Construction Industry Review 7- 2014

February 17-23, 2014 1
Volume 3 l Issue No 7 l February17-23, 2014 l Price: Rs 100An MMR, Braj Binani Group Publication
Credit metrics of real estate firms
stay slump on weak demand
Gloomy forecast for
infra 2014-15
A negative to stable outlook on
the real estate sector for FY15 is
maintained on the back of continued
weak end-user demand and adverse
consumer sentiments, according
to the findings by India Ratings &
Research (Ind-Ra).
Real estate companies have been
facing falling unit sales, flat revenue
and Ebitda margins and continued
deterioration in credit metrics and
cash flows.
Most Ind-Ra rated real estate
companies have a stable outlook, as
the risks impacting the sector have
been factored in to their ratings. The
entities rated at investment grade are
either single commercial properties
with long-term lease agreements or
residential companies with healthy
sales and strong cash flows.
Ind-Ra believes credit metrics will
continue to deteriorate in FY15, as high
residential prices continue to impact
sales, even while rising bank credit
to the sector indicates an increase in
inventory for the sector.
The sale of fresh residential units (sq
ft) by listed real estate companies has
seenadownwardtrendin1HFY14.This
is due to weak consumer sentiments
and low real estate affordability due
to high prices. However, bank credit
to the sector saw strong double-digit
y-o-y growth in 2013, which indicates
build-up of inventories.
Prices continue to remain high
despite the weak end-user demand,
as demand from investors and
speculators could have been lifted
by the Central government’s efforts
to curtail gold imports.
The upward movement seen in
the National Housing Bank’s house
price index in 2QFY14 after a fall in
the previous two quarters supports
this argument, as it coincides with the
imposition of import duty on gold.
I n d - R a e x p e c t s s u b d u e d
commercial property demand to
continue in 2014, due to the continued
slow economic growth which will
impact fresh hiring in most sectors.
Demand for retail space is also likely
to remain muted in FY15, as retail
the ailing power sector, the agency
believes that “it will take some time,
say post-FY15, before the full benefits
of these measures actually trickle
down to power-generating project
assets”.
The thermal power sector is
simultaneously tackling (or at least
trying to tackle) a bundle of problems
such as lack of adequate provisions
in fuel supply agreements, volatility
in coal prices, high interest costs,
financial health of off- takers and
depreciating rupee, it added.
However, India Ratings said that
there is a silver lining in the renewable
energy sector due to reduced
construction risk, stable operating
performance and remunerative tariffs.
The airport sector has a stable
outlook for the coming fiscal,
according to the agency, adding that
it has been revised from negative
due to the progress on completion of
expansion plans, regulatory clarity on
tariff fixation and sustained growth in
international traffic. Although minor
sea ports may remain largely stable,
non-major private ports have a stable
to negative outlook.
The expected continuance of the
current situation in the near term will
continue to be a drag on the project
cash flows of toll road assets, it
added.
On the positive side, aspects like
stable and assured revenue streams
from highly rated counter-parties and
standard maintenance requirements
are the dominant reasons for the stable
outlook on annuity road projects, it
further said.
Notwithstanding the measures
taken by the government to improve
companies continue to optimise
their store portfolios. The real estate
sector has seen strong interest from
private equity and foreign investors.
During 2013, strong investor interest
was seen in rent-yielding commercial
properties with conclusion of several
large transactions by leading private
equity players such as Blackstone.
Ind-Ra expects the introduction of
real estate investment trusts (Reits)
to be positive for the sector, as it is
likely to attract new investors and
hence improve funding availability.
As these Reits are likely to invest
most of their funds into rent-yielding
commercial properties, this could
provide further liquidity options to
commercial property developers.
The outlook for India’s infrastructure
sector for the coming fiscal, 2014-15,
appears negative, according to India
Ratings, a Fitch group company. This
is due to weak credit profiles for most
projectcompanies.Asharpmovement,
especially in the short term, is not
expected in the fortunes of the sector
following the Lok Sabha elections
in first half of 2014-15, it stated.
However, policy support from the
government will help somewhat the
beleaguered sector recover from
some of its issues elaborated in the
report, speculates the agency.
The outlook for the sub-sectors
sector has a split prospect, it said,
adding that forecast for power
projects, barring renewables, remains
negative while certain pockets in the
transportation sector have a stable
outlook.
“Prolonged uncertainty surrounding
economic conditions, over-ambitious
traffic estimates and enhanced
construction risks (to name a few)
have plagued the road sector for some
time now,” said the rating agency.
Road projects to be cut
out into small stretches
The Road Ministry and the National
Highways Authority of India (NHAI)
have decided to go ahead with the
alternative plan of bidding out these
road projects afresh as smaller
stretches, as not many developers
are keen on the premium rescheduling
package recommended by the
Rangarajan panel.
According to sources as many
as 20-30 projects would be bid out
afresh, including six-laning projects
like Kishangarh-Udaipur-Ahmedabad
and Shivpuri-Dewas.
A senior NHAI official said, “An
exercise has already begun to assess
the feasibility of cutting out these
projects into small stretches. Officials
are preparing various proposals to
decide whether the projects can be
taken up on BoT or EPC.”
For example, the government
is looking at breaking Kishangarh-
Udaipur-Ahmedabad (from which
GMR walked out citing regulatory
delays) into three small stretches and
the Shivpuri-Devas project into two.
The Finance Ministry needs to
vet the final recommendations of the
Rangarajan panel and send it back
to the Road Ministry which has to
notify the norms. Once it receives the
Finance Ministry’s nod, the NHAI will
start contacting all developers, asking
for their consent on premium recast
for stuck projects. The developers
will be asked if they are agreeable
to the recast model, and if he is
not interested, the NHAI will initiate
termination of the project.
The Road Ministry and the NHAI’s
stance, analysts say, is justified as
many major developers have been
voicing their concerns on the proposal,
which, according to them, fails to lure
them into staying with the projects. The
cumulative premium to be rescheduled
is over Rs 1.5 lakh crore.
The official, when asked which
mode would the authority prefer to bid
these projects again, said, “Over 60
per cent of these projects would likely
be bid out on the EPC mode given
poor investor interest and slipping toll
projections. The government does not
want to take risks by opting for BoT
alone. The NHAI is quite comfortable
with funds available with it and can
build these projects much earlier on
the EPC mode.”
The dearth of new PPPs on the
BoT mode is not unknown, and it
has hit highway construction badly
even as the NHAI tries to revive
the engineering, procurement and
construction (EPC) model.
Centre gives
nod to Pune
Metro rail
The Union Urban Development
Ministry has given in-principle
approval to Pune Metro Rail Project
which aims to improve the public
transport system in the metropolis.
The project will cover a length of
31.51 km along two corridors.
While corridor-1 will cover 16.59
km from PCMC to Swargate,
corridor-2 will cover 14.92 km from
Vanaz to Ramwadi.
In-principle approval of the
Centre will enable the Maharashtra
government to take necessary
action required for early
implementation of the project,
said a senior UD Ministry official.
Maharashtra has proposed to
implement the project through a
Special Purpose Vehicle jointly
owned by the Centre and the state
government.

February 17-23, 2014 2domestic
Tata Housing has offered gold
vouchers worth Rs 49,000 to buyers
who book flats in the name of
women in its Rs 600 crore project
in Bhubaneswar. Project Ariana is
spread over 12 acres and apartments
are priced in the range of Rs 33-70
lakh.
“The Holcim Awards is a
universal idea: everyone with
good concepts has a chance of
winning. The competition is
independent and open to all.”
4th International Holcim Awards for
sustainable construction projects.
Prize money totals USD 2 million.
Francis Kéré, Principal, Kéré Architecture, Burkina Faso/Germany. Winner
of the Global Holcim Awards Gold 2012.
Renowned technical universities lead
the independent juries in five regions of
the world. They evaluate projects at an
advanced stage of design against the
“target issues” for sustainable construction
and allocate additional prizes for visionary
ideas of young professionals and students.
Find out more about the competitions at
www.holcimawards.org
The Holcim Awards is an initiative of
the Swiss based Holcim Foundation for
Sustainable Construction. It is supported
by Holcim and its Group companies and
affiliates in around 70 countries, including
ACC Limited and Ambuja Cements Ltd.
Holcim Ltd is one of the world’s leading
suppliers of cement and aggregates.
“Ariana, a premium residential
project, is offering gold vouchers
worth Rs 49,000. The ‘Surprise her’
offer will be for all buyers who register
their apartments in the name of their
wives, mothers and sisters,” stated
Tata Housing.
According to sources, the
company would develop 1,100 units
in this project at a cost of about Rs
600 crore. By way of association,
Tata Housing aims to garner its
support towards women -- a key
buyer and not just an influencer,
said Tata Housing Head Marketing
Rajeeb Dash.
