Construction Week India 2017

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CONSTRUCTIONWEEK N EWS, ANALYSIS , P ROJ E CTS & B U SI NE SS I NTE LLI G E N C E FO R T H E C O N S T R U CT I O N I N DU S T R Y

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BEST REAL ESTATE & INFRASTRUCTURE COMPANIES, RANKED! Powered by

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EDITOR’S NOTE

CONSTRUCTIONWEEK VOLUME 9 • ISSUE 03 • NOVEMBER 2017

India Rising Jayashree Mendes

Mitalee Kurdekar

Construction Week has never shied away from challenges. So when we were faced with the task of reinventing ourselves in this, our 9th year of existence, we rose to the occasion. Our awards in September were proof of that, bringing together the industry’s stalwarts, to deliberate on the challenges that face us as a community and celebrate the achievements that spur us to excel amongst peers.

Well, November happens to mark our 9th anniversary, and we have gone ahead and taken on yet another challenge. Every year, we chronicle the stories behind the construction sector’s top players; however, this time around, we are shaking things up a bit. Not only are we bringing to the fore India’s best in construction, but we are ranking them too!

Of course, the ranking is based on a series of stringent parameters, and further vetted by impartial and well-respected industry experts. For this purpose, we have chosen to follow a meticulous methodology, and sincerely hope that we have done justice to every contender. Each company, of course, was approached to submit data and information – based on a common set of factors, and we have used these details, along with those available in the public domain, to award the rankings.

While some companies have risen to the top based on sheer performance and star power, others have shown a steady rise, while yet others have risen from the ashes of a bad market to earn a spot on this list. All things considered, this comprehensive list of industry leaders and their work is ample testimony of the fact that, as far as the country’s construction space goes, India is well and truly rising.

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WRITE TO THE EDITOR Please address your letters to: The Editor, Construction Week, Notan Plaza, 3rd floor, 898, Turner Road, Bandra (West), Mumbai - 400050, India or email jayashree.mendes@itp.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWeekOnline.in and air your views.

The opinions expressed in this section are of particular individuals and are in no way a reflection of the publisher’s views.

4 CONSTRUCTION WEEK NOVEMBER 2017

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CONTENTS

20

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21

Larsen & Toubro Afcons Infrastructure Prestige Group Dilip Buildcon Reliance Infrastructure Sobha Limited Godrej Properties Brigade Group Oberoi Realty HCC GVK Ashoka Buildcon Puravankara Projects Rustomjee SPML Infra IRB Infrastructure ATS Greens Runwal Group Lodha Group GMR Group Akshaya

22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

For regular updates and subscriptions log on to

6 CONSTRUCTION WEEK NOVEMBER 2017

Kalpataru Hiranandani Communities Mahindra Lifespaces Gayatri Projects K Raheja Corp Kolte-Patil Tata Realty ITD Cementation Emaar India L&T Realty Omkar Realtors Piramal Realty Tata Projects Al Fara’a Infraprojects Embassy Group Kanakia Group Mantri Developers Patel Engineering Sunteck Realty Tata Housing & Development

42 43 44 45 46 47 48 49 50

ABIL Group City Group Gera Developments DS Kulkarni Developers Panchshil Realty DLF Century Real Estate Dosti Realty Nahar Group

13 NEWS

India, Germany to collaborate for projects

106 CURTAIN RAISER: EXCON 2017

What December holds for the CE makers.

75 PROCUREMENT HEADS Procurement Heads of real estate and infrastructure companies tell us what lies beneath.

DIRECTOR’S NOTE

creating new benchmarks When we started our journey in 2008, the construction industry was not a favourable market to be in. Several well-wishers foretold that it was not the right time to launch a magazine for the real estate industry. Besides, the year was also a time of the global meltdown.

But it was sheer determination and support from industry patrons that we continued to embark on our journey. With this issue, we celebrate the 9th Anniversary issue. We have never looked back since then. Our sense of pride today is that of being the most preferred and respected magazine for the construction and infrastructure industry not only in India, but also in Asia.

It also gives me an opportunity to thank all our patrons and well wishers who have stood by us and have helped us achieve this feat.

As we gear up to celebrate our 9th anniversary, the team decided to create a new milestone. We have broken away from our tradition of merely listing the top companies in real estate and infrastructure.

Instead, we are ranking them.

This year, we bring to you ‘Construction Week - The Best 50’. And what better occasion than the 9th Anniversary issue to recognise the best! To ensure that we bring to you a transparent and authentic ranking, the team carefully crafted common performance parameters with help from our advisory board members and consultants to evaluate and rank the Best 50 real estate and infrastructure companies. The exercise was tough and not effortless (we may even have ruffled a few feathers of our industry friends), but it’s a risk worth taking. We screened through tons of data and deliberated and toiled to bring to you the most powerful list ever.

At a time when initiatives such as demonetisation, GST and RERA appeared on the horizon and confused many people, we have chosen to rank developers. Though these reforms will change the way business is done and might bring in consolidation, there have been disruptions. But, yes, strong players will fight it out and some of them will outperform. Most of them will emerge stronger.

In a yet another move, we bring to the forefront the dark horses, “The Procurement Heads”.

Before I sign off, I would like to thank all my sponsors and advertisers who have supported us all these years and without whom much of what we do would not have been possible.

Indrajeet Saoji indrajeet.saoji@itp.com

8 CONSTRUCTION WEEK NOVEMBER 2017

FOREWARD

Setting new standards It is for the first time that we are associating with ITP Media Group’s Construction Week. The 9th Anniversary issue, I am happy to say, will be a collector’s delight. we are happy to associate with Construction Week India only because it has a global footprint.

We can well understand and sync with such brands as we too operate in a similar space. KK Holding operates in several countries in Asia region (Hong Kong, Thailand, Indonesia, Sri Lanka, Africa and India), and we are not resting on our laurels.

There is always a sense of eagerness to keep looking to expand and find more and bigger opportunities elsewhere.

As CMD of KK Holding, I have cultivated the team who work hard to form an enviable reputation for it’s quality service. Experts often refer to KK systems as “sharp and clean with pleasing structural features”. This is evident with KK Holding receiving accolades from the International Standard requirements for weather performance and structural integrity.

Over the years we have been associated with remarkable projects that have given us an edge in the market. Importantly, we have made sure that we stick to sustainable policies and that has catapulted us in the top league. We have implemented projects in Thailand, Indonesia, Sri Lanka, Maldive & India.

Our works have included glass facade point fixing cable net system, glazed aluminium unitised system (LEED Platinum), segmented and curved glazing, semi unitised, skylight, aluminium composite perforated panel, SS cladding and frame-less glass system.

But we let our work and client speak for us.

Meanwhile, we hope that reading this issue will give you a pleasure as much as we are happy to be associated with it.

Kapil Shukla CMD KK Holding

10 CONSTRUCTION WEEK NOVEMBER 2017

ADVISORY BOARD Our distinguished advisory board has been assembled to help guide Construction Week to become even more representative of its community. Members have been invited from the highest levels of the industry to ensure that the magazine continues on its path of success.

Anuj Puri Chairman, ANAROCK Property Consultants

Prof Dr Anil Sawhney Associate Dean, Director for School of Construction, RICS School of Built Environment

Ramesh Nair CEO & Country Head, JLL India

Brotin Banerjee MD & CEO, Tata Housing

Jayanand Potdar Chief Operating Officer, Godrej Properties

Karuna Gopal President, Foundation for Futuristic Cities

Lalit Kumar Jain CMD, Kumar Builders Development

Mangesh G Korgaonker Director General, NICMAR

Neeraj Bansal Partner & Head of Real Estate and Construction, KPMG India

Neeraj Jain Deputy Team Leader, Louis Berger Consultants

Neerav Parmar Head Contracts and Procurement, Shapoorji Pallonji Real Estate

Niranjan Hirnandani Managing Director, Hiranandani Group of Companies

Sachin Sandhir Managing Director, RICS South Asia

Sarosh Bala Vice-President, Projects, EPC Academy, Reliance Industries

Sunil Mantri Chairman, Mantri Realty

Vikram Goel CEO, HDFC Realty

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12 CONSTRUCTION WEEK NOVEMBER 2017

NEWS

VOLVO TRUCKS EYES THE CONSTRUCTION SEGMENT

V

olvo Trucks’ focus on the construction segment, i.e. road construction, irrigation, quarry and marble, mirrors their long-term commitment and selective approach, similar to what they did in mining. This includes a commitment to offer modern trucks that will redefine the Indian trucking experience.

In 2016, they strategically entered the construction space and have seeded close to 100+ of their products in key construction businesses like road construction, irrigation, marble & granite mining.

Vinod Aggarwal, MD & CEO, VE Com-

mercial Vehicles, said, “With progressive economic policies like GST and increased investments into infrastructure projects, there are more opportunities for Volvo trucks in India, as customers are willing to opt for highly productive and efficient transport solutions.”

Dinakar B, senior VP, sales, marketing & aftermarket, Volvo Trucks India, VE Commercial Vehicles, stated, “With

Construction Cameras

Part of Volvo’s range of construction trucks.

L-R: Vinod Aggarwal and Dinakar B speak during the announcement event.

the latest technologies, support network and a team of highly skilled employees, we are geared to raise the current standards of productivity, efficiency and reliability in the construction segment.”

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CONSTRUCTION WEEK NOVEMBER 2017 13

NEWS

PIRAMAL FINANCE ANNOUNCES THE LAUNCH OF PIRAMAL HOUSING FINANCE

Piramal Housing Finance’s unveiling ceremony.

P

iramal Finance announced its foray into the retail housing finance business through its wholly-owned subsidiary, Piramal Housing Finance. Under a license received from the National Housing Bank to operate, the housing finance vertical will offer home loans as well as loans against property and construction finance for small developers.

The retail housing finance business will initially focus on a product roll out across all major metro cities and thereafter seek to establish a pan-India presence, including tier-II and tier-III towns and cities. The retail construction finance

arm will focus on local developers in tier-I and top developers in tierII and tier-III geographies.

A key differentiator is that the home loan distribution will be driven through the developer relationships that they already have in place through their wholesale lending arm. They believe that business (Piramal Housing Finance) to business (developer) to consumer (retail home buyers) or B2B2C is integral to the housing finance business. Their existing wholesale business has over Rs 35,000 crore in assets under management (across debt and equity), with funding across 300+ projects and over 100 development partners.

Khushru Jijina, MD, Piramal Finance, & MD, Piramal Housing Finance, said, “Given the size, scale and market relevance of the wholesale lending business, it was a natural progression to assess opportunities within the retail lending space. We see the housing finance business as an extended product vertical of our existing business, creating value not just for ourselves but the entire ecosystem.”

BRICK EAGLE RECEIVES RS 100 CRORE ANCHOR COMMITMENT FROM AXIS BANK AND BENNETT PROPERTY HOLDINGS

B

rick Eagle Capital Advisory has received a Rs 50 crore anchor commitment each from Bennett Property Holdings and Axis Bank for its Alternative Investment Fund out of its targeted corpus of Rs 500 crore. The Brick Eagle India Affordable Housing Fund is a category-II AIF registered with SEBI, aimed at catalysing 50,000 homes for low income families, while targeting healthy returns for its investors.

14 CONSTRUCTION WEEK NOVEMBER 2017

Prior to this fund, Brick Eagle Capital Advisory has raised Rs 400 crore for project finance, which has been deployed across nine cities and eight developers.

Recent policy initiatives from the government have been a big boost to the affordable housing sector. Policy push includes ‘infrastructure’ status for the sector, tax holidays for developers and subsidies of up to Rs 2.7 lakh for first-time home buyers.

SNIPPETS

A

CC has recently launched its Green Building Centre in Chandrapur, Maharashtra, as part of a conscious effort towards sustainable construction and maximum utilisation of resources without causing harm to the environment.

ACC has already built 30 such centres in the states of Uttar Pradesh, Madhya Pradesh, Maharashtra and Rajasthan. ACC expects to have as many as 50 centres by the end of 2017.

T

ata Motors and Srei Equipment Finance, a wholly-owned subsidiary of Srei Infrastructure Finance, have signed a memorandum of understanding to finance Tata Motors’ commercial vehicles with a special focus on construction and mining trippers.

X

rbia Developers announced the launch of 50,000 affordable housing units in city centre locations across Mumbai and Pune in Q4, 2017.

These new projects will be launched in Thane, Kandivali, Mira Road and Karjat in Mumbai, whilst the projects in Pune will be launched at Balewadi, Dhanori and Market Yard.

The company has a vision of delivering 100 futureready cities by 2030.

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20 CONSTRUCTION WEEK NOVEMBER 2017

COVER STORY

POWERED BY

ASSOCIATE PARTNER

BY JAYASHREE MENDES & MITALEE KURDEKAR

F

or too long, we have been merely listing Top 100 companies. It was time to take on new challenges. And what better time than the 9th Anniversary issue?

Ranking established giants who have been in real estate and infrastructure for decades is no small feat.

Moreover, a discourteous market has not been playing ball with the now beleaguered developers.

We needed compelling parameters that could withstand the test of time, and disagreements, if any. For that reason, we sought the help of consultants who could corroborate the criteria and segregate the submitted data. Emails indicating parameters were sent out to selected established companies. The criteria to rank companies were: Number of projects launched last two years; Projects completed last two years; construction methodologies; significant milestones; Number of cities present in and projects in those cities; change of management level employees, if any, recently; list of green projects; best practices followed; and EBIDTA. Without meaning to unsettle anyone, we adopted an unbiased approach to tally the scores from our consultants and those marked in-house and arrived at the final list. The more points you score on the parameters, the faster is the climb up the ranking sheet. Of course, there are surprises in store.

We hope you will appreciate our efforts and understand that this was just a way of understanding how the Indian real estate market is faring in these turbulent times.

CONSTRUCTION WEEK NOVEMBER 2017 21

COVER STORY

1

INFRASTRUCTURE

LARSEN & TOUBRO SN Subrahmanyan, MD & CEO

Few can contend the juggernaut of what is now India’s largest infrastructure company. Larsen & Toubro has played a significant role in most ambitious projects that the government has announced. In June this year, L&T’s order book stood at a whopping Rs 2.62 lakh crore! In April, L&T named SN Subrahmanyan as MD & CEO, bringing in a change of guard after 18 years.

Recently, the Transportation Infrastructure and Water Effluent Treatment business of L&T has jointly bagged the largest order worth Rs 1,123 crore for the design and construction of smart trunk infrastructure. Its Hydrocarbon division has secured a Rs 1,150-crore contract from ONGC pertaining to a Daman Development project.

Its defence business is booming too. The conglomerate has chalked up plans to set up its missile-integrated facility at an investment of around ₹500 crore, in a JV with French company MBDA. L&T has the capability to build a full-fledged battle tank, which will be built at the company’s new factory at Hazira in Gujarat.

2

In June, L&T’s order book stood at Rs 2.62 lakh crore. It has bagged an order worth Rs 1,123 crore for smart trunk infrastructure.

INFRASTRUCTURE

AFCONS INFRASTRUCTURE K Subrahmanian, VC & MD

The company is building India’s first underwater transportation tunnel and also three underground stations.

22 CONSTRUCTION WEEK NOVEMBER 2017

The Shapoorji Pallonji Group behemoth is known for its engineering marvels. Having executed high-profile projects like Jammu-Udhampur highway, sulphur expansion jetty at Abu Dhabi, cable stayed bridge over Mapusa in Goa, LNG storage tanks at Kochi and many others, Afcons has made much headway in constructing the toughest part of the East West Metro project in Kolkata. The infrastructure company has bagged the contract to build India’s first underwater transportation tunnel and also build three underground stations.

Another marvel that is scheduled to come up is the strategic 8.8km all-weather Rohtang Tunnel, the highest in the country, that opened up to emergency traffic.

Engineers used the drill and blast technique for excavation as part of the NATM. Border Roads Organisation (BRO) is excavating the tunnel with Strabag-Afcons.

Similarly, Afcons has now begun the next step of building a diaphragm wall (D-wall) for their TBM launch shaft for Ahmedabad Metro’s 20.737km east-west line.

COVER STORY

REAL ESTATE

INFRASTRUCTURE

3

4

PRESTIGE GROUP Irfan Razack, CMD

DILIP BUILDCON Dilip Suryavanshi, Chairman

Dilip Buildcon has managed to enlarge its order book to Rs 17,568 crore in FY17 from Rs 3,320 crore five years ago. The highway developer has bagged three road projects worth Rs 3,269 crore in Maharashtra from NHAI.

Over the years, Prestige Group has created landmarks that continue to be considered the firstof-its-kind, across different segments.

Prestige has completed 18 projects from April 2016 till date.

Few venture to complete projects at a time when the markets are not favourable. But Irfan Razack, CMD, Prestige Group, kept his commitment to the market and completed 18 projects from April 2016 to October 2017. Over the years, Prestige Group has created landmarks that continue to be considered the first-ofits-kind, across different segments. Prestige Acropolis continues to be the benchmark for Greek architecture even a decade after its construction. Prestige Golfshire is South India's first golf villa development, while Prestige Lakeside Habitat introduces Disney-inspired residences to Bangalore.

Prestige has not only entered adjacent markets like Mangalore, Mysore, Kochi, Hyderabad and Chennai, but even distant ones like Ahmedabad and Pune. Last fiscal, keeping with the diversified business interests, the board create verticals: office, retail, hospitality, and residential, with Prestige Estate Projects being the holding company for all four.

