Construction Mirror April Issue Magazine by Construction Mirror

EDITOR’S DESK Dear Reader!

Editor P. S. Syal Sub-Editor Ambika Gagar Associate Editor N.P.K. Reddy Editorial Advisor Priyanka Roy Chaudhary Design & Production Sr. Designer - Mukesh Kumar Sah National Business Head Subhash Chandra s.chandra@constructionmirror.com

Indian infrastructure industry needs a heavy amount roughly ₹ 1.5 trillion of investment in coming years. Railway sector, ports, airports, roads civil aviation is the lifeline for the Indian economy. It is the primary agenda for the Indian govt to out their economy on a high growth path. Transportation infrastructure such as roads, vehical, railways track, all need to be developed and than only we have adequate supply of resources on time from one place to other, than only we can work on and can execute efficiently and timely. These days government trying and focusing to bring the foreign investment in the country to boost up the infrastructure level. Announced smart cities budget is taking a new turn, this turn added multiple implements and new ideas to make a significant role. Thus smart cities is another major areas of concern over innovation let’s find inside it’s hook by Crook stories to build smart cities.

Business Head-West & South Pradeep Kumar - 09702818098 pradeep.k@constructionmirror.com Sales & Marketing Neha Chauhan neha@constructionmirror.com Hemant Kumar hemant@constructionmirror.com Ms. Manju

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Editor All rights reserved by all events are made to ensure that the information published is correct; Construction Mirror holds no responsibility any unlikely errors that might occur. Printed, published and owned by Usha, Published from 13/455, Block No. 13, Trilok Puri, Delhi-110091 and printed at Bright Tree, C-40, Gate No.-4, Okhla Industrial Area, Phase-II, New Delhi-110020. E-mail: brighttreesolutions@gmail.com Editor: P. S. Syal

INTERVIEW

CONTENTS

Report

Cover Story: I

Indian Tyre Industry is Expected to Show A Healthy Growth Rate of 9-10% Over the Next Five Years Cover Story: II

Smart Cities Still a Work in Progress: Current state of India’s ambitious Smart City News Update

Impact of Us-China Trade Tensions on Indian Tyre Manufacturers

Industry Focus

Crane Industry in India: A Closer Look Upon the Changing Dynamics

Special Theme

Demand Outlook and Notable Trends of Wheel Loader Market In India Special Feature

Container Industry & Ports in India: A Brief Review on Maritime Transport in India Special Focus Scaffolding & Formwork Systems: Challenges and Future Scope

WRI Launches the “Better Bus Challenge” Supported by FedEx Express in India Guest Article

90-91

CASE India Guest Article

Press note on Stationary Concrete Pump and Rack & Pinion Construction Elevator Guest Article

Gandhi Automations Pvt Ltd

Tenders

Projects

Advertisement Index

Event Diary

ews: Cement

Impact of Us-China Trade Tensions on Indian Tyre Manufacturers

Rubber prices on the Tokyo Commodity Exchange have plummeted 17% in just 3 months & domestic price of RSS Grade 4 rubber also fell 6% in 3 months & about 24% from the year-ago level. The initial trigger was the forecast of a rubber supply overhang in international

markets for 2018. But in the last few weeks, prices of this commodity that widely supports the automobile industry as the key input in the manufacture of tyres, succumbed on fears of an intensifying trade war between the US & China. The problem lies in that China is the world’s largest producer of automobile tyres, followed by the US. But the bone of contention is China’s position as the world’s largest exporter of tyres; it exports nearly two-thirds of its production. In fact, the US’s position in the international markets has weakened with tyre exports contracting by a fourth (2016 data). So the worrisome question is;

Retreading old Tyres Can Help you Breathe Easy

Around 60% of end-of-life tyres (ELTs) might be getting dumped in landfill sites or being incinerated, thus contributing significantly to both land & air pollution, a recent study released by NGO Chintan has revealed. The study, which is called ‘Circulating Tyres in the Economy’, further suggests that ELTs should be utilized in building new roads to reduce the burden on landfill sites, ensuring that they are optimally used. According to data, 127.34 mn tyres were produced in India in 2016-17; an increase of 12% from the previous year; out of which 60% tyres ended up at landfill sites or got incinerated. The study also highlights how the tyres can have a ‘bubble’ effect, trapping methane gas at landfill sites & 8

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contaminating groundwater. The ‘bubble’ effect has the potential to damage the landfill liners that are installed to help keep landfill contaminants in check, thus leading to a higher probability of polluting not just the ground surface but also the groundwater, the study said. Experts feel that while policies exist to utilize tyres in such a manner for new roads, its implementation is lacking & there needs to be a focus on that, which the report has suggested. “The explosion of ELTs requires that the rubber literally hits the roads so that it can be controlled. Technology has to speak if we want environmental solutions to manage our landfill sites & control air & land pollution.

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will China’s tyre industry get caught in the tariff crossfire between the two nations? According to a Bloomberg report, the Chinese products in the proposed US tariff list include new & retreaded pneumatic tyres & non-radial rubber tyres used in aircraft. Analysts expect that with China’s retaliation, the scenario may worsen in terms of including a wider range of products. Any cutback in US imports due to unviable duty structures is bound to puncture the revenue & profits of Chinese tyre firms. In July 2015, when US imposed hefty punitive tariffs on Chinese tyres, there was collateral damage to rubber exports from South-East Asian countries that finally saw prices plunging down.

Pirelli Opens First Branded Retail Store in Agra Expanding its footprint in India, Pirelli an Italian tyre maker opened its first branded retail store in Agra, one of the major manufacturing hubs of North India. The retail store located at Chetak Puran in Agra offers a range of Pirelli Car, SUV & VAN Tyres comprising PZero, Cinturato P7, Scorpion Verde & Scorpion ATR tyres. Spread over an area of 2500 sq. ft., Pirelli’s retail showroom will be a one-stop shop for offering a complete tyre range & service solutions. The retail store also provides services like- automated tyre changing, wheel balancing, 3D wheel alignment, nitrogen Inflation, and battery support along with other tyre specific services. Pirelli Tyres through this first retail store in Agra aims to facilitate customers’ tyre buying decision along with providing them best in class customer service.

Inaugurating the Pirelli branded store, Sanjay Mathur, General Manager for Pirelli Tyres in India, said, “We are aggressively expanding our presence in India especially in the northern part of India to cater the burgeoning demand for premium/ luxury tyres in the region. Furthermore we expect the next level of our growth from Tier 2 cities & expansion to these markets was an important part of our strategy. Pirelli retail store in Agra is a one stop shop solution for customers’ needs pertaining to ISI-marked, BIS-approved Pirelli tyres,” added Mathur. Pirelli India has aggressive plans to increase its presence in India with new & high tech service centres across major commercial hubs as well as the hinterlands of the country.

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ews: Cement

MRF Hits Record High, up Over 3%

Shares of tyre manufacturer were in focus in otherwise subdued market with MRF hitting new high of Rs 75,474, up 3.3% on the BSE on Tuesday. The tyre major has surpassed its previous high of Rs 74,499 recorded in December 26, 2017. Among other tyre stocks, Ceat & Apollo Tyres were up 3%, TVS Srichakra, JK Tyre & Industries, Goodyear India, Govind Rubber & Balkrishna Industries up in the range of 1% to 2% on the BSE. On comparison, the S&P BSE Sensex was trading 0.04% lower at 33,241 points at 10:27 am. Since February 2018, MRF has outperformed

the market by gaining 10% after the company reported better than expected EBITDA margins at 18.5%, up 160 bps QoQ & 70 bps YoY, for the third quarter ended December 2017. The Sensex was down 7.5% during the same period. Govt. announced increase in custom duty on truck & bus radials imports from 10-15% in union budget FY19 which augurs well for tyre CoS. While incremental benefit will be limited owing to already low imports post GST & Anti-dumping duty; it gives further confidence in sustained depressed Chinese imports, it added.

Trial Run of First Kolkata-Dhaka Container Train

The trial run of the KolkataDhaka container train loaded with over 1,100 tonnes of animal feed will be flagged off. While passenger & goods trains run between the two countries, this is the first time that a container service will begin. Exporters’ forums had long been lobbying for container trains as they could save time & trade costs significantly apart from making trade safer & more organised. Container trains are usually used to ferry machine parts, chemicals, automobiles & consumer durables that

involve a shorter transit time. If successful, the service would drastically reduce the transportation time,” said senior officials. The Container Corporation of India Ltd (Concor), a PSU under the railway ministry will handle the logistics of the container service. The train will be flagged off at a Concor terminus near Majherhat station around 10 am. It will travel 300km through Sealdah, Naihati, Ranaghat & Gede in India & Darsana & Ishurdi in Bangladesh before reaching Bangabandhu West station, 117km from Dhaka.

Tyre killers & the Controversy In a bid to curb bad driving etiquettes, Pune became the first city in India to install ‘tyre-killers’ on its roads to puncture the tyres of vehicles driven on the wrong side of the road. The spikes were put in place in Amanora Park Town, but they had to be removed following a notice sent by Pune traffic police. Calling the experiment as “risky” & as something that can potentially cause serious injury or even death of commuters, Pune’s traffic police stated that they would not allow any Amanora Park-style experiments in the city, except at vital installations. Police also concurred that it was dangerous for ambulances as well. Amanora Township had installed the mechanism to curb wrong-side driving & ensure safety for children 10

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attending school, according to Prashant Inamdar of Pedestrians First. Tyre killers are essentially a metal strip that acts as a speed breaker for the person driving on the right side. However, its spikes puncture the tyres of vehicles coming from the wrong side. Inamdar said the system was working well without any incident. Despite spikes being removed,

Amanora Park Town’s management has, however, sought permission to reinstall the tyre-killers, which were initially installed over a month-anda-half ago. They claimed the move had received support from local residents. Inamdar pointed out that wrong-side driving had become rampant in Pune & was a serious threat to people’s lives, especially for pedestrians. He claimed the traffic police had not been able to curb the menace. He also urged police & the Pune Municipal Corporation to study in detail the mechanism installed at Amanora Park before any final decision is taken. The design of the mechanism should not be such that it causes death or serious injury to anyone, he added.

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ews: Steel

Maersk: India’s 2018 Trade Growth Looks Better

Maersk Line said India’s container trade expansion in 2017 outpaced some of the larger economies & that the emerging market economy has the potential to achieve stronger freight growth this year. The global transportation giant, in a new trade analysis, estimated container volume to & from India increased 9% last year, compared with 2016, & more importantly, its outbound container shipments surged 14% in the last quarter, improving from a meager 1% rise in the first three months. Maersk, which transports roughly 20% of India’s total container cargo, said those strong uptrends came despite

widespread supply chain disruptions caused by recent tax & other regulatory reforms in the country, particularly the Goods & Service Tax; a single, nationwide, indirect tax regime. “India’s robust trade performance in 2017 reflects the equity the country enjoys with its trade partners globally,” Steve Felder, Maersk’s managing director for India, Sri Lanka, Bangladesh, Nepal, Bhutan, & Maldives, told JOC.com.

Felder expressed optimism that as the effects of those procedural hiccups have largely faded, the growth momentum will gather more steam in the coming months.

JNPT’s New Box Delivery Model

From 1 May, the Jawaharlal Nehru Port Trust will roll out an ‘Uber-like’ transport model for seamless & faster movement of direct port delivery (DPD) containers from the port to different parts of the country. About 1,600 importers who have opted for the DPD scheme; introduced to speed-up imports & cut time & costs; will benefit from the innovative & out-ofthe-box transport solution finalised by JNPT through a tender, besides transporters & the state-owned port trust. DPD currently accounts for about 39% of the total cargo at India’s busiest container port. JWC Logistics Park Pvt Ltd has won the mandate to move import containers landing at JNPT towards Goa & Bengaluru at ₹60,929 per container (2.79% lower than prevailing rates), while the

same entity will transport import boxes towards Nashik, Aurangabad, Nagpur, Indore & Hyderabad at ₹41,562 per container (1.24% lower than prevailing rates). Vora Transfreight Services has won the deal to transport import containers towards Gujarat at ₹26,515 per box, a 12.04% drop over the existing rates. Royal Translines Pvt Ltd was awarded the contract to move import containers towards Ahmednagar at ₹19,625 per box, a reduction of 18.61% over prevailing rates, while Ekta Enterprises will move import containers to the local region near Mumbai at ₹12,722 per box, a drop of 10.33% over existing rates. All the five successful transport operators have picked an IT partner to develop a digital platform.

Tyres Capacity Expansion Continues

Tyre CoS had to face the brunt of high input costs, namely those of natural rubber, carbon black, & crude oil during FY18. Crude oil prices surged more than 30% YoY during FY18 (till March 28, 2018), close to $70/bbl levels, while natural rubber prices (RSS-4 variety) settled at Rs120/kg after moving as high as Rs135/kg in Q2FY18. The govt. 12

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imposed anti-dumping duty on carbon black imports from China, thus leading to a shortage of the commodity for tyre manufacturers. Tyre manufacturers utilize ~70% of all carbon black production in the country. Owing to this shortage, domestic carbon black prices have jumped 60% in the past six months, according to data from All India Rubber Industries Association. Despite the grim input cost scenario, there is still a lot to cheer for. Firstly, the govt. has imposed anti-dumping duty on Chinese truck & bus radial tyres, which constituted nearly 40% of total volumes prior to the duty imposition. Secondly, tyre CoS are expected to benefit from strong growth prospects

for auto OEMs. As per ICRA, domestic tyre volume growth is pegged at 7-8% in FY18 & 8-8.5% in FY19. Exports are estimated to grow 10% in FY18 & 8-10% over the next three years. This would be led by stable demand & increased acceptance of Indian tyres in overseas markets, both in terms of quality & pricing. Consequently, tyre CoS have announced strong capex plans over next 2 years. This includes Apollo Tyres (Rs 2,400cr in FY18 & Rs2,100cr in FY19), CEAT (Rs 450-500cr in FY18 & Rs1,5001,700cr in FY19) & MRF (Rs800crRs1,000cr in FY18 & FY19). JK Tyres is done with its capex & expects only maintenance capex of Rs80cr-Rs100cr over next two years. ||www.constructionmirror.com||

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Maersk India’s Cold Chain Logistics Expands Shippers’ Reach

India’s reefer cargo trade appears to be the new mantra for Maersk Line & its peers looking to capture a larger share of the emerging economy market. Maersk Line India told JOC. com that it has substantially expanded its end-to-end cold chain service to & from India, which has enabled domestic reefer shippers to venture into new

geographies. “India is on an exciting growth path & with our focus on adding value to the customer ’s e n d - t o - e n d cold chain, the commitment to support the growth of the trade is very strong & visible,” said Steve Felder, Maersk’s newly appointed managing director for India, Sri Lanka, Nepal, Bangladesh, Maldives, & Bhutan. Maersk Line said it was the first carrier to introduce a “store-to-door” facility for perishable goods across various locations in the country, which have proved to be a major boon for hinterland

Pilot Container Train Chugs off to Bangladesh

The countdown began in April 2017 when India’s Container Corporation (Concor) entered into an agreement with the Container Company of Bangladesh to run container trains between the two nations to reduce the trade logistics costs. On Tuesday, V Kalyana Rama, Chairman & Managing Director of Concor, flagged off a container train, carrying 60 boxes containing 1,200 tonne of de-oiled cakes (an animal feed) from its city terminus to Bangladesh to explore the techno-economic feasibility for commercial operations. The train will take 24 hours to reach Bangabandhu West station, 117 km from Dhaka. “If the trial run is successful & Bangladesh gives clearance, container train services will be made available 14

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on regular basis. The frequency of trains will be determined based on the demand,” Rama said. The primary concern is if the train can negotiate the load restrictions on Jamuna bridge over the Padma. To overcome technical hurdles, the pilot train is running at 70% of its capacity. Will the trial run be successful? Both sides have to wait for the answer. The load restriction & low capacity utilisation of rakes will surely impact the freight tariff. Also a lot will depend on the flow of return cargo as running empty trains will be unviable. What is undeniable though is the strong intent shown by both sides to find more cost-efficient logistics solution to service the rising trade volume between the two nations.

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shippers, who; in the absence of reliable service offerings for such cargo; had limited global market access & were incurring high, extra logistics costs. “Whether it’s a small local startup planning big or a large multinational entering a new market, we enable trade & growth by being closer to your [the shipper’s] business & by developing solutions to suit the specific needs of the cold segments,” Felder said. The world’s largest container carrier said it has, over the past year, shipped & delivered a string of perishable consignments for Indian exporters & importers, using its one-stop, specialized supply chain logistics solution & globally established expertise in refrigerated cargo transportation.

India’s Largest Facility Hits Record Heights

India’s biggest port handled a record 4.8m teu in 2017 after registering growth of 7.4%. APM Terminals (APMT) Mumbai, the biggest terminal in the both the port & India, also set a new record after handling 2.3m teu, 42% of the port’s total. Ravi Gaitonde, managing director of APMT Mumbai, said: “This success is a result of the cooperation extended by the entire trade community including the cargo owners, Container Freight Station operators, transporters, rail operators & the port &

customs authorities. “We are continuously looking for ways to improve our service offering & increase the efficiency of the terminal to remain terminal of choice for our customers.” The remaining containers were handled by two DP World’s Nhava Sheva International Container Terminal & its Nhava Sheva (India) Gateway Terminal, the state-run Jawaharlal Nehru Port Container Terminal & PSA’s newly opened Bharat Mumbai Container Terminal.

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ews: Metal & Mining

Mahindra Construction Equipment Announce his new Business Head Manish Arora has been designate and would lead Mahindra Construction Equipment from April 2018 as Business Head. He is an accomplished business leader who thrives in challenging fast-paced environment. His 22 years of experience span of leading multiple functional hierarchy (Sales, channel, customer care, Marketing & Finance management) & Project management roles with M&M Tractors, Mahindra Swaraj Limited, Shell (Oil & Gas) & J&N (Paints – Decorative, Automotive & Industrial). Manish is acknowledged for driving significant growth in a highly competitive yet flat growth sector and recognized as someone who can bailout business, rock the boat & make quick and long-term sustainable strategy thereby transforming business.

Plastic Bag Makers Seek 7-Year Moratorium

Following the ban imposed on manufacturing & use of plastic bags in the state, the Plastic Bag Manufacturers Association of India (PBMAI) urged the govt. to provide a seven-year moratorium period to exit the industry. The association claimed the ban will put its members’ investments in jeopardy & make nearly 3 lakh people jobless. The state govt. on March 23 had banned the manufacture, use, storage, distribution, sale, import & transportation of all kinds of plastic items. The ban covers a wide range of items made of plastic & thermocol, including, bags, dishes, cups, glasses, bowls, forks, spoon, 16

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straw, containers, small PET bottles & decoration items. “We have urged the state govt. to provide a 7-year moratorium before we exit the industry. The Rs 15,000-Cr. platic bag manufacturing industry has nearly 2,500 manufacturers, who have made an investment ranging from Rs 10 lakh to Rs 50 Cr. each & obtained loans from private as well as public sector banks to set up units in the state,” PBMAI general secretary Neemit Punamiya told reporters here. He said the ban on plastic bags has derailed the production, packaging & supply schedules of grains, bakery & clothing industries.

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14 Gantry Cranes for Chabahar

India Ports Global Pvt Ltd has ordered 14 rubbertyred gantry cranes, or RTGCs, for about $18 mn from Finnish crane-maker Cargotec OYJ for use at the Chabahar port in Iran. India Ports Global, a 60:40 joint venture between Jawaharlal Port Trust & Deendayal Port Trust (previously Kandla Port Trust), was set up by the govt. to make strategic investments in ports overseas. India Ports Global & Aria Banader Iranian Port signed a deal in May 2016 to equip & operate the container &

multi-purpose terminals at Shahid Beheshti; Chabahar Port Phase-I with capital investment of $85.21 mn & annual revenue expenditure of $22.95 mn on a 10-year lease. India Ports Global had earlier signed a $29.8-mn deal with Chinese port-crane-maker Shanghai Zhenhua Heavy Industries Co Ltd (ZPMC) for four rail mounted quay cranes (RMQCs). The four rail-mounted quay cranes will be delivered in 16-18 months while the rubbertyred gantry cranes will be

supplied in 12-14 months.

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ews: Metal & Mining

Chinese CoS Keen to Engage in India Smart Cities Mission, Initiatives

A number of Chinese CoS across various sectors have converged here in Hyderabad to take part in the Sm@ rt Urbanisation meet to explore the possibilities of working on projects in the upcoming smart cities projects in India. The delegation headed by Shiyong Hong, Vice President, China Chamber of Commerce & Export Machinery & Electronics Products (CCCME), is seeking

to fa c i l i t a t e i n t e r f a c e between Chinese & Indian CoS exploring the potential to work on upcoming projects. The Smart Cities Council India, part of the global consortium of smart cities, is organising the 5th Smart Cities Summit Smart Urbanisation at Hyderabad International Convention Centre to analyse the learnings & impact assessment. Speaking at the conference being held here, Shiyong Hong, Vice President, China Chamber of Commerce & Export Machinery & Electronics Products (CCCME), said, “China & India are the two largest developing countries

with same strategies & dreams. Chinese President & Indian Prime Minister have met each other more than 10 times in the last 3 years. We need to match our strategies & explore potential for mutual growth.” He said, “By 2030 more than 0.7 bn people will be residing in Indian cities & India has to built 100 smart cities to cater to them. China can be a partner in developing Smart Cities in India with our innovative technologies & manufacturing capabilities.” CCCME comprises of leading Chinese CoS which include China Road & Bridge Corporation, Power China International group, ZTE Corporation, China ENFIL Engineering Corporation among others from diverse fields. Founded in the year 1988, CCME has more than 10,000 member CoS & maintains close relationship with Indian Embassy in China & together we have organised 3 conferences in China & 5 trips to India for Chinese CoS, he said.

Russian IT Firms Ready to Support India’s Smart City Initiative

India & Russia evolving partnership in the area of IT software & hardware solutions will go beyond traditional & can support India’s smart cities & infra. programs. This was agreed after Russia’s Russoft Association of software entered into a formal partnership with its Indian counterpart, Nasscom last month. The Russoft that has support of Russia’s

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Economic Development Ministry, Russian Trade Mission in India & FICCI among others, wants to form partnership beyond traditional areas of IT solution, Russoft Association president Valentin Makarov told ET. These areas would include smart cities & mega infra. initiatives according to Makarov who recently held dialogue with slew of Indian IT players. Russoft includes Russian specialised firms Bee Pitron who are ready to assist India’s smart city programs. “Quantum communication is also emerging as an important area for telemedicine & power sector. India & Russian IT giants can also collaborate in this sector,” he said. Indian CoS with expertise &

skills in project management could join hands with Russian CoS that are good at developing customized technology solutions, Makarov said. Russia’s software exports stand at $7.5 bn a year. Russia is known to have a range of modern IT-related technologies that are available only with the US & China. These include GLONNAS navigation system, Yandex search engine, Kaspersky operating system, VK social network, Telegram messenger & MIR bank payment system. Makarov said he would welcome more Indian CoS to explore opportunities to join hands with members of Russoft. He said Russia has been an old friend of India. “Our relationship has withstood the test of time. Why should we allow only US CoS to dominate the global IT landscape? If we join hands, we could have a win-win relationship.”

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ews: Metal & Mining

Urbanization Summit to Assess Impact of Smart Cities Project

Smart Cities Council India, part of a global consortium of smart cities, is organizing the 5th Smart Cities Summit, Smart Urbanization, at Hyderabad International Convention Centre from March 22-23, to analyze learning’s & assess impact. This assumes importance in the backdrop of the Smart Cities Mission completing three years this

June. The summit will provide the first all-inclusive opportunity to connect with various stakeholders in smart cities development. It will see the convergence of over 1,500 delegates & 40-plus start-up demonstrations. The event will serve as a platform to share & learn the progress made in the Smart Cities project in the country. With the Centre announcing the list of 99 cities that will be developed under the Smart Cities Mission; accounting for a population of over 13 Cr. (35% of India’s urban population); the focus will be on to expedite the implementation phase focussing on urban infra.. According to Jayesh Ranjan, Telangana Principal

Secretary, Industries & Commerce, & Information Technology Departments, said: “As of there are two designated smart cities (Hyderabad & Warangal) & another 10 cities in Telangana for infra. improvement under the Smart Cities Mission & AMRUT (Atal Mission for Rejuvenation & Urban Transformation).” Pratap Padode, Founder Director, Smart Cities Council India, said: “Smart Urbanisation is a platform for the govt. & private stakeholders to dialogue & derive decisive ways to outline India’s urban reality & future, strengthened with technological revolution.” Gautham Reddy, Vice-Chairman, Ramky Group, said: “The focus on smart cities is to improve the urban infra. & transform them into liveable, workable & sustainable cities.” The Smart Cities Council India has developed a tool for urban planners, ‘India Readiness Guide’.

CASE Construction Equipment Delivers 5000th Vibratory Tandem Compactor

CASE Construction Equipment, a brand of CNH Industrial, on Friday delivered the 5000th Vibratory Tandem Compactor, manufactured locally in Pithampur. It is the only manufacturer in the construction sector to have achieved this landmark in India. A key handover ceremony was held at CASE India’s Pithampur manufacturing plant in the presence of CASE top management. On reaching the milestone, Abhijit Gupta, brand leader, CASE Construction Equipment India, commented, “CASE 20

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India is the market leader in the compactor segment, & holds a leadership position across the entire range of products. The milestone is testament to the quality of its equipment & the trust that the country’s construction operations put in the CASE brand. We at CASE India always ensure that our customers get the right match for their requirements & are provided with the after-sales service & parts support they need. Such an achievement gives us the confidence to further excel & aim for ever greater milestones.” The key was handed over by Ajay Aneja, National Head-Sales & Export to Suhan Shetty from M/s Uday Shetty Group of CoS. On receiving the key, Shetty commented, “We own more than 25 CASE equipment including Backhoe Loaders & Grader. There is so much trust among the customers around the brand that when they think

of buying compactors, CASE India enjoys the highest ‘top of the mind recall’. Operator comfort, unmatched reliability, high centrifugal forces, & 360-degree visibility are a few of the features which make them stand out from the other brands available in market.” Giving the customers ample choice based on their requirements & needs, CASE India launched the CASE 752EX Vibratory Tandem Compactor at EXCON 2017. The CASE 752EX Vibratory Tandem Compactor is equipped with a fuel efficient 3.9-litre four-cylinder engine, with a mechanical injection system & internal exhaust gas recirculation, which delivers 76 hp at 2200 rpm & 332 Nm of torque at 1300 rpm. This new-generation engine - developed by sister brand FPT Industrial, world-leading manufacturer of powertrain, transmissions & axles for industrial vehicles - provides outstanding performance, fast response times, & best-in-class fuel economy.