Tata Value Homes
launches Spanish-theme township
Tata Value Homes Ltd, a 100
per cent subsidiary of Tata Housing
DevelopmentCompany,haslaunched
a Spanish-theme residential township
at Sriperumbudur to the west of
Chennai. The 18-acre project, named
Santorini, on the Chennai-Bengaluru
Highway about 40 km from Chennai,
offers over 1,000 houses of one to
three bedrooms ranging from 576
sq ft to over 1,500 sq ft, according
to a press release from Tata Value
Homes. Prices range from Rs. 24
lakh to over Rs. 52 lakh. Work on the
project is set to start soon with the
delivery planned for 2016.
Sriperumbudur is an industrial
suburb of Chennai that has seen
investments by multinational
automobile and components
manufacturers, IT and telecom
hardware making units and
a wide range of manufacturing
companies.
S a n t o r i n i i s d e s i g n e d b y
international architects F+A to
offer a distinct design of low-rise
architecture, podium gardens and
a lavish clubhouse. The project is
IGBC pre-certified green building
offering green landscapes and
abundant open spaces.
Godrej Properties
to develop project in Pune
DLF sells Aman Resorts
to Indonesian hotelier
Godrej Properties Ltd will invest up
to Rs 565 crore in its subsidiaries that
are executing realty projects. In a filing
to the BSE, it has sought shareholders’
approval of six special resolutions
through postal ballots.
The investments in the subsidiaries/
SPVs could be in the form of purchase
of securities or debt or guarantee
in connection with loan provided by
some other persons or entities. The
realty arm of the Godrej Group plans to
develop a project at Mundhwa, Pune,
through a special purpose vehicle.
It has proposed to invest up to Rs
100 crore in this SPV from internal
accruals and borrowed funds. It also
plans to invest up to Rs 100 crore in
another project at village Khanawale,
Panvel and village Talegaon, Khalapur
to be developed through a special
purpose vehicle.
In another proposal, the company
DLF Ltd has completed the sale
of Aman Resorts to Aman Resorts
Group Ltd (ARGL), a joint venture
between Omar S Amanat’s Peak
Resorts and Adrian Zecha, for $360
million.
ARGL will be majority owned by
Peak Resorts. Amanat is a founder
of Tradescape and is described as a
pioneer in the electronic brokerage
industry, besides having stakes in
entertainment and other businesses.
Adrian Zecha is an Indonesian hotelier
who is best known as the co-founder
of Regent International Hotels and
founder of Aman Resorts.
sought the nod of shareholders to
invest up to Rs 45 crore in an upcoming
project at Kanchipuram District, Tamil
Nadu.
That apart, it has sought approval
for pumping in up to Rs 70 crore
in a project to be developed near
Bengaluru International Airport. Godrej
Properties has also sought nod for
an additional investment of up to Rs
200 crore in an ongoing project at
Kolkata.
In May 2010, shareholders had
approved Rs 250 crore investments
in the subsidiary Happy Highrises
constructing this project. The company
has proposed to make an additional
investment of up to Rs 50 crore in
an ongoing project at Bengaluru.
Shareholders had in June 2013
approved an investment of Rs 200
crore in Godrej Buildwell, which is
developing this project.
The two sides have already agreed
on broad financial terms and are
expected to close the transaction
this week. The $360 million enterprise
value of the deal, equivalent to about
Rs 2,250 crore, includes debt of
about $70 million on the books of
Silverlink Resorts Ltd, the holding
company for Aman Resorts. This
means the deal should generate a
cash surplus of about $290 million
for DLF. Zecha had agreed to buy
DLF Global Hospitality Ltd’s entire
holding in Silver Link Resorts Ltd for
$300 million. DLF Global Hospitality is
a wholly-owned subsidiary of DLF.
Gold vouchers for buying
homes in women’s name

February 17-23, 2014 3
Mumbai is getting ready for yet
another business district in an area
that would be bigger than Bandra-
Kurla Complex, which is home to a
host of marquee names in business.
Known as the GVK Skycity, the
area surrounding the swanky new
T2 terminal in Sahar and built by
the GVK group’s Mumbai Airport
International Ltd (Mial), will have 20
million sq ft commercial space that
will be bid out.
The first phase, which will see
the construction of hotels, 3 million
sq ft of retail area, office blocks and
conventions on 200 acres of airport-
owned land, has begun and the GVK
group plans to finalize the lease of
8-10 acre land parcels by March.
According to a GVK group
presentation,theprojectedinvestment
in GVK Sky City will be over Rs 12,000
crore. Plans have been prepared to
boost infrastructure and amenities,
including sidewalks, arterial roads,
a metro line and a recreation area,
amongst others. The presentation
talks about changing the real estate
landscape of the area by creating
a ‘vibrant 24x7 businesses and
leisure hub and global convention
and hospitality destination.” The Mial
did not respond to an email query on
the subject.
The first phase of the realty
development began recently with
the Mial inviting bids for four plots
measuring 8-10 acres in Sahar near
the international terminal. This means
a development potential of 1.8 million
sq ft. These plots will be used for
constructing hotels and offices.
The Mial, which has received bids
for the first set of plots, is expected
ICICI-led Infradebt fund
inks `50-cr loan pact
ICICI Bank-led India Infradebt Fund
signed Rs 50 crore tripartite loan
pact for a road project promoted by
Jaypee Group. The agreement has
been created in the road sector that
paves the way for many more such
road projects to have access funding
through tripartite agreement.
Theagreementwassignedbetween
the IDF, the NHAI (National Highways
Authority of India) and the project
company which in this case is the
Himalayan Expressway Ltd (Hel). Hel,
a subsidiary of Jaypee, is undertaking
the construction of Zirakpur-Parwanoo
Highway connecting Punjab, Haryana
& Himachal Pradesh on build operate
and transfer basis (BoT).
The total length of the highway
would be 28.690 km.
Four financial institutions, led by
ICICI Bank, had in February last year
launched Infrastructure Debt Fund
(IDF) -- India Infradebt Ltd. This fund
can finance projects of up to $2 billion
(about Rs 10,000 crore). The other
sponsors of the India Infradebt Ltd are
Bank of Baroda (BoB), Citi and LIC.
The ICICI group has 31 per cent,
BOB 30 per cent, Citi 29 per cent and
LIC 10 per cent where almost 100 road
projects in the country are ready and
would require about Rs 50,000 crore
of bank funding. This agreement can
pave the way for all such projects to
access this kind of funding.
INFRASTRUCTURE
Mumbai gets ready
for one more BD
to finalize the developer/manager
partner by March. About 25 firms,
including top global hotel chains
and realty developers, have bid for
the plot.
Construction for the first phase
will begin by the end of this year,
following which the Mial is likely to
invite bids for the second round of
development. According to sources
familiar with the developments, the
real estate development can fetch
the Mial around Rs 18,000 crore. It
hopes to earn about Rs 1,000 crore
in deposits from developers for
letting out a few of the land parcels
by March 2014 and utilize the funds
to finance airport construction.
NHAI inks
`50-crore pact
for road project
The National Highways Authority
of India (NHAI) signed a tripartite
agreement for a road project worth
Rs 50 crore with an infrastructure
debt fund and the Himalayan
Expressway. The infrastructure debt
fund is backed by ICICI Bank, Bank
of Baroda, Citibank and LIC.
The agreement was signed in
the Finance Ministry. Apart from
the Finance Ministry and the NHAI
officials, the signing was attended
by the ICICI Bank Managing Director
Chanda Kochhar, Bank of Baroda
Managing Director S S Munjal and
Citibank India CEO Pramit Jhaveri.
The 56-km expressway is operated
by Larsen & Toubro on a build-
operate-transfer annuity basis.
Bids to float soon
for road projects
in TN
The National Highways Authority
of India (NHAI) will soon float bids
for three important road projects in
Tamil Nadu which will significantly
cut travel time to the pilgrim island of
Rameshwaram by road. The NHAI is
executing several highway projects
in Tamil Nadu aimed at improving
connectivity to Rameshwaram, which
is visited by thousands of pilgrims
every day.
As part of this initiative, the
NHAI has so far completed work
in the 90 km stretch in the two-
lane highway between Tiruchi and
Ramanathapuram via Karaikudi.
This highway with paved shoulders
on NH -210 has been executed at a
cost of Rs 374 crore. Soon, the NHAI
will start the bidding round for three
more road projects that will improve
Rameswaram’s connectivity with the
rest of Tamil Nadu.
The 84 km two lane Karaikudi-
Ramanathapuram road (Rs 284
crore outlay ), an extension of Tiruchi
Ramanathapuram stretch, Madurai-
Ramanathapuram via Paramakudi
(four lane, 115 km, outlay Rs 800 crore
on NH 49) and Ramanathapuram-
Rameswaram (two lane, 60 km
Rs 145 crore) are the three road
projects.