The Bhopal-based infrastructure company has emerged as a strong reckoner to major players in infrastructure since the launch of its IPO last year. Perhaps, this is the only firm that is known for consistently completing most of its projects ahead of time. One of the advantages of completing projects before time is the completion bonus, which the company has secured several times in the past. In FY17, the company earned an early completion bonus of Rs 100 crore, which was nearly 2% of its consolidated revenue of Rs 5,319 crore.

It has managed to enlarge its order book to Rs 17,568 crore in FY17 from Rs 3,320 crore 5 years ago.

Early this year, the highway developer bagged three road projects worth Rs 3,269 crore in Maharashtra from NHAI. The company also owns one of the largest fleet of construction equipment of close to close to 8,508. Over the last three years, it has also forayed into irrigation projects and is building two massive dams, besides canals and mining projects.

WE TURN VISION INTO REALITY www.kkholding.org l

Indonesia l Thailand l Hong Kong l Srilanka l East Africa l India

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BRANCHES ADDRESS 1. HONGKONG - KK HOLDING 903, Dannies HSE, 20 Luard Rd Wan Chai, Hongkong 2. JAKARTA – FACADES ASIA GROUP Graha Surveyor 15th Floor Unit No. 1503 Jl. Gatot Subroto Kav 56, Jakarta 12950, Indonesia 3. K.K HOLDING (BANGKOK) CO.LTD. 90/20 Moo 15, T Bangkaew, A, Bangpee Samutprakarn, 10540, Thailand 4. COLOMBO – KK HOLDIGN LANKA PVT. LTD. 2nd Floor, McLarens, Building No. 123 Bauddhaloka Mawatha, Colombo 04 5. EAST ARFICA – KKH AFRICA #6, 2nd Floor, Plot No. 306 Ali Hassan Mwinyi Road, Dar Es Salaam, Tanzania 6. MUMBAI (INDIA) - KASKAL FAÇADE PVT. LTD. 8th Floor, Hari Om IT Park, 5 Bhaktivedenta, Swami Marg, Mira Road, Thane 401107, India 7. KERALA (INDIA) - KASKAL FAÇADE PVT. LTD. 229/2, 1st Floor, Edakattil House, Cheerakada Temple Road, Aluva, Ernakulam Dist, Kerala 683101 8. DELHI (INDIA) – KASKAL FAÇADE PVT. LTD. Shanti Chambers 6/11B Pusa Road Basement Cabin A, New Delhi 110005 9. HARYANA (INDIA) – KASKAL FAÇADE PVT. LTD. Factory Kila No. 14, 2-1/4, Kadarpur Village Opposite CRPF Camp, Gurugram

COVER STORY Associate Partner

5

INFRASTRUCTURE

RELIANCE INFRASTRUCTURE Lalit Jalan, CEO

RInfra is uniquely placed in the infrastructure sector due to its diverse portfolio that includes Mumbai integrated power supply, Delhi electricity distribution businesses, Reliance Mumbai Metro, road assets, apart from the rapidly-scaling EPC business and defence forays. RInfra EPC Division has won an order worth Rs 3,675 crore from NLC India (formerly known as Neyveli Lignite Corporation) for two lignite-based CFBC thermal power projects of 250MW capacity each in Rajasthan. The turnkey contract includes setting up of complete plant: boiler, turbine, generator and balance of plant. RInfra-controlled Reliance Naval and Engineering (RNEL) launched the first two naval offshore patrol cessels (NOPVs) at its shipyard in Pipavav.

Similarly, its Mumbai Transmission business has commissioned five new GISbased EHV substations, which are truly a marvel of technology. RInfra is the first infrastructure company in the country to have launched an Environmental Mobile Monitoring system on the 140km stretch of Pune-Satara corridor.

6

RInfra EPC Division has won an order worth Rs 3,675 crore from NLC India for two lignite-based CFBC thermal power projects.

REAL ESTATE

SOBHA LIMITED Ravi Menon, Chairman

Backward integration includes an interiors division, a metal works and glazing unit, and concrete products unit.

28 CONSTRUCTION WEEK NOVEMBER 2017

Always in the news for the right reasons, Sobha Ltd launched six projects last two years and completed 13 projects since April 2016. In Q1 and Q2, it sold 1,023 units alone. Sobha Ltd has ongoing real estate projects aggregating to 40.92m sq-ft of developable area, and ongoing contractual projects aggregating to 7.96m sq-ft under various stages of construction. It has a footprint in 26 cities across India.

The backward integration model is one of its key strengths. This means that it has all the competencies and resources in-house to deliver a project from conceptualisation to completion. Backward integration includes an interiors division with one of India’s largest wood working factory, a metal works and glazing unit, and concrete products unit. Projects are built with precast technology involves casting concrete in a reusable mould. It is cured in a stable and controlled environment, transported to the site and fitted into place.

COVER STORY

REAL ESTATE

REAL ESTATE

7

8

GODREJ PROPERTIES Mohit Malhotra, MD & CEO

BRIGADE GROUP

MR Jaishankar, Founder CMD

One of the best practices used by GPL was to imbibe QMS with lean construction.

Development of detailed SOPs and responsibility matrices give clear direction to teams involved leading to clarity of work.

There is a stress on the Godrej Group philosophy of innovation, sustainability and excellence. GPL prefers to be known as a development company that combines a 119-year legacy of excellence and trust with a commitment to cutting-edge design and technology.

In order to overcome challenges, one of the best practices used by GPL was to imbibe QMS with lean construction. Development of detailed SOPs and responsibility matrices give clear direction to teams involved leading to clarity of work.

Aluminium wall form is one of the most suitable and proven technology for overall construction environment. Aluminium wall formwork is an excellent replacement to the conventional technology with marked advantages of superior quality finish of concrete surface, faster construction time and less requirement of skilled resources. GPL largely adopts the shear wall system in its structures and is currently exploring precast as the technology of future.

It was the first real estate company in the country to implement SAP and Salesforce.

Not complacent with resting on its laurels, the real estate company has now hosted S/4 HANA on the cloud.

Brigade Group is planning to invest Rs 3,000 crore over the next three years to expand its commercial property portfolio by 8 million sq-ft. The Bengalurubased property developer has office projects spread over 12 million sq-ft currently. It is constructing a 1.8 million sq-ft World Trade Centre in Chennai. It holds licenses to build World Trade Centres in five southern cities. Commercial assets account for 20% of the group’s portfolio.

It was the first real estate company in the country to implement SAP and Salesforce. Not complacent with merely resting on its laurels, the real estate company has now hosted S/4 HANA on the cloud. The deployment marks yet another industry first from Brigade Group that has been at the vanguard of a new technology frontier.

Brigade has 18 million sq-ft of residential projects under construction at present. It has a land bank of 545 acres, with a development potential of 49 million sq-ft.

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REAL ESTATE

OBEROI REALTY Vikas Oberoi, CMD

With six ongoing residential projects, Oberoi Realty is on a roll. The company believes in acquiring land only when it sees good prospects and not create land banks.

With a just-in-time model, Oberoi Realty has bought land only when plans were firmed up to develop. The overall strategy is to plan, build and execute fast.

As an organisation, they has been able to perform consistently due to their prudent financial management, strategic land acquisition, meticulous planning, emphasis on quality construction and an unwavering commitment to delivery. The company strongly feels that there will always be demand for products from reputed developers with a track record of consistent delivery.

The developer has an estimated 21.55 million sq-ft of ongoing and planned projects in residential, commercial, retail, hospitality and social infrastructure in multiple micro markets in Mumbai alone. In 2014, it tied up with international luxury brand Ritz-Carlton for its upcoming Worli hotel.

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The company feels there will always be demand for products from reputed developers with a sound track record.

INFRASTRUCTURE

HCC LTD

Arun Karambelkar, President & CEO

HCC is executing a section of Mumbai Metro Line III, involving 3,115m long twin-bored tunnels.

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Early this month, HCC Ltd in a JV with Al Fara’a was awarded the Rs 498 crore contract by MMRC for Pune Metro Rail. The company has been associated with Delhi Metro totaling 18.14km of tunnels and 13 underground stations. In Kolkata Metro, HCC has constructed 6.47km tunnels. Currently, HCC is executing a section of Mumbai Metro Line III, involving 3,115m long twin-bored tunnels and a section of Bangalore Metro Rail Project involving 6,340m long elevated corridor.

In August, it bagged IGCAR (Indira Gandhi Centre for Atomic Research) contract worth Rs 763.57 crore for construction of fast reactor fuel cycle facility. It will soon begin construction of the Bistan Lift Irrigation Scheme on turnkey basis and the 93MW New Ganderbal hydro power project. Over 100 years, HCC has constructed 25% of India's hydel power generation, 65% of nuclear power generation capacities, over 3,800 lane km of expressways and highways, more than 320km of complex tunnelling and over 365 bridges.

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INFRASTRUCTURE

GVK

Dr. GVK Reddy, Founder Chairman & MD

INFRASTRUCTURE

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ASHOKA BUILDCON Satish Parakh, MD

The highlight of the year was GVK-led Mumbai International Airport winning the bid for the Navi Mumbai International airport that will be built on 1,160 hectares on PPP mode with CIDCO.

The highlight of the year was GVK-led Mumbai International Airport winning the bid for the Navi Mumbai International airport that will be built on 1,160 hectares on PPP mode with CIDCO. Besides this, the conglomerate also has projects across roads & highways, hospitality, energy, and mining. In July, GVK Power & Infrastructure completed sale of its residual stake of 10% in Bangalore International Airport Limited to Fairfax India Holdings Corporation.

GVK Jaipur Expressway operates the 542.4 lane km six-lane Jaipur Kishangarh road project in Rajasthan.

This is India's first six-lane BOT road project and is a part of the Golden Quadrilateral. After setting up India's first IPP in Andhra Pradesh, GVK expanded itself to a slew of CCPP [combined cycle power plant (gas/naphtha based)], thermal and hydro power projects. GVK has over 2400MW projects under generation and development. It has established its nationwide presence in the hospitality sector with premium projects across Hyderabad, Chandigarh, Chennai and Mumbai.

With the Union government planning to bid out 25,000km road projects this year, Ashoka Buildcon is eyeing both hybrid annuity and EPC mode projects.

Having stuck to its core competency of building roads & highways and power projects, Ashoka Buildcon is one of the largest highway developers in the country with a portfolio of over 31 PPP projects. It has a presence in more than nine states and has executed several prestigious projects for national and state governments. The company is also active in power T&D sector with power projects in Maharashtra, Chattisgarh, Tamil Nadu & Bihar.

In May, it bagged a Rs 283 crore project from Jharkhand Bijli Vitran Nigam for urban electrification works. With the Union government planning to bid out 25,000km road projects this year, Ashoka Buildcon is eyeing both hybrid annuity and EPC mode projects. It is also constructing 22km of the Eastern Peripheral Expressway (EPE) at a cost of Rs 789 crore. Besides this, it has bagged a power project worth Rs 117 crore in Bihar, and a Rs 1,187 crore project from NHAI for widening of a stretch of NH5 in Andhra Pradesh. The project is on hybrid annuity mode under NHDP Phase V.

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REAL ESTATE

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PURAVANKARA LTD Ashish Puravankara, MD

In the last four decades, Puravankara Ltd has established two distinct and successful brands. The flagship brand Puravankara caters to the premium end of the spectrum, while the Provident brand is positioned in the premium affordable segment. The company has a presence in Hyderabad, Bangalore, Chennai, Kochi, Coimbatore, Mangalore, Kolkata, Mumbai, Pune and Goa with an overseas presence in GCC and Sri Lanka.

The Bangalore-based real estate developer has also chalked out plans to build its commercial office portfolio and significantly grow its affordable housing unit.

The company, which has done few office projects so far, plans to build 4-4.5 million sq-ft of commercial office space over the next few years. Recently, it signed a termsheet in Pune for a joint development project. Then there are the land parcels in its land bank which qualify for commercial development. It has about 13bn sq-ft under development in western and southern region (both Puravankara and Provident).

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The developer has chalked out plans to build its commercial portfolio and significantly grow its affordable housing unit.

REAL ESTATE

RUSTOMJEE Boman Irani, CMD

The company has carved a niche for itself with a portfolio that includes 12 million sq-ft of ongoing development.

The festive season did prove auspicious for Rustomjee. Going by various news, eager homeseekers have lapped up the festive offer at Rustomjee Paramount.

The project saw a significant increase in business. The company is developing properties in landmark locations such as Rustomjee Pinnacle (Borivali), Elita (Andheri), Rustomjee Elements (Juhu), Rustomjee Oriana and Rusomjee Seasons (BKC), and Rustomjee Urbania (Thane). As a developer, the company believes that form follows function. It lays special emphasis on the quality of its homes and expects everyone in the team to follow the rule of 'Better, not cheaper'.

The company has carved a niche for itself in the ever-growing real estate sector, with a portfolio that includes 14.32 million sq-ft of completed projects; 12 million sq-ft of ongoing development and another 28 million sq-ft of planned development in the pipeline, spanning across the best locations of Mumbai Metropolitan Region.

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INFRASTRUCTURE

INFRASTRUCTURE

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SPML INFRA

IRB INFRASTRUCTURE

Sushil Sethi, MD

Virendra Mhaiskar, CMD

The infrastructure development and water management company will execute projects worth Rs 6,000 crore in the next two to three years.

With over three decades of experience, SPML Infra has executed more than 600 projects be it provision of drinking water, improved sewerage facilities, better municipal waste management, building roads and highways and lighting up homes. SPML has established its leadership in urban infrastructure development on EPC, PPP and BOOT basis. The infrastructure development and water management company will execute projects worth Rs 6,000 crore in the next two to three years. Out of the total order book, water management projects comprise Rs 4,500 crore, while Rs 1,500 crore is for the power sector.

In June, it received new orders of Rs 642 crore for irrigation projects, water supply scheme and power infrastructure development. The new orders for water supply and irrigation projects are in Gujarat, Madhya Pradesh and Jharkhand while power infrastructure development is in West Bengal. It is also developing rooftop solar power plant, water and wastewater treatment projects for different states across the country.

In its 20th year, the company has achieved an unmatchable milestone of crossing 12,000 lane km. It also has almost 20% share in India’s Golden Quadrilateral project.

One of the largest private roads & highways infrastructure developers in BOT, IRB Infrastructure carries out EPC as well as operations & maintenance activities inhouse. The company currently has seven projects under operational BOT space; seven projects under O&M contracts as a project manager for IRB InvIT, and seven projects under various stages of construction.

In its 20th year, the company has achieved an unmatchable milestone of crossing 12,000 lane km. It also has almost 20% share in India’s Golden Quadrilateral project.

Last month, its SPV achieved financial closure for Rs 2,090 crore highway project in Rajasthan. CG Tollway, an SPV of IRB successfully achieved financial closure for its another BOT project of 6-laning of NH-79, Chittorgarh-Gulabpura bypass. The company’s construction order book as of June 30 stood at Rs 8,900 crore.

It is one of the first infrastructure developers to have successfully launched and listed India’s first ever InvIT IPO.

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IED F I T R E C D E LE CE U D E R S G N I BUILD AN Y B E S U Y G H C I H ENER ,W % 5 2 ED T A M I EST GY R E N SE S E L S N A UL E F M M R A H , D ME U S N ED CO C U D E R S N O I S S I EM R

E T T E B A D N A R O F E R U T FU .

A I D IN

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COVER STORY Associate Partner

REAL ESTATE

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ATS INFRASTRUCTURE Getamber Anand, CMD

ATS Infrastructure has the wherewithal to build homes that have green surroundings, modern architecture, world-class amenities and a host of convenient facilities.

That is because the company plays in the yet much-unexplored, verdant areas of Gurgaon, Mohali, Chandigarh, Dehradun, and now Ahmedabad. With a focused approach, the company continues to achieve new milestones and celebrate the trust of customers who have bought homes with them in the last two decades.

ATS Infrastructure witnessed a phenomenal growth with nearly 30 million sq-ft of residential space already delivered and 40 million sq-ft underway, nearly 7,000 units of flats delivered, 3,500 dedicated workforce, extraordinary in-house construction, security, facility and maintenance teams and a brand equity.

ATS also has its own in-house construction and post-delivery maintenance staff that handle everything from architectural drawings, plumbing and electrical work to the actual construction.

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ATS also has its own in-house construction and post-delivery maintenance staff that handles everything

REAL ESTATE

RUNWAL GROUP Sandeep Runwal, Director

The Reserve is a world where private residences and state-of-the-art amenities will give residents an opulent life.

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The group's track record encompasses the entire spectrum, from premium and luxury residential homes, retail mall development to integrated townships, large commercial office spaces and bespoke solutions. More importantly, the group has delivered 65 landmark projects that have helped settle over 10,000 families. Early this year, the group announced ‘Mumbai’s first Sky Garden’ at Runwal Elegante – its marquee developments in Lokhandwala, Andheri West. The developer obtained approvals from BMC to connect three towers at the terrace level, similar to the landmark Marina Bay Sands in Singapore. Despite being a luxury property, it scores high on the sustainability factor and has a significantly reduced impact on the environment.

The Reserve in south Mumbai is a world where private residences and stateof-the-art amenities come together to give residents an opulent life. The group owns and manages the largest retail mall chain in Mumbai.

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INFRASTRUCTURE

GMR GROUP

LODHA GROUP

GM Rao, Group Chairman

Abhishek Lodha, MD

It has about 30 real estate projects that are spread across the Mumbai Metropolitan Region, Pune, Hyderabad, and London, covering a total area of more than 40 million sq-ft.