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eport

WRI Launches the “Better Bus Challenge” Supported by FedEx Express in India Challenge to Explore Innovations to Improve India’s Public Bus Systems

RI India Ross Center for Sustainable Cities, with support from FedEx Express, the world’s largest express transportation company and a subsidiary of FedEx Corp. (NYSE: FDX), today announced the “Better Bus Challenge”, a competition to augment the quality, safety and efficiency of public bus systems in India. The open innovation challenge will bring together ideas from manufacturers, technology and service providers, mobility entrepreneurs, NGOs, corporations, and transit agencies to co-create solutions in the public bus sector. With around 70 million people traveling on buses, state-run public bus providers play an essential role in connecting people in cities across India. Transit agencies, who operate the public bus networks across India, carry more than 60% of the road passengers, competing with alternate mobility solutions that operate on-demand, and can offer greater comfort and service quality. Highlighting the need and importance of public bus systems in India, Dr. O.P. Agarwal, CEO, WRI India, said, “By 2021, it is estimated that India will need around 650,000 buses to cater to its transit needs. There is a need for decision- makers to broaden their perspective of urban transportation beyond traditional models to identify and implement strategies to meet this ever-growing demand in a sustainable and environmentally-friendly manner.” The challenge will address one of three

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categories: Operations Management and Efficiency, New Service Models, and Commuter Experience. The ‘Better Bus Challenge’ will offer the top three solutions a financial award of USD 50,000 or INR 32,00,000 each. The cash reward will be supplemented with a year-long mentorship to collaborate with transit agencies to design and implement solutions which cater to the needs of cities. Champions in the transit agencies will manage the year-long demonstration projects, and help measure their impact with the support from WRI India Ross Center. FedEx and WRI India Ross Center have worked together over the last seven years to assist cities in improving public transportation by addressing issues such as service quality, and fleet and fuel selection and training. Globally, the collaboration has helped nearly five million daily transit users, trained more than 9,000 transit professionals, and reduced 63,908 tons of CO2 emissions. “We believe that the more connected a community is, the more it thrives. We are excited to support the launch of the ‘Better Bus Challenge’ and believe that this unique platform will encourage stakeholders to create innovative solutions for the public bus transit system in India, making it more affordable, accessible and sustainable for everyone,” said Jack Muhs, president, FedEx Express Middle East, Indian subcontinent and Africa. FedEx support for this project is part of the FedEx Cares initiative, under which FedEx has committed to invest $200 million in more than 200 communities by 2020 to create opportunities and deliver positive change around the world. “In India, public bus transport is the backbone for two-thirds of commuters, connecting them to jobs, schools, health care and places of economic opportunity,”

said Amit Bhatt, director, Integrated Transport, WRI India. “By bolstering their service with innovative technology, transit agencies can make public bus services more efficient, accessible and comfortable for all.” Full details of the entry process for the ‘Better Bus Challenge’ is available at h t t p : / / w w w.w r i c i t i e s h u b . o r g / betterbuschallenge.

About WRI India Ross Center

WRI India Ross Center is part of WRI Ross Center for Sustainable Cities. WRI Ross Center for Sustainable Cities works to make urban sustainability a reality. Global research and on-the-ground experience in Brazil, China, India, Mexico, Turkey and the United States combine to spur action that improves life for millions of people.

About FedEx Express

FedEx Express is the world’s largest express transportation company, providing fast and reliable delivery to more than 220 countries and territories. FedEx Express uses a global air-andground network to speed delivery of time-sensitive shipments, by a definite time and date with a money-back guarantee.

About FedEx Corp.

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $64 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 425,000 team members to remain “absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities. To learn more about how FedEx connects people and possibilities around the world, please visit about.fedex.com. ||www.constructionmirror.com||

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CONSTRUCTION MIR ROR

ews of The Month

JCB “Makes in Rajasthan” for the World

Rolls out its 3,000th machine from the Jaipur Facility Products made to One Global Quality are being exported to over 50 countries

JCB India Limited, India’s leading manufacturer of Earthmoving and Construction Equipment, today organised a ‘Made in Rajasthan’ event at its state-of-the-art Jaipur facility. Smt. Vasundhara Raje, Hon’ble Chief Minister of Rajasthan, Lord Bamford, Chairman JCB Group, Graeme MacDonald, Chief Executive Officer JCB Group and Vipin Sondhi, Managing Director & CEO, JCB India attended the event. ‘Made in Rajasthan’ showcased JCB’s commitment to world class manufacturing in the state. Speaking on the occasion, Smt. Vasundhara Raje, Hon’ble Chief Minister of Rajasthan said, “I am happy to visit again the JCB facility which I had the pleasure of inaugurating. I am delighted that this world-class facility is not only creating employment opportunities but is also exporting products. I am also happy that JCB has created opportunities for women in what is considered a male bastion, by having over 30% of the workforce on the shopfloor as women. By exporting products manufactured in Rajasthan, JCB is a brand ambassador taking ‘Made in Rajasthan’ to the world.” Lord Bamford, Chairman, JCB Group said, “Our operations in India started in 1979 and for nearly four decades, JCB has been contributing

to building India’s infrastructure. The opportunities for growth which India presents are significant and thus, we remain committed not just to building machines, but also in making a positive difference in the lives of the people and communities whom we work closely with.” JCB’s Jaipur plant is spread over 114 acres and was inaugurated in November 2014. Apart from being committed to providing skills to its employees, it is also facilitating the development of a manufacturing ecosystem in Rajasthan. Graeme Macdonald, Chief Executive Officer, JCB Group said, “We are in the midst of growth in the Construction Equipment sector globally. This demand is being driven by countries like India. With key reforms having being undertaken and a business friendly environment, especially in states such as Rajasthan, India continues to be a priority for us.” With the Government’s increased focus towards building of world-class infrastructure in India, JCB is uniquely positioned to contribute to India’s growth. It is a full range infrastructure equipment partner, with its machines being used in several sectors like Roads and Highways, Urban Rejuvenation, Irrigation and Railways. Added Vipin Sondhi, Managing Director & Chief Executive Officer, JCB India, “JCB’s Jaipur Facility, in a little over three years of its inauguration, is playing a critical role in our growth plans in

India. Our diverse team of young people, where women represent a quarter of the workforce is building world class products not only for Rajasthan but also for over 50 countries where they are exported to. The conducive investment environment has further made our journey in Rajasthan exciting.” JCB is also providing education and employable skills to communities near its Jaipur plant through the Lady Bamford Charitable Trust. The Trust is also contributing to the spirit of Rajasthan through its efforts to revive and preserve the art of Indigo dyeing in the state. Today the Trust also extends support to 54 Government schools and nine vocational training centres around its five factories in Delhi-NCR, Pune and Jaipur, which benefits about 16,000 students and trainees.

About JCB India:

JCB India Limited is a leading manufacturer of Earthmoving and Construction equipment in India. The company started as a joint venture in 1979 and is now a fully owned subsidiary of J C Bamford Excavators, United Kingdom. With five state-of-the-art factories in India, it today manufactures over 50 products in 8 product lines which are not only sold in India, but have been exported to more than 90 countries. JCB has the largest dealer network in the construction equipment industry with over 60 dealers and 650 outlets spread throughout India.

5 Workers Injured After Scaffolding Collapses Five construction workers were injured when a portion of a scaffolding of Cleo County, an under-construction high rise in sector-121 of Noida fell on them while they were working on Tuesday morning. The incident, which could be a case of negligence, left one worker critically injured while others escaped with minor injuries. Police said the 24

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cause of the incident is still unknown but the scaffolding collapsed from the 2nd floor of the building. No complaint has been received so far, police said. According to the police, the victims have been identified as Majai Sheikh, Mahijul Alam, Vinod Rishi, Abdul Sattar & Raju. Sheikh was earlier admitted to Shivalik Hospital with severe head injuries while

others are admitted to Om Hospital. “The scaffolding was not installed properly & the incident took place at around 10:30 am. The scaffolding fell suddenly & few people got injured. The incident occurred during the ongoing construction work at the project site.

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CONSTRUCTION MIR ROR

eport

The 6th Edition of

UBM India’s Concrete Show India Aims to Enale the Bullish Construction & Infra Market UBM India announced the 6th edition of the Concrete Show India (CSI), the only expo in the country exclusively dedicated to the Construction and Infrastructure sector. Covering key areas in civil infrastructure including roads & highways, housing, airports, ports, power, rail, dams & bridges, CSI 2018 will be held at the Bombay Convention & Exhibition Centre (BCEC), Goregaon, Mumbai from May 24 – 26, 2018. CSI will showcase latest offerings in core categories encompassing Concrete & Construction, Construction Equipments, Construction Chemical, Commercial & Industrial flooring, Automations, Software (ERP, Project management, & Design) and mobile Construction tools & Instruments. The three-day show will provide excellent opportunities to industry professionals from Engineering, Procurement & Construction (EPC’s), Commercial & Residential Building Construction,Government & Civil Infrastructure, individual Architects, Consultants and Contractors & Developers. Professionals from diverse teams including Procurement, Design, Quality Control, Project Management, Building maintenance, S i te m a i nte n a n c e , M ate r i a l s management and Engineering teams will benefit from the event. Over 150 exhibitors have confirmed their presence at this turnkey event. They include prominent industry players such as PERI, Reckli India; Concrete Additives & Chemicals Pvt. Ltd.; Skyway; RMC Plants Pvt. Ltd.; Godrej Construction; Reit Qgreen, MASA Concrete Plants India Ltd.; WAM India Ltd.; FOSROC, Alchemica, Sany India, Hitachi Koki, Spancrete, Aneco, Cosben, Toyota forms, Sicoma,

Chowgale Construction Chemicalsto name a few. Visitors at the show will also witness an array of brands and products from countries such as China, Germany, Italy, UK and USA. Concrete Show India coincides at a time when the infrastructure sector is being granted unprecedented prominence by the Government of India, as a key driver of the Indian economy. A number of policies initiated by the Central Government have ensured that India is on the path of creating world class infrastructure facilities in the country. The event has been well-received by the industry with support from key associations such as its sector partner this year, Associations like the Indian Concrete Institute (ICI); Construction Chemicals Manufacturers Association (CCMA); Cement Manufacturers Association (CMA); Consulting Engineers Association of India (CEAI); Construction Industry Development Council (CIDC); Ready Mixed Concrete Manufacturers’ Association (RMCMA); and many more. The conference theme for 2018 is India’s Modern Infrastructure set in Concrete. Partnered with the Tunnelling Association of India (TAI), the technical conference will focus on all aspects of building & infrastructure technologies, best practices and implementation. In addition to this a variety of engagement platforms including the Innovation Zone, Student Incubation Cell, Demonstration Areas, Start-up Zones, Business to Business & Business to Government and Experience Zones will enable a strong interaction and participation from all stakeholders in the industry.

About UBM India:

UBM India is India’s leading exhibition organizer that provides the industry with platforms that bring together buyers and sellers from around the world, through a portfolio of exhibitions, content led conferences & seminars. UBM India hosts over 25 large scale exhibitions and 40 conferences across the country every year; thereby enabling trade across multiple industry verticals. A UBM Asia Company, UBM India has offices across Mumbai, New Delhi, Bangalore and Chennai. UBM Asia is owned by UBM plc which is listed on the London Stock Exchange. UBM Asia is the leading exhibition organizer in Asia and the biggest commercial organizer in mainland China, India and Malaysia. For further details, please visit ubmindia.in. About UBM plc: UBM plc is the largest pure-play B2B Events organiser in the world. In an increasingly digital world, the value of connecting on a meaningful, human level has never been more important. At UBM, our deep knowledge and passion for the industry sectors we serve allow us to create valuable experiences where people can succeed. At our events people build relationships, close deals and grow their businesses. Our 3,750+ people, based in more than 20 countries, serve more than 50 different sectors – from fashion to pharmaceutical ingredients. These global networks, skilled, passionate people and market-leading events provide exciting opportunities for business people to achieve their ambitions.

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Cover Story 1

ndian tyre industry is highly competitive with the presence of a large number of global & Indian auto-CoS. However, top 10 CoS account for about 80% of the market share. Tyre demand is directly proportional to the automobiles demand. Therefore, demand swings in the automobiles have an impact on the demand for tyres.

Indian Tyre Industry is Expected to Show A Healthy Growth Rate of 9-10% Over the Next Five Years 28

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Indian Tyre Industry Brief

The tyre is an assembly of numerous components that are built up on a drum & then cured in a press under heat & pressure. Heat facilitates a polymerization reaction that crosslinkâ&#x20AC;&#x2122;s rubber monomers to create long elastic. Tyre plants are traditionally divided into five departments that perform special operations. These usually act as independent factories within a factory. Large tyre makers may set up independent factories on a single site, or cluster the factories locally across a region. Domestic tyre industry is in modernization phase & largely driven by demand & supply conditions, rather than govt. regulation as it was earlier. Domestic tyre industry can be classified on the basis of its design, markets & vehicle category, which have been evolved over the years.

Vehicles

Category wise: The domestic tyre industry can be classified in terms of types of vehicles in which it is used. The category comprises of tyres used in T&B, LCVs, tractors, OTR & ADVs. Since these tyres are used for commercial usages they are sturdier, bigger & heavier than personal tyre category. In the overall sales of tyres in unit terms, the commercial segment contributed about 19% in 2015-16 while the remaining came from sales of personal vehicles (passenger vehicles & Two & Three wheelers). Under personal segment, two & three wheelers constituted about ||www.constructionmirror.com||

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Cover Story

66% sales while the passenger cars made up for the balance sales. T&B dominates overall commercial usage segment with around 57% share in the units sold in FY16. This is followed by LCV segment with a share of 28% during the year. Tractor front & rear tyre segment constitute around & 9% & 7% respectively during the same period. Market wise: Tyre demand originates from two end-user categories, i.e., OEMs & the replacement segment. Consumption by OEMs is dependent on new automobile sales trend while the replacement segment is linked to usage patterns & replacement cycles. Demand from the replacement segment dominates the Indian tyre market contributing about 56% of demand, in terms of units. The major reason for high replacement share is due to the fact that the no. of registered vehicles/annual sales remains at about 10x at close to 20 Cr. registered vehicles vis-a-vis Rs. 2.4 Cr. annual vehicle sales. The export category is about 18% of the total units sold in the domestic market. The industry registered sales of around 151,026 (000 units) in the domestic market while the total exports of tyres during the year was 26,699 (000 units) in 2015-16. Therefore, the total tyre sales during the year was 177,724 (000 units) registering a marginal growth of about 4% YoY. A. Vehicle Categories Commercial oﬀ The Road (OTR) Animal Driven Vehicle (ADV) Tractors

LCVs

T&B

Personal

Motorcycles Passenger Cars Scooters

B. Markets

OEM

Exports

Replacement C. Design

Radial

Cross ply

Source: CARE Research

Tyre Production

Indian tyre industry is highly competitive with the presence of a large number of global & Indian auto-CoS. However, top 10 CoS account for about 80% of the market share. Tyre demand is directly proportional to the automobiles demand. Therefore, demand swings in the automobiles have an impact on the demand for tyres. India’s annual automobiles production registered a sluggish growth of 2.6% YoY in 2015-16. This led to decline in demand for tyres as well during the year. Tyres production (in volume terms) increased only marginally by about 4% in 2015- 16 after increasing by about 13% in the preceding year. Category wise, two & three wheeler tyres have a share of about 53% in the overall tyre production. This is followed by passenger vehicles & commercial vehicles with a share of about 26% & 17% resp. Tractor segment constitutes only about 4% of the total tyre produced in the country. Off-the-road & other tyres constitute minute shares of less than 1% of the industry production. A similar share trend is witnessed in the sales of tyres registered in the country. In 2016-17 (Apr-Dec), tyre production increased by 11.9% YoY on back of increased OEM demand as well as the replacement market. PV production grew by about 12%, Tractors by about 17%, CVs & 2 & 3 wheelers production by about 4% & 5.5% respectively during the same period. However, cheaper imports from China & slower exports pose a threat to this growth in production of tyres. In 2015-16, India’s annual production stood at 23,960,940 vehicles (including passenger vehicles, commercial

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Cover Story vehicles, three wheelers, two wheelers & quadricycle) as against 23,358,047 in 2014-15, registering a sluggish growth of 2.6% YoY. Two-wheelers have dominated the production volumes of the automobile industry over the years. Over the past 4 years, Two-wheeler production share in the overall automobile production has remained constant at around 80%. This is followed by passenger vehicles having a share of 14%. Productions of commercial vehicles & three-wheelers have about 3% share each in the automobile industry. Two & Three wheelers together comprising about 83% in the overall automobile production in 2015-16, demands about 53% of the total tyre production volumes, followed by passenger vehicles segment that accounts for about 26% share of the total tyre production volumes.

Tyre production traditionally, is multistage, with sig. inter-stage differences in the intensity of labor requirement, & a highly complex process involving the use of around 37 different materials including rubber, steel, fabrics & vulcanizing materials. The production system in the Indian tyre industry has been traditionally very labor intensive. The automation of manufacturing processes has increased gradually, which has slashed the size of the workforce to a considerable degree & has effected a change in its composition. The degree of automation has been greater in the area of radial

technology, while cross ply technology is still labor intensive. The firms have been resorting to automation in order to tackle problems related to labor unionization & indiscipline in the sector. The rationale provided by the firms for the increasing drive towards automation of the manufacturing facilities has been that high quality & uniformity of the final product usually cannot be guaranteed with a labor intensive process.

Raw Material

Raw material cost forms the largest cost head in the tyre industry accounting for about 65-70% of the total. The main raw materials used to manufacture tyres are natural rubber, poly butadiene rubber (PBR), styrene butadiene rubber (SBR) & nylon tyre cord fabric. All these raw materials impart different properties, which are combined to develop tyres with particular characteristics. Rubber including (natural & synthetic), nylon tyre cord fabric (NTC) & carbon black constitute a sig. portion i.e. ~60-65% of the overall raw material cost of the industry. Hence any change in the prices of these materials impact the overall industryâ&#x20AC;&#x2122;s profitability. However, since FY13 the rubber prices witnessed a correction thereby reducing the overall raw material cost as a percentage of total exp. to 68% on aggregate basis in FY16 as compared to 80% in FY11. However, the price of rubber is prone to fluctuations & in 2016-17 (Apr-Feb), domestic & international rubber prices increased by about 28% after declining by 24% & 15% YoY for 2 consecutive years. The demand-supply gap in production & consumption of rubber in the country remains the reason for higher natural rubber prices in the domestic market & competitive prices in the international market leads to high imports from the international market. With high rubber prices in domestic market on account of lower production, imports of rubber has increased over past few years to about 45% in the 2015-16 from about 18% in 2010-11.

Rubber

Rubber is a major component in manufacturing of a tyre. There are three categories of rubber used in the manufacturing process viz natural rubber (NR), styrene butadiene rubber (SBR) & poly butadiene rubber (PBR). Natural rubber is an elastic hydrocarbon polymer that is originated from milky colloidal suspension or latex found in the sap of some plant. Natural rubber forms around 70% of the total rubber content, which is a sharp contrast of its usage in the developed markets like USA, Europe & Japan, where it is estimated to be around 35-40%. One of the primary reasons for more usage of natural rubber in India is its local availability with India being one of the largest producers in the world. In addition to this, natural rubber absorbs greater amount of heat & is more adaptable to poor road condition & overloading compared to synthetic rubber. Styrene Butadiene Rubber (SBR) is a synthetic rubber which imparts abrasion & fatigue resistance in tyres & is used in blend with natural rubber & accounts for about 5-7% of the total raw materials costs. The content of SBR is higher in radial tyres than cross-ply tyres. However due to its poor tear strength especially at high temperatures its usage is observed to be comparatively lower in heavy duty truck tyres. In India, the demand for SBR has picked during past few years as penetration of radial tyres in passenger car industry has increased considerably. Non-tyre applications of SBR include footwear industry, car mats, battery containers, gaskets, toys etc. Apcotex is the only major manufacturer of SBR in India. However, grades SBR S1712 & S1502 used in tyre manufacturing ||www.constructionmirror.com||

are not manufactured domestically. Hence total demand of SBR for the tyre industry is met through imports from Thailand, Indonesia & Vietnam. Poly Butadiene Rubber (PBR) is the other variant of synthetic rubber used in the tyre industry which accounts for about 5% of the total raw material cost of tyre manufacturers. It is used as tyre treads, sidewalls, carcass & beed fillers which gives tyres increased mileage & flex cracking properties. Reliance Industries is the sole producer of PBR in the country.

Technology

Radialization has been a sig. dimension in the acquisition of technological capability in the Indian tyre industry. The degree of radialization is a clear indicator of the status of road development, vehicle engineering & the economy in general. Inspite of some constraints & limitations, the tyre CoS in India have kept pace with the technological improvements that radialization signifies & offered stateof-the-art products, comparable to the best in the world. Radialization is linked to factors such as road development, overload control & retreading infra.. Some of the advantages of radialization are additional mileage, fuel saving & improved driving. However, attempts towards radialization have not taken off at the expected pace due to factors like lack of suitability of Indian roads for plying of radial tyres, older vehicles not possessing suitable geometry in terms of fitment, unwillingness of the Indian consumer to pay higher prices for radial

tyres etc. Nevertheless, the scenario is radically different for the passenger car tyre segment, where radialization has crossed 95%. In the medium & heavy commercial vehicle segment, the level of radialization is comparatively poor, i.e. merely 4% & in the LCV segment; it is 15%. Technology generation in the Indian tyre industry is essentially geared to development research, involving the change of tread design, reinforcement material etc. Most of the major players do not engage in basic research due to the high costs involved. The source of technology for the domestic firms has been through reverse engineering, joint ventures & collaborations. The emphasis given by Indian tyre CoS to applied research & the setting up of well-equipped in-house R&D centers by the CoS, which are manned by experts & experienced professionals, have also helped in technology upgradation. Indian tyre technology has exhibited versatility in maintaining inflow of technology through foreign collaborations & tailoring the same to Indian needs. R&D is essentially business or market driven. However, raw material suppliers could also help in conceiving new projects. Compound development & in-process problems have been the main thrust of in-house R&D in the Indian tyre industry. A sig. proportion of R&D effort in the tyre sector is carried out by four or five top CoS. The proportion of raw material expenditure in relation to sales has witnessed a sharp spurt in 2007. The proportion of exports to total sales continues to be negligible in the tyre sector & a major portion of the sales revenue is garnered through the domestic market. Tyre technology upgradation is an extremely difficult process, particularly in Indian scenario, due to several factors. First, since tyre technology encompasses various disciplines such as polymer, chemical, steel etc. compromises have to be made in the upgradation of technology because of a) the conflict & complimentarity inherent in these disciplines, b) the usage pattern of the tyres & c) the cost factor. Further, a tyreâ&#x20AC;&#x2122;s performance could be affected

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due to factors such as the weather, loading pattern etc. Despite these bottlenecks technology upgradation in Indian tyre industry during the last few decades has been sig.. This has been possible to some extent due to govt. approvals of collaborations with MNCs in this sector. The emphasis given by Indian tyre CoS to applied research, the setting up of well-equipped in house R&D centres by large tyre CoS, manned by experts & experienced professionals have also helped in technology upgradation. Indian tyre technology has exhibited versatility in maintaining inflow of technology through foreign collaborations & tailoring same to Indian needs.

Policy Environment

All categories of tyres can be exported freely. All categories of new tyres can be imported freely. No WTO Bound Rates for tyres & tubes. Imports of Second hand/Retreaded tyres (major categories) are restricted under EXIM Policy & can be done against an import license. Tyres imports under Regional Trade Agreements (Asia Pacific Trade Agreement, Indo-Sri Lanka, SAFTA, India- Singapore, ASEAN, India-Malaysia etc.) allowed at preferential rates of import duty. All tyre industry related raw-materials can be imported freely (under OGL). Tyre Industry delicensed in 34

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September, 1989. Natural Rubber (NR) principal raw material of Tyre Industry, is in the ‘Negative List` (i.e. not eligible for any concession in Custom duty) under various Trade Agreements, i.e. India ASEAN Free Trade Agreement, India Sri Lanka Free Trade Agreement, South Asian Free Trade Agreement (SAFTA), India Malaysia Comprehensive Economic Cooperation Agreement (CECA), IndiaSingapore Comprehensive Economic Cooperation Agreement & IndiaSouth Korea Comprehensive Economic Partnership Agreement (CEPA).

Industry eyes double-digit growth in 2019

Cheap Chinese imports to put pressure on Indian tyre industry. Having reached the 80% capacity utilization mark, tyremakers are planning to invest Rs 35,000 Cr. in Greenfield & Brownfield projects to expand capacity. Manufacturers also anticipate doubledigit growth from FY19 against singledigit growth this year, driven by domestic & export demand. During the same time last year, the capacity utilization of tyre industry was 65-70%. Not only growth in automobile industry that has helped tyre segment. Growth has been aided by govt. policies also claims to represent about 90% of tyremakers. Industry had benefited from policies, demonetization had curtailed Chinese imports. GST put even more pressure on

Chinese imports, which have dropped by 50%. In 2016, China had exported 150,000 tyres a month to India. The no. has now fallen to 60,000. The no. is likely to go down further, as Indian tyres would be competitively priced against Chinese ones. Tyre industry invested about Rs 25,000 Cr. between FY11-16. CEAT plans to invest about Rs 5,000 Cr. in Chennai, & MRF plans to invest Rs 800-1,000 Cr. every year, besides opening Rs 4,000-Cr. facility in Gujarat. Expect 2nd half of FY’18 to be better than 1st for the industry. Even 2nd rung tyre firms have reported good volume growth, & the industry would close the year with high singledigit growth. Expect between 2015 & 2026, the industry’s total turnover would grow by nearly 4 times. This will be led by both domestic & export markets. In value terms, tyre exports for the first 6 months of 2017-18 rose by 13% to $1,620.96 mn. Corresponding growth last year was 7%. In the coming years, growth would even touch around 20%. Besides SAARC, West Asia, ASEAN countries, the tyre industry was betting big on Africa, currently dominated by the Chinese players. Industry needs to get into Africa & other countries. This would need support from the govt.

