Construction Mirror Magazine December Issue 2017 by Construction Mirror

An Outlook of the Construction Equipments & Infrastructure Industry

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 Business Head-West & South Pradeep Kumar - 09702818098 pradeep.k@constructionmirror.com

In the term of infrastructure improvement India is consentingly proving the better plan to upgrade the back bone of the country “the roads and highways” e:g Bharatmala project which is seems to transform the Indian logistics and transportation to the higher level, that open the ways to the construction sector to brings new technologies and products and services for the growth. Many companies brushing up their rental business as the rental business is gaining popularity now days. According to them the product once sold can be resale or to be provided to rental which cost them beneficial. This business gaining popularity, yes it is booming business for most of manufactured companies also, rest come and welcome the Excon 2017 the biggest expo for the construction and infrastructure business. Government announced to build over 50 lakh of houses in rural areas, 1173 smart cities build in Kandla Port and many more government plans and infrastructure story inside, let’s read our cover story about ups and down in real estate business.

Sales & Marketing Neha Chauhan neha@constructionmirror.com

Happy Reading….

Hemant Kumar hemant@constructionmirror.com Ms. Manju manju@constructionmirror.com Subscription Praveen Chauhan

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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

Editor

INTERVIEW

Contents 30

INTERVIEW

Rajinder Raina G.M. - Marketing Escorts Construction Equipment

Piero Guizzetti CEO MB Crusher India Pvt. Ltd.

INTERVIEW

42 48

INTERVIEW

Ramesh Babbar Director & President Columbia Machine Engineering (I)Pvt. Ltd.

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| Jitender Aggarwal|| | Director|| | Aggcon Equipments International Pvt. Ltd. |

Guest Article Layher scaffolding systems AJAX FIORI CASE INDIA Gandhi Automations Malik Trading & Demolition Supreme Industries Limited Sun Roofing Company

86 88 89 92 93 90 90

Tenders

Projects

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Cover Story Estate of Indian Construction Sector: A Brief Review

Special Theme Motor Graders and Graded Business Strategies

Focus Earth Moving Equipment Market: Scenario, Dynamics, Potential, Challenges

Special Coverage Top Trends in Construction Machinery Hydraulics

Industry Focus Mining Equipment Market is Flooded With Brands and Decision Making is a Challenge

Industry Coverage Material Handling Equipment Industry: A Brief Review

Special Focus Construction Equipment: Piling, Compactors, Rental, Financing

Special Feature A Brief Review on Engineering, Procurement and Construction Sector trends

Industry Feature Engineering Trends in Making Structural Things and the Future of PEBs

Advertisement Index

Event Diary

News: Of the Month

SREI Equipment Finance Files Draft Papers With SEBI for IPO

Srei Equipment Finance Ltd, a whollyowned subsidiary of Srei Infra Finance Ltd, in Nov’17 filed its so-called draft red herring prospectus (DRHP) with the SEBI for an IPO. According to the DRHP, the share sale includes a fresh issue of Rs 1,100 Cr, while Srei Infra Finance will offer 4.4 mn shares in an offer for sale. Srei Equipment Finance offers loans for purchase of equipment for construction & mining, earthmoving,

material handling, road construction, concrete mixing & material processing. In the year to March, Srei Equipment Finance clocked Rs 2,495.33 Cr in revenue and a net profit of Rs 148.84 Cr. It is the 1st subsidiary of Srei Infra Finance to file a draft prospectus for an IPO. The filing of Srei Equipment Finance’s DRHP also comes at a time when the Indian capital market has been witnessing a spurt in IPOs. This year, IPO fundraising has breached the all-time high seen in 2010, where 64 CoS raised Rs 37,534.65 Cr. Until Oct’17, the Indian primary market has witnessed 30 IPOs with CoS raising Rs 47,099 Cr, according to data from primary market tracker Prime Database. In 2016, 26 CoS raised Rs 26,493.8 Cr through the IPO route.

SBI’s Construction Equipment Loan Scheme

In a bid to expand their businesses, MSME sector always has requirement for working capital. From manufacturing to trading to services, different businesses have requirement for funds to generate more revenue, expand and generate employment. One of the sectors which needs funds on a timely basis is Construction. SBI’s Construction Equipment Loan Scheme is helping entrepreneurs making it big

Road CoS Hit Fast Lane on Govt Spend

Construction equipment sector is on a roll following the massive govt push on roads through projects like Bharatmala for highway construction and PMGSY, which aims to improve rural connectivity. The investment in road sector is expecting yearly growth of 20% over the coming years, triggering demand for construction machinery and vehicles. Investment cycle has started with road sector construction equipment industry to grow at a compounded annual growth rate of 20%-plus. In Aug & Sep this year, the construction equipment industry grew 25-30% and the momentum is expected to continue for the rest of this fiscal. The Union cabinet recently cleared Rs 7 lakh Cr project to develop 83,677 km of highways in 5 years, which includes the Bharatmala project, thus 8

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providing much-needed booster dose to the road industry. Under the PMGSY, a spending of Rs 88,185 Cr is envisaged by the central and state govts to construct 109,302 km of rural roads over the next 3 years. In addition, 5,411 km roads worth Rs 11,725 crore will undergo upgradation and new roads in 44 districts are to be completed by 2019-20. Rating firm Crisil estimates that India needs an expected spend of around Rs 3,000 crore per day over the next 5 years for building Infra. All this would translate into robust incomes and profits for construction companies in roads and other sectors, many of which are listed such as Ashoka Buildcon, IRB Infra, Sadbhav Engineering, PNC Infratech, among others. The EPC contract CoS in the infra space have started doing much better. They are getting contracts for projects like roads and irrigation. Govt has committed huge capital outlay in developing rail and highway networks besides launching mega affordable housing projects. Given these facts, it is absolutely essential for the earthmoving and construction equipment industry to collaborate with all stakeholders including govt agencies.

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in life. Sanjay Srivastava, General Manager, SBI, said, “Make in India and Infra are focus of the Govt of India. We need to have a set of contractors ready with equipment and machinery. We have this product with competitive rate of interest. We have tied up with OEMs. We have 300 borrowers and have Rs 500 crore exposure. Our target is to touch Rs 1000 crore within a short span of time. The scheme funds purchase of new construction equip, construction activities such as mining, material handling, earth moving, etc. SBI offers term loan, dropline overdraft facility, competitive interest rates linked to MCLR. SBI’s scheme have made several businesses successful and world-class.

