Pv march 2015 by ERIL Publications

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Editor Shashikant Hegde Deputy Editors: Sandeep Menezes (Mumbai) Renu Rajaram (Mumbai)

“People try to live within their income so they can afford to pay taxes to a government that can't live within its income.” — Robert Half

Panel of Advisors Vikas Apte, Owner, Vipratech Consultants, Mumbai Himanshu Kapadia, Director, Construction Chemicals - ASEAN BASF South East Asia Pte Ltd (Singapore) Prashant Mahagaokar, Director, SMC Infrastructure

New fiscal, new hope

Tushar Mehendale, MD, ElectroMech Material Handling Systems, Pune Anand Gupta, Hon Treasurer, Builders Assn of India Pankaj Mehendale, Structural Engineer, Hyderabad Manager - Database Shailesh Khot DESIGN & PRODUCTION Art Director Satish Kamath Graphic Designers Nitin Parkar, Rajendra Vichare, Madhukar Ingavale SALES & MARKETING Senior Vice President Sanjeev Singh Asst. Manager - Sales Vijay Khandale (Mumbai) Senior Executive - Sales Pramod Suryavanshi (Mumbai) Subscription Rosebin Mukadam Head - Circulation Raju Chendavankar

Printed, published and edited by Shashikant Hegde on behalf of Economic Research India Pvt. Ltd., published at Sterling House, 5/7 Sorabji Santuk Lane, Opp. Dr. Cawasji Hormasji Lane, Marine Lines (E), Mumbai - 400 002 and printed at Jayant Printery, 352/54, J. S. S. Road, Murlidhar Temple Compound, Near Thakurdwar P. O, Mumbai - 400 002. Editor: Shashikant Hegde

Project Vendor March 2015

he recent Economic Survey has forecasted that the economy would grow by 8.1-8.5 per cent in 2015-16 under a new calculation method that makes India the world's top-growing big economy. The forecast marks acceleration from growth of 7.4 percent in the recently ended fiscal year. This makes India the only large economy on high growth trajectory. But this growth is mainly driven by the crucial need of infrastructure wherein massive investments are expected and the rising demographic dividend – most of whom are young and of employable age. If both these factors are put on the right course then the nation will witness even higher economic growth in the years ahead. As we enter into another financial year with hopes that the new central regime – one of the strongest in the last two decades due to its big mandate — will ensure that right polices are chalked out without bowing to political compulsions thereby ensuring higher growth. The buzz nationwide is ‘Make in India.’ In fact this is the government’s mantra and the PM’s main agenda. But no local manufacturing can become successful until the nation’s transport infrastructure is not strengthened. The huge costs that Indian businesses incur on logistics, supply chain management and warehousing gives them a disadvantage vis-à-vis their global counterparts. Therefore, we a Projectvendor have dedicated this edition to the Transport, Warehousing and Logistics industry. As the last fiscal has ended, we hope that the year ahead is much better for the Indian industry and growth continues with stronger fervor.

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Contents

NEWS WATCH NCR inaugurates new manufacturing facility in Chengalpet

10 INTERFACE

Vikas Anand, MD - DHL Supply Chain India felt that the implementation of GST will change the way supply chains are operated in India.

INTERFACE

Areef Patel, Vice-Chairman - Patel Integrated

Logistics told that better transport infrastructure will cut down operating costs.

INTERFACE

Adarsh Hegde, ED, Allcargo Logistics explained that multi-modal transportation system will make India more accessible & productive.

INTERFACE Deepak Baid, Director – Siddhi Vinayak Logistics stated that the introduction of GST will be a boon for the logistics and transportation industry.

INTERFACE

Ramesh S. Ramakrishnan, CMD - Shreyas Shipping & Logistics felt vessel sharing agreements will help operators to remain in better health.

LEAD STORY Sandeep Menezes looks at challenges faced while turning around India’s antiquated warehousing infra in support of local manufacturing.

EXPERTSPEAK

Ravindra Gandhi reflects on the importance of container shipping to India’s international trade and economy.

CASE STUDY New Technologies: Constructing office for

Project Vendor March 2015

factories

DOCTORS DIAGNOSIS

Port traffic goes up 3.2 per cent during January Project Cost Index increases marginally during January

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News Watch

NCR inaugurates new manufacturing facility in Chengalpet

Navroze Dastur inaugurating NCR's manufacturing facility in Chengalpet. PV News Bureau

CR Corporation, the global leader in consumer transaction technologies, recently inaugurated its manufacturing facility in Chengalpet, close to Chennai. The new facility at the Mahindra World City is built over a 117,079 square-foot area, with a single roof design structure that allows NCR to introduce innovative technologies faster to the market and expand to new growth industries like retail and hospitality. John Fleming, Principal Commercial Officer, American Consulate General, Chennai was in attendance as the Chief Guest at the opening ceremony, together with customers, employees and NCR executives. After the ribbon cutting ceremony the guests took a tour of the new facility followed by a tree-plantation initiative to reinforce NCR’s commitment to sustainability and a green environment. “India’s strategic strengths in advanced manufacturing and the enormous talent pool will drive the success of NCR’s new facility and meet the rising demand for unique and customized solutions to address challenges faced by financial insitiutions,” said Robert

Project Vendor March 2015

Visintainer, Vice President, NCR Global Manufacturing. “This investment in a world class manufacturing facility further reinforces NCR’s commitment to the India market.” The plant is strategically located and is in close proximity to suppliers, customers as well as robust transportation like ports and airports that will help to improve operational costs, increase efficiency and enhance internal collaboration. “This new facility will further strengthen our leadership position in India as we get closer to our customers and respond faster to the demands of the market,” said Navroze Dastur, Managing Director, NCR India. “We will continue to manufacture financial solutions such as ATMs, and also aim to expand to manufacture innovative consumer transaction technologies for new growth industries; while contributing to exports.” The new facility will participate in ‘lean’ manufacturing practices and comply with NCR global standards related to Environmental, Health and Safety (EHS), and quality. In addition, NCR has filed for the Leadership in Energy and Environmental Design (LEED) Silver certification for building sustainability and Tier 1 certification on Resilient IT Infrastructure.

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12-14] Interface - Vikas Anand - DHL.qxp

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DHL is the global market leader in the logistics and transportation industry. The company has expertise in international express, national and international parcel delivery, air and ocean freight, road and rail transportation as well as contract and e-commerce related solutions along the entire supply chain. It has a global network of more than 220 countries and territories and around 315,000 employees worldwide. Vikas Anand, Managing Director - DHL Supply Chain India Pvt. Ltd told Sandeep Menezes that the implementation of GST will change the way supply chains are operated by most companies in the country

Interface

Indian transportation industry is highly fragmented India is unique because transportation costs are high by virtue of the way the supply chains are designed against tax optimization and not transport optimization. Comment. The Indian transportation industry is highly fragmented and poses several challenges with 80% of operators owning less than five trucks and most of them being lane specific. As there are very few regional or pan-India players, coupled with the different taxation and road permit regulations, large shared facilities can provide the leverage to use economies of scale as a competitive advantage in transport too. A well-developed Transport Management System (TMS) can achieve better fleet utilization and improve internal control through a centralized platform and enhanced reporting. In fact, at DHL Supply Chain, we have already introduced our Full Truck Load (FTL) services across India, in line with our strategy to offer vehicles of various capacities and are offering customized solutions and support, in 12

Project Vendor March 2015

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Interface

India’s warehousing infrastructure has been based on tax structure. addition to tracking of shipments. Additionally we have also created a branch network across key cities to support the domestic trucking needs of our customers with strategically located offices, equipped with a team of professionals to support business requirements. India spends around 13% of its GDP on logistics; this is higher than USA (10%), Europe (11%) and Japan (10%). Inefficient practices have inflated the industry size, how can we improve supply chain efficiencies? There are several reasons for the high spend on logistics in our country, as a percentage of GDP. Logistics and supply chain is a highly disorganized industry in India. The condition of roads, the road network itself and vehicles (a large majority of which are owned by single individuals) that are not fuel efficient add to the supply chain cost. Everything from a shed, to a godown to large storage facilities are considered to be “warehouses”. More so, due to the current taxation structure, multiple warehouses exist creating several points of stock transfers, leading to inefficient distribution channels. A uniform tax will help India become a hotspot for manufacturing, reduce the cost of production, lead to consolidation of warehouses and increase synergies in the supply chain. With the government’s renewed push towards GST implementation, tell us about the expectations from the logistics industry? GST will be a game changer for business for players in the logistics and supply chain industry. The implementation of GST will change the way supply chains are operated by most companies in

the country as it will bring upon the need to establish larger and more integrated warehousing operations and end to end solutions. These, in turn, will require more advanced IT solutions, larger and enhanced infrastructure along with better trained staff – both blue and white collar. Current supply chain structures in India are engineered to harness fiscal benefits arising from difference in tax structures across regions. A single unified tax for both “goods” and “services” with the objective of eliminating tax cascades, will bring about a transition from the existing origin-based to a destination-based taxation regime. India’s warehousing infrastructure both qualitatively and quantitatively is highly inadequate. Going forward, how do you foresee the scenario evolving? How can private participation assist? The warehousing infrastructure in our country has been based on the tax structure, with different states having multiple taxes, leading companies to set up their production base according to this. With the impending introduction of GST there will be a marked change in the warehousing industry. It will be possible to operate large scale shared facilities with multiple users which will set the platform for consolidation in the post GST scenario. GST will make large regional warehouses economically viable as opposed to the multiple small ones set up to deal with the current tax structure. DHL Supply Chain is in fact, well ahead of the curve; we have already invested in large MultiClient Sites (MCS) in five metros, and are in the process of Project Vendor March 2015

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Interface

Introduction of GST will bring a change in the warehousing industry. completing construction in three more cities. These offer a wide range of additional services that improve the performance of a customer’s supply chain. From sub-assembly, co-packing, customization, postponement, kitting, sequencing to pre-retail activities across all industry sectors, DHL MCS solutions will help businesses lower-costs, reduce inventories, and suitably match supply with demand. With the government’s focus on its ‘Make in India’ campaign, there will be increased requirement for industrial projects transportation. Comment.

Project Vendor March 2015

With the objective of increasing the share of manufacturing in the GDP of the country, the government has planned to develop smart sustainable cities, logistics hubs and residential townships. This will undoubtedly give an impetus to industrial projects transportation which will play a significant role in helping to create a sound infrastructure to support the economic base. What is DHL Supply Chain’s future business strategy in India? Going forward, does the company intend to focus on any specific business segments? DHL Supply Chain is creating specific competencies in its focus sectors, which include Life Sciences & Healthcare, Automotive, Consumer, Retail, Energy and Technology to add value to our customers’ end to end supply chains. We have invested in large MCS facilities and in increasing the number of our long-haul highcarrying capacity transport vehicles, which will place us in a good position to enhance the quality of our existing customer service with faster delivery and maximum reliability. Additionally, we realise that IT plays a very significant role in providing market leading innovative solutions. We offer end to end IT integration through world class WMS, TMS, Track-n-Trace, e-PODs etc which provide safe and compliant solutions and help companies improve productivity and reduce costs. Last, but not least, we invest significantly in the development of our employees to ensure they are imparted with a consistent and standardized training so that we successfully differentiate ourselves from our competitors.