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Conclusion

ATMA has asked the Ministry of Commerce for duty free import of natural rubber equivalent to deficit in domestic production. Request by the body came after the Rubber Board projected domestic natural rubber deficit of 3.4 lakh tonne during the year 2017-18. Domestic production of natural rubber continues to be far below its requirement. Lately, sharp volatility in natural rubber prices has led to further crunch in the domestic markets. In the last 2 months, natural rubber prices have zoomed a sig. 30% & growers are holding back stock in the hope of a continued rally in the prices. With rise in prices & high import duty, imports have become un-viable. Tyre industry consumes 65-70% of the natural rubber produced in the country. However, import of natural rubber in India attracts 25% duty which is highest in the world. Higher ||www.constructionmirror.com||

import duties will hurt the margins of tyre manufacturers as they will be left with no option other than importing natural rubber in case of a deficit in production. Manufacturers are also worried about the rampant dumping of cheap Chinese radial tyres in the domestic market. Tyre OEM segment is expected to witness growth in 2016-17 largely driven by the buoyancy witnessed in automobile sales. Post demonetization, growth estimation of two-wheelers & small cars has been hit slightly. However, lower cost of ownership of auto vehicles triggered by series of interest rate cuts, push on manufacturing & infra. segment by the govt. combined with lower fuel prices have resulted in recovery of auto sector. Tyre industry stands to benefit from this turnaround in OEM demand & stable replacement demand. However, tyre manufacturers supplying to CV, PV & tractors segment are expected to benefit the most in the near term as the outlook for these auto segments in the Indian market is relatively more positive than TW. Capacity utilization levels for manufacturing TBRs have come down to 60-65% from 80-85% in couple of years ago due to increasing dumping of TBR tyres from China. Also, the tyres & tubes industry was expected to witness completion of about 5

projects worth Rs 45.9 bn in 2016-17 adding an incremental capacity of about 13.7 mn units to the industry. In the next two years (FY18 & FY19) about Rs 70 bn worth projects are to be completed adding another 12 mn unit capacity to the industry. Going forward, sig. capex will put pressure on the utilization levels & hamper the operational margins of the players. Over the past few years, the trend in tyre production & sales for OEM market has been in line with the automobile sales for the period. While demand from replacement market has been higher, sales are expected to grow at 10-11% per annum during 2017-18. Both, domestic & export demand for tyres is expected to remain robust during this period on the back of strong growth prospects for Auto OEMs as well as the stable replacement market. Indian Tyre industry is expected to show a healthy growth rate of 9-10% over the next five years, according to a study by CARE. While the truck & bus tyres are set to register a CAGR of 8%, the LCV segment is expected to show a CAGR of about 14%. However, we have to also take account of the effect of the global recession on the sector in making these assessments. Growth of the sector is closely linked to the expansion plans of the automobile CoS; govt.â&#x20AC;&#x2122;s thrust on development of road infra. & the sourcing of auto parts by the global OEMs. Some sig. hurdles towards attaining these projected growth rates could be raw material related price volatility, rupee appreciation & the looming threat of cheap Chinese imports. Indian tyre CoS need to make active efforts to explore newer markets as the existing markets for bus-truck tyres, which account for about 45 % of the total export volume, is nearing saturation. There is also an urgent need to increase the degree of radialization in order to safeguard their share in the export market. Global tyre manufacturers have been making constant efforts to innovate & offer a diverse range of products such as tyres with pressure warning systems, run flat tyres, eco-friendly tyres & energy efficient tyres. In this context, the Indian domestic CoS have to pursue a growth strategy of continuous innovation & increasing emphasis on product differentiation. || APril 2018 ||

CONSTRUCTION MIR ROR

smart city will have a different connotation in india than, say, Europe. Even in india,t here is no more way of defining a smart city. essentially the notion of smart city involves a wish list of infra and services that describes onces standard if aspirations.lets get deep in the basics of the smart city project.

Cover Story 2

Smart Cities Still a Work in Progress: Current State of Indiaâ&#x20AC;&#x2122;s Ambitious Smart City 36

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mart Cities Mission is progressing at a ‘brisk pace’ & is aimed at touching ‘people’s lives’ by making them affordable & accessible to everyone. It cannot over emphasize that the people-centric facet of all initiatives remains the key to unlocking its value & ensuring sustainable development. Smart City initiatives have given us tremendous power & opportunity to touch people’s lives, & make a difference in the way they work, & live. Hope that we are able to use it to make a real difference by creating affordable, accessible & inclusive Smart Cities for everyone. The Smart Cities Mission is progressing at a brisk pace & this remains one of the fastest ever project implementations at this scale & geographic spread in the urban sector. The ministry has so far launched 99 smart cities in 2 years. The 1st batch of 20 cities was selected in Jan’16, & last 9 cities were selected as recently as in Jan’18. Cities selected so far, have identified projects worth Rs 2.02 lakh Cr. As on 17 Jan’18, there are 2,948 projects worth Rs 1.38 lakh Cr, at various stages of implementation. 189 projects worth Rs 2,237 Cr have been completed, & implementation is underway for 495 projects with a cost of Rs 18,616 Cr. Tenders have been floated for 277 projects with a cost of Rs 15,885 Cr while 1,987 projects worth Rs 1.02 lakh Cr are at DPR stage. Smart Cities Mission is a step in the direction of achieving our vision to improve the ease of living particularly for the poor, women, elderly & differently abled people. All Indians should be able to enjoy a clean & sustainable environment. As a major player in the digital revolution & a technology superpower, India must also leverage cutting-edge technology to power its infra, offices, & homes. FM Arun Jaitley while presenting the Union Budget 2018-19 said that as many as 99 cities were selected under the ambitious Smart city mission at an outlay of Rs 2.04 lakh Cr. Infra is a growth driver for the country. In the Smart City Mission that aims 100 cities, 99 smart cities have been selected & to be allocated Rs 2.04 lakh Cr, Jaitley informed the Parliament. Smart Cities Mission is one of the ambitious initiatives of the govt in Jun’15 that aims to develop 100 cities across India that would also harness the ICT capabilities. The Urban Development Ministry, in the 1st phase selected 20 cities in Jan’16. Currently, there are more than 2,500 projects worth over Rs 1.35 lakh Cr underway under the mega program while 189 projects amounting to close to Rs 2,235 Cr have already been completed. True to the commitment, Smart Cities programme is progressing well & with continued budgetary support, these cities will greatly benefit from a new ecosystem of infra leveraged on the thrust of using technology as the backbone. Modernisation of railway infra like Smart Cities has been a compelling need & the new commitment by the FM would firmly take the Railway in this direction. So, let’s know more about the concept. According to the Ministry of Housing & Urban Affairs, there is no universally accepted definition of a Smart City. It means different things to different people. The conceptualisation of Smart City, therefore, varies from city to city & country

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Cover Story

to country, depending on the level of development, willingness to change & reform, resources & aspirations of city residents. A Smart City will have a different connotation in India than, say, Europe. Even in India, there is no one way of defining a Smart City. Essentially, the notion of a smart city involves a wish-list of infra & services that describes his or her level of aspiration. To provide for the aspirations & needs of citizens, urban planners ideally aim at developing the entire urban eco-system, which is represented by the four pillars of comprehensive development means institutional, physical, social, economic infra. This can be a long-term goal, & cities can work towards developing such comprehensive infra incrementally, adding on layers of smartness. One of the signature schemes of the govt, Smart Cities Mission, is being further enhanced with an outlay of ₹6,169 Cr in 2018-19 as against ₹4,000 Cr in 2017-18. However, analysts tracking the sector feel the allocation needs to be further 38

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enhanced to spur growth. Industry experts say the current requirements for smart-city project alone could be in the range of ₹15,000 Cr. The outlay for 2018-19 stands at ₹12,169 Cr, including ₹6,000 Cr for AMRUT. A closer look at the Budget reveals that the govt allocated a total of ₹9,276.70 Cr in 2016-17. For 2018-19, the allocations have gone up to ₹12,169 Cr from ₹9,000 Cr in 2017-18, a 35% increase. Centre has launched 99 smart cities in 2 years. True to the commitment, Smart Cities programme is progressing well & with continued budgetary support, these cities will greatly benefit from a new ecosystem of infra leveraged on the thrust of using technology as the backbone. A chunk of the fresh allocation has been earmarked for formation of SPVs in 10 Smart Cities, improvement in specific socio-economic indicators based on the specific development theme being pursued by 100 Smart Cities. Govt expenditure on thousands of projects initiated under Smart Cities

Mission across India has already created a large market for the private sector & is going to further translate into jobs at all levels, better & efficient infra & liveable cities for everyone. Govt has 2 interlinked programmes to address the urbanisation phenomenon-smart cities & AMRUT. So far, 99 smart cities have been selected with an outlay of ₹2.04 lakh Cr. It is good to know that these cities have started implementing the ambitious smart cities mission & about ₹2,350 Cr worth of projects have already been completed. Around ₹20,850 Cr worth of smart city projects are still under progress. With max increase in allocation to the Smart Cities Mission, the Housing & Urban Affairs ministry’s budgetary provisions have been pegged at over INR 41,765 Cr for the next fiscal, a hike of 2.82% over 2017-18. HUA ministry was formed after merging the ‘urban development’ & ‘housing & urban poverty alleviation’ ministries, which

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to Rs 2,300 Cr in the current FY. Swachh Bharat Mission has benefited the poor, under the mission, govt has already constructed more than 6 Cr toilets. The positive effect of these toilets is being seen on the dignity of ladies, education of girls & the overall health of family. Govt is planning to construct around 2 Cr toilets. The Swachh Bharat Mission is being implemented by housing & urban affairs ministry in urban areas, while the rural development ministry is responsible for its implementation in rural areas. PMAY (Urban) got just 7.64% hike in the allocation at Rs 6,505 Cr for 2018-19 as compared to Rs 6,042.81 Cr in 2017-18.

5% of projects finished

had a total outlay of Rs 40,618 Cr in Union Budget 2017-18. Smart Cities Mission, under which the ministry has announced 99 cities for central assistance, got the highest hike of 54.22% with Rs 6,169 Cr as against Rs 4,000 Cr in 2017-18 Budget. 99 cities have been selected with an outlay of Rs 2.04 lakh Cr. These cities have started implementing various projects. Highest allocation of Rs 15,000 Cr was made for ‘Mass Rapid Transit System’ & ‘Metro Projects’ out the total allocation to the HUA ministry. However, the amount was 16.66% lower than Rs 18,000 Cr allocated to them for the current fiscal. AMRUT scheme was allocated Rs 6,000 Cr, a jump of 20% over Rs 5,000 Cr in the current fiscal. AMRUT scheme aims at ensuring robust sewage networks, water supply & other infra’s to improve the quality of life of people in urban areas. Swachh Bharat Mission (Urban), one of the flagship program’s of Modi govt, got a hike of 8.69% with allocation of Rs 2,500 Cr for next fiscal as compared ||www.constructionmirror.com||

Two-and-a-half years after PM announced his govt.’s ambitious Smart City Mission, only 5.2% of the total identified projects have been completed with just 1.4% of the total envisaged investment of Rs 1,35,958 Cr.. According to data presented by the housing & urban affairs ministry to the Rajya Sabha on 4 Jan’90 “smart cities” have identified 2,864 projects. Of these, 148 projects worth Rs 1,872 Cr. have been completed. Work on another 407, accounting for about 14% of the total investment envisaged under the mission, has started. About 72% of the identified projects are still at the stage of preparation of DPR. Of 90 cities that have approved smart city projects, only 31 have completed at least one. NDMC leads the chart with 23 completed projects, followed by Varanasi (16) & Raipur (10). 27 cities have not issued a single tender for works to be carried out under the mission. Building smart cities was one of the major promises made by PM in the runup to the 2014 Lok Sabha elections. The duration of the mission is 5 years, from 2015-16 to 2019-20, as per the mission statement & guidelines. After that, it may be continued in the light of an evaluation to be done by the govt.. The first lot of 20 cities was selected on 1 Jan’16; subsequently, another 70 cities joined the list. The Centre provides financial support of Rs 500 Cr. to each of the 90 cities & a matching contribution has to be provided by the respective state

govt.s. Since the launch of the mission in June 2015, the Centre has released Rs 9,718.20 Cr.. Cities will have to raise the balance funds through their own resources or by imposing user charges. However, many projects are stuck as local governing bodies are unable to raise money using their own resources. Many cities are also facing resistance in execution of projects as citizens have opposed user charges for services provided under the mission.

MOST PROJECTS IN REPORT STAGE Project No. of Status projects Completed Work order issued

1,872 1.4

148 407

Tendering on In DPR*stage

Cost ( cr)

Funds used Projects as %age of as %age of total Mission’s envisaged envisaged in mission investment

237

2,072

Total: 2,864 DPR means: detailed project report

5.2

15,600 11.5

14.2

9.9

8.3

77.2

72.3

13,514 1,04,972 Total: 1,35,958

Current state of ambitious Smart City Mission

The conversion of a large, crowded & unplanned city in India to a Smart City is currently an impossible scenario to imagine. Taking a smaller town, not overrun by people, vehicles & multiple layers of red tape or ‘babudom’, & converting it into an ideal, intelligent, self-sufficient & secure ecosystem is still workable. However, In India, the progress towards achieving the goal of 100 smart cities by 2020 has clearly become sluggish owing to inaction, a lack of understanding, a dearth of technical training & skill building, & most of all the non existent security framework. While there is big talk of technologies like smart lighting, smart waste management, better surveillance, smart traffic management, & such, for now, the common Indian folk are yet to witness the wonders of living in a smart city in their daily lives. In the real world, traffic jams in large metro are still killing us softly, electricity or the lack of it is still an issue unresolved with every changing govt., safety - physical or cyber - is a big joke, people as well as civic bodies use the natural environment as their personal dumping ground & the internet is still a fairly new concept in the country after 35 years of its

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existence. According to a report released by the Minister of Urban & Housing Affairs, 148 projects have been completed till date under India’s Smart Cities Mission. Besides this, 407 projects have started work, & another 237 projects are in the tendering stage. So while things have progressed slowly until now, there are very encouraging signs that India’s Smart City Mission will be successful. Further 82 out of 99 cities now have functional Special Purpose Vehicles, who monitor, assess & implement their cities smart city projects. Furthermore, the state & central govt.s have created an efficient system for the flow of money, so that SPVs are not hindered by financial problems. India may not finish transforming 100 cities into smart cities by 2020, but the mission is very much on track – providing smart technology to 100 cities by 2020. Having been used to a relationship of doling out grants to cities & its citizens the administration has grown too accustomed to not being accountable & not having to be questioned on quality of delivery. They now have to come up with sustainable solutions & be accountable for them. This requires a change in mindset. Secondly, even if the mind-set underwent a change, capacity building remains a huge hurdle. Finally, legacy of old technologies & systems further complicates the ability in making valuable offerings. These, in my opinion, are the biggest roadblocks 40

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to developing smart cities in India. Finance is another huge obstacle especially in light of the focus on publicprivate partnership (PPP) model to fund smart cities projects. Govt. has set up a uniform process through which smart city projects can be actively bid upon. After the setup of an SPV in a city, its CEO is permitted to invite a request for proposal (RFP) from consultants & other companies to take up work under the assigned project. These companies then bid for smart city projects through tendering, after which the SPV chooses the most suitable tender to carry out the selected project. For companies such as HPE, Intel & Cisco who are leaders in Smart City technology around the world, it is hard to imagine that they would invest so many millions without having a clear plan for viability & financial benefit. Firstly, investing so heavily in smart cities gives these companies an opportunity to create & operate these cities of the future in a way that they see fit, thus making their imprint on the future which by itself is a tremendous incentive. Furthermore, they have the opportunity to leverage their platform & network in order to create new sources of revenues in areas such as advertising, data analytics & subscriptions. Lastly, by displaying leadership, & managing the entire implementation, operations & partner ecosystem of the smart city initiative, large companies are involved in decision making at the govt.al level, thus giving

them a voice in more issues that can benefit all parties The biggest hurdle in controlling cities through command & control centers is the training aspect of those set to control it. CCCs, when implemented fully, will do nothing but improve the accessibility of services & govt. to citizens. It will enhance the ability of officials to respond fast to situations, by leveraging good quality data & information, & ensure the best for people. Consequentially, this requires an intensive training process for those who will work in Central Command Centers. There is a need to ensure a rigid training program that would prepare city officials to act quickly, & prepare them to react to emergencies calmly. This may even require foreign assistance from cities such as Rio De Janeiro who have successfully set up CCCs, & run them efficiently. The current regulatory framework in place for smart cities in India can definitely be made stronger. Currently, the Information Technology Act governs the scope of internet activity in India. However, the introduction of smart cities has created a surge in “Big Data”, i.e. enormous sets of unstructured data analysed computationally to understand patterns relating to human behaviour. This poses new challenges regarding privacy & personal information that are currently not defined under the act, which can leave smart cities vulnerable. Furthermore, the National Cyber Security Policy, & the Geospatial Information ||www.constructionmirror.com||

Regulation Act also fall short of properly protecting data & privacy under smart cities. In time to come, it may be essential to examine the feasibility of developing a comprehensive law on cyber security, privacy, data protection & standardization of equipment. India is currently doing its best to safeguard its citizens & their data, but with the govt.’s ambitious Smart Cities Mission, & the quick progress towards a new digital age, there is a new framework needed to account for smart cities. The Govt. of India launched its Digital India campaign & its Smart Cities Mission in 2015, after which improvements in online infrastructure are slowly being carried out. In a country such as big as India, which is still developing on a cultural & economic front, there were basic changes that were needed to even provide the common man everyday easy access to the internet. However, albeit slowly, the govt. has made technology a forefront in everyone’s life. IoT is a relatively new & modern concept in India, where we are still trying to deliver stable electricity & connectivity to every corner. Thus, IoT is still an alien concept to the country. Applications of technology in resolving daily city life issues are a good start as parking, public safety, lighting projects are introducing this concept to citizens & officials. However, through public awareness conferences & seminars held by the govt., the IoT is slowly being discovered & put to use in everyday applications. Additionally, initiatives such as Smart Cities Council India’s ‘Smart Urbanation 2018’ convention & expo on March 22-23, 2018 in Hyderabad, will also contribute to educating administration officials from India’s smart cities on the subject. IoT technology stretches to all sorts of appliances from household objects to industrial ones, with new applications being developed every day. In India, these advances are taking shape very rapidly, with Deloitte projecting that by 2020, there will be 1.9 billion IoT units in the country & that the market value of this sector will hit $9 billion. With the strong focus on smart cities now, tier 2 & 3 cities are also in line ||www.constructionmirror.com||

to implement IoT at a faster rate than other countries. While currently, these projections may be limited to smaller household objects & appliances, I project that by 2025 it will extend to full industrial use, & for applications like smart waste management & smart homes. There are a few barriers that would impede the deployment of an automated energy management system in India. Apart from the widespread ‘kundi’ connections which would take a huge amount of investment to take down, there are other challenges to this problem. An automated energy management system would result in an increased load on the electric grid, & the ever-changing weather in India would also increase its unpredictability due to changes in cloud cover & wind speed, complicating the scheduling of power generation. Furthermore, in the presence of a large number of sensors, enormous amount of data is generated. Data may have issues like missing values, corrupted values & inconsistencies. These can further complicate the process of energy management & also introduce other problems, such as privacy, which is already an unstable issue in the country. Even local heating & cooling systems commonly found in EU countries may be too expensive to implement in India. Some of the leaders of Smart City development worldwide are Hewlett Packard, IBM, & Cisco. In India itself, HPE has managed to provide the best features for managing cities effectively & in a cost-effective manner. Bhopal, Kakinada & Pune are just some of the cities that have been positively impacted by the work of these IT giants. Some cities now have an efficient provision for integrated & scalable solutions, as well as an optimum use of resources like sharable infrastructure. These companies have also brought Indian cities a single interface for the implementation of multiple solutions, integrated & scalable infrastructure solutions, & made it easier to execute, coordinate & monitor various projects. For example, in Pune the implementation of a CCC in public transportation has increased the modal sharing of public transport throughout

the city, increased convenience for citizens, & increased the control of bus movement, which helps Pune’s transportation provider to manage its own fleet & the operation of its running buses in the most effective manner. As per the power ministry’s strategy to implement solutions like smart meters & smart home energy management, it predicts that such technologies would become commonplace in India only by 2027. The plan is to install ‘advanced metering infrastructure’ in phases, with those consuming 500kWh or more by 2018, those consuming over 200 units by 2020 & then 2027 countrywide. This is due to such smart solutions needing good data connectivity not only in large cities as well as in remote & rural areas. India is still in the process of distributing good data connectivity, making the power ministry’s predictions logical. Furthermore, there are more challenges that impede smart energy management solutions in India. These include the need to setup a communication between the technology & control centre which is proven to be a difficulty due to connectivity problems in the country, as well as the intense personnel training required to manage such a large operation. City-wide connectivity allows much more room for a single security vulnerability to wreak havoc on the residents & govt.s that have adopted smart cities technologies. As more cities adopt more Smart City technology to replace or upgrade existing infrastructure, the risks they carry will only grow & compound. Thus, there is a need to make smart technology cyber-safe. This means that developers in India need to work with one another in tandem, to make sure there are no lapses in online security. Smart cities can also implement predictive cybersecurity analytics, which would prevent data breaches & continuously find gaps in security infrastructure to improve them before they can be exploited by outside attackers. Responsible citizens who are trained to make smart lifestyle choices, keep their own data secure, & contribute to public awareness campaigns can also go a long way towards pre-empting major cyber security threats.

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ndustry Focus: Crane Industry

Crane Industry in India: A Closer Look Upon the Changing Dynamics 42

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ndian Customer

Indian Industrial cranes industry is definitely getting more & more customer oriented. The Indian customer is an ever evolving customer. From being exposed to shoddy equip. a decade back, today the Indian customer is the king with a choice of high quality equip. at his beck & call. Hence naturally, the demands of customers are also evolving. Initially, the customer used to have a single line focus of only the pricing aspect without bothering a lot about the technical comparisons between different offerings. However, now, the customer takes pains to go through the complete technical specifications & ensures that the end product encompasses all the functional aspects as well as other aspects like reliability, safety, ease of maintenance, etc. In todayâ&#x20AC;&#x2122;s infra. projects timelines are sacrosanct & delivery & commissioning schedules are closely monitored by the customer. Another remarkable trend in this sector

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is that with several international tie-ups happening, the industry has started to have considerable global influence in terms of quality & use of better tech.. The industry is definitely getting more & more customer oriented. Apart from the competition & the plethora of products available in the market, there has also been a shift in the mindsets of consumers as well as manufacturers towards the overall aspect of customer service. As a result customers expect good & timely service by default & manufacturers have to put enabling structures in place to ensure that their customers have no cause for complain. Talking of availability of high-end solutions, Indian materials handling equip. sector is at par with global industry when it comes to the field of industrial cranes. Today, latest & best tech. is available in India & Indian industrialists are embracing these products with open arms. Price & cost efficiency is definitely imp. but the competitive advantage of cranes

lies in technological superiority. India is following international trend of consolidation in industry; most Indian manufacturers are associating with international majors on tech front. For international firms looking to enter the Indian market, the time is right with investments soaring up in each of construction segments. Foreign investors can enter domestic market by setting up marketing CoS. This allows them to establish a brand & also, at a later stage, to establish their own manufacturing units. Players with technological know-how can succeed, as tech. is the major entry barrier. A foreign investor/ manufacturer could have a JV with an Indian partner through tech. transfer. Any product that has better installed tech. has greater demand compared to its competition. Potential customers have to be made aware of tech. advancements. A foreign investor could also associate with an Indian manufacturer whose processes are good

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ndustry Focus: Crane Industry by providing monetary support to establish more manufacturing units. A foreign player can also help Indian manufacturers in providing after sales services. It has been noticed that revenues earned by international players through services are high when compared to Indian players.

Simplifying heights

Cranes, the machines which were once utilized to lift materials have today evolved as a lifeline of most construction projects. Space constraints owing to a exploding population have dictated a vertical growth path for construction activities in India. This has made cranes a vital element in project execution especially in high rise structures which are req. to be constructed because of limited land availability. Rapid pace of urbanization, development of industrial clusters, central business districts, SEZs are other factors that have attracted need for high capacity lifting machineries like cranes. Growing complexities of project execution has led to the need for cranes of different size, heights, load bearing capacities, equipped with advanced technologies.

Performance

Indian crane industry comprises pick & carry cranes, crawler cranes, tower cranes, slew cranes & industrial cranes. While growth for industrial cranes is driven by infra. & construction projects, the expanding real estate segment escalate growth for tower crane business. As per market analysis industrial cranes market today amount to approximately Rs. 2,200 -2,500 Cr. per annum. As per a recent study by IPOS Consulting about 75-80% of total material handling segment is occupied by 5-6 tonne tower crane segment. While Telcon is sole player in Indian crawler crane segment, tower crane segment includes majors like Manitowoc, ACE, Escorts & Zoomlion-ElectroMech. Thanks to sprouting opportunities, Indian crane market which witnessed pinch of economic slowdown & slump in execution of numerous construction projects; has now expanded to include even MNCs. The calendar year started off on a very tepid note with a general feeling of despondency in industry. There is a slow but definite change in the investment scenario. Projects which were initially shelved were now being dusted off & discussions have commenced. A good resurgence is observed in overall sentiment of manufacturing industry on

whole & order finalizations have started happening. Admittedly with Smart Cities, Housing for All & infra-focused growth being the buzz word across India, players involved in crane manufacturing segment are positive about business prospects, expecting the sector to gradually grow in 2018. The govt. is very optimistic about infra. projects & that is a positive sign for the industry. Tower crane business is witnessing a gradual but steady growth in the India. The segment which is slowly gaining popularity, as opposed to the decline in developed markets, is expected to drive the construction boom in the countryâ&#x20AC;&#x2122;s realty sector. Crane major ElectroMech estimates annual growth of 20-25% in this segment as tower blocks are becoming more common even in the tier 2 cities. Such is the potential of tower crane business.

