Volume 3 ● Issue No 39 ● September 29-October 05, 2014 ● Price: Rs 100 An MMR, Braj Binani Group Publication Steel to go up on back of infra projects: Sail The Government of India’s focus on accelerating growth in manufacturing and infrastructure through development of smart cities, ports, power plants, development of industrial corridors and revival of Special Economic Zones (Sezs) would boost steel demand substantially, results of which will be seen in the near future itself, according to Chairman of the Steel Authority of India Ltd (Sail), CS Verma. Elaborating on the company’s vision at its annual general meeting, he said, “Sail is finalizing its Vision 2025 document, which will steer the company to increase its production capacity of Hot Metal to 50 million tons, along with related/enabling business activities.” Implementing the Vision 2025 would entail an investment of about Rs 1,50,000 crore in addition to the investment made in the current phase of expansion. Sail has been making an average expenditure of more than Rs 10,000 crore each year for the past five years and it plans to make a capital expenditure of Rs 9,000 crore on modernization and expansion during the financial year 2014-15 as well. In his address to shareholders Verma informed that facilities of about Rs 26,000 crore have already been operationalized and further explained that cumulatively, orders for Rs 62,778 crore have been placed under the current modernization and expansion plan of Sail. The expenditure till L-R: CS Verma, Chairman, Sail; Firdose Vandrevala, Executive VC, Essar Steel; Sajjan Jindal, CMD, JSW Steel Ltd; Rakesh Singh, Steel Secretary; Vishnu Deo Sai, Minister of State for Steel; Ajay Shriram, President-CII and Chairman, DCM Shriram Ltd; and Naveen Jindal, Chairman, Jindal Steel & Power Ltd, among others at a steel event in New Delhi. National highway projects delayed for various reasons 2013 UP Bihar Assam Jharkhand 13 18 20 22 0 5 10 15 20 25 Source: Ministry of Transport ghway projects Roadblocks to fulfill highway building plan The road transport sector in India is undergoing a transformational period and the Narendra Modi- led National Democratic Alliance (NDA) has been presented with the opportunity to handle this rugged transformation, which encompasses numerous hurdles that have been plaguing this sector now as well as in the past. In the past few years during the tenure of the UPA government, the Ministry of Road Transport & Highways had targeted to build roads at a rate of 20 km per day. But the realistic picture throughout 2009-2013 was dismal as the average length of national highways built was just under 8 km. The key issue that has been strangulating this promising sector is attributed to land acquisition, followed by cutthroat competition and costlier loans from banks due to weak economic growth. Considering these hurdles that stand in the way of progress, the new government has set the per day target at 25 km until 2016, post which the bar will be raised to 30 km. Although rating agencies like Crisil have projected the realistic figure at approximately 11 km for the period between 2013-17, there is a lot of optimism from the authorities. The recent Union Budget allocation of INR 37,880 crore towards the highways and road sector will surely expedite the transformation of this sector during the 2014-18 period of the Modi government. ‘Centre, states should join forces to attract investment’: Modi Development of states is important and these have to work together with the Centre to attract investment, according to Prime Minister Narendra Modi who stressed on ensuring smoother state-Centre relations for facilitating business at the launch of his ‘Make in India’ campaign. The ease of doing business, focussing on PPPs (public private partnerships), and harnessing the potential of ‘Democracy, Demography and Demand’, were the key focus of PM’s speech. The campaign aims to put India prominently on global manufacturing map and, in turn, facilitate inflow of new technology and capital, while creating millions of jobs. “We must stress on two FDIs -- First Develop India and Foreign Direct Investment. For Indians FDI is a responsibility; it means to First Develop India; for global investors FDI is an opportunity in the form of Foreign Direct Investment,” he explained. Focusing on job creation through growth of the manufacturing sector, Modi said, “We need to enhance purchasing power of Indians. We need to create jobs to move from poor to middle-class bracket. Treat India as not just a market. See every Indian as an opportunity to increase their purchasing power,” Modi emphasised. “We have to change economic dynamics; we have to improve manufacturing in a fashion that benefits the poor. This is a cycle, move poor people towards being a part of the middle-class,” he added. “Manufacturing boost will create jobs, increase purchasing power, thereby creating a larger market for manufacturers,” he noted, The industry body Ficci, in its document on ‘Make in India’ unveiled to coincide with the official launch of the campaign, said, “The ‘Make in India’ campaign can become the trigger in transforming Indian manufacturing, with its share in GDP languishing at 15-16 per cent for several years. Given the need to create a million non-farm jobs every month, manufacturing would have to grow at 12-14 per cent annually.” The Ficci document states that India is unarguably an attractive investment destination given its rich demographics that feed into the intrinsic demand and supply elements of businesses. The potential however has remained mostly untapped for want of a truly enabling environment required for businesses to flourish. The Ficci document emphasized that the focus must now be on: Improving business environment through ease of doing business and an encouraging fiscal framework; enabling manufacturing set-up by providing conducive eco-system that supports factor advantage, nurtures innovation and strengthens inter- linkages with other industries and institutions; and attracting greater capital through further liberalisation of foreign direct investment in key sectors. Ajay S Shriram, CII President, welcomed the launch of the campaign, calling it a new deal for India’s manufacturing sector. He said, “The idea that security of investment and consistency in policies are most important for developing trust of investors. The assurance given by the Prime Minister that the Centre and states will work as a team is important for industry. His emphasis on self- certification will go a long way in reducing difficulties for businesses.” “Another new idea in the PM’s speech was that India is ideally placed to Look East and Link West. This will help products manufactured in India to enter the global value chain. Digital India should lead to much better governance that will help the country improve its rank in the Ease of Doing Business.” Further to the campaign, Sunil Mathur, CEO, Siemens India, remarked, “ Indians and India are renowned for innovation. We start with an idea and then work backwards to develop state-of-the-art manufacturing facilities. This enables us to do things quicker and better than anyone else.” Additionally, being a young country, we have immense raw talent which can be tapped and developed into a skilled workforce.” A n n i v e r s a r y S p e c i a l (Contd. on pg 15) August 2014 has been more than Rs 55,000 crore. Meanwhile, at a recent ‘Steel Summit 2014’ organized by the Confederation of Indian Industry (CII), Minister of State for Steel, Vishnu Deo Sai announced that a new steel policy is on the anvil to facilitate the steel industry in increasing production to 300 mtpa by 2025, up from the present 81.2 mtpa. The new policy is likely to focus on capacity addition and address issues related to raw material security, environment challenges and land acquisition. Steel Secretary Rakesh Singh said that the government’s effort to increase the share of manufacturing in GDP from 16 per cent to 25 per cent put great responsibility on the steel sector.
All about the construction and real-estate industry
Citation preview
1. September 29-October 05, 2014 1 An MMR, Braj Binani Group
Publication Volume 3 Issue No 39 September 29-October 05, 2014
Price: Rs 100 Centre, states should join forces to attract
investment: Modi Steel to go up on back of infra projects: Sail
L-R: CS Verma, Chairman, Sail; Firdose Vandrevala, Executive VC,
Essar Steel; Sajjan Jindal, CMD, JSW Steel Ltd; Rakesh Singh, Steel
Secretary; Vishnu Deo Sai, Minister of State for Steel; Ajay
Shriram, President-CII and Chairman, DCM Shriram Ltd; and Naveen
Jindal, Chairman, Jindal Steel & Power Ltd, among others at a
steel event in New Delhi. The Government of Indias focus on
accelerating growth in manufacturing and infrastructure through
development of smart cities, ports, power plants, development of
industrial corridors and revival of Special Economic Zones (Sezs)
would boost steel demand substantially, results of which will be
seen in the near future itself, according to Chairman of the Steel
Authority of India Ltd (Sail), CS Verma. Elaborating on the
companys vision at its annual general meeting, he said, Sail is
finalizing its Vision 2025 document, which will steer the company
to increase its production capacity of Hot Metal to 50 million
tons, along with related/enabling business activities. Implementing
the Vision 2025 would entail an investment of about Rs 1,50,000
crore in addition to the investment made in the current phase of
expansion. Sail has been making an average expenditure of more than
Rs 10,000 crore each year for the past five years and it plans to
make a capital expenditure of Rs 9,000 crore on modernization and
expansion during the financial year 2014-15 as well. In his address
to shareholders Verma informed that facilities of about Rs 26,000
crore have already been operationalized and further explained that
cumulatively, orders for Rs 62,778 crore have been placed under the
current modernization and expansion plan of Sail. The expenditure
till Roadblocks to fulfi ll highway building plan National highway
delayed for various reasons 2013 UP Bihar Assam Jharkhand 13 18 20
22 0 5 10 15 20 25 Source: Ministry of Transport ghway projects The
road transport sector in India is undergoing a transformational
period and the Narendra Modi-led National Democratic Alliance (NDA)
has been presented with the opportunity to handle this rugged
transformation, which encompasses numerous hurdles that have been
plaguing this sector now as well as in the past. In the past few
years during the tenure of the UPA government, the Ministry of Road
Transport & Highways had targeted to build roads at a rate of
20 km per day. But the realistic picture throughout 2009-2013 was
dismal as the average length of national highways built was just
under 8 km. The key issue that has been strangulating this
promising sector is attributed to land acquisition, followed by
cutthroat competition and costlier loans from banks due to weak
economic growth. Considering these hurdles that stand in the way of
progress, the new government has set the per day target at 25 km
until 2016, post which the bar will be raised to 30 km. Although
rating agencies like Crisil have projected the realistic figure at
approximately 11 km for the period between 2013-17, there is a lot
of optimism from the authorities. The recent Union Budget
allocation of INR 37,880 crore towards the highways and road sector
will surely expedite the transformation of this sector during the
2014-18 period of the Modi government. Development of states is
important and these have to work together with the Centre to
attract investment, according to Prime Minister Narendra Modi who
stressed on ensuring smoother state-Centre relations for
facilitating business at the launch of his Make in India campaign.