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16-18] Interface - Areef Patel - Patel Logistics.qxp

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Patel Integrated Logistics Ltd is a leading India-based logistics company which operates through the following business divisions: Patel Roadways, Patel Retail, POBC and Patel Airfreight Domestic and POBC and Patel Airfreight International. Areef Patel, Vice-Chairman - Patel Integrated Logistics told Sandeep Menezes that better transport infrastructure will cut down operating costs which in turn will reduce costs of production as well as the prices of commodities in the market.

Interface

GST is critical for logistical players What is PILâ&#x20AC;&#x2122;s future business strategy in the warehousing and logistics segment? Going forward does PIL intend to expand services especially its warehousing capacities? In coming 4-5 years there is going to be a tremendous rise in demand of goods and a considerable chunk of the same could emerge from E-Commerce. Warehousing is going to play a vital role. For us, warehousing will be a key driver of growth too. Demand will be on the higher side from the Tier 2 & Tier 3 cities. Delivery of goods has to be time-bound which is possible only with adequate storage capacity with modern amenities and technology at a suitable location. In view of this, we have come up Private players will invest heavily in warehouses. with E-commerce division. To support this, we are planning new warehouses in Delhi and Mumbai. We already have warehouses in Chennai and Bangalore. However, the rollout of GST will be a determining factor for supply chain management in the country. We are also waiting for it to decide on future strategies in warehousing sector. But, we are firmly on track 16

Project Vendor March 2015

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Interface

Setting up warehouses will decrease cost of operation and can give competitive advantage to companies. of expansion, by opening more units in several states. We have added 200 new offices in the southern part of India in the recent months, taking the overall number of offices to nearly 800. That makes us the only domestic player with such wider network on the ground. Tell us the main reasons for PIL reporting Top-line growth of 6.5% while improving margins to 4%? Overall, the past two quarters have been very good. If you compare the results of the last quarter ending December 31, 2014 with that of the previous year, the top line growth is 11.25 per cent. Profit before Tax has increased by 237.43 per cent, showing an increase of 3.81 crore, compared to the previous year. PAT has increased by 218.31 per cent on year-on-year basis to touch `3.65 crore. One main reason was the cut in diesel prices, as in the case with other logistic players. But we also took concrete steps to focus on businesses that can give a healthy bottom line. One of them was ecommerce and we tied up with Amazon to be their preferred partner for express delivery of goods. Besides, there was a concentrated effort to cut the costs in operations and improve operational efficiency. The company has right sized itself and has started reaping the benefits of an integrated back office.

India spend around 13% of its GDP on logistics.This is higher than USA (10%) Europe (11) Japan (10) Inefficient practices have inflated the industry size. How can we improve supply chain efficiencies? In India, only 20 per cent of the sector is organized. There are a plenty to be set right in the unorganised sector and this is one side of the problem. This will improve organically as order will set in gradually. As the sector becomes organised, the best global practices would be adopted to improve the efficiency. There are plenty of grey areas externally too. There should be uniform rules and regulations pertaining to transportation. One cannot wait for 4-5 days for delivery from one state to another and the main barricade in this regards is the clearance and toll booths. The infrastructure is the other reason. GST and transport policies are the current two expected mechanisms which will bring a huge difference to the entire supply chain system in the country. Government is focused on its make in India campaign. Do you feel that transportation infrastructure will be crucial if manufacturing costs are to be reduced? Infrastructure is the backbone of any economy, as we know. Likewise, the transportation infrastructure is spine for manufacturing economy. Project Vendor March 2015

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Interface

The country needs high capacity warehouses and modern technology. How can we develop manufacturing hubs without having good roads? If the campaign needs to be meaningful, the government has to drastically improve the infrastructure system. Almost 70 per cent of the cost incurred by a logistic company is in its transportation. Better transport infrastructure will obviously cut down the operating costs which in turn will reduce the costs of production as well as the prices of commodities in the market. Like `Skill India”, the government has to plan a `Infrastructure India” campaign before pushing `Make in India.’

“Delivery of goods has to be time-bound which is possible only with adequate storage capacity with modern amenities and technology at a suitable location.”

With the government renewed push towards GST implementation tell us about the expectations from the logistics industry? How will GST implementation influence the logistics industry and PIL in particular? Implementation of GST is not as simple as it looks. If implemented, that is going to take away lots of our headaches, even if it does not improve our bottom line in the short term. First thing is that we will save our precious time now wasted along the check-posts. I don’t have any problems in paying tax but the time wasted for understanding, reworking and settling them is not accepted. Almost 65 per cent of the freight moves through road and hence GST is critical for logistical players. It will definitely cut down the operating costs. In our case, apart from cutting down operating costs, GST will also guide our strategies in warehousing sector as I explained above. The unorganized sector in the logistics industry too will benefit with the implementation of GST as it will open up new opportunities for the unorganized players to do business. The organized sectors can definitely hope to cash in, as I feel, this will go down as one of the biggest reforms in the history. 18

Project Vendor March 2015

Shipping and road transport minister Nitin Gadkari recently announced that the central government was working on a new multimodal transport policy. Do you have any suggestions? Yes this policy is a refreshing change – which is welcome. However there is a need for implementation of the policy and it needs to be ensured and that is the key issue. Many such schemes have been discussed before however there must be commitment & time frames duly defined & implemented.

Currently India faces a need for at-least another 123 million tonnes of warehousing including cold storage capacities. How can this huge shortfall be met? Tell us about the role of private participation in this initiative? Country needs not only warehouses of high capacity but it should also have modern technology to make it effective. Government spending on infrastructure is going to rise tremendously in the next 3-4 years. I cannot see a 7 % growth with the existing infrastructure. Warehouses are needed considering the expansion India is going to witness mainly in the rural areas and in Tier 2& 3 cities. India doesn’t have good cold storage warehouses. Business is going to increase and when you deal with different regions of the globe the requirements will also equally increase. To cater to such requirements one should have such services like cold storage, bonded warehouses, etc. Private players will have a huge role to play as it is will turn out to be one of the revenue models for companies. Private players will invest heavily in warehouses and probably rent it for other players who are more into business which requires such an arrangement. Setting up warehouses will marginally decrease the cost of operation and can give a competitive advantage to companies. Many of the Large Etailing firms have started setting up their own warehouses for their business needs.

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As part of the Avvashya Group, Allcargo Logistics is an integrated logistics multinational, headquartered in India. Allcargo is one of India’s largest logistics companies in the private sector which operates across 90 plus countries through 200 plus offices globally. Its services comprise global Multimodal Transport Operations (NVOCC, LCL & FCL), pan India CFS/ICD operations, Project and Engineering Solutions (Project Logistics & Equipment Hiring Solutions), Ship Owning & Chartering and Contract Logistics services. Adarsh Hegde, Executive Director, Allcargo Logistics Limited told Sandeep Menezes that integration of a multi-modal transportation system will make India more reachable, accessible, affordable and productive.

Interface

Multimodal transportation policy needs to address infra requirements Around 80 per cent of Allcargo’s revenues are from the multimodal transport operations or MTO. Going forward, how do you foresee the MTO segment evolving nationwide? Across each business we have seen growth in volumes and profits. In MTO, our volumes have grown 17 per cent year-on-year while in CFS a growth of 10 per cent year-on-year. In P&E business as well, revenues and profits have grown and we are seeing a pick up in order execution, improved asset utilization and increased enquires on ground. From an industry perspective MTO will be a major segment for global trade as well as trade from and to India. With India’s economy expected to perform above 6 per cent growth rate, MRO will benefit immensely from the faster pace of economic growth. 20

Project Vendor March 2015

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There were recent reports about the Railways finalizing an integrated multi-modal transportations system. How will this impact the segment? Indiaâ&#x20AC;&#x2122;s economy is very unique in terms of its demographic spread, cities and towns which are growing as well as consumption markers which are wide spread across the country. Thus to truly leverage the opportunity of growth and benefit from policies and infrastructure India needs integration of not only infrastructure but also collaboration between entities such as roads, rail, ports, state, center, public and private players. This is the only way we can unlock the huge market we also talk about. Thus integration of a multimodal transportation system will make India more reachable, accessible, affordable and productive. This in turn will benefit every segment of the logistics industry to serve new business opportunities including MTO, CFS, Coastal Shipping and others. Shipping and Road Transport Minister, Nitin Gadkari recently announced that the central government was working on a new multimodal transport policy. Do you have any suggestions? The policy needs to be inclusive of suggestions from both private as well as public stakeholders. Multimodal Transportation policy needs to address the infrastructure requirements especially connectivity of roads and rail to our existing and new ports. Entry and exit of EXIM cargo from ports across India if provided with seamless road, rail & coastal shipping connectivity, will tremendously reduce Indiaâ&#x20AC;&#x2122;s cost of doing business parameter, thus making our economy more efficient and cost competitive.

Project Vendor March 2015

What is the current size of project logistics industry in India? Tell us about the estimated future growth scenario of the industry? With renewed focus on make in India, attracting global investment into India and infrastructure development, the growth of project logistics business was never more positive. From its single digit it has the potential to grow into double digits. The current size is limited to investment in mega large projects and movements. As the economy picks up into a faster gear the potential of the industry is a multibillion dollar opportunity in coming years. Currently India faces a need for at least another 123 million tonnes of warehousing (including cold storage capacities) capacity. How can this huge shortfall be met? Tell us about the role of private participation in this initiative? This challenge in very unique to India given our demographic spread and clusters growth. Thus is also the biggest opportunity. With more seamless taxation regime, more coordination between state and center for economic growth, the need for professional warehousing will also increase exponentially. The way to capitalize on the opportunity is to work on a PPP basis wherein public as well as private players come together to establish the foundations of the industry. Also technology and innovation of infrastructure will also play a bigger role, as it will reduce the dependency on financial requirements and optimize investments. Private enterprises with adequate support from government in terms of tax sops, investment assistance and single window clearance can meet this requirement faster than government, given its shorter decision making window.

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Siddhi Vinayak Logistics Limited (SVLL) is one of Indiaâ&#x20AC;&#x2122;s most rapidly growing companies in the road transportation sector. Currently SVLL has loading points in the states of Gujarat, Maharashtra, Rajasthan, Karnataka, Uttarakhand and Himachal Pradesh providing a comprehensive network and easy access. Deepak Baid, Director â&#x20AC;&#x201C; Siddhi Vinayak Logistic Ltd stated that the introduction of GST will be a boon for the logistics and transportation industry as it will cut down cost in both logistics and warehousing sectors.