Mumbai-based Lodha Group has changed the face of Lower Parel with iconic projects like The World Towers (world’s tallest residential tower), The Park, and Trump Tower Mumbai. Now, the largest real estate developer in the country is all set to redefine the way Mira Road lives. Established in 1980, Lodha Group is amongst the few multinational real estate brands, with its presence extending beyond just India to the United Kingdom.

It has about 30 real estate projects that are spread across the Mumbai Metropolitan Region, Pune, Hyderabad, and London, covering a total area of more than 40 million sq-ft. It also owns a land bank of 350 million sq-ft saved for future development.

Lodha Group had forayed into the London realty market in 2013 with the acquisition of the landmark MacDonald House at 1 Grosvenor Square in prime Central London from the Canadian government.

Lodha Developers sold properties worth Rs 2,300 crore during April-June period, its highest quarterly sales, beating demand slowdown in the real estate market.

The GMR Group-led Delhi International Airport has announced its plans to start the process of Delhi Airport capacity expansion.

The masterplan will be implemented in three modular phases.

GMR Group may have many interests ranging from energy to transportation to urban infrastructure. But what the company is primarily known for is its development of airports — not only in India, but also overseas.

In June, GMR Airports was selected to develop, operate and manage the new international Kastelli airport project in Crete island of Greece, in partnership with Greek infrastructure major Terna S.A. The Greece project will be GMR Group’s second in Europe after it developed Istanbul’s Sabiha Gokcen airport.

The new overseas project comes as a time when the debt-laden GMR group is in the process of restructuring its debt and divesting assets, mainly in the road and power sectors.

The GMR Group-led Delhi International Airport has announced its plans to start the process of Delhi Airport capacity expansion. The expansion process, as per the IGI Airport Master Plan 2016, will encompass airport airside, terminal and landside. The masterplan will be implemented in three modular phases.

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REAL ESTATE

AKSHAYA

T Chitty Babu, Chairman & CEO With six ongoing residential projects and four commercial projects, besides smart homes and villas, Akshaya Homes in Chennai has built more than 155 edifices in South India. Early this year, the developer launched its luxury residential project, Levelup, on Sterling Road in Chennai. The project will have 48 homes and was recently completed. In addition to the luxury project, the company expects around Rs 1,500-1,800 crore worth of inventory across Chennai, Tiruchi and Coimbatore will be available in the market in the next one year from Akshaya alone. The inventory ranges from residential and office spaces to commercial and retail use.

It has also formed a partnership with Disney to develop a themed-residential complex that is expected to materialise soon, has obtained the project license and is in final stages of completing project design for over 2,000 homes.

Interestingly, the company has taken the help of IT solutions to offer VR and AR (augmented reality) solutions to allow customers take virtual tours of homes.

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Early this year, the developer launched its luxury residential project, Levelup, on Sterling Road in Chennai.

REAL ESTATE

KALPATARU GROUP Mofatraj Munot, Chairman

With six ongoing residential projects, and one upcoming township, the Kalpataru Integrated Design Approach (IDeA) helps.

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Established in 1969, Kalpataru Group has interests in real estate development, property and project management, EPC contracting for power transmission and infrastructure projects including road projects, warehousing and logistics. For the purpose, it created group companies such as Kalpataru Power Transmission, JMC Projects (India), Property Solutions India, and Shree Shubham Logistics.

With six ongoing residential projects, and one upcoming township, the Kalpataru Integrated Design Approach (IDeA) helps. IDeA requires an integrated team process in which the design team and all affected members work together throughout the phase of the project and evaluate the design for cost, quality of life, future flexibility, efficiency, overall environmental impact, productivity, creativity and how the occupants will be enlivened. IDeA draws from the knowledge pool of all the stakeholders across the life cycle of the project from defining the need for a building through planning, design, construction, building occupancy, and operations.

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HIRANANDANI COMMUNITIES

Niranjan Hiranandani, Co-Founder & MD

MAHINDRA LIFESPACES Anita Arjundas, MD & CEO

Recently, Hiranandani Communities announced its intention to enter the affordable housing segment in a big way.

Hiranandani is best known for dotting the Powai landscape with state-of-the-art projects that dominate the skyline. Spread across 250 acres of land, nestled in the lap of serene hills and tranquil lakes, Hiranandani Gardens, Powai, is a perfect example of neo-classical architectural excellence.

Recently, Hiranandani Communities announced its intention to enter the affordable housing segment in a big way. It plans to construct 500 dwelling units at Oragadam integrated township.

In April, Hiranandani Communities announced that it has forayed into development of leisure homes with two projects in Khandala and Alibaug near Mumbai.

The developer is planning to invest Rs 6,000 crore in this venture. The company will develop its 800 acres - 550 acres in Khandala and 250 acres in Alibaug in several phases. To begin with, it is working on the launch of the first phase of both Khandala and Alibaug projects and this will include plotted developments for luxury villas.

In October, MLDL said it has partnered with HDFC Capital Affordable Real Estate Fund-1 (HDFC Capital) to create a Rs 500 crore platform which will invest in affordable housing projects across the country.

With 14.06 million sq-ft of completed projects, 4,000 acres of integrated cities in Chennai & Jaipur which house over 130 reputed global & Indian companies, 8.7 million sq-ft of ongoing & forthcoming projects, and quality housing at affordable prices via its brand 'Happinest', Mahindra Lifespaces (MLDL), is present in multiple city-clusters across India. It has a presence in the Mumbai Metropolitan Region, Pune, Nagpur, Nashik, Ahmedabad, NCR, Jaipur, Hyderabad, Bengaluru and Chennai.

In October, MLDL said it has partnered with HDFC Capital Affordable Real Estate Fund-1 (HDFC Capital) to create a Rs 500 crore platform which will invest in affordable housing projects across the country. The projects will be undertaken through a new entity called Mahindra Happinest Developers Ltd (MHDL). MLDL ventured into affordable housing in 2014, through its brand, Happinest. It has since launched two projects and has launched 1,600 units in these two projects and handed over close to 1,000 homes thus far.

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INFRASTRUCTURE

GAYATRI PROJECTS

TV Sandeep Kumar Reddy, Promoter & MD A strong contender from the South for infrastructure projects, Gayatri Projects has has bagged a Rs 1,483 crore irrigation project in Telangana for the formation of Sri Komaravelli Mallanna Sagar Reservoir with a capacity of 50TMC (thousand million cubic feet). The order is part of Kaleshwaram Lift Irrigation project.

Over the last couple of years, the infrastructure company has added Rs 11,000 crore to its order book and all in the road sector. It hopes to bid for more projects after the government announced the Bharatmala project.

The company has also gained an order for pre-development work contract for the Navi Mumbai International Airport. Cidco will incur the pre-development work costs. Gayatri Projects is also executing package 6 of the Eastern Peripheral Expressway (EPE) and developing 22km of road costing Rs 675 crore. Besides this, it is constructing one 120m bridge on the Agra Canal with 98 piles to depths between 22-26m and 1.2m diameters.

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The company has gained an order for pre-development work contract for the Navi Mumbai International Airport.

REAL ESTATE

K RAHEJA CORP

Kishore Bhatija, MD, Real Estate Development

K Raheja Corp signed an MoU with CII-Green Building Council to construct green buildings way back in 2007.

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Mumbai's K Raheja Corp has a six decade-long history in the real estate domain, a feat it has achieved due to its ability to stay ahead of the game and embrace new-age concepts such as green construction. Not only did it sign a memorandum of understanding with the CII-Green Building Council to construct green buildings, way back in 2007, but it has honoured this commitment by delivering Gold- and Platinum-rated buildings.

From residential to commercial and retail to hospitality, K Raheja Corp has it all covered. Whether it is South Mumbai's swanky luxury residences Vivarea, or the K Raheja Tower in BKC (Mumbai's new commercial hub) or even household names such as Shoppers Stop and HyperCity, the diversified developer has found success in all quarters. In the hospitality space, they have multiple ventures such as Renaissance, Powai; JW Marriott, Juhu; JW Marriott, Sahar; Marriott Whitefield, Bengaluru; and The Westin, Hyderabad, among others.

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INFRASTRUCTURE

TATA REALTY AND INFRASTRUCTURE

KOLTE-PATIL Rajesh Patil, CMD

Sanjay Ubale, MD & CEO

It is planning to enter into affordable housing project and increase its presence in real estate market of Mumbai and Bangalore.

Creating landmarks last 25 years, Pune-based KoltePatil has completed 1.3 crore sq-ft of developments in Pune and Bangalore. It is also present in Mumbai with some upscale redevelopment projects.

Currently, the realty firm is in discussion with global private equity investors to set up a real estate investment platform worth around Rs 500 crore to fund its future projects. It is planning to enter into affordable housing project and increase its presence in real estate market of Mumbai and Bangalore. It has signed a 3.8 acre redevelopment project in Mumbai’s western suburb. The company has so far developed and constructed over 50 projects, including residential complexes, commercial complexes and IT parks covering a saleable area of around 15 million sq-ft across its Pune and Bangalore operations.

The developer has also completed Phase-I of its 'Three Jewels' project comprising 812 apartments at Pune. Phase-I had been awarded Occupation Certificate (OC) and is now ready for possession.

TRIL has acquired a 13 acre land parcel from Tata Global Beverages through a JV for a mixeduse development project comprising commercial towers, high-street retail and residential apartments.

With the last few months seeing some big land acquisitions, Tata Realty & Infrastructure was not going to be left behind. Early this quarter, a joint venture of Tata Realty and Infrastructure Ltd (TRIL) and Standard Chartered Private Equity acquired a 47.5-acre plot at the Thane-Belapur industrial area, near Mumbai, for Rs 325 crore.

Early this year, TRIL, a fully-owned subsidiary of Tata Sons, purchased the Chattisgarh-based Durg Bypass road project for an enterprise value of Rs 800-850 crore. The two-lane project bought by TRIL is a 18.4km toll road, picking up 51.6% stake from its proprietor, Nagpur-based SMS Infrastructure.

TRIL is a 100% subsidiary of Tata Sons and serves as a real estate and infrastructure development arm. In the past, TRIL has acquired a 13 acre land parcel from Tata Global Beverages through a JV for a mixed-use development project comprising commercial towers, high-street retail and residential apartments.

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INFRASTRUCTURE

ITD CEMENTATION Adun Saraban, MD

ITD Cementation has worked in all the major ports and majority of the minor ports of the country. The company has built jetties for handling liquid and solid cargo, berths, wharfs and quays for handling general cargo/containers. Ship repair and ship building facilities are also part of its portfolio. In infrastructure, it has implemented five Golden Quadrilateral road projects estimated at around 500km. It pioneered the construction in India of a two-tiered flyover for Jaipur Metro. ITD Cem is also executing Mumbai Metro Phase 3 (Package 04), design and construction of underground sections, including three underground stations in a JV consortium.

As towns and cities grow, they need matching infrastructure facilities. However, creating new facilities is not easy as these conflict with existing facilities. The company has developed the technologies of pipe jacking, box jacking and microtunnelling. Use of this unique technology ensures that the normal flow of traffic continues even as new construction activities are in progress.

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The company has developed the technologies of pipe jacking, box jacking and microtunnelling.

REAL ESTATE

EMAAR INDIA Sanjay Malhotra, CEO

The Avenues and Grace are part of a 14-acre residential community.

The Esplanade is one of the largest housing developments.

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In September, Emaar India completed and delivered its residential projects, The Avenues at Esplanade and Grace in Chennai. This marks the fourth project delivery in 2017 by Emaar India. The Avenues and Grace are part of the vibrant 14-acre residential community, The Esplanade in North Chennai, which is one of the largest housing developments within the jurisdiction of CMDA. The company is poised to deliver 11,000 units by end of 2018.

Early this year, Emaar India announced the receipt of OC for the second phase of its premium luxury project The Palm Drive located on Golf Course Extension Road in Gurugram. Emaar India has raised about Rs 500 crore debt this fiscal and plans to raise another Rs 500 crore by March 2018 to meet construction cost of its ongoing and upcoming projects. It will launch five housing projects and one commercial project in Gurugram and has about 50 ongoing projects in Gurugram, Jaipur, Lucknow, Mohali and Chennai.

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L&T REALTY

Shrikant Joshi, CEO & MD

OMKAR REALTORS Babulal Varma, MD

In August, L&T Realty entered into an agreement with Nirmal Lifestyle Developers to jointly develop a nearly 20-acre land parcel in Mumbai's north central suburb.

L&T Realty is present across west, south and north India with residential, commercial and retail projects to its credit. Committed to create landmarks of excellence, it has built business parks, transit-oriented development like the Navi Mumbai - Seawoods Grand Central, and many such coveted residential buildings and complexes.

In August, L&T Realty entered into an agreement with Nirmal Lifestyle Developers to jointly develop a nearly 20-acre land parcel in Mumbai's north central suburb. The proposed development will be funded by L&T Finance to the tune of Rs 570 crore.

Its latest project, Crescent Bay, is Mumbai’s finest landmark comprising six residential towers. Each tower is built on an elevated podium with panoramic views of the city skyline and the Arabian Sea. Apart from 2 & 3 BHK apartments, it also offers 4 BHK apartments.

In the last few years, L&T Realty has streamlined its real estate development business by exiting and selling off certain projects and focusing on others.

With a background in construction and using the limited funds necessary, they managed to dramatically construct an eight storey building within eight months.

Omkar Realtors & Developers are synonymous with SRA-related projects in Mumbai. That’s because the promoters were determined to stay focused on this segment and unearth its potential. With a background in construction and using the limited funds necessary, they managed to dramatically construct an eight storey building within eight months. The project was Deep Residency in the Parel area of Mumbai, where pricing was as low as around Rs 1,800-1,900 per sq-ft, making it easy for Omkar to enter the market. The smooth execution of past projects has paved the way for the company to take on bigger projects. Ongoing projects include the luxurious Alta Monte, Malad; Meridia, BKC Extension; Vayu, Mahim; Ananta, Goregoan; and Crescent Bay, Parel, in partnership with L&T. Also, Forum Group from Kolkata has partnered with them for a new venture in BKC titled Serendipity. But the one project that is garnering the most interest is the highly talkedabout Omkar 1973 Worli.

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PIRAMAL REALTY

Anand Piramal, ED, Piramal Group In August, Piramal Realty, the real estate arm of the Piramal Group, completed Phase 1 of its commercial project in Kurla – Agastya Corporate Park. It expects a revenue of Rsₚ5,300 crore from its maiden commercial project. With a total investment of Rs 2,400 crore, including land and project execution costs, Agastya Corporate Park sprawls across 16.25 acres. Phase 1 of Agastya Corporate Park comprises three independent office buildings.

The developer has also acquired a 3.2 acre land parcel in Mumbai's suburb for Rs 153 crore from Nirmal Lifestyles. Piramal Realty has pegged its investment for Piramal Revanta at approximately Rs 1,800 crore. The company has awarded the project contract to Eversendai, a global organisation in undertaking turnkey contracts, delivering high-rise buildings, and infrastructure across Asian and West Asian regions. Founded in 2012, the company has around 12 million sq-ft of commercial and residential projects under development.

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The developer has also acquired a 3.2 acre land parcel in Mumbai's suburb for Rs 153 crore from Nirmal Lifestyles.

INFRASTRUCTURE

TATA PROJECTS Vinayak Deshpande, MD

In construction, it is currently executing various construction projects including a first-of-its-kind river rejuvenation project.

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From EPC to transmission & distribution to transportation and urban infrastructure, Tata Projects has executed several prestigious projects along the way. In August, the company announced that it had completed the Lucknow Secretariat to Hazratgunj underground tunnel boring work for the Lucknow Metro Rail Corporation. This was achieved in a seamless, disruption-free manner and in a short period of five months. The 812 metre-tunnel work was executed as an EPC project.

Currently, the business unit is executing complex rail and road projects which also includes the Dedicated Freight Corridor Project. The project is being executed using a mechanised track laying machine.

In construction, it is currently executing various construction projects including a first-of-its-kind river rejuvenation project. The business unit for urban infrastructure also offers smart lighting and security solutions for the smart cities segment.

It is currently executing the 'Smart Lighting' project in Pune.

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INFRASTRUCTURE

REAL ESTATE

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AL FARA'A INFRAPROJECTS Nitesh Gangaramani, Director, India

EMBASSY GROUP Jitu Virwani, CMD

Al Fara'a, in a JV with HCC, bagged a Rs 498 crore contract from the Maharashtra Metro Rail Corporation for the Pune Metro Rail Project.

Al Fara'a Infraprojects commenced its Indian operations in 2011. With an aim to deliver world-class engineering and construction services, it has executed construction projects including residential, commercial, multi-storied buildings of high-rise towers, healthcare, heritage structures, hotels, multiplexes, villas and shopping malls, etc. on an EPC basis, including the civil and MEP works, HVAC, fire-fighting, interiors, BMS, interior works, external development works etc.

Since 2011, they have carried out projects for the likes of Lodha Group, JP Infra, Patel Realty, Tata Housing, Prestige Group, etc. More recently, Al Fara'a, in a JV with HCC, bagged a Rs 498 crore contract from the Maharashtra Metro Rail Corporation for the Pune Metro Rail Project. Al Fara'a has a 49% stake in the JV, which aims to complete the project in 110 weeks. The contract is for the construction of nine elevated metro stations, and work involves general and structural civil works of the station buildings and architectural and site development.

Over the last three decades, the firm has developed over 6 million sq-ft of residential assets and 10 million sq-ft. under development.