Equipment CoS Breathe Easy After GST Cut

Reduction in the GST on mining and construction equipment to 18% from 28% will help support infra development across segments. It is a big relief for most of the industry. But for 15%of the products, the rate continues to be 28%. Pre-GST duty was under 20%. Sales declined 35% in Jul’17 due to GST implementation. However, things returned to normal and the overall growth was not affected as the industry grew 19%in Q1

and 22% in Q2. And the industry will sustain this in the current fiscal. So far, only road construction has driven growth, but the Railways has also started to offer some opportunities. Leasing will become cheaper post-GST. Earlier, they had excise duty and sales tax, and on top of that service tax. The total rate worked out to 30-32%. Now, leasing CoS will charge only 18% GST. So, it will benefit them a lot.

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News: Of the Month

BKT Plant Receives SQEP Silver Award for Supplier Quality Excellence Process

Balkrishna Industries Ltd.’s Chopanki, India, also known as BKT, received the prestigious SQEP Silver Award for Supplier Quality Excellence Process Certification at an official ceremony in Seregno, Italy, on 15 Sep’17. Caterpillar bestows the award

on suppliers that “are able to achieve the highest levels of quality and process control,” says BKT. The Indian tire manufacturer not only joined Catepillar’s “Program for Excellence,” but also obtained original equipment homologations for two of its tires: the Earthmax SR 47 and Earthmax SR 45. The tires will be fitted on different models of CAT equip. Officially inaugurated in 2006, the Chopanki site specializes in the production of all-steel radial tires for the industrial and OTR sectors. BKT also has tire plants in Aurangabad, Bhiwadi and Bhuj, India, plus a modern mold plant in Dombivali,

India. Earthmax SR 47, will be fitted on the CAT 773E dump truck, which has a capacity of 60 tons. The tire has been developed specifically for rigid dumpers for use on severe surfaces. It features a long life-cycle thanks to the deep E4-class tread and the special lug pattern designed for the purpose of providing excellent traction in addition to regular tread wear. This pattern is also available with a special cut resistant compound. Ensuring enhanced resistance against cuts and punctures. Earthmax SR 45, will be fitted on the Cat 770G dump truck, which has a capacity of 40 T. Also designed for rigid dumpers, the tire is made of a special compound that is particularly resistant against cuts, abrasion and impacts, risks that often occur under extreme operating conditions. This results in significantly reduced equipment standstill times along with increased productivity. The tire also features a special lug design that provides extraordinary traction. The deep tread ensures a long tire life.

BEML Looking to Produce Underground Mining Equipment in Durgapur

India’s Industrial Production Up 3.8% in Sep’17

State-owned Bharat Earth Movers Ltd. is looking to get into the manufacturing of underground mining equip. The defence public sector utility’s construction & mining vertical mostly manufactures open cast mining equipment. According to BR Viswanatha, Director, Mining and Construction, BEML, the plan is to use the now closed mining machinery facility of Mining and Allied Machinery Corporation (MAMC) in Durgapur for manufacture of these equipments. The company has appointed SBICAP to conduct a feasibility study on the same. MAMC, which had gone into liquidation, was taken over by a consortium of CIL, DVC and BEML in 2010 for ₹100 Cr. BEML holds 48% stake, while DVC and CIL hold 26% stake each. “SBICAP is expected to

Industrial production based on the general IIP expanded 3.8% YoY in Sep’17 against a 2.5% growth recorded in Sep last year. Quick estimates of IIP released by the CSO showed. Industrial production recorded a cumulative growth of 2.5% for Apr-Sep’17 period. Production in the mining, manufacturing and electricity sectors recorded growth rates of 7.9%, 3.4% and 3.4% for September 2017. The 3 sectors recorded cumulative growth rates of 3.9%, 1.9%, 5.7%, respectively, during Apr-Sep’17. 11/23 industry groups in the manufacturing sector have shown positive growth during Sep’17. Industry group ‘manufacture of pharmaceuticals, medicinal chemical and botanical products’ has shown the highest positive growth of 26.4%, followed by ‘manufacture of computer, electronic and optical products’ 13.2% and ‘manufacture of motor vehicles, trailers and semi-trailers’ 13.1%. On the other hand, the industry group ‘other manufacturing’ has shown the highest negative growth of (-) 27.1%, followed by ‘manufacture of tobacco products’ (-) 23.1% and ‘manufacture of electrical equipment’ (-) 19.2%. Production of primary goods increased by 6.6% in Sep’17 while capital goods production increased by 7.4%, intermediate goods production grew 1.9% and Infra/construction goods production expanded 0.5%. Production of consumer durables and consumer non-durables recorded growth rates of (-) 4.8% and 10%, respectively.

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come out with this report in the next two to three months. Based on that, we will take a call,” Viswanatha told on the sidelines of the 7th Asian Mining Congress. This incidentally is not the first time that BEML has tried to make MAMC viable. Coal Mining Planning and Development Institute had earlier been entrusted to prepare a feasibility report for the closed MAMC unit. Nothing much came of it. “It is a huge facility. We had some plans earlier but it did not take off. We are hopeful that the report being prepared by SBICAP will come up with a viable plan,” he said. Apart from mining and construction, BEML or Bharat Earth Movers is also into rail and defence equipment manufacturing. It is also bullish on growing its order book this year.

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News: Of the Month

SC Bans Pet coke

Accidents at Workplaces in India Under Reported

Expressing concern over ‘under-reporting’ of accidents at workplaces in India, the British Safety Council (BSC) has said that “there is no requirement to report accidents and ill health in many industry sectors.” The BSC, referring to a research paper ‘An estimate of fatal accidents in Indian construction’ by Dilipkumar Patel and Kumar Neeraj Jha, said the construction industry contributes to 24.20% of occupation fatalities, the highest in the country annually. About 48,000 workers die in India due to occupational accidents of which 38 fatal accidents take place every day in the construction sector. Overall, workplace deaths are twenty times higher in India than UK. “India, with 1.25 bn population, has a strong workforce of 465 mn. However, only 20% of them are covered under the existing health and safety legal framework. Though there are laws to address these health and safety

concerns, their implementation is a big task due to lack of adequate manpower,” said Mike Robinson, chief executive officer of the BSC, addressing the media to announce the opening of the BSC office in Mumbai. Citing a 2012 report of the Asian Monitor Resource Centre titled ‘Invisible Victims of Development: Workers Health and Safety in Asia’, he further pointed out that there is just one factory inspector for 506 registered factories. He added there is poor incentive structure for health and safety function. The BSC, a charity and membership organization, is an expert in workplace health, safety and environmental management. While it has opened an office in Mumbai, it has also formed strategic partnership with the NIST institute, a leading safety training org, which has offices across India.