February 17-23, 2014 4CONSTRUCTION
Quick to build, made to last
A pre-engineered
building can cut weeks
or even months off
of your construction
schedule, saving time
and money
A pre-engineered building, usually,
is a metal building that consists of
light gauge metal standing seam roof
panels on steel purlins, spanning
between rigid frames with light gauge
metal wall cladding. It is a relatively
flexible structure when compared with
a conventional steel-framed building.
In other words, it has a much greater
vertical and horizontal deflection.
Thepre-engineeredbuildingsystem
is one of the fastest growing building
systems in the world. The advantages
it offers benefit everybody involved
in the project. Applications of pre-
engineered buildings are several. Also,
they are ideal for any non-residential
low-rise building.
Advantages
When compared with conventional
steel buildings, they offer a number
of advantages, especially in low-rise
buildings. Steel buildings are made to
last. Unlike wood, steel will not crack,
twist, warp, rot, settle, or harbour
insects. A metal building can stand up
to natural calamities, providing ultimate
protection from the elements.
Steel buildings are known for their
protection against high winds, heavy
rainfall, storms and other hazardous
weather conditions. Also, maintenance
is very minimal with a steel building,
compared to other materials.
The idea of a pre-engineered
building is to provide custom
engineering to each situation, while
having the basic and common
components already designed and
engineered. This provides a custom
engineered project, keeping costs to
a minimal.
Pre-engineered buildings (PEBs)
are the state-of-the-art steel solution
to developing an efficient and cost-
effective infrastructure.
“For the past five years India’s
infrastructure industry has enjoyed a
blast of growth with many new roads,
highways, bridges, power stations and
airports. The Indian economy is now
on a stupendous growth track on the
back of an infrastructure boom,” says
H S Bharana, Chairman & Managing
Director, Era Group.
Optimum use of materials
A steel building provides optimal
use of materials. Since these buildings
are pre-engineered and designed
to fit together, labour costs are
greatly decreased. With pre-punched
connections, marked components,
and detailed assembly drawings,
erection is streamlined. All these
characteristics help the customer
save money.
There are several different options
for insulating a steel building, most
of which are extremely efficient for
heating and cooling. Also, metal
roofs, especially light coloured ones,
reflect heat in warm weather, which
means lower cooling costs. Another
advantage of our insulation systems
is their ability to reduce noise, from
falling rain to loud noises.
Steelbuildingscangoupremarkably
quick. Being pre-engineered, once
they are delivered to the job site, you
will see great construction progress in
a short time frame. There is much to
be said about safety when it comes to
a steel building. Obviously its strength
provides ultimate protection from
weather. They are also heat and fire
resistant, since steel doesn’t burn.
In fact this fire safety often leads
to insurance savings versus other
construction materials. The structures
do not absorb water, so there is less
chance of hazardous mould. Steel also
doesn’t require any treatment from
chemicals, like wood structures do.
No waste
Steelbuildingsaremadeofmaterial-
efficient, all recyclable products. The
impact of steel on our environment is
far less than using a non-renewable
resource such as wood. Also, since
the buildings are pre-engineered, there
is no waste.
Projects are designed to minimize
the amount of steel used to meet
exact specifications. Even upon the
completion of the project, the amount
of unusable or non-recyclable material
is very minimal, as opposed to other
materials.
Since steel buildings have long life
expectancies, they keep the impact
to our environment minimal. Unlike
other construction materials, a steel
building can often been re-located and
used for another application. Many of
such buildings incorporate ‘Green’
attributes that can earn credits for Leed
certification.
Drawbacks
However, the system is not without
its disadvantages. The cost of making
steel is very high. While the cost of
most steel frame components has
become progressively comparable, the
charges of building are another matter.
It takes many of time to assemble a
steel frame building as it takes longer
to use attachments than it does to
use nails.
Insulation is a large-scale difficulty
withsteelbuildings.Theyrequireadded
insulation as steel on its own is not a
very good insulator. Insulating your
house to an agreeable benchmark will
furthermore add to your construction
costs.
Cost-effective, time-saving
A pre-engineered building can
cut weeks or even months off of
your construction schedule, saving
time and money. It considerably
shortens the time from design to a
finished building product compared to
traditional building techniques.
A pre-engineered building can
be designed to meet your client’s
personal needs and requirements. It
can be designed so that it may be
later expanded to fit your needs as
your business grows.
It can easily and affordably provide
you with a clear, column-free interior
space.
Metal buildings are more likely to
survive in harsh weather conditions
than other types of construction.
They are designed to withstand the
long-term effects of the elements and
pests.
The buildings are produced with
materials that are recyclable.
“We understand that quality, time
and costs are essential components of
a project the world over and we strive
to minimize the cost and time without
any compromise on the quality front.
Our rapid construction technologies
enable our clients to derive benefits,”
says Navin Hegde, Chairman &
Managing Director, Octamec Group.
Safe investment
A metal building will require less
maintenance than similar structures
made from some other types of
materials. The cost savings of
choosing a pre-engineered building
over conventional construction can be
as much as half.
Using metal buildings along with
conventional materials to achieve
a certain look can save substantial
amount of up-front costs. All these
features make a metal building easy
on your budget.
PEBsareproducingonlyhigh-grade
metal and premium components.
Therefore your investment will be built
to last for years to come.
Withfasterconstruction,unmatched
durability, carefree maintenance
and affordable customization, these
buildings meet your needs and exceed
your expectations.
Shrikant Nivasarkar, President,
the Pune Construction Engineering
Research Foundation (PCERF), during
the recent Constro 2014 (the bi-annual
exhibition of construction materials and
technology), said, “The concept of pre-
engineering and mass manufacturing
of construction components is not new
in the international context, where it
began several decades ago in Western
countries, due to shortage of human
labour.
“The application and increasing
growth of pre-engineered construction
in India, however, needs to be looked
at in a different perspective. Owing to
our large population, human labour
has always been our strength, and our
construction industry has generated
employment and livelihood for millions
of families.
“This industry in India is second
only to the agriculture sector, and
employs more than 35 million people.
Despite this large manpower, however,
our productivity has been relatively
low and our construction quality has
been relatively poor. This needs to be
improved.
“The adoption of pre-engineered
construction technology in India,
therefore, needs to be skilfully
integrated with the overall socio-
economic development of our human
workforce. This can be achieved by
initiating new education programmes
and training facilities in the emerging
new construction technologies for our
existing labourers.
“We need to adopt a unique model
of pre-engineering and mechanization
of the construction industry which will
improve the skills and capabilities
of our labourers, and consequently,
enhance their productivity, improve
their economic status and their quality
of life.”
Dilip Phansalkar
scaffolding & form work - ad -10 02 14 .indd 2 2/10/2014 9:37:00 PM
Shrikant Nivasarkar, President, PCERF

The concept of pre-engineered
buildings (PEBs) in India emerged
in the early 2000s, and in the past
decade it has been transformed into
a $600 million market.
The growth rates in terms of
revenues have been averaging around
15 per cent for the past few years and
the industry is expected to grow at a
compounded annual growth rate of
11-12 per cent until 2016 in terms of
volumes.
The rise of this building technology
is attributed to the need for quick
turnaround time and scalability of
buildings in the Indian construction
PEBs: Another building option
or strong alternative
The rise of this building
technology is attributed
to the need for quick
turnaround time and
scalability of buildings in
the Indian construction
sector
sector. PEB construction is 30-40 per
cent quicker as compared to brick and
mortar construction and this method
is the ‘go-to’ choice for buyers who
require setting up their facility in the
shortest possible time.
Some of the key functional
advantages of using PEB technology
over conventional construction are:
Rising application of PEBs
The major facilities that utilize
pre-engineered building technology
are warehouses, industrial sheds
and buildings. The latest requirement
of PEB is in the area of earthquake-
resistant building structures across
remote and hilly regions in India.
Another sector which is new to
cells into their trademark roof panels,
use of special grade non-combustible
and water Repellant Grade Rockwool
Slab with roof panels.
Contractors presently use design
software like STAAD, ASFAD, MBS,
Precision Plus and contractors have
begun endorsing end-to-end design
software like Tekla structures which
covers complete analysis and design
to the production/despatch/erection
planning.
Grey areas in PEB industry
The awareness and application of
PEB in the industrial and commercial
sector has grown profusely, but the
residential sector being a B2C market
requires higher levels of aesthetics
and customization in buildings which
is less feasible presently. Developed
markets have adopted PEB for low-rise
structures (G+5) such as hospitals,
resorts, malls, etc, but India still relies
on brick and mortar for construction
in this space.
A common issue in the design,
fabrication and erection of PEB
structures is the non-harmonization of
building codes used by PEB vendors.
For example, load calculations for
a pre-engineered structure in India
utilize IS 875 codes, but designing of
structure is done using AISC or AISI
or MBMA and welding is performed
as per AWS.
PEB players do not entirely
adhere to the latest revisions of
Indian Standard codes but follow a
mix of Indian and American codes,
thereby increasing the pricing of their
services.