Embassy Group has developed 40 million sq-ft of commercial, residential, retail, hospitality and industrial warehouse spaces and holds an extensive land bank of 1,000 acres across the country. Its operations span across six major markets. As one of the largest players in commercial office space, the group has delivered 30 million sq-ft of commercial properties. Embassy manages a complete and fully operational office portfolio in excess of 25m sq-ft with a mid-term office development pipeline in excess of 35m sq-ft.

In 2012, Embassy Group and Blackstone entered into a joint venture to form Embassy Office Parks – an entity aimed at creating office spaces and building business communities. Over the last three decades, the firm has developed over 6 million sq-ft of residential assets and 10 million sq-ft. under development. One of the recent ventures is the launch of Embassy Industrial Parks formed to address the challenges of companies grappling with building and managing industrial and warehousing spaces in a distributed market like India.

WE TURN VISION INTO REALITY www.kkholding.org 58 CONSTRUCTION WEEK NOVEMBER 2017

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Indonesia l Thailand l Hong Kong l Srilanka l East Africa l India

COVER STORY Associate Partner

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REAL ESTATE

KANAKIA GROUP Rasesh B. Kanakia, Chairman

In 2016, Kanakia Group made news and had the citizens of Mumbai in a tizzy when it announced that Zinedine Zidane would endorse Kanakia Spaces' Paris, its French-themed residential complex in Bandra-Kurla Complex.

In 2016, the company bought development rights for 0.5 million sq-ft on a Powai land parcel for Rs 400 crore. In the same year, it also acquired a 2.5-acre land parcel in the Kanjurmarg suburb of Mumbai from Windsor Realty. The developer paid about Rs 125 crore for the land parcel that was sold through a bidding process recently. The deal is one of the few land transactions on outright basis, given the ongoing trend of joint ventures and joint development agreements. The 30-year-old Kanakia Group seems to be trying to develop a reputation for building residential complexes based on western places.

Currently, the developer has seven upcoming projects and all of them are based in prime locations in Mumbai.

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In 2016, Kanakia Group bought development rights for 0.5 million sq-ft on a Powai land parcel for Rs 400 crore.

REAL ESTATE

MANTRI DEVELOPERS Sushil Mantri, CMD

In 2015, the developer forayed into Pune's residential segment with the launch of two projects and an investment of Rs 350 crore.

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In just 19 years, the group, with the spirit of innovation at its core, has carved a niche for itself as an industry benchmark for quality, customer focus, robust engineering, in-house research, uncompromising business ethics and the unswerving commitment to timeless values and total transparency in every aspect of its business.

Mid this year, Mantri Developers signed a definitive agreement with global investment firm KKR under which KKR will invest Rs 145 crore in a luxury residential project in Bangalore developed by Mantri Developers. The development spans 1.3 million sq-ft of premium residential apartments.

In 2015, the developer forayed into Pune's residential segment with the launch of two projects and a total investment of Rs 350 crore. The first project, Mantri Vantage, comprises three towers with a total of 306 units at Kharadi. The second, a premium project at Sopan Baug with 18 apartments, each around 4,700 sq-ft in size, is of a total value of around Rs 100 crore.

COVER STORY

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INFRASTRUCTURE

REAL ESTATE

40

PATEL ENGINEERING Rupen Patel, MD

SUNTECK REALTY Kamal Khetan, CMD

The Sawara Kuddu hydroelectric project envisages constructing a 10.45m high diversion barrage (PK Weir), and 11.145km long head race tunnel along with other appurtenant structures.

Founded in 1949 as an integrated infrastructure and construction services conglomerate in India, Patel Engineering has a strong presence in hydro-electric, transmission line projects, roads and canals, dams, and tunnelling. For instance, the Sawara Kuddu hydroelectric project located in between Hatkoti-Snail conceived is a run-of-the-river scheme on Pabbar river in Shimla district. The project envisages constructing a 10.45m high diversion barrage (PK Weir) near power intake, desanding arrangements and 11.145km long head race tunnel along with other appurtenant structures to house three Francis turbine driven generating units having an installed capacity of 37MW each.

The Ghatghar hydro electric project envisages construction of two reservoirs viz. upper reservoir MSL 750m. The lower reservoir 0 MSL 350m. and an adjacent underground power house.The scheme involves recycling of water between the upper reservoir and the lower reservoir with a vertical drop of more than 400m.

Sunteck has a presence in premium and luxury residential segment with close to 23 million sq-ft spread across 25 projects and four rented assets.

Sunteck Realty is known for its premium housing projects. Signature Island, Signia Pearl, Signia Isles, are premium developments that dot the skyline of BKC, Mumbai. In February, Sunteck Realty announced a new vertical to explore the option of value housing in the backdrop of government’s recent thrust on affordable housing. The developer is planning to invest up to Rs 1,000 crore over the next two years to develop these projects. Suntech Realty is also chalking out plans to ramp up its commercial lease portfolios.

Sunteck has a presence in premium and luxury residential segment with close to 23 million sq-ft spread across 25 projects and four rented assets. Of the said portfolio, the company added completed six projects with a developed area of about two million square feet comprising residential and commercial developments.

It has raised over Rs 650 crore from global financial institutions through QIP and promoter’s capital infusion.

The company will use the money raised to support growth through new land and projects acquisitions.

WE TURN VISION INTO REALITY www.kkholding.org 62 CONSTRUCTION WEEK NOVEMBER 2017

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Indonesia l Thailand l Hong Kong l Srilanka l East Africa l India

Project : GODREJ ONE, Mumbai Architect : Pelli Clarke Pelli Architects, New York Facade Consultant : ALT Cladding, Manillas

INDIA AWARDS 2017

Project : OMKAR 1973, Mumbai Architect : Foster+Partners, London Facade Consultant : BES Consultants

INDIA AWARDS 2014

INDIA AWARDS 2015

COVER STORY

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REAL ESTATE

TATA HOUSING DEVELOPMENT CO. Brotin Banerjee, CEO

Tata Housing Development Company (THDC) was established in 1984 and was a pioneer in its field, ushering the era of corporates foraying into real estate development. It resurfaced with a bang in 2006, and there has been no looking back. Banerjee has only taken it to new heights. Today, it is well known for its ethical practices, and quality of construction.

The company happens to be one of the few players in the industry with an exposure across the length and breadth of the country, from Gurgaon to Bengaluru and Kolkata to Goa. Its projects span residential, retail and commercial ventures, and it is involved in the entire spectrum of affairs, right from land identification and acquisition to project planning and designing, as well as marketing & sales, project execution, property services and estate management. Currently, the company boasts of around 70 million sq-ft in development, with another 19 million sq-ft up for development in the future.

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The company happens to be one of the few players in the industry with an exposure across the length and breadth of the country.

REAL ESTATE

ABIL GROUP Amit Bhosale, MD

In addition to its residential and commercial projects, ABIL has made its mark in hospitality with stellar projects.

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The Pune-based developer has indeed come a long way since Avinash Bhosale founded the company back in 1979. Besides shaping the Pune skyline, the company has grown to establish its presence in other cities, such as Mumbai and Goa. In addition to its residential and commercial projects' portfolio, ABIL has managed to make its mark in the hospitality space too, with stellar projects such as St Regis and W Goa. The company has also succesfully introduced uber-luxurious living to Pune. A case in point is the Verde Residences project, offering opulent apartments, smack in the middle of the city, in tony Kalyani Nagar. On the other hand, Avaanti Residences & Premium Commercial Spaces is a mixed-use development, which boasts the largest commercial space in its vicinity, strategically situated in one of the best commercial hotspots.

With its wings spread far and wide, the ABIL Group is on a steep growth trajectory, and one can definitely expect more from the junior Bhosale and his team.

COVER STORY

43

REAL ESTATE

CITY GROUP

Aniruddha Deshpande, MD City Group has designed the Gateway Towers. The twin towers have a stepped, futuristic design, and also include green terraces as well as sky bridges.

Pune's City Group is one of the leading real estate developers in the city. The company was established by Deshpande in 1996, and has since earned a reputation for its projects' unique designs and stellar construction methods.

One of its landmark projects is Amanora Park Town in Pune. This township has been designed by internationally acclaimed architects, including the likes of P & T Consultants, Singapore; MVRDV, Netherlands; and Walkers, New Zealand.

The vision behind building Amanora Park Town has been to achieve a balance between commercialisation and sustainability.

The development includes educational institutions, healthcare facilities, shopping zones, entertainment malls, gardens and meeting hubs, making for a complete lifestyle.

But that is not all. Amanora also comes with other infrastructural provisions such as sustainable electricity, water and gas supplies, and waste management.

As part of this development, City Group has designed the Gateway Towers. These towers feature a distinct design and are an example of new-age urban living in the fast-developing city of Pune. The twin towers have a stepped, futuristic design, and also include green terraces as well as sky bridges.

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REAL ESTATE

GERA DEVELOPMENTS Rohit Gera, MD

With a combination of design intelligence and customer care, Gera is surging ahead in its field of expertise.

Gera Developments began its real estate journey way back in 1970. Since then, the company has completed over 50 projects, across cities including Pune, Goa and Bengaluru, with approximately four million sq-ft of development carried out. The developer claims to be a dedicated end-to-end real estate organisation with in-house architects, engineers and construction crew.

The company is known for its constant spate of innovations and adoption of new techniques, which are often way ahead of their time. Notable among these are the fact that they are India's first developer to offer a five year warranty (since 2004), or that they have made India's first ChildCentric project, or even Pune's first intelligent building.

With a combination of design intelligence and customer care, Gera is surging ahead in its field of expertise. The company prides itself on combining innovation with experience and hard work, to conceptualise and realise projects that anticipate the needs of the people who will live or work in those spaces. One such project is Gera’s Isle Royale, a luxurious project of 3.5 & 4.5 BHK apartments and 5.5 BHK villas in Bavdhan, Pune. The project marries luxury and greenery, with each residence in this development promising a superior living experience. It’s no wonder that Isle Royale is rated among the top 5 residential projects in Bavdhan.

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COVER STORY

45

REAL ESTATE

DS KULKARNI DEVELOPERS DS Kulkarni, CMD

From 1980-2016, the DSK banner has been responsible for building close to 40,000 houses in Pune alone. Their DSK Dream City project, which is spread over 250-acres, aims to create a world-class township for quality living with a focus on sports and education. The Rs 8,000 crore mammoth project is situated on the outskirts of Pune city, along the Pune-Solapur highway. With the best in the business collaborating on it, the quality of construction is already setting a new benchmark for Pune. The township is going to house around 11,000 flats varying from one to four bedrooms, with 160-plus amenities on offer. Six-lane tree-lined roads of a 100m width will make transportation convenient, even as 32 pollution-free buses and special trams (from the Hong Kong Tramway Corporation Company) will ferry residents around. In order to bring in a healthy sporting culture, DSK Dream City will provide facilities for 36 sports, of which 24 happen to be full-fledged Olympiclevel sports and nine are professional academies.

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The DSK Dream City project is spread over 250-acres and aims to create a world-class township for quality living.

REAL ESTATE

PANCHSHIL REALTY Atul Chordia, Chairman

The Ritz-Carlton to be inaugurated next year will be one among the six hotels Panchshil has built and invested in, in the city.

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Whether it is long-standing edifices representing successfully completed ventures or ornate obelisks in the form of modern-day marvels, each structure bears testimony to Panchshil’s commitment to advanced technology. That is perhaps why, even 15 years after their inception, Panchshil remains synonymous with both quality of construction and luxury. The brand boasts an association with marquee names such as Philippe Starck in the form of yoopune, Kelly Hoppen for yoovillas, and of course, The Trump Organisation with India’s first Trump Towers.

The Ritz-Carlton, which is set be inaugurated next year and will be one among the six hotels Panchshil has built and invested in, in the city. The World Trade Centre Pune (WTC Pune), a part of the global brand – World Trade Center Association, is another landmark. Panchshil Towers, a LEED Platinum-rated venture, is not only the fastest-constructed, intelligently-engineered homes, but when completed will be the tallest luxury residential project of Pune.

COVER STORY

47

REAL ESTATE

DLF

Dr KP Singh, Chairman DLF is said to be credited with bringing in the concept of developing commercial complexes in the vicinity of residential areas.

Real estate stalwart KP Singh's company has a track record spanning almost 70 years. And DLF has managed to build and sustain its reputation for growth and innovation through that time period. The company presently holds a 249 million sq-ft development potential, with 19.1 million sq-ft of projects currently under construction.

DLF's primary business covers the development of residential, commercial and retail properties. The company follows a unique business model with earnings arising from development and rentals. In addition to this, its exposure across businesses, segments and geographies, helps to mitigate any down-cycles in the market. Starting with the development of 22 major colonies in Delhi, DLF is now present across 15 states and 24 cities in India.

In the residential market, the organisation works across three segments — super luxury, luxury and premium. The product offering comprises of a wide range, including condominiums, duplexes, row houses and apartments of varying sizes.

DLF is said to be credited with bringing in the concept of developing commercial complexes in the vicinity of residential areas. They have successfully launched commercial complexes across various locations in the country.

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REAL ESTATE

CENTURY REAL ESTATE Ravindra Pai, MD

With more than 7,000-plus afforadable homes, it makes sure that its commercial projects achieve LEED Gold or Platinum ratings.

Century Real Estate launched two projects in the last two years: Artizan Phase 2, a plotted development, in north Bangalore, and Indus Phase 2, a group housing project of 225 units in south Bangalore. It has completed three projects in the last year-and-a-half, and sold approximately 160 units. Using aluminium formwork for construction, the developer has a land bank of over 3,000 acres in Bangalore alone.

Founded in 1973, the company has a development portfolio of over 10 million sq-ft comprising hotels, office buildings, residences, educational institutions and integrated townships.

Century Real Estate was one of the early firms to introduce joint development concept in Bangalore realestate. Mainly focused on Bangalore real estate, it has eight residential projects under development and a strong pipeline of residential, commercial & warehousing projects in Bangalore.

It has achieved more than 5 mn sq-ft development and has a strong presence in education. With more than 7,000-plus afforadable homes, it makes sure that its commercial projects achieve LEED Gold or Platinum ratings. Century Real Estate as a brand reverberates loyalty, is connected on technology and powered by trust and quality.

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DG104 DOUBLE COMPOUND MITRE SAW WITH E580 WINDOWS TOUCH PC Sold To: Proud owner Ms. Ajax Engineers Pvt Ltd, Sri Lanka Profile system: SAPA, Belgium SBZ122/71 SBZ122/71 3 AXES CNC PROFILE MACHINING CENTRE Sold To: Proud owner Ms. Ajax Engineers Pvt Ltd, Sri Lanka Profile system: SAPA, Belgium TECHNICAL SPECIFICATIONS • Machining area up to 300 x 300 mm • Max. machining length without profile end machining, 4,170 mm • Max. machining length with profile end machining, 4,000 mm • X-axis traverse path 4,295 mm, Vmax. 120 m/min.

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COVER STORY

49

REAL ESTATE

DOSTI REALTY

Deepak Goradia, VC & MD Dosti Realty’s technique and planning has helped develop futuristic constructions.

With this line of thought, it transformed Antop Hill into dream land by creating ‘Dosti Acres’ in Wadala. After transforming Wadala as a destination Dosti Realty was among the first few developers to see the potential of Parel-Seweri as a residential destination. Stemming from its belief to always delight its customer by unique offerings, this project offered a unique view of Flamingos. The project was accordingly named Dosti Flamingos and all common area designs followed this theme.

Dosti Ambrosia offers buyers 'ready to move in' homes within the existing social infrastructure. The project's external facade and interiors are an architectural delight created by Hafeez Contractor. The grand entrance lobby, 40,000 sq-ft of podium gardens and rooftop swimming pool at the 38th level are the highlights of the project. The expansive 360 degree view from the terrace also underlines the easy connectivity that the project offers.

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Dosti Ambrosia offers buyers 'ready to move in' homes within the existing social infrastructure.

REAL ESTATE

NAHAR GROUP

Sukhraj Nahar, Founder & CMD

The company is expanding exponentially by constructing approximately 1.5 million sq-ft annually.

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The Nahar Group has created landmarks in the residential, commercial and Industrial segments and have pools at Worli, Lower Parel, Bandra, Versova, Goregaon, Bhandup, Mulund and other areas in Mumbai. It has established its repute in Mumbai and has footprints in Pune by developing “F“ Residences, in collaboration with FTV, Ahmedabad, Rajasthan and now in Chennai.

Established in 1973, the Nahar Group has developed 15 million sq-ft. of real estate projects. The company is expanding exponentially by constructing approximately 1.5 million sq-ft annually.

Nahar Amrit Shakti is the flagship project of the group in Andheri in Mumbai. It has over 40 high rises which extend across 125 acres of lush green landscape. One has the choice of 2, 3 & 4 BHK luxurious apartments and villa apartments within the township. The apartments are featured with terrace space, personal deck area, and even private garden.

PROFILE

A Global Foothold

K

K Holding is a multi-industry company that has more than 10 years of experience and has a wide range of expertise in commercial façade construction, hospitality, real estate, education and social sector and packed food.

The organisation now operates its business in seven regions (namely: Hong Kong, Thailand, Indonesia, Sri Lanka, East Africa and India), while always looking to expand and find other opportunities elsewhere.

Under the active leadership of Kapil Shukla, CMD, KK Group, KK Holding has managed to gain an enviable reputation for its quality services. This is evident with KK Holding receiving accolades from the International Standard requirements for Weather Performance and Structural Integrity.

KK Holding is focused on sustainable job creation. The way Kapil puts it: “Our mission at KK Holding is to create employment in rural and urban areas by operating in different industries to cater to everyone.”