Region wise demand

A region-wise demand analysis by shows Western India as the leading market for cranes, it hogs 50-55% of market share, followed by southern region with 20-22%, north with 15-20% & east with only 5-10% of total demand inflow for cranes in India. Mumbai is the main source of demand for tower cranes thanks to its largely vertical development; city occupies 70-80% share.

Rental push

While opportunities in infra. & construction sectors attract global & national players into the crane manufacturing business; rentals offer a viable option for developers & contractors to use cranes without complexity of managing a fleet of cranes. According to IBEF, rental market accounts for 30-40% of total sale of cranes in India. However there has no major demand from the industrial cranes sector. Players are optimistic of increase in business with rising project specific requirements. Meanwhile, rental market for flourishing tower crane segment in India is also still at its nascent stage. Revenue from tower crane rentals will account for 15% of total revenue generated by the tower crane industry in the next 5 years.

Towering challenges

Despite increasing opportunities & growing participation of multinationals, crane manufacturing industry is still crowded with a large no. of unorganised players; particularly in industrial cranes segment.

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ndustry Focus: Crane Industry

A major reason for this plight is lack of effective safety regulations imposed by govt. As per IPOS study, only 40% of total market is dominated by a handful of reputed names in organised sector while remainder is owned by small crane manufacturers. Crane manufacturing industry has demanded standardization of safety features in the equip. being produced by the industry as a part of objective of brining a measure of discipline to the sector. However, with a infra. focused govt. now in power & programs like Make in India & GST being the talk-point for decision makers, crane equip. & allied services industry looks forth as promising.

Expanding crane market is an attractive yet challenging prospect

Manufacturers from outside India are making forays into a market traditionally dominated by a particular type of pick & carry crane. Times are changing & opportunity is rife. Although it will be some time before the pick & carry crane is eclipsed as the most common type in India, the market is moving slowly towards models found in foreign markets. There is an increasing req. for a broader range of higher lifting capacity, quality products, with long life expectancy & comprehensive after sales service. According to Off Highway Research, a majority of cranes sold in India have been the pick & carry type, produced by domestic manufacturers including Escorts & ACE. JCB, which manufactures the Liftall range of pick & carry in India, says the crane type is the third highest selling price of construction equip. behind backhoes & excavators, & the figure is growing, along with the cranes capacity. With increased investments in infra. projects & entry of global players in construction & project execution, safety norms are now of utmost importance & becoming more & more stringent. As a result the market is moving towards larger capacity cranes within pick & carry segment - from 8-10 tonne class to 12-15 tonne - as these offer more stability in material handling. Customers are now looking for safe load indicators for increased safety. There is also a trend towards articulated cranes in the Indian market. The Co. now offers Liftall 1253 three part boom & Liftall 1202 two part boom to the Indian market. In India there are varied customer types, in terms of application, features required by them in machines & their business size. Products available in market are tailor made for a particular customer base. Cost sensitive customers may prefer low cost equip., without many features that have to

do with safety & long term quality. Major challenge for players is to educate customers on imp. of quality & safety.

Internal view

When it comes to other types of mobile cranes in India, there has been a marked increase in interest but a Sig. drop in rental rates over the last couple of years, partly due to intense competition & the large quantity of machines flooding the market. There are too many people with crawler cranes & the rates have come down substantially. The situation is partly caused, by the no. of cranes imported from neighboring China, thanks to their continually expanding ranges. Customers are now demanding free transport & delivery but he sees a positive outcome. Market is strong & there has been tremendous growth in the population of cranes in the last few years. Although this has led to an increased supply & a drop in prices it has allowed newer clients access to cranes for their projects. Now, a client who would not use a large machine in the past due to price constraints is using such machines to improve their cycle time. These recent circumstances are likely to become a long term trend. Overall, there will be more competition due to the flooding of market from older cranes from all over the world. There will be a marked difference between operatorsâ&#x20AC;&#x2122; execution style with premium clients sticking with suppliers who maintain the machines & also provide engineering back up. ABGâ&#x20AC;&#x2122;s new Indian crawler crane manufacturing wing demonstrates this new demand with its full parts & after sales service provision. Six 80 tonne capacity model 1080 crawlers have been produced & put into operation, & another five are on order. Once they have been completed the factory will also focus on a 160 tonner, the model 1160. A prototype is in production & testing will begin by April 2011. The company will then set its sights on another increasingly popular capacity range in the country with the 35 tonne capacity 1035. The ABG facility can manufacture crawlers up to 250 tonnes capacity, although no cranes above 160 tonnes are planned for now. The plant is producing two cranes a month & this will increase to five per month in 2011. ABG, however, has no interest in increasing its market share. There are already many manufacturers from China & Japan; we are just making a very good product at a very competitive price.

Increasing imports

One such Chinese company is Zoomlion,

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ndustry Focus: Crane Industry

which views India as its most imp. market. It has struck a deal with Indian crane & construction equip. manufacturer Escorts to distribute its truck cranes in the country. “With Escorts’ network across India, we will promote our products all over the country. We are also looking for co-operation with some local or international consultative groups to tap the market,” explains a Zoomlion spokesperson. The most popular truck cranes, says Zoomlion, are the 30, 50 & 70 tonne capacity models. As far as crawlers concerned the company claims to have sold 100 units of 70 tonne capacity QUY70. Other popular models are in the 100 to 260 tonne ranges, similar to other manufacturers’ target market. Zoomlion’s largest crane sold outside China, the 600 tonne capacity QUY600 crawler, was also sold to an Indian customer. The manufacturer says it is in tune with demands for high quality products at relatively competitive prices, with good after sales service. The Indian market has plenty of capacity to accommodate domestic & overseas suppliers. & the end users will be happy to have so many choices on open market. Japanese manufacturers are also seeing opportunities in India. Tadano believes the only way to compete with domestic CoS is to manufacture inside the country. Few crane users in India purchase imported products. We are mainly concentrating on sales of rough terrain cranes with over 50 tonnes capacity, which does not compete with the local manufacturers. The company is looking at ways to increase sales. We should do something in order to reinforce the presence of our brand & we are considering every possible option - as long as we only rely on imported machines, it is difficult to compete. We believe the Indian market will keep on growing in the medium to long term - taking further action is needed.

On move

Fellow Japanese crane manufacturer Kobelco Cranes has already made the move. Its parent company Kobe Steel will invest Yen 1.2 billion / Rupee 600

million (US$13 million) to construct a crawler crane plant, scheduled to begin production in October 2011. Kobelco Cranes India Pvt. Ltd. (KCI), will have about 70 employees. Kobelco says the Indian market for crawler cranes, which reached about 200 units in 2009, will grow to 700 units in the next five years on back of strong infra. investment. The Indian plant is Kobelco’s first overseas production facility & it will be the world’s first major foreign mobile crane manufacturer to build crawlers in India. Again, the capacity range will be 60 to 250 tonnes. The most popular Kobelco crane in the Indian market is its 250 tonne capacity CKE 2500 crawler, followed by the 135 tonne capacity CKE1350. “For smaller sizes below 100 tonnes, the market is very competitive in price so we are not focusing in this range. The new plant will be sited next to sister company Kobelco Construction Machinery’s excavator factory to take advantage of shared resources. From the beginning of October Kobelco also changed its representative office in Delhi to a separate sales & service company.

Different view

The allure of promised growth is not enticing all manufactures to set up factories in India, however. Liebherr counts itself one of them. “We do not intend to set up manufacturing facilities for mobile & crawler cranes in India. We have a target to manufacture at the highest quality level, with the latest steel or other materials, using state-of-the-art production facilities, under the responsibility of highly skilled people,” explains Wolfgang Beringer, at Liebher-Werk Ehingen in Germany. To this end, the company says it will continue to develop its brand at the recently extended German factory & offer its products to the world market from there. For Terex Cranes, a presence in India, with its sales & service centre, plus a spare parts facility in Pune, is vital, but there are no immediate signs of a move into manufacturing. India still tends to be a niche market for a wide variety of cranes products. However, in view of increasing no. of govt.-supported infra. projects currently underway, the

future trend looks very positive. The biggest demand is for mobile cranes, particularly crawlers in the 600 to 1,000 tonne capacity range, as well as 20-64 tonne capacity tower cranes. Building a strong team to support our product offering on Indian market is a priority, offering the distinct advantages of a global corporation capable of delivering fast, efficient results on a local level.

High end provision

We are seeing a lot of customers, especially those who purchase new cranes, put a lot of effort into their equip. purchases. It is no longer just about price. Many customers want to know about the lifecycle cost, fuel economy, and ease of maintenance, customer support & a host of other factors. The company was the first western manufacturer to set up fabrication facilities in India with its tower crane factory in Pune. It also has a dealership arrangement through TIL in Kolkata, Delhi, Chennai & Hyderabad, for its Grove & Manitowoc products. “In terms of customers in India, they generally like cranes that are easy to operate. In more rural areas, the demand is for cranes that are easy to maintain. Rough terrain mobile cranes from Grove are very popular in India, [they are] very straightforward to own & operate. The Potain MCi 85 tower crane was designed for markets like India. It includes a single-tie jib which can be assembled on ground & lifted in a single piece. The mast sections are pin-connected for safe & quick erection while other components are designed for lightweight handling or removal, explains Joshi. In terms of size, India is still relatively small but the key is that it is growing & the outlook for the next 10 to 15 years in this country is very strong. Being first here has allowed us to create a market-leading crane sales network. Apart from full Crane Care support the company also provides training centres in India & supplies training staff direct to CoS if they prefer. Zoomlion’s spokesperson sums up the mood concerning India. It is a very imp. market, not only for us, but for all world manufacturers. The increasing & rapid development of economy in India in recent years is

amazing & we believe the growth will continue for years.

Off Highway Research report

India & China are the only two major economies still growing rapidly, at a time when the majority of developed markets are struggling to come out of recession, according to Off Highway Research. Nevertheless, the Indian economy passed through difficult times in the fiscal year ending 31 March 2009. The global economic crisis brought real GDP growth down to 6.7%, compared to an average of more than 9% in the preceding three years. Estimates for the last fiscal year show a rebound with GDP growth put at 7.2%. The first challenge for the Indian govt. is to get back to 9% GDP growth, & then push on to sustain growth above 10%. India, which Off-Highway Research says, increased its share of global construction equip. sales from 3% to 5% between 2005 & 2009. Despite the decline in 2008 & 2009 India will account for at least 7% of world demand in the next five years. The market will be dominated by the following six products, continues Off Highway Research: backhoe loaders, crawler excavators, mobile cranes, compaction equip., wheeled loaders & mobile compressors. Together these are forecast to account for 93% of Indian construction equip. market by 2014.

From recovery to growth

The heavy-duty mobile cranes market has come out of a sluggish performance in the past few years & is moving towards growth, thanks to the momentum in manufacturing & infra. segments. The construction market in India is the second largest in Asia-Pacific Countries (APAC) region & is expected to become the fastest growing market in the region by 2025. Many heavy construction projects in power, flyovers & bridges, metro projects & industrial projects have raised the demand for heavy-duty mobile cranes in the recent past. The demand for mobile cranes is expected to grow, especially higher tonnage cranes used in several application segments. The current market size of hydraulic mobile cranes, leaving pick-and-carry cranes is about 200 cranes, which includes market of ||www.constructionmirror.com||

all terrain cranes of about 35 cranes. The market for all types of crane is looking quite optimistic due to metro projects, road construction & also wind mill industry. The market is improving a lot & the future is looking bright. There are many opportunities coming up for all manufacturers. The growth of mobile crane market has been quite sluggish in the last few years, especially the high capacity cranes being the most affected. The decline of depreciation allowance for wind energy & the slow progress of thermal power projects have also adversely impacted this sector. However, with adequate govt. emphasis on core sectors such as power, cement & steel & renewed focus on manufacturing & development of road networks, the market for mobile cranes is expected to grow Sig.ly. Furthermore, the govt.â&#x20AC;&#x2122;s plans to bridge the massive infra. deficit in the country will far outweigh all other unfavorable factors. With the govt. removing all bottlenecks to speedy project approval & execution, construction equip. manufacturers are certainly optimistic about the future. From a rental market perspective, the market is improving as a lot of mobile cranes are being imported these days, especially used cranes. There are many Chinese cranes also in the 50-100 tonne range. Used cranes being imported are of above 100 tonne. Crane buying scenario was good till March this year. The wind power sector is slightly down in demand. Also, with the onset of monsoon, there is a dip in buying cranes. By September, the market will bounce back. However, other infra. projects such as roads, railway projects & metro projects have provided good demand for cranes. Given ever-changing market situation in India & in absence of reliable statistics in public domain, it is hard to determine the exact market size. However, a ballpark figure of (tyre-mounted) hydraulic mobile cranes market at about 1,500 cranes & Rs 1,200 Cr. rental revenue per annum, excluding pick-and-carry cranes is observed. The current market scenario is not good in short term, but remains positive in the long run. A short-term negative outlook is mainly due to two factors: one, the Reliance J3 project at Jamnagar

is nearing completion, resulting in de-hiring of hundreds of cranes; & two, a sudden drop in demand from wind power sector because of a sharp reduction in power tariff. However, it is believed that this is a temporary phase & the market is expected to bounce back by end of year.

Demand drivers

Refinery expansions & renewable energy sector drive demand for mobile cranes, while at present, the most promising are Metro & road projects. Wind mill erection sector, which was looking most lucrative few months back has gone tumbling down due to power tariff going down to Rs 3.46 per unit from the existing rates of above Rs 5. This is demanding reduction in manufacturing cost as well as erection cost. Power plant sector is almost silent now & no notable movement in nuclear power sector also. Bhatia hails the govt. initiatives in infra. & construction segments for driving the demand of mobile cranes. With the govt.â&#x20AC;&#x2122;s focus on infra., the crane business is showing gradual signs of improvement. The sentiment seems to be changing from recovery to growth. Energy has been the primary market driver, supported by infra., mining & construction sectors getting back onir feet. The potential exists for a radical change in the material handling & lifting industry. Large scale capacity additions in nuclear, thermal, wind power, refinery & other industrial projects in the country have led to a growing demand for cranes. Gala sees more demand coming from roads & highways, bridges, railways & metro projects. Our cranes are already working at railway projects for bridge erection & such operations. Also, we have demand for cranes from refineries. Infra. & wind energy are expected to drive the demand growth of cranes in the coming years. He elaborates, India is a massive country with tremendous scope for infra. development. Also, we still have many states suffering from power shortage. The govt. is focusing on rapid infra. development with an ambitious investment target of about $ 375 billion in the next three years & about $ 450 billion in the next five

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years. Also, the govt. is encouraging investments in renewable energy where wind energy is one of key drivers. India has set a target of 60 GW wind power by 2022 against the current installed capacity of about 32 GW.W

Rental market

Rentals play a major role in the mobile cranes market. However the market is largely fragmented, barring a few big players. Major share of rental market comprises used cranes while brand new cranes are very few. However, the trend is slowly changing as many contractors involved in big ticket projects now prefer new cranes with advanced features. Some of leading rental players is seen buying brand new cranes. Shree Dinesh Crane Services recently bought a new 600 t Sany SAC6000 all-terrain crane which is currently at a refinery construction site in Gujarat. JNK Lifters has bought cranes from Liebherr & Kobelco. A large proportion of our customers operate exclusively in the rental market, & the fact that they are requesting newer cranes reflects the buoyant market.’ However, the demand from rental market will be more for used cranes. Demand for new cranes is not expected in large no.s. Bhatia sees an excess supply of units as opposed to repressed utilization, in turn leading to falling hiring rates - despite wages, operation & maintenance costs, fuel costs, & bank interest rates for procuring new or used equip. remaining the same. However, he is optimistic about the rental market, as with the govt.’s continued emphasis on infra. the demand for cranes has now begun to improve. We can see a lot of new players entering the market as many customers have started asking for newer cranes with longer service lives & lower energy consumption, as opposed to 7-10 year-old vintage cranes acquired by way of auctions & imports. That is quite encouraging for crane manufacturers because apart from the obvious safety issues that these old cranes present, they are also one of major hurdles to the introduction of new models by domestic crane manufacturers, with upgraded tech. & increased productivity. Demand from rental market has continuously grown over past years & more or less, a similar trend is expected in future also. Gala feels that despite the rental rates are a little

low, due to demand from infra. projects, the overall rental market is good.

Product innovations

Product development & innovation has been key in any equip. segment to meet the emerging requirements of user industry. Manitowoc has a major presence in the 300 t segment as Naithani elaborates, We’re doing well in the 300 t segment. Here, we have the GMK6300L, which has a main boom length of 80 m & a maximum tip height of 120 m. Its total gross vehicle weight is 72,000 kg. Notable features include a sevensection full-power MEGAFORM™ boom with TWIN-LOCK™ pinning, a MEGATRAK™ suspension system with independent hydro-pneumatic suspension & hydraulic lockout on all wheels, & a Mercedes OM 502 LA eight-cylinder engine. He also expects demand for the GMK6400 to rise in the next few months. With a 400 t maximum capacity, the GMK6400 has a main boom length of 60 m & a maximum tip height of 137 m. Its total gross vehicle weight is 72,000 kg. The crane features innovations such as a removable outrigger box, a self-rigging auxiliary hoist, & a similarly self-rigging MegaWingLift™ attachment which increases an already impressive capacity by near 70% in certain configurations. We have equipped most of our mobile cranes with VarioBase, which allows cranes to operate in congested area by extending outriggers partially & utilizing crane capacity in each direction as per extension of each outrigger. Also in few cranes, we have VarioBallast where increase of ballast radius is possible to use full capacity of crane & also to reduce tail radius in restricted sites. We have a software to control the working area so that collision with surrounding structures can be avoided. Our new model LTM 1450-8.1 is having a big demand & order booking is over 100 units even before first crane is supplied in the market. This crane can travel with 85 m telescopic boom maintaining 12 tonne axle load & also has both VarioBallast & VarioBase. This is an ideal crane for taxi job. TIL has been a pioneer in providing high tech. material handling & lifting solutions for many decades. The company sets the industry standards for quality, durability & value, offering the most comprehensive range of hydraulic mobile cranes manufactured by

its state-of-the-art plants in Kolkata & Kharagpur in West Bengal. This includes a 15t PnC crane, industrial cranes of up to 20t, rough terrain cranes from 20t to 75t & truck-mounted cranes from 20t to 80t. Rough terrain cranes are provided with features such as all-wheel steering, all-wheel drive, earthmover tyres, torque converter transmission, multi-speed forward & reverse gears, good gradient capability, etc, which make them exceptionally manoeuvrable in slushy & unmade construction sites. These cranes can drive from the super cab which allows for great positioning & generally will permit a smaller capacity crane to get into the jobsite & do a lift that normally a larger crane would have to do from a greater distance, i.e. high maneuverability & versatility with reduced turning radius. The rough terrain crane is used for building bridges, operations in power & chemical plants & refineries & for large-scale construction projects. Truck cranes on other hand are characterized by high speed for greater inter-site mobility. Drive configurations are like a commercial vehicle - 4x2, 6x2, 6x4, 8x4 etc., depending on requirement. Wheels & tyres are also like a commercial vehicle. Large wheelbase & better suspension offer limited off-road mobility. Large decks can accommodate a greater no. of people. These cranes are popular with the hiring segment. TIL has recently launched longer booms in its range of truck cranes for maximum reach & optimum lifting performance, with U-shaped cross sections providing for a natural cradling position for the boom sections. Major rental players are also gradually innovating their fleet with the induction of new cranes. In the past six years, almost all our expansions have been in brand new cranes. Our fleet consists of multiple units of latest models of German make Liebherr cranes in the heavy capacity category, whereas majority of smaller capacity units up to 100 tonne are brand new cranes from Sany, China. Application wise, it can be said that, with our current fleet, we are able to cater to almost 90% of market needs, i.e., we are able to cater to all our target sectors, viz. infra., wind (turbines up to 3 MW capacity), thermal ||www.constructionmirror.com||

power, refinery & petrochemicals, oil & gas, metals & minerals etc. JNK Lifters has about 25 cranes of up to 300 tonne in its fleet. Telescopic cranes range from 30 to 300 tonne, while crawler cranes range is up to 260 tonne. We bought a Liebherr LTM 1250-5.1 mobile crane at the bauma India 2016,â&#x20AC;&#x2122; informs Gala.

Safety imperative

Safety is foremost imp. factor, especially in the operations of heavy duty mobile cranes. Though, there are no clear safety guidelines in place from the govt. or other agencies, as per the industry sources. The only statutory obligation is to inspect/load test the crane once in a year. However most of customers nowadays have their own guidelines specific to their projects, standards & procedures. One of major risks which is often overlooked by many users is condition of ground/sub-soil on which the cranes are positioned. If the ground is not developed enough to sustain the pressure exerted by crane (the pressure can be calculated for each load case), it runs a risk of ground failure which can cause the crane to topple. Another major area of concern is wind velocity. Though each crane is fitted with anemometer, which measures the wind speed & displays for the operator, this is always real time & not predictive. So, in case of sudden gusty winds, it is possible that operator may not get sufficient time to stop & wind up. Apart from above, the cranes are safe as long as safety guidelines are followed & safety devices are not bypassed. With regard to safety features, cranes have really evolved a lot. The modern cranes come with a host of safety features which are able to prevent incidents of overload, overhoist & avoid many unsafe acts. Safe Load Indicator or Load Moment Indicator on cranes is a fully integrated device which not only measures, records, & displays all imp. working parameters, but also alarms & then cuts off operation whenever the parameters cross safe working limits. New machines come with safety features inbuilt & the machines are far more efficient compared to old used machines. In the older machines, we put external safety features such as

SLI for safe operations. Our operators are experienced enough to handle safe operations of old cranes. If the ground is not developed enough to sustain the pressure exerted by crane, it runs a risk of ground failure which can cause the crane to topple. In case of sudden gusty winds, it is possible that operator may not get sufficient time to stop & wind up.

Emission compliance & new technologies Environment regulations are becoming stringent with the govt. focusing more on bringing in latest emission norms. It is imp. to comply with these norms. Emission compliance is especially imp. Customers in India have been asking for Tier-IV engines, so we can see that thereâ&#x20AC;&#x2122;s an increasing demand for cleaner tech. This is in line with the movement within India towards the use of cleaner fuel that produces less pollution, & we are beginning to see the fruits of increasing awareness among customers. Role of tech. is very imp., however, in India we are still quite relaxed on emission norms of such equip., safety points, manufacturing standards etc. Awareness in market aspects need to be increased. Tech. is already at the advanced level for cranes. There will always be scope for small innovations but donâ&#x20AC;&#x2122;t expect a phenomenal change in tech. in cranes. One can expect improvements like Vario Base, Vario Superlift tray, counterweights or more real time & elaborate data recording & analytical electronic gadgets as far as technological advancements are concerned, but not something which can drastically change the way cranes are today. On emission compliance, Emission standards of course are on improving path. As of now, cranes & construction equip. comply with BS-III. If not wrong, Supreme Court has exempted the construction vehicles from complying with the migration order from BS-III to BS-IV, however it could be only for time being.

New opportunities

There is always req. for new products & technologies with emergence of bigger projects & stricter time lines to complete projects. The trend is changing from cost towards quality.

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With changing attitude of using more & more sophisticated equip. to achieve international quality, Metro projects & road projects are using mobile cranes for lifting & placement of girders. We have introduced in Indian market use of crawler crane with telescopic boom for such jobs where crane can travel with load & also uses Teflon pads on crawler to avoid damage of roads. Due to its quality to travel with load, it can work at lower radius & do the work of a much higher capacity normal mobile crane which can lift load only on outriggers. The first crane of such type is working at Nagpur in Metro project owned by NCC, Hyderabad. There is nothing new for mobile cranes as far as application is concerned. Depending on market situation, the sector-specific deployment varies, however, the hydraulic mobile cranes are considered useful in all sectors which have lifting needs. Going further, there will be new opportunities in infra. sector (road, metro, ports etc). Other areas could be defense sector which is expected to be receiving sizeable investments & shut down jobs in existing process units.

Challenges

While the Indian market provides a plethora of opportunities to crane manufacturers, the challenges in this sector cannot be overlooked. Challenges are faced by manufacturers while undertaking business development in making the users understand the application and utility of the machinery. India is a highly pricesensitive & price-driven market. What that means is that customers are always demanding more features & benefits

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in a price-competitive package. For manufacturers, the challenge then is to find ways to deliver onsite demands while maintaining business profitability. Also, within industry, there is a demand for efficient after-sales support. CoS which can meet this expectation would definitely benefit in the long term. Import of used cranes of quite old age & in poor condition is a major challenge. There should be some method to certify condition of cranes each year & also to check actual date of manufacturing. The end-users have to be careful in selecting quality products. Unrestricted import of used cranes is a major challenge facing the industry today. We come across old vintage hybrid-make cranes, which would often result in unfortunate accidents & cause untold hardships to the end-users. In these cases, the importer has no knowledge of history of equip. as these are picked up through auctions or used crane marts. Such products are a reason for frequent accidents resulting in the loss of operators, property & delay in project schedules. These unwanted imports retard technological upgradation, increase energy consumption & also pose a serious threat to safety. Import of such equip. must either be restricted by govt. mandate, or at least subjected to an OEM certification prior to shipment. Transportation has become a major challenge. Transportation of heavy cranes from one state to another has always been the biggest challenge for crane rental industry. One aspect was quality of available infra. whereas the other was difficulty in crossing state boarders. The infra. is improving over a period of time, however, it will take a lot of time to be on par with international

standards. The other issue of interstate transfers is expected to be largely resolved through GST. Lack of trained operators is another challenge. One of other challenges is availability of trained & certified operators to operate the cranes. There is no dearth of talent in India, but unfortunately there are no training schools in India which can train, test & certify operators. Some industry professionals are working on this & hope to overcome this challenge in future. If we leave aside 4-5 organised players, crane rental industry largely remains unorganised with a large no. of players operating small fleets. One of major challenges is to unite them, not to form a union but to work on a common agenda with an objective of taking rental industry to a recognized level & in common good interest. Crane Owners Association of India is working on this, but has a long way to go. Major players are always concerned about market presence with products having right tech. & solutions that can fulfill customer reqâ&#x20AC;&#x2122;s. Innovation & tech. are key differentiators. Customers are always looking for cranes with innovative tech. that deliver ever-greater levels of efficiency, safety, reliability & durability. With many large size projects in the pipeline, the demand for heavy-duty mobile cranes will go up in future. At the same time, some of ongoing projects are getting completed soon & de-servicing of cranes will create some imbalance in the demand-supply scenario in future. Considering these trends, the growth of heavy-duty mobile crane market will depend on fast take off & execution of projects.