The ease of doing business, focussing on PPPs (public private
partnerships), and harnessing the potential of Democracy,
Demography and Demand, were the key focus of PMs speech. The
campaign aims to put India prominently on global manufacturing map
and, in turn, facilitate inflow of new technology and capital,
while creating millions of jobs. We must stress on two FDIs --
First Develop India and Foreign Direct Investment. For Indians FDI
is a responsibility; it means to First Develop India; for global
investors FDI is an opportunity in the form of Foreign Direct
Investment, he explained. Focusing on job creation through growth
of the manufacturing sector, Modi said, We need to enhance
purchasing power of Indians. We need to create jobs to move from
poor to middle-class bracket. Treat India as not just a market. See
every Indian as an opportunity to increase their purchasing power,
Modi emphasised. We have to change economic dynamics; we have to
improve manufacturing in a fashion that benefits the poor. This is
a cycle, move poor people towards being a part of the middle-class,
he added. Manufacturing boost will create jobs, increase purchasing
power, thereby creating a larger market for manufacturers, he
noted, The industry body Ficci, in its document on Make in India
unveiled to coincide with the official launch of the campaign,
said, The Make in India campaign can become the trigger in
transforming Indian manufacturing, with its share in GDP
languishing at 15-16 per cent for several years. Given the need to
create a million non-farm jobs every month, manufacturing would
have to grow at 12-14 per cent annually. The Ficci document states
that India is unarguably an attractive investment destination given
its rich demographics that feed into the intrinsic demand and
supply elements of businesses. The potential however has remained
mostly untapped for want of a truly enabling environment required
for businesses to flourish. The Ficci document emphasized that the
focus must now be on: Improving business environment through ease
of doing business and an encouraging fiscal framework; enabling
manufacturing set-up by providing conducive eco-system that
supports factor advantage, nurtures innovation and strengthens
inter-linkages with other industries and institutions; and
attracting greater capital through further liberalisation of
foreign direct investment in key sectors. Ajay S Shriram, CII
President, welcomed the launch of the campaign, calling it a new
deal for Indias manufacturing sector. He said, The idea that
security of investment and consistency in policies are most
important for developing trust of investors. The assurance given by
the Prime Minister that the Centre and states will work as a team
is important for industry. His emphasis on self-certification will
go a long way in reducing difficulties for businesses. Another new
idea in the PMs speech was that India is ideally placed to Look
East and Link West. This will help products manufactured in India
to enter the global value chain. Digital India should lead to much
better governance that will help the country improve its rank in
the Ease of Doing Business. Further to the campaign, Sunil Mathur,
CEO, Siemens India, remarked, Indians and India are renowned for
innovation. We start with an idea and then work backwards to
develop state-of-the-art manufacturing facilities. This enables us
to do things quicker and better than anyone else. Additionally,
being a young country, we have immense raw talent which can be
tapped and developed into a skilled workforce. Anniversary Special
(Contd. on pg 15) August 2014 has been more than Rs 55,000 crore.
Meanwhile, at a recent Steel Summit 2014 organized by the
Confederation of Indian Industry (CII), Minister of State for
Steel, Vishnu Deo Sai announced that a new steel policy is on the
anvil to facilitate the steel industry in increasing production to
300 mtpa by 2025, up from the present 81.2 mtpa. The new policy is
likely to focus on capacity addition and address issues related to
raw material security, environment challenges and land acquisition.
Steel Secretary Rakesh Singh said that the governments effort to
increase the share of manufacturing in GDP from 16 per cent to 25
per cent put great responsibility on the steel sector.
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10. IN PERSON September 29-October 05, 2014 3 East and Central
Africa the next growth drivers In the second half of the financial
year, execution of infrastructure and real estate projects are
expected to start. How do you see this bringing relief to the
cement industry? Firstly, the demand for cement is driven by
infrastructure spend, which contributes to more than 40 per cent of
the demand in India. In addition, there are other factors like
easing of financials, mortgages and availability of funds that
drive businesses, housing and supporting industries which drive
demand. In the past 6-7 years, India has gone through a pretty
rough time and theres a lot of catching up to be done. What we are
hearing from the new government, its policies and the way things
are moving forward, I see that a major catch-up and faster
development. For the cement industry, as infra projects get
implemented, I foresee a minimum of 25-30 per cent increase in the
demand. When this happens, the price of cement too would improve.
This will bring substantial relief to the industry. What is the
capacity utilisation rate of cement manufacturers at present? How
do you see its impact on prices going further? Most of cement
makers today are operating at about 65-70 per cent capacity. Going
further as capacity utilisation rises, price in the market too will
increase since cement availability will become lesser. Its a
supply-demand situation as the demand increases the supply will
contract, which will lead to better prices. However, in India there
is very less per capita utilisation of cement as compared to global
average. How do you see it improving? When you look at
infrastructure in Europe, or other Far East countries -- like if
you compare Malaysia, Hong Kong, cities like Beijing, with major
towns in India it is observed that our infrastructure is way behind
and has yet to catch up. So in emerging markets or countries in
developing world, I can literally see doubling of per capita cement
consumption. This doubling can only come through infrastructure
spend which depends on the government decisions. The government has
to partner most of these initiatives and through PPPs (Public
Private Partnerships) it is heading in the right direction. I feel
that from the current low per capita consumption of 100-120 kgs, it
should double -- if that doubles then the demand will double, which
will lead to 100 per cent capacity utilisation. So to keep up the
pace, do you have any plans for capacity expansion? We have our
plans. We recently took over a plant in Gujarat and are looking at
another one in other part of India. However, our focus will of
course remain Rajasthan and Gujarat. Our vision is to double our
capacity by 2020, which is not far away now. About 80 per cent of
it will be in India and the rest will be in overseas market. What
do you expect from the government at Central and State level? At
Central level, of course we need the budget spend and the will The
paradigm shift has been from looking at our industry as competition
to partners. So, rather than try and compete with everybody within
the industry, we are saying let us partner, let us try and drive
economies of scale to reduce our cost, says Joey Ghose, Managing
Director, Binani Cement Ltd in an interview with Paresh Parmar.
Excerpts: these projects rests in the hands of state governments
that should look into speedy execution and approvals as theres a
lot of bureaucracy and red tapism involved in the acquisition of
land and control of land reserves. In terms of other challenges,
input costs like fuel have gone up. Are you passing on the price
rise to end-users or are you absorbing it? All industries for the
past 2-3 years, mostly, have absorbed this increase because the
market just cannot afford these increases. Cement is a very
capital-intensive industry as each company spends around $200-400
million to put up a plant and they have to fund this, they have to
service their loans. The industry cannot continue to absorb these
costs. We all know the cost of transportation will rise as
inflation is relatively high in India. So costs will rise, which
will have to be passed on to customers. There is no way out, this
is basic economics. Some developers associations are demanding
reduction in cement rates. Your comment please. It is wrong to fix
prices and form a cartel. However, economics prevail, its an issue
of supply and demand. When demand exceeds supply prices will go up.
down. However, we cannot drive their cost down, because inflation
impacts every employee. So at the end of the day economics will
prevail. This is botton line: Just as India grows, the price of
cement will go up; however, it will not go up abnormally, unless
there is an acute shortage whereby imports will come in. We are
surrounded by countries with excess capacities like Vietnam,
Indonesia, Pakistan, Iran, etc. Once imports start coming in then
again price correction takes place. I do not feel there will be an
abnormal price increase, but the industry has to sustain itself. We
have a 330 million-ton capacity in India. This industry needs to
sustain itself. There are small companies struggling to keep up
with latest tech due to lack of investments. In todays age we have
to be very careful and conscious about environment. Ideally, if
there is a technology that can reduce emissions, one should embrace
that technology. However, if we dont have capital to invest in it,
then you continue producing a not-so- clean-product which is bad
for industry and is bad for mankind. So it is only in the interest
of everybody that price goes up to a sustainable level, where all
industries could reinvest into their industry to modernise it, so
that we have lesser emissions, cleaner working environment, which
is good for everybody -- employees, customers, the whole world. So
what measures have you undertaken at BCL plant? BCL is one of the
most environment-friendly cement plants in India and globally. It
has its benchmark globally. We have the lowest emissions, we
harvest rainwater, we recycle water, we have waste heat recovery
system, so wastage is kept to a minimum. However, not all companies
can afford this. We are a sizeable company; we have reinvested and
have continuously upgraded our plants, so we are in a good shape.