As far as their projects are concerned, they undertake major projects in all areas of exterior finishes worldwide. They provide compelete solution of building façade and work from the pre-planning stage to project completion.

In fact, they have focused on design, fabrication and production of curtain walls. Their companies have actively spread the concept of ‘green designs’. They believe that one must pay more attention to the visual effects of the building, while giving prominence to various practical functions such as environmental protection, energy conservation, noise insulation, earthquake prevention and living conditions.

Design continues to be the driving factor for them; therefore, they have established a standard developer-oriented design system.

The company has a dedicated, professional and experienced design team with researchers and designers from across the globe. Based on the above, they have successfully achieved the integration of localisation and internationalisation for design.

CONSTRUCTION WEEK NOVEMBER 2017 73

PROFILE CONSUMER CONNECT

Cool Ideas Blue Star Limited has an advanced range of solutions on offer to fulfil requirements of residential, corporate as well as commercial customers.

B

lue Star is India’s leading air conditioning and commercial refrigeration company with over seven decades of experience in providing expert cooling solutions. It fulfills the cooling requirements of a large number of corporate, commercial as well as residential customers, as well as offers products such as water purifiers, air purifiers and air coolers. It also provides expertise in allied contracting activities such as electrical, plumbing and fire-fighting services, in order to provide turnkey solutions, apart from execution of specialised industrial projects.

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Blue Star has joint ventures in Qatar, Malaysia and Oman which undertake MEP (mechanical, electrical and plumbing) projects for residential, commercial and infrastructure buildings, and exports a range of products to the Middle East, Africa, SAARC and ASEAN regions. Blue Star’s other businesses include marketing and maintenance of imported professional electronic equipment and services, as well as industrial products and systems, which is handled by Blue Star Engineering & Electronics, a wholly owned subsidiary of the Company.

IN FOCUS - PROCUREMENT HEADS

THE RIGHT RESOURCES

BY MITALEE KURDEKAR & JAYASHREE MENDES

O

ften found working diligently in the shadows, procurement heads or purchase heads, as they are widely known in industry circles, are the true toil masters. Even though they work behind the scenes, they demonstrate prudent leadership skills, a trait that is valuable when one has to cut costs, maintain timelines and deliver a quality project, all at once. Not just this, procurement heads are also required to contend with sudden supply interruptions, cope with changing economic conditions, and embrace technology disruptions, along the way. In fact, the success of any real estate or infrastructure project, and ultimately company, hinges on its ability to source right.

Construction Week brings you face-to-face with dynamic procurement heads from India’s leading construction companies, and tries to uncover their strategies for success.

CONSTRUCTION WEEK NOVEMBER 2017 75

IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

ADANI TOWNSHIP & REAL ESTATE SUDARSON DAS AVP, PROCUREMENT

In case of disruption in the supply/price/ shortage of labour/ transport etc., we monitor the change in scenario.

Adani classifies their activities, broadly into two categories: core and shell structure (hard core construction); and finishing items such as flooring materials – tiles/ marbles/wooden flooring etc., windows (AI/door) and doors, and sanitary and CP fittings etc.

In the first case, all bulk materials (cement/steel/aggregate/sand/RMC etc.) are pushed to the contractor's scope (base price is put in to the PO and final price is reduced at the time of actual purchase).

On the other hand, in the second case, contractors are given free issue materials.

Purchase is guided by the budget Adani fixes, depending on the category of segments, such as mid/luxury/affordable. The architect's recommendation is used to shortlist the vendors and follow the restricted tender practice.

“In case of disruption in the supply/price/contingency, shortage of labour/transport strike/steady rain etc., we keep our execution temperament cool and follow a constant watch and monitor the change in scenario, and change our work schedule and redesign our work method with the best pragmatic approach,” says Das.

REAL ESTATE

AKSHAYA

VP, PROJECTS VALLINAYAGAM R The Chennai-based real estate organisation follows a systematic procurement process. They decide in advance what their annual procurement volume requirement will be. Larger and definite volumes provide vendors confidence and dependability. As a result, the cumulative requirement based on the business volume is assessed and planned for the year. These requirements are modified and scheduled according to the project needs. This also depends on the shipment convenience, enabling convenient logistics and lesser spends on transport.

“We use original manufacturers/vendors for our requirements. This provides the advantage of brand value and dependency. The manufacturers understand our requirement, and keep bettering their supplies,” says Vallinayagam R. Akshaya also monitors projects closely, in order to control the inventory held and set a minimum re-order level. This helps in managing funds, at the prioritised project/area. As far as challenges such as unplanned requirement; less time for delivery; single vendor for service/supply; environmental effect; and sudden increase in market demand are concerned; the company believes that they can be handled by enforcing procurement discipline, and using alternative products or suppliers.

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We use original manufacturers/vendors for our requirements. This provides the advantage of brand value and dependency.

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IN FOCUS - PROCUREMENT HEADS

INFRASTRUCTURE

AL FARA'A INFRAPROJECTS VINOD GOHIL VP, PURCHASE & PROCUREMENT

Cost effective and best quality material purchasing decisions comes from a technically sound purchase team, fair negotiations, as well as vendors who will deliver on time.

Gohil says that his company has implemented purchasing strategies in order to make cost effective and best quality material purchasing. “The idea of cost effective and best quality material purchasing decisions comes from an efficient and technically sound purchase team, fair negotiations, as well as vendors who will deliver quality goods on time and at agreed commercial terms,” he says. Having a central purchasing department makes for an effective strategy, leading to cost and time savings, given that all procurement activities are carried out at one location.

The purchase team reviews suppliers and service providers, in terms of their response towards RFQ (Request for Quotations), order execution time, quality of material, dealing with the end user or project team, etc. and gives ratings accordingly. Moreover, before finalising bigger value contracts or orders, the purchase team visits suppliers’ premises and studies their capacity, ability to execute the order, production facilities, and reviews past executed orders, etc. “The purchase team’s members regularly visit projects and get feedback from the operations team about services that we provide to them. In that sense, the purchase team always takes ownership of any issues and sorts them out completely,” suggests Gohil.

REAL ESTATE

ALCOVE REALTY AMAR NATH SHROFF CHAIRMAN

According to Shroff, the Alcove team exercises a simple theory for its procurement. The general procedure followed is to float the query/tender to the concerned manufacturers/vendors. Based on the responses, a comparison chart is prepared with rates and lead times. Further, the team negotiates with the party and arrives at mutually agreeable terms. However, before awarding the party with the contract/tender, they also take into consideration external factors such as their popularity, efficiency and goodwill.

They deal with contingencies and other challenges by maintaining a cordial relationship with all manufacturers and vendors. “We aim to award all reputed brands/ suppliers a chance within our projects. Further, we also make sure that the deals we enter into are mutually beneficial. In certain cases, due to unforeseen circumstances, such as a change in government regulations or natural calamities, the supply may be affected. In such situations, we prefer to take practical decisions based on discussions, as opposed to legal actions. This not only ensures support to the party, but in turn also aids in avoiding litigation hassles while nurturing a healthy relationship with the party,” concludes Shroff.

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We aim to award all reputed suppliers a chance within our projects. Further, we also make sure that the deals we enter into are mutually beneficial.

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IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

APARNA CONSTRUCTIONS & ESTATES VINAY KUMAR VP, MATERIALS

We have tactfully aligned our procurement strategy to reflect our brand ethics committed to building homes that are also sustainable.

Given the complexity of real estate, procurement is critical to every organisation’s corporate strategy as it involves acquiring goods, services and work that are vital to them. Having excelled in the industry for over two decades, Kumar is clear about the technical specifications and quantities of all raw materials and every finishing item of every project. Based on requirements, they conduct technical negotiations, followed by commercials for 2 to 3 projects at a time (since Aparna Constructions has 2 to 3 projects on hand at any point of time). This way, they are able to show quantity benefits to suppliers, strike and sign good deals for a win-win situation.

Simultaneously, the company has tactfully aligned their procurement strategy to reflect their brand ethics committed to building homes that are also sustainable.

Several operational factors influence procurement decisions. They have deployed market-tested solutions and improved operational efficiency to minimise supply and price disruptions. They remain clear about project schedules, and that enables them to plan material delivery on time in a true supply-chain mechanism. At the same time, better procurement processes not only help them stay ahead of the curve but also minimise risks that could possibly impact their productivity and profitability.

INFRASTRUCTURE

ASHOKA BUILDCON SANJAY LONDHE DIRECTOR AND CEO, PROJECTS

In the case of road projects, apart from machinery, material management plays a vital role, considering the huge cost of idling, if the required material is unavailable to the operations teams. This is especially true of cement, steel and bitumen.

“We have developed a long-term arrangement with major vendors for each project. This structure has helped us to ensure effective, continuous and uninterrupted supply of major materials. Nevertheless, backup arrangements with other vendors are also made in case such a necessity arises,” points out Londhe.

In the current scenario, any company’s stakes are much higher than just price sensitiveness, and also include loss due to idling of major materials. “In major projects, the per day sitting cost is to the tune of Rs 10 lakh or more. So it is really sensible to have a continuous flow, rather than optimising the cost of materials,” confesses Londhe.

Of course, their procurement team productively decides on the vendors in advance, considering their annual requirement of major materials. The leading infrastructure developer has a pan India tie-up for the supply of cement, steel and bitumen. As a result, hardly any shortages have been faced due to want of materials.

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We have developed a long-term arrangement with major vendors for each project.

This has helped us to ensure effective and uninterrupted supply of major materials.

IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

BRIGADE GROUP RAJESH NAIR ASSISTANT VP, PURCHASE

An effective procurement process should also consider delivery timelines & quality of materials especially in today’s RERA-driven industry.

Nair believes that effective procurement involves not just strategising well, but much more. Their company uses bulk purchasing, a strategy that has stood the test of time. It helps bring dividends of scale. Empathy with the team managing the construction/project sites is another aspect, which Nair refers to as ‘humane strategy’. The latter is less about strategy and more of aligning yourself with a larger organisational goal. An effective procurement process should also consider delivery timelines & quality of material especially in today’s RERA-driven industry, he says.

Brigade also looks at broadening the supplier base as an effective strategy to help manage cash flows and credit lines, and keep supplies going. One of the key, yet understated, strategies that they employ is to indigenise and develop products locally.

Empowering deserving suppliers within their vicinity has helped in quicker deliveries due to last-minute design changes and in return ensured supplier loyalty. Having multiple suppliers for bulk materials has assisted in dealing with challenges of both supply and price. Finally, advanced planning and distribution of orders to different geographies helps minimise disruptions and reduce contingencies.

INFRASTRUCTURE

DILIP BUILDCON DEVENDRA JAIN CEO & ED

One of India’s fastest growing infrastructure players, Dilip Buildcon has to rely heavily on a robust procurement strategy in order to keep pace with the volume of its projects under execution. Material requirement planning is done according to lots, hence resulting in the avoidance of any unnecessary piling of inventory. The process begins with source identification based on past performance of vendors; and proximity of suppliers to maintain service levels by minimising lead times.

An agile approval process is followed. Centralised procurement results in a higher negotiation power for better purchase rates; faster procurement by way of yearly contracts; consistency of quality and quantity of material; standardised procurement policies and clear conditions with business partners; as well as contractual purchasing for mitigating market fluctuations and reducing maverick buying.

With a primary focus on quality and serviceability, Dilip Buildcon believes in transparency in the procurement process by technology enablement through stateof-the-art ERP systems such as SAP; a GPS-enabled fleet to ensure on time delivery and prevent theft/adulteration; and backward integration including an owned fleet and in house facilities to ensure quality.

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Material requirement planning is done according to lots, hence resulting in the avoidance of any unnecessary piling of inventory.

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IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

EKTA WORLD ASHOK MOHANANI CMD

Ekta World is focusing on green projects, hence we also choose vendors and materials that promote ecofriendly products and processes.

Procurement is a critical function and employing an effective strategy is of paramount importance to a developer. The essence of a right procurement strategy is to keep the project cost in check. It warrants minimising costs, maximising quality, and ensuring timely delivery — all of which are critical to a good and profitable project. Amongst others, supplier optimisation is a key attribute, i.e. empanelling a minimum of six vendors ensures that prices and quality are kept in check to ensure smooth supply chain management. “Ekta World is focusing on green projects, hence we also choose vendors and materials that promote eco-friendly products and processes,” states Mohanani.

Like in all functions, purchase managers also engage in operational risk management to effectively counter price escalations and explore new products and markets. Often products used tend to get discontinued, creating a disconnect.

Furthermore, changes in taxation policy and regulations impact products and services drastically, and to counter this, vendor development is often used to enhance productivity and substantiate their efforts, processes and improvements.

REAL ESTATE

GODREJ PROPERTIES JAYANAND POTDAR CHIEF OPERATING OFFICER

The procurement department at Godrej Properties has developed a strategy in accordance with Kraljic Matrix. This includes a series of items, such as using the company’s purchasing power and placing high volume orders on ‘leverage items’ like TMT and cement; developing long-term supply relationships, analysing and managing risks, and planning for contingencies in the case of ‘strategic items’ such as imported marble and high-speed elevators; securing extended price validity with volume projections and looking at ways to control vendors in the case of ‘bottleneck items’ including fly ash, sand etc.; and following decentralisation at site for ‘non-critical items’ such as Indian stones, kitchen sinks, structural steel, etc.

In order to establish price stability and supply assurance, Godrej Properties has taken an initiative to establish a tie-up with vendors. “We now have fixed price contracts for a period of 12 to 24 months, in case of CP fittings and sanitary ware.

The procurement of tiles, marbles, elevators etc. is being done with price fixity of 24 to 27 months. This avoids any price disruption due to market forces,” states Potdar.

They also actively engage in vendor development, thus making sure that alternative options are always available, in case there are any issues from a particular vendor.

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We now have fixed price contracts for a period of 12 to 24 months, in case of CP fittings and sanitary ware.

IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

HIRANANDANI COMMUNITIES DR NIRANJAN HIRANANDANI CMD

Most material specifications are standardised, hence, vendors are aligned with specific requirements, facilitating a more integrated supply chain.

“Strategic Procurement involves planning to ensure timely supply of goods and/or services that are critical for a project’s success and our company’s ability to meet its core business objective,” says Dr Hiranandani. To ensure an efficient procurement plan, Hiranandani Communities engages in a variety of techniques. At the project inception stage, the procurement & contracting strategy is worked out in detail. This helps decide the modality of contracts like BOQ-based, lumpsum, design & build, etc. It also helps to identify the materials that needs to be procured, delivery timelines, costs etc. Based on the plans, the suppliers are evaluated and shortlisted.

Most material specifications are standardised, hence, vendors are aligned with specific requirements, facilitating a more integrated supply chain and resulting in a decrease in costs. Risk management is done through identification and elimination of ‘suicide bidding’. The company encourages local sourcing of materials, thus spurring the micro business around their projects. They are currently evaluating various e-procurement platforms for their suitability, which will help in faster turnaround time for the finalisation of bids. “We constantly add new vendors; we evaluate them on smaller assignments before providing them with a bigger assignment," he adds.

REAL ESTATE

IREO

PINAKI RANJAN BOSU DEPUTY VP, PROCUREMENT “Different items call for different strategies,” confesses Bosu. “While for some items the strategy is to go for a single source for the item, for others, it is to broaden your vendor base. Let’s take the example of cement. In our region, UltraTech is the only one who is able to give us this vital input in all the formats (bags, bulker etc.) that we need. They have nurtured our account and ensured that we do not get a single chance to have to go elsewhere. However, for steel, we cannot be dependent on only one source. Therefore, we work with all the primary steel manufacturers of the country,” he suggests.

One of biggest disruptions that happened recently was the introduction of GST. They planned ahead, by ensuring that raw material was available with the project team to continue uninterrupted activities at site, and the entire procurement team geared up to re-negotiate prices and release new orders for ongoing contracts.

Since there were a lot of contracts to be amended, work was prioritised keeping the project priorities in mind. Bosu believes that tips also come from good business partners. “There is no substitute for building and maintaining a good relationship with business partners,” concludes Bosu.

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While for some items the strategy is to go for a single source for the item, for others, it is to broaden your vendor base.

IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

K RAHEJA CORP SHABBIR KANCHWALA SENIOR VP

Auction systems such as SAP Ariba Reverse Auctions, Dutch Auctions, and SRM Sourcing are also used.

“We have adopted a strategic approach for effective procurement of materials,” says Kanchwala. Bulk purchase of materials as per the requirements of the project helps them lower procurement costs. In addition, they combine pan-India requirements to further negotiate costs with vendors. Pre-qualification and periodical vendor evaluation and training help close the negotiations in a timely manner. Further, the real estate player has optimised the standard sizes of each material to reduce wastages and inventory carrying costs. Quality standards are adhered to during procurement.

Also, pre-defined lead periods are maintained for timely procurement of materials.

K Raheja Corp follows a strict pricing policy with vendors through proper rate contracts and discount structures. They have implemented a Cash Discount Payment System (CD payments) so that vendors have substantial results in lowering the purchase costs. The team periodically evaluate the vendor’s performance and strengthen the procurement process. A feedback is shared with the vendors to improve their performance for future biddings. Negotiations are based on the quantity required for a project. Auction systems such as SAP Ariba Reverse Auctions, Dutch Auctions, and SRM Sourcing are also used.

REAL ESTATE

KUMAR CONSTRUCTIONS MEDHA GHANTE HEAD, MATERIALS AND PURCHASE

“When it comes to the cost of products and services, we do not go by L1, but look at lifetime cost and not immediate cost,” says Ghante, who has been with Kumar Properties for 18 years. She ensures that no compromises are made on quality.