Also, the Government of India
could be more supportive to the PEB
manufacturers by taking measures
like terminating or reducing the excise
duty in the wake of the recent hike
from 10.3 per cent to 12.36 per cent for
components in PEB manufacturing.
The ongoing efforts for research
and development in the PEB space
in India is commendable, with the
introduction of new technologies like
Light Gauge framing systems, green
buildings, eco-friendly construction
materials, but buyer sentiment is still
dubious on certain technical issues
related to PEB.
Pre-Engineered Buildings
Market Size Comparison 2012
Factor Conventional Construction Pre-engineered Buildings
Structure stiffness Separate members for
building structure is required
Tapered building sections, cold formed sections, high strength
sheeting – leads to overall weight, cost and time savings.
Wastage &
fabrication quality
Performed on-site under non
controlled environment
Fabrication in factory controlled environment – wastage is
avoided and adherence to safety standards.
Construction
limitations
Occurrence of deviation from
actual client plan
Built to suit client requirements irrespective of facility type –
manufacturing plants, warehouses, hangars, schools, etc.
Fire
Resistance
Compared to conventional materials
like bricks and concrete, steel
structures are still vulnerable to
fire and present PEB technology
does not permit structure safety at
extreme temperatures during a fire.
Buckling
and micro-
cracks
Small steel membranes lead to higher
stress levels which may result in
phenomenon like buckling and micro
cracks and this becomes a serious
concern in seismic zones.
Corrosion
and welding
Without regular maintenance,
structural steel when exposed to
harsh environments tend to corrode
and selection of highly galvanized
or coated steel increases overall
fabrication costs.
Ductility Welding generally weakens seismic
performance of buildings and new
welding methods to improve the
inelastic properties of structures needs
to be developed.
PEB contractors
Some of the leaders in this
market are Interarch Buildings, Tata
BlueScope Building Solutions, Jindal
Buildsys, Tiger Steel Engineering
India, Everest, Lloyd Insulations India,
etc and a few of the global majors
prominent in India are Zamil Steel,
Kirby Building solutions, etc.
the application of PEB is rural and
urban mass housing projects, slum
reorganization and rehabilitation
projects. The Delhi airport and the
metro projects in Delhi, Bengaluru
and Mumbai are prime examples of
PEB applications in the infrastructure
sector in India.
Certain companies like Interarch
and Kirby Building Solutions have
been specializing in airport roofing
and ceilings and these structures are
fabricated in the factory and bolted to
perfection at the site.
Kirby Building solutions was
awarded for constructing the world’s
biggest PEB manufacturing facility for
Renault Nissan India at Chennai and
this facility spans across 300,000 m2
of space, with the utilization of 20,000
mt of steel.
PEB contractors like Tata
BlueScope, Lloyd Insulations are
upping the game by providing Leed
compliant solutions like integrating PV
Another challenge faced by the
PEB industry is ensuring continuity
of workmanship during the erection
phase of projects.
With shortage of labour personnel
in the areas of welding, metalworker,
etc in India, the situation is very
delicate as end-to-end services can be
provided only by the industry leaders
like Interarch, Zamil Steel, Kirby,
Tata BlueScope, etc, and engaging
individual builders for erection work
is risky on the grounds of schedule
adherence issues. Moreover, labour
costs also increase at times of labour
shortage and result in increased total
project costs.
(contd. on pg 10)
7
6
5
4
3
2
1
0
$Billion
Global
6.04
India
0.57 0.51
China
Out of the total structural steel market
of around 6 million tons, around 10-11
per cent is contributed by PEBs

February 17-23, 2014 6IN PERSON
‘Kirby India’s ability to handle any
size project remains unmatched’
Asaleaderindesignandmanufacture
of PE steel buildings, what have
been your accomplishments?
In 1999, Kirby recognized the
need of customers in the Indian
market and has widely pioneered
the Pre-Engineered Steel Buildings
(PEB) concept. Since then, Kirby
has executed projects for over 4,500
customers supplying more than
15,000 buildings in the country.
Kirby India has over 25 sales
offices across the country equipped
with experienced resources. Kirby
India prides its strong execution team
ably supported by a network of over
100 certified builders. The company
has built more than 20 million sq m of
PEBs, and its ability to handle any size
of project remains unmatched.
How wide is your range of PE steel
solutions?
Kirby Building Systems India Ltd
(Kirby India) offers a wide range of
products such as PEB, structural
steel, storage solutions, sandwich
panels, component sales – roof & wall
sheeting, Green buildings, erection
and technical advisory services, etc.
What elements led to the expansion
of the company in India?
Kirby commissioned India’s first
PEB manufacturing facility with a
capacity of 60,000 mt per annum in
Hyderabad in 1999. As a result of its
success in the market and increase in
demand, the capacity was upgraded
to reach 100,000 mt.
Additionally, a greenfield plant with
a capacity of 75,000 mt per annum
followed in 2005 at Haridwar, which
was further expanded to 100,000 mt
in 2011.
Thisfacilitywassetuptocatertothe
northern, eastern and part of western
India as these regions witnessed an
unexpected increase in demand for
these types of structures. Today, at
200,000 mt capacity per annum in
India, Kirby is the undisputed leader
in the steel building industry.
What has been the company’s
contribution to sectors such as
infrastructure and real estate ?
The Indian construction industry
has evolved from its initial preference
towards conventional and RCC
structures to the PEB in low-rise
industrial buildings in the last
decade.
There are many advantages with
pre-engineered structures. They offer
moreflexibilityforplantlayoutsforfuture
expansions, savings in construction
time leading to faster realization
of the project, large clear spans,
superior quality and conformance
to international standards, low
maintenance, earthquake- and
cyclone-resistant, environmental-
friendly and sustainable, and
architectural versatility with buildings
being supplied with special fascias,
canopies, curved eaves and many
other features.
If we compare with the developed
markets, PEB has already made
inroads not only in the industrial
segment but is also very popular
for low-rise structures (G+5) such
as offices, hospitals, retail malls,
housing, resorts, etc.
As far as the commercial building
segment is considered, PEB has still
not yet ventured into that area with its
presence being very miniscule, but
Kirby has supplied some buildings
to this sector.
The commercial building sector
Development & Growth (INSDAG).
The company has also been
awarded with the British Safety
Council membership after meeting
their stringent qualifying criteria.
The company internal processes
and operations are well integrated
through SAP, thereby ensuring the
best customer service.
KSS-600 (Kirby Standing Seam
Panel) roofing system which is having
double lock standing seam ends
and is 100 per cent leak-proof is
company’s one of the most popular
products. Kirby India is the first PEB
company in the country to achieve
FM Global approval for its KSS-600
roofing system.
What kind of network have you
built to cater erection procedures
to international standards?
Kirby has a panel of over 100
certified builders across India. As the
erection process is highly technical
and needs skilled and trained
manpower to effectively execute the
works and handle heavy construction
equipment, the builders are selected
after a very rigorous evaluation
process.
Once selected for empanelment,
they go through a training process
to understand ‘Kirby’ systems and
details, expected work methodology
and safety norms to be followed,
etc.
Kirby offers supervision and safety
audits at site. The Kirby site managers
who are experts in installation monitor
the entire activity to ensure that
the work is executed as per the
committed time lines according to
the established procedures and the
required quality level is maintained for
the entire installation activity.
Kirby’s huge network of certified
builders caters to the erection
procedures as per the international
standards and is capable to handle
any type of complexity under adverse
site conditions.
Why steel is the most preferred
material for prefab structures?
Steel is the most preferred material
for all prefab structures and PEBs
use steel which is more than 90 per
cent recyclable. These buildings are
cost-effective, energy-efficient and
provide better quality environment as
in India is estimated to reach a target
of 20.44 billion sq ft by 2030 from 7
billion sq ft in 2010. It is expected that
nearly 34 per cent of 2030 target had
already been constructed and about
66 per cent of the building stock is yet
to be constructed.
Kirby is planning to venture into
this segment in near future as it is
expected to provide very high volume
of business in coming years owing
to the shortage of homes which is
expected to grow at rapid pace due
to increasing urbanization with more
than 40 per cent of Indian population
expected to live in cities by 2030.
Thus, PEB will emerge as one of the
preferred building solutions for both
residential and commercial segments
in near future.
What are the qualities that make
your products matchless?
Kirby has changed the face of the
construction industry with its superior
product and cost-effective solutions
that are of the highest quality. The
company’s facilities follow stringent
ISO standards and are certified with
ISO 9001:2008 certification by Bureau
Veritas. The company also gets the
quality vetted by third party agencies
as per customer’s requirements.
The entire Kirby process is followed
as per ISO 9001:2008 policies and
procedures. Kirby India uses high
quality input materials as per global
standards of the organization.
The raw materials are procured
only from primary sources which are
India’s leading steel suppliers and
are authenticated by test certificates.