Supreme Court (SC) banned the use of pet coke and furnace oil on 24 Oct’17, in the states of UP, HR, RJ with effect from 1 Nov’17, in order to fight pollution. CoS which are expected to be impacted are Shree Cement, JK Cement, JK Lakshmi Cement, Ambuja Cements, India Cements and ACC, given their usage of pet coke levels, especially in these particular states. As per media sources, if the CoS resort to the international coal (~15% expensive than pet coke) as a replacement to the pet coke, they would require to take a price hike of ~Rs10/bag in order to pass on the burden. CoS have already announced price hikes in the tune of Rs 20-25/bag, however, the key thing to watch is the sustainability of the price increase. Further,

cement CoS keep pet coke inventory of ~45-60 days. CoS looking to shift the inventory to other states might have to incur a one-time freight cost. However, SC has requested all states & UTs to move forward towards a nationwide ban on pet coke and furnace oil usage in order to fight pollution. If this ban comes in action, then all the cement companies would have to face the brunt of it, however, production is unlikely to be impacted negatively as most of the cement plants are multi-fuel based and can quickly shift to coal. Moreover, as per media sources, CoS are likely to appeal against the order as they are complying with the current norms for pollution control.

SAIL Targets 16% Market Share “For SAIL, the new marketing strategy, with customerretention through enhanced customer experience as its mantra, is a way-forward to consolidate its market leadership,” Chairman P.K. Singh said. The govt’s ‘growth-oriented policies and its focus on augmenting Infra through improved rail, road and air connectivity, and investment in ports and inland waterways, as well as the Make-in-India drive’ all translate into increased demand, said SAIL officials. Harnessing this opportunity through an aggressive customer-centric marketing policy, SAIL is aiming to increase its market share, by volume, from 14% to 16% by 2018-19.“With stabilisation of most of our new and modernised mills, we are diversifying our product basket with value-added and ready-to-use products. SAIL will introduce new and niche brands also,” Mr. Singh said after interacting with SAIL’s marketing team. The marketing strategy would be focussed on increasing share of value-added steel in the basket from 37% now to 50% by next fiscal. It would also see the recast of 12

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the marketing model from the present dealershipbased mode to a distributor-based model with focus on key-account management and increases in export volume and reach. SAIL’s present capacity of 17 MT of saleable steel production will increase to 21.4 MT on completion of its more than s 60k Cr modernisation programme by this fiscal. “SAIL is aiming to seize the growing opportunities in the domestic steel market where demand is set to rise due to the thrust on Infra, housing and smart cities,” SAIL executive director R.K. Singhal said. Products from the modernised facilities such as universal rail mill at Bhilai, new plate mill at Rourkela, structural mills and wire-rod mill at Burnpur and Durgapur and the cold-rolling mill at Bokaro will contribute to SAIL’s value-added product basket. These products mainly target the construction sector including roads, bridges, tunnels, housing, railways, industrial usage like power transmission boilers, pipes and also niche segments like defence and space research, company officials said. ||www.constructionmirror.com/net||

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News: Of the Month

Cement Sector Disappointed With New GST Rate

Cement industry is disappointed that GST Council meeting at Guwahati has not brought any rate relief to it. Belying expectations, the GST rate for the cement

industry continued to be pegged at 28% even after the Guwahati meeting of the GST Council.. S Chouksey, President, Cement Manufacturers’ Association, said in a statement, “The Indian cement industry finds itself retained in the 28% GST bracket, along with luxury items such as washing machines and air conditioners. “This is a disappointment for the entire industry as cement is integral to the govt’s key schemes such as Housing for All, Swachch Bharat and building of other Infra projects that are fundamental for building an India for the future”. A few days ago, the Finance Minster had hinted on reducing the no of products which come under tax slab of 28%. The cement industry was

Cement: Cumulative Production Declined 1.6% During Apr-Oct’17

The cement industry is going through a difficult phase as prices continue to remain depressed amid low demand. Analysts and manufacturers now expect any reversal to occur in the next quarter of the fiscal (Jan-Mar) against an expected rebound in the present quarter. A part of the 8 core industries, cement production has declined 2.7% in Oct’17 over the same period previous year, according to the commerce ministry. Its cumulative production declined 1.6% during the Apr-Oct period compared with the corresponding period previous year. According to data from research firm Icra, production during the first seven months of 2017-18 was 165.6 MT compared with 168.3mt a year ago. The offtake during the period was weak on account of slow real estate activity, shortage 14

of sand and trailing effects of GST implementation. The fallout of the low demand is the depressed prices. According to estimates by Motilal Oswal, average national prices of a bag have declined from Rs 304 in May to Rs 284 mid-Nov. Prices in the north, west, east and central have been largely flattish month on month. But, prices were lower in the southern markets of AP & TS, pulling down the national average. Daga said that improvement in sand availability will bring about a surge in demand in various regions where there is pent up demand and stalled work could get a boost. “We are positively looking at a revival of cement demand.” he said. The industry, Daga said, is debating on changing its fuel mix from petroleum coke to domestic coal.

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too expecting a tax cut. “Moreover, our industry has the ability to contribute immensely towards employment and GDP growth, and a rationalisation in the tax rate on cement would have not only lifted this industry out from the depression phase it is passing through but would have sent positive signals of govt’s intent to bring back the economy to faster pace of growth”, Chouksey said. Since the announcement of GST, the rates of over 100 items have been brought down in the previous meetings of the council. This trend continued in the Guwahati meeting as well, but did not touch the cement and paint rates, which continued to be at 28%.

Rise in Cement Prices India Following Petcoke Ban by Supreme Court: India Ratings

Cement prices in northern states of India are expected to rise on the back of rising costs brought about by a ban on the use of petcoke in the Delhi NCR region from November 1, according to India Ratings and Research. Petcoke is a key raw material that goes into the making of cement. “Cement players in the northern region particularly from Rajasthan (where most of the clinker plants are situated) will have to use either domestic coal or imported coal from 1 November 2017. This will result in an increase in power and fuel cost per tonne per bag by INR8-10,” Ind-Ra said in a release. Cement producers are likely to pass the hike in costs to the final consumer, leading to an increase in cement price. According to Environmental Pollution (prevention and control) Authority’s

clarification dated 27 October 2017, such ban will be applicable only in those districts of Uttar Pradesh, Haryana and Rajasthan which fall under NCR; however if the state governments fail to issue a similar notification, then the ban will automatically be applied to the whole state, impacting all cement manufacturers. Industries using pet coke and furnace oil will have to comply by the norms issued by Central Pollution Control Board latest by 31 December 2017. The top court of India had last week banned the use of petcoke and furnace oil by industries in Haryana, Rajasthan and Uttar Pradesh in a bid to control air pollution in the Delhi-NCR region which also saw the apex court banning the sale of firecrackers to contain unprecedented air pollution in the national capital and its neighbouring regions. ||www.constructionmirror.com/net||