Not everybody has been able to do it. Coming back to the inputs in
the making of cement, you just tied up with Pakistan-based lucky
cement One of our major inputs is coal. At the moment we are
importing our coal from South Africa. It is always beneficial to
partner with people, to create economies of scale. So we are
partnering with Lucky cement and others globally to enable us to
bring much bigger vessels -- about 120 thousand vessels which we
will share. We will tranship between a couple of companies. This is
one way of reducing cost. Freight cost is a significant portion of
the cost of coal. So if we can reduce this by partnering with a
couple of our suppliers it will be beneficial to everybody. So the
paradigm shift has been from looking at our industry as competition
to partners. So, rather than try and compete with everybody within
the industry, we are saying let us partner, let us try and drive
economies of scale to reduce our cost. This is the first initiative
and we will do more of these on gypsum, fly ash, slag, etc. We have
been importing a lot of slag from Japan and we are trying to do
this to partly reduce the cost. Any plans for product
diversification? We are using fly ash at the moment to make PPC
cement. In our other international business like in Dubai, we make
various products, since that market is slightly diversified. We
make 4-5 types of cement, slag cement, fly ash, limestone, etc. In
UAE we have ventured into white cement. So various products in that
part of the world. So what are your further business strategies
going to be? For India, we are focussing on our core market. I feel
that we spread ourselves too thin. Its all going back to supply and
demand. I am optimistic that with the change in market dynamics,
the demand from our core markets like Rajasthan and Gujarat will be
higher and we do not need to spread ourselves further. For me, the
idea is to focus on these core markets and on our services within
these markets ie, our logistics turnaround time will become much
quicker; our dealers will be given much more focus; well
consolidate our dealers, give them more tools to do business and
give them more visibility. So itll be a focussed branding: both
brand marketing and trade marketing to support our distribution
channels within our core market. With to develop the country by
providing adequate infrastructure. The infrastructure does not
exist throughout the north, south, east, and west, which is
limiting growth and the ability of rural areas to become more
urbanised. Roads, railways, electricity, water are all are linked
to cement demand. The Central government should have the will and
budget to implement these projects -- thats what we need from them.
The state government on the other hand, needs to share that vision
and track the direction and budget as provided by the Central
government. So the flow of implementation of Secondly, its your
input cost vis--vis your selling price. If your input cost is going
up at a certain percentage a month, your output, your costs,
selling price will go up. I am not saying that prices should be
standard across India. India is a vast country, so different costs
prevail -- its all about location. But every cement company has to
pass on its costs. As an industry we are becoming more and more
cost-efficient and focussing on cost-reduction. However, there is a
limit you cannot go beyond. It is a very heavy, energy-intensive
business. We can drive our energy cost down, we can drive our
labour cost down, we can drive our numbers this, I believe we can
enhance our loyalty and brand value. We have an extremely strong
brand, which is a global brand. However, we havent leveraged it
enough. So the focus now will be to leverage the brand value not
only in India but globally. In India, service is imperative and we
are going to focus on this for the next 3-5 years to stand out as
the best service provider and to partner with our major customers
and major dealers; and provide exceptional service to
infrastructure projects where we supply cement, which will make us
a unique player. We have to understand that we are not a mass
producer. We are a boutique cement company confining ourselves to
just a couple of states and we want to be the best in these two
states. So the focus will be on core markets, branding, services;
developing dealership network, so that we stand out from the rest
and come up as supplier of choice. How are you looking at your
overseas operations? We have 3 million ton clinker capacity in the
Northeast of China. China unlike many parts of the world is a very
fragmented market. So you have different cultures and business
practices within China. We are focussing on our core market, which
is the Northeast China. We have adequate clinker capacity; however,
we are now building our cement capacity. Just recently, we have
commissioned 1 million ton grinding unit and we are in talks of
acquiring further 2 million ton. So the growth in China will come
through cement capacity some of it organic, some of it through
acquisition. In the UAE, we are doing a 2 million ton of business.
We are setting up a green field plant in Fujairah which is 2.5
million ton. This capacity will be used to service East and Central
Africa. So through the UAE we are expanding in Africa. We already
have a strong market in Tanzania, we are expanding in Mozambique
and going further inland into Eastern and Central Africa. We
believe as a company that the future is in Africa. India is our
home country, we are an Indian company, so of course 100 per cent
focus remains in India. However, for the overseas growth of Binani
Cement, East and Central Africa is where the growth will come from.
What is going to be your short- and medium-term outlook? I feel
that the short-term is going to see some corrections. We are going
to see the capacities going up, we are going to see the demand
going up. However, prices wont go up significantly because there is
still a headroom for 30 per cent of unutilised capacity. For the
next 6 to 12 months I see all the players ramping up their
utilisation, leading to a marginal increase in price which should
sustain all the players. In the longer term, I see additional
capacities coming on that will lead to the requirement of
investment. In two years time I foresee a 20- 30 per cent rise in
the selling price of cement. This will be primarily driven by two
factors. One, the demand will overtake the supply, so the prices
will naturally increase; secondly, either there will be need for
imports or additional capacity. Both will result in a higher demand
for capital which will mean the demand for cash, which will lead to
the increase in prices. So I foresee medium-term at sustainable
price levels, not much increase, may be 5-7 per cent. But 18 months
down the line I foresee a 20-25 per cent rise in prices by which
time the demand should be higher than the supply.
11. INFRASTRUCTURE September 29-October 05, 2014 4 Massive
investment in infra and construction will witness dynamic growth in
CE industry How do you analyze the global bearing market for
construction equipment? What can be done to enhance productivity
and reduce downtime of equipment? Construction and mining equipment
cover a variety of machinery that perform various heavy load
functions under harsh conditions. Construction operators worldwide
are under constant pressure to get the equipment to maintain high
productivity and low downtime. In turn, equipment manufacturers are
under pressure to produce products with better performance and
functionality while complying with emission regulations. For
manufacturers, extending service intervals and cutting total cost
of ownership are critical success factors. In addition, at the
machine level, manufacturers need to manage power more effectively
besides having a fast, safe and efficient assembly process to drive
productivity, cut total costs and strengthen competitiveness.
Backed by unmatched rotating m a c h i n e r y e x p e r t i s e ,
d e e p construction machinery application experience, unique mix
of products, tools and technologies and a global footprint, SKF has
been helping OEMs meet these requirements with highly reliable,
fit-for-function solutions to meet challenges. Our unique
competence for power density improvement includes the use of
advanced simulation tools to help us develop solutions with optimal
balance between weight/size and energy output. From
maintenance-free products to customized, integrated units, SKF
solutions can help OEMs develop greener, low to no-maintenance
products. What would be the total size of Indian bearing market for
construction equipment and SKF solution with its market share? The
global rolling bearing market size in 2013 in volume was relatively
unchanged year-over-year and remains at SEK 320 and 330 billion.