Since the regulatory framework of RERA has come into place, timely delivery of the final product is of paramount importance. Furthermore, suppliers are becoming aware of this, thus helping improve things. Ghante says that the relationship with the supplier is of primary importance and it is necessary to stand by suppliers who have been supporting them for years together.

“Managing disruptions on price and supply have become a part of work, especially due to demonetisation and hurried GST implementation. Price disruptions are somewhat reduced, as suppliers have been with us for many years and rarely are there times to take advantage of disruptions. Ultimately, Kumar Properties tries to give the best services to its customers. For suppliers, we are the customers and we try to build the same faith and confidence in our suppliers that they would not be taken for granted, when it comes to their payment schedules. We build the same kind of loyalty with each other,” she proclaims.

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Managing disruptions on price and supply have become a part of work, especially due to demonetisation and hurried GST implementation.

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IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

L&T CONSTRUCTION AMIYA K VERMA HEAD, PROCUREMENT

An internal benchmark is quite handy for large organisations with multiple verticals, which throws up ‘heat maps’ of best achieved numbers in the past.

“In today’s competitive environment, it does not matter how a buyer has fared against budget numbers or against internal targets or perhaps previous buy costs.

What really matters is whether we have done better than our competition or not,” Verma convincingly argues. He believes that a correct external and internal benchmark is a must in order to achieve procurement efficiencies. There are various ways of finding such benchmarks, including help from consultants, published indices etc., but nothing can beat the buyer’s ability to network within the industry. Similarly, an internal benchmark is quite handy for large organisations with multiple verticals, which throws up ‘heat maps’ of best achieved numbers in the past and restricts buyers to raise a PO if the variance is high. Also, a portfolio matrix assists in spending the right amount of resources, time and energy on the correct buy segment, keeping the focus on what matters the most. In-sourcing helps use any resource available within the organisation (say during lean periods/dull business).

Supply disruptions are managed better in e-kanban. An end-to-end responsibility of the vendor works well, but with key indicators being monitored well and an escalation and resolution mechanism in place.

REAL ESTATE

L&T REALTY

SN SETH CHIEF OF OPERATIONS The real estate business in India is going through a revolutionary change post demonetisation, GST & RERA. There are continuous reforms in statutory laws to take care of consumer interest. The rule of the game has changed for all stake holders. There is a consolidation and the projects are becoming mega in nature.

“Real estate projects have a long duration with complex interdependent activities involving hundreds of suppliers and contractors. Neither delivery nor the cost can be projected. As a strategy, the supplier’s capacity to consistently supply, execute and deliver the project is the primary criteria while finalising any procurement. The projects are to be mechanised and automated for timely delivery,” states Seth.

It is also essential to keep track of the latest developments in the field of finishing materials and MEP at the design stage itself. For long lead items, specifically if the material is to be imported, sufficient time is to be allocated for deciding the specification and optimising the cost. The contracts should have proper deviation and dispute resolution clause to cater to future exigencies and market disruption.

Due weightage is given to the agency’s previously delivered projects and its financial creditability and sustainability.

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It is essential to keep track of the latest developments in the field of finishing materials and MEP at the design stage itself.

IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

LODHA GROUP

TIKAM JAIN PRESIDENT, PROCUREMENT

To tackle price disruption, Lodha may insert suitable escalation clauses and formulae in the contract to rationalise the price risk of both the parties.

“We put a lot of emphasis on two things i.e. a collaborative sourcing process and vendor relationships,” states Jain. The first one ensures that Lodha can identify its needs correctly and all relevant stakeholders are adequately involved in the process.

The second one ensures that vendors align with the company’s objectives of delivery and in return are well taken care of. “These two things have helped us deliver the unprecedented volumes that we have delivered so far. Additionally, we are an innovation-focused procurement team with a quest for continuous improvement.

This is true of everything – be it the product, people or process,” adds Jain.

There is no single pill here that can address every situation, he believes. Hence, they have category specialised people who know the dynamics of and risks involved in their respective categories. They apply different levers to deal with challenges of supply and price disruptions and other contingencies. For instance, to tackle price disruption, Lodha may insert suitable escalation clauses and formulae in the contract to rationalise the price risk of both the parties. Wherever they see a major risk of supply disruption, they either keep additional alternates deployed or on a standby or consider captive production arrangements.

REAL ESTATE

LOKHANDWALA INFRASTRUCTURE RAVI GAIKWAD GM, PURCHASE

Understanding the objective of the organisation and adding value in terms of quality procurement of material within the specific time period allotted and in the most competitive rate is important to Gaikwad. Further, understanding and implementing the system will widen the list of quality vendors and resources required for critical execution. Material planning involves studying trends and then meeting major suppliers for negotiations; building relationships with manufacturers for competitive rates; and exploring chances of entering into long-term contracts.

Inventory management has to do with the checking of existing stocks; crosschecking quantities to be ordered; and supplying material at the right time and in exact quantities to avoid blocking of funds.

They need to protect supply chains from disruptions, but the most obvious solutions — increasing inventory, adding capacity at different locations and having multiple suppliers — undermine efforts to improve supply chain cost efficiency. “We have done very little to prevent supply chain disruptions or mitigate the impacts. The solutions to reduce risk mean little unless they are weighed against supply chain cost efficiency. After all, financial performance is what pays the bills,” Gaikwad says.

Understanding and implementing the system will widen the list of quality vendors and resources required for critical execution.

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IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

MAHINDRA LIFESPACE DEVELOPERS TIRTHANKAR CHATTERJEE HEAD, PROJECTS

The team keeps a keen eye on fluctuations in market supply and demand with respect to materials with seasonal fluctuations, such as steel and cement.

In order to ensure optimised quality and achieve cost efficiency in their procurement process, Mahindra Lifespace Developers take a number of steps. Standardisation of different elements across projects is carried out, while maintaining design intent and keeping in mind evolving customer requirements. They exercise the option to outsource the procurement of select basic raw materials to leverage economies of scale. Partnerships with vendors of specialised equipment are sought to avail price benefits in lieu of increased volumes, together with payment terms. Continual evaluation and adaptation of procurement models based on detailed planning of projects is done, thereby striking a balance between scale, cashflow and inventory management. Also, they engage in collaborations with select suppliers to design and create futuristic finishing items, availing introductory price offers in the process.

The team keeps a keen eye on fluctuations in market supply and demand with respect to materials with seasonal fluctuations, such as steel and cement. For all other materials, they take case-by-case decisions to achieve balance between cash flow and inventory management. “Detailed and flexible planning is an effective way to maximise the advantages of optimised procurement costs,” believes Chatterjee.

REAL ESTATE

MANTRI DEVELOPERS ADITYA MALPANI GM & HEAD, PROCUREMENT

Mantri has done in depth research and taken customer feedback to arrive at their 'standards' for every category of project that they build. Standardisation helps in accumulating volume, negotiating a better price, and logistical advantages of maintaining lower inventory at site and transferring the inventory to other, similar category projects, if required. “We have a stringent selection and empaneling mechanism for any contractor or supplier. This is driven by a detailed, tangible, pre-qualification process. As a strategy, we deal with limited but the best suppliers, thereby helping us achieve speed, transparency, quality and cost,” says Malpani.

The developer follows the n+1 strategy. They always have an alternative solution for every purchase. In order to ensure timely delivery of materials, Mantri has a strong integration between sites and the procurement team, enabled through a software called Primavera, which gives real-time information of the progress to every site. “We understand that prices of all goods are market-driven. In order to counter volatility, we do a thorough research, analyse trends, update our historical price database and then enter into long-term rate contracts and mutually capped escalation percentages,” explains Malpani.

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As a strategy, we deal with limited but the best contractors and suppliers, thereby helping us achieve speed, transparency, quality and cost.

IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

MARATHON GROUP URVESH MEHTA VP, PROJECTS

To gain the benefit of best possible pricing, we undertake continuous research for alternate products, manufacturers etc.

“At Marathon, one of our core values is to respect resources and create exponential value,” professes Mehta. In terms of their procurement processes, they do so by undertaking technical evaluation of resource requirements, assessment of vendor service framework and product evaluation along with cost benefit analysis before proposing it to the concerned stakeholders. Value engineering is adopted to assess the value of the product vis-a-vis the budget proposed. The availability of alternate products in the market is explored by conducting factory visits, in order to check suitability of products. The entire supply chain process is driven through ERP. This helps in outlining the milestones right from defining the budget, raising indents for procurement, creation of purchase orders, and preparation of GRN, up till vendor invoice processing. These steps aid in improving productivity and in data analysis.

“To gain the benefit of best possible pricing, we undertake continuous research for alternate products, manufacturers etc., as a mechanism to keep ourselves abreast with the latest and best available options and optimise our decisions and cost. As a part of forecast measure, we apportion an escalation in the budget while planning the product procurement,” Mehta points out.

REAL ESTATE

NAHAR GROUP MANJU YAGNIK VICE-CHAIRPERSON

“As Nahar Group, we deal in quantum, hence we prefer to deal directly with the vendor company understanding that prices are different for each builder,” says Yagnik. She further adds that these dealings also depend more on long-term relationships, consumer demand and performance of the project.

The market is highly dynamic, and consumers form an integral part of this ecosystem. It is therefore important to understand and respect their perception, which is constantly changing. “There are many products which are not tried and tested in the market and consumers would like to have in their apartments, but as the establishments are new and due to the after service facility, it becomes difficult to account for it in terms of finished products,” she adds.

However, when it comes to generic products like steel and cement, and core products required for construction, these always work on a long-term relationship. Cost freezing is done with the vendors for certain spans of time, and this depends on market conditions as well. The major components among core products are steel and cement, while finished products include plumbing, electrical, tiles, automation, marbles, lifts, modular kitchens and air-conditioners.

There are many products not tried and tested and consumers would like to have, but as the establishments are new, it becomes difficult to account for it.

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IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

OMAXE LTD AJAY MISHRA PURCHASE HEAD

Selection of right and capable vendors, as well as constant evaluation of their performance and financials helps us in strategising.

“Procurement of materials has always been a challenging area, which not only has set rules but also requires a very dynamic approach,” says Mishra. For Omaxe, the right kind of procurement starts with proper material planning, which includes in depth knowledge of activities where materials are to be used. This enables them to list the right product features and specifications without which the procurement process cannot be initiated. Effective procurement starts with proper rate negotiation through different methods, which must be foolproof, says Mishra. Of course, this means a lot of competition in negotiations to get the best rate. They follow the QRD formula, which ensures a quality product with least rate and timely delivery.

“QRD remains the backbone of effective procurement. Selection of right and capable vendors, as well as constant evaluation of their performance and financials helps us in strategising. The uses of modern tools like e-bidding and offering of attractive payment terms also plays a vital role in the procurement field,” he suggests.

Monopoly and frequent repeat orders often create dictating vendor terms. Mishra recommends having a vast vendor base and having orders tried by rotating them between different vendors.

REAL ESTATE

OMKAR REALTORS & DEVELOPERS RAJIV BATURA VP, ENGINEERING

Omkar follows a systematic strategy to address procurement needs. The makers of mega luxury projects begin with a spend analysis, identifying project requirements and using economies of scale. Supplier selection is based on product quality, delivery, pricing and service; it is done while keeping in mind the best brands/technology for material/service selection. “An effective procurement process allows a company to look for innovative products that they can offer consumers. When this happens, the business may also be able to secure exclusive deals with suppliers,” confesses Batura.

Integrating key suppliers into the longer-term demand planning helps bring in value to the business, he asserts. Omkar uses the e-auction platform for ensuring that the best price is guaranteed. Supplier risk assessment is continuously managed. Risks evaluated include financial strength, quality control, technical aptitude, and supply chain. “We need to protect supply chains from disruptions. The most obvious solutions for dealing with such scenarios are replenishing inventory well in time; selecting suppliers having manufacturing/supply base capacity; having multiple suppliers; and alternative readiness in quickest possible time,” sums up Batura.

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Supplier risk assessment is continuously managed.

Risks evaluated include financial strength, quality control, technical aptitude, and supply chain.

CONSUMER CONNECT

Trends and innovation at R+T Asia 2018 For the first time, the show’s “industrial building” will showcase the latest technology and materials for industrial construction.

T

he rise of China and the Asia Pacific region has attracted worldwide attention for the last several decades, as the area has become a prominent and major international market through One Belt/One Road Initiative and BRICS countries. From March 20-22, 2018, R+T Asia brings its impressive global showcase for roller shutters, doors/gates, windows, and sun protection systems to Shanghai, one of the most dynamic and strategic cities in the world.

The 2018 show will be the most comprehensive show in its history. With continued attention to new materials, new technologies, and new applications, the show is committed to creating new value for the industry.

With the region’s rich high-quality trade resources, exhibitor satisfaction increases every year. Many of the most-desired booth locations have been already booked; 70% of the 2018 exhibiting space as booked onsite at the 2017 show. The exhibition area of R+T Asia 2018 is expected to reach 50,000 square meters, attracting more than 520 exhibitors and more than 30,000 professional visitors.

Highlights of the sun-protection sector The dynamic “Soft Outfit” summit will gather more than 1,000 soft decoration designers to discuss the integration of window decoration and interior design. Leading companies will be involved in 2018, such as Yuanzhicheng Home Textile (a top soft decoration supplier for high-end hotels), Midtex Textile (a leading exporter of high-end window fabric), DOMA Window Covering, Zhongyang Window Blinds Article, Zhengzhou Mingyang Curtain Accessory Materials (the leading brands in the construction and retail market) Itelisi, Juyada, and others.

The market for Smart Home products is estimated to reach 122 billion dollars by 2022. In March, R+T Asia will bring the latest technology to the Smart Home􀄑􀄑􀄑􀄑􀄑􀄑􀄑􀄑􀄑􀄑g big brands like Dooya, Wistar, and Zigbee—the only global, standards-based wireless solution that can improve comfort, security, and convenience for consumers.

Furthermore, China made significant progress in energy saving in the past twenty years. Other Asian countries also put a high priority on energy efficiency, and they have set ambitious efficiency targets.

The energy efficiency policy brings tremendous benefits to the exterior sun protection sector as the Chinese government seeks to achieve its ambitious energy conservation and emission reduction

targets. This is helping companies such as Zhongheng Building Material, WuYue Building Energy Saving Technology, Hewei Technology, Lucheng Industrial and Trading, Dulun Metal Products, YongFeng Aluminium, Shuangcheng Awning Products, and many others.

Once again, the traditional sector featured a varied range of products. Several companies have announced their participation, such as Yuma, Mingcheng, Xidamen (window decoration products), A-OK, NOVO (drive and operator products), and Jie Shu, Zhen Fei, De Shenglong (accessories and machinery). Many international brands, such as Shadelab (Italy), Phifer (USA), Para (Italy), Gale (Australia), and Wintec, Dongwon, Industry, Sambo, Xera, Daekyeong (as part of the Korean Pavilion), will be able to meet with thousands of buyers as well as potential global partners.

More door & gate companies A great year is coming for the doors & gates sector. Exhibiting at the 2018 show will be traditional brands (such as Baisheng, Sookow, Paddor, Deper, Weidawaite, etc.) and new brands (such as Nabco, Jinkaixuan, Heng Jie, Hongfa, Moteck, etc.). Their participation is bringing more attention to the show, along with companies such as Russian Doorhan, Aland, and Marsdekor. The show is expected to feature new industrial and automatic doors as well as new mechanical and electrical hardware products.

R+T Asia 2018 will benefit from new medical reform policy, which should bring long-term growth opportunities and the development of the warehousing, hospital, and hotel markets. The hospital forum, which covers hospital construction design and hospital door applications, will be an interactive discussion platform for over 200 hospital owners and exhibitors.

For the first time, the show’s “industrial building” will showcase the latest technology and materials for industrial construction. It is expected to attract over 500 businesses that specialize in several sectors such as hazardous chemicals, medical, and finance, boosting business opportunities. Helping to expand the hardware and mechanical sector is the China Hardware and Electromechanical Chamber of Commerce.

The global meeting place for all these developments is R+T Asia, in March 20-22, 2018, at Shanghai New International Expo Center. To know more, visit http://rtasia.org.

CONSTRUCTION WEEK NOVEMBER 2017 95

IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

PANCHSHIL REALTY SANTOSH BHEGADE VP, PROJECTS

Enquiries are made globally, and finally, sourcing is done across multiple countries and geographies, especially from Europe and North America.

“Just like in any global organisation, the role of procurement in Panchshil Realty has undergone a transformation over the years,” states Bhegade. “Procurement is not merely purchasing, but is considered a strategic function, which helps increase profitability. As Panchshil is firm in its commitment to deliver a global product to its customers, quality is our number one priority while procuring goods and services as well as when choosing suppliers,” he declares. The procurement process begins with understanding the requirement. After this, enquiries are made globally, and finally, sourcing is done across multiple countries and geographies, especially from Europe and North America.

Their procurement strategies focus on fair pricing, right sourcing, best quality, precise quantity and timely delivery to the right internal customers. The internal teams at Panchshil, be it import-export, legal, finance or site-execution, work very closely along the supply chain to ensure that timelines are met. Extensive market research is carried out and past data is studied thoroughly to set off pricing risks. They make it a point to maintain benchmarked alternatives offering similar quality and pricing, which they can fall back on, in case of delivery delays and failures.

REAL ESTATE

PARADIGM REALTY PARTH MEHTA MANAGING DIRECTOR

Procurement management as a process is followed diligently across projects. The process goes from planning procurement management to close procurements to very precise. “In any project, there are several agencies that are involved. These agencies work in tandem to complete the work according to specification, so basically, procurement management is nothing but people management. Logistics is an important part of procurement management, which is an issue in India, but planning ahead helps. All our procurement managers are avid planners and the credit for timely completion of work is entirely theirs,” says Mehta.