Nevertheless, as a part of the quality
plan, all incoming raw materials are
subjected to screening to ensure
compliance to prescribed quality.
Allthestaffandmanagersaremade
aware and are constantly educated
on the various quality systems and
procedures confirming to national
and international standards. Further,
at each stage of the conversion
process the various components are
subject to quality compliance as per
the established standards.
How have you implemented
environment and safety policy when
undertaking building projects?
Kirby India has standard
environment and safety policy to be
implemented through an effective
environment, health and safety
management system at all the stages
of project execution both in the plant
and at the site.
Each and every employee of the
company along with the builders
and contractors is responsible for
implementation of all policies relating
to environment and safety.
Regular trainings are conducted
at plant and at project sites providing
benefits of maintaining a safe working
environment and ensuring safety
of ourselves and all other people
through presentations, banners,
postures, mock-ups, acts, etc.
What are some of the milestones
the company has crossed since its
foundation in 1999 till date (2014)?
Kirby India started the revolution
in the construction industry and since
then it is leading this revolution with
its constant innovation in products
and applications thereby setting new
benchmarks for the PEB industry.
The company is a leading player in
the Indian PEB market with a market
share of over 30 per cent.
Kirby India has the privilege of
partnering who’s who of corporates
both from national and international
front operating across all industry
segments by setting up their facilities
in India and across the globe.
Kirby’s Hyderabad and Haridwar
factories are ISO 9001:2008 certified.
Kirby India is also a member of
the Indian Green Building Council
(IGBC) and the Institute for Steel
they are cooler in hot conditions due
to favourable roofing material and
natural ventilation. These buildings
also help in energy saving due to
more amount of natural sunlight
through skylights used on the roof
of the building, thereby reducing the
overall power consumption.
The effective usage of insulation
material, louvers and other materials
also help in making PEB one of the
most preferred Green buildings.
Kirby India supplies its buildings with
materials which are easily recyclable
and do not use materials that are
harmful for the environment. The
company is always looking forward
to be a part of green buildings and
eco-friendly products.
Why is PEB technology a game
changer; what are its advantages
over conventional structures?
PEBdesignisbasedonthesynergy
existing between various elements
and every element is assumed to
brace the other element thereby
providing the overall stiffness.
In a conventional system, separate
members are provided for this
purpose. Thus, PEB uses tapered
building sections, cold formed
sections and high strength sheeting
to optimize the steel consumption
with a nut and bolt configuration
yielding overall weight, cost and time
savings compared to conventional
buildings.
Also, as the entire PEB system
components are getting fabricated
in factory controlled conditions,
it is possible to deliver quality
tested materials on time in erectable
sequence to project location without
requiring any site welding compared
to conventional construction.
Superior fabrication quality and ease
in site handling with lesser wastage
are other major advantages over
conventional construction.
What is your outlook for the PEB
market in India during 2014?
The Indian economy witnessed
GDP growth of 4.8 per cent during
Q2, FY13-14 when compared to
market expectations of 4.5 per
cent growth as is going through
a challenging macro-economic
environment.
Some of the recent initiatives of
the government of putting various
infrastructure projects on fast track
basis have also given a hope to
the sagging economy and various
industries.
With the country gearing up for
national elections during the second
quarter of 2014, the Indian industry
is expected to remain cautious with
any major capex investments.
The country also received foreign
investments to the tune of $20 billion
in the stocks in 2013 which is the
third highest in history in the past 10
years. This itself justifies that India’s
appetite for growth is still strong
and it has the potential to grow @
8-9 per cent per annum, provided
various parameters such as interest
rates, inflation, current account
deficit, policy parameters, other
initiatives, etc are in the right place
and that too at the right time. Also,
the global economy is showing signs
of positive growth which will further
give a boost to the India GDP.
The PEB industry growth also
was affected in recent times due to
current economic slowdown, but we
expect a positive growth momentum
in the PEB market in future, given
the improving investor sentiment
and reforms announced by the
government.
All the above factors will have a
direct impact on the PEB industry
and are strongly related to the
growth of the industry. Despite the
prevailing conditions, we are very
optimistic about the growth of the
PEB industry in 2014 with a certain
amount of cautiousness.
“Kirby India started the revolution in the construction industry and since
then it is leading this revolution with constant innovation in products
and applications, setting new benchmarks for the PEB industry with its
superior products and cost-effective solutions that are of the highest
quality,” states Deepesh Nagar, Manager-Marketing, Kirby Building
Systems India Ltd, in this interaction with Dilip Phansalkar.
Excerpts:

February 17-23, 2014 7
(contd. on pg 10)
INFRASTRUCTURE
The gap between available funding
and infrastructure needs should not
impinge on effective prioritizing of
projects based on economic, social,
and environmental benefits. In fact,
fiscal exigencies can help put the
focus on top priorities, including
maintaining existing assets. National
and regional schemes, which affect
the greater good, take precedence
over local one-off projects.
PPPs are properly understood as
an infrastructure delivery mechanism,
best implemented after the hard work
of planning is done. For PPPs to
work, governments should fine-tune
procurement models and make the
process more efficient, encouraging
the adoption of best practices.
As an example, ‘the infrastructure
sector is moving toward performance
contracting, where payment is linked
to results and milestones achieved
against fixed deadlines.’ Successes
should engender greater public
acceptance and willingness among
the public to pay for investments.
More nations are adapting
infrastructure policies to recognize the
negative effects of climate change.
The European Union (EU) has
been a leader in seeking to decrease
carbon emissions and engaging
renewable-energy solutions, while
more recently Australia, Canada, and
Japan are making commitments to
tackle these issues in the planning
and execution of new projects.
China and the United States notably
continue to lag, although the Obama
administration shows signs of taking
more forceful action in its second
term and cities across the country
are forging ahead with visionary green
building and investment plans.
Now well into the new century’s
second decade, the world is rethinking
how infrastructure should work in a
rapidly transforming global order.
Below is a summary of how
various countries are coping with
the daunting infrastructure obstacles
they face.
Emerging market demand
Concerned about maintaining
its economic growth, China is
pouring money into an already
unprecedented infrastructure building
spree — constructing high-speed rail
and urban mass transit systems
throughout the country.
The high-speed rail programme,
which faced serious safety and
corruption issues in 2012, appears
to be getting back on track. These
investments have supported dramatic
economic expansion, but are adding
to the country’s large debt burdens
and creating long-term liabilities for
operating subsidies and ongoing
maintenance.
The country has yet to get a
handle on serious air pollution
and water quality challenges. India
also recognizes that modernizing
its infrastructure should be a top
priority. The country is striving to
keep up with aspirations to become
a global market heavyweight.
E v e n w i t h o u t w i d e s p r e a d
corruption, a swelling population
and severe income inequality would
make this job even harder. Brazil,
Mexico, Indonesia, the Philippines,
Vietnam, South Africa, and even
Quality Concrete
Round the clock
Neev Group of Companies
Neev Vittoria, Nesbit Road. Next to Mazgaon Sales Tax Office, Mumbai - 400 010.
Mobile : 91 9920110003 Tel : + 91 22 64555555 Fax : + 91 22 61455566
Contact Person : Mr. Rohan Munde
Email : rohan.munde@neev.co.in Web : www.neev.co.in
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For high quality construction ….
Because we understand that Safety and
satisfaction is customer's top priority
Now well into the new
century’s second
decade, the world
is rethinking how
infrastructure should
work in the changing
social and economic
backdrop. Various
countries are coping
with the daunting
infrastructure obstacles
they face
(Part 2)
Mongolia, among other rapidly
growing economies, try to entice
foreign investors interested in profiting
from emerging market demand and
‘possibly igniting a more robust
worldwide recovery’ in the process.
These emerging-market forays are
‘not for the fainthearted—investors
must worry about sovereign risk’
and seek premium returns, which
government partners find hard
to muster in order to nail down
commitments.
‘Operators want assurance that
agreements will be adhered to’—a
high hurdle in places that have real
or perceived political and regulatory
issues. Flush with cash, the Middle
East Gulf states have the luxury to
spend freely in order to diversify
their energy-based economies into
trading hubs.
The sustainability of the huge asset
bases being built remains an open
question. And other regional players
caught up in the Arab Spring face
problematic outlooks for executing
needed projects.
Infra in changing world order
APM Terminals, Mumbai PARIS Paris airport
ADELAIDE Adelaide, Australia

The use of steel in construction
is no longer limited to reinforcement
for concrete. Steel construction is
evolving from boxlike steel structures
to aesthetically pleasing designs.
As more and more people are
experiencing the advantages of metal
buildings, and skill sets across the
value chain are improving, this shift is
increasingly gaining momentum.
Tata BlueScope Steel was
established to offer value added
steel products and solutions to its
customers across South Asia. The
Building Solutions Business division
brings the desired focus to delivering
the best-in-class metal building
solutions.