Interface

Indian Logistic Sector is estimated to be worth $385 billion in 2015 India spends around 13% of its GDP on logistics; this is higher than USA (10%), Europe (11%) and Japan (10%). Inefficient practices have inflated the industry size, how can we improve supply chain efficiencies? Logistics industry in India, formed by a majority of small players is highly fragmented which in turn creeps in inefficiencies in the overall supply chain. Countries such as USA and Japan have lower marginal GDP spent on logistics owing to the fact that even smaller businesses in these countries are able to optimize their SCM with the latest market trends. Some tools and techniques that can improve Indian SCM are: Making use of Cloud Based IT Systems for operational efficiencies Choosing ERP application that fits with existing systems Tailor made solutions for customers based on segments Informing sharing and regular analysis of data from multiple sources Introducing driver centric programmes to build loyalty and improve performance 24

Project Vendor March 2015

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Interface

Logistics industry is highly fragmented which leads to inefficiencies in supply chain. Shipping and Road Transport Minister, Nitin Gadkari recently announced that the central government was working on a new multimodal transport policy. Do you have any suggestions? The new policy if implemented effectively can certainly boost the country’s infrastructure and institutional structure for multimodal transport. There are end numbers of bottlenecks that can prevent this policy implantation to keep up with its timeline. Uniform policy framework across ministries can help as well investment from private sectors. What is the current size of project logistics industry in India? Tell us about the estimated future growth scenario of the industry? The Indian Logistic Sector is estimated to be worth $385 billion in 2015 as reported by the experts. In the first quarter of 2014, the Indian logistics industry was said to be worth $100 billion and currently it is expected to grow by 15-20 per cent. This growth rate is also expected to pave way to a lot of job opportunities in the sector. Currently India faces a need for at least another 123 million tonnes of warehousing (including cold storage capacities) capacity. How can this huge shortfall be met? Tell us about the role of private participation in this initiative?

Indian logistics industry is expected to grow by 15-20 per cent.

The warehousing sector in India forms 20 per cent of the logistics market but continues facing challenges in the form of inadequate skilled labour, lack of infrastructure, lack of funds etc. The shortfall can be met by the government investing in the infrastructure development projects, changing regulatory setup, increasing transparency in policies and relaxing tax structures. Privatization will aid to cope with the challenges in this industry. It will enable to acquire expertise in warehousing technologies, well trained manpower, a well equipped infrastructure, improved standardization, clear tax regimes and land availability thereby contributing in transition of vertical sector in to an organized sector. How will the introduction of GST impact the logistics industry and SVLL in particular ? Introduction of GST will be a boon for the logistics and transportation industry as it will cut down cost in both logistics and warehousing sectors. Levitation of taxes at a national level instead of individual states will cut down on logistics cost and increase cross border transportation. GST will definitely prove advantageous SVLL and other transport players that have PAN India offices in the form of streamlining paperwork, avoiding freight delays and stoppages and boosting operational efficiencies. What is SVLL’s future growth strategy? Going forward, does SVLL intend to increase focus on any specific business segment? Looking ahead, we’re planning to add more number to our current fleet of 7965 vehicles, in order to meet with increased customer demand. Attention to detail, adopting customized vehicles as per customer requirement, 100 per cent dedication to our customers and CSR initiatives for our truck drivers are the factors that lays the foundation of success at SVLL and it will continue being our future growth drivers. Project Vendor March 2015

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Update

Adani Ports commissions Tuna Tekra bulk terminal

dani Ports & Special Economic Zone Ltd (APSEZ), India’s largest port developer and part of Adani Group, a global integrated player has commissioned a bulk terminal at Tuna Tekra, Kanda Port, with an annual handling capacity of over 20 million tonnes, further consolidating its leadership one position on the west coast of India. Nitin Gadkari, Minister for Shipping, Road Transport and Highways inaugurated the terminal after the berthing of the project’s first vessel MV Sheng Ming earlier in the day. “The Tuna Tekra terminal is yet another feather in the Adani cap. We expect the terminal to be a game-changer for Export Import trade of the Northwest hinterland of

India, thanks to its strategic location. Add to it Adani Group’s infrastructural prowess, speed of execution and operational efficiencies,” said Karan Adani, Executive Director, APSEZ. “It is a proud moment for us at Adani as we commission the Tuna Tekra dry bulk terminal. The port facility is our fourth in Gujarat and fifth on the entire western coast. Its commissioning marks the further consolidation of our leadership in the port infrastructure sector in India. This new facility will play a crucial role in the Make In India campaign. We are now aiming to complete the container terminal project in Chennai in a record time frame,” said Sudipta Bhattacharya, CEO, APSEZ. The consortium led by APSEZ, formed a SPV named Adani Kandla Bulk Terminal Pvt. Ltd (AKBTPL) after winning the contract in June 2012 to set up the bulk terminal. The terminal was completed within the stipulated time frame. The dry bulk cargo handling terminal facilities includes a T shaped jetty with four bulk berths, a vessel handling capacity of 1,00,000 DWT with (-) 16.2 m CD dredged depth and a capacity of 20 MMTPA. The project is expected to benefit the states of Gujarat, Rajasthan, Haryana, Punjab and Madhya Pradesh amongst others. It is connected to the National Highway grid through NH-8A coming from Ahmedabad via Wankaner, Morbi and terminates at the Kandla Port. APSEZ also operates ports in Mundra, Hazira and Dahej, in Gujarat, Dhamra in Odisha and operates specialized coal handling facilities in Mormugao in Goa, Visakhapatinam in Andhra Pradesh. It is currently setting up a container terminal in Tuticorin, Chennai.

Gulf Petrochem commissions 1st phase of its liquid storage terminal

Elecon launches twin screw extruder gear box

PV News Bureau

ulf Petrochem Group has commissioned the first phase of its liquid cargo storage terminal with an annual capacity of 250,000 kilo litres (KL) at Pipavav Port in Gujarat, thus easing supply and availability of petroleum, non petroleum and petrochemical cargo in the northern part of India. The first phase of the terminal has a capacity of 110,000 KL and the second phase with a capacity of 140,000 KL will be commissioned by mid-March 2015. “The location of our terminal offers a strategic and logistical advantage to our customers in the North Western markets. This project stands as a stepping stone for the terminal storage sector within the Indian market, further consolidating our plans for India and also our future investments, further strengthening Gulf Petrochem’s position as a leading player in the global oil space” said, Mr. Manan Goel, Director, Gulf Petrochem. Gulf Petrochem’s oil terminal in Pipavav port is a modern asset with state of the art facilities adhering to all International and Indian safety guidelines.

lecon Engineering Company Limited, one of the largest Asian manufacturers of industrial gear systems launched its new gear for the plastic industry. The ETS Series Twin Screw Extruder Gear Box which offers dual shaft counter-rotating extruder drive. The addition of this gear strengthens the product portfolio of Elecon in its quest to remain ‘Gearing the Future’. “We’re proud to introduce a unique and efficient product for the plastic industry. The additional to the special gears that we’re known to manufacture this is one of the stepping stone to our portfolio of products. Elecon is confident about the efficiency that it will bring to the progress of the sector,” said Vilas B Kalyankar, Chief Executive Officer - Elecon Engineering. ETS Series Twin Screw Extruder Gear Box is developed by featuring high torque and high speed output rate. The gearboxes are embedded with excellence high dissipation and oil lubrication system to provide stable output under heavy loading force. The axial thrust is supported by axial roller-type swivel thrust bearing coupled with thrust bearing assembled in tandem way. Engineered to deliver superior results, Elecon’s range of special gears for the plastic industry is a step ahead in when it comes to operational efficiency.

Project Vendor March 2015

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Shreyas Shipping and Logistics Limited is the ship owning and operating unit of Transworld Group in the Indian subcontinent. The company is Indiaâ&#x20AC;&#x2122;s first container feeder owning and operating company. Currently it owns and operates a fleet of six vessels trading on the Indian coast. It also provides crucial links between Indian ports which helps in providing door to door logistics solutions through its logistics arm and assists transshipment of cargo from these ports. Ramesh S. Ramakrishnan, Chairman & Managing Director - Shreyas Shipping and Logistics told Sandeep Menezes that vessel sharing agreements are a good thing since it will help operators to remain in better health.

Interface

Funding is expensive in India for operators and ship owners What are the main challenges facing the Indian shipping sector? How can these challenges be mitigated? I think today we have issues such as taxes on the wages of people working onboard Indian ships. There are also various infrastructural bottlenecks that exist. These challenges for Indian ships and ports have been there since long period of time. But now I feel that it is being heard by the government and ministers. Funding is very expensive in India for operators and ship owners. The costs of funds in India are comparatively much higher than what it is in the global markets. These are all issues which if the government understands and put solutions into practice will change the face of the Indian shipping industry. It has been a difficult time for the shipping industry, especially on the dry bulk sector. Tanker market has been okay, but dry bulk has been a big disappointment. Going forward, how do you foresee the scenario? I feel that it is a question of too much supply. There is growth in the trade but that growth is not enough to cover the quantum of supply in the market. I feel that it will take another year or two before things actually 28

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Interface

Share of Indian ships in the carriage of the country’s overseas seaborne trade has been declining. settle down and start to go up. But currently the dry bulk market is at its lowest point. India may continue to exempt vessel sharing agreements among shipping companies from the purview of fair trade watchdog CCI. Comment. It is actually a good thing because at the end of the day it is not the revenue that makes a big difference but how one can share the costs. Therefore all these vessel sharing agreements will definitely help the operators to remain in better health. Overall share of Indian ships in the carriage of the country’s overseas seaborne trade has been declining over the years. From about 31.5 per cent at the turn of the 20th century, it has shrunk to around 10.9 per cent in just over a decade. Comment. The maritime industry is the second line of defense. Until the

government takes a very conscious decision and believes that this industry is important for the nation’s safety and security – it will remain in similar scenario wherein the tonnage is not going to grow to the extent that the government wants. There remain issues such as funding and extent of understanding of this industry. If the government wants to see this industry grow then they have to take a decision on how they are willing to support the industry. Till then the industry will grow but we will not have a great share of EXIM trade with us. There exists an acute shortage of skilled seafarers across the Indian shipping industry. Tell us about the extent of shortage facing the industry? There is a direct connection to the extent of supply. Lot of countries are doing everything to enhance the numbers – but it all takes time. Shreyas Shipping witnessed total income rise by 18.37% QOQ. Tell us about the key reasons? The key reason is that we have increased the size of our assets, increased our trade reach while ensuring better utilization of assets both in terms of percentage of cargo that we carry. All this has been possible because of the network that we have built over the last 25 years that we have been in this business. Now that we are using our assets better hence the topline and bottomline are better. Going forward, tell us about the capex plans of Shreyas Shipping? We have plans to acquire further vessels and are closely looking at it. We do think that we have to enhance the number of vessels that we have in our fleet but are going to implement it very cautiously. Project Vendor March 2015

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Lead Story

Warehousing sector is expected to witness colossal investments aided by the government’s push towards increasing local manufacturing. Sandeep Menezes looks at the huge challenges to be faced while turning around India’s antiquated warehousing infrastructure in support of local manufacturing.

ince Independence, there has been lack of sustained investment in the warehousing sector. Besides, most of the existing warehousing capacities available in the country are of poor quality, small, fragmented and do not meet requisite infrastructure standards. The government aims to spur local manufacturing activity through its ‘Make in India’ campaign. But local manufacturing cannot succeed till the logistics link is strengthened. This is where warehousing can play a vital role. CURRENT SCENARIO According to a recent Ernst & Young report warehousing accounts for around 5 per cent of the Indian logistics market (excluding inventory carrying costs, which amount to another 30 per cent). The size of the Indian warehousing industry (across commodities and modes) is pegged at about `560 billion (excluding inventory carrying costs, which amount to another `4,340 billion). The industry is growing at over 10 per cent annually. Areef Patel, Vice-Chairman - Patel Integrated Logistics explained that the country needs not only warehouses of high capacity but it should also have modern technology to make it effective. Government spending on infrastructure is going to rise tremendously in the next 3-4 years. The 7 per cent growth cannot happen with existing