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News: Of the Month

SBI is Exploring Ways to Expand Loan Growth SBI is exploring ways to expand loan growth to sectors such as railways, roads and renewable energy, which are attracting higher public spending, chairman Rajnish Kumar said. India’s largest lender is also looking at investment opportunities in financial technology, or fintech, start-ups, Kumar said in an interview. The recapitalisation of public sector banks, for which the govt has announced a Rs 2.11 trillion plan, along with higher public spending on Infra, will help in stimulating private investments in the economy, he said. The state-run lender expects this to help small and medium

Omkar Realtors Launch 1,200-Apartment Project

The renowned real estate builder of national repute, Omkar Realtors has recently launched its biggest post RERA Act 2016 residential launch and the builder is witnessing overwhelming response from buyers from across the country to buy residential units in Mumbai. With upcoming infra developments such as metro, mono rail, new link roads connecting the East-West Corridors, the metropolitan city of Mumbai is seeing an increase in the no of people planning to buy a home in the city, said Senior Vice-President,

Omkar Realtors, Rahul Maroo said that the price advantage, the project with a fair share of inventory under sub-category of Rs.1 crore bracket holds strong attraction for pan-India customers and investors looking at buying in the country‘s primary realty market as it holds attractive return on investment proposition at the current pricing level for 1/2/3 bhk units. The project, which is RERA-compliant, is codenamed as Passcode Andheri Highway commanding a price range from Rs.87 lakh to Rs.1.6 crore.

enterprises, a major source of job creation in the economy, said Kumar. He also said that higher investments into highways and Infra will add more jobs in the construction sector. “What is probably not happening in a big way is (investments) in sectors where there is an over capacity,” he said, adding that investor interest is improving in the steel sector. The demand for steel and production capacity in the country are matched and faster economic growth will further boost prospects for this sector, said Kumar.

3 Cos to Invest Rs 1,640 Cr in 3 Parks in Odisha

Jindal Stainless Steel will set up a downstream stainless steel park at Kalinganagar at an investment of Rs 704 Cr. The plant will have around 71 small & medium units in sectors like auto manufacturing, kitchenware, light engineering, pipes and tubes and service centres. Land requirement for the said project is 300 acres. This project has the potential to generate 4,800 jobs, including 3,600 direct and 1,200 indirect jobs. Gitanjali Infratech proposes setting up a gems, jewellery, lifestyle and luxury goods park at Ramdaspur, Cuttack, at over 103 acres with an investment of 636 Cr. The park will include facilities for processing technologies for cutting and polishing diamonds, precious and semi-precious stones, manufacturing of gold, silver, platinum and imitation jewellery. These industrial processing facilities have been

planned across 60.03 acres. The balance area of 29.23 acres will be leased out to other processing units of the diamond polishing and jewellery manufacturing sector. A total of 20 plots have been provisioned for the other industry players of the sector. Total employment potential of this project will be 4,000 during 2 years of phase I, followed by 5,500 employment opportunities in the next 3 years of phase II and 6,500 in the succeeding 2 years Phase III. The third proposal of Welspun Ltd to set up food processing, warehouse and electrical equipment park was also cleared by the panel. The unit would come up over 175 acres in Bhadrak district at an investment of Rs 300 crore. It would have units in sectors like edible oil, deep freezing, food storage, sea food processing, export oriented apparel unit and multi-modal logistic parks.

IL&FS Bags Rs 582 Cr Project in Maharashtra

The company has received a LoA for a road contract from IL&FS Transportation Networks Limited, IL&FS 16

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Engineering and Construction Company said in a statement. Total value of the contract is Rs 581.96 Cr and completion period is 21 months, the company said. The work involves 4-laning of Amravati-Chikhli section of NH-6 in Maharashtra, it said. The Co. further said it

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is currently working on Rs 5,012 Cr worth road projects across India. The company executes projects under various domains such as buildings and structures, roads, railways, irrigation, power, ports, and oil & gas. ||www.constructionmirror.com/net||

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News: Of the Month

EXCON 2017 from 12-16 Dec’17

EXCON is South Asia’s largest construction equipment (CE) and construction technology exhibition. This year marks its 9th edition and is taking place in Bengaluru from 12-16 Dec’17. Organized by the CII, the event will witness over 1000 exhibitors, a 3rd of which will be from abroad, in a display area of 26,00,000 sq.m. This 5-day exposition will host over 300 product launches, key industry conferences and > 40,000 business visitors from all over the world. There will be country pavilions for China, Germany, Italy, South Korea and the UK. The ICEMA is the sector partner and is supported by the BAI. Infra investments are crucial to a country’s progress and to the development of its CE industry. Building ecologically sustainable infra and smart tech’s to fast-track this development has become the need of the hour. Main objective behind CII’s initiative is to showcase India’s potential as a preferred outsourcing destination for CE, aggregate and component manufacturing and to attract foreign investment. CII has been working in line with the govt’s Make in India initiative and has provided the

impetus to the Planning Commission’s aim to generate $1 tn infra spending in India’s 12th Plan. In Oct’17, CII organised EXCON Road Shows, covering 22 cities across the country. In every city, the road show was attended and presented by renowned senior administrators from the govt, industry leaders, stakeholders from infra & CE sectors. For CII, the upcoming EXCON will be the largest event in several aspects, most significantly being the participation of 300 foreign players, leaders in the global construction and CE industry. Through EXCON’17, Indian construction and construction equipment CoS can get a huge exposure to the latest tech’s in equip, components, spare parts and evaluate their own cost competitiveness. Through strategic ties and partnerships at the event, the industry can look forward to handling projects without or with minimal imports. The exhibition aims to provide a thrust to sustainable development of infra and the sectors peripheral to it. The new tech & innovations reflected in the equipment/ products displayed at the exhibition would aid in the robust growth of the country’s infra. The focus will be on cost, quality, global standards and timely execution of projects. With a strong global footprint and the expanding exposure, EXCON 2017 envisions the growth of India’s CE industry from $4 bn to $7 bn by 2020.

Adani, Hindujas Join Race for Jaypee Infra

The move comes as Jaiprakash Associates, which holds a majority stake, has been virtually ruled out of the race to stay in control of the co. facing insolvency proceedings. Jaypee Infratech is yet to deliver around 25,000 flats in Noida and also manages the Taj Expressway that connects the Delhi suburb with Agra. JSW had earlier submitted a joint proposal with Jaiprakash Associates and was in talks to acquire around 30% stake. Sources told TOI that the fresh offer is on a standalone basis and makes the company one of the top bidders for the 12 high-profile companies facing action under the IBC. The Sajjan Jindal Group is eyeing Bhushan Steel and Monnet Ispat among companies on the block as part of the insolvency crackdown ordered by the RBI. The interest from 3 big players will offer comfort

to Jaypee Infratech lenders. Ordinance promulgated last week was seen to result in less aggressive bidding in Jaypee after promoters of CoS that have been NPAs for over a year were made ineligible to submit bids under the 180-day resolution process. The insolvency professional is looking at investors to raise Rs 2,000 Cr for completion of the flats and villas. At the last meeting of the committee of creditors there was also a proposal for lenders to pump in Rs 500 Cr to resume construction but a decision was deferred with the banks eyeing funds from the new investors. Several prominent players such as Tata Realty, L&T Infra, Anil Agarwal’s Vedanta Group, Lodha, IDFC and the govt-promoted NIIF had responded to the insolvency professional’s notice seeking interest from potential investors. While several of the CoS are looking at all the assets of Jaypee Infratech, there are some which are interested either in the real estate project or the Taj Expressway.