Tata BlueScope Building Solutions
currently offers design, manufacture,
supply and erection of complete
metal building solutions, under its
premium BUTLER®
Building Systems
and contemporary ECOBUILD™
Building Systems brands.
The ‘FM Approved’ MR-24®
Standing Seam Roof System, offered
exclusively with BUTLER®
buildings,
has a one-of-a-kind 360 deg Pittsburg
Double Lock Seam. This seaming
process is similar to what is adopted
for beverage cans. We offer a 10 year
leak proof warranty on MR-24®
.
also offers the factory punched BR-
II™ Roof System. With ECOBUILD™
buildings, roof options include
TRIMDEK®
and CUSTOM ORB®
profiles. Liner panels, Decking options,
and several optional accessories are
also offered.
Primary structural frames are
manufactured by Tata BlueScope
TATA BLUESCOPE
Exceptional PEB solutions
RSB’s new products in JV with overseas
partners at AUTOEXPO 2014
Building Solutions with careful
consideration to material and
workmanship. Secondary and
cladding elements are roll-formed
with strict compliance to process and
quality. For optimum performance
across the life of the building, all
accessories and components are
sourced from the best.
Key customer benefits
For an industry where the potential
to supply exceeds market demand,
capacity is a bit of a misnomer. It
is ‘capability’ that has a far more
significant role to play. Our capability
to meet customer expectations of on-
time, leak-proof and safe erection of
their metal buildings is what sets us
apart from the competition.
On-time delivery
The most important need of a
project perhaps is: to be completed
on-time. Over the last few years,
has adopted ‘Critical Chain Project
Management’ approaches to facilitate
on-time completion of projects. We
follow full kit rules, avoid frequent
shifting of priorities, maintain waiting
bucketsandconstantlymonitorproject
progress across all stages of project
execution. Our delivery performance
has improved significantly, and we are
able to provide accurate updates on
project status.
Leak-proof roof
The next priority for metal buildings
is leak-proof performance. Typical
sources for leakages in metal
buildings are laps, ends, piercings
and roof openings. Early leakages
can be attributed to a combination of
poor workmanship, tools and even
materials. However, leakages can
develop over a period of time, due to
thermal expansion and contraction
caused by changes in ambient
temperature.
A dedicated group within Tata
BlueScope Building Solutions has
extensively analysed reasons for
leakages, and has developed check
lists & methods, acquired special
tools and conducted extensive
Coupling for RSB pan India and
overseas with use of latest state-of-
art-technology from Fontaine”.
Fontaine Fifth Wheel is the
European division of Fontaine
International Inc, the largest Fifth
Wheel Coupling manufacturer in
the world. Fontaine Fifth Wheel
has its corporate headquarters in
Birmingham and Alabama in the
United States.
It is a member of the Marmon
Highway Technologies Company
which supports the transportation
industry the world over with a wide
range of high quality products and
services.
Fontaine Fifth Wheel is a
Marmon Highway Technologies/
Berkshire Hathaway company. As
the European arm of the largest Fifth
Wheel Coupling manufacturer in the
world, Fontaine Fifth Wheel provide
a wide range of specialist fifth wheel
and trailer coupling solutions that are
produced to the highest standards.
With the launch of these new
products at Autoexpo, RSB will be
expanding its global foot print across
international arena significantly.
RSB Transmissions (I) Ltd has
unveiled a range of new products in
joint venture with overseas partners
at Autoexpo 2014 Components Show
at Pragati Maidan, New Delhi.
Speaking on the occasion, S K
Behera, Vice Chairman & Managing
Director, said that they have launched
fully assembled manual/power
steering gears and also the auto
components, viz steering rack &
pinion, tie rod, hydraulic pump and
aluminium pump in ultra-modern
tech facilities in partnering with DHB
Automotivos, Brazil, a 150-million
US$ global enterprise, who are the
largest manufacturer of passenger car
steering system in Latin America.
He further added, “These new
products with overseas venture will
enable RSB to make entry into Latin
American market, besides other
global market segment. It will also
then suggest optimised solutions.
The objective is to create aesthetically
pleasing buildings that match the
functional, as well as aspirational
requirements.
gets access to thelatest developments
in technology through our principals,
Butler Manufacturing USA. Several
listening posts have been established
to gain an understanding of emerging
customer needs. We have even
created one for addressing customer
complaints in a formal and structured
manner.
Latest safety techniques
is continuously investing in building
internal capabilities, as well as
developing logistics and builder
partners. This is critical for meeting
another key customer requirement,
safe and incident-free project
completion.
Our erection practices today
leverage the most modern equipment
and practices. For example, we have
made use of boom-lifts, instead of
scaffolding, mandatory for all our
projects. This not only prevents
accidents, but also helps in faster
erection.
Operating philosophy
has already completed in excess
of 1,000 projects for industrial,
warehousing, commercial and
infrastructure applications, across
various locations in India. Our list of
clients includes several prominent
Indian and overseas organizations.
Our operating philosophy is
strongly anchored to serving markets
which are looking for the highest
standards of engineering excellence,
superior quality of products and
workmanship, and timely completion
of buildings.
MR-24®
Roof System
MR-24®
is probably the only ‘truly’ floating roof system currently
available in the market! MR-24®
roof sheets are seamed continuously,
along the entire length of the sheet, using a Roof Runner®
. The 180deg
field formed seam of MR-24®
is least susceptible to malfunction.
Purlins and sheets for MR-24®
installation are supplied pre-punched.
MR-24®
sheets are fixed to the purlins below using a specially designed
clip assembly. High strength SCRUBOLT™ fasteners are used to secure
the clips to the purlins. The clips are then seamed along with the MR-
24®
roof sheets. The clips are installed such that they allow smooth
movement along both directions.
All accessories for the MR-24®
Roof System are fixed to the roof
sheets, and not the purlins below. The roof sheets are fixed at the eaves
only. The gable trims and ridge are designed to allow for free movement.
As a result, when thermal expansion and contraction takes place, the
entire roof moves, alongwith the roof vents and skylights.
MR-24®
end laps are always staggered, and the splices are always
placed just above a purlin. This prevents potential leakages due to foot
traffic on the roof and wind uplift phenomenon. Specially developed
sealants of MR-24®
have a high butyl content, for better leak-proof
performance and longevity.
Another advantage of MR-24®
roof sheets is that they are easily
stacked. This makes bundles of sheets suitable for handling and
transportation, unlike long lengths of field roll-formed sheets which
are susceptible to handling damages. Since MR-24®
roof panels are
roll formed in the factory, our clients are assured of the best quality of
materials and workmanship.
EQUIPMENT
S K Behera, Vice Chairman & Managing Director, at RSB Autoexpo Stall, Delhi, with the backdrop of new products launched
be catering to existing OEMS, viz.
GM, Renault, Volkswagen, Ford, Fiat
and PSA Peugeot Citroen and host
of other clients besides after-sales
market.
“The new venture gives an
opportunity for RSB to diversify
its product and market segment
predominantly volume constrained
commercial vehicle dependence to
the growing passenger car segment.
Besides, it will also make in-roads in
Russian market”.
RSB, on the occasion, has also
launched technologically advanced
5th Wheel Coupling for domestic
market under the brand name RSB-
Fontaine and export to Fontaine, UK.
Speaking on this product, Behera,
said, “This joint venture with Fontaine
UK will boost growth of Fifth Wheel
Tatabluescopesteel
training of personnel, at our in-house
training center. We monitor leakage
instances in our buildings, and have
seen significant reductions since.
Fully engineered solutions
Each metal building is unique, like
a signature or a thumb impression!
Our teams get involved early, with
project architects, consultants and
owners, to understand the specific
requirements of each building and

February 17-23, 2014 10
(Contd. from pg. 5)
Editor : Bina Verma
Editorial Team: Dilip Phansalkar, Paresh Parmar, Remona Divekar Designer: Rajen Mistry
Business Team: Milind Joglekar (9833357005), Shantanu Baraskar (9820904795), Seema Kohli (9820904931)
Email: contact@konstructionreview.com, editor@mmronline.com
No part of the contents of Construction Industry Review, in abridged or unabridged form,
can be reproduced without the written permission of the Editor. CIR does not accept any
responsibility for statements and opinions expressed by the authors.
construction
Satec Envir Engineering
Satec is a brand name in the pre-
fabricated structure market, growing
at a phenomenal speed in national
and international markets. Satec’s
pre-fabricated structure stand out
as we never compromise on quality
of the products which can withstand
high winds and seismic zone.
We manufacture everything in-
house and have invested in building
a state-of-the-art production unit
1,40,000 sq ft in Bhuj, Gujarat. We
internal partitions are unique. These
structures can be made in a short time
span and are far more economical
than conventional buildings.
We have recently acquired contract
of to supply per fabricated residential
colonies in Bhutan and also completed
work in Africa and Australia for low-
cost residential colonies. We are
also part of a prestigious coal power
project in Jharkhand for supplying
conveyor gallery and trestle and also
commissioned for 30 mw solar power
project in Surendernagar, Gujarat.