The industrial original equipment bearing markets accounted for
almost 40 per cent of world demand and included manufacturers of
light and heavy industrial machines and equipment, as well as
aerospace, the off-highway and railway vehicles. Asias share of the
world bearing market was relatively unchanged and accounted for
almost 50 per cent compared with less than 30 per cent 10 years
ago. The Indian bearing market accounts for less than 5 per cent of
the world bearing market which is estimated to be around 70 billion
INR. Which are key drivers to boost construction equipment demand
in the next five years? As far as demand for construction equipment
is concerned, India is the worlds seventh largest country by area
and the second biggest by population, and is one of the most
dynamically growing construction equipment markets. Construction
comprises the second-largest sector within Indian economy. The
construction equipment market in India is expected to witness
dynamic growth in the near future due to the massive investment in
the infrastructure and construction industry from both public and
private enterprises. Bernard Tauveron, Global Segment Manager,
Construction & Defense, Business Development & New Market
Offering programmes, SKF India Ltd, declares that renewed focus in
mega infrastructure projects in sectors like roads, ports, power
plants, railways will drive demand for construction equipment, in
this interaction with Pramod Shinde. Excerpts: One can expect
renewed focus and attention in time to come towards mega
infrastructure projects in sectors like roads, ports, power plans
and amongst others, which will drive demand for construction
equipment. However, some challenges such as scarcity of land for
infrastructure development, delay in project clearances, and
availability of infrastructure debt funds hinder growth of the
market. With right efforts taken to tackle these challenges along
with a favourable policy environment, we can foresee boost in
construction equipment demand in the next five years. Can you
elaborate more about how SKF solution helps construction equipment
to perform better under heavy load and harsh condition? SKF is
geared up to cater to the demands of construction segment right
from design stage to service requirements of end-users. By
combining our global technical knowledge together with
understanding of local customer demands, we help customers overcome
their specific challenges based on our Lifecycle Management
approach. SKF Lifecycle Management is our proven approach to
optimizing equipment design and operation over its entire service
lifecycle. Backed by deep construction vehicle application
experience and a wide range of products and solutions, SKF is able
to deliver fully integrated, optimized solutions. We provide
complete solutions by way of bearings, sealing solutions, central
lubrication systems, condition monitoring and design engineering
for the off-highway, construction machinery. SKF has a broad range
of bearings types like standard tapered roller bearings,
cylindrical roller bearings, spherical roller bearings, plain
bearings, slewing bearings. Also, we have world-class unique
offerings like Y-bearings for agricultural applications; SKF
Explorer class spherical roller bearings and application-specific
sensorized bearings; all of which ensure reliability and
energy-efficiency to OEMs and end-users alike. Our comprehensive
range of sealing solutions for off-highway machines ranging from
application in engine and transmission, chassis and suspensions,
drivelines to undercarriages and hydraulic cylinders, help our
customers to reduce weight, noise and simplify installation. By
integrating mechanical, e l e c t r o n i c a n d i n f o r m a t i
o n technologies, we help customers to design smart products
through mechatronics that provide high reliability in harsh
environments and reduce maintenance cost. SKF also provides an
extensive range of customized lubrication systems which optimize
efficiency, reduce maintenance and enhance reliability. Thus, from
perfectly adapted, customized solutions to proven off-the-shelf
products, SKF delivers solutions that are enabling next-generation
performance benefits for construction equipment like reduced fuel
consumption, reduced environmental impact, increased equipment
service intervals, improved machine health and asset management,
improved ergonomics and operator comfort. Which key variants of
construction equipment get optimum support from SKF product to
increase their reliability? Through our deep construction vehicle
application experience, wide range of products and solutions, we
have successfully partnered many of the worlds top equipment
manufacturers with our fully integrated and optimized solutions
that deliver high performance output. We provide optimum support
and customized solutions to the whole range of construction
equipment like crawler excavators, road rollers, dump trucks,
backhoe loaders, wheel loaders, tele handlers as well as tunnel
boring machines. SKF product solutions help optimize the asset
lifecycle of equipment used in construction sectors please
elaborate Industrial operations everywhere understand that
effective management of assets throughout their lifecycle can
deliver significant value and reduce total cost of ownership. SKF
has been at the heart of machinery since 1907. Our history of
providing bearings, seals, lubrication, linear motion, actuation
and mechatronics solutions for OEMs in every major industry along
with construction gives us a unique depth and breadth of knowledge
of the assets. SKF Lifecycle Management is a proven approach for
maximizing productivity while minimizing total cost of ownership
for machinery over every stage, from specification and design to
operation and maintenance. From specification, design and
development, through to manufacturing and testing, we work with
OEMs in the construction industry to solve application challenges
and deliver world-class solutions that optimize performance of the
equipment. We close the SKF Lifecycle Management loop when we
channel our end-user knowledge back into specification phase of
next-generation equipment. Technologies, such as condition
monitoring, can be designed into new OEM assets or retrofitted,
constantly improving and providing differentiation in competitive
markets, adding value, and extending the possibilities for
aftermarket services and enhanced machinery maintenance. At every
stage of the asset lifecycle, SKF products, advanced services and
solutions help our customers improve productivity, reduce
maintenance costs, improve energy and resource efficiency, and
optimize designs for long service life and reliability. This
ultimately helps customers to be more successful, sustainable and
profitable. Close cooperation with equipment manufacturers and
end-users has given SKF a unique understanding of the industry
demands. Today, we are leveraging this knowledge to provide value
at every stage of an assets lifecycle. SKF Lifecycle Management is
our proven approach to optimizing equipment design and operation
over its entire service lifecycle. SKF is geared up to cater to the
demands of construction segment right from design stage to service
requirements of end-users; by leveraging on its strengths of GTCI
and Solution Factory in India,along with global expertise and
proven solutions based on SKF Lifecycle Management approach. W h a
t a r e t h e i m p o r t a n t characteristics of SKF product
applications in powertrain chassis, work tools and attachment and
engines, etc? SKF offers a wide range of products and solutions for
different applications in the construction industry. Each product
and solution is specifically designed to meet the challenges of the
industry. By design, construction equipment powertrains and chassis
components must provide maximum power density and incur minimum
power losses even as they operate in harsh environments and endure
heavy loads. To be cost-effective, these applications require
low-maintenance, high-productivity capabilities that maximize
operator comfort and safety. We can meet these demands with a wide
range of high-performance, maintenance-free solutions that combine
bearing, seal, lubrication and sensor competencies. We offer a
complete line of standard and custom solutions designed for harsh
environments and high performance. Our applications are
maintenance-free and facilitate downsizing which enable cost
effectiveness. Backed by our in-depth application knowledge SKF can
help OEMs cut product maintenance costs and assembly times
Construction work tools and attachments endure direct and constant
exposure to the harshest operating conditions on any job site. To
ensure productive, cost-effective operation, end-users need
attachments with minimum maintenance and maximum service life. To
help deliver such products profitably, OEMs need more robust,
integrated, pre-assembled solutions. Our solutions for work tools
and attachments help drive performance and reliability in the
field. Our integrated solutions also help simplify assembly and cut
warranty claims and costs. To help address these trends
cost-effectively, we have developed a variety of innovative
solutions, including sensorized units, ready-to- install
multifunctional sealing solutions, and high quality engine seals.
Along with meeting environment goals, SKF engine solutions are
enhancing performance and durability of construction equipment
while cutting total costs. How do you perceive the biggest benefits
in terms of cost, energy, minimum maintenance through SKF product
application? For construction equipment manufacturers, extending
service intervals and cutting ownership costs are valuable market
and environmental advantages. Optimizing product functionality in
the face of new environmental regulations is challenging, but
necessary for success, wherein SKF serves as a technology partner.
SKF draws from our deep construction application experience and our
unique mix of products, tools and technologies. Working closely
with our customer team, we help manufacturers reduce or eliminate
the need for maintenance in many applications. From
maintenance-free products to customized, integrated units, SKF
solutions help customers develop greener, low- to no-maintenance
products and cut total lifecycle operating costs. Ultimately,
integrated and pre-assembled SKF solutions help drive productivity
and profitability for end-users. At machine level, manufacturers
are working on ways to manage power more effectively and reduce
parasitic losses. SKF has been helping OEMs meet these requirements
with highly reliable, fit-for-function solutions. Our unique
competence for power density improvement includes the use of
advanced simulation tools to help us develop solutions with optimal
balance between weight/size and energy output. Thus, SKF knowledge
is helping OEMs and end-users both for value optimization.
12. Breaking new grounds and Specification With SKF Life Cycle
Management SKF draws on decades of construction application
experience and a unique mix of products, tools, services and
technologies to help equipment manufacturers and end users optimize
the life cycle of construction machinery. We can help you:
*NQSPWFNBDIJOFSFMJBCJMJUZ 3FEVDFNBJOUFOBODFDPTUT
*NQSPWFFOFSHZBOESFTPVSDFFGDJFODZ &YUFOETFSWJDFJOUFSWBMT
0QUJNJ[FEFTJHOTGPSMPXFSUPUBMDPTUPGPXOFSTIJQ5$0 SKF India Limited
Mahatma Gandhi Memorial Building, Netaji Subhash Road, Mumbai 400
002. Tel: +91-22-6633 7777, Fax: +91-22-2281 9074 Toll Free: 1800
222 007, Email: [email protected] CIN Number:
L29130MH1961PLC011980 www.skf.com, www.skfindia.com The Power of
Knowledge Engineering PUB 45/A5 15126 EN SKF is a registered
trademark of the SKF Group | SKF Group 2014 Install commission
Operate and monitor Maintain and repair Design and de velop
Manufacture and test SKF Life Cycle Management
13. CHEMICALS September 29-October 05, 2014 6 Challenges and
opportunities in construction chemicals market With the growing
investment in construction that India is seeing, opportunities for
the construction chemicals industry to grow row are tremendous
tremendou Today is the age of fast track construction in India.
