to reduce carbon dioxide emissions by around 11,500 metrics tons, corresponding to around 85 per cent of the site's total CO2 emissions. The biomass plant, which represents an investment of more than €3 million, will ensure that the site has a reliable supply of energy and can operate independently of the public power grid. More than

300 employees manufacture vitamin preparations, industrial and laboratory chemicals as well as microbiological products, among other things. Pramod Pimplikar, Director Technical Operations, GMSMerck Serono, said, “With this greenfield site, we aim to reduce CO2 emission by 85 per cent and deliver clean, green, efficient, reliable power and steam supply, improving efficiencies and contributing to the nation’s interest. By 2020 Merck KGaA has committed to reduce its global CO2 emissions by 20 per cent and we are happy to be in a position to contribute to those efforts.” The climate protection programme, Edison, comprises around 300 climate protection and energy efficiency activities of the Merck Group. The objective is to reduce greenhouse gas emissions from energy generation as well as to enhance the energy efficiency of research and production processes. Merck aims to reduce its total direct and indirect greenhouse gas emissions by 20 per cent by 2020, measured against the 2006 baseline. At its site in Jaffrey, New Hampshire, USA, Merck plans to commission a further biomass central heating plan next year.

L&T participating this year for the first time. In 2013, we welcomed approximately 40 per cent Indian headquartered companies and more than 60 per cent of foreign headquartered companies and expect the same ratio at bC India 2014. As far as the exhibition space is concerned, bC India will take up 120,000 sq. metres.

How many country pavilions are going to be there? Who are some of the new entrants to the trade fair? This year we will be welcoming exhibitors from more than 30 countries worldwide including national pavilions from China, Germany, Italy, Spain, Korea, USAand the UK

With a pro-reform government in New Delhi, what impact will bC India have on construction and earthmoving equipment and its associated industries? In my eyes there is a very obvious need of further infrastructural development plans in view of the country’s general need to improve the current situation. The growth of the construction equipment industry is almost assured, irrespective of the region. Looking at the current five-year plan and the huge planned infrastructure investment, I am convinced that this will attract many international clients. Also, with the new government at the Centre and its focus on infrastructure

Expand your business through P R I S M

development, trade shows like bC India will be crucial. We have been visiting various states and meeting with various state governments and we have realised that all of them are looking at developing their infrastructure within next few years. This should certainly become a booster for our trade show.

Igor, from a young student at bauma 2004 in Munich, Germany, to heading bC India 2014 in Noida, India, you have come a long way. Can you briefly talk about your association with this major trade fair? From my very beginnings at Messe München 10 years ago, I was somehow involved with our big shows like IFAT and especially bauma. After my first bauma in 2004 I wanted to be more and more involved with the project and organise such a show. So, there is, of course, a very emotional connection with this kind of trade fair. Therefore, I’m very proud to have the chance to realise a project like bC India in such an interesting market like India.

What are your thoughts on India as an investment destination for international companies? Even though India is still facing a slight downturn, it’s a country with huge potential and lots of opportunities. That’s why India still is an upcoming market which will further develop. India already is a very interesting market for companies from all over the world and I’m convinced that its importance will grow even further.

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Projectmonitor, Mumbai, December 1-15, 2014

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NEWS

Projectmonitor, Mumbai, December 1-15, 2014

Infra projects in India draw global attention DEBDEEP CHAKRABORTY

TOP SIX PROJECTS

s many as six infrastructure projects from India covering diverse sectors feature in the recently released third edition of Infrastructure 100: World Markets Report by KPMG. The Infrastructure 100 is a prestigious publication that produces an anthology of global infrastructure projects engaged in addressing excellence through scale, feasibility, complexity, innovation and impact on society. The latest edition of the report showcases 100 projects that embody the spirit of infrastructure, development and private finance in four distinctly different markets – economic powerhouses, emerging markets, mature international markets and small established markets. The projects featuring in the report were chosen from more than 300 projects across the globe by a group of independent industry experts assigned for each of the four markets. The sectors covered by the featured projects include communications, global connectivity, ener-

gy and natural resources, recycling and waste management, water, healthcare, urban mobility, urban regeneration, new and extended cities and education. The report identifies India along with Brazil, China, United States and Russia as economic pow-

erhouses. These countries account for 40 percent of the world’s GDP but are being held back due to infrastructural gaps, it said. The six Indian projects that feature among the world’s 100 most inspirational and innovative infrastructure projects in

the report include the $323 million Interceptor Sewage System project designed to divert raw sewage flowing into Yamuna River to treatment plants, the $20-billion Gujarat International Finance Tec City project which combines state-ofthe-art connectivity, infra-

structure and transportation with sustainable, environmentally sensitive growth, the $2.3-billion Delhi Metro Rail project that continues to expand, the $1.9-billion Yamuna Expressway project which connects the capital New Delhi with Agra, the $4.4billion Mundra Ultra

$323-million Interceptor Sewage System project $20-billion Gujarat International Finance Tec City project $2.3-billion Delhi Metro Rail project $1.9-billion Yamuna Expressway project $4.4-billion Mundra Ultra Mega Power Project $17.9-million Narmada Canal Solar project

Mega Power Project which is considered a landmark public-private partnership in the Indian energy sector, and the $17.9-million Narmada Canal Solar project aimed at conserving water while producing renewable power. In addition to listing the 100 infrastructure projects from across the globe, the report highlights key trends driving infrastructure investment in key markets and demonstrates how governments are coming together with the private sector to overcome funding constraints in order to finance and build projects for improving quality of life.

PATHFINDERS

Sudhir Raheja udhir Raheja, Member (Planning), Airports Authority of India, took over as Chairman on August 25, 2014. As Member (Planning) he was responsible for aerodrome planning, corporate planning and management services; project monitoring; architectural (planning) and development; and maintenance of metro and nonmetro airports all over India. He joined Airports Authority of India (erstwhile National Airports Authority) as executive engineer in 1988 and worked in various positions. As executive director (engineering), Raheja was instrumental in development and upgradation of infrastructure projects at airports in northern, northeastern and eastern India, including construction of a new greenfield airport at Gangtok, Sikkim. He was also associated with the first expansion programme of development and modernisation of 12 domestic airports as ‘Model Airports’. Acivil engineering’ graduate from Delhi College of Engineering, Sudhir Raheja did professional courses in ‘Seismic Design of Reinforced Concrete Buildings’ conducted by IIT, Kanpur, and ‘Airport Management’ from International Aviation Management Training Institute Montreal, Canada. He did his specialisation in seismic design of reinforced concrete buildings, airport management and planning, passenger facilitation services and airport infrastructure. Raheja is certified as a ‘Fraud Examiner’ under accreditation from Association of Certified Examiners, Texas, USA. He has participated in numerous conferences, workshops and seminars organised by International Civil Aviation Organisation, Airports Council International and Federal Aviation Administration. Raheja has rich project implementation experience. He was conferred with ‘Certificate of Merit’ in 1982 for timely completion of ASIAD-82 indoor stadium, Delhi, and was given ‘Commendation Certificate’ for excellence and timely completion of Maruti Udyog Ltd. He was also the driving force in the formulation of ‘Annual Maintenance Term Contract’ and ‘Pavement Management System’, documents adopted at all airports in AAI.

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Published on 1st and 16th of every month W.P.P. Lic No. MR / TECH / WPP-22 / SOUTH / 2014 Regd No. MH/MR/South-64/2012-14 Posted at Mumbai Patrika Channel Sorting Office, Mumbai - 400001 on 1st/2nd and 16th/17th of every month