Manufacturing needs

sound warehousing 30

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Manufacturing needs

sound warehousing 30

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Lead Story

India’s warehousing infrastructure is currently of poor quality, small, fragmented and low standards.

infrastructure. Warehouses are needed considering the expansion India is going to witness mainly in the rural areas and in Tier-2 & Tier-3 cities. India doesn’t have a good cold storage warehouses. Business is going to increase and when you deal with different regions of the globe the requirements will also equally increase. To cater to such requirements one should have such services like cold storage, bonded warehouses, etc. UNORGANISED MARKET PREVENTS UPGRADATION The warehousing industry is dominated by unorganized players, accounting for ~85 per cent of the market. Modern warehousing (organized players) accounts for only 15 per cent share; although, this segment is growing at a CAGR of 25 per cent–30 per cent, the Ernst & Young report mentions. Due to the domination of small unorganized players the required capital inflow has not been possible in recent

decades. This has resulted in a grim situation wherein about 80 per cent handling and warehousing facilities are not mechanized and involve traditional manual methods for loading and unloading. However, the warehouses which are mechanized have just forklifts or hydraulic hand pallet trucks. These numbers clearly indicate that there is an acute shortage of organized and good quality warehousing and storage infrastructure in the country, for both, agricultural and industrial commodities. CHALLENGES IMPEDE UPGRADATION & GROWTH Warehousing is a capital intensive sector and without availing finance from banks and other financial institutions, warehousing facilities cannot be created by the entrepreneurs. Besides, land requirements for construction of the warehouses are difficult to meet nowadays due to high cost of land. Although 100 per cent FDI and some benefits are allowed for the warehousing

Challenges facing Warehousing industry include: Warehousing is a capital intensive sector and without availing finance from banks and financial institutions at cheaper interest rate, warehousing facilities cannot be created by the entrepreneur. Besides, land requirements for constructing the warehouse are difficult to meet due to rising cost of land in urban, semi urban and rural areas. Procedures for conversion of agriculture land for industrial or commercial use are cumbersome and difficult. Warehousing has not been accorded the status of full-fledged infrastructure and all financial and other benefits available to infrastructure sector are not available for warehousing sector. Storage charges and other handling charges offered by the Government agencies to private warehouse operators are not attractive. There is acute shortage of trained manpower in warehousing sector. Modern technology was not introduced in the warehousing sector.

Burgeoning manufacturing activity to boost warehousing sector.

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sector, there has been moderate growth in the private warehousing sector. Warehousing has not been accorded the status of fullfledged infrastructure and all financial and other benefits available to infrastructure sector are not available for warehousing sector. Till recently modern technology was not introduced in the warehousing sector. Deepak Baid, Director – Siddhi Vinayak Logistics Ltd stated that the warehousing sector in India forms 20 per cent of the logistics market but continues facing challenges in the form of inadequate skilled labour, lack of infrastructure, lack of funds etc. The shortfall can be met by the government investing in the infrastructure development projects, changing regulatory setup, increasing transparency in policies and relaxing tax structures. Adarsh Hegde, Executive Director, Allcargo Logistics Ltd predicted that with more seamless taxation regime, more coordination between state and Centre for economic growth, the need for professional warehousing will also increase exponentially. The way to capitalize on the opportunity is to work on a PPP basis wherein public as well as private players come together to establish the foundations of the industry. Also technology and innovation of infrastructure will also play a bigger role, as it will reduce the dependency on financial requirements and optimize investments. Private enterprises with adequate support from government in terms of tax sops, investment assistance and single window clearance can meet this requirement faster than government, given its shorter decision making window. GST TO BRING CHANGE After a long wait, the new government has stated that GST will be finally implemented next fiscal. This is a huge move that will benefit that Indian economy, although many months and lot of issues remain that still have to be streamlined. Vikas Anand, Managing Director - DHL Supply Chain India Pvt. Ltd stated that the warehousing infrastructure in our country has been based on the tax structure, with different states having multiple taxes, leading companies to set up their production base according to this. With the impending introduction of GST there will be a marked change in the warehousing industry.

RIGHT OF VIEW

“With more seamless taxation regime, more coordination between state and center for economic growth, the need for professional warehousing will also increase exponentially.” — Adarsh Hegde, Executive Director, Allcargo Logistics Limited

“The warehousing sector in India forms 20 per cent of the logistics market but continues facing challenges in the form of inadequate skilled labour, lack of infrastructure, lack of funds etc.” Deepak Baid, Director, —D Siddhi Vinayak Logistic Ltd

“Warehouses are needed considering the expansion India is going to witness mainly in the rural areas and in Tier 2& 3 cities.” Areef Patel, Vice-Chairman, —A Patel Integrated Logistics Ltd

“GST will make large regional warehouses economically viable as opposed to the multiple small ones set up to deal with the current tax structure.” —VVikas Anand, Managing Director, DHL Supply Chain India Pvt. Ltd Warehousing is a capital intensive sector Project Vendor March 2015

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Land requirements for construction of warehouses are difficult.

It will be possible to operate large scale shared facilities with multiple users which will set the platform for consolidation in the post GST scenario. GST will make large regional warehouses economically viable as opposed to the multiple small ones set up to deal with the current tax structure, Vikas Anand added. PRIVATE PARTICIPATION Unfortunately, even the private sector initiatives till recently were small and sporadic in this vital sector. The main reason for lack of private participation until recently could be due to inadequate returns on investment in this capital intensive segment. Also the policy framework did not support growth of warehousing segment while not providing adequate incentives to prospective private participants. But now that the government intends to spur local manufacturing, the need for adequate and top-notch warehousing infrastructure will have to be met by private participants to support their manufacturing ambitions. Private players will have a huge role to play as it will turn out to be one of the revenue models for companies. Private players will invest heavily in warehouses and probably rent it for other players who are more into business which requires such an arrangement. Setting up warehouses will marginally decrease the cost of operation and can give a competitive advantage to companies. Many of the Large E-tailing firms have started setting up their own warehouses for their business needs, Areef Patel added. 34

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Deepak Baid felt that privatization will aid to cope with the challenges in this industry. It will enable to acquire expertise in warehousing technologies, well trained manpower, a well equipped infrastructure, improved standardization, clear tax regimes and land availability thereby contributing in transition of vertical sector in to an organized sector. GROWTH DRIVERS Growth in warehousing across India will primarily be driven by the burgeoning manufacturing activity, increasing international trade and the emergence of organised retail in the country. Increasing private and foreign investments in infrastructure and easing government regulations shall further bolster the growth of the warehousing sector in India. Also, the policy reforms from government including the establishment of logistics parks in the PPP model, the implementation of the Warehousing and Development Act 2007 and serious attempts to roll out Goods & Services Tax (GST) are added reasons for the expected expansion in the warehousing sector. CONCLUSION India can emerge as a manufacturing hub only if it modernizes and expands its warehousing infrastructure. With proper warehousing infrastructure, India can decrease manufacturing costs while saving on time and improving quality thereby making its products more competitive globally.

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Expertspeak PROMOTING BI-LATERAL TRADE RELATIONS ajority of India’s foreign trade is conducted by sea leading to a rise in cargo traffic. According to the Indian Brand Equity Foundation, cargo traffic is expected to reach 1,758 MMT by 2017 as against 976 million metric tonnes (MMT) in 2012. The export items vary from petroleum refined products, engineering goods, chemical and pharmaceutical products, textiles to clothing. These goods are shipped across the world, including the Americas, Europe and Asia. Foreseeing the potential that the Indian industry has, manufacturers need to have economical and efficient routes to their markets across the globe. In addition; initiatives and policies launched by the new government will further propel growth in the sector by providing jobs and attracting investment for India. Examples of such initiatives include the emphasis laid on port and infrastructure like the ambitious “Sagar Mala” project. However, the increase in volume is quickly becoming inadequate thus giving rise to needs in both port and infrastructure growth. Certain urgent steps taken to relieve road and quay side congestion as well as berthing delays would be welcomed by the trade. The biggest challenge, though, remains on improving the hinterland connectivity. While the number of containers handled at major ports has significantly increased, moving cargo from its origin to the export hub economically, safely and reliably still remains a hindrance. All of this has the effect of making the cost

Up scaling port infrastructure through foreign participation Ravindra Gandhi reflects on the importance of container shipping to India’s international trade and economy, considering ways in which foreign participation might help drive modernisation that is required for the country’s supply chain. 36

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Number of containers handled at major ports has increased.

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Expertspeak

Sharing experiences from ports of developed countries can assist Indian ports. of container shipping in India more expensive. With a view to address this concern, the Union Minister of Road Transport and Highways Nitin Gadkari would look to introduce the Inland Waterways Bill to convert 110 Indian rivers into transport channels during the forthcoming Parliament session. Short-sea shipping has a role to play but, ultimately, cargo has to move inland via road, rail or alternate waterways. DEVELOPING AND FINANCING PORT INFRASTRUCTURE Expanding and modernising ports is a priority in supporting the government’s economic plans to ensure they are part of an integrated, efficient supply chain, and not just a gateway. The Indian ports sector also received FDI worth US$ 1,637.30 million in the period April 2000–November 2014 as per the Department of Industrial Policy and Promotion (DIPP). The government is supportive of further investment, in keeping with its general policy towards modernising the economy. The government’s recent announcement of 100 per cent FDI for projects related to the construction and maintenance of ports and harbours is being allowed under the automatic route. It has also granted a 10-year tax holiday to enterprises engaged in the business of developing, maintaining and operating ports, inland waterways and inland ports. ENCOURAGING THE PUBLIC PRIVATE PARTNERSHIP (PPP) MODEL This investment, through public and private partnerships, ensures that Indian ports are competitive and offer reliable and high-performing routes to market. The participation of private companies brings various benefits: 1. Operator’s use their experience of working at different ports and in diverse markets across the world to bring a competitive edge to productivity and performance.