Many major construction works have been conceived of and built over
the past few years in India and the use of construction chemicals
has been a vital part of these projects. The construction of both
residential/ commercial and infrastructural projects has seen an
immense spurt. Keeping this growth in perspective, much more
quality, speed, economy and durability is demanded of construction.
These qualities can only be achieved by efficient use of
construction chemicals. Even though the economy does seem like it
is slowing down, construction continues on. Billions are being
invested on upcoming construction projects. This keeps the
construction chemical industry growth drive in a positive
perspective. Key role to play Essentially, construction chemicals
are the link between the chemical industry and the construction
industry. By applying chemistry, we facilitate solutions for the
construction industry. We play a vital role in improving concrete,
waterproofing and protecting its durability and also rehabilitating
concrete, when it is distressed. So all in all, as far as concrete
construction goes, construction chemicals will always have a key
role to play. As per most recent studies, the market size of the
construction chemicals industry is roughly pegged at Rs 3,500
crore, and it has potential to grow to Rs 5,000 crore over the next
few years if we, as the industry, promote ourselves professionally
and increases the level of awareness within the construction
industry. The construction industry should be convinced that usage
of construction chemicals is a benefit and not undue cost. Positive
trend For the past five years the growth rate for the industry is
roughly 17 per cent CAGR, based on available figures. The projected
growth rate for this sector could be CAGR of over 20 per cent, in
the near future. The growth was affected due to the recessionary
slump but now the trend is positive. Based on available data and
various sources, the major segments of the construction chemicals
industry and the percentages they garner over total sales can be
seen in the table. Segment of % of Total CC Industry Approx. Sales
Admixtures 40% Flooring 15% Waterproofing 15% Repair 10% Tiling,
Sealants and Others 20% The growth in the construction industry,
combined with increasing demand for faster and safer construction,
will propel the growth for our construction chemicals industry. To
aid this endeavor, top construction chemicals companies in India
joined in to form a strong apex body of the Construction Chemicals
Manufacturing Association (CCMA). Voice of the industry The key
objectives for our association will be to promote growth of the
construction chemicals industry by raising awareness and quality
standards and to be a representative body for communicating with
government, chambers of commerce regulatory bodies and other
forums, local and international. Many raw material suppliers to the
Samir Surlaker, President CCMA standardization and transparency. It
is with this view that the industry has come together to spread the
awareness. From humble beginnings of the CCMA, today we have over
40 members who have an interest in creating a larger awareness of
the industry, our technology and application potential. We are
firmly on track to take this initiative to the next level, training
programmes would be held all over India for applicators because
application is a very important aspect of the very success of
waterproofing and repair systems. Lastly we plan to establish just
and equitable standards and principles in construction chemicals
manufacture, trade and commerce and regulate conduct and practice
of construction chemicals trade and manufacture. With our brand of
C3 seminars (held in Mumbai and New Delhi), we focused on the cause
of technical awareness. The participants were end-users,
specifiers, government decision makers, etc. These seminars also
focus on problems faced by decision-makers to specify and use these
products with confidence. International speakers were invited who
could instill confidence in our local civil engineering fraternity
about benefits of usage of construction chemicals. The success of
our seminar series is a good indication that the interest in
correct usage of construction chemicals is fast gaining ground due
to the benefits in speed, durability and lifecycle costs it
provides Bringing awareness Furthering the cause for technical
development, a handbook is planned on the correct usage of
construction chemicals in collaboration with the Indian Concrete
Institute. Attempts are already on way to introduce technical
topics in the academic syllabi. Training programmes are in advance
stages of design. These roving seminars will be taken to rural
areas as well as engineering colleges. Another initiative is to
open up local chapters all over India. A further idea was to get a
marking on construction chemicals to increase confidence of the
end-user. Flagging off the initiative to bring this awareness to
smaller cities, the CCMA flagged off its first regional seminar
titled C3R at Rajkot, Gujarat, on August 9, 2013 and followed it up
with similar C3R programmes at Nagpur and Bhubaneshwar. The theme
of the seminars was Methods and Practices on the use of
Construction Chemicals. This initiative will be furthered to other
cities such as Jaipur in coming months. In a very short amount of
time BIS has agreed that the CCMA will be on key IS Code committees
to take viewpoint of expert CCMA members in the formulation of
codes. With this holistic approach, the industry and awareness
about is confident of growing. Tremendous opportunities With the
growing investment in construction that India is seeing, the
opportunities for the construction chemicals industry to grow are
tremendous. Due to efforts of the CCMA, and our member companies,
the awareness about construction chemicals and their correct usage
is also growing. industry, local as well as transnational
companies, have already joined or are actively considering joining
the association in the capacity of associate members. With this
development, the CCMA is slowly but surely becoming the voice of
the construction chemicals industry. With the holistic approach the
CCMA is planning, the industry is confident of growing from present
revenue to about Rs 5,000 crore in next few years. This is
absolutely possible considering the large gap in demand and supply.
With the focus on durability, sustainability, Green practices and
mitigating lifecycle cost of buildings and infrastructure,
construction chemicals can play an important role in overall
development of construction. Limited growth The construction
chemicals industry, though present for over 30 years in India, has
seen limited growth. Even today, with rising awareness of the
industry, it is still being dubbed as a sunrise industry. One
positive aspect is that with the rising awareness, the industry is
poised to grow. In a nutshell, the key challenges to the growth of
the industry are: *Low awareness about the correct usage of
construction chemicals and their incorporation into general
construction. *Standardization of products and systems is a
concern, end-users cannot discern or compare systems.
*Specifications for use of construction chemicals is still
prescriptive. Over time we need to move to performance-based
specifications. *The fragmented nature of the industry, with a
large number of players in the unorganized sector. Firmly on track
The long-term objective of the CCMA in general is to address these
challenges. One of the key objectives is to increase awareness in
end-users about the correct usage of construction chemicals. We
believe this will help us increase the treatment ratio of
construction chemicals in construction. Another objective of the
CCMA is to create trust in end-users by creating (Contd. on pg
16)
14. September 29-October 05, 2014 7 which can fall into the
three main criteria which are explained below. Speed Walplast
offers products like ready mix machine plaster, tile adhesives,
machine Gyp+ ie machine gypsum plaster, which are changing the
definitions of process time and generating large savings. We
challenge the traditional process time of plastering by offering a
machine for automatic mixing & spraying plaster in less than
half the time. We also offer both machine grade and hand mix ready
to use plasters (grey and super white). The tile adhesive range
offered by Walplast is also improving speed in application, thanks
to anti-sag properties and polymer modification of tile adhesives
which enable faster work along with excellent bonding and great
finishing. Waste Reduction Sand purchased locally has a large
amount of impurities and oversize materials. Separation and
disposal becomes an expense task. Walplast provides cleaned heat
treated sand, separated by multi-sieving, weighed automatically as
per formulation ensuring compactness of plaster for water
tightness. COMPANY PROFILE Walplast: Its all about 3 winning
solutions We all want to win and continuously try to win in all
walks of life. But it is a tough job because all our competitors
are also continuously trying the same and it is only getting more
difficult with time. As said by Shiv Khera, winners dont do
different things, but they do things differently. We at Walplast
take this message rather seriously and continuously keep taking
efforts to ensure that our customers win. The building industry is
currently undergoing a lot of stress. Most of the pockets are
witnessing more supply and lesser demand. In other areas demands
are like hot air balloons with nothing concrete to crack the deal.
Besides the economics, the industry is also susceptible to many
pressures like loan rates, additions of service tax, Vat, etc where
the ultimate buyers are re-thinking and it is weakening the overall
buying temperament. Competition is increasing and so is
transparency of information because of the multiple free online
portals. Buyers actually can surf the net, view properties, actual
photos, layouts and get a feel by watching the walk-through video.
Strong family-driven emotional newspaper advertising and soft
payment schemes for buyers are actually hurting the cash flow of
builders. Land owners are aware of the current rates and are
holding up till a good price is offered. There are tough times
ahead and the belts need to be tightened. But just reducing the
cost will not help because the buyer with high general knowledge is
demanding more value for money. Buying a dream home has and is
always be on the wish list of every citizen of India who has just
entered the market. The young buyers are demanding smart features
in their home added with latest technology. This actually settles
down to better homes at lesser price and fizzing out the
profitability of the project. Walplast Products Pvt Ltd offers a
classic solution towards increasing value of the product without
burning holes in the pockets of both parties. The concept can be
explained as follows: Speed Cost Profits Wastage Asthetics Discount
Increasing speed of work leads to lesser labour time and therefore
reducing cost, enhancing the cash flow. Cutting of wastage delivers
directly to the bottom line. Aesthetical beauty replaces discounts
and sells property on merit without the need to offer any extra
freebies. Purchasing is not about buying products which are lowest
in cost, but it is about buying the latest technology products and
staying ahead of competition by creating strong value preposition
for customers. Though it is the sales & marketing department
which is responsible for selling, we believe that it is actually
all departments including purchase, quality, planning, etc which
build the product and make the job efficient for the sales team. At
Walplast, continuous efforts are being taken to fine tune our
products Mandar Chitre, Vice President, Walplast Products Pvt Ltd.