Phase I of Delhi-Meerut Expressway to be Ready Next Month The first phase of India’s maiden 14-lane highway will be completed next month, road transport and highways minister Nitin Gadkari said after inspecting the progress of the Delhi-Meerut Expressway project. The entire 96-kilometre expressway will be completed by 2019, the minister said. The expressway is being built by the road transport and highways ministry on the hybrid annuity model at a cost of more than Rs 7,000 crore. Its first phase starts from the Nizamuddin Bridge in Delhi and ends at Uttar Pradesh border. Once complete, the expressway, which has a cycling track running alongside, is expected to substantially reduce traffic congestion in east Delhi, Ghaziabad and Noida. It is being completed in a record 14 months as against

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the scheduled 30 months. It includes 6-lane expressway in the middle and 4-lane highway on both sides. Talking about the high levels of pollution in the capital, Gadkari said automobiles alone are not responsible for pollution and climate change is equally to blame. He said the odd-even scheme, proposed to be reintroduced

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by the Delhi government, cannot be the only solution and that there is an urgent need for vacuum cleaning the roads and looking for more scientific solutions “I have called the environment minister for a meeting. We need to look for more scientific solutions,” he said. The minister said automakers should move to electric vehicles and cleaner fuels such as biofuel and ethanol since the government has already formulated the policy. Addressing the International Road Federation’s World Road meeting, Gadkari said that India is looking to reduce the number of fatalities in road accidents by half in the next three years. “Roads are increasing but the worrying part is that road accidents are also increasing. Road safety is a very sensitive subject for us,” the minister said.

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News: Of the Month

Kirby & Trimble to Provide High Quality PEB Structures

Trimble Solutions India announced that Kirby Building Systems will further invest in Tekla Structures as its preferred BIM software. Kirby is a pioneer and global leader in PEB industry and the co. will use Tekla Structures to deliver constructible projects that are accurate, cost-effective. Tekla Structures is the flagship product for the buildings construction industry from Trimble and is also the global industry leader in its category. Kirby Buildings Systems will deploy Tekla Structures in its workflows to benefit from constructible 3D building info models, which in turn allow for optimised prefabrication and site management. Further, Kirby will

be able to undertake smooth and seamless construction with min wastage & avoiding errors, maintain one common database for large projects and cross-refer them with other models from MEP or plant design. This will also lead to considerable saving in checkers man-hours. The announcement also marks a major milestone in the evolution of the Indian steel construction industry, as it progressively embraces cutting-edge building methods for the pre-engineered steel fabrication. For Trimble, the Kirby Building Systems relationship cements its value in the steel infra industry. With its already extensive portfolio of marquee clients in steel industry, this expansion is an added feather in Trimble Solutions India’s cap.

Stainless Steel Output to hit 3.6 MT

“The production of stainless steel in the country at the end of the calendar year 2016 was 3.3 million tonne,” at present, the industry are growing at a rate of 8-9% YoY, President of Indian Stainless Steel Development Association K K Pahuja told, citing data collected by the International Stainless Steel Forum. Growth is in response to the rising demand for stainless steel, mainly from sectors such as auto, roads and highways, housing and the like, the industry

veteran said, adding that the demand will keep rising every year. Besides, protectionist measures imposing a definitive Countervailing Duty on certain stainless steel products from China have helped the industry, he said. Govt had removed the import duty on nickel, a key material required to produce stainless steel. Now, the steel ministry wants the import duty on ferronickel and stainless steel scrap to be removed. This will further bring down the production cost of stainless steel in the country, he added. For 2018, the domestic stainless industry is expected to produce close to 4 MT.India is the 2nd largest producer of stainless steel after it overtook Japan in 2016. China remains the leader.

A “Rolling Contract” for Road Development: Government

The government is considering offering a “rolling contract” for road development that will see toll collection end ahead of the contracted period if the investment and profit has been recovered, in order to blunt criticism that surfaced over Delhi-Noida-Direct (DND) flyway and Delhi-Gurgaon projects. Conversely, the contract period may be extended if the contractor, due to certain circumstances, is unable to recover expected dues. Though the proposal offers some succour to contractors, NHAI will reserve the right to take over the project to stem public opposition over “super profits”. The ministry had a detailed discussion on this modelvariable build operate and transfer (V-BOT).

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Cases like that of DND and other highway projects where contractors are allowed to collect toll for years have prompted the government to explore this new public-private partnership (PPP) model for road construction. Cases like that of DND and other highway projects where contractors are allowed to collect toll for years have prompted the government to explore this new public-private partnership (PPP) model for road construction. There have been several instances of protests in states including Delhi, UP and Maharashtra against the existing practice. Even a parliamentary committee had pointed out this flaw while examining the contract

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period and total toll collection on the Delhi-Gurgaon Expressway. “The real-time toll collection in each project rolled out under V-BOT will be verified using the electronic toll collection data and other IT-enabled assessments, the parametes of which will be defined clearly,” said a ministry official. Under this model, the projects will be bid out on the basis of total cost (including construction, financing, operation and maintenance) for a defined contract period. The lowest bidder will get the project and will build, operate and collect toll. “If toll collection increases beyond the projection due to high traffic growth, the contractor will recover the cost before the quoted period and NHAI will terminate the contract. NHAI will then collect toll to recover the land cost. When that amount is recovered, toll will be slashed by 40%,” another official said. All such projects will compulsorily have 100% electronic toll collection, installation of automatic traffic count and classifier system, video image detection and other systems. The model has been conceptualised to address all the risk factors, another official said.