2. It also drives the introduction of the latest technology and infrastructure, and management techniques required to get the best out of these facilities. Jawaharlal Nehru Port Trust container port at Nhava Sheva, Mumbai is an example of how foreign investment and public-private partnerships can work together to benefit India’s economy. The port currently has three container terminals, operated by the Trust itself, and two major international companies, DP World and APM. With business flourishing, the port has recently extended one of its quays and is planning to build a fourth container terminal. All this will be supported by existing logistics facilities and a proposed special economic area offering warehousing, office space, and better inter modal connectivity. The extended quay is being fitted out with new ship-to-shore cranes manufactured by the world’s leading company in this sector, and that is just one example of how the port is investing in first-class facilities. The work is partly funded and guided by the resources and expertise of the private sector. It is examples of how such partnerships can be leveraged to enhance the quality and productivity of Indian port infrastructure. LEVERAGING BEST PRACTICES Sharing experiences from the ports of developed countries can greatly assist in taking Indian ports to the next level. TO CONCLUDE Public private partnerships are an important determinant to upscale Indian ports. Port development authorities should cohesively work with the government, by applying a similar approach; to holistically develop supply chain infrastructure in the country. (The author is the India Territory Director for the UK’s Peel Ports Group, which is developing a new container terminal that will help Indian exporters achieve a more direct route to market.) Project Vendor March 2015

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Special Report LIQUID BULK HANDLING & STORAGE

Paving the way for India’s Chemical & Energy Needs Liquid bulk constitutes 40% of overall Indian ports traffic and only 18% of berths are dedicated for them. This indicates inadequate port infrastructure leading to higher vessel turnaround time. Liquid bulk volumes are expected to increase with accelerating economic growth and government’s thrust on domestic manufacturing, thereby creating greater opportunities for handling & storage operations. It is estimated that diversion of 5% of overall cargo transportation to water mode can result in annual savings of INR 2,500 crore with liquid bulk transportation constituting 20% of savings. In order to realize the true potential of the future opportunities, there is a need for augmenting port capacities, infrastructure upgradation and supportive regulatory policies say Manish Panchal, Siddharth Paradkar and Pulkit Agarwal of TATA Strategic Management Group. GROWTH IN LIQUID BULK TRADE Liquid Bulk Industry comprises of crude oil, LNG, POL products, bulk chemicals & petrochemicals and vegetable oil. Bulk liquids are raw materials and intermediaries for several downstream sectors like automotive, textiles, consumer durables, personal care, food production and energy. The Indian liquid bulk trade is dominated by crude oil and POL products. Imports of bulk liquids have grown at 6.9% per annum over the last five years to reach 244.7 Mn. M.T. in FY14. During the same period, exports have grown at 11.4% per annum to reach 71.8 Mn. M.T. in FY14 (Refer Figure 1 for trade breakup). INDIAN PORT INDUSTRY OVERVIEW Indian ports sector consists of 13 major and about 200 non-major ports with major ports handling almost 55% of the country ’s trade by volume. The cargo traffic at Indian ports mainly consists of liquid bulk, containers, coal and iron ore. Liquid bulk constitutes 40% of cargo handled at Indian ports (Refer Figure 2 for cargo breakup). Thus, liquid bulk plays a critical role in the growth of port industry. However, liquid bulk handling at ports is faced with a number of challenges which impact port and vessel operational performance. 38

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Special Report

CHALLENGES FACED IN LIQUID BULK HANDLING Indian Liquid Bulk Handling Industry is faced with a number of infrastructure and regulatory challenges. The key challenges are: Capacity constraints and lack of adequate infrastructure at Ports: Indian ports are faced with the challenge of above-optimum capacity utilization because of capacity mismatch and inadequate port infrastructure. Liquid bulk capacity utilization at Indian ports stands at 90-95%, this is much higher compared to international average of 70-75% which is considered to be ideal. While bulk liquids comprise 40% of cargo traffic, only 18% of berths are dedicated for handling them. This results in higher turnaround times and longer waiting period for berthing at ports. A comparison of Indian ports with global ports on key parameters such as draft depth, productivity and pipelines indicates inadequate focus and planning for liquid bulk handling infrastructure at ports. (Refer Table 1) Lack of multimodal connectivity: Despite a coastline of almost 7,500 Km (1.3 times that of Europe), coastal shipping handles only 7% of local freight as compared to 43% in European Union. However, majority of liquids are transported by roads in India. Like coastal shipping, the potential of Inland Water Transport (IWT) is yet to be fully harnessed. Similarly, there is inadequate stock of dedicated wagons for handling bulk chemicals. As a result, most of the liquid bulk is transported by road although it is not the safest or preferred transportation mode. Regulatory Issues: Regulatory

restrictions are also leading to an increase in overall turnaround time and decrease in productivity at Indian ports. The Coastal Regulation Zones (CRZ) notification by the Ministry of Environment and Forests limits setting up of liquid storage facilities at a waterfront. As a result, storage facilities have to be built outside CRZ zones, far away from shore. This adds to the investment in pipelines and increases total cost and time for operations. Similarly, Cabotage Law restricts use of foreign flag vessels along the coastal routes. This limits the use of coastal shipping which is more cost and energy efficient. WAY FORWARD Accelerating economic growth coupled with government’s thrust on domestic manufacturing through ‘Make In India’ campaign would result in rapid growth in end use sectors. This would lead to increase in demand for bulk liquids, drive conversion from containers to bulk and create opportunities for storage & handling of larger volumes and a wider product portfolio. In order to realize the potential of future opportunities, the following steps need to be taken to overcome the challenges faced in liquid bulk

handling: Port capacity expansion and infrastructure up-gradation: There is a need to augment capacity at current berths and build more berths for handling liquid cargoes with specialized handling equipment. This would reduce turnaround time and pre-berthing delays and increase hourly throughput. Draft at ports need to be increased to enable them to handle larger vessels. With Govt. impetus on infrastructure development, some capacity additions are expected over the next few years. This would ease port congestion and reduce operational load at ports (Refer Table 2 for announced capacity additions). However, a feasibility study for assessing the transformation and expansion opportunity at all operating ports is urgently required. Alternate transport modes: Conscious efforts should be made to shift transport load from roads to safer and economical modes like rail and water (Refer Table 3). Policies should be developed to avoid procedural delays in setting up rail infrastructure for liquid bulk transport. Dedicated wagons can be introduced to transport bulk liquid chemicals across the country over rail. Steps should be taken to promote the use of coastal shipping and inland waterways. It is estimated that diversion of 5% of overall cargo transportation to water mode can result in annual savings of INR 2,500 crore with liquid bulk transportation constituting 20% of savings. Additional Steps: Following additional steps can be taken by independent storage providers to promote industry growth: Industry Platforms: Liquid bulk handling industry should come

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Special Report About the authors Manish Panchal is the Practice Head for Chemicals, SCM and Logistics at TATA Strategic Management Group Email: manish.panchal@tsmg.com Phone: +91 98205 20303

together and highlight their cause and importance to Government bodies and concerned authorities. Unlike other industries, there is no exclusive association, council or a common industry platform for this industry. Developing such industry bodies would help raise industry concerns at appropriate levels. Focus on SHE Practices: A strong focus is required on SHE practices in handling and storage operations. Regular trainings should be undertaken to build awareness and inculcate discipline towards compliance of SHE practices. Implementation and adherence to SHE practices would help ports and storage

providers assuage environmental concerns. It would also help build confidence amongst global clients for usage of facilities at Indian ports. Outsourcing Opportunities: Oil Marketing Companies (OMCs) should be encouraged to outsource their storage and handling operations to independent third party operators. This would not only propel the liquid bulk handling industry growth but also help OMCs to focus on their core operations of refining and retailing, achieve operational efficiency, improved asset management and resource optimization.

UPDATE

Consul Neowatt launches Falcon range of Online UPS PV News Bureau onsul Neowatt Power Solutions Pvt Ltd recently unveiled the extended range of its Falcon range of online UPS for international markets at the prestigious Middle East Electricity show in Dubai. The Falcon range of online UPS from 10 â&#x20AC;&#x201C; 800 KVA has been designed for harsh power and site conditions found in India and other developing markets. Falcon UPS come with state of the art 32-bit Floating-Point DSP controller which can handle any load variations or input power quality issues at supersonic speeds in an efficient manner to provide clean, reliable and uninterrupted power to all critical applications even in harsh conditions. Consul is one of the few power electronic companies globally that has the capability to manufacture online UPS for capacities above 300KVA. It was the first company to manufacture a 600KVA IGBT based UPS in India and has the capability to manufacture UPS upto 800KVA. The USP of Falcon range of UPS is its modular design, speed due to the 32 bit DSP controller, user friendliness with a graphic display unit, self diagnosis, input PF of more than 0.99 ensures a green footprint, capability to handle regenerative loads, high levels of protection and next generation IGBT with advanced CANBUS protocol. The Falcon range of UPS has been designed and built by keeping in mind the customer at every step, right from the selection of components for long life and reliability, technology to ensure energy efficiency and savings, adaptability and flexibility to support critical loads in diverse applications like healthcare, data-centres, manufacturing or process industries. Its user friendly TFT based intuitive HMI along-with front only access slide out modules allows for easy serviceability.

Project Vendor March 2015

Siddharth Paradkar is the Principal for Logistics and Supply Chain at Tata Strategic Management Group Email: siddharth.paradkar@tsmg.com Phone: +91 98200 36527 Pulkit Agarwal is Associate Consultant at Tata Strategic Management Group Email: pulkit.agarwal@tsmg.com Phone: +91 75061 90224

Increase in liquid bulk volumes is expected to generate opportunities in bulk handling. However, infrastructural and hinterland connectivity challenges exist. Taking appropriate steps as mentioned, can help overcome challenges, eliminate bottlenecks and streamline handling operations. This would lead to cost effectiveness and increase port & vessel operational efficiency. _ ÂŠ Tata Strategic Management Group, 2015. No part of it may be circulated or reproduced for distribution without prior written approval from Tata Strategic Management Group. REFERENCES Port Websites (JNPT, Cochin, Ennore, Antwerp, Rotterdam) Chemicals and Petrochemicals Statistics at a glance: 2014, Ministry of Chemicals & Fertilizers, Govt. of India Indian Petroleum and Natural Gas Statistics: 2013-14, Ministry of Petroleum & Natural Gas, Govt. of India Directorate General of Foreign Trade Statistics Crisil Research Indian Maritime Week 2014 publication Business Press Reports Primary interactions conducted by Tata Strategic with industry experts

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Orders & Contracts are glad to receive orders from such clients as this indicates customers’ trust on our capabilities and expertise in Pre Engineered Buildings.

Siemens Limited

Sunil Hitech Engineers Limited Construction Sector: ` 90 crore. Sunil Hitech Engineers Limited (SHEL), a leading EPC company announced that company has bagged a ` 90 crore order from Kanpur Development Authority (KDA) for the construction and development work of houses in two different development areas of Kanpur. The company is expected to complete the execution of the work in around 18 months. This order further showcases the steps the company is taking to step up business in other Infrastructure verticals such as building construction, roads, renewable energy etc apart from power related work on the way to become an Infrastructure conglomerate.

Hitachi Lift India Elevator Order Hitachi Lift India Pvt. Ltd which is an elevator and escalator marketing and service company in India, announced that they have been awarded an order for 58 units of elevators from L&T Parel LLP for their premium residential project “Crescent bay” in Mumbai, India. The order 58 elevators includes 46 units of 4 m/sec high speed elevators, making it one of the largest high speed elevator orders of this type for Hitachi and 12 units of medium speed shuttle lifts which will be to cater for residents load from the parking area provided in each tower. These elevators will be equipped with advanced technology, such as earthquake operation functionality, which enables lifts to evacuate rapidly to the nearest floor when its sensors detect that the building is swaying as the result of an earthquake and regeneration system, which saves power during different load conditions.