(Contd. on pg 8)
15. INFRASTRUCTURE September 29-October 05, 2014 8 We
contribute solutions that save energy, resources and reduce waste
Mott MacDonald is a diverse 1.2 billion global management,
engineering and development consultancy. It is one of the worlds
largest employee-owned companies with nearly 16,000 staff, with 180
offices in nearly 50 countries and projects in 140. The company is
engaged in public and private sector development across a broad
range of sectors including transport, buildings, power, oil and
gas, international development, urban development, industry, water,
environment, education, health and communications. For over 40
years, Mott MacDonald has been helping shape much of Indias
transport infrastructure, from airports and metros to ports and
transport planning. The consultancy has been providing
comprehensive multidisciplinary planning and design engineering on
the high profile Delhi Metro project for over a decade. It is also
designing and supervising construction of new metros in Bengaluru,
Chennai, Gurgaon, Hyderabad, Jaipur and Kolkata, as well as acting
as safety advisor on Mumbai Metro. Employing 1200 people in nine
offices, Mott MacDonald also operates in the industry, water,
environment, education and health sectors. The consultancy is
tackling the water and sanitation needs of Mumbai, the worlds fifth
most populous city and is also working with the Indian government
to identify strengths and weaknesses in the national school system
to improve education for 200 million children. Commenting on her
appointment, King said, India is a significant market for Mott
MacDonald and through the broad range of services we offer were
perfectly placed to support public and private organizations on the
countrys most significant projects. King is a chartered engineer,
fellow of the Institution of Civil Engineers and joined Mott
MacDonald over 30 years ago. Most recently she managed the
consultancys integrated transport division, which is about
connecting local and international communities through multi-modal
transport and economic regeneration. Prior to this, she was
director of Mott MacDonalds highways division, which offers design,
environmental, acoustic and pavement engineering services, as well
as public-private partnerships advisory expertise. Earlier in her
career she worked in the area of structural durability and repair
for multiple clients on operations, critical maintenance, repair
and strengthening strategies. Mott MacDonald is a world-renowned
consultant in the global market place. For Asian countries,
particularly the Indian market, what are your business plans? Asian
economies are expected to be amongst the strongest in the world
over the next few years. Mott MacDonald has a wide network of
established offices across Asia and is therefore well placed to
support this growing economy with our wide range of skills in
infrastructure, management and advisory. In India, we are perfectly
placed to support Mr Modis plans for the country to become a
manufacturing hub thanks to our well-established work in the
industrial sector. Increased investment in India will also create
opportunities for us to grow our advisory and project management
businesses. Additionally, we will continue to support our global
business through our successful resource centres in the region,
thus creating opportunities for local staff to work on iconic
international projects. The company is instrumental in shaping
Indias transport infrastructure, from airports and Metros to ports
and transport planning. Tell us about the projects initiated,
completed in India. In India there are currently metro projects
being implemented in nine cities Delhi, Bengaluru, Kolkata,
Chennai, Mumbai, Hyderabad, Jaipur, Gurgaon and Kochin. Mott
MacDonald has a role in all of these. Weve been involved in Delhi
Metro for over 10 years. Were now working on phase-3, acting as
detailed design consultant for contract CC34, which is part of the
Janakpuri West to Kalindi Kunj corridor. This includes construction
of underground metro stations at Janakpuri West, Dabri Mor and
Dashrath Puri, as well as interchanges with existing elevated metro
stations. In addition, we are detailed designer for the Lal Qila,
Kashmere Gate and Jama Masjid underground metro stations. These
appointments follow on from our award-winning role on almost 40% of
Delhi Metros second phase, which included 20 underground and 21
elevated stations, connecting terminals and viaducts. We also
worked on the underground section of 27 km Airport Metro Express
Line (AMEL) connecting central Delhi via the New Delhi railway
station with Indira Gandhi International Airport, consisting of
both underground (45 per cent) and elevated sections via four
intermediate stations. Mott MacDonald has provided detailed design
for Bengaluru Metro, comprising two electrified corridors totalling
38 km with both elevated and underground sections - where weve
tackled technical risks presented by poor ground conditions with
one Indian-first and one world-first tunnelling solution. Were also
providing detailed design for five underground stations, including
Majestic interchange station. In Kolkata we provided detailed
design services for the structural components of the viaduct and
six elevated stations Salt Lake Stadium, Bengal Chemical, City
Centre, Central Park, Karunamoyee and Salt Lake Sector V. We are
detailed civil and structural design engineer for ten elevated
metro stations on Chennai Metro. We are also detailed design
consultant for three underground metro stations Nehru Park, Kilpauk
Medical College and Pachaippas College and associated tunnels. In
addition, Mott MacDonald was recently appointed detailed design
consultant for packages four, five and six under a re-tender. Mott
MacDonald is reviewing safety assurance for three systems rolling
stock, signaling, power and traction on Mumbai Metro. On Hyderabad
Metro, Mott MacDonald is providing architectural, structural and
public health design services for three interchange stations at
Ameerpet, Parade Grounds and the Mahatma Gandhi Bus Station. We are
also providing the design for three other stations located at
Panjagutta, Hi-Tech City, and Jubilee Hills Checkpost. Mott
MacDonald has assisted during the Jaipur Metro bid process,
preparing technical documents and reviewing existing work.
Meanwhile in Gurgaon we are providing detailed civil and structural
design, including architectural and mechanical, electric and public
health services, for five elevated metro stations DLF phase-1,
Sushant Lok, AIT Chowk, Sector 53-54 Crossing and Sector 55-56
Crossing. In the railways sector Mott MacDonald acted as design
review consultant on the Mumbai Monorail, providing technical
guidance and identifying all civil and engineering design and
construction issues for the substructures, guide way beams,
stations and monorail corridor depot. Mott MacDonald is project
management consultant for the Sustainable Urban Transport Project
in a role spanning five demonstration cities Naya Raipur, Mysore,
Indore, Pimpri-Chinchwad and Pune. We are building the
institutional strength of urban transport organisations and
providing procurement and technical support, covering design
reviews, traffic engineering, safety audits and network analysis.
Projects include integrated land use planning, bus rapid transit,
cycling and pedestrian transport schemes. Our aviation team was
lead technical advisor on the upgrade to Indira Gandhi
International Airport, delivering Asias longest runway and new
terminal complex. We provided master planning, concept and
preliminary designs, environmental impact management and traffic
forecasting for the 30 year life of the concession. Mott MacDonald
also developed the landside master plan and provided infrastructure
planning for the modernisation of Chhatrapati Shivaji International
Airport in Mumbai and designed the Pakyong Airport in the Indian
Himalayas. Pakyong Airport involved the construction of the worlds
tallest reinforced solid walls. Your work comes from national and
local governments, public and private utilities, industrial and
commercial companies, investors, developers, banks and financial
institutions. How do you prioritize on each? It is important for us
to maintain a very broad range of clients and to work on projects
at all stages. This could be helping a client develop a business
case through to managing the maintenance and operation of
facilities. This approach allows us to maintain a comprehensive
understanding of the sectors we operate in, which gives our clients
comfort in the knowledge that, by working with Mott MacDonald, they
receive best industry practice. We are driven to help our clients
develop the best sustainable solutions to achieve their business
objectives. How challenging is it for you to advice on planning for
large, medium and small industrial infrastructure projects?