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Report

THE “KIDS”

OF THE MB CRUSHER FAMILY

Until recently, nobody had thought of this. Then along came MB Crusher, who designed and produced machinery that transforms loaders, skid loaders and backhoe loaders into mobile crushing and screening tools. Real jewels of mechanics, MB-L crusher buckets and MB-LS screening buckets can be used with any “size” of skid loader, loader or backhoe loader, from 2.4 to 25 tons. They work very simply, just like the range of crusher and screening buckets for excavators. They enable crushing and screening of inert materials to be carried out on-site. They offer many benefits to companies: savings in terms of personnel because they only require one machine operator; reduced costs and processing times, because the material is processed on-site without the need for transportation to landfill or the need to buy new material; greater agility on-site, especially in smaller sites or inside warehouses, because the MB-L and MB-S models are compact and easy-to-use; they are environmentally-friendly as waste material is recycled on-site, reducing transportation to landfill and therefore vehicle pollution. Beautiful to look at, built to last MB-L and MB-LS crusher buckets are fitted to a skid loader, loader or backhoe and operate by utilising the machine’s hydraulic system. The MB-L models collect and crush debris from demolitions or excavations. The size of the output material can be controlled by spacers inserted into the bucket. MB-LS models are used to separate waste material, whether natural or construction debris, resulting from any type of work. The screened material can be reused in drainage work , to cover underground pipes and to refill excavation sites. Or it can be resold. All MB-LS models are equipped with interchangeable modular panels. This allows the client to quickly change the size of the output material. The basket’s unique and innovative conical shape is specially designed to increase hourly production performances and to screen all collected material. Residue-free. Like all MB machinery, the MB-L and MB-LS series are

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Waste and residues - once materials to be disposed of are now transformed by MB into a new source of profit, with significant environmental benefits.

MB-L160_Bobcat_rocks_Australia

MB-L160_on backhoe loader

MB-LS140_Caterpillar_Limestone_CostaRica

also 100% Made In Italy and Hardox in My Body certified. This means they are manufactured with high-quality, wear-resistant, heavy-duty materials. From the demolition site to cleaning furnaces. It’s easy to find an MB-L crusher bucket or an MB-LS screening bucket at work. Many clients have chosen to transform their compact machinery into crushing and screening tools, in various areas of application. Some clients use them to screen soil during environmental reclamation w o r k . h t t p s : / / w w w. y o u t u b e . c o m / watch?v=0xP02eWUs2A&list=PLL5YvJg_ dLTMMvJtdbV3HR8mJylXMAWxV&index=6 Others use them to screen ferrous waste, as in a large recycling centre in Padua.https://www.youtube. com/watch?v=XxZjF0HRImI&list=PLL5YvJg_ dLTMMvJtdbV3HR8mJylXMAWxV&index=8 Many clients use them in demolition sites https://www.youtube.com/ watch?v=Dbr4HoODoMQ&list=PLL5YvJg_ dLTPXAGTFAi1WNlHBkwh3pGHf&index=9. They are also used during pipeline construction, beach cleaning or reclamation of public green areas. The smallest models are especially suited for recycling metals and steel slag from periodic furnace cleaning.In this case the waste is cleaned of residual dust and made resalable as good-quality steel.(https://www.youtube.com/ watch?v=9rJUDASRQN4&list=PLL5YvJg_ dLTOrtu6GGdx6lx-8-8Ll4uX5&index=2) To each their own MB Crusher has created a complete range of crusher buckets and screening buckets for use with loaders, skid loaders and backhoes. MB-L Crusher Bucket MB-L120: for skid loaders from 2.80 tons and backhoes and loaders between 5 and 7 tons. MB-L140 for skid loaders from 3 tons and backhoes and loaders between 6 and 8 tons. MB-L160 for skid loaders from 4.5 tons and backhoes and loaders between 7 and 10 tons. MB-L200 for skid loaders from 6 tons and backhoes and loaders between 7 and 10 tons. MB-LS Screening Buckets MB-LS140: for skid loaders from 2.6 tons. MB-LS170: for backhoes and loaders from 6.5 to 11 tons. MB-LS220: for loaders and backhoes from 12 to 25 tons. ||www.constructionmirror.com/net||

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CONSTRUCTION MIR ROR

Cover Story

onstruction market slow down can be picked up soon and the real estate market is anticipated to witness growth post 2 nd quarter of 2017, driven by new govt policy, Real Estate Regulatory Authority (RERA). The market is expected to witness restrained growth in first two quarters of 2017, as buyers are expected to put their investments on hold in order to gain benefit from RERA.

Estate of Indian Construction Sector: A Brief Review 24

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ndia GDP from Construction

GDP from Construction in India increased to Rs 2339.19 bn in the second quarter of 2017 from Rs 2197.52 bn in the first quarter of 2017. GDP from Construction in India averaged Rs 2084.55 bn from 2011 until 2017, reaching an all time high of Rs 2339.19 bn in the 2ndquarter of 2017 and a record low of Rs 1855.78 bn in the 3rdquarter of 2012.

Real estate and construction is a pivotal cog of economic growth for India, as it contributes the third highest share to the Indian economy and is also the third largest employer in India. Further, it accounts for the second highest inflows of FDI in India. Though the commercial asset classes have been witnessing healthy traction, the residential asset class has been plagued with no of challenges such as demand-supply mismatch across segments, project delays and liquidity issues. Additionally, the real estate sector has limited access to long-term funding, taxation and fees structures are either complicated or irrational, leading to higher project cost impacting the enduser/buyer. We believe that the sector has the potential to grow at a considerably faster pace, but for that to happen, the prevalent challenges have to be overcome first. The govt has made an attempt to address some of these challenges to a certain extent, through the proposals announced in the Union Budget 2017-18, with focus on providing thrust to affordable housing and Infra. Some of the key announcements made for real estate and construction include: granting an Infra status to affordable housing projects, which has been a long standing demand of the supply side stakeholders; highest ever allocation to the Infra development (Rs 3.96 lakh Cr); relaxation in area requirements and time period for the completion of a project; reduction in holding period to 24 months from 36 months for long-term capital gains tax on immovable properties These announcements coupled with others would benefit the govt in achieving the vision of â&#x20AC;&#x2DC;Housing for Allâ&#x20AC;&#x2122; and improve urban as well as rural Infra by attracting higher interest from private sector developers and domestic as well as foreign investors. The real estate sector is the third largest employer (after agriculture and manufacturing) in India and presently employs over 40 mn work force. With forward and backward linkages to over 250 sectors and ancillary industries, the real estate sector is the third-highest contributor to the Indian economy. The total market size of Indian real estate is estimated to have doubled since 2008 and reached about Rs 7 lakh Cr. India has the largest housing market in the world, with over 75â&#x20AC;&#x201C;80% share in the total real estate market size in India. The potential for growth is significant as India would need to develop over 170 mn houses until 2030 to meet the needs of the rapidly urbanising population.