Richa Industries Limited Warehousing Industry: Rs 260 million. Richa Industries Limited, a leading Construction & Engineering company has secured an order for its PEB division approximately worth INR 260 million from Bihar State Building Construction Corporation Ltd (BSBCCL) to construct Warehouses at different locations in the state of Bihar. The Project involves the construction of seven Warehouses with the capacity of 5000 MT each at the location of Bhagalpur, Munger, Lakhisarai, Sheikhpura, Jamui Begusarai and Khagaria. The complete scope of work entails Engineering Design, Fabrication, Shipment, Erection and Commissioning of the building. Richa has to complete the project in 10 months. Commenting on this, Dr. Sandeep Gupta, Joint Managing Director, Richa Industries Limited says, “We are happy to receive this order from Bihar State Building Construction Corporation Ltd., one of the reputed company of Bihar. After receiving the order from BSWC, this is the second order that Richa has acquired in Bihar for constructing Warehouses. We 42

Project Vendor March 2015

Transportation Industry: Rs 450 crore. The Mobility Division of Siemens Limited has won three orders worth approximately ` 450 crore from Varanasi-based Diesel Locomotive Works of Indian Railways for locomotive equipment. Siemens Limited will supply and supervise the installation and commissioning of Three- phase Propulsion Systems for Diesel Electric Locomotives - AC-AC traction systems (including Locomotive Controller) and Three-phase Traction Motors. The locally manufactured equipment have a proven track record of providing long-term cost efficiency and availability. Diesel Locomotives Works is a production unit of Indian Railways located at Varanasi and manufactures around 300 diesel electric locomotives every year. Siemens has been reliable partner of the Indian Railways for over 60 years and has been providing various solutions for safe and efficient rail transportation from its well established factories and extensive service network across the country.

Avantha Group Power Sector: $20 million Avantha Group Company CG has bagged an order from PT PLN for setting up a total of 36 transformer bays around Indonesia, valued at around USD 20 million. These 36 extension bays will comprise 2 lots – the Java and Bali island extension bays representing Lot 1 and Sumatra, Kalimantan and the Sulawesi islands representing Lot 2. This project is being funded by IBRD – World Bank and is aimed at enhancing the performance of PT PLN’s Transmission Grid. This contract was secured through a highly competitive international bidding process, among reputable bidders from Spain, China and India. This is the second such significant project secured by CG Indonesia since the acquisition of the new Bengkayang 275 kV Substation project in 2012, which is being funded by the Asian Development Bank (ADB). The scope of this new order includes design, manufacture, supply, construction and installation of 36 bays of 150kV in Java, Sumatra, Kalimantan and Sulawesi islands of Indonesia.

Petron Engineering Oil & Gas Sector: Rs 100 crore. Petron Engineering Construction has bagged a ` 100 crore contract for mechanical works at Reliance Industries Jamnagar project. "The Company has received 'Letter of Commitment' from Fine Tech Corporation Private Limited, the Agents of Reliance Industries Limited for Mechanical Works of LLDPE and other Allied Works in J-3 Project at Reliance Industries Limited, Jamnagar, Gujarat for a total Value of ` 100 crore," the company said in a filing to the BSE. RIL's Jamnagar project, known as J3, is designed to increase production capacity of ethylene and other petroleum products at the complex.

BAE Systems Aviation Industry: GSP 18.5 million. BAE Systems has secured a five-year contract worth GBP 18.5 million to provide Hindustan Aeronautics Limited (HAL) a comprehensive package comprising Ground Support Equipment, Spares, Support and Training for the Hawk Mk132 advanced jet trainer. This contract is in support of HAL’s plans to establish a dedicated Repair & Overhaul facility for the aircraft in advance of a major servicing milestone anticipated in 2016.

Alstom India

Transportation Industry: €225 million Alstom has been awarded a contract worth €25 million by Delhi Metro

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Orders & Contracts IN BRIEF MBL Infrastructures has bagged a project worth ` 234.44 crore in Bihar. As per the project, the scope of work is for restoration of Saran mine canal and its distribution system in Bihar, on EPC basis, with a construction period of 30 months, under Accelerated Irrigation Benefits Programme (AIBP) of Ministry of Water Resources. RPP Infra Projects has won an order worth ` 192 crore from the government of India. The order has been awarded for rural electrification work to be carried out under Rajiv Gandhi Grameen Vidyutikaran Yojna Phase-Il in Shahjahanpur district of Uttar Pradesh. Rays Power Infra has won a 37 MW solar Engineering, Procurement and Construction (EPC) projects worth ` 240 crore, in Telangana and Karnataka. The company has won solar capacity projects at an average Power Purchase Agreement (PPA) price of Rs 6.7 per unit. Aegis Group has bagged Operations & Maintenance (O&M) contracts worth `93.51 crore from Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL). For HPCL, Aegis will provide O&M Services of POL Depots / Terminals including Receipt, Despatch and Handling of Bulk & Packed Petroleum Products at six locations - Rewari (Haryana), Bihta (Bihar), Bokaro (Jharkhand), Haldia (West Bengal), Guntakal (Andhra Pradesh) and Kadappa (Andhra Pradesh). The contract period for the project is five years. CLP India, the Indian subsidiary of Hongkong-based power company CLP said it has awarded a 100MW wind power project in Madhya Pradesh to wind energy firm Gamesa. The project is a turnkey project to construct 100MW wind farm in Chandigarh, Madhya Pradesh, CLP India said in a statement. Cipla has been awarded USD 188.95 million of Global Fund ARV Tender. Cipla has been selected as a ‘Panel Supplier’ for a Supplier Partnership Agreement. The contract is effective from the 1st of January 2015 and will run for a period of three years. The supplies will begin from Q4 FY 2015. The anti-retrovirals drugs will be manufactured in Cipla’s manufacturing facilities in India, which has been approved by various international regulatory agencies.

Rail Corporation (DMRC) to provide track work on the new line 7 of Delhi Metro by the end of 2016. This new line is 59 km long1 and includes 38 stations. It is part of the Delhi Metro Phase III project to extend the metro network from 6 to 8 lines. With the two new lines expected to open in early 2017, the number of commuters is projected to go up from 3 million currently to about 4 million. Alstom is in charge of the supply, installation, testing and commissioning of 30 km of concrete and ballast tracks1. The concrete track is for the elevated and underground sections from Lajpat Nagar to Shiv Vihar stations, while the ballast track is for the depot.

Wipro Ltd IT Sector: Wipro Ltd, a leading global information technology, consulting and business process services company has won a contract with Allied Irish Banks, p.l.c. (AIB). Wipro has been awarded a strategic infrastructure management contract by AIB, a leading bank in Ireland offering a full range of personal and corporate banking services. "We are excited to partner with AIB in their journey to transform the Bank. We will bring our expertise to build agile and adaptive infrastructure while improving the predictability and cost effectiveness of services," said Rajan Kohli, Senior Vice President and Global Head Banking & Financial Services, Wipro Limited. "The deal reinforces our commitment to grow and create local employment opportunities in Ireland. Wipro welcomes the colleagues joining Wipro as part of this transition. Wipro will be setting up a Dublin based ServiceNXT operations centre and the Mainframe COE to provide career opportunities to these colleagues," said G.K. Prasanna, Chief Executive, Global Infrastructure Services, Wipro Limited.

ITD Cementation Ports & Shipyards Sector: ` 2,168 crore. ITD Cementation India has received order worth of `2,168 crore for carrying out the dredging and reclamation works for the fourth container terminal at the country’s largest port Jawaharlal Nehru Port Trust (JNPT). The Mumbai-based company, which has been working at the Jawaharlal Nehru Port Trust since 1994, was awarded the contract by Bharat Mumbai Container Terminals, a subsidiary of the port developer, PSA Singapore.

RPP Infra Projects Real Estate Industry: Rs 45.80 crore. RPP Infra Projects announced that it has been recently awarded a contract from Karnataka Slum Development Board for construction of 795 ground floor dwelling units in Krishnaraja Area, Mysore city under Rajiv Awas Yojana (RAY SCHEME) for `45.80 crore. The said work is to be completed in 24 months, RPP Infra Projects said in a statement. Mr. Arul Sundaram, CMD, RPP Infra Projects said that the company is well poised to garner a sizable share of growth in infrastructure sector in India in the coming days. Project Vendor March 2015

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Update COOPER CORPORATION

Ricardo to collaborate for new engines series PV News Bureau

ooper Corporation Pvt. Ltd, one of India’s leading engine manufacturers and Ricardo underscored their long-standing collaboration by announcing their intention to jointly develop a new line of cutting edge Cooper engines. As a result of this planned development, Cooper Corporation will expand its range of engines from 3.5 KVA to 1000 KVA. The entire range will be available in both Diesel and CNG versions. The successful longstanding association between Cooper and Ricardo has made Cooper products years ahead of competition in-terms of innovative technologies, total cost of ownership and durability of products. Working together with Ricardo, Cooper is the only company in India who has made 52 variants of engines in six years including diesel and gas. The new Cooper engines will power applications for diverse sectors including automotive, gensets, marine, defence, construction equipment and agriculture. Speaking about the association, Farrokh N. Cooper, Chairman and Managing Director, Cooper Corporation Pvt. Ltd said, “It’s a very proud moment for us and a big achievement for a company which has graduated from cast iron engine components to contemporary engines. With

this association with Ricardo UK, we will be covering almost 75% of the range of products available in the market putting us in the same league as the biggest players in the industry in a relatively short period of time.” Ricardo UK, one of the leading independent technology and strategic consulting provider to the world's transportation and clean energy industries has designed this world class engine family (2, 4 and 6 cylinder engines) for Cooper Corporation Pvt. Ltd.

Statement about ownership and other particulars of Project Vendor, Mumbai, as required under Rule 8 of the Registration of Newspapers (Central) Rules, 1956

RUAG Aerostructures, TAL Manufacturing enter partnership for aero structural components

(L-R): Martin Fausset, MD - Ricardo UK, Farrokh N. Cooper, CMD Cooper Corporation Pvt. Ltd, Mayank Agochiya, President - Ricardo India along with Manisha Cooper announcing the latest technical collaboration.

FORM IV (See Rule 8) 1. Place of Publication 2. Periodicity of its Publication 3. Printer's Name Whether Citizen of India? Address

: : : : :

4. Publisher's Name Whether Citizen of India? Address

: : :

5. Editor's Name Whether Citizen of India? Address

: : :

6. Names and Addresses of individuals who own the newspaper and partners and shareholders holding more than one per cent of the total capital

Mumbai Monthly Shashikant S. Hegde Yes Economic Research India Pvt. Limited, Sterling House, 5/7, Sorabji Santuk Lane, Off. Dr. Cawasji Hormasji Lane, Dhobi Talao, Mumbai - 400 002 Shashikant S. Hegde Yes Economic Research India Pvt. Limited, Sterling House, 5/7, Sorabji Santuk Lane, Off. Dr. Cawasji Hormasji Lane, Dhobi Talao, Mumbai - 400 002 Shashikant S. Hegde Yes Economic Research India Pvt. Limited, Sterling House, 5/7, Sorabji Santuk Lane, Off. Dr. Cawasji Hormasji Lane, Dhobi Talao, Mumbai - 400 002 Economic Research India Pvt. Limited, Sterling House, 5/7, Sorabji Santuk Lane, Off. Dr. Cawasji Hormasji Lane, Dhobi Talao, Mumbai - 400 002

Shareholders holding more than one per cent of the total capital: 1. Madan Bahal : 154/B, 15th Floor, Twin Towers, Off V. S. Marg, Prabhadevi, Mumbai-400 025 2. Shashikant S. Hegde : Adarsh Nagar, Building No. 42, Room No. 1276, Worli Colony, Mumbai-400 030 I, Shashikant S. Hegde, hereby declare that the particulars given above are true to the best of my knowledge and belief. Sd/. Shashikant S. Hegde Dated: 1st March, 2015 Signature of Publisher

Project Vendor March 2015

PV News Bureau UAG Aerostructures, a global supplier and integrator of Aerostructure components and TAL Manufacturing Solutions Ltd., a Tata Enterprise and a leading company in Commercial & Defence Aerospace manufacturing in India, entered into partnership for manufacturing and supply of aero structural components and sub-assemblies. The two companies signed a multi-year contract with a potential value of over US$ 150 million. The new work scope allows RUAG to strengthen and optimize the global supply chain to the advantage of Airbus. As part of the contract, TAL will manufacture and supply over 550 sheet metal components, machined parts and sub-assemblies to RUAG, for Airbus’ fast moving, successful A320 programm. Going into two fuselage sections of the Airbus A320, these parts are processed from steel, aluminium and titanium and involve use of some of the most sophisticated and futuristic equipment in aerospace manufacturing. Urs Breitmeier, CEO of RUAG Group points out: “I am pleased about the established partnership with TAL Manufacturing Solutions Ltd. It reflects our strategy to go global in the supply chain and enables RUAG to strengthen its position as a leading first-tier supplier in Aerostructures.” Adds Rajesh Khatri, ED & CEO of TAL, “The partnership with RUAG further exemplifies our commitment to global benchmarks.We underwent a most stringent qualification process and have brought our experience and learnings from our other premier programmes to bear on this. This contract will see us investing further in our state-of-art aerospace infrastructure at Nagpur and will uniquely position us as a supplier to two of the world’s most advanced and successful airplane programmes, the Boeing 787Dreamliner & the Airbus A320”.