Industry is the foundation of Mott MacDonalds Indian business and
we have been planning and designing industrial infrastructure in
India for nearly 50 years. Our clients include some of the worlds
largest corporations, including Glenmark, AstraZeneca, Bunge,
Laxness and Shell. Projects on which were providing engineering and
project management span the pharmaceuticals and biotechnology,
textiles, chemicals, rubber, metals, food, automotive and
petrochemicals sectors. We are contributing solutions that save
energy and resources and reduce waste. What is your observation on
Indian construction practices? Through what means they can be
upgraded? Mott MacDonald is one of the founding members of the
Consultants Health and Safety Forum, which has a worldwide remit
and works to raise standards and advance best practice. Through
this, we strive to improve health and safety management on Indian
construction sites to make the industry a safer place to work. The
west is increasingly adopting the practice of off-site manufacture
and assembly, which has been proven to improve safety as well as
save money, construction time and carbon. Mott MacDonald is keen to
introduce such practices to India on the right projects. What is
your view on the upcoming infrastructure developments in the
country? India has a large, rapidly growing population with
increasing urbanisation, so effective transport links will be a
vital facilitator to continuing economic and social development,
both within and between cities. Indian authorities in each city
should be developing transportation masterplan that will enable
transport provision to be planned into the future in such a way
that will support sustainable development. Liz King, MD, Mott
MacDonald Consultancy, South-East Asia shares with Remona Divekar
the companys plan for Indias infrastructure from airport and metros
to ports and transport planning in its multiple construction
projects, such as new Metros across Bengaluru, Chennai, Gurgaon,
Hyderabad, Jaipur and Kolkata. Excerpts: Polymers are added which
gives work ability and generates negligible wastage due to
reduction in rebounding losses. Masterplast, another product
developed by Walplast is a plaster additive. This product creates
magic in application of manual plastering by giving workability,
comfort to applicator by minimizing wastage and giving a great
working mix. Aesthetical enrichment Walplast offers one of the top
qualities of wall putty. Whiteness and surface finish of the putty
can substantially enhance the effect of paints. Scratch-X texture
gives excellent finish and protects the surface. Limeplast does not
need any additives and is widely used in many markets. Applicators
have been creating different patterns and have got a great product
to enhance their artistic skills. Walplast also makes colour putty
which has two applications. It can be used in garages, parking
lots, etc, where expensive paint need not be used for finishing. In
high-value apartments, where expensive paints are used, colour
putty is an excellent solution which does not spoil the looks in
case of scratches, because the putty below the paint is colored and
not white. The company Walplast, was established in 2004 by our
founder & CMD Ashok Mehta. In just a decade, Walplast has
become a well-known brand in the construction segment and is an ISO
certified Indian-multinational having manufacturing facilities at
six strategic locations (Maharastra, Gujarat, Madhya Pradesh,
Chattisgarh Rajasthan and Tamil Nadu). Each factory is equipped
with state-of-the-art R&D laboratories which comply with
international standards. Our products qualify to parameters
specified by Singapore housing board and also the European and
American standards. We are currently exporting to countries like
UAE, Africa, Singapore, Europe, Nepal, etc. Walplast products are
keen to help the construction industries all over the world by
giving them speed, waste reduction and aesthetic enhancement. At
Walplast, it is all about wining with these three solutions and
staying ahead of time. Walplast... (Contd. from pg 7)
16. September 29-October 05, 2014 9
17. REAL ESTATE September 29-October 05, 2014 10 Housing and
high urban growth India would require about 11 crore housing units
on a pan-India basis by 2022 Ministry of Rural Development and the
Ministry of Housing and Urban Poverty Alleviation, it is estimated
that almost a quarter of Indian households lack adequate housing
facility. Housing in India varies significantly and can reflect the
socio-economic mix of its vast population. In the last decade,
there has been tremendous growth in the countrys housing sector,
along with demographic changes, rise in income, growth in the
number of nuclear families, and urbanisation. Several issues such
as the absence of an effective policy framework for Economically
Weaker Section (EWS) and Lower Income Group (LIG) housing, which is
compounded with rising land cost, spiralling construction costs,
and inadequate availability and reach of micro-finance measures.
Affordable construction Every developer goes through a long
gestation period of six to eight years of housing projects,
accentuated by multiple approvals to be obtained from multiple
authorities in a two to three years time frame. On the contrary,
developers wish to participate in large scale affordable housing
construction provided government takes pro active steps. Currently
and in past the government is taking piece meal actions, which will
not help the sector much. There are reports on record of government
appointed committee on affordable housing. Now government needs to
act. Major concerns are: lack of coordination between Central and
state ministries, regulatory reforms with a view to substantially
increase the housing development capacity with respect to
construction capability, labour availability, construction
material, and housing affordability. Inadequate long-term funding
across the project life cycle necessitating multiple rounds of
funding for the same project has increased the cost of capital and
time. Further, the funding is not available for acquiring of land
from banking sources. Rationalize multiple fees and taxes across
project a stage which inflates construction cost by 30 to 35 per
cent. High rate of migration from rural areas is stressing the
limited urban infrastructure; sub-optimal usage of urban land (low
FAR/FSI) has resulted in raising the cost per unit of built-up
area. Grant infra status Its high time that government should grant
infrastructure status to the real estate and affordable housing
sector, as housing development involves undertaking large scale
urban infrastructure development projects. It involves purchasing
of land and developing it for the purpose of construction of
houses, multi-storied buildings, and creation of physical and
social infrastructure. Hence, housing development has dramatic
similarities to the infrastructure sector. PPP projects can play an
important role in bridging the gap between the housing need and
supply as they can be instrumental in attracting private capital
for financially viable affordable housing projects. The PPP
framework can be effectively used to address some issues in housing
development such as land availability, approval delays, funding,
and affordability by the poor. Simplify structural and procedural
frameworks. This could help expedite decision-making and reduce
lengthy procedures of introducing reforms. However, despite 74th
Amendment in the Constitution of India, directing states to
delegate powers to ULBs, several states have not taken the
necessary steps. A push to decentralise decision-making is required
from central government which can be done by either persuasion or
offering incentives to willing states. These measures can be done
by using various housing and urban infrastructure programmes such
as Rajeev Awas Yojna (RAY); Indira Awas Yojna (IAY) and Jawaharlal
Nehru National Urban Renewal Mission (JNNURM). Streamline approval
process Streamline the approval process by introducing single
window clearance mechanism backed by technology. The current
approval mechanism in many states is a complex process, as on an
average a developer requires 30 to 40 different approvals from
central; state; and ULBs. Further, multiple factors add to the
existing complex process leading to uncertainties and delay in
building approvals. It is estimated that it takes about two to
three years to obtain necessary approvals which increases housing
development cost by 20 to 30 per cent. The delay is primarily due
to factors such as duplicity due to overlapping regulatory
jurisdiction of various authorities, lack of institutional clarity
which is open to individual interpretation, involvement of multiple
departments, weak allocation of responsibilities and
accountability, etc. I am very optimistic. With Narendra Modi as
Prime Minister, I hope the governance will be smart and economy
will grow double digit. I see exponential growth in the real estate
sector. Something which India has never seen yet. BAUCHEMIE
MC-Torkrethilfe be/ centrament rapid 640 Chloride-free guniting
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undesirable. MC-TorkrethilfeBE accelerates the The real estate
sector is of strategic economic importance to India, as it is the
second largest employment generator after agriculture and
contributes about six per cent to Indias GDP. The sector with its
backward and forward linkages to 250 ancillary industries has the
potential to generate significant employment opportunities and
provide a quantum jump to the Indian economy. Accelerating the
growth in the sector can help turn-around the sluggish GDP growth
witnessed in the past few years. India would require about 11 crore
housing units on a pan-India basis by 2022. A demographic trend
suggests that India is on the verge of large scale urbanisation
over the next few decades. With more than one crore population
getting added to urban areas, Indias urban population is expected
to reach about 81 crore by 2050. Tremendous growth Housing, a basic
need for humans, could play an important role in accommodating high
urban growth in India. As per studies conducted by the Lalitkumar
Jain Chairman, Credai and Chairman & Managing Director, Kumar
Urban Development Ltd (KUL) rate of setting by plasticizing
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ground water in tunnels, galleries, drifts and shafts. It provides
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chloride free guniting aid. Centrament Rapid 640 is a liquid,
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18. September 29-October 05, 2014 11
19. September 29-October 05, 2014 12 Smart City a city with IT
as principal infrastructure actively involved in energy saving and
plementation of n echnologies With Elkem Microsilica your towers
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www.concrete.elkem.com The success of such a city depends on its
residents and entrepreneurs becoming implementation new
technologies Across the world, the stride of migration from rural
urban areas is increasing. By 2050, about 70 per cent of the
population will be living in cities, and India is no exception.
India will need about 500 new cities IT as principal infra The
announcement of 100 smart cities falls in line with this vision. A
smart city is an urban region that is highly advanced in terms of
overall infrastructure, sustainable real estate, communications and
market viability. It is a city with information technology as its
principal infrastructure and the very basis for providing essential
services to its residents. There are many technological platforms
involved, including but not limited to automated sensor networks
and data centres. Though this may sound futuristic, it is now
likely to become a reality as the smart cities movement unfolds in
India. A smart city offers a superior way of life to its denizens,
and one wherein economic development and activity is sustainable
and rationally incremental by virtue of being based on
success-oriented market drivers such as supply and demand. They
literally benefit everybody, including denizens, businesses, the
government and moreover the environment. Concept origin The concept
of smart cities originated at the time when the entire world was
facing one of the worst economic crises. In 2008, IBM began work on
a smarter cities concept as part of its Smarter Planet initiative.