Satec is one of the leading names
in the portable cabins industry with its
promise of trust and quality. These
fully modular and mobile cabins are
cost-effective and efficient solutions
to site offices and residences.
The reason these cabins have
become a popular choice in the
infrastructure sector is due to
their resilient nature and ability to
withstand harsh weather conditions.
The polyurethane material which is
used for building these panels has
insulating qualities. Satec has been
providing turnkey solutions to many
leading companies like GPCL, Essar,
Sun Edision, and many more.
Constrained by austerity
Over the past two decades,
Europe has made significant strides
in building out motorways and
laying track for impressive high-
speed passenger rail systems,
as the European Union prioritized
connectivity projects and funnelled
funds into poorer eastern countries
to boost their prospects.
Now, the unsettling aftershocks of
theEuropeancreditdebaclehaveshort-
circuited many initiatives, as countries
rein in spending and deal with paying
down debt. In the United Kingdom,
public support for infrastructure
grows behind a national plan.
The government sets an ambitious
agenda to advance railroad, airport,
and energy agendas, but finding
enough money stands in the way
of full execution. Reassessments
of prior transactions have led to a
stronger public finance role in ‘private’
undertakings.
Despite fiscal constraints, France
continues to expand its high-speed rail
system, improving connectivity across
the country, and makes investments in
roads and canals. The infrastructure
picture in Spain is more troubling, with
most major plans grinding to a halt, a
spate of bankruptcy declarations in
toll roads, and rethinking of subsidies
provided for alternative energy.
Only Germany can afford to hold
back on infrastructure investments.
Sitting at Europe’s crossroads, the
European mainstay’s modernized
transport networks have benefited
from steady investment in maintaining
and improving new and expanded
airports and ports.
In Asia, Japan — bogged down
by 20 years of stagnation and debt
— takes the opposite tack. The new
government doubles down on more
infrastructure stimulus to try to pump
up the moribund economy and deal
with the damage wrought by the
tsunami.
Underfunded budgets
Due to fiscal constraints at the
federal level and fractured jurisdiction
over rail and other key infrastructure
assets, the United States lacks a
national infrastructure investment
plan.
State, regional, and local agencies
arefillingthevoid,addressingmounting
issues to stretch underfunded budgets
for fix-it-first initiatives and find ways to
build big-ticket projects like new roads,
light-rail lines, transport terminals, and
levees. Increasingly, public leaders at
all levels are embracing PPPs while
advocating various tax and user fee
hikes.
Australia and Canada, similarly
sized countries (both in population
and territory) with resource-based
economies, managed to weather the
global recession while developing
and implementing modest national
infrastructure plans using well-thought-
out PPP procurement approaches to
help finance projects.
Aging highway systems and urban
congestion pose ongoing challenges,
but both countries make progress in
addressing their substantial needs,
buoyed by relative fiscal calm. Paced
by China, many Asian nations continue
to make infrastructure development a
high priority, building out some of
the most advanced and integrated
systems in the world.
Infra innovation
From Tokyo to Beijing to Seoul and
Singapore, efficient new international
airport terminals connect by high-
speed rail to centre-city commercial
districts and state-of-the-art mass
transit lines link to residential
neighbourhoods.
Some observers question whether
China has overextended itself by
constructing far-flung intercity high-
speed rail lines and expressways,
while still lacking basic water and
sewage treatment systems in many
regions.
But China’s infrastructure push is
not over, and continues both inside
the country and outside of it. India
plays catch-up, needing more foreign
investment not only to meet the
demands of an exploding population,
but also to realize the potential for
expanding its manufacturing and
service sector industries, which cope
with daily power brownouts and
transportation chaos.
Indonesia faces similar emerging-
market growing pains — remedying
Jakarta’s traffic gridlock takes on
particular urgency. Japan, a perennial
leader in infrastructure innovation, is
adding to its prodigious government
debt in rebuilding the region
devastated by the 2011 earthquake
and tsunami, and aims to use fiscal
stimulus to jump-start an ailing
economy.
And Australia faces challenges
more similar to those faced by Europe
and North America in dealing with
how to revamp once-advanced
systems that no longer support its
heavily export-dependent economy.
China’s dilemma
Rising labour costs and tepid
demand from China’s primary
export markets slacken the ‘Middle
Kingdom’s’ once-torrid economic
growth track from a fairly consistent,
government-reported 10 per cent or
more annually to under 8 per cent
at year-end 2012 — still solid, but a
13-year low.
Inresponse,thecentralgovernment
of the Asian manufacturing behemoth
returns to its familiar stimulus playbook,
fast-tracking 60 infrastructure projects
with cumulative price tags of $158
billion and signaling that more
allocations may follow during the
year.
In fact, infrastructure may be one
of the country’s key growth drivers
in 2013, employing hundreds of
thousands of labourers who might
otherwise be out of work, supporting
myriad manufacturers, including
steel companies and machine
makers, and sustaining regional and
local governments in the expansion
of various road, rail, and subway
projects.
As a result, ‘China will continue
to outpace everywhere else’ in
infrastructure spending and building.
Indeed, over the past 20 years, trillions
of dollars’ worth of infrastructure
investment has transformed China into
an exemplar of modern urban transit,
expansive highways, vanguard high-
speed intercity rail, and highly efficient
ocean ports.
Late in 2012, the longest high-
speed rail route in the world —
covering 1,200 miles in an eight-hour
ride — opened between Beijing and
Guangzhou. The country’s ‘clustering
strategy’— building factories near
terminals served by major transport
lines — has proved ‘hard to beat’ for
many industries.
Despite the breakneck pace of
construction, many major Chinese
cities still lack adequate housing,
with China’s evolving housing policy
struggling to keep pace with demand
and cool pricing in the real estate
market.
This has led to an undersupply
of affordably priced housing units in
urban markets. Agricultural logistics
chains have also proved inadequate
in many rural areas. According to
McKinsey, China has only 452 airports
with paved runways compared
with more than 5,000 in the United
States and 700 in Brazil, its smaller
competitor. Also, the country does not
have a unified electrical grid.
Credit risk
Government leaders are pushing to
complete more projects to maintain the
world’s second-largest economy and
satisfy expectations of an increasingly
Patrick Phillips
CEO, Urban Land
Institute,Washington
Howard Roth
Global Real Estate
Leader, Ernst & Young
consumer-oriented population, which
will live primarily in urban areas —
forecasts indicate that by 2025 China
will have 200 cities with populations
exceeding 1 million.
But this ongoing infrastructure
boom remains mostly credit-fuelled,
adding to the country’s debt load
and heightening worries about
whether municipalities and regional
governments — not to mention the
central treasury — could become
‘overextended.’
The credit risk may be exacerbated
by Chinese banks’ underwriting
standards, which are seen as
less stringent than those used in
international practice. Interviewees
based in the region suggest that
Chinese financial institutions are
‘relationship driven,’ while other
bankers appear more stringent
—‘looking at projected revenue
streams, insurance, and proper
credit.’
For Chinese projects, ‘there’s
also a sense that the debt burdens
are greater than the revenues from
toll roads, power stations, and train
lines,’ but it is hard to tell given limited
and often inscrutable government
information.
Theseconcernsmountjustassome
neighbours, including Vietnam and
Indonesia, begin to compete against
China at cheaper manufacturing price
points, and even US factories regain
some favour due to a combination
of lower energy and shipping bills.
How long can China maintain its
infrastructure spending spree in the
face of debt burdens and competitive
realities?
(Continued in next issue)
(Courtesy: Ernst & Young)
have top line PUF, continuous panel
production machine, roll forming
machine, CNC plasma cutting
machine, galvanizing and power
coating unit. We offer all kinds of
portable cabins at a rate of 250-300
per sq feet onward.
Satec offers multi-storey fabricated
buildings which are made of
combination of cement cladding
and steel. These are attractive and
extremely strong. The walls and
changing world
(Contd. from pg. 7)
Raj Manohar
Lead Analyst, Beroe
Consulting (I) Pvt Ltd
Path ahead for PEB industry
The growth of this market has
remained passive, in tandem with the
construction industry, in the recent
past owing to the economic slowdown
but the market is poised to swing back
to the projected rate of 15-20 per cent
yearly growth.
This will be driven by improving
investor sentiment and government
investments in the Indian infrastructure
sector. PEB suppliers will specialize in
areas of heavy engineering and large
infrastructure projects and will carve
a niche for themselves by creating
separate divisions for this type of
buildings. Airports, international
terminals, power plants and ports,
etc will be potential end-users of huge
steel structures and PEB suppliers
are targeting to specialize in building
such facilities.
Presently, the fabrication approach
for PEB is workshop fabrication, but
certain portions of fabrication are
undertaken on the site and the next
decade will witness a complete shift
of the fabrication approach to be
within the workshop so as to adhere
to best-in-class working standards
and regulations.