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Doctors Diagnosis

Port traffic goes up 3.2 per cent during January Dr. M.S.Kapadia

he seaborne traffic at the countryâ&#x20AC;&#x2122;s 13 major ports increased 3.2 per cent in January, against 2.8 per cent in the preceding month, and 2.8 per cent in this month a year ago. Six ports witnessed reduced volumes, whereas seven others enjoyed enhanced quantities. Mormugao recorded the highest growth rate of 47 per cent among the ports during the month, with cumulative growth too working out to a healthy 22.7 per cent (the best rate among the ports), thanks to sharp increase in general

SEABORNE CARGO AT MAJOR PORTS DURING APRIL-JANUARY 2014-15 000 tonnes

% increase

Kolkata Dock System

11,844

14.9

Haldia Dock Complex

24,723

4.4

Total: Kolkata

36,567

7.6

Paradip

58,879

3.9

Visakhapatnam

48,377

1.0

Kamarajar (Ennore)

25,146

12.0

Chennai

44,451

5.6

V.O. Chidambaranar (earlier Tuticorin)

25,744

9.7

Cochin

18,022

3.1

New Mangalore

30,409

-6.9

Mormugao

11,680

22.7

Mumbai

51,570

5.1

JNPT

53,273

3.3

78,294

6.9

482,412

4.8

Kandla Total

Classification by cargo POL

157,146

1.3

13,915

-30.8

Finished Fertilser

6,681

18.5

Raw fertilizer

7,037

16.2

Thermal Coal

70,771

18.7

Coking Coal

26,479

-4.1

Iron ore

Containers

99,348

4.5

Other cargo

101,035

11.2

Total

482,412

4.8

Project Vendor March 2015

industrial cargo, thermal coal and return of iron ore in a relatively small way. Iron ore had been the portâ&#x20AC;&#x2122;s main business segment till a few years back, and the total freight handled at the port currently is just around a fourth of its peak time volume. Among the cargoes, iron ore cargo dropped 40 per cent, affecting business at Paradip, Visakhapatnam and New Mangalore. Finished/raw fertilizer increased 50 per cent and thermal/ coking coal rose 23-24 per cent. Taking April-January 2014-15 period seaborne traffic at the ports increased 4.8 per cent annually, over three times the rate in the corresponding period of the fiscal 2013-14. Only New Mangalore recorded decline in volume due to lower POL and iron ore. The traffic at Visakhapatnam stagnated at year ago level due to reduced iron ore, thermal/coking coal and containers, even as general industrial cargo shot up 43 per cent. Traffic at Kolkata Dock, Mormugao and Kamarajar (Ennore) increased double-digits. Among the cargoes, iron ore volume dropped 31 per cent, adversely affecting the operations of Paradip, Visakhatpatnam and New Mangalore. Finished/raw fertilizer increased 17 per cent. Thermal coal freight increased 19 per cent, even as coking coal went down 4 per cent. Other industrial cargo was up 11 per cent, having beneficial impact on Mumbai, Mormugao and Visakhapatnam.

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Doctors Diagnosis

Project Cost Index increases marginally during January Dr. M.S.Kapadia

verage project cost, as measured by the ERIL Index of Cost of Project Inputs increased nominally during January, ending decline of earlier two month. Project cost escalation on y-o-y basis worked out to 0.7 per cent during the months, a half of an already subdued 1.6 per cent during the comparable period of 2013-14. WPI-based inflation for all commodities showed a decline during January, after over 5 years of positive growth. The combined WPI for manufactured products that sets the tone for project investment increased one per cent annually. Computed by Economic Research India Pvt. Ltd., ERIL Index measures project cost escalation in terms of WPI of material inputs relevant in project construction. Capital goods production increased 4.8 per cent during April-December Among the other material inputs in project execution, cement production increased by 7.9 per cent. Alloy, non-alloy steel production was up by 1.6 per cent during this period. Machinery export increased by 16 per cent, whereas their import was up by 2 per cent.

declined by 0.1 per cent due to 5 per cent reduction in price of slab , 4 per cent in pig iron, 2 per cent each in zinc and steel structures; and 1 per cent each in ferro silicon, steel rods, CRC, angles, rebars, silver and HRC. However, the price of iron castings was up 4 per cent, nuts/bolts/screw/ washers 2 per cent, and pipes/tubes/rods/strips, gold & gold ornaments, sheets, plates and billets 1 per cent each. The combined WPI for machinery & machine tools increased by 0.2 per cent following higher price of heating elements (5 per cent) and industrial furnaces, electric motors, thresher, electric generators, lamps, electronic PCB /micro circuit, washing / laundry machines, earth moving machinery and ball/roller bearing 1 per cent each. However, the price of heat exchanger dropped 6 per cent over the month.

TRENDS DURING JANUARY The aggregate WPI for non-metallic mineral products rose by 0.6 per cent during the month due to higher price of grey cement (2 per cent) and asbestos corrugated sheet, glass bottles & bottle ware and lime (1 per cent each). However, the price of bricks & tiles declined 4 per cent, marbles 3 per cent and slag cement one per cent. The total WPI for basic metals, alloys & metal products

ERIL INDEX OF COST OF PROJECT INPUTS: JANUARY 2015 Wholesale Price Index: 2004-05=100 Index Non-metallic mineral products Structural clay products Cement & Lime

Y-o-Y Incr. (%)

Incr. since Mar (%)

2015/14

2014/13

2014

2013

172.9

4.0

0.8

3.2

-0.1

190.7

5.8

7.5

3.4

7.5

170.0

3.4

-2.4

3.6

-4.6

Basic metals, alloys, metal products

164.7

-1.0

0.7

-1.7

1.0

Ferrous Metals

154.4

-1.2

1.0

-2.2

1.0

169.3

2.4

1.8

1.7

2.4

Machinery & Machine tools

135.2

2.1

2.4

1.5

2.3

Industrial Machinery

153.1

1.5

2.4

0.9

2.2

Construction Machinery

141.4

3.3

0.3

2.8

0.1

Air Conditioner & Refrigerators

120.7

4.3

1.7

1.1

1.8

Non-electrical Machinery

127.6

2.7

1.1

2.6

1.4

Electrical Machinery, Batteries

139.0

1.2

2.6

0.4

2.5

Electrical Accessories, Wires, Cables.

157.3

3.8

4.8

3.8

8.3

Transport equipment & parts

136.7

0.7

3.3

0.7

2.7

Automotives

135.7

0.2

3.6

0.4

2.8

Non-Ferrous Metals

Auto Parts

139.1

3.3

2.6

2.2

2.5

Composite ERIL Index for project inputs

150.5

0.7

1.6

0.1

1.9

Overall WPI

178.3

-0.4

5.2

-1.1

5.3

Project Vendor March 2015

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50-51] Case Study - Nilesh Jadhav - JSW Steel plant.qxp

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Case Study NEW TECHNOLOGIES

Constructing office for factorie Nilesh Jadhav explains about the company’s recent project of setting up an office for JSW Steel plant and the challenges faced during execution while keeping in mind the client requirements.

Project Site: JSW Steel Office, Dolvi – Maharashtra. Project Goal: Settingup Office for steel plant.

npod is a modern solution that delivers offices and homes of international standard. In the 2 years since its launch inpod has delivered offices for many MNC companies like HYDAC, Linhoff and Indian companies like Mahindra Lifespaces. Recently JSW Steel approached inpod to build its office set up at its Dolvi plant in Alibaug. The Dolvi steel manufacturing unit is a 3.3 MTPA integrated steel plant in Maharashtra currently in expansion mode. Their goal is to eventually increase their current capacity to around 15 million tonnes*. This would also entail growing staff requirements giving rise to a need to build a world class office to house their employees as well. Inpod had several meetings with the decision makers to create a bespoke office for their plant. Given that the site would be visited by delegates from all over the world the office had to have an international look and feel. Also with the heavy expansion mode that JSW were in, the offices needed to be instantly scalable and easily moved. This would be difficult to achieve from conventional materials. Additionally it had to be done quickly and with least hassle. Being a global player, JSW had experience with international methods of building as well. In developed countries the construction industry is well organised and familiar with building from an assembly line. Inpod made customised plans for the building and also mentioned the benefits. Inpods have the distinction of standing out from their counterparts because of its beautiful robust surface and it uses PU paint that gives it a similar look to that of a luxury car. Inpod’s are easily scalable with the building being conceptualised on the basis of lego blocks. They

Project Vendor March 2015

can expand vertically as well as horizontally currently G+2 (ground +2), as the need demands. The pods are extremely versatile and can be used to manufacture modular service stations, foot overbridges, kiosks etc. turning into a complete township. The Dolvi plant is one where JSW is investing heavily and look forward to secure their returns quickly and cost efficiently. For normal construction the challenges were delivery of a state-of-the art office in a short time frame, to international standard. Inpod was clearly the winner as these are exactly the obstacles that the pods overcome. The JSW office would be setup on existing land, in the open air close to the working plant for easy access. Given the fact that the office would be so close to the steel plant - the atmospheric conditions would be quite challenging

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Case Study

to work in. However inpods are built from specially insulated material that regulates the temperature, within the pods, and blocks the atmospheric heat with minimum outside assistance. Double glazing on pod windows reduces heat transfer making it an extremely pleasant environment to work in. Also inpods have green features since there is no construction on site there is minimum disruption to the environment. The pods are also durable, up to 50 years with low maintenance and are reusable. Thus even in an industrial environment they stand out, and with minimum maintenance always look as good as new. Taking into consideration their design requirements, JSW office has an in-built conference room and is set up for full-fledged team to start working immediately. The critical issues of immediate usability and a superior quality office were met. The office was manufactured and delivered onsite within a month. The pods were also set up within half a day with landscaping around. They are fully loaded with Daikin AC, Tarkett flooring, Dorma hardware and Le Grande electrical fittings, making the office usable as soon as it was constructed. Also the end consumer had the opportunity to see exactly what they

would get delivered, and there was no deviation from the standard. In fact the inpod office was considerably cheaper than any other construction method, delivering a superior look and feel. Because of this experience, JSW have decided to go with inpod and build the entire office complex. inpod is now building 24 more pods in the next phase. Inpod is also customising hotel rooms, for out of town guests and bus stands for them. Thus inpod can deliver homes and offices out of an assembly line and is soon becoming the preferred building system of construction today. (Nilesh Jadhav is the founder of Inpod.)