By the beginning of 2009, the concept had captivated the
imagination of various nations across the globe. Countries like
South Korea, the United Arab Emirates and China began to invest
heavily into research and the formation of smart cities. Today,
there are a number of excellent precedents that India can emulate
for its own smart cities programme: Smart City Vienna in Austria;
Aarhus Smart City in Denmark; Amsterdam Smart City; Cairo Smart
Village in Egypt; Dubai Smart City and Dubai Internet City in the
UAE. Smart City Lyon in France; Smart City Mlaga in Spain; Malta
Smart City; The Songdo International Business District near Seoul,
South Korea; Yokohama Smart City in Japan; Verona Smart City in
Italy. Indian smart cities In India, the proposed smart cities
include Kochi in Kerala, Ahmedabad in Gujarat, Aurangabad in
Maharashtra, Manesar in Delhi NCR, Khushkera in Rajasthan,
Krishnapatnam in Andhra Pradesh, Ponneri in Tamil Nadu and Tumkur
in Karnataka. Many of these cities will include special investment
regions or special economic zones with modified regulations and tax
structures aimed at making is easier and more attractive for
foreign companies to invest in them. This is an essential factor
for success for smart cities in India, because much of the funding
for these projects will have to come from private developers and
from abroad. The smart city concept is not without challenges,
especially in a country like India. For instance, the success of
such a city depends on its residents, entrepreneurs and visitors to
the city becoming actively involved in energy saving and
implementation of new technologies. There are many ways to make
residential, commercial and public spaces sustainable by ways of
technology, but a high percentage of the total energy use is still
in the hands of end users and their behaviour. Also, there is the
time factor such cities can potentially take anything between 20-30
years to build. Anuj Puri Chairman CII Real Estate Summit 2014 and
Chairman & Country Head, JLL India INFRASTRUCTURE to
accommodate the rapid influx of population into its urban regions.
Interestingly, urbanization in India has for the longest time been
viewed as a byproduct of failed regional planning. Though this is
inevitable, and will only change when the benefits of urbanization
overtake the costs involved, it is an opportunity for achieving
faster growth. With increasing urbanization and the load on the
land in rural areas, the Indian government has now realized the
need for cities that can cope with the inherent challenges of urban
living and also be magnets for investment to catalyse the local
economies.
20. September 29-October 05, 2014 13 Low-cost urban housing a
reality check Some major factors would play a pivotal role in
making affordable housing successful in India In its rawest
definition, it refers to housing units that are affordable by that
section of society whose income is below the median income a
household should have. According to a lot of data available in the
public domain suggests that urban population will increase manifold
in years to come. Presently, 54 per cent of global population
resides in urban areas, which is expected to increase to 66 per
cent by the year 2050. The situation in India is as follows:
*Estimated shortage of 26.53 million units *8.2 Million households
in 640 cities living in slums *Cities like Mumbai have added on
average 6,700 units a year in the past 30 years On developers side,
the following points should be taken into consideration: *Lack of
urban land *Regulatory Hurdles *Rising costs of construction *Lack
of real skilled labour From buyers side, the following points need
consideration: *Lack of availability of home finance *Delivery time
With a majority government now at the Centre, and its long term
goal to provide housing for all by 2022 to a major section of
society, and also its emphasis on transparency in regulatory
procedures and interest in skill development are all positive steps
towards affordable housing. The Reserve Bank of Indias announcement
of a raft of measures will encourage bank lending to this segment.
The RBI has said that in addition to small value loans, home loans
to individuals up to Rs 50 lakh (for houses of value up to Rs 65
lakh) in etros and loans up to Rs 40 lakh (home value Rs 50 lakh)
in other centres will be considered as affordable housing.
Extending these loans will entitle banks to float infrastructure
bonds up to seven years. Money raised under these bonds will not be
subject to reserve requirements such as cash reserve ratio (CRR)
and statutory liquidity ratio (SLR). Eligible bonds will also get
exemption in calculating priority sector lending targets. Another
positive for affordable housing is the slew of new construction
technologies being adapted in India. There are a lot of technology
options available for various elements of building construction,
leading to cost effectiveness at the same time, but not affecting
performance characteristics expected from a decent housing project.
One of the projects worth mentioning is a slum rehabilitation
project by Omkar realtors at Bhoiwada, Mumbai. Constructed by
L&T, it uses a precast technology and its the first such
23-storey building in India. There are a lot of other technologies
like aluminium shuttering, precast wall partitions, concrete hollow
blocks, readymix mortars, exterior textures, etc to speed up
construction activity and achieve project completion in at least 40
per cent less time thus achieving a lot in cost savings and
delivery time. All these factors would play a major role in
motivating all parties involved in making affordable housing
successful in India and hence make affordable and acceptable
housing a reality for the vast majority of low income group of
people. Maulik Tolat Synapse, INDICON REAL ESTATE
21. September 29-October 05, 2014 14 A conscious architect
would not blindly add to carbon footprint Tell us about your early
beginnings as a student of architecture and as a practicing young
architect. Which was the first project you undertook? After I
graduated from the Centre for Environmental Planning &
Technology University (CEPT), an academic institution in Ahmedabad
in 1997, I worked for four years with architects like Ashok Lall in
Delhi and Georg Leuzinger and Sudhakar Pai in Bengaluru. In 2002 I
started practising on my own. My first project had already started
when I was working with Georg Leuzinger under whom I cultivated my
love of construction and detailing. It was design of
residence-cum-studio unit for a renowned artist couple Sheela Gowda
and Christoph Storz Whats the total number of projects you
undertook in the past 10 years? Would you like to highlight a few,
such as 1 Shanthi Road Gallery and a couple of others? During the
past 12 years we have successfully executed about 50 Architect
Meeta Jain has been independently practicing as an architect &
designer in Bengaluru since 2002. She designed the award winning 1
Shanti Road Gallery, and is the founder of MapBee, a collaborative
interdisciplinary practice driven to envision and facilitate making
of mobile structures and spaces addressing diverse needs and
purposes. The question of global warming is a very complex and
critical one as it is linked strongly to environmental
preservation, says Meeta Jain in this interview with Dilip
Phansalkar. Excerpts: projects, largely consisting of full-fledged
residences and interiors, living communities, corporate office
interiors, and small art institutions. Through a parallel practice
of ours called MapBee, which is driven to work for spaces for
change, we have worked on collaborative projects with artists,
citizens groups, educational groups, etc to create new space
models. What are your high-priority considerations when selecting
building materials and colour schemes for your projects? We work
with natural materials to maximum, seeking to express each ones
true character. The colour scheme largely comes out of natural
colour of materials. And when it does come to painting walls, a
tendency for more and more muted and earthy palette with a few
bright highlights as per the specific need, governs our work. Why
is aluminium gaining more popularity over steel as preferred
building material? Aluminium is a high performance material. Its
very strong for its weight and is gaining popularity primarily
because of its maintenance-free character. For this reason mainly
it could be used for large external openings, where wood sometimes
looks expensive and hard to maintain. In economies like India where
reuse industry is vibrant, aluminium has a resale value too.
However, it should be used with great awareness as its not a
sustainable material in long run and its current trend of using it
for extensive cladding buildings is pointless. How critical is it
to understand local construction techniques which enable to deliver
a robust final product? Good knowledge of local construction
techniques is not only a gesture towards contributing to local
economies, but also a cheaper and sustainable way of working. A
building is always a public face too and hence it owes this to a
place when its able to reflect back something of the land it
belongs to. A truly innovative architect would be constantly be on
the lookout for local building techniques, and finding unique ways
to integrate them in ones work, making a building rooted to a
context. Adopting this approach is more critical than ever, as we
see characterlessness growing rapidly in our urban environments. To
create a sense of living, Green network and built environment
should be integrated into one. What is your observation? Design of
cities and its experience largely lies in its street edges, that
is, primarily the pavement. A pavement is a microcosm on its own,
fulfilling its unique function like enabling pedestrians, cycling
tracks, vendors, benches and most importantly trees. Thus, the
minimum width of a footpath is a critical issue and has to be such
that it enables all of these elements to find space harmoniously
and support a healthy pedestrian life as well as its maintenance.
This and this alone can save our cities, other than sufficient
number of inclusive public spaces. How important is the
relationship of the built to landscape in the design? Infinitely
important! The concept of frameless structural glazing (Spider
facades) is increasingly being adopted in modern-day building
structures. Would you like to comment on the trend? Spider clamp is
essentially a well=engineered component to support large frameless
fixed glass surfaces. Again, its use has to make sense with the
amount of glass one should use. How does architecture influences
all aspects of built environmen