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CONSTRUCTION MIR ROR

INTERVIEW

Ms. Karen Ravindranath Program Head WebNMS IOT

WebNMS is poised to bring its innovation and domain expertise in IOT to bring to the table a unified and cost effective Fleet Management Solution. Partnerships in hardware and value added resellers are a focus to reach out to the larger market.

Q. When was WebNMS founded? What

data movement between systems, helping the organizations derive better value from their Fleet Management Data.

milestones have WebNMS reached since?

WebNMS started its journey from 1996 and was the founding product of Zoho Corporation, providing OEM solutions to telecom industry. After doing extensive work in the telecom industry for close to 16 years, we announced the launch of Internet of Things platform for enterprises with solutions like Cell Tower monitoring, fleet management, Smart cities, and Energy management. Since then there is no looking back for us.

Which types of solutions do you specialize in and which industry sectors do you work?

Though WebNMS IoT platform is a highly customizable and scalable platform, our main focus is on Fleet/Logistics management, Remote site/asset management, Energy Management, and Smart cities. We have developed best-in class IoT solutions under each category which is built over our proprietary IoT platform.

Q. What is different about WebNMS’ IOT solutions to streamline Fleet Tracking and Mobility compared to others?

Yes, there are various pure tracking as well as mobility solutions, WebNMS Fleet Management Solution is unique in various ways: • WebNMS Fleet Management Solution is a comprehensive IOT enabled solution which does not only track, but in addition does vehicle driver management, workload planning and management, safety management, OBD data monitoring, etc. This provides our customers a comprehensive suite of Fleet Management capabilities in a single solution. • It is also vendor neutral in use of hardware devices, offering customers freedom from lock-in to a hardware vendor. • In most organizations there is a need for data from Fleet Management systems to flow into their other enterprise software, whether it is ERP or SAP or order dispatching or any other billing solution. WebNMS Fleet Management Solution offers a rich set of APIs which encourages

• Business processes and workflows of various customers are inherently different. So customizing/tweaking the solution a bit for each customer’s specific need is also very important which is not possible in most of the off-the-shelf products. Our WebNMS Fleet Management Solution is built over a very flexible IOT Platform, which offers an edge to SIs or Value Added Reseller partners who can customize the solution to fit the customer’s requirement to a IOT.

Q. Are you tied to the manufacturers you have supplier partnerships with, or are you impartial, depending on the customer’s requirement?

Customer is king indeed. We have partnered with hardware manufacturers to help our customers get up and running fast with pre-integrated hardware from our partners. However, our solution is vendor neutral and can support any hardware which they have invested into earlier or have a preference to, ensuring our customers are free to go with the best according to their need.

What kinds of business, of what size, i.e numbers of operatives and devices or solutions, are you geared to help?

• Our solution is suitable for Logistics companies, Cold Chain supply, Pharma, e-Commerce, Retail, Passenger vehicles (Employee busses), etc. • SMBs or Logistics companies who are looking to bring end-to-end visibility into their logistics processes are our key customers. • Highly scalable solution which can cater to fleets of varied sizes from a few to hundreds of vehicles. • We partner with Value Added Resellers or SIs in Fleet Management and Logistics domain to cater to specialized industry verticals.

What experience have you had working with the cold chain, warehousing & logistics market? Do you have a

dedicated sales team to service this sector?

• Our Fleet Management Solution has been used by our esteemed c u sto m e rs fo r te m p e rat u re monitoring along with fleet telematics in cold chain logistics and pharmaceutical industry. • We have also catered to RFID based asset tracking in supply chain logistics customers enhancing asset safety, visibility and delivery assurance.

Could you explain The Role of Fleet Telematics for Cold Chain Logistics and Supply Chain efficiency? • IT has completely transformed the way business processes function by automating workflows and digitizing process data. Fleet telematics, closes the feedback loop from manufacturer/consigner ’s order book to customer delivery. • Fleet Telematics enables logistics providers to plan, live-track, troubleshoot, and quality-assure shipments painlessly. • Helps introduce transparency into a hitherto intangible process in the workflow • Quality, safety, timeliness is now qualifiable, enhancing efficiency and customer satisfaction.

How should people contact you with sales enquiries?

You can reach us at iot-eval@webnms.com for any sales enquiries. Our sales team will be happy to help you.

Q. Where do you see WebNMS going from here?

Our R&D team is working continuously to develop the most secured & efficient fleet management solution. We are adding new features to our existing fleet solutions with regards to fleet security, safety, analytics, etc. providing insights to the critical fleet operations. WebNMS is poised to bring its innovation and domain expertise in IOT to bring to the table a unified and cost effective Fleet Management Solution. Partnerships in hardware and value added resellers are a focus to reach out to the larger market.

pecial Theme: Wheel Loader

Demand Outlook and Notable Trends of Wheel Loader Market In India

heel loader market in India almost crashed to a third of the peak volume of sales it witnessed in 2010-11. Slowdown in economic activity across construction, mining, cement, trade, led to slowdown in demand for wheel loader. However, the demand prospect is looking good as sales have started showing signs of recovery & the industry is expected to bounce back to its peak volume of 2400 whereabouts & due to momentum there are prospects of industry volumes doubling from the levels it saw in 2010-11. The fundamentals are looking very bright for the wheel loader segment as all the end user industry has plans to nearly double the throughput, for instance, ports handling capacity is slated to exceed 3000 MTPA as against current 1700 MTPA, coal output is projected to touch 1 bn tonnes as against current 600 Mn tonnes, cement industry is expected to see 600 mn tonnes of output compared to 290 mn tonnes as on 2015-16. Seeing this renewed momentum driven by public spending in all the sectors that use wheel loaders for loading application, one can only say that good prospects for Wheel loader industry is surely round the corner.

pecial Theme: Wheel Loader

Loader benefits

Ever since the Union Budget, most players in the construction equip. industry are perceptibly relieved. Slew of construction & infra. projects announced, not to forget their size, is definitely going to see some action among manufacturers of construction equip. When a country’s infra. woes are as acute as India’s, it is generally accepted that it’s only a matter of time before the govt. wakes up to announce a slew of mammoth projects. For some time, the construction equip. industry has been lagging due to the lack of infra. projects. Most manufacturers are closely exploring possibilities of how the product integrates with the new demand transition which is also an equally challenging proposition. What the industry finds vexing is the shift in the customer profile. Many large corporate who were active in road & infra. segment purchased their own equip.. Over the last few years, most of these CoS have shifted to contracts & now prefer to have the contractors purchase the equip. on their behalf. This has given rise to a retail market, which in turn has led to the entry of new players. When the market bounces back, a large of it is expected to be in the used equip. market. This is because the dull market last couple of years have seen too many idle machines lying around. Simultaneously, more CoS have had the luxury of time to look into their products keenly & come up with

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innovations. Most manufacturers now have developed machines that reduce power while increasing its lifespan. The industry is optimistic about growth. India has a huge potential. A part of it is waiting to be tapped through innovation & indigenization of technologies while some part is stuck up in latent demand, which can be unleashed by effective governance & project execution by the govt. The truth is that there is a massive amount of work to be done in every sector, & this will call for large volumes of equip. How large those volumes will be dependent on key stake holders working in sync with each other. The govt., private players, financial institutions, environmental & social specialists need to work towards effectiveness in facilitating project execution & addressing the key impediments. Given the complex nature of projects & tight timelines, demand for technologically advanced & versatile construction equip. is on the rise. CoS are now looking for fuel efficient & innovative products which will help in speedy completion of tasks. Increasingly factors such as productivity, fuel efficiency, reliability, innovative safety features etc. are taking a lot of importance. Hope to see movement by the second half of this fiscal. However, a lot depends upon the implementation & monitoring of new initiatives/reforms. We can expect a turnaround in equip. demand only if project execution picks up. Moreover, to ensure long term

growth the govt. should focus on increasing investments & building up investors confidence. Govt. investments in infra. are sure to pick up to meet ambitious growth target that the nation has set for itself. With infra. investment set to go up demand for construction equip. especially versatile backhoe loaders will surely rise further. Market for the loader backhoe has registered a decline since 2010, but now the market holds steady & notch up double digit growth no.’s. The market structure has remained more or less unchanged for the past five years, but vast differences are noticeable while evaluating the performance of individual products. The share of the most popular product, backhoe loaders grew, while crawler excavators considered being the most imp. machine for infra. building, declined from 20% to 18% during the same period. The equip. uptime & fuel consumption are the major factors that customers consider while deciding on the machine. Time-bound projects need reliable machines & manufacturers are trying to innovate & adapt latest technologies. Case has recently introduced CASE EX Series of backhoe loaders with Fiat Power Technologies engines which are highly fuel efficient & reliable. They have a unique feature of a charge air cooler which increases the density of air entering the combustion chamber, resulting in extremely low fuel consumption. Indian earthmoving equip. has sig. evolved last few years. Most equip. is now even designed in India, largely because of the peculiarities ||www.constructionmirror.com||

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CONSTRUCTION MIR ROR

pecial Theme: Wheel Loader

of the domestic demand & applications. End-users in India put the machines through more rugged use as compared to any other developed country. So products have to be rugged & reliable. Itâ&#x20AC;&#x2122;s also imperative that spares & quick after-sales service form an integral part of dealers USP. Recognising the scope of the Indian market, several MNC vendors are shifting production to India as well. Foreign players looking to achieve a strong footing in the Indian market in the long term are cultivating India as a sourcing & manufacturing hub. Speaking about the excavator & the wheel loaders market in particular, is a tad doubtful. This is because the excavator market in India has witnessed a steep growth over the last few years. Recent years didnâ&#x20AC;&#x2122;t start off well either for the industry, because wheel loaders are used mainly for wagon filling, asphalt loading & block material handling. However, on the contrary, backhoe loaders are used for small trenches, laying pipes, clearing rubble & digging. Both the products are separate & have different applications. They cannot be compared as the application for them is incomparable. Thereâ&#x20AC;&#x2122;s a general consensus that loaders are largely used as a complementary product for material re-handling in construction & mining applications. Over the years, the market for wheel loader was majorly in unorganised rental business area & demand for them increased into mining activities due to the increase in the global demand for mining. Just like excavators, a comprehensive maintenance & service support would be critical for the success of the wheel loader business. The range of full-size backhoe loaders, with digging depths of 14 feet or more, provides buyers with a spread of machine capabilities & purchase prices that allow tailoring these machines to the users budget & typical job-site tasks. Models in the 15-foot class are grabbing market share globally where the added size, performance, & hydraulic capabilities of these models provide a suitable argument for replacing mid-sized excavators. The backhoe does less damage to the ground, is more maneuverable, easier to transport, & provides the lifting capacity of about a 7-ton excavator.

Terex backhoes perform faster while digging & loading at lower operating costs, with durability through quality & tech. innovation. Simply put, our machines owning & operating costs are the lowest. The powerful TLB 844S is designed for fastest digging & loading in the toughest strata. The reliable & efficient TLB 844S will confidently beat any competitor in a match of digging, loading or dozing while SmartUC hydraulics on this machine helps save diesel even while maximizing work output, he adds. In general, larger backhoe loaders, those with digging depths of 15 feet or more, provide expanded capabilities that appeal to a certain segment of the market. Larger backhoes are purchased by heavy construction & highway contractors who might choose them for greater dig depths, heavier lifting capability, or ability to handle larger tools such as hydraulic hammers. Users who need the versatility that the backhoe loader provides, but who also require front-bucket lifting power equivalent to that of a comparably sized wheel loader, might opt for larger backhoe loaders. These machines typically differ from their smaller counterparts by incorporating heavier structures & heavier axles, as well as more capable hydraulic systems. Generally, but not universally, larger backhoe loaders are equipped with variable-displacement, load-sensing, piston-type pumps in hydraulic systems, providing a higher level of hydraulic efficiency & fuel efficiency than gear-pump systems that might be used on smaller models. Some manufacturers, however, opt to use variable-displacement hydraulic systems on their complete range of models. For buyers investigating available backhoe loaders with an eye toward increased attachment use, features that should be considered include the availability of couplers (both front & rear), the availability of auxiliary hydraulics (both front & rear), & the availability of parallel lift for the front linkage to simplify fork operations. Some manufacturers offer tool-carrier versions that typically have a hydraulically activated coupler at the front & parallel lift linkage. The key to productivity when using powered attachments is to make sure the machines

auxiliary hydraulic flow is matched to the attachment & is capable of handling both single- & double-acting hydraulic cylinders. Investments will happen & some projects will get started & the industry could see a growth of around 10-12%. & further growth will happen only after 2017-18. Construction equip. business is cyclical. Business takes four to five years to pick up but this time it has been shorter. India has lots of supply but less demand. Backhoes are standing & there’s little for them to do. We do see a boom in the real estate sector happening soon. We do see an increase in demand for wheel loaders mainly coming from ports. The ports import coal & iron ore. Many CoS import coal & iron ore for use in steel plants. So demand for wheel loaders has gone up by about 5%, he adds. For manufacturers like Volvo whose core value is safety, the Co. constantly works at various levels of safety measures. In fact, the seat belts used today was created by Volvo several decades ago. In terms of wheel loaders, the Co. has 3 levels of safety measures. Operator safety is when it works on the cabin structure, seat belts, filter changes, hydraulic pressure checks, among other things where the operator need not jeopardize his life but conduct all service checks standing on the ground. Then there is the training provided for the operators on maintaining safety. The third part is the equip. safety wherein Volvo ensures in case of a part coming loose, it does not harm anyone. Indian wheel loader makers are also looking at fuel consumption. The Co. also offers features like broom suspension on wheel loaders. Broom suspension helps in softening the jumping effect faced by operators carrying load. When one moves the vehicle having a broom suspension, it will reverberate only on the buckets & doesn’t pass it on to the operator. Concern for operators is exhibited by manufacturers when they installed air-conditioning in most of the vehicles. However, viewed from the long-term prospective, existing brands with wide market base will continue to connect their names with product support, an initiative which they will ||www.constructionmirror.com||

now be making stronger than before for higher brand recall.

SDLG enjoys record wheel loader sales in India

SDLG sells three wheel loader models in India, with the LG958L in the five-tonne class being the most popular unit. Shandong Lingong Machinery Co. (SDLG) saw double-digit growth in its wheel loader sales in India last year, which contributed to making it another recordbreaking year for SDLG in the country. The Chinese brand has served the Indian market since 2008, & nine years into its operations in the market, the Co. has seen its sales volumes reach seven times those of its first year. Currently the Co. sells three wheel loader models in India, with the LG958L in the five-tonne class being the most popular unit & a perfect option for dockside applications, as well as mining & general loading duties. From SDLGs range of motor graders, the 16-tonne G9190 is a popular choice for Indian road building projects. Over the past several years, these machines have contributed to improved profitability for the owners, thanks to their low maintenance costs & fast return on investment. The future also looks bright, as Indias construction industry continues to target the govt.s ambitious goal of building 30km of new road a day, creating ongoing demand for quality road building equip.. SDLG machines have proven to be reliable & cost effective on road projects across India, said Sanu George, business head, SDLG India. The trust our road building customers have in us will most likely to transfer to other sectors. In future, we expect to see our machines used in quarries or other applications. To build on its strong momentum in India, SDLG unveiled two further machines last year, a three-tonne wheel loader, the L933, & a 12-tonne motor grader, the G9138. Both were introduced at bauma Conexpo India this past December & received with enthusiasm by customers. Equipped with a Weichai WP6G125E331 turbocharged engine designed together with Deutz, the L933 delivers 92 kW at 2,300 rpm & can manage a range of material handling tasks with ease. With an overall working weight of 10,200–

10,250 kg, the machine can deliver up to 96 kN of breakout & traction force, while its steep 45-degree dump angle & high 45-degree bucket rollback allows for more efficient load carrying & quicker cycle times. The G9138, meanwhile, is designed to satisfy the need for smaller & lighter equip. for narrower road constructions, as India boosts its national road network. With an overall working weight of 12,100 kg, the G9138 is powered by a Deutz BF4M1013-15T3R/2 engine that delivers 111 kW at 2100 rpm. Complemented by a ZF 6WG 158 transmission, the G9138 can reach maximum forward & backward speeds of 39 km/h & 24.5 km/h respectively. It can deliver up to 75.4 kN of traction force. With these two additions joining its range of proven & popular workhorses, SDLG is now well-set to enjoy another year of success in 2017. With a dealer network of 14 well-established partner CoS, the brand will continue to deliver on its commitment to provide first-class machines & service to its customers across India.

Infra. & mining sectors to surge the demand

Indian construction equip. market has been witnessing some interesting trends off late. These trends are mimicking what were earlier witnessed in developed nations. Gradual changes are more evident in the earthmoving equip. segment. While India has now become the largest market for backhoe loaders, there has been a definite surge in demand for crawler excavators in recent times. Similarly, wheel loaders too are finding an increasing number of takers. Versatility of wheel loaders has meant that they are catering both construction & mining industries. Increase in scale of projects has been one of the key factors behind the rise in demand for wheel loaders. With size of earthmoving projects getting bigger, thanks to increase in the no. of large scale infra. projects, wheel loaders are becoming the staple with contractors nowadays. Wheel loader market has been witnessing dramatic swings in recent times. According to industry estimates, lesser no. were sold due

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CONSTRUCTION MIR ROR

pecial Theme: Wheel Loader

to the slowdown in the economy & the subsequent lull in infra. projects. However, manufacturers are confident that this is one market segment that will bounce back soon, after the next govt. is established & infra. projects cleared. This along with the recent spurt in mining projects has meant that India continues to be a key wheel loader market globally. Positive market sentiments are evident from the slew of new wheel loader model launches by leading players in the recent past.

Challenges in the Market

Indian market always presented manufacturers with a unique challenge. Manufacturers had to bring in latest tech. & yet be price competitive here. In how best they maintain this delicate balance has dictated their market domination. Focus, apart from the tech., in recent times, has also been on after-market services too. Almost every leading name in the field is ramping up its offerings in order to garner their market share in an increasingly competitive wheel loader market. Good e.g. of a Co. that offers quality range of wheel loaders backed by excellent after-market services is SDLG. This leading Chinese construction equip. manufacturer has made rapid inroads into the Indian market in recent times. Despite the sluggish market trends of the recent times, the Co.’s top management is optimistic of demand picking up in the near future. Echoing these sentiments, quipped, Infra. development is something that cannot stop. Positive growth signs are also being witnessed in the mining sector. These factors will drive demand for wheel loaders in India in the near future. SDLG’s range includes machines in the range 7t-27t are known for their robust & reliable performance. Among its popular models is the 11 t LG936L, which features a single-lever hydraulic control system for ease of operation. The machine also features an advanced Deutz Tier-III engine which offers lower fuel consumption & reduced noise levels with superior power. Its LG938L model is designed for optimum breakout force to ensure a full bucket

load every cycle, improving productivity & efficiency. The machine’s long wheel base & high tipping load means that it stays stable even on rough terrain. The LG958L model features ZF powershift transmission, configured to allow four forward & three reverse settings, this single-lever control transmission makes the machine easy to operate. SDLG had recently launched the LG979 model, which is a 226kW wheel loader powered by the SDLG electronic injection Tier-III engine. The low-noise engine is perfectly matched to the loader’s HT200 transmission control system, which allows the operator to select the correct gear depending on the load, for optimum efficiency & power. Case India is one more leading player in fray which offers the F Series wheel loader models the 721 F & 821F. The Case F Series wheel loaders deliver best-in-class horsepower, massive torque for power, fast acceleration, stronger & faster hydraulics. These features together deliver superior productivity & performance with reduced fuel consumption. The F Series wheel loaders are fitted with FPT 6.7 litre engines. These engines are equipped with CRD (Common Rail Diesel) Injection system & EDC (Electronic Diesel Control system) systems. The F Series wheel loaders feature the Advanced Engine Tech., to meet the most demanding applications. Case four mode programmable power control - offering Economy, Standard, Auto & Max settings - provides operators with increased flexibility when matching the engine output for each task. Another highlight of the wheel loaders is the CoolingCube mechanism. The unique design of the Case wheel loaders cooling system, with the five radiators mounted to form a cube instead of overlapping ensures that each radiator receives fresh air, & that clean air enters from the sides & the top resulting in high efficiency for the system. This feature also improves machines stability & allows the loader to properly operate in all applications from stock piling to quarry. A lot of thought has also gone into designing the operator’s cab, which offers an unobstructed view to both edges of

the bucket or attachment, while a wide window & the sloping engine cover provide excellent visibility to the rear. LiuGong India is one more leading construction equip. manufacturer that offers popular wheel loader models such as the 836 BSIII & the 856 BSIII. Highlighting the key features of these machines, Rohit Punjabi, Asst. Director of the Co., points out, These two models (836BSIII & 856 BSIII) are known for their power ,reliability, comfort, control, easy on the job maintenance, low fuel consumption & compliance the latest norms in the market. The 836 BSIII model features the proven LiuGong transmission, & is equipped with fixed front differential for maximum traction & reduced tyre wear. Its smooth parallel linkage configuration offers a full 40-degree turn tipping load of 7200kg. The model is powered by a Weichai & Deutz engine & offers 92 kW rated power that produces 100 kN of breakout force to aggressively dig depths. The 856 BSIII offers a ROPS-FOPS cab, like other LiuGong wheel loaders. The machine also features advanced hydraulics that allow for a quick cycle time. Another big name player in fray is JCB India. The Co. which is the market leader in earthmoving equip. offers the 3DXL, 430ZX & 432ZX models. The 3DXL model features engine with increased size of coolers for better performance in hot & dusty working conditions. The 430ZX model comes with a payload of 3200 kgs & features a long life ZF multi-trac axles & ergo power transmission from Germany for higher speed & lower cost of maintenance. The 432ZX model features heavy duty three ram geometry (Z bar linkage) providing high breakout forces with excellent loading characteristics. A wide wheel loader portfolio is also offered by Volvo CEs Indian arm. The Co. offers a wide range of models including, L90F, L120F, L150G, L180G, L220G, L 180F High-Lift, L180G HighLift, L 250G & L350F. The engine capacity of the models ranges from 175hp to 540hp. The wheel loader models from Volvo CE feature a dependable Volvo engine for high torque at low RPM & class-leading fuel efficiency. A HTE

electro-hydraulic transmission with smooth-shifting Automatic Power Shift (APS) for high maneuverability & fast cycling. Almost every top player has launched new wheel loader models in the recent past. Caterpillar for e.g., launched its Cat 950GC wheel loader model a few months ago. This model features heavy duty frames, Cat Z-bar linkage, performance series buckets, fuel efficient Cat C7.1 engine, powerful load sensing hydraulics & a spacious air conditioned cab with intuitive controls.

Successful business

The excavator market in India has witnessed a steep growth over the past few years, but currently it has slowed down since 2012. The years after 2016 too didnâ&#x20AC;&#x2122;t start off on a promising note either, with the excavator figures just hovering around 1,100 units per month. The annual figures too look below par from what the industry outlook was predicted a year ago. Overall there is a drop of over 10% sales over the last year. The fact is that wheel loaders are used mainly for wagon filling, asphalt loading, & block material handling. However, on the contrary, Backhoe Loaders are used for smaller trenches, laying pipes, clearing rubble & digging. Both the products are separate & both have different application. They cannot be compared as the application for them is non-comparable. But Panda believes that loaders are largely used as a complementary product for material re-handling in construction & mining applications. Though the market for wheel loader was majorly in unorganised hiring rental business segment, the demand for wheel loaders has also increased into mining activities due to the increase in the global demand for mining. Just like excavators, a comprehensive maintenance & service support would be critical for the success of the wheel loader business. But on the contrary, According to a recent market research survey, the market size for backhoe loaders in India is currently poised at around 30,000

units per annum. In fact, Caterpillars backhoe loader market is gradually gaining momentum & have been able to garner good traction in various markets in India. In fact, the Loader Backhoe market of India is the largest in the world with volumes close to 32,000 units in the calendar year 2012. Case is a market leader in the loader backhoe industry with market share close to 10%. The Case models include like Case 770, Case 770OL & Case 851 in loader backhoes category. In fact, a backhoe loader or a steer loader having backhoe attachment can be proved as very advantageous if it is very safely & properly used. The safety chain in backhoe prevents rotation/ shifting of backhoe mounting in backwards direction. Different backhoe loaders have different features but the common safety feature among all of them is that they have frame lock & attaching layers that help to backhoe to be safely fastened to the loader during its operation.

Interesting trends

There have been some interesting trends being observed in wheel loader market segment. One of it is increased emphasis on operator comfort. There has been a conscious effort in this regard by almost every leading player. This is a trend that was earlier witnessed in backhoe loaders, where manufacturers after extensive research found out that in India, for the operator, the cab is virtually his second home, & so it had to be spacious & comfortable. Same trend can be now seen in case of wheel loaders, with manufacturers going all out to ensure optimum operator comfort in order to decrease operator fatigue & increase productivity. Air-conditioned cabs for e.g., seem to have become the norm, rather than exception in latest models. Similarly, improvement in all round visibility is another area of focus among manufacturers. Manufacturers are ensuring that ergonomically placed controls ensure ease of operation. Similarly, a lot of emphasis is also being placed on operator safety. Infra.

development would be the key focus area of any govt. that comes to power after the general elections in India. This being the case, it is not surprising that it has emerged as one of the key markets for wheel loaders. Market trends are also such that demand is likely to go up exponentially in the next few years. Gradual rise in size of projects is one of these factors. Another key factor is the availability of complimentary heavy haulage equip. that along with wheel loaders holds the key in speeding up infra. projects. Heartening news has also been trickling in for wheel loader manufacturers from mining sector in recent times. Recent news reports have suggested a spurt in award of mining projects in different parts of the country. Increased demand for iron ore, coal had meant that govt. has always been under pressure to increase mining activities. Manufacturers too have taken note of this trend & have been focusing on launching wheel loader models that are as comfortable working in a quarry as they are in a construction site. Recent spate of new mode launches perfectly illustrates this point. All these trends point out to a healthy growth rate for wheel loaders in near future. Signs of competition intensifying are already evident. Almost every major player in the market has launched new wheel loader models in the past 6 months. Several new players are also entering the fray. India could soon be going the China way, where wheel loaders are the largest selling pieces of construction machinery. Manufacturers are gearing up for a period of intense competition where tech., along with the focus on aftermarket services, could be clinching factor, in who reaches finish line first. While delving deep to explore the heavy duty loaders market, it is found that loaders indeed drive & propel the construction equip. industry in the country. For infra. development, construction equip. manufacturing industry estimates that CE demand would go up. It is est. that 65% of the construction equip. machinery

pecial Theme: Wheel Loader

produced in India is mainly backhoe loaders. In fact, backhoes constitute the biggest segment in the CE market. Manufacturers are also closely exploring the possibilities of how the product integrates with the new demand transition which is also an equally challenging proposition. This is because in the past, the application versatility of the equip. was only its sole consideration. But the latest trend is based on more value proposition.