The company approaches challenges as risks. Risk management involves foresight. Although it is not very easy to identify risks in projects, their experienced project managers understand the process of risk management and report every single issue which is occurring in the project process flow. These issues get resolved immediately. One cannot eliminate the threat of unknown risks. “Contingency response strategy plays an important role in saving any unnecessary delay in project completion. But that cannot be planned ahead. Working on contingencies is a matter of experience and we have stalwarts to mitigate risks,” Mehta finishes.

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Although it is not easy to identify risks in projects, the experienced project managers understand the process of risk management and report every single issue.

IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

PRESTIGE GROUP

VIBHAV TOMAR SR. VP & CHIEF PROGRAMME MANAGER (HOSPITALITY)

Global sourcing is not without risks. They have lengthened supply lead times, increased logistics costs, supplier delivery concerns, and quality can be a issue.

It is common for large developers to adopt a global sourcing strategy. It helps them reduce overall cost structure and make available new technologies and capacity. "Often domestic suppliers lack capacity and/or are not making the necessary investments to stay competitive. It helps to establish alternative sources of supply so as to reduce risks," says Tomar.

Prestige often looks for access to new designs or specialised intellectual capital, and superior quality. This is because they know that suppliers often invest in due technology and capacity to attract global business.

One reason it has adopted global sourcing strategies is because it helps the developer develop and implement a plan, take a multi-country approach, move more spend to “low cost countries”, develop a plan beyond cost savings, create effective local procurement offices, and develop a strategy to mitigate risk.

Companies that save on costs need to ensure new suppliers will last over time, help new suppliers to grow with you, and add new suppliers for additional products. Global sourcing is not without risks. They have lengthened supply lead times, increased logistics costs, supplier delivery concerns, and quality can be a issue.

REAL ESTATE

PURANIK BUILDERS AMIT SINGHAL DEPUTY GM

Puraniks Builders, which has been in the real estate business since 1968, lays a great deal of emphasis on quality, being on time and ensuring utmost customer satisfaction. In order to achieve the same, the procurement strategy is of paramount importance and plays a vital role in the successful execution of projects within the budgeted cost. For this purpose, they indulge in scientific analysis and based on these analyses, the procurement strategy is employed while keeping market trends in mind. “We have adopted a centralised procurement strategy, with quantum in mind, which starts with the identification of sourcing, segmentation or rationalisation of suppliers, based on capacity & meeting quality standards and their consolidation over a period of time, with relationship management and competitive behavior among suppliers,” claims Singhal.

A real challenge has been market volatility as well as change in government policies over time. “We have encountered disruption in supply and prices over time, which we have dealt with strategically by employing price equilibrium, dual sourcing, tiered approach to suppliers or optical allocation procurement strategy, and maintaining contingency plans for various situations,” he confirms.

We indulge in scientific analysis and based on these analyses, the procurement strategy is employed while keeping market trends in mind.

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IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

PURAVANKARA LTD SRIKANTH SRINIVASAN PRESIDENT, PROCUREMENT

Standardisation of materials specifications along with consolidation has helped us enter into long-term price arrangements.

The procurement strategy for each item category is created keeping in mind the short-term and long-term trade-offs. At Puravankara, the same revolves around two guiding principles: consolidation and standardisation. The consolidation process has helped to negotiate better prices by consolidating requirements of projects (across geographical locations). Here, the off-take is planned for the current/next year and by freezing the rate for the duration of the entire project. The large volumes resulting from consolidation have provided a good leverage for them as a buyer, helping to negotiate competitive prices and derive savings on purchases of all bigticket items. On the other hand, standardisation of materials specifications along with consolidation has helped them enter into long-term price arrangements.

“It is not just about cost for us – it is about the best value for our organisation (which includes cost), that brings sustainable success to us, our suppliers and sustainability to the most important stakeholder – our client,” states Srinivasan.

As an organisation, the developer has been able to mitigate most of the risks encountered in dealing with supply and price disruptions. This is through a combination of long-term price agreements, rate contracts and vendor management.

INFRASTRUCTURE

RELIANCE INFRASTRUCTURE

PIYUSH CHATURVEDI SENIOR VP, CORPORATE PROCUREMENT & LOGISTICS Chaturvedi follows a step-by-step approach to procurement. First, he believes in the thorough understanding of internal customers’ requirements through a need validation format and analysing the same with the present market scenario and existing supplies and services. Based on the final requirement of internal customers, a floating enquiry is sent to all the concerned vendors/suppliers in India and abroad. This is followed by the empanelment of potential suppliers/vendors in Reliance’s vendor portal after proper due diligence or a physical visit to their premise. Finally, they get commercial offers and then carry out negotiations with the concerned empanelled vendors in India and abroad, using a digital platform or IT tools to get the best products/services at the most competitive prices.

Continuous efforts are made to attract suppliers/vendors from across the globe for supplies and services, irrespective of requirements. Standardisation and consolidation of products and services is carried out across the group companies to gain a price advantage based on volume. Finally, the company chooses to point at least two vendors for each supply/service, in order to have healthy competition and ensure uninterrupted supplies and services during the contract period.

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We carry out negotiations with the concerned vendors in India and abroad, using a digital platform or IT tools to get the best products/ services at the most competitive prices.

IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

RUNWAL GROUP PRASHANT MEWADA DIRECTOR, OPERATIONS

The procurement team constantly updates and reviews MIS for hard negotiations, but it is fair and reasonable so that the vendor understands our needs for value.

Runwal Group opts to formalise the process of gathering information centrally, and leverages its consolidated data for cost effective purchasing decisions from an optimum mix of vendors, who could deliver the best possible quality services at an optimal price, on time and at mutually agreed terms. They also ensure a good relationship with existing vendors. However, they believe in continuous upgradation by developing processes that assist vendors and work hand-in-hand by aligning actions consistently that result in establishing long-term objectives.

“The procurement team also constantly updates and reviews MIS for hard negotiations, but it is fair and reasonable so that the vendor understands our needs for value, but still wishes to do business with us. We get the best vendors, who provide reliable supplies of quality products,” says Mewada.

They also ensure a strong master agreement so that vendors are contracted for providing agreed services at a given price. Finally, the company believes in avoiding mal-administration of inventory across projects, by classification of materials and ensures ordering only when stocks need to be replenished and makes sure that the stock is kept at its optimal.

REAL ESTATE

RUPAREL REALTY AMIT RUPAREL MD

The procurement of materials is a continuous and creative process, where understanding the project needs and creatively evaluating your requirements are two sides of the same coin, believes Ruparel. A number of factors are responsible for effective procurement. Supplier optimisation is key, and hence the procurement manager/head chooses a diverse yet optimum mix of vendors with a variety of terms and prices. The prices and delivery time of each are then compared, and the vendor with the most suitable terms and optimum prices is selected. They also go in for global sourcing, thus expanding their area of procurement and viewing the world as one huge market. This not only provides variety, but also helps in creating a number of permutations and combinations to help identify the best out of the rest.

Green purchasing champions the need for recycling and purchasing products that have a positive impact on the environment. Finally, vendor development includes allocating time specifically for developing processes designed to assist vendors. “At any time, a situation may arise where a company is dependent upon just one supplier for its products, and the vendor development practice helps make the process easier and smoother,” states Ruparel.

Supplier optimisation is key, and hence the procurement manager/ head chooses a diverse yet optimum mix of vendors with a variety of terms and prices.

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IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

SHREE NAMAN GROUP SUNDAR RAJAN HEAD, PROJECTS DEVELOPMENT

Our efforts are to procure from source as we target production capacity, rather than having dealers give us a chance to have predominantly uniform pricing.

According to Rajan, strategic procurement is the process of creating alignment that establishes the long term strategy (of the company) for action by which the procurement function fulfils its mission. He further believes that it also entails the transformation of an organisation’s mission, goals, and objectives into measurable activities to be used to plan, monitor and control the budgets and timely completion of projects. The various methods employed for procurement by their group are working on a 3-5 year plan, clubbing the requirements of various stages of planning and design; standardising functional products across the program/portfolio with different categories such as budget, regular, classic, premium, luxury etc.; production capacity buying instead of product; partnering with vendors with win proposals or growing together; and backward integration.

The company deals with vendors using transparency and formulae with fluctuation points as parameters. For instance, the finalising of prices for aluminium products is done by way of linking NALCO or LME pricing with the agreed formulae.

“Our efforts are to procure from source as we target production capacity, rather than having dealers give us a chance to have predominantly uniform pricing,” Rajan says.

REAL ESTATE

SOBHA LTD

SRIKANT KULKARNI EXECUTIVE VP “Procurement is a big challenge, given that over 7,000 materials are required to be procured to complete a building. It is very important that proper planning has to be in place to ensure that all materials are supplied on time. At Sobha, we indulge in central planning for all major A and B class items like tiles, marble, lifts, bathroom accessories etc., and quantities are confirmed for the entire duration of the project, and it is ensured that those are all delivered on time,” says Kulkarni.

There are certain items like steel and cement, where the procurement is done on monthly basis since these items are highly volatile in terms of price. The introduction of GST should be a boon, in the sense that there is a possibility of cost reduction of around 7-8% across many categories of materials, suggests Kulkarni.

To ensure the quality of material, the southern real estate major directly gets involved with suppliers and as far as possible avoids intermediaries. “We have a very innovative technical team, which is constantly in touch with suppliers to adopt new technologies. Our success in the precast unit is a unique example in this regard,” he adds.

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There are certain items like steel and cement, where the procurement is done on monthly basis since these items are highly volatile in terms of price.

IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

SPML INFRA

MALAY KANTI CHAKRABORTI VP, PROCUREMENT & COMMERCIAL

Our emphasis is on quality and availability of equipment, and our internal procurement team is well informed about the market trends and innovations.

SPML Infra is a infrastructure development company with a focus on the EPC business across the entire life cycle of operations in sectors like water, power, environment, smart city and infrastructure. With the objective of timely procurement of materials at project sites, SPML Infra has promoted healthy competition among suppliers for transparency, efficiency and economy in procurement to cater to their need for better quality and versatile machinery and equipment, as required for the size and complexity of the projects that they are executing.

“Our emphasis is on quality and availability of equipment, and our internal procurement team is well informed about the market trends and innovations to keep the pace of the project execution as per our strategic planning,” says Chakraborti.

Of course, the timely delivery of equipment in sync with the construction progress requires planning in great detail and any mismatch results in delays.

Usually, price fluctuation of raw material in international markets, plays a significant role in determining the price of major items. Wherever an escalation clause is available, the same covers it. In firm price contracts, when unprecedented huge fluctuations happen, they are discussed with the supplier and amicably settled.

120,000 m2 of ideas.

Plenty of space for innovations.

With 10 exhibition halls and an area of 120,000 m², R+T is the world’s biggest showroom for roller shutters, doors/gates and sun protection systems.

Here you will find new ideas and innovative products. Come to the trade fair and find out how you can give your business additional impetus.

27 February – 3 March 2018 Messe Stuttgart, Germany www.rt-expo.com CONSTRUCTION WEEK NOVEMBER 2017 101

EVENT REPORT

Trade fair visit made easy ― Everything at a glance: www.rt-expo.com/tradefair

Discover the worldwide trends for roller shutters, doors/gates and sun protection!

More technology, more knowledge, more networking: R+T 2018 will showcase the fascinating power of innovation. What is presented here on all aspects of roller shutters, doors/gates and sun protection will set international standards.

As a specialist visitor at R+T you can find out everything you need to know on technology, trends and products.

You will experience groundbreaking novelties live on a surface area of 120,000 m2 in ten trade fair halls. You can take part in an intensive exchange of ideas and opinions with the most important experts and make valuable contacts. R+T thus creates the longterm basis for good business. We look forward to seeing you in Stuttgart – where you can expect to see:

Doors/Gates:

Roller shutters: Dynamic, intelligent, automatic – and getting faster all the time. Top exhibitors from around the world will show their drive and control solutions for the coming years. It’s worthwhile looking out for the latest trends, as roller shutters have long been more than just providers of darkness. They also protect against intruders, and make the design of houses and apartments more energy-efficient.

Don’t forget: A modern roller shutter, with its control system, motor-powered operation and sensors, provides allround comfort.

From functional building elements to long-term, protective decorative features – Doors and gates are becoming more energy-efficient, safer and more convenient. At R+T, you can experience surprising and technically outstanding drive and radio technology. In this regard, the trend is towards individual solutions that are both safe and sophisticated at the same time. The trade fair will provide an insight into diverse products and options for use in the area of doors and gates.

In this context, themes such as fire and smoke protection, safety, energy and sustainability will not be neglected.

www.becker-antriebe.com Hall 7, Stand 7A12

www.elero.com Hall 3, Stand 3A12

www.gfa-elektromaten.com Alfred Kärcher Hall (Hall 8), Stand 8C41

www.hunterdouglas.com Hall 7, Stand 7B32

www.roma.de Hall 5, Stand 5A52

www.somfy.com Hall 5, Stand 5A32

www.warema.com Hall 3, stand 3B24 Oskar Lapp Hall (Hall 6), Stand 6D11

www.weinor.com Oskar Lapp Hall (Hall 6), Stand 6C22 Oskar Lapp Hall (Hall 6), Stand 6C32

Sun protection:

Key players in the sector and hidden champions combine attractive designs with pioneering technology. Here too, the focus will be on energy saving. Whether sun protection on the outside or the inside – the top companies in the industry will showcase their ideas for greater thermal comfort and energy efficiency.

Furthermore, at R+T you can obtain information on current themes such as automation, façade integration and networked systems. At the same time, the diversity of designs and constructions will open up entirely new design opportunities in planning and implementation.

The full programme: Why R+T is worthwhile

From world market leader to hotbed of innovation – over 900 exhibitors at R+T 2018 will highlight what‘s happening in the sector. Here are 4 reasons why you should not miss R+T: 1. Innovations and trends: Every three years, the most important novelties are presented at R+T. The trade fair is the largest innovation platform in the areas of roller shutters, doors/gates and sun protection. Nowhere else are there so many exciting products on show.

2. Practical tips and information for your work: Numerous forums, workshops and special shows will provide knowhow and information on new trends and challenges in the industry.

At R+T, you can exchange ideas and opinions with experts on current developments in areas such as building automation, energy efficiency, safety and comfort.

3. A hands-on trade fair: New solutions and innovative products can be experienced and intensively examined live at R+T. The framework programme will contribute to the experience with product demonstrations and workshops.

4. Strengthening networks: At R+T, representatives from the sector will meet in a relaxed atmosphere. Contacts can be maintained and forged

almost incidentally in the ten trade fair halls. For the upcoming event in 2018, over 60,000 visitors from around 130 countries are expected – which guarantees a large number of interesting encounters.

Become part of our network Read interesting interviews with experts or discuss news from the sector with us: www.rt-expo.com/newsletter_en www.facebook.com/rt.stuttgart www.twitter.com/rt_tradefair

27 February – 3 March 2018 Messe Stuttgart, Germany www.rt-expo.com

IN FOCUS - PROCUREMENT HEADS

REAL ESTATE

SUNTECK REALTY DR JALAN VP, HEAD, PROCUREMENT

The procurement team must match the speed of technological advancements and keeping track of innovations taking place all around.

“The world market has shrunk and it is now outsourcing across the global scenario; and unless the procurement team is on the move to match the speed of technological advancements and keeping track of innovations taking place all around, it’s not possible to maintain sustainability of growth in the business,” says Jalan.

Besides keeping abreast with the latest innovations, there are other parameters that Sunteck follows for procurement. They begin by negotiating outsourcing deals through global tenders; ensuring optimisation on credit terms and effective control on ancillary expenses. Besides this, they look at tax incidence and options available on its effective reduction; attain knowledge of substitute products; control inventory, engage in waste reduction and increase efficiency. Vigilance on quantity checks with the budget estimates is followed; in addition to strategising so that the delivery time matches with execution planning and material requirements; and the use of an IT/ERP database to check past procurement rates and source. Direct access to manufacturers helps. To counter contingencies, Jalan advocates the need for a fully secured contract defining the maximum possible terms and safeguarding clauses within the available legal framework.

REAL ESTATE

TATA HOUSING NIHAR GANDHI VP, PROCUREMENT

Choosing the right contracting model for each project, along with the correct quantity and cost budgets with a wide pool of good quality suppliers and capable contractors are key to a cost effective buying procedure, believes Tata Housing.

“We support our vendors with large volumes by consolidating the requirement for a longer term. We change the tenure of our contract, basis the volatility in the price of commodities,” states Gandhi. There is a special team tracking global markets to procure the best quality product at a good price. Reverse auction, tier down pricing, value engineering and innovation are some techniques adopted.

Ever increasing cost of material and services is the biggest challenge for any business. “At Tata Housing, we have central procurement and contract cell with a pool of category experts from the industry, who have been continuously and consciously putting efforts to bring more and more efficiency in cost, so as to keep the organisation covered against the risk of cost disruption/escalations. We practice and use various techniques, negotiation tools and have a very systematic, structured way of sourcing,” he adds. With advanced planning and scheduling, they are able to ensure that material is delivered just in time.

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We have central procurement and contract cell with a pool of category experts, who put in efforts to bring in more efficiency in cost to protect us from any escalations.