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Contribution to Gross Domestic Product (GDP): The construction sector’s share in the Indian GDP has stayed constant between 7-8% over the past five years. Owing to the impact of construction delays and demonetisation, which affected residential sales, the growth in the sector remained sluggish during 2016 and is expected to decline from 3.9% in 2015–16 to 2.9% in 2016– 17. Robust private equity investments in real estate: The Indian realty attracted the second-highest PE investments during 2016, which increased by over 62% y-o-y to Rs 38,000Cr. However, the Foreign Direct Investment (FDI) in construction development sector remained subdued with only RS470 Cr worth of investment reported during Jan-Sep’16. This was primarily owing to foreign investors preferring quasi-debt route, which is not captured in the FDI. Strong commercial office space leasing: Grade A leasing activity in the commercial office space remained upbeat during 2016, with over 9% increase compared with that of the previous year. This resulted in 2016 recording the highest leasing of over 43 mn square feet (msf), primarily driven by IT-ITeS and BFSI sectors. Due to lack of quality spaces in completed projects, the year saw strong pre-leasing in under-construction projects, contributing to nearly 1/4th share in the total leasing during the year. Housing credit: The institutional credit to the housing sector is estimated to have grown by about 19% during FY’16. As a result, the total outstanding credit to the housing sector has reached Rs 12.5 lakh Cr. There is still significant potential for credit growth as mortgage to the GDP ratio in India is only 9, far below than in the developed countries, such as the U.S. (68%) and Germany (42%). Significant supply gap: The urban housing shortage is 19 mn units, of which, 95.6% is in the Lower Income 26

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Group (LIG) and Economically Weaker Section (EWS). The union govt had launched Pradhan Mantri Away Yojana - Housing for All (Urban) in Jun’15, to address the urban housing shortage. The govt aims to achieve this through credit-linked subsidies and Public– Private Partnerships (PPP) model. Weak housing sales and new launches: Residential sales across top-8 cities in 2016 fell to a seven year low of about 245,000 units, owing to subdued demand over the past 3-4 years. Similarly, new residential unit launches, too, fell to pre-2008 crisis levels with only 176,000 unit launches during 2016.

FY16. Lack of a strong micro finance sector makes it difficult for the EWS and LIG to secure housing finance credit. With over 30-35 regulatory approvals required to be obtained by a developer to develop a real estate project in India, the whole process becomes cumbersome and also leads to delays, which inflates the project cost by 20-30%. Higher rates of statutory fees and taxes, including multiple taxation inflate the cost of construction, making affordable housing projects financially unviable for the private sector developers. Unfavourable taxation structure for REITs impact the launch of REITs in India.

Key issues/challenges

Govt’s stance

The real estate sector has been facing a number of issues, of which some of the major ones are enlisted below:. While there is a significant shortage of housing in urban regions, it is estimated that the top-eight cities in India have approximately 6.5 lakh units of unsold housing stock. At the current rate of absorption, it may take over five years to clear the housing stock in regions, such as Delhi-NCR, which has the highest unsold inventory. There is a scarcity of developable land in urban areas, and peripheral regions of cities lack appropriate urban Infra, which escalates the final project cost. One of the major issues that the real estate sector is facing is lack of clear land titles and land title insurance, which lead to litigations and causes project delays. Despite the real estate sector contributing the third highest share to the Indian economy, the share in outstanding loans from banks to the sector is extremely low at 3%. This results in limited access to long-term and low-cost funding channels, especially through banks and external commercial borrowings (ECB) route. The real estate sector has been grappling with liquidity issues and piling debt. The total outstanding debt of listed real estate developers in India has risen from Rs 25,000 Cr in FY07 to over Rs 83,000 Cr in

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Year 2016 has been transformative and disruptive for the real estate sector. The Union Govt has undertaken several policy initiatives to improve transparency and accountability, and improve liquidity in the sector. The Real Estate (Regulation & Development) Act, 2016 was passed by the Parliament in Mar’16, which was a landmark legislative reform for Indian realty. The act would come into implementation from May 2017. This is expected to weed out corruption from the system. The constitutional amendment bill for introduction of GST has been passed. This is viewed as a historic tax reform, and is likely to benefit the real estate sector, owing to expected reduction of the impact of prevailing multiple taxation. The Union Govt in Nov’16 demonetised Indian currency notes of Rs 500 and Rs 1,000, with an aim to bring back unaccounted money into the formal economy. This is expected to improve the liquidity of the banking system, thereby allowing banks to increase lending. Also, this move is likely to expand the tax base that may lead to higher tax revenues. After the Central Govt allowed tax pass through status to REITs and InvITs in the previous year’s Budget, the SEBI has recently allowed mutual funds (MFs) to invest in REITs and InvITs. The Benami

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Transactions (Prohibition) Amendment Act, 2016, has been cleared by the Parliament and has come into force from 1 Nov’16. The act has provisions that would allow the adjudicating authorities to confiscate benami properties.

The Future

The construction sector in India, which employs more than 35 mn people, is the second largest employer, next only to agriculture. Therefore, any improvements in the construction sector affect a number of associated industries such as cement, steel, technology, skillenhancement, etc. As per the govt reports, the sector is valued at over $126 bn. It also accounts for more than 60% in total Infra investment. About half of the demand comes from the Infra sector, and the rest is driven by the real estate sector and other industrial activities. India’s construction industry will continue to expand over the forecast period (2016–2020), with investments in residential, Infra and energy projects continuing to drive growth. Various govt flagship programs- including 100 Smart Cities Mission, Housing for All, AMRUT, Make in India and Power for All- will be the growth drivers. The industry’s output value in real terms is expected to rise at a CAGR of 5.65% over the forecast period; up from 2.95% during the review period (2011-2015). There are certain challenges associated with India’s construction industry outlook. Limited funding, slow policy reforms and a weak currency are factors that will continue to limit the growth potential during the early part of the forecast period. Due to industrialization, urbanization, a rise in disposable income and population growth the demand for construction services is set to rise. Govt efforts to improve the country’s residential and transport Infra will also support growth.

Key trends and opportunities

• The construction industry will be supported by the govt’s plan to transform urban India. Under the 100 Smart Cities Mission, the govt aims to provide a more sustainable and clean environment by 2020. In total, Rs 480.0 bn has been allocated. • In a bid to rehabilitate the slums, provide housing at affordable prices and ensure good quality homes, the govt is focusing on social housing development. It launched the Housing for All by 2022 program in 2015, under which it set a target to construct 20.0 mn social housing units across the country by 2022. • To promote comprehensive urban development and support economic growth, the govt introduced AMRUT in 2015 to transform the country’s urban areas. The program will be implemented in 500 towns

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and cities. • Demand for electricity is projected to increase over the forecast period, due to industrialization, urbanization, population growth and per capita energy consumption. To reduce the country’s reliance on imported energy, the govt is developing its renewable energy Infra. It aims to generate 175GW of electricity through renewable sources by 2022. • To improve the country’s Infra, the govt will offer more road Infra projects under the PPP model. According to the Ministry of Road Transport and Highways, the govt plans to offer 100 highway construction projects to the private sector in 2016. India offers massive opportunities in construction as per the report by dmg events India. It says, Indian construction sector will grow up to eight percent every year for the next decade. The report further says that total allocation for Infra projects is $45 bn. The Planning Commission of India has already pledged to invest around $1 trillion in the 12th FYP. Indian Ministry of Roads and Transport outlined plans for $120bn worth of road-widening projects. There are also plans for $60bn to be invested in India’s ports by 2020. Unit sale of construction equipment in India is expected to grow to 82,000 by 2016. The construction equipment industry’s revenues are estimated to reach $22.7bn by 2020 from $5.1bn in 2012. In addition to reduced building costs, Indian govt now has more money to spend, that it had allocated to oil.