Machine of choice

Loader backhoes with an additional backhoe side is more versatile than wheel loaders. Agreeing with this, the backhoe loader is clearly the most popular machine in the construction industry & is highly valued for its versatility & mobility. Reason being for its emergence as the machine of choice includes its latest tech., robustness of design, versatility, reliability, best operator comfort & lowest owning & 66

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operating cost over life of machine. With excellent performance, quality & improving residual values the Cat Backhoe Loader provides the owner with a prudent investment decision. It is a well-suited model to target price sensitive geographical markets, the rental & rental services sector & emerging contractor. Versatility, ergonomics, performance, fuel economy, reliable & durable structures are the driving forces behind the 424B Backhoe Loader. Excellent visibility, low effort controls, spaciousness & comfort cab, & many other features make the 424B an industry-leading backhoe loader. From a buyerâ&#x20AC;&#x2122;s perspective, a backhoe is probably best machine available from viewpoint of return on investment. One of the major factors that add to versatility of backhoe is the no. of applications it can work in, with the help of attachments. Buckets at both loader end & backhoe end can be replaced with a host of attachments including pallet

forks, rock breaker, jib crane, sweeper collector, auger, six-in-one clam shovel bucket, ripper tooth, jaw bucket, ditch cleaning bucket, taper ditching bucket, bucket-mounted forklift. Backhoe loaders have carved a niche for itself & are the backbone of the M&CE market. Tractors cannot do the job that this equip. does & there is no big threat to the industry. The model Cat 424B that we sell today is acknowledged as the best performing BHL in the market, with product reliability at its best. In the case of the BHL, there are a no. of options that could be fitted for special purpose applications, both on the loader & the hoe end. However, we balance this potential with actual customer practices & preferences. Hence it cannot be said that there is a lack of innovation, the pace is certainly set by customer choices & demands.

High-end tech.

On the question of why high-end tech. is ||www.constructionmirror.com||

not coming into this sector, it is believed that equip. uptime is one of the major factors which customers consider while deciding on the machine. Time-bound projects need reliable machines, considering this fact all equip. manufacturers are trying to innovate & adapt to the latest trends & are in continuous process of improving the productivity of the machine. Case 770 driven by 76 horse power engine has got a higher breakout force & digging depth as compared to contemporary product offerings, making the machine suitable to work in Indian conditions. It has also gained acceptance in the hiring segment due to its low fuel consumption & operating cost. Case 851 the loader backhoe in 96 HP categories has dual stage pump with load sensing system, which results in higher productivity with fuel efficiency. Case loader backhoes also have advanced features like anti roll & return to dig which make them best in their class. On the other hand, fuel & energy efficiency have become two major ||www.constructionmirror.com||

parameters while selecting equip., as the end-user community is more focused on the operating cost where bidding of projects ultimately is influenced by the lowest bid. The environmental & energy issues have also made the construction equip. industry to develop more efficient & energy-saving machines. On the fuel & energy issue, CoS strive to achieve low levels of emissions & to have optimum fuel consumption for the machines with help of superior tech. Currently the engines which are being used are according to the norms of BS III. We have incorporated the optimum engine working temperatures to minimize the emission. These engines are fitted with High pressure rotary type fuel injections, IEGR, turbo charger & heavy duty silencers to keep the emissions low. For the better fuel consumptions, CoS have opted for engines which produce the better torque at optimum engine speeds too. With hasty construction bustle all across the country, many backhoe loaders manufacturing CoS are trying to develop a strong foothold in the Indian market. The backhoe loader manufacturing giants like, JCB, Volvo, Terex, Escorts, Caterpillar India, Case Construction & Hyundai etc, to name a few, are dominating the Indian market by providing their latest breed of backhoe loaders. While new players like Ashok Leyland, John Deere, Mahindra & Mahindra are emerging at the threshold as the new ones in backhoe loader market.

Rental business

The growth momentum of the equip. industry is dependent on growth & mindset of infra. industry. Globally, rental is an imp. component of construction business. Contractors having several projects on hand & they find it difficult to buy a number of machines due to reasons such as increasing capital expenditure, managing & operating fleet. Hence, for a variety of short & long-term projects, contractors explore rental options than buying offhand. Upto 70% of the BHL owners are hirers. Corporates hence generally stay away from rental business as far as BHL is concerned in order to avoid a head to head competition with their own customers. With increasing competition & dwindling jobs on account of the restrictive economy, this business model has led to unhealthy practices, including undercutting of rental rates,

focus on fuel consumption while sacrificing productivity etc. These & other related reasons have a deleterious impact on long-term health of BHL industry with just base machines on offer.

Looking ahead

While in neighboring China, wheel loaders are among the largest selling type of construction equip., they are steadily gaining in numbers in India. It goes without saying that no major construction site is complete today without these hardworking machines. As mentioned earlier, Panda avers that with the escalating demand for mining activities globally & with govt.s support & subsidies, the outcome for loading products will surely be encouraging. The wheel loader market is expected to grow at about 10% over the next few years. As a Co. policy, we do not take specific questions on product line financials. However, no other region of the world can match the growth opportunities that Asia presents for Caterpillar & its dealers. In particular, aggressive plans for infra. development in India represents a tremendous opportunity to serve existing & new customers. Asia also represents long-term mining oppâ&#x20AC;&#x2122;s to customers who are investing in their operations to support the growing demand for natural resources. This includes mature mining operations in South-East Asia & Australia, as well as growing new mining operations in India, where sig. coal reserves & other deposits lie untapped. Increasingly, India is deploying the concept of the right tool for the right job. With an impressive global track record & a wide range of products, Caterpillar dealers are well-placed to provide sound advice. By enabling increased productivity & safety of workers as well as completing a value analysis & selecting from a range of world-class Cat construction equip. & work tools, we aim to contribute to the growth of the industry by partnering with our customers for our

future endeavors. Unlike excavators, the growth in loaders is greater in the lower capacity categories (<10T): 1.5-8 tonne range has a sizeable presence & demand in India. With the market witnessing the entry of new players, the existing manufacturers are ramping up their production capacities. As such loader market looks poised for some heavy-duty action in coming years.

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CONSTRUCTION MIR ROR

pecial Feature: Container Industry

Container Industry & Ports in India: A Brief

Review on Maritime Transport in India

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ndia has 12 major ports & about 200 non-major ports. Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country. During the period Apr’17-Feb’18, cargo traffic at major ports in the country was reported at 616.62 MT, showing a growth of 4.97% over the same period last year. Since ports handle almost 95% of trade volumes in India, the rising trade has contributed sig. to the country’s cargo traffic. To support the growing demand, total cargo capacity in India is estimated to have reached to 2,493.1 MMT in FY17. Capacity at major Indian ports reached 1,358 MMT in December 2017. Capacity at non-major ports is expected to reach 968 MMT in 2019 from 750 MMT in 2016. Given the positive outlook, proposed investments in major ports are expected to total US$ 18.6 bn by 2020, while those in non-major ports would be US$ 28.5 bn. In November 2016, Ministry of Shipping has sanctioned sum of US$ 1.49 mn to Gujarat Maritime Board for capacity building & safety training of workers involved in ship recycling activities under Sagarmala. GoI has finalised master plans for 142 capacity expansion projects worth Rs 91,434 Cr. under the Sagarmala program. GoI has allowed FDI of up to 100% under the automatic route for projects related to the construction & maintenance of ports & harbors. A 10-year tax holiday is extended to enterprises engaged in the business of developing, maintaining, & operating ports, inland waterways, & inland ports. Govt. has also initiated National Maritime Development Program, an initiative to develop the maritime sector with a planned outlay of $ 11.8 bn.

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123.2

119.4

114.6

92.1 158.2 230.8

195.9 287.4

188.9 273

119.8 185.9

187.2 253.5

239.9

114.1

120.1 179.1 260.9

101.2

179.1 276.6

93.1

175.1 284.7

92.3

176.1 261.2

73.2

168.7

Cargo traffic at major ports in India: Stood at 647.43 MMT in FY17, growing at a CAGR of 4.02% from FY07-17. During FY’16-17, 12 major ports in India handled 647.43 MTs of cargo, showing a growth of 6.79% in comparison to the same time during previous year. As of Mar’17, 16 new cargo scanners are installed across major ports in India. In the 1st phase, 5 of the 13 major ports i.e. Kamarajar (Ennore), New Mangalore, JNPT, Kolkata & Vizag will receive the scanners, which should be operational in the next 6 months. Between FY’07-17, cargo traffic grew at CAGR 0.38%. Over FY’07-16, CAGR in the volume of different segments was - Solid cargo was 2%; Liquid cargo was 3.1%; Container cargo was 6%. Cargo traffic during FY’17 (Till Dec’16) for solid, liquid & container cargo was 230.8, 158.2 & 92.13 MMT, resp. During Apr-Oct 2016, cargo traffic at 12 major ports in the country was reported at 370.04 MT, showing a growth of 6.27% over the same period during the previous year. According to the Ministry of Shipping, around 95% of India’s trading by volume & 70% by value is done through maritime transport. India has 12 major

& 200 notified minor & intermediate ports. Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country. The Indian ports & shipping industry plays a vital role in sustaining growth in the country’s trade & commerce. India is the sixteenth largest maritime country in the world, with a coastline of about 7,517 km. The Indian Govt. plays an important role in supporting the ports sector. It has allowed Foreign Direct Investment (FDI) of up to 100% under the automatic route for port & harbour construction & maintenance projects. It has also facilitated a 10-year tax holiday to enterprises that develop, maintain & operate ports, inland waterways & inland ports.

54.3

Introduction

258.2

pecial Feature: Container Industry

236.9

Container traﬃc in India (000 TEU) 8.5 8

8.2

8.4

7.5 7

7.6

FY 17

FY 18*

Market Size

Cargo traffic handled by India’s major ports increased 4.97% YoY to 616.62 MTs during Apr’17-Feb’18. Highest growth was witnessed by Cochin Port at 17.63%, followed by Paradip at 15.56%, Kolkata (including Haldia) at 14.29% & Jawaharlal Nehru Port Trust at 6.37%. Container traffic saw the highest growth during this ||www.constructionmirror.com||

period at 8.37% year-on-year & reached 8,302 TEUs. During 2016-17, major & non-major ports in India have accomplished a total cargo throughput of 1,133.09 MTs, an increase of 5.7% previous year 2015-16. Growth in cargo handled at major & non-major ports in 2016-17, were 6.8% & 4.2%, resp. Share of major ports in the total traffic handled by Indian ports increased from 56.5% in 2015-16 to 57.2% in 2016-17. The country’s major ports handled a combined traffic volume of 647.76 MTs during 2016-17, registering an annual growth rate of 6.80%. The major ports recorded the highest ever capacity addition of 100.37 MT in 2016-17, thereby raising the total capacity to 1065 MT per annum, as against a capacity of 965.36 MT per annum in 2015-16. Govt. has taken several measures to improve operational efficiency through mechanization, deepening the draft & speedy evacuations. DIPP, Ministry of Commerce & Industry, reported that the Indian ports sector received FDI worth US$ 1.64 bn between Apr’00 & Sep’17.

of 14 new ships in A&N Islands over the next 3 years.

Investments/Developments

Indian Minister for Shipping, Road Transport & Highways, announced a massive investment in India’s ports & roads sector, which is likely to help boost the country’s economy. GoIplans to develop 10 coastal economic regions as part of plans to revive the country’s Sagarmala (string of ports) project. The zones would be converted into manufacturing hubs, supported by port modernisation projects, & could span 300–500 km of the coastline. Govt. is also looking to develop the inland waterway sector as an alternative to road & rail routes to transport goods to the nation’s ports & hopes to attract private investment in the sector.

Govt. Initiatives

Some of the major initiatives taken by govt. to promote the ports sector in India are as follows: In March 2018, a revised Model Concession Agreement (MCA) was approved to make port projects more investor-friendly & make investment climate in the sector more attractive. Project UNNATI has been started by GoI to identify the opportunity areas for improvement in the operations of major ports. Under the project, 116 initiatives were identified out of which 86 initiatives have been implemented. The Ministry of Shipping, GoI, released Rs 25 Cr. as grants-in-aid to JNPT & Rs 50 Cr. to govt. of Karnataka for Karwar port, for infra. development under the Coastal Berth Scheme of the Sagarmala program. Home Minister, & Minister for Shipping, Road Transport & Highways, inaugurated a new sea route to Baratang Island & initiated various shipping projects in the A&N Islands; along with announcement of addition ||www.constructionmirror.com||

Advantage India

Robust demand: Traffic at major & non-major ports increased 5.7% year-on-year in FY17. During FY 2016-17, 12 major ports in India handled 647.76 MTs of cargo, showing a growth of 6.8% in comparison to the same time during previous year. In FY18 traffic at major ports has increased 4.97% YoY. Attractive Opportunities: Total investment in Indian ports by 2020 is expected to reach US$ 43.03 bn. Non-major ports are set to benefit from strong growth in India’s external trade. SEZs are being developed in close proximity to several ports – comprising coal-based power plants, steel plants & oil refineries. Policy support: Govt. has initiated NMDP, an initiative to develop the maritime sector; the planned outlay is US$ 11.8 bn. FDI of 100% under the automatic route & a 10 year tax holiday for enterprises engaged in ports. Plans to create port capacity of around 3200 MMT to handle the expected traffic of about 2500 MMT by 2020. Competitive Advantage: India has a coastline which is more than 7,517 km long, interspersed with more than 200 ports. Most cargo ships that sail between East Asia & America, Europe & Africa pass through Indian territorial waters. India is the largest importer of thermal coal in the world.

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MAJOR PORTS IN INDIA

Between FY07-17, cargo traffic grew at CAGR 3.4%. Over FY07-16, CAGR in the volume of different segments was as follows- Solid cargo was 2%; Liquid cargo was 3.1%; Container cargo was 6%. Cargo traffic during FY17 for solid, liquid & container cargo was 310.83, 212.36 & 124.58 MMT, resp. During Apr-Dec’17, traffic handled by major Indian ports increased 3.64% YoY.

Source: ministry of shipping, Indian Ports Association (IPA)

Porter’s Five Force Framework Analysis Threat of Substitutes: (Low) – With rising demand for port infra. due to growing imports (crude, coal) & containerization, the threat of substitute products to remain weak. Bargaining Power of Suppliers: (Medium)\ Considerable capacities to be added going forward. However, demand to continue to remain strong. Competitive Rivalry: (Low) Increasing trade activities brought by rising imports of commodities like coal & crude to generate higher business & limit overall competition as most ports handle specific geographies. Bargaining Power of Buyers: (Medium) Imports to continue to remain strong led by strong demand. However considerable port capacities to be added going forward. Threat of New Entrants: (Medium) 100% FDI under automatic route & income tax exemption (10 years) is attracting

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pecial Feature: Container Industry

foreign players. However, higher capital expenditure acts as a barrier.

Global FIBC market growing at 7.3% CAGR

Flexible intermediate bulk container players are increasingly investing in R&D for the development of products that are high-performing in terms of quality, durability, & energy absorption. Vendors are continuously investing in new product developments for restructuring & realigning their product portfolios, in order to stay ahead in the market in terms of products, infra. & techâ&#x20AC;&#x2122;s. Sig. growth of industries like food & pharma has led to a considerable increase in demand for FIBC market. The growing

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needs to reduce the overall weight of the bulk packaging & transporting materials is a major factor driving the demand for FIBCs in the food & pharmaceutical industry. With increase in the cost of raw materials, FIBC vendors have to increase the prices of their end products or reduce their profit margins, which will have an adverse effect on FIBC market growth. To calculate the FIBC market size, the report considers the volume of FIBC used by the industry segments of Food, Pharmaceuticals, Chemical & Other industries (includes construction, fertilizers, & mining & minerals). The report covers the current scenario & the growth prospects of the global FIBC market for 2015-19. FIBC are made from

woven polypropylene or polypropylene fabric of different weights & strength. FIBCs are available in a wide variety & are suitable for numerous applications in the chemical, pharmaceutical, & food industries. FIBC market is characterized by innovative offerings & customizations according to customer specifications.

Growth drivers & challenges

Future of container growth in India is bullish in the wake of various policy initiatives such as Make in India, GST, Digital India, new Foreign Trade Policy & port linked infra. projects. On the flip side, encouraging growth picture comes with several riders like the fragmented port capacity, increased pressure on terminal assets from vessel upscaling & ||www.constructionmirror.com||

until the third quarter of 2016. The container traffic in North America & Europe is expected to grow by 3% & 3.9% resp. in 2017. The positive demand outlook globally will reflect on the box traffic in India. New Foreign Trade Policy (FTP): Under the new FTP (201520), India aims to increase its share in the global trade to 3.5% by 2020. Incentives to agricultural exports & extension of the same under Merchandise Exports from India Scheme to units in SEZ are part of - new FTP, aimed to integrate with Make in India & Digital India initiatives. Infra. projects linked to port: Multiple infra. projects, eyeing to improve Indiaâ&#x20AC;&#x2122;s logistics efficiency & hinterland connectivity, will boost the countryâ&#x20AC;&#x2122;s box trade in the coming years. Some of the key projects that will be a game changer when fully operational are: Multi-modal terminal under Jal Marg Vikas project: The 170 Cr. multi-modal terminal at Varanasi, under the Jal Marg Vikas project that will open before December 2018, will be a major logistics hub connecting North India to North East India. Govt. will also develop 35 multi-modal logistics parks for freight aggregation & distribution, multi-modal transportation & warehousing. Port based multi-product SEZ at JNPT: First of its kind, a port-based SEZ at JNPT will be developed with Free Trade Warehousing Zone, Engineering Goods sector, Electronics & Hardware sector & Pharma sector. Dedicated Freight Corridor: DFC will provide logistics support for the Make in India initiative. Two of the three DFCs are scheduled to be operational in the next three years. DFC will reduce the inland transit time sig.. Sagarmala program: The Indian govt. is implementing the Sagarmala program in phases, spanning over 20 years from 2015-35. 415 projects have been identified for port modernisation, new port development, port connectivity enhancement & port linked industrialization. 6 new port locations have also been identified.

Proposed transshipment hubs in the south

delay or time lag in the implementation of infra. projects. Container Terminals in India are Jawaharlal Nehru Port Container Terminal; Nhava Sheva International Container Terminal Pvt. Ltd.; Nhava Sheva India Gateway Terminal; APM Terminals Mumbai; Mundra International Container Terminal; Adani Mundra Container Terminal; Adani International Container Terminal; Adani CMA CGM Mundra Terminal; APM Terminals Pipavav; Adani Hazira Container terminal; Kattupalli International Container Terminal; Vallarpadam ICTT; Chennai Container Terminal; Chennai International Terminal; Visakha Container Terminal; Krishnapatnam Port Container Terminal; PSA SICAL Tuticorin Container Terminal; Dakshin Bharat Gateway Terminal; Bharat Kolkata Container Terminal; Haldia International Container Terminal. Improving global economic environment: Shipping is a cyclical business, & we are clawing back from the bottom of the cycle. The global container traffic, is expected to grow by more than 5% in 2017 & 3.5% in 2018. Tide is turning in Latin America, particularly in Brazil that was in doldrums ||www.constructionmirror.com||

Govt. has approved Rs. 27,000 Cr. port project at Enayam. The port is expected to become a gateway port for India by shifting boxes that are currently transshipped at Colombo or South East Asian ports such as Singapore or Port Kelang. Location has a natural draft of 16 meters, & its proximity to East-West shipping route will enable it to be a transshipment hub for cargo from Bangladesh & Myanmar, which are currently being transshipped at Colombo or other South East Asian hubs. The Rs. 7,525 Vizhinam port, currently being developed by Adani that enjoys a natural draft of more than 20 meters is another port that will compete as a transshipment hub.

Challenges for container terminals

Spatial distribution of ports: Fragmented container terminal capacity & development of new facilities in close vicinity will lead to traffic diversion. This will be a Sig. headwind to optimum utilization of terminal facilities. Vessel upscaling: Increasing pressure on terminal assets from vessels upscaling will inflate the sunk cost for terminal || APril 2018 ||

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operators as container handling equipment becomes obsolete & yard space becomes scarce. For instance, in March govt. approved a project worth Rs. 2,029 Cr. for the widening & deepening the Mumbai harbor channel to enable large vessels to call at JNPT. Delay in policy implementation & project approvals: Best e.g. to cite here is the Vizhinam port. Plan to develop this port was mooted way back in 1991 & it materialized after 24 years. Another e.g. is the delay in the construction of the fourth container terminal at JNPT that has proved costly for port, in terms of traffic diversion to neighboring ports. As per Indian container market trend over the last few years, installed capacities & handled volume have been growing proportionately shows a positive sign for the industry apart from achieving best capacity utilization levels of almost 65%. Year over year growth of Indian container installed capacity & throughput are 11 & 10% resp.. Global & Indian operators are trying to attract transhipment cargo which could trigger inclusive growth in box trade. Few major & private players are also trying hard to establish themselves as transhipment hubs apart from serving as Gateway Port. This transformational changes in box business aiding Indian container market to reach the next level in Indian shipping business. For the first time in Indian shipping industry, Gateway Media Pvt Ltd & Drewry have tried to analyse & present Indian container terminal market by operator. Global & Indian Operators are one of the key stakeholders of the industry, aiming high with their big ticket investments in India for the betterment of 76

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the industry in spite of industry headwinds. In this report, total Indian throughput is segregated by each operator as per their equity share in the terminal. Thus, could derive the exact picture of each operator share in Indian total throughput. DP World India, APSEZ Ltd, APM Terminals India, JNPT, PSA International & MSC India Pvt Ltd contributed around 90% of the throughput as per their equity share in Indian Container terminals. The rest is shared among other players like JM Baxi, KPCL, CMA CGM Terminals, ABG Infra Logistics & Bollore Africa Logistics.

DP World

DP world portfolio comprises of 78 marine & inland terminals along with around 50 related businesses in 40 countries across six continents with a Sig. presence in both high-growth & matures markets. Container handling is the CoS core business & generates more than three quarters of its revenue. In 2016, DP World handled around 64 mn TEU across its global portfolio. With its committed pipeline of developments & expansions, the current global gross capacity of 84.6 mn TEU is expected to rise to more than 100 mn TEU by 2020, in line with market demand. Dubai govt. owned DP World is currently the biggest foreign port operator in India, reported 3.5 mn TEU as per their equity shareholding in Indian portfolio of terminals in FY 2016-17 while capturing 30% share in Indian total throughput. DP world is running six container terminals in Indian ports in almost all biggest major container ports across Indian coast such as Mundra, Jawaharlal Nehru Port (2 facilities), Cochin, ||www.constructionmirror.com||

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Chennai & Visakhapatnam. One of the major contributors, Mundra International Container Terminal has registered a growth of 18% year over year in FY 2016-17. These 6 terminals have a combined market share of about 30% of the 13.5 mn TEU handled by Indian ports during 2016-17. DP World is seeking opportunities in the country worth over US $1 bn in the next few years. This will be aimed at development of port infra. of the Sagarmala project, creation of the Delhi – Mumbai Industrial Corridor, river transportation & cold chain storage, investing in port-led special economic zones, free trade zones, ICDs & cruise terminals.

Adani Hazira container terminal witnessed 37% year over year growth in FY 2016-17.

APSEZ ltd

& integrated Global Terminal Network of 56 ports & 154 inland facilities in 63 countries. With a presence in every major market, APM Terminals serves all major trade lanes providing wide clientele with the most advanced terminal technology, equipment & operations in the industry. APM terminal’s Indian portfolio consists of two terminals in India, currently - India’s largest & most successful container terminal, APM Terminals Mumbai (earlier known as Gateway Terminals India), in JNPT at Nhava Sheva, Mumbai; & Port Pipavav in Gujarat. APM terminal’s total installed capacity is 3.15 mn TEU where in total throughput share by equity holding is 1.61mn TEU in FY 2016-17. APM terminals Mumbai & Pipavav clocked highest throughput in its history in the FY 2014-15 especially APM terminals Mumbai volume touched the highest ever handled by a single container terminal of 2.01 mn TEU in the Indian shipping industry, since after the two terminals fall a prey to the negative growth trend till this year. In addition, Global cyber-attack, ransomware hit the APM terminals operations across the globe that could further pull down the growth of the terminals in the current year. Notwithstanding to its downfall, still APM terminals

APSEZ Ltd is the only major Indian operator among other operators in India with highest portfolio of owning & operating ports & terminals across Indian Coast. APSEZ has their presence in almost all coastal states of India. Almost around 30% of Adani’s portfolio is box business in its portfolio of diversified cargo types handled. In India, Adani is owning & operating 5 container terminals & 4 new terminals are in the anvil at Dhamra, Ennore, Mormugao along with one transhipment terminal at Vizhinjam. Adani total container terminals throughput by equity share is accounting around 20% of the Indian total throughput, ranked 1st biggest Indian operator. Joint venture of Terminal Investment Ltd (MSC) & APSEZ Ltd, Adani International Container Terminal handled 1,160,000 TEU in FY 2016-17 with a year over year growth of 8%, another joint venture facility of CMA CGM terminals & APSEZ Ltd is Adani CMA CGM Mundra Terminal registered one of the highest first year throughput of 276,630 TEU & in contrary, Adani 100% owned terminal has registered a negative growth of 9% in the same period. Adani Kattupalli container Terminal has registered around 200% growth & 78

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Mumbai has registered a highest throughput handled by a single terminal in India of 1.7 mn TEUs in FY 2016-17.