Project Vendor March 2015

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Update

Grundfos launches intelligent pump

KBL launches new pump series PV News Bureau ndorsing the Prime Minister’s “Make in India” call, Kirloskar Brothers Limited (KBL), the global fluid management company launched yet another product “i-NS” pump, which has been developed entirely with domestic technology. The new innovative features make the “i-NS” series pump ideal for dewatering function in the Water & Wastewater Treatment industries, Sewage, Building & Construction and other allied segments. KBL’s “i-NS” pump is an innovative non-clog sewage submersible pump designed for customer by taking into

industries, Sewage, Building & Construction and other allied segments. Speaking at the “i-NS” pump series launch, Mr Sanjay Kirloskar, Chairman & Managing Director, Kirloskar Brothers Limited, said: ““The indigenous development of technologically-advanced i–NS has been an enriching experience for the entire KBL team. I am pleased with our performance in developing this advanced technology for dewatering purpose across various industry segments. This project further reaffirms our commitment in providing advanced fluid handling solutions for critical applications. The

consideration the end-user’s views. The Compact size of the pump helps in minimizing submergence, and it comes with an aesthetically-improved design for maintenance-free work. KBL’s “i-NS” pump’s stationary installation arrangement is simplified with single guide pipe system. It introduces the innovative modular concept for interchangeability of components. Its Cable Bracket design for wrapping the cable around the body helps in avoiding cable damage, and its Potting Cup design helps in restricting the entry of water inside the pump. Its integrated design also eliminates most of the potential leakage and short circuit issues typically faced by the end-users in the Water & Wastewater Treatment

development of “i-NS” series of pumps has also helped us get another step closer to the “Make in India” initiative by our Honorable Prime Minister Shri Narendra Modi.” The “i-NS” pump is packed with innovative features that make it ideal for use. Its integrated design for major components (Stator Housing / Upper Bearing Holder, Mechanical Seal Housing / Lower Bearing Holder and Motor End Cover / Cable Gland) reduces the total number of parts and minimizes the fasteners. This integrated design product has 13 models, 49 hydraulics and 206 frames. Due to fewer components and integrated design concept, the pump has better assembly and dismantling lead time than its competitors.

TPE3 Pump rundfos Pumps India Pvt. Ltd (Grundfos India), one of the leading pump manufacturers in India, and a subsidiary of the Danish pump giant Grundfos Holdings, launched its globally acclaimed intelligent in-line pump - TPE3 at the ACREX 2015. The company participated at ACREX, a three day expo scheduled from February 26 to 28, 2015 organized by the Indian Society of Heating, Refrigeration and Air Conditioning Engineers (ISHRAE) and supported by NuernbergMesse India Pvt. Ltd. The TPE3, now launched in the Indian market, offers a wide range of intelligent functionalities which in turn ensures optimal efficiency for any HVAC system. With its built-in heat energy meter and flow limiting function, the pump totally eliminates the need for a pump throttling valve. The pump when connected to any HVAC sensor, completely takes charge of the system pressure and flow of the system. TPE3 also has a number of configurable relays and analog inputs which allows for better system monitoring and optimal pump regulation. Apart from TPE3, Grundfos India showcased its TP Pump - vertical in-line pumps and Magna3 - circulator pumps at the expo. Commenting on the occasion, G. Gangaprasad, Head - CBS & Exports, Grundfos India, says, “Grundfos took the opportunity to launch TPE3 during ACREX which is a great industry platform. In this age of automation, TPE3 is a pump which offers just the right kind of intelligent automation required at commercial facilities to reduce energy consumption and hours of manual monitoring.”

Project Vendor March 2015

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Company Watch MC-MISCHOEL AEA

Mortar plasticizing and air entraining agent

C-Mischoel AEA is a mortar plasticizing and air-entraining agent designed to give controlled plasticity and air entrainment to different types of mortars.MC-Mischoel AEA does not contain chlorides and can be admixed with all types of mortars used for brick laying, rendering, screeding patching and pointing etc. It improves the workability and aids in homogeneity of mix. It increases the covering capacity of the mortar mixes thereby increasing the productivity. MC-Mischoel AEA works out very economical taking into consideration the cost savings and provides a number of outstanding advantages such as: Increases plasticity, air entrainment and prolonged workability Improves the bonding properties Reduces the segregation and

CRACK INJECTION SYSTEM s a principle, the grouting injections systems should be selected based on the crack or cavity width. The following materials can be selected from the MC-Bauchemie Range: a) For cracks = 2 mm width – Centricrete b) For cracks > 0.2 to 2 mm width – MC-DUR 1264 Epoxy System Centicrete is a ready to use, Hydraulically Setting, Polymer Modified Waterproof grout for injection and filling of cracks and cavities. Centricrete injection grout is produced with carefully selected water repellent and silicifying chemical compounds and inert fillers to achieve varied characteristics like water impermeability, nonshrinkage, free flow etc. Centricrete creates an integral waterproof barrier and prevents water penetration and rising dampness. Centicrete injection grout is suitable for gravity as well as pressure grouting. This grout is pumpable when the waterpowder ratio is about 0.45 to 0.50 i.e. for 30 Kgs Centricrete, 13.5 to 15 litre of water. MC-DUR 1264 is a two component, low viscosity Epoxy injection resin for structural repair of cracks. This method of application varies from simple brush treatment to sophisticated two component pressure injection machines. The application time of MCDUR 1264 depends on the amount of resin mixed and the ambient temperature. The mixing ratio of Resin to Hardener is 100: 18 Pbw. MC-Bauchemie (India) Pvt. Ltd. Manufactures these products alongwith a host of other Construction Chemicals in technical and financial collaboration with MC-Bauchemie, Germany. MC-Bauchemie (India) Pvt. Ltd. isan ISO 9001: 2008 certified Company.

bleeding tendencies of the mortar Minimizes shrinkage, cracking and crazing in screeds or mortar Reduces the water absorption and penetration Reduces rebound and wastage of the mortar (cost saving) Makes very economical plasters and mortars (less materials, less labour, less dropping and wastage) MC-Mischoel AEA is supplied in ready to use form and should either be mixed with gauging water or added direct to the mix at the same time as the water. The amount of MC-Mischoel AEA to be added depends on the required characteristics of the mortar. The suitability and optimum dosage level is normally best determined by on site trials under actual conditions. As a guide to these trials and inmost circumstances we recommend 0.15 – 0.3 % by cement weight. MC-Bauchemie (India) Pvt. Ltd. Manufactures this product alongwith a host of other Construction Chemicals in technical and financial collaboration with MC-Bauchemie, Germany. MC-Bauchemie (India) Pvt. Ltd. isan ISO 9001:2008 certified Company.

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Exciting innovations in NOE Formwork

OEtec – “Made to Measure” Formwork for civil and infra Projects. It is extremely versatile and can be exactly configured to suit any project and site requirements. NOEtec completes challenging jobs using the minimum number of System Components: (a) Specially designed NOEtec steel girder & its extending girder, which is the heart of the system (b) Unique connection NOEtec Bolts (c) Standard Lock (d) Strut (e) Collar (f) Header beam (g) Guide Pocket. Whether it is a tunnel with a rectangular or rounded cross-section, underground or cut-and-cover construction, wall formwork or a shoring system: virtually every project can be accomplished using NOEtec’s System Components only. NOETEC CAN BE USED AS (1)Vault formwork (2) Trough formwork

(3) Wall formwork (4) Climbing formwork (5) Travelling formwork (6) Soffit formwork (7) Tunnel formwork (8) Integrated Travelling formwork The assembly time for the NOEtec formwork is short and that too with lesser manpower, as compared to the prevailing systems in India. Moreover, NOEtec provides a high degree of safety at work. It is highly durable, and excels through its high load bearing capacity.

CONTACT Pradeep Ghumare, Director NOE Formwork India Pvt. Ltd. 11 Lane, Prabhat Road, Sanjeevani Apartments, E-6, Pune 411 004. Mobile: +91 98220-23439 Tel: (020) 2567-2824 E-mail: p_ghumare@yahoo.co.in www.NOE.de, www.NOEplast.com

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Coal mining, infrastructure development to drive earthmoving equipment demand — By Sridhar B, Head – SDLG Business, Volvo India Private Limited

he key drivers for earthmoving equipment demand are coal mining and infrastructure development activities. The central government has made its intentions clear by the actions it has taken recently to drive the activity level in these sectors. We expect demand for larger size of equipment (excavators, Loaders, road equipment) to grow faster in the short term compared to the utility sector (Skis steers, Backhoe loaders). The industry has adequate capacity to cater to the upcoming demand and hence supply will not be a constraint. The expectation is that large infrastructure projects will take off by late 2015. With activities in coal mining are showing positive signs which are expected to accelerate during later part of 2015, demand for equipment will further increase in 2016. With this year ’s budget focusing on key areas like Infrastructure and development, we see a promising future for the segment. When we started SDLG 5 years ago, our idea was to cater to the requirements of construction equipment users across segments. SDLG undertakes the core concept of “Reliability in Action” to provide reliable products and services and maximize the sustained value return to its customers. Globally we sell wheel loaders, excavators, road

rollers, backhoes and motor graders. In India we currently sell wheel loaders and motor graders that are customized for right applications with added value for money. SDLG’s investments in India have focused around developing the business with adequate manpower and competency level and establishing the aftermarket business like parts storage and

parts distribution, to ensure a service level that SDLG is known for globally. We have established a unique way of supporting the customer by keeping a container / workshop along with parts on site for key customers. Currently, SDLG offers a large fleet of construction equipment which is highly appreciated by our customers. We are here to serve our best for a long time to come.

ADVERTISERS’ INDEX C O M P A N Y N A M E ......................................................................................... ..................... P A G E N O . Bekaert Industries Pvt. Ltd. .............................................................................................................9 JSW STEEL Ltd ................................................................................................................................5 Berco Undercarriages (India) Pvt. Ltd. .............................................................................................7 Ultratech Cement ..........................................................................................................................11 Prince Pipes & Pipe Fittings Pvt. Ltd. ............................................................................................15 Prince SWR Systems Pvt. Ltd. ......................................................................................................19 The Supreme Industries Limited ....................................................................................................21 STP Ltd .........................................................................................................................................23 Supreme Fibre Glass Pvt Ltd..........................................................................................................51 LA TIM Metal & Industries Ltd. ......................................................................................................56 P i d i l i t e I n d u s t r i e s L t d ....................................................................................................... B a c k C o v e r V E C o m e r c i a l ............................. ......................................................................................... G a t e F o l d UL India ........................................................................................................................................IBC L i n n h o f f i n d i a p v t l t d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I F C 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. Project Vendor March 2015

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Published on 1st of every month W.P.P. Lic No. MR/TECH/WPP-59/SOUTH/2015 Reg. No. MCS/029/2015-17 Posted at Mumbai Patrika Channel Sorting Office, Mumbai - 400 001 on 5th & 6th of Every Month