In spite of the challenges faced by
the industry, the PEB industry leaders
are driving the efforts for R&D on new
technologies which will help reduce
the impact of limitations.
Research and development on
products like High Performance Steels
(HPS), Fire-Resistant Steels, Steels
with increased durability, Corrosion-
Resistant Steels and Concrete-Filled
Steel Tubes (CFT) are key to the future
success of the market.
PEBs

February 17-23, 2014 12
Registered with the Registrar of Newspapers for India under No. MAHENG/2012/41844
Posted at Mumbai Patrika Channel Sorting Office, Mumbai - 400001, on Monday
Published on Monday, February 17, 2014
Regd. No. MH/MR/South-355/2012-14
News
ACREX India 2014 for
eco-friendly building services
Printed & published by Bina Verma on behalf of Asian Industry & Information Services Pvt. Ltd., and printed at Amruta Print Arts, 205, Tantia Industrial Estate, J. R. Boricha Marg, Opp. Kastruba Hospital, Mahalaxmi, Mumbai 400 011
and published at 1st Floor, Feltham House, 10, J. N. Heredia Marg, Ballard Estate, Mumbai 400 001. Tel.: 022-2266 0623. Editor: Bina Verma Annual Subscription : Rs. 5,000/-

EVENTS February 21-23, 2014
PlumbexIndia
Bombay Convention & Exhibition Centre, Mumbai
This show will be an ideal platform for participants to showcase their latest products and
services related to the building and construction sector.
Contact: AIM Expositions Pvt. Ltd.
AIM House, 78 Pankaj Society, Near Anjali Cross Roads,
Bhatta Ahmedabad
Tel: +(91)-(79)-40269999
Fax: +(91)-(79)-26620020
Contact person: Pooja Patel
Tel: +91-79-26620020
February 26-28, 2014
iBART EXPO
Gujarat University Exhibition Hall, Ahmedabad
One of the leading trade fairs for the building construction industry in India, which will
showcase the latest products and equipment in brick, roof and tile category.
Contact: Gattaca Communications
Communications House, 26 York Street,
London, United Kingdom
Tel: 044-2032-395572
Fax: 044-1538-398987
February 28–March 2, 2014
The Economics Times ACETECH
Chennai Trade Centre, Chennai
Exhibiting participants present an impressive range of marbles, tiles, ceramic products,
bath and kitchen fittings, paints and other associated products at this three day show. The
latest trends, innovations and updates from the construction and infrastructure industry
are also deliberated upon here.
Contact: Asian Business Exhibitions & Conferences Ltd,
530 Laxmi Plaza, Laxmi Industrial Estate,
New Link Road, Andheri (West) Mumbai
March 13-15, 2014
Concrete Show – 2014
Concrete Material & Machinery, Mumbai
Contact: UBM India, Unit No. 1&2, B-Wing 5th floor,
Times Square, Andheri-Kurla Rd, Marol,
Andheri (E), Mumbai - 59.
Phone: +91-22-61727272
Fax: +91-22-61727273
info.india@ubm.com
www.ubmindia.in
March 20-22, 2014
International Elevator & Escalator Expo
Bombay Convention & Exhibition Centre, Mumbai
The event provides an exclusive platform to get an insight into the market, trends and
technologies that drive the elevator and escalator industry. The forum, apart from fostering
thought leading insights from the stalwarts of the industry, also dwells extensively on
leading edge technological advancements to the most contemporary design trends, safety
standards, environment compliance codes and regulations.
Contact: Virgo Communications & Exhibitions Pvt Ltd
Virgo House, 250 Amarjyoti Layout,
Domlur Extension, Bengaluru
Tel: +(91)-(80)-25357028/41493996/41493997
Fax: +(91)-(80)-25357028
Contact person : G. Raghu
Mob: +91-9845095803
April 19, 2014
18th One-day Workshop on Jirnoddhara of RCC Buildings
The Institution of Engineers (India), Mahalaxmi, Mumbai
The workshop contains structural audit, upgrading (housekeeping, regular maintenance,
repairs, rehabilitation, fixing leakage, waterproofing of RCC buildings and a new concept
to construct durable RCC structures without leakage
Contact: Jayakumar Jivraj Shah
Tel: 28483541
Mobile: 9819242649
May 16-18, 2014
Roof India 2014
Chennai Trade Centre, Chennai
The 13th edition of Asia’s largest roofing and allied products event provides the ideal platform
for the building construction and infrastructure industry fraternity to converge, network and
strike lucrative business deals and establish business partnerships and joint ventures.
Contact: International Trade & Exhibitions India Pvt Ltd
4th Floor, Sekaran Complex, Plot 172-173
IT Expressway OMR , Thoraipakkam
Chennai 600097
Mobile: +91 98400 43691
Email : sudeep@itei.in
URL : www.itei.in
In line with ACREX India’s traditional
focus on energy-efficient technologies,
its organizer ISHRAE will set an
example for responsible use of natural
resources. The 10,000 trees to be
planted will result in a huge reduction
of the trade show’s carbon footprint.
The trees will be planted by the Indian
NGO Sankalp Taru.
ISHRAE is subsidizing the costs
for most trees, supplemented by
contributions from the exhibitors.
The trees can be located via GPRS
supported tags and their growth can
be monitored over time. The names of
those contributing will be tagged on
the trees which will be looked after by
local farmers, who will in the end also
harvest the yield.
By planting a tree, exhibitors
therefore not only reduce the carbon
emissions of the trade fair, but also
contribute to the environment on a
long-term basis, while supporting local
farmers and their families.
“With this initiative we want to set
an example not only for our show,
but for the whole industry. At ACREX
India 2014, we are taking a great step
towards the future,” explains Ashish
Rakheja, Chairman of ACREX India
2014.
In addition to reducing its carbon
footprint, the exhibition also focuses
on renewable energies, such as
photovoltaic, tidal and wind energy,
and their use and application fields in
the HVAC&R industry. To visualize this
endeavour, the organizers of ACREX
India will establish an Innovation
Gallery – a pavilion constructed from
reusable bamboo poles and jute
rope, showcasing India’s first (self-)
sustainable township of its kind.
The pavilion will highlight both
passive and active design strategies
to be used on an architectural as well
as on an urban design scale. Furniture
made from waste material will decorate
the pavilion along its axis, transforming
the passage into a comfortable stay.
Interplay of corridor space and
niches on both sides, created by
varying the width of the structure, will
provide zones where one can rest and
enjoy the local scenery and exhibition.
Ashish Rakheja says, “It is our aim to
encourage the industry to follow the
principle of three Rs in their business
as much as possible: Reduce, Recycle
and Reuse.”
The exhibition not only provides
an internationally renowned setting to
showcaseproductsanddevelopments;
concurrent to ACREX, India ISHRAE
also organizes a rich workshop and
conference programme.
One of the key conferences is on
‘Green Buildings’, supported by the
Indian Ministry of New & Renewable
Energy. Its aim is to raise interest
among engineers, students and
industry experts towards energy-
efficient buildings.
Conditioning Engineers (ISHRAE) and
NürnbergMesse India.
The construction industry is India’s
second largest after agriculture,
which has traditionally been the
country’s largest economic factor.
With its expanding economy and high
urbanization rate, India is in need of
extended infrastructure, a requirement
strongly supported by government
funding. Today, 32 million people in
India are employed by the construction
industry, whose growth is expected to
stay strong over the coming years.
ACREX India 2014 offers the
construction industry the perfect
platform to link its various sectors with
international partners. The exhibition,
which has grown rapidly over the past
few years, will host country pavilions
from the US, Germany, Italy, Korea
and China.
Additionally, exhibitors from
Czech Republic, France, Malaysia,
Netherlands,SaudiArabia,Switzerland,
Thailand, UAE, UK and Ukraine have
already signed up for participation.
“With ACREX India, we provide a
platform for our local products and
services while also exchanging
expertise and information in the
building services sector internationally,”
says Sonia Prashar, Managing Director
of NürnbergMesse India.
ACREX India 2014 not only
s h o w c a s e s p r o d u c t s a n d
developments from the HVAC&R
industry but also from allied building
services including plumbing and
fire safety, and window and facade
products. These are at the centre of
the concurrent exhibition fensterbau/
frontale india, which ACREX India
participants can visit free of charge.
WhenSouthAsia’sleadingexhibition
on air-conditioning, refrigeration &
building services, ACREX India 2014,
will open its doors from February 27 to
March 1, 2014, and will set an example
for moving towards a carbon-neutral
HVAC&R industry.
ACREX India is going to reduce
its carbon footprint with the help of
its exhibitors from Asia, Europe and
North America. 10,000 trees will be
planted all over India to compensate
CO2 emissions created in the course
of the event.
The show is organized by the Indian
Society of Heating, Refrigeration & Air

Construction Industry Review 7- 2014

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