Indian ports increased from 3,700-6,100 teu in 2017. Similarly, the largest ship size also rose to 12,500 teu from 7,400 teu.

JNPT

Jawaharlal Nehru Port Trust owned & operated Jawaharlal Nehru Port Container Terminal has witnessed a positive year over year growth of 10% in FY 2016-17. JNPT as an operator has contributed 13% of throughput by equity share holding to the total volume handled in India. JNPT’s transformational changes & adaptability to the new tech & enhancement of port infra. intensified the operations across its container terminal to record one of the highest throughput in India. Still many progressive plans are in progress for the betterment of the port & terminal to ease the congestion issues for the speedy evacuation of cargo apart from streamlining the operational processes.

PSA International

PSA International is eyeing to increase its dominance in Indian container market with slew of measures undertaken while adding new services & also with its high investments by adding further capacities across Indian coast. PSA’s position in India will be beefed up further when Phase I of Bharat Mumbai Container Terminal in JNPT becomes operational in FY 2017-18. In India, PSA achieved equity throughput of more than 1.15 mn TEU & garnered 5th position among other operators in India. In the last fiscal 2016-17, PSA’s Chennai International Terminal clocked around 21% of impressive growth rate year over year, while registering throughput of around 0.85 mn TEU in FY 2016-17. In addition, its Bharat Kolkata Container Terminal achieved an uptick of 10% growth rate, & its Tuticorin Container Terminal witnessed 5per cent growth year over year with 0.53 mn TEU in FY 2016-17.

Liner connectivity in India (main lines)

Upsizing of containerships has been a trend in the shipping industry to achieve economies of scale. However, the pace at which the vessel sizes are increasing in last decade is unforeseen. In global container fleet today, we can see more than 50 ships with capacity exceeding 18,000 teu. Although ordering of new ships has taken a pause, rumours of CMA CGM & MSC ordering 22,000 teu vessels might be a reality soon. However, economies of scale from carriers’ perspective does not always hold true from the terminal operators’ perspective. To accommodate large ships, the ports need to continually upgrade their handling infra. apart from increasing the efficiency & productivity to remain competitive. Being situated on a major trade lane (Asia-Europe), Indian ports cannot remain aloof from the emerging trends in global container shipping. The largest vessels delivered out of shipyards mostly find their home on this route due to the geoeconomic dynamics. Therefore, the average ship size in 2011 on Asia-Europe route was 9,400 teu which increased to 14,700 in 2017, about 60% increase in cargo carrying capacity per vessel on an average. Similar is the case for Indian ports. The average size of container ships handled by 80

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DPD on Rise

Govt.’s new initiative Direct Port Delivery (DPD ) to reduce dwell time & transaction cost for the shippers could make some substantial savings of time & money for importers. Earlier, import containers were sent to Container Freight Stations (CFS) 1-1.5 days after arrival of vessel. Next, depending on the completion of import procedures & clearances with shipping lines, custom house agents, Customs, consignees & CFS operators, the cargo was then delivered to the end user after an average dwell time of 9-10 days. With DPD, importers can bypass these through a streamlined procedure, allowing import containers to be delivered to the end user directly at the port with an average dwell time of only 1.5 days. The largest terminal on Indian coast by throughput, APM Terminals Mumbai, has embraced Direct Port Delivery. APM Terminals Mumbai currently handles the highest Direct Port Delivery volumes at the Jawaharlal Nehru Port. In the first two quarters of FY 2016-17, the number of Indian importers utilizing the pro-active, customercentered service at APM Terminals Mumbai has tripled, with half of these being small & medium enterprises with less than 100 TEUs per month. A well coordinated effort by customs & other stakeholders is helping Jawaharlal Nehru Port Trust (JNPT) to handle more cargo through its DPD procedure meant to ease congestion & lower logistics costs for shippers at India’s busiest container gateway. This shows ||www.constructionmirror.com||

JNPT’s DPD volume reached 42,594 TEU in the first month of fiscal year 2017 to 2018, making it the highest-ever monthly figure. That compares with 38,394 TEU in the prior month & is an improvement of 11% month-tomonth. In April 2017, JN port-owned Jawaharlal Nehru Container Terminal handled DPD of 13,732 TEU, up from 12,321 TEU in March; APM Terminals operated APM Terminals Mumbai at 19,545 TEU, up from 16,952 TEU; & DP World Nhava Sheva, which includes Nhava Sheva International Container Terminal (NSICT) & Nhava Sheva (India) Gateway Terminal (NSIGT), at 9,317 TEU, up from 9,121 TEU. That progress was reflected in dwell time reductions at JNPT during FY 2016-17 from 2.95-2.6 days at JNCT, from 2.91-2.45 days at GTI, from 3.4-2.5 days at NSICT, & from 3.6-2.8 days at NSIGT. DPD cargo is required to be removed within 48 hours of landing at the port, & if a shipper fails to meet that time frame, their cargo is shifted to a nearby off-site yard, & stored there at a cost for clearance under the normal customs procedure. A major milestone during FY 2016 - 17 is achievement of zero congestion at JNPT area & roads. It is estimated that there is an eight% reduction of movements on port roads & a gain of Rs.125 Cr. [about $19 mn] to the trade due to savings in fuel in one year alone. When it comes to container freight stations that established to cater especially import goods are under threat. Top logistics firms, including listed entities that have invested thousands

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of Cr.s to set up & run container freight stations (CFSs) near India’s container ports, face an uncertain future after implementation of the DPD program to speed up delivery of cargo containers to importers/consignees. The so-called direct port delivery (DPD) scheme was introduced at the Jawaharlal Nehru Port & Chennai Port. Mumbai-listed firms such as Allcargo Logistics Ltd, Navkar Corporation Ltd, Gateway Distriparks Ltd, Container Corporation of India Ltd (Concor) & Balmer & Lawrie Co Ltd are among the 33 CFSs operating near JNPT. In fact, Navkar went public in 2015 purely on the strength of its CFS business. Continental Warehousing Corporation (Nhava Sheva) Ltd, which runs a CFS near JNPT, has also filed documents with SEBI for an IPO. AP Moller Maersk Group A/S, which runs Maersk Line, the world’s top container shipping company, also runs two CFSs near JNPT. Govt. has targeted CFSs to speed up import clearances because it feels these intermediaries take longest time, as much as 8-9 days, in completing all procedures. Long cargo dwell time in CFSs automatically adds to transaction costs, says govt. CFS operators argue that longer dwell time attributed to them is not their fault. Importers prefer to keep containers in the CFSs & move them to factories according to their inventory requirements. CFS is the safest & cheapest way of storing containers. Importers get the following benefits by facilitating DPD: Timely

delivery by terminal will help in reducing inventory cost; Saving in transportation from Port Terminal to Customs bonded warehouses; Handling & storage charges at warehouse; Container detention charges payable to Shipping agencies; Delivery of DPD container at Port Terminals is on 24x7 basis which is not possible in custom bonded warehouses; Saving towards dwelling of boxes till clearance at destined custom bonded warehouses. Increasing investments & cargo traffic point towards a healthy outlook for the Indian ports sector. Providers of services such as O&M, pilotage & harboring & marine assets such as barges & dredgers are benefiting from these investments. Capacity addition at ports is expected to grow at a CAGR of 5-6% till 2022, thereby adding 275-325 MT of capacity. Under the Sagarmala Program, govt. has envisioned a total of 189 projects for modernisation of ports involving an investment of Rs 1.42 tn by the year 2035. Ministry of Shipping has set a target capacity of over 3,130 MMT by 2020, which would be driven by participation from the pvt. sector. Non-major ports are expected to generate over 50% of this capacity. India’s cargo traffic handled by ports is expected to reach 1,695 MMTs by 2021-22, as against 643 mn in 2014-15, according to a report of the National Transport Development Policy Committee. Within the ports sector, projects worth an investment of US$ 10 bn have been identified & will be awarded over the coming five years.

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pecial Focus:

Scaffolding & Formwork

Scaffolding & Formwork Systems: Challenges and Future Scope 82

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caffolding & formwork yet a happy to hire the systems at feasible & secure, & it should be level. Each rates for a stipulated time. Also there’s scaffold & scaffold component must momentous reality

Each scaffold & scaffold component must support without failure its own weight & at least four times the maximum intended load applied or transmitted to it. A qualified person must design the scaffolds, which are loaded in accordance with that design. CoS offer different Scaffolding items used in construction work, like Cuplock system, Props, U Jack, Base Jack, Planks Moving Tower, etc. Cuplock System is the most advanced form & safe system for construction. It is being used worldwide. Upper & lower cup tightly hold the ledgers/horizontals in cuplock system. Low cost traditional formwork & scaffolding system still exists, but it is changing very fast. Infact, in Delhi & Mumbai almost 98% metal scaffolding are being used. Smaller cities are also following to use it now. However, it’s unfortunate that many are still using traditional formwork & neglecting the safety features. Every construction company no matter small or big requires scaffolding on rent. In construction, size & period varies & hence they depend on rental scaffolding. Regular maintenance, stock & security of material are reasons to make this market attractive. Since, we know that a client is hell-bent on cost minimization & a manufacturer needs the money to keep his business going, treading the rental route sounds sane. Builders & contractors want to bring down the investments & are hence

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always an uncertainty in contractors’ minds that a project can come to halt at anytime or maybe get delayed inordinately. Hence, CoS are finding it lucrative to adopt the rental model. The South-West & North-Central regions account for over 70% of the country’s construction equipment rental market & it’s growing at 12%. Similarly, in India demand for organized Indian formwork & scaffolding is around Rs. 2,103 crore & it is growing at 10 to 15% annually. Right scaffolding is very important part for working in high rise building. All Safety measure must be taken before sending workers to work on height. First of all the system has to be chosen carefully & one must satisfied himself on following points - strength of pipes, how old pipes are, should not be rusted, cup welding to verticals is a major part which need to be insured properly as whole weight is going to come on it. Lesser the distance between two verticals would increase the capacity of loading. Guard rail, quality safety net must be placed before working. CoS today use heavy-duty scaffolding 40 NB pipes for Cuplock system & provide general guidance to client about how to use them to make structure rigid at site. They also help client on calculating min. quantity of material they would require for any project. The ground on which scaffolding is to be constructed should be checked. It needs to be firm

support without failure its own weight & at least four times the maximum intended load applied or transmitted to it. A qualified person must design the scaffolds, which are loaded in accordance with that design. Each platform must be planked & decked as fully as possible with the space between the platform & uprights not more than 1 inch (2.5 cms.) wide. The space must not exceed 9 inches (24.1 cms.) when side brackets or odd-shaped structures result in a wider opening between the platform & the uprights. Each scaffold platform & walkway must be at least 18 inches (46 cms.) wide. When the work area is less than 18 inches (46 cms.) wide, guardrails and/or personal fall arrest systems must be used. All employees must be trained by a qualified person to recognize the hazards associated with the type of scaffold being used & how to control or minimize those hazards. The training must include fall hazards, falling object hazards, electrical hazards, proper use of the scaffold, & handling of materials. Scaffolding system basically facilitates workers to work on height. Safety for workers is a major concern for working towards technological development. Light weight is another major concern for easy movements. Hence, it is believed that heavyweight of MS pipe used in scaffolding is most negative point. There is an effort in market to bring aluminum or any other light weight material with similar

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pecial Focus:

Scaffolding & Formwork

strength to use in place of MS. Plastic / Polymers pipes are also options for development.

India offers enormous opportunities

In the construction industry, scaffolding refers to a temporary platform or structure that are erected with the help of wooden planks, bamboo poles or metal frames, on which workers stand or sit, while building, repairing, cleaning or attending to other tasks above the ground level. Likewise, the construction teams use formwork as temporary or permanent casings when they have to mould wet concrete or hold it in place until it hardens enough to the desired level so that it can support its own shape & weight. Lately, with time-saving techniques becoming the norm for construction activities, modernizing of traditional scaffolding & formwork business has gained relevance. During the last few years, this industry has witnessed a lot of innovations both in technique as well as materials used in business. Simultaneously, cost-effective scaffolding & formwork solutions that allow CoS to achieve economies of scale in the construction industry have seen a surge in demand. Furthermore, longer life & reusability factor of scaffolding & formwork solutions also save on costs. With labor safety issues becoming 84

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critical, use of conventional scaffolding material is all but dead. The advancement seen in scaffolding & formwork products has made construction processes both convenient & economical. For example, development & use of lightweight, handheld aluminum formwork have made monolithic concreting a huge success. In urban areas, where space is scarce & demand for housing is high, monolithic construction has emerged as the new age solution to the problem. As in the case of most industries, competition, chiefly from multinational players, has compelled local manufacturers to develop affordable products & systems as an answer to all kinds of construction. Galvanized scaffolding, construction fencing & road barriers, aluminum ladders, safety products like welder helmets, goggles & gloves are also some of the products that scaffolding CoS manufacture.

Importance of scaffolding & formwork

Whether a project is small or large, scaffolding equipment is always needed as it is the most important construction tool involving the safety of workers. Scaffolding allows employees to navigate safely around tall structures, thus creating a secure workplace. Meanwhile, formwork is used as a mould

for structures wherein fresh concrete is added for eventual hardening. In a conventional concrete construction, 20% of the standard cost can be attributed to formwork. A good formwork system is the one that is robust enough to withstand load & facilitate speedy & safe execution of reinforced concrete construction. Once a project is over, formwork needs to be removed. The process of removing formwork is called stripping. Nowadays CoS go for reusable stripped formwork to minimize costs. Reusable formworks are called panel forms while the fixed ones are called stationary formwork. Types of formwork available today include traditional timber formwork, re-usable formwork, engineered formwork, permanent insulated formwork, precast concrete or fiberglass form that is used either independently or in combination.

Growth potential & market size

With government promising to fast-track projects as well as construction CoS looking to minimize costs, the scaffolding & formwork industry is headed towards rapid expansion. In 2012, aluminum formwork in India grew its market share to 13.5% from 9.2% in 2010. According to industry insiders, this segment is expected to grow at a rate of 25% annually from 2013 to 2016 to cater ||www.constructionmirror.com||

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Scaffolding & Formwork

to the dearth of livable housing units. The shortage as of 2013 was estimated at 2.4 million housing units. Under the circumstances, construction activities will propel demand for scaffolding & formwork industry in the years to come. Currently, the market size is pegged at over `800 crore & the space is teeming with local & pan-Indian players. Our government is also doing its best to promote the local players by offering cheaper equipment loans through state-run institutions.

Challenges

In recent times, the need to have customized formwork solutions has increased tremendously. A discerning customer is the biggest challenge facing this industry. Such customers prefer deploying automated formwork systems because they are reliable, safer & qualitatively superior. Thus, scaffolding & formwork manufacturers have to offer equipment that is easier to handle, reusable, high on efficiency, can withstand various types of construction processes & also command a competitive rate. Shortage 86

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of manpower that is well-trained & can handle modern equipment is also a big challenge for the industry. Acute labor shortfall has added to the pressure on manufacturers whose margins are squeezed by rising construction costs. Another challenge facing the scaffolding & formwork market is its unorganized nature. Although entry of global manufacturers has brought in a semblance of discipline, a certification body for all formwork manufacturers is needed to ascertain quality. The formwork industry is fed by activities in the construction sector, which itself is impacted by economic upturn & downturn. With too many players vying for projects, a delay or suspension of construction activities can easily set the scaffolding & formwork industry back by many months. During the last couple of years, the scaffolding business witnessed a serious dip owing to a lull in construction activities. However, with the government announcing stimulus via attractive schemes, clearance of old stalled projects, etc, the scaffolding industry is seeing a new round of

bidding.

Key players in the industry

RMD Kwikform India, MFE Formwork Technology (Mivan), Doka India, Peri India, Layher Scaffolding Systems, Nav Nirman Formwork Systems, Paschal & ULMA are among the key players in this field engaged in manufacture & supply of formwork & scaffolding systems for construction sites. MFE Formwork Technology or Mivan is clearly ahead of the curve by hogging nearly 50% share in Indiaâ&#x20AC;&#x2122;s aluminum formwork market. The company has its footprints in over 20 countries. Meanwhile, Doka India is very popular amongst businesses because of its comprehensive valueadded services. Besides scaffolding & formwork systems, the company also offers consulting, planning & other ancillary services.

Formwork systems

Currently, there are four distinct formwork systems in place globally. They are: Mascon Construction System: Developed by a Canadian engineer WJ Malone in ||www.constructionmirror.com||

universal formwork & innovative modular slab formwork. Peri Group: They are the Uno Monolithic Housing Formwork specialists. This system is widely used, where large numbers of residential units with identical dimensions are extended vertically & horizontally. Peri is among the worldâ&#x20AC;&#x2122;s biggest players offering formwork & scaffolding systems & has 55 subsidiaries. The Group has handled prestigious projects in Sweden, Canada & Russia. This exposure makes Peri one-of-a-kind in masterly execution of twisted skyscrapers, which are gaining popularity in space-starved cities.

Competition

the late 1970s, this system is generally used for forming the cast-in-place concrete structure of a building. Being cost-effective, adaptable & simple to use, Mascon Construction System is widely used all over the world. As much as 90% of this system constitutes aluminum. MFE Formwork Technology: Formally known as Mivan, this formwork construction system finds wide acceptance in India. Primarily made from aluminum, this system is highly cost-efficient as it can be reused more than 250 times. So despite the initial cost appearing high, the ultimate cost for each square feet of forming area works out comparatively lower when compared to traditional methods. Paschal System: The uniqueness of products under this system is they can be used in crane less sites. Additionally, they seamlessly fit in places where use of aluminum is restricted. They have recently forayed into India by opening their first production & distribution facility in Visakhapatnam. They mainly focus on products comprising modular ||www.constructionmirror.com||

With rising construction activities, competition among scaffolding manufacturers is increasing. The market is being driven by those customers who want to hire CoS that offer valueadded services. In a bid to become the most sought after, manufacturers are turning into active value-added providers for effective implementation of their formwork assignment. These value-added services include offering products like climbing, load bearing, safety, and floor & wall systems, in addition to the main formwork products. Many also offer consultation services. Several formwork CoS are also investing in skilled labour force. With massive shift in technology, where systems are getting automated, skilled laborers are required to handle these products. Furthermore, there is competition from multinational players since India appeals to every global player for its still under-tapped construction market. All global scaffolding & formwork biggies worth their salt have either set up their own manufacturing units or have tied up with regional players to tap the Indian market. Apart from bringing in the latest technology, these scaffolding CoS are also offering value-added services to bag projects. Thus, in the prevailing circumstances, a combination of technology, skilled labour, cost-effective systems & valueadded services are required to keep oneself abreast of competition.

Future of scaffolding & formwork industry

With emphasis on construction & infrastructural development, FDI in retail, the much-debated Land Acquisition Bill & higher target for PPP infrastructure projects, India presents manifold opportunities to scaffolding & formwork manufacturers. In the wake of ongoing & new project announcements, scaffolding manufacturers have picked up pace in sync with the construction industry. Like their counterparts in the developed countries, Indian construction sector too prefer using world-class technologies that are economical & easy to operate. One of the areas that is propelling demand for scaffolding & formwork manufacturers is the spurt in high-rise projects. To facilitate work on such projects, formwork manufacturers have focused on developing hydraulicallyoperated climbing formwork that is in great demand since it enables buildingcontractors save time & meet project deadlines. Since modern metros are low on space & high in housing requirement, the trend of building high-rises will continue in the near future. Besides, high-rises in space-crunched cities, affordable housing for masses is also driving demand for formwork suppliers in urban, semi-urban & even rural India. Thus, this segment has got a new lease of life with the government announcing â&#x20AC;&#x2DC;Housing for Allâ&#x20AC;&#x2122; schemes, which is encouraging real estate construction in tier-II & tier-III cities & towns. The move has, consequently, spiked demand for formwork manufacturers. With metros experiencing a relative lull in construction activities, scaffolding & formwork manufacturers are channelizing their resources to strengthen their dealer & service network in relatively smaller cities & towns.

Riding high on formwork

Growing takers for innovative products & customized offerings are defining the new shape of the Indian scaffolding & formwork market. With time management & cost control gaining focus, construction CoS are paying greater attention to labor & time saving techniques. Modern formwork & scaffolding is one such method - it constitutes less than 5% of the project cost but can usher in considerable

|| APril 2018 ||

CONSTRUCTION MIR ROR

pecial Focus:

Scaffolding & Formwork

savings especially in the face of increasingly scarce & expensive labor. As a result, the fortunes of formwork & scaffolding vendors are looking up. Growth mode: Already a sizeable market, the formwork & scaffolding industry is clearly in expansionist mode. It is conservatively pegged that the market for system formwork in India at around Rs 800 crore. Demand for organised Indian formwork & scaffolding is around Rs 2,103 crore & it is growing at 10 to 15% annually. Based upon recent successes, we expect our business in India to grow by 25% & predict similar growth over the next 3 years. Recent recessionary trends have impacted the construction scenario in the country. Still, formwork has been maintaining a steady pace of growth even in the face of volatile market conditions. Continuing emphasis on infrastructure development is good for the formwork industry. Notably, the biggest uptake of overseas branded formwork & scaffolding is for large infrastructure projects & landmark high-rise residential projects. Branded scaffolding from overseas CoS is technologically advanced but beyond the financial reach of smaller construction businesses. CoS prefer locally made cuplock systems with adjustable telescopic props & spans for framework. The influx of overseas brands is creating a new segment in the market, which is otherwise constituted of local brands & pan-Indian brands, which also export, such as ACME Overseas, HIM Overseas, Veer Scaffolding, etc. Boost factors: No doubt - mammoth proposed investments in infrastructure bode well for providers of formwork & scaffolding industry. There is a tremendous growth in the next couple of years as these fast track projects unfold & as construction CoS adopt cost-effective system formwork. Adequate & attractively priced equipment loans from government

CONSTRUCTION MIR ROR

|| APril 2018 ||

sources & other financial institutions are also proving to be a boon in helping contractors opt for system formwork. Greater awareness of safety & quality, & emphasis on sustainability would enhance the adoption of automated formwork systems. Of course, this will present another challenge - the availability of skilled manpower to operate these systems. As CoS push the boundaries of imaginative construction, the need for customized formwork solutions will rise. For instance, PERI has gained considerable experience in executing twisted high-rise buildings & inclined climbing procedures, thanks to its involvement with the Turning Torso in Sweden, the two Absolute World Towers in Canada, & now the Evolution Tower in Moscow. Widening scope: So far, the greatest uptake of modern formwork systems has been from large & medium construction firms. However, a salient trend in the market is increasing interest from smaller outfits engaged in standard projects for attractively priced, easy-to-use branded formwork. As an example, Doka India launched framed formwork Frami Eco & slab formwork Dokaflex 15 in India last year. These two eco-line products are helping extend the ambit of modern formwork to small contractors, who are becoming as conscious about saving labour & time while ensuring quality finish.â&#x20AC;? While Frami Eco facilitates the crane-free, quick & economical forming of foundations, walls & columns, Dokaflex 15 is a new formwork solution for thinner residential concrete floorslabs (10-15 cm thickness) supported by a larger number of downstand beams. Sturdy components make up these formwork systems - Frami Eco combines a hard-wearing powder-coated hollow steel-section frame & a 15 mm Dokaplex form-facing to ensure an optimised product with a long service life & dependability over many reuse cycles. Scaffolding for hire: Another interesting

development is suppliers turning into service providers, offering clients scaffolding as well as trained workforce. Grant sees great scope for Harscoâ&#x20AC;&#x2122;s internationally certified products manufactured in India, which the company makes available on hire - CoS can hire to clients on a short term basis, which enables them to utilize capital for core activities rather than for the purchase of equipment. Traditionally in India, clients purchase sub-standard material & employ sub-standard & untrained labor to install their scaffolding, but this is changing. It makes sense to hire scaffolding for small projects & buy it for larger projects. Lightweight predominance: Across the industry, aluminum formwork is making very fast inroads because it is durable, readily available & lightweight. Customers have appreciated revamped versions of Alvert for vertical casting & Aludek for horizontal casting with drop head methodology, which offer a smooth finish & a five to seven days cycle. Now these systems can be used in slabs with beam grids. Another well received development is Almon, a lightweight, flexible, twist proof, durable system used primarily for monolithic casting. With this, each typical floor can be cast in four to five days instead of 15 to 18 days as required by a conventional system with better finishes, higher repetition & almost halving the labor cost. Aluminum formwork can be custom-designed to suit the needs of a certain project, & thereby facilitate the rapid construction of all types of architectural layouts. It is a total system forming the complete concrete structure with a high quality finish. Also, it is cost-effective, panels can be reused up to 100 to 200 times & the form system can be erected using unskilled labor. As greater numbers of construction CoS set their priorities for success, opportunities will continue to grow for providers of formwork & scaffolding.

||www.constructionmirror.com||

|| APril 2018 ||

CONSTRUCTION MIR ROR

uest Article

|| Shalabh Chaturvedi || || Head of Marketing || CASE India ||

Vibratory Tandem Compactor

CASE is proud to be the only company to achieve the milestone of rolling out 11,000 Vibratory compactors, CASE’s compactors are known for their excellent fuel efficiency, unmatched reliability, high centrifugal forces, and all round visibility. They are easy to operate, maintain and offer excellent operator comfort. With dual-drum drive technology, multiple amplitude and frequency combinations and impressive manoeuvrability. CASE compaction product range is of the top class quality and perfectly suited for various applications. Keeping up with the previous models, CASE launched its 752 EX Vibratory Tandem Compactor in EXCON 2017. The CASE 752EX is equipped with a fuel-efficient 3.9-liter 4-cylinder engine, with a mechanical injection system and internal exhaust gas recirculation that delivers 76 HP at 2200 rpm and torque of 332 Nm at 1300 rpm. This new-generation engine - developed by CNH Industrial subsidiary FPT Industrial, the world-leading manufacturer of engines, transmissions and powertrains - provides outstanding performance, fast response times, and best-in-class fuel economy. The 752EX’s operator compartment features a rotating operator seat and tiltable steering which gives excellent front and rear drum/ nozzle visibility, making the drive and compaction process easier and safer. The look of the machine is enhanced by foldable canopy for ease of transportation, new fuel and water tanks and new sophisticated instrument cluster. Soil compactors accounted for 48 per cent of the total compaction equipment market in 2015. Its share increased to 54 per cent in 2016 and further to 58 per cent in 2017. Due to long machine life and redeployment, the market will remain in the range of 4,500-4,700 units during 2018-2021 and with government’s focus on Infrastructure development and projects like Bharatmala,

Pradhan Mantri Gram SadakYojana, UDAN and Sagarmala the growth is set to increase in this year as well. CASE’s compactors are exported in the markets of Africa, South East Asia, Russia, Sri Lanka, Bhutan, Nepal and Middle East countries. Our products are receiving very good response in all these markets due to their incredible product quality.