IN FOCUS - PROCUREMENT HEADS

INFRASTRUCTURE

TATA PROJECTS

R RAVI SANKAR VP & HEAD, SUPPLY CHAIN MANAGEMENT

Strategies include aggregation of bulk commodities for better volume discounts; long-term firm price contracts with cement suppliers; and quarterly firm price contracts for structural steel.

Tata Projects’ supply chain organisation is structured into category-based procurement viz., Category 1 – all bulk commodities; Category 2 – catalogued/engineered products; Category 3 – engineered packages; Category 4 – sub-contracting.

Strategies include aggregation of bulk commodities for better volume discounts; long-term firm price contracts with cement suppliers; quarterly firm price contracts for structural steel. Also, aggregation of engineered products and sourcing from identified suppliers through rate contracts for volume discounts, is done. Pre-bid tieups with package vendors and transition from large contractors to medium/small contractors are being followed. “All these strategies support our cost efficient and quality procurement against budgeted costs,” says Sankar.

Vendor capability and performance evaluation processes ensure a reliable vendor base. Their annual vendor meet (Synergy) and vendor satisfaction survey reinforce the continuous engagement with partners and provide opportunities for the organisation to understand supplier concerns, if any, and redressing the same. “Being an EPC organisation, Tata Projects endeavours to secure back-toback terms with supplier partners to mitigate and minimise the risk to the organisation,” he concludes.

REAL ESTATE

THE WADHWA GROUP MUKESH JAITLEY DIRECTOR, PROJECTS

Jaitley proudly claims that timely project completion is of essence. “We chalk out our strategies for effective procurement in all our business practices and adhere to pre-determined budgets and timelines. It is our endeavor to ensure innovation and improve quality to offer the best of the best. Moreover, we focus on managing relationships and on reducing the risks and providing security of supply while keeping costs at a minimum. The Wadhwa Group leverages technology to achieve affective procurement in our business,” he further suggests.

They strive to engage with like-minded suppliers. When suppliers have a thorough understanding, they provide support in periods of economic changes. Moreover, they look to build trusting relationships as they would help in the risk management process while sourcing. This also leads to added support from suppliers, who provide materials through contingency plans. “With new dynamics, companies adopt Just in Time procurement. Here, bulk orders are placed, however delivery is staggered as per project requirements, which ensures obtaining material without compromising on quality and design variations for several items. This policy aids in better cash flow management and effective business practices,” shares Jaitley.

With new dynamics, companies adopt Just in Time procurement.

Here, bulk orders are placed, however delivery is staggered as per project requirements.

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CURTAIN RAISER - EXCON 2017

NEW-FOUND TEETH Zealous. That is how we would sum up what construction equipment manufacturers feel about Excon 2017.

BY JAYASHREE MENDES

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D

uring the road show co-hosted by CII and ICEMA, Anand Sundaresan, member of Excon 2017 steering committee said that the event should see over 1,000 exhibitors including 300 from abroad. “The mega event is set to put India’s construction equipment industry, which is expected to grow from $3 billion in 2016 to $5 billion by 2020, on the global map,” he added. Spread across 2.50 lakh square metres area, Excon 2017 will take place from December 12 to 16 at the Bangalore International Exhibition Centre.

Speaking of this year’s prospects, VG Sakthikumar, MD, Schwing Stetter Sales & Services, and chairman of Mechanisation Committee, BAI, says that the government announcement of Rs 5.35 lakh crore BharatMala Pariyojana to construct 34,800km of highways and concrete roads will help the growth of concreting equipment. “The construction of metro rails in Delhi, Pune, Nagpur, Bengaluru, Mumbai, Chennai, and Ahmedabad, will also drive business,” he adds.

On components, Suresh KV, country head, ZF India, said that CE components such as gearboxes for mining applications, travel gearbox GPTs used in excavators, crawler cranes, are much in demand. With the Centre’s focus on development of infrastructure, there will be steady growth in the business of CE as as well as commercial vehicles.

Shalabh Chaturvedi, head marketing, CASE India, affirmed that the boost with a renewed focus on road building grew the market for CE by 16% in 2015, and 39% in 2016. “However, there is still a massive amount of work yet to be done, and this will call for large volumes of equipment. Considering the prevailing conditions and other foreseeable factors, we expect the market to follow an upward trend in the coming years.”

ROADS, INDUSTRIAL CORRIDORS, AND SMART CITIES WILL NEED SUBSTANTIAL AMOUNTS OF MECHANISATION TO FULFIL THE AMBITIOUS TIMELINES. WILFRIED THEISSEN CONSTRUCTION WEEK NOVEMBER 2017 107

CURTAIN RAISER - EXCON 2017

Most graders are imported and suit the requirements of their home countries.

THE INTERNATIONAL QUALITY OF TYRES IS ACHIEVED BY USING QUALITY RAW MATERIALS THAT ARE PROCESSED THROUGH ADVANCED TECHNOLOGY. RAJIV PODDAR

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Recent news tells us that projects that were launched by the government a year or two ago, have now come up to the mobilisation stage. Companies like Electromech who cater directly to the requirements of the infrastructure construction industry by supplying cranes for precast, metro rail, bridge building, irrigation projects, etc., are happy that such initiatives has led to a build up of a virtuous growth cycle that was missing past few years. Tushar Mehendale, MD, Electromech, says that besides all the above, there is visible capacity utilisation. He added, “The scope and size of infrastructure projects is increasing day by day. What used to be take a year previously, now needs to be done in a few months. The focus is on adopting newer construction techniques that will speed up work. This has also led to demand for high-end specification equipment.”

CURTAIN RAISER - EXCON 2017

The outlook for 2020 is still very bright. India’s potential is clear, and the drive to improve infrastructure and energy supply will unquestionably facilitate further growth in the economy and the construction equipment industry, says Dimitrov Krishnan, VP and head of Volvo CE India. “We are seeing the highest levels of demand for excavators, compactors and pavers for road building projects and associated industries. For other sectors, such as mining and general construction, activity levels have not been so high,” he added.

Speaking about policy changes, Ramesh Palagiri, MD & CEO, Wirtgen India, said that introduction of GST has put CE in the 28% bracket. The market saw a slowdown in July and August, but September and October has treated us well.

“Though sales have not touched expected figures, there has been an uptick. September to March are peak seasons for construction, we expect sales to go up,” he added.

CONSIDERING THE CONDITIONS AND OTHER FORESEEABLE FACTORS, WE EXPECT THE MARKET TO FOLLOW AN UPWARD TREND IN THE COMING YEARS. SHALABH CHATURVEDI

THE FOCUS IS ON ADOPTING NEWER TECHNIQUES THAT WILL SPEED UP WORK. THERE’S A DEMAND FOR HIGH-END SPECIFICATION EQUIPMENT. TUSHAR MEHENDALE

One can expect to see novel equipment at Excon this year.

GOOD TIMES AHEAD In al this, the morale of the industry has improved considerably. Particularly, companies that have a long track record are still suffering from bad debts and underfunding. Jasmeet Singh, head of corporate communications and external relations, JCB India, says while new policies were introduced by the

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The L150H is a versatile equipment specially for coal mines.

government, what matters to us is the policy change from BS3 to BS4. “This is even applied to every 4-wheeler and since loaders also fall under 4-wheelers, there was some confusion. Moreover, CE falls under 28% GST, which means we are in the highest slab so that impacted business for some time,” he said.

Wilfried Theissen, MD of Putzmeister India, says that the outlook for the concrete equipment has never been better.

Roads, industrial corridors, and smart cities will need substantial amounts of mechanisation to fulfil the ambitious timelines set by the government. Over the last couple of years, it has worked to make products lighter, safer and environmentally-friendly, reduce energy consumption and help customers avoid accidents on the road and on the job site.

Whatever said, the main demand driver for the CE sector is the continued emphasis on infrastructure development.

The sector has been under intense focus through development of roads & ports, modernising railway networks, building new airports in tier II and III cities, expansion of irrigation projects in select states, water supply projects, inland waterways, Swachh Bharat and river cleaning projects. Dheeraj Panda, director and head, excavator business unit, Sany India, says that this has led to the creation of a huge demand for machines that are efficient as well as cost effective, as the expectations from the project participants are high. “The momentum is likely to be maintained till 2024 and we are optimistic about the prospects for the CE sector. The BharatMala Pariyojna programme is expected to give a fillip to the demand with a cash infusion of Rs 5.35 lakh crore,” he added.

Appasaheb Bhosale, business head, Universal Axis Lifting Solutions, said that in concrete equipment, his company has developed high capacity concrete

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THE MOMENTUM IS LIKELY TO BE MAINTAINED TILL 2024 AND WE ARE OPTIMISTIC ABOUT THE PROSPECTS FOR THE CE SECTOR. DHEERAJ PANDA

Volvo is seeing the highest demand for CEs now.

CURTAIN RAISER - EXCON 2017

batching plants in stationary as well as mobile series. Under vertical material handling, it has Universal Axis Lifting Solutions. It hopes to do well with the newly introduced rack & pinion hoists for small height and affordable range of rebar & material lifting machines.

Palagiri said that work on the large projects such as smart cities and Sagarmala will only happen post Q2 2018 or even after that. “In fact, EPC contracts for roads & highways that have been announced is where the action is for CE makers.

New projects such as the Mumbai-Nagpur 8-lane highway worth Rs 40,000 crore will see work happening in full swing in 2018. We are now focussed on customer support because we have supplied exponential number of equipment last two years as compared to the earlier few years. The only new product from our side has been the VÖGELE wheeled paver SUPER 1403,” he added.

DEVELOPED TO SUIT About 60% roads in developed nations are multi-lane expressways, national and state highways. The corresponding number for India is a meagre 6% or 256,749km roads across the length and breadth of the country. On the same lines major district roads (MDR)/other district roads (ODR) constitute 30% road length in developed countries and 36% in

WE ARE SEEING THE HIGHEST DEMAND FOR EXCAVATORS, COMPACTORS AND PAVERS FOR ROAD BUILDING PROJECTS. DIMITROV KRISHNAN India. Finally, village roads (VR) and unsurfaced roads constitute 10% of the road length in developed countries and a whopping 58% or 2,749,805kms of roads in India. Simply put 95% of roads in India are small single to double lane roads while the remaining 5% are the larger ones requiring bulky machines for road making and maintenance. Speaking about specific equipment, Sachin Nijhawan, VP and business

For CE sector to take off, work has to begin on new projects such as the Mumbai-Nagpur 8-lane highway or the Bharatmala project.

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WHILE NEW POLICIES WERE INTRODUCED

BY THE GOVERNMENT, WHAT MATTERS TO US IS THE POLICY CHANGE FOR 4-WHEELERS FROM BS3 TO BS4.

JASMEET SINGH BKT is known for its R&D and the company has made giant leaps overseas.

head, Mahindra Construction Equipment, says that most motor grader brands available in India are either imported or made

by MNCs in India and are designed to suit the requirements of their home countries. “These machines are brought in and sold here without actually understanding the requirements of the Indian market. Most of them are huge, expensive and grossly under-utilised since the market for these machines is restricted to a few large players catering to 5-6% of roads in India. This oversight ensures that the sale and utilisation of these machines is restricted to the big players and a small market. For catering to the remains 95% of the market, these machines prove to be bulky and expensive,” he added.

Another company known for its off-highway tyres, BKT’s joint MD Rajiv Poddar says that quality conscious users who adhere to stringent conformity standards in countries like Europe, America, Middle East and Asia prefer BKT as their supplier. The international quality of the tyres is achieved by using the foremost quality of raw materials that are processed through the most advanced and developed technology. The company recently launched an ultra advanced range of tyres for high speed cranes. The tyre 445/95 R25 enables heavy high speed cranes to journey at speeds of

THOUGH SALES HAVE NOT TOUCHED EXPECTED FIGURES, THERE HAS BEEN AN UPTICK. SEPTEMBER TO MARCH ARE PEAK SEASONS. RAMESH PALAGIRI

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Sany has an extensive manufacturing facility at Chakan, Pune.

CURTAIN RAISER - EXCON 2017

80km/hr. “Each product passes over 450 stages of tests.

The result of this rigorous practice helps us have the lowest claim ratio in the industry,” he added.

RECENT INITIATIVES Considering that it is not possible to introduce new products at regular intervals like the auto industry, Chaturvedi says that small tweaking and course corrections are regular affairs. CASE India introduced ‘Eagle Eye’ for enhancing the performance and efficiency of the machines. This is an Asset Monitoring System that combines internet, cellular and GPS technologies. The system helps to keep an eye on every detail such as real time location of the machine, operating hours, cumulative hour metre reading and warning text alerts for critical parameter.

CE makers are smiling as the rental market continues to grow and they expect the trend to continue. Cost remains one of the most important factors for buyers, but the purchase price is only a part of what constitutes a machine’s overall lifetime cost. Equipment owners and contractors in India have developed sophisticated models for calculating “cost per tonne” or “cost per km”, and this considers a range of factors, including purchase price, operating costs, productivity levels, anticipated maintenance, depreciation, resale value, and more.

Having realised this, Volvo CE is driving change with relation to smart technology. Krishnan said the company has

THE CONSTRUCTION OF METRO RAILS IN DELHI, PUNE, NAGPUR, BENGALURU, MUMBAI, CHENNAI, AND AHMEDABAD, WILL DRIVE BUSINESS. VG SAKTHIKUMAR set itself four key technology challenges that they call Triple Zero and 10x: zero emissions, zero accidents, zero unplanned stops and 10x higher efficiency. “We have a clear focus on electro-mobility, intelligent machines and total site solutions. The 10x higher efficiency goal is directly connected to the electrification of construction equipment and site optimisation, which will dramatically reduce energy consumption,” he added.

CE makers are also looking at disruptive products and here Mahindra CE has the motor grader that is set to change the way more than 90% of roads in India are being constructed. With the affordable pricing of G75, even small and medium players can comfortably enter the road construction market which has been traditionally ruled by the larger players due to its cost intensive nature.

Schwing Stetter India launched a slew of products in material handling and earthmoving sector in 2015, industrial and environmental technology solutions in 2016 and partnered with Gomaco pavers and Einsite for IoT solutions in 2017.

Sakthikumar said the company is also launching new products. New technologies to be introduced during EXCON 2017 are stationary concrete pump SP 1015 D/HD and SP 1315 D, batching plant M3 and H2.5 J, Gomaco concrete paver GP 2800, Gomaco kerb cutting machine GT 3600, XCMG piling rig XR (180/220) D, XCMG crawler crane XGC 85, XCMG wheel loader LW180K, XCMG excavator XE (140/210/220) I, XCMG type milling machine XM1003, Schwing XCMG tower crane XT 335 (8020-16), and XCMG Aerial Work Platform GTJZ1012, GTJZ1212, GTBZ18A1, GTBZ22S. Going by the responses, Excon 2017 should certainly stir up the industry and see a spike in sales, going forward.

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CONSUMER CONSUMERCONNECT CONNECT

BKT has four state-ofthe-art manufacturing plants in India.

Paving the Way Balkrishna Industries (BKT) has gone from strength to strength, relying on R&D, quality and technological prowess to stand out among its peers.

M

ake in India for the global marketplace canincludes bias, radial, solid & all-steel radial tyres for a not be better demonstrated than Balkrishwide range of off-highway applications. The company na Industries (BKT), a company with over has its own R&D centre, which develops these tyres 30 years of global presence in the ‘off-highway tyres’ that can encounter the toughest and the most hostile segment. In the early 1990s, when every other tyre terrains faced during mining and industrial activities. company in India was busy producing highway tyres The company has products from 5” rim diameter primarily for mass use, the leaders at BKT foresaw a to 54” rim diameter for vehicles ranging from trailers, unique opportunity in international business and startforklifts, etc. to technologically-advanced machines ed production in the ‘off the highway’ segment. like high-horsepower tractors, combines, harvesters, Today, BKT enjoys principal presence in five conGPS-controlled vehicles, articulated dump trucks, tinents around the world, covering more than 160 high-speed cranes, sophisticated port vehicles & concountries. It is the preferred supplier to international tainer handlers etc. BKT is the first tyre company OEMs in industrial/construction and mining segin India to produce all-steel radial OTR tyres. OTR ments. Since its inception in 1988, BKT has grown vehicles ranging from rigid dump trucks to snow mainto a diversified industrial major, exporting its exnoeuvring vehicles use these tyres. The tyres under pansive range of ‘off-highway solutions’ to the world. this segment range from a 20” diameter tipper truck Quality-conscious users that adhere to stringent consize to a giant 51” rigid dump truck size in bias make The XL Grip tyre by BKT. formity standards in countries in Europe, America, the and 49” in radial make, thus covering every requireMiddle East and Asia prefer BKT as their supplier. The international ment for industrial use and mining. quality of BKT tyres is achieved by using the foremost quality of raw BKT has been selling tyres to the world’s leading OEMs. The materials that are processed through company recently launched an ultra-advanced range of tyres, esthe most advanced and developed pecially for high-speed cranes. The tyre 445/95 R25 enables heavy technology. high-speed cranes to journey at speeds of 80 km/hr.

The foundation of BKT has been “Each product passes over 450 stages of tests. The result of this built on the pillars of R&D, technolrigorous practice being that BKT products are known for their reliogy and best-in-class quality. This ability and have the lowest claim ratio in the industry,” informs Rajiv has enabled BKT to develop 150Poddar, joint MD, BKT. 160 new SKUs (stock-keeping units) Currently, BKT has four functioning state-of-the-art manufacturRajiv Poddar, every year. This has led to an impresing plants spread across India, with the most recent one being set joint MD, BKT. sive portfolio of 2,600 SKUs, which up in Bhuj, Gujarat.

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