CASE 845B Motor Grader

Graders are the best available machinery in their class and are engineered to give a very long product life. CASE prepared for the introduction of its graders in India with around 5,000 hours of testing in different terrains over two years to ensure the products were perfectly adapted to local conditions. The careful preparation paid off, as sales of the CASE graders immediately took off, making it the fastest growing brand in the grader segment in India. CASE reached the milestone of selling 100th motor grader long back in December 2015 and the number has crossed more than 250 now. Time bound projects need reliable machines and CASE just fits their requirements in every possible ways. CASE 845B HP is ideal for the road construction and the features which make it so are:Maximum productivity Unique CASE 845B with ‘Multiradiusmoldboard design’ that provides mixing effect that does not only push the material on ground but also rolls it, along with dual HP-150HP / 173HP, which gives a unique mix of power and fuel efficiency Advanced engine and hydraulics- To increase the machine’s durability, CASE focuses on the use of quality engines along with regular maintenance across their equipment which helps deliver excellent fuel efficiency. Consistency of controls and response of hydraulic operations, as the ability to make small and precise adjustments in the blade position has a significant impact on

profitability for the job. Optimise fuel efficiency–CASE 845B grader is equipped with 6.7-liter FPT engine with dual horsepower to match the power requirements of various applications and deliver optimum fuel efficiency. The Grader is offered with an Automatic ZF Transmission. The machine has a multi Curvature Mouldboard which reduces the resistance coming on the Engine and hence reduces the fuel consumption. Operator Comfort – CASE’s Motor Graders are equipped with closed air conditioning ROPS cabins whereas most of CASE’s competitors are providing open canopy. Air suspension seat further adds to the operator comfort. The operator can also customise all the working parameters of the machine to achieve excellent controllability and faster cycle times. The automated functions in the cab, which includes an electrohydraulic joystick to customize the reversing and steering sensitivity, makes the drivers’ job easy, allowing them to achieve shorter cycle times and boost their productivity Structural stability and ease of maintenanceCASE 845B focuses on providing easy engine compartment access along with daily service checkpoints for quick and efficient maintenance of equipment. Remote diagnosis and monitoring technologyEquipment are installed with a unique trip meter on the operator dashboard that continuously monitors the fuel consumption, hours operated and operating temperatures. Electronic indicators are also connected to the dashboard for safety related or operation related parameters. To enable easy access for customers to dealers and after-sales services, CASE has an extensive network of around 67 dealers with 200 plus touch points spanning the length and breadth of the country to support the products with spares and service even in remote locations.

CASE delivers its 5,000th Vibratory Tandem Compactor in India CASE Construction Equipment is the first company in the country to achieve this milestone in the construction equipment sector

CASE Construction Equipment, a brand of CNH Industrial, has today reached a milestone in India by delivering the 5000th Vibratory Tandem Compactor, manufactured locally in Pithampur. It is the only manufacturer in the construction sector to have achieved this landmark in India. A key handover ceremony was held at CASE India’s Pithampur, Indore manufacturing plant in the presence of CASE Top Management. On reaching the milestone, Mr. Abhijit Gupta, Brand Leader, CASE Construction Equipment India, commented, “CASE India is the market leader in the compactor segment, and holds a leadership position across the entire range of products. The milestone is testament to the quality of its equipment and the trust that the country’s construction operations put in the CASE brand. We at CASE India always ensure that our customers get the right match for their requirements and are provided with the after-sales

||www.constructionmirror.com||

service and parts support they need. Such an achievement gives us the confidence to further excel and aim for ever greater milestones.” The key was handed over by Mr. Ajay Aneja, National Head-Sales & Export to Mr.Suhan Shetty from M/s Uday Shetty Group of Companies. On receiving the key Mr. Shetty commented, “We own more than 25 CASE equipment including Backhoe Loaders and Grader. There is so much trust among the customers around the brand that when they think of buying compactors, CASE India enjoys the highest ‘top of the mind recall’. Operator comfort, unmatched reliability, high centrifugal forces, and 360-degree visibility are a few of the features which make them stand out from the other brands available in market.” Giving the customers ample choice based on their requirements and needs, CASE India launched the CASE 752EX Vibratory Tandem

Compactor at EXCON 2017. The CASE 752EX Vibratory Tandem Compactor is equipped with a fuel efficient 3.9-litre four-cylinder engine, with a mechanical injection system and internal exhaust gas recirculation, which delivers 76 hp at 2200 rpm and 332 Nm of torque at 1300 rpm. This new-generation engine - developed by sister brand FPT Industrial, worldleading manufacturer of powertrain, transmissions and axles for industrial vehicles - provides outstanding performance, fast response times, and best-in-class fuel economy. In the last 28 years of operation in India, CASE has won multiple awards, including, “Fastest Growing Construction Equipment Company” a title bestowed during the 8th annual Construction World awards in 2010, “Best Seller – Compaction Equipment” awarded by Equipment India for five consecutive years and double-winner in the prestigious ‘Equipment Times Yellow Dot Awards’ where the company obtained the Best Construction Company of the Year 2017 award for the medium segment and Best Design award for its new 752EX Vibratory Tandem Compactor. CASE Construction Equipment sells and supports a full line of construction equipment around the world, including the No. 1 loader/ backhoes, excavators, motor graders, wheel loaders, vibratory compaction rollers, crawler dozers, skid steers, compact track loaders and roughterrain forklifts. Through CASE dealers, customers have access to a true professional partner with worldclass equipment and aftermarket support, industry-leading warranties and flexible financing.

|| APril 2018 ||

CONSTRUCTION MIR ROR

uest Article

Press note on Stationary Concrete Pump and Rack & Pinion Construction Elevator

kyscraper, super tall building in the city is usually characterized as a landmark. For smooth construction, it is necessary to have experts who can manage technologies from material to maintenance, and apply them to the work. The key element technologies of skyscrapers are construction of mega mat foundation, delivering architectural load into the ground, structural system optimization, high-rise building measurement technology, and construction equipment technology. Concrete pumps technologies are essential for high- rise buildings. Today various range of concrete pumping machines are available that are economical and smart. It also helps in placing the concrete at the desired height and place.

Stationary Concrete Pump (with i-Pump technology) Mr. Sailaj Verma Senior Vice President sales, KYB-Conmat India shares about the complete range of KYB-Conmat i-Pump technology machines. He says, “KYB-Conmat pursues a research and development (R&D) strategy that is closely linked to its client’s expectations. This need alignment and the

CONSTRUCTION MIR ROR

|| APril 2018 ||

perpetual success of the stationary concrete pumps have given the industry, a whole range of i-Pump technology machines which includes the SCP 5000 & SCP 7500. The Stationary Concrete Pump with Intelligent Controls have many features like S-Valve technology, Robust Electronic Operation Controls & Management with manual overdrive, also its suitable for high pressure pumping and Indian ambient conditions & that’s whys it’s one of the most compact pump in its class.” He adds, “The i-Pump technology Concrete pump makes transfer & placement easier and faster for casting of civil structures. It also reduces manpower requirements at the site and also avoids human errors in the process. This makes the i-Pump technology machines very economical to run and are environmentally friendly.”

Rack & Pinion Construction Elevator

In the early day’s wood scaffolding were used by labours as the way to bring the material at different elevations of the building. This was very unsafe for human life, labour oriented, time consuming and not accurate as well, which was thus delaying the project on site, this gave birth to the rope type elevator which got into further innovation to R&P Elevator which is used for man &

material movement and is self-erecting. Safety during operation is the major concern of the industry. To tackle this challenge, KYB-Conmat elevator machines have been designed, keeping in mind, the human and the machine safety. KYB-Conmat has 1, 1.5 & 2 ton capacity R&P construction elevator, which is used for passenger movements and also to carry goods and materials that can use used for under construction buildings. The operation of elevator is completely automatic PLC based with HMI system. Construction elevator of KYB-Conmat has a number of safety features, one of which is the safety device that ensures that even in a complete failure of the drive the cage will not fall down. A mechanical, spring loaded safety brake is a standard feature in all KYB-Conmat elevator models. It improves the safety and reliability of the elevator in everyday use. The safety brake is well protected from dirt and dust, which is practically maintenance free.

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andhi Automations Pvt Ltd - India’s No.1 Entrance Automation and Loading Bay Equipment Company. This widely recognized position has been achieved over years of hard work, innovation, commitment to quality and reliable customer service. The company is also proud to be certified to ISO 9001 : 2008. Since its inception in 1996 we have been manufacturing, importing, distributing and installing products that are problem free and easy to operate. The company offers complete logistics solutions by providing Dock Levelers, Dock Shelters, Sectional Overhead Doors and Dock Houses. Electro-hydraulic Dock Levelers offered by Gandhi Automations are not only “a bridge for connecting a vehicle”, but also facilitate fast, smooth and safe transition by compensating the difference in heights between the loading bay and the vehicle. This contributes to minimizing energy used and savings on heating and chilling costs resulting in maintaining the quality of the transported goods. Dock Levelers offered by Gandhi Automations are designed as per EN 1398 standard for the most demanding loading and unloading operations. Efficient loading & unloading the goods: The importance of efficient loading the goods has always been evident, and it has increased over the years, essentially for two reasons: the lesser availability and the higher cost of manpower. Consequently lesser qualified manpower is being utilised

||www.constructionmirror.com||

which leads to damage in the goods. The cost of loading and unloading the goods can be calculated precisely and is exactly definable, which allows for a scientific approach to find out the investment that goes into the process. Gandhi Automations has always designed solutions based on such scientific approach and feedback from clients. The Dock Levelers offered by the company ensure loading and unloading with lesser effort and minimal cost. It is possible to load and unload your products in a safe way and in the process obtain remarkable energy savings. The loading bay remains with the Dock Leveler in rest position and the Sectional Overhead Door closed, until the vehicle is positioned. The driver drives back centring to the Dock Shelter and stops the vehicle the moment it gets in contact with the bumpers. The Sectional Overhead Door is then opened only when the vehicle is positioned, brakes applied and engines shut off .This eliminates the exit of hot air, intake of cold air (or the opposite in hot and inside conditioned places) and intake of exhausting gases in the warehouse. After the Sectional Overhead Door opens, the lip of the Dock Leveler connects to the truck bed for loading / unloading to take place.

the Sectional Overhead Door is closed, without moving the vehicle. The vehicle then departs at the end of the process. Following are the two types of Dock Levelers a) Radius Lip Dock Levelers Radius Lip Dock Levelers allow the dock to connect with the truck bed, thus making it possible to drive directly on and off with forklift trucks etc. The self-cleaning lip hinging system does not retain rubbish with automatic end-of-run, so as to keep the 25 mm security distance between the folded lip and structure as per EN 1398 & EN 349. b) Telescopic Lip Dock Levelers Telescopic Lip Dock Levelers are ideal for connecting vehicles unable to drive near dock i.e. sea containers, side loading railway wagons etc. These types can be supplied with a lip extending up to 1 m. Gandhi Automation’s Dock Levelers are equipped with the most secure safety devices and accessories.

At the end of the loading/ unloading the Dock Leveler is put in rest position and

|| APril 2018 ||

CONSTRUCTION MIR ROR

Tenders

Ref. Number :

28517799

Ref. Number :

28702455

Ref. Number :

28791095

Requirement :

Design, engineering, procurement and construction, including operation and maintenance of all india institute of medical sciences.

Requirement :

Construction of Two Laning Roads with Paved Shoulders in Nanded, Parbhani, and Hingoli Districts on Hybrid Annuity Mode

Requirement :

Document Fees :

INR 150,000

Tender Estimated Cost :

INR 14,313,600,000

TPS 3 x 660 MW Expansion Project â&#x20AC;&#x201C; Construction of 2nd Raising of Existing Khasara Ash Bund From T.B.L. 308.50 ML to T.B.L. 312.00 M With Construction of Concrete Dam (Broad Crest Weir Structure), Approach to Drain Wells and Raising Height of Drain Well No. 1, 2 & 3 Construction of Ash Compartment for Khasara Ash Bund at TPS.

EMD :

INR 72,007,000

Closing Date :

7/05/2018

Tender Estimated Cost :

INR,100,700,000

Document Sale To :

02/05/2018

Closing Date :

25/04/2018

Location :

Maharashtra - India

Location :

Punjab - India

Ref. Number :

28715387

Requirement :

Construction of State Sports Academy cum International Standard Modern Cricket Stadium.

Ref. Number :

28555532

Requirement :

Construction of Bridge over River Bidya connecting Godkhali to Gosaba Bazar in the District under Highway Division (Deposit Work)

Document Fees :

INR 25,962,693

Tender Estimated Cost :

INR 2,596,269,318

Closing Date :

11/05/2018

EMD :

INR 66,636,000

Tender Estimated Cost :

INR 6,563,590,962

Closing Date :

8/05/2018

Document Sale To :

11/05/2018

Location :

Bihar - India

Location :

West Bengal - India

Ref. Number :

28247061

Ref. Number :

28812082

Requirement :

Rehabilitation And Upgradation To 2 Lane With Paved Shoulder From Existing Km 195.175 To Km. 220.00 (Design Chainage Km. 71.300 To Km. 95.947) Excluding Existing Chainage 199.800 To Km 201.900 (Design Chainage 76.400 To Km 78.400) On Dharasu To Yamun.

Requirement :

105 No. Road Works And 4 No. Bridges Works At Various Regions.(Scanned Image - telugu Tender)

Document Fees :

INR 5,000

EMD :

INR 50,000

Tender Estimated Cost :

INR 391,000,000,000

Closing Date :

24/05/2018

Document Sale To :

24/05/2018

Location :

Jharkhand - India

CONSTRUCTION MIR ROR

|| APril 2018 ||

Tender Estimated Cost :

INR 3,735,186,000

Closing Date :

30/04/2018

Location :

Telangana - India

Ref. Number :

28666887

Requirement :

Raising of Eastern and Western side Tailing Dam from RL 198m to RL 208m and Construction of Spillway Gate and Channel at Both End (North and South) at Turamdih

Document Fees :

INR 1,500

EMD :

INR 3,113,950

Document Fees :

INR 5,900

EMD :

INR 5,491,833

Tender Estimated Cost :

INR 549,183,304

Closing Date :

2/05/2018

Location :

Maharashtra - India

Ref. Number :

28869739

Requirement :

Construction of Entrance P l a za , Yat r i Swa gat Kaksh, Kirtan Hall 1 & 2, Exhibition Hall, Roads, Parking, Pumproom, Soak pit, Septic Tank, Under Ground Sump, Rising Main, Distribution Network incl. Electrical works for Sant Nagari Project at Mahor, Tal.

Document Fees :

INR 18,000

EMD :

INR 4,732,900

Tender Estimated Cost :

INR 473,284,310

Closing Date :

24/05/2018

Document Sale To :

24/05/2018

Location :

Gujarat - India

Ref. Number :

28811341

Requirement :

Construction of shed and building including sanitary, water supply, electrical wiring including supply and installation and other misc work.

EMD :

INR 2,469,500

Tender Estimated Cost :

INR 246,900,000

Tender Estimated Cost :

INR 311,394,889

Closing Date :

27/04/2018

Closing Date :

7/05/2018

Location :

Jharkhand - India

Location :

Chhattisgarh - India

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Projects State Government | Tamil Nadu - India | PID: 175049 After Race Course and railway station, it is the turn of Gandhipuram bus stand to become a Wi-Fi zone Former chief minister J Jayalalithaa had announced free Wi-Fi project for various locations across the state. In 2017, Rs 8.50 crore was allotted for this purpose. “We have set up Wi-Fi zones at Marina beach, Chennai, Gandhipuram bus stand, Salem bus terminus, Trichy bus terminus and Madurai MGR bus stand under Amma Free ‘Wi-Fi’ zones,” said an official Chief minister Edappadi K Palaniswami inaugurated the facility through video conferencing from Chennai on Friday. Commuters can access Wi-Fi for free for the first 20 minutes and Rs 10 for every one hour after that. The download speed may vary depending on the number of concurrent users in the hotspot. The user can continue browsing beyond 20 minutes by logging in as a premium user and can get the guaranteed 4 MBPS download speed Officials said that the Tamil Nadu Arasu Cable TV Corporation was implementing the project In Gandhipuram, thousands of commuters come every day. “This Wi-Fi will be useful for them, especially students,” said an official adding that the users will have to select the Wi-Fi and register after which they will get a one-time password. Once that is entered, they can use Wi-Fi for free for first 20 minutes. “After first 20 minutes, a nominal Rs 10 per hour will be charged,” he said The city corporation has already installed Wi-Fi at Race Course and corporation main office. The railway department installed Wi-Fi at the central railway station “The idea is to bring all the major locations under Wi-Fi zones,” said an official. The pilot project will get to see a lot of added attractions in the coming months In the backdrop of high mobile connectivity in the state, former chief minister J Jayalalithaa announced in 2016 the Wi-Fi zones in bus stands, commercial complexes and public parks in the state and promised to introduce in 50 areas initially | Updated on: 07 - Apr - 2018 Corporations/ Associations/ Others | Haryana - India | PID: 175115 Gurugram Metropolitan Development Authority (GMDA) has decided to build 328 bus shelters on 11 city routes These bus shelters are part of the commuter friendly initiative by the GMDA. Officials of the GMDA

and Gurugram Metropolitan City Bus Limited (GMCBL) kicked off the work of the bus queue shelters on Monday at Huda City Centre Metro Station All the bus shelters will be readied in 10 months. The estimated cost of per bus stop shelter will be around Rs 10 lakh 50 thousand. Besides, around 125 Bus stop shelters are being built by Municipal Corporation Gurugram (MCG) GMDA will erect 328 bus queue shelters on 11 different routes across the city in a phased manner. In the first phase around 164 queue shelter will be built and rest 164 will also be built in the second phase,” Chief Executive Officer (CEO) at GMCBL, Dr Chander Shekhar Khare, said The work has been started on Route No 3. On this route around 49 bus stop shelters will be built between Huda City Centre to Dharam puri (Shobha city). Meanwhile, 46 shelters will be constructed by the GMDA on the same route. Mo-reover, on route no 4 between Ghata to Palam Vihar, there will be around 63 bus stop shelters by the development authority It may be noted that Gurugram Metropolitan Development Authority in collaboration with Gurugram Metropolitan City Bus Limited, is planning to launch around 500 CNG buses in a phased manner. The authority is working on a plan to launch at least 200 buses in the first phase by August 2018. The GMCBL has prepared an action plan on the project at least 200 buses for 11 routes in the first phase and 25 routes have been finalised for 500 buses. The 11 routes will be from Gurugram bus stand to Manesar, Harsaru village to Dundahera, HUDA City Centre Metro Station to Dharmapuri (Shobha City), Ghata village to Palam Vihar, Basai chowk to HUDA City Centre metro station, Railway station to HUDA City Centre Metro Station, Gurugram bus stand to Farrukhnagar, Bus stand to Palam Vihar, Iffco Chowk to Sohna Road (Badshahpur), Bus stand to Ambience mall and Sector 56 to Dundahera village, an official said | Updated on: 10 - Apr - 2018 Central Government/Public Sector | Karnataka - India | PID: 174362 Water Resources Minister M.B. Patil has said that the bridge-cum-barrage at Galgali village would be strengthened, on the lines of Rajolibanda dam built on the KarnatakaTelangana border Speaking after laying the foundation stone for the strengthening of Galgali barrage in Bilagi taluk of Bagalkot district, he said

that by increasing the height of the barrage, it would be easy to address the drinking water problem of Hipparagi, Chikkapadasalagi, Galgali and Kolhar villages of Bagalkot and Vijayapura districts. 1.22 tmcft of additional water would be stored in the barrage after the increasing the height, benefiting thousands of farmers and villagers in summer Mr. Patil said that a 120 crore project proposal for increasing the height of Hipparagi dam and construction of low-level jackwell at Kolhar village was pending before the government. On giving a justifiable compensation to those losing land to irrigation projects, he said that an expert committed headed by Revenue Minister Kagodu Thimmappa has been constituted. While the government has approved 2,000 crore irrigation projects for Bagalkot, 13,000 crore was being spent in Vijayapura for similar projects | Updated on: 17 - Mar - 2018 Corporations/ Associations/ Others | Assam - India | PID: 175006 In order to add to the road connectivity in the north eastern region, the finance ministry has cleared the much-awaited six-lane road bridge project connecting Bharalumukh in Guwahati with North Guwahati for external funding, Guwahati Metropolitan Development Authority (GMDA) said, elaborating that that the project outlay is estimated at Rs.1,890 crore of which BRICS New Development Bank (NDB) financing is proposed for Rs.1,512 crores. Besides the NDB funding, the state government will contribute the remaining portion the investment. Till now a fund of Rs.250 crore has been provided by the state government for preparation of DPR and preliminary costs like land acquisition and rehabilitation among others. The proposed bridge will serve as connectivity between North Guwahati and Guwahati, which will provide relief from high congestion of traffic and also help in the planning growth of the Guwahati Metropolitan Area and expansion of the city to the north bank. The total length of the bridge on the river is 1,600 metre measured from south to north bank. Out of this, 1240 metre will be designed as a multi-span extra-dosed bridge with individual span length of 200 metre between consecutive pylons | Updated on: 06 - Apr - 2018

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CONSTRUCTION MIR ROR

2nd Buildings India 2018 Expo ...................................... 53

L&T Construction ..............................................................

8th India Warehousing Show 2018 .............................. 77

Liugong India ....................................................................... Phy-5

Aggcon Equipments International Pvt. Ltd. .............. 79

Manitowoc Cranes India ................................................... 11

Akona Engineering Pvt. Ltd. .......................................... 45

Matrix Security Solutions ................................................ IBC

Ammann Apollo .................................................................. 09

Po Tech India ...................................................................... IFC

Apollo Tyres Ltd. .............................................................. 27

Tyrexpo India 2018 ............................................................ 31

Ashirvad Pipes Pvt. Ltd. .................................................. 23

UltraTech Cement Ltd. ..................................................... Phy-1

Automation Expo 2018 ..................................................... 61

Uniter Engineering Products ..........................................

Concrete Show India ........................................................ 85

Waken Multitech Private Limited ................................. 13

Finolex Industries Limited .............................................. 19

Warehousing and Inventory Optimization .................

Gandhi Automations Pvt. Ltd. ........................................ Phy-3

World Environment Expo ................................................. 25

IFAT India 2018 ................................................................... 89

WorldBuild India ................................................................ 54-55

CONSTRUCTION MIR ROR

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EVENT DIARY April 19-21 2018

Bombay Exhibition Center, Mumbai, India www.mmmm-expo.com

WorldBuild India an initiative by ITE - ABEC, the proud owners of the world’s largest portfolio of build and design shows, is positioned to witness the ever growing story towards the future of Indian construction. It offers an exhibition for the industry by the industry taking into consideration the current affairs, issues, trends and topics during the duration of the exhibition.

23-25 May 2018

Pragati Maidan, New Delhi www.buildingsindia.com

Sustainable Infrastructure is an integral part of the smart cities mission. Driving a nation’s social and economic development, cities are the centre of resource consumption. Today, as people moving towards urban areas, cities are facing the pressure to accommodate the growing population.

May 24-26 2018

BEC, Goregaon, Mumbai www.concreteshowindia.com

Concrete Show India is a part of UBM’s global exhibition portfolio held in continents across the America’s and Asia. The expo provides a unique platform to corporations in the core concrete, construction and infrastructure space to present the latest developments in technology, practices and policies.

June 07-09 2018

Chennai Trade Center, Chennai www.roofindia.com

India is the 2nd fastest growing major economy in the world and inspite of the global economic scenario, the Building Construction & Infrastructure industry in India continues to boom.

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June 21-23 2018

19-21 September 2018

Pragati Maidan, New Delhi, India.

Mumbai

www.capex.co.in

indiawarehousingshow.com

India Warehousing Show is all set to produce its 8th edition. The show takes pride in being the most popular, innovative and business-creating show among the warehousing, logistics, supply chain and allied industries.

CAPEx is an International trade fair exclusively focused on emerging building materials and technologies.This includes mechanical, electrical, plumbing & fire services (MEPF), green building products etc, which are environment friendly and energy saving.

June 21-23 2018

Pragati Maidan, New Delhi www.tyrexpoindia.com

Increase your brand awareness and establish a foothold in the growing Automotive industry in India. Showcase your products, services and business solutions to over 3,500 industry players from the Tyres, Automotive Repair & Maintenance, and Tyre Accessories.

October 15-17 2018 Bombay Exhibition Center, Mumbai www.ifat-india.com

IFAT India is India’s leading environmental trade fair for water, sewage, refuse and recycling. The last event, covering approximately 5,000 sqm of exhibition space, attracted 136 exhibitors from 11 countries. More than 4,100 trade visitors benefited from this ideal platform for successful networking with representatives from the industries and municipal sectors.

August 03-05 2018

31st oct, 1-3 Nov-2018

MMCC Gandhi Nagar, Gujarat

ECO Park, Rajarhat, Kolkata

www.trucktrailerntyreexpo.com

The business of Truck, Tyre and Trailer is an emerging and evolving business in India which has a lot of scope for new opportunities for manufacturers and consumers alike through innovations in technology and change in customer service approach.

www.immeindia.in

The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India, partnering industry, Government, and civil society,through advisory and consultative processes.

29th Aug to 1st Sep 2018

December 11-14, 2018

Bombay Exhibition Centre, Mumbai

Delhi

www.automationindiaexpo.com

After delivering a grand and successful event in 2017, Automation Expo, the largest Automation & Instrumentation exhibition in South-East Asia is all set to make a mark in 2018 as well. Under the valiant leadership of Dr. M. Arokiaswamy, IED Communications Ltd has been successfully hosting Automation Expo and achieving its objective to fuel innovation and growth since the past 14 years.

www.bcindia.com bauma CONEXPO INDIA is your community for doing business in India. Exhibitors, trade visitors and decision-makers meet here.

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CONSTRUCTION MIR ROR