Crisis in real estate sector

RBI’s decision to push banks to clean their balance sheets by recognising NPAs, resolving bad debts of large defaulters and, failing that, taking them to bankruptcy court for liquidation, has focused attention on the crisis in a few sectors. Among those, besides power, steel and textiles, is real estate, consisting of housing, commercial real estate and hospitality assets. Firms such as Unitech, Jaypee Infratech and Amrapalli are being pursued by banks and home buyers who had paid them advances but not received their houses have turned to the courts. They fear they would lose out in case of liquidation because home buyers’ claims will be considered only after those of secured creditors like the banks have been settled. The real estate story is of special interest because the post-liberalisation evolution of this sector reveals quite starkly the characteristics and contradictions of post-reform growth. An overriding objective of neoliberal reform is to get private investment to drive economic growth by providing it the right environment and offering it the appropriate incentives. But in a market economy, while supply side initiatives may help nudge into activity a private sector afflicted with inertia, those

initiatives would work only if the fruits of such activity find a market. So even if it is not among the stated objectives of reform, a parallel thrust of policy must be that of stimulating demand. This is challenging for a policy frame that refrains from using autonomous state expenditure as the principal stimulus to growth. The belief is that this is not necessary and should be avoided when tax and other concessions are used to incentivise private investment, since increased public expenditure would lead to large deficits that defeat the purpose of fiscal reform. It must also be avoided because it goes against the grain of a growth strategy that seeks to give primacy to the private sector. This implies that demand must come from the private sector. Some of this comes from derived demand, as is true of commercial real estate. When business is doing well, demand for office space rises. Nothing illustrates this better than the rapid expansion of steel and glass-fronted structures in the major metropolitan cities to accompany the export-led boom in the software and information technologyenabled services sectors. As compared with this, the component of the real estate sector that was waiting to explode due to consumer demand was the personal housing market. Based on the Census 2011, the total no of households in urban India was placed at 81.1 mn in 2012, while the urban housing shortage in that year was estimated at 18.78 mn. That is, close to a quarter (23.2%) of households in urban India needed new houses because they were homeless or lived in dilapidated or over-congested accommodation. But this is only indicative of the fact that the “technical” demand for housing in a rapidly urbanising economy with a high share of youth in the population is bound to be high. The challenge for the reformers was to convert this technical demand into effective demand. The opportunity to do this came from two sources, especially from the early 2000s. The first was the rapid buildup of liquidity in the economy, resulting from a combination of an easy money policy and a sharp increase in foreign capital inflows. The second was financial liberalisation that allowed banks to hugely expand credit based on that liquidity, even if it entailed substantial increases in exposure to certain sectors.

Rise of housing loans

Real estatebenefited from this credit splurge. Growth of housing loans gathered momentum at the end of 1990s and remained at extremely high levels right up to 2006-07, before the global crisis. As a result, the share of housing finance in total credit rose from 5% in 2001-02 to 12% in 2006-07.What is interesting is that despite the effects of the global financial crisis in 2007-08, the expansion of credit to both housing and the overall construction sector remained high till

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India’s construction sector appears to be facing its worst slowdown since 2008. For three consecutive quarters, the stalling rate in the realty sector has been in double digits, with the total value of stalled realty projects touching Rs1.27 trillion in the Sep quarter. The stalling rate (or value of stalled projects as a percentage of projects under implementation), at 12.7%, was at its third-highest level in nine years, only marginally better than in the June quarter, when the stalling rate hit a nine-year high of 13.3%. The commercial real estate sector has been the worst-hit, with a fifth of such projects getting stalled. The calculation of the stalling rates is based on the capex-tracking database of the CMIE. The database provides data on a reasonable sample size (at least Rs10,000 Cr worth of projects) from June 2008 onwards. Hence although the database has data on projects since June 1995, only the data since June 2008 has been considered to ensure a consistently large sample size. The data shows that new projects have come to a grinding halt in the real estate sector. The slowdown in the sector appears to be driven by several recent policy moves which have been inimical for the sector, at least in the short run. Given that most real estate deals have a cash component, this was one sector that had been expected to be hit by demonetization. The impact was felt most strongly in the March quarter. The new RERA Act and the introduction of the GST also seem to have contributed

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The spike in real estate stalling The proportion of stalled real estate projects has been in double digits for three quarters in a row Stalling rate of realty projects (in %)

The stalling rate is the value of stalled projects as a percentage of the value of projects under implementation. Data form June 2008 is used because there is limited data for previous periods CMIE’s list of projects while not exhaustive, can be considered indicative of the broader trend. Source: CMIE, Mint calculations

Value of stalled realty projects (in trillion rupees)

0.5

Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17

Within the real estate sector, it is developers rather than home buyers who seem to be defaulting on payments. Competition between developers led to massive accumulation of land, as they built up land banks as a strategic weapon against one another. Borrowing for this purpose and land development meant that the interest burden accumulated by developers was huge, and in excess of what could be met by the development and marketing of house properties and commercial floor space. So leading developers have also stopped servicing debt and have become part of the NPA problem. The impact on construction is reflected in the deceleration and recent decline in cement production (Chart 3), which is a commonly used proxy for real estate growth. A fallout of the NPA problem is, banks are less willing to lend as

Construction slowdown

to a slowdown in new project announcements and to the rise in stalling rates. The introduction of RERA has imposed stringent regulatory requirements on real estate developers, which small firms are finding difficult to meet, as a 7 August note by Harshal Pandya of Edelweiss Securities Ltd pointed out. Introduction of GST has created uncertainty on how projects will be priced under the new tax regime. The advent of the new insolvency law has also made builders cautious since it portends action against errant builders. All of these moves could potentially transform the real estate sector by bringing large swathes of realty projects within the fold of the formal sector over the long run. However, in the short-run, these moves have had a destabilizing effect on a sector which has created the largest number of non-farm jobs for India’s growing workforce over the past decade. The slowdown in rural incomes has meant that investments in rural construction have slowed down as well. Both agricultural and non-agricultural wages are growing at a much slower pace today compared to three years ago. Thus the outlook for the construction sector remains clouded. It is not clear how long it will take to see a sustained recovery in the sector.

Jun 08 Sep 08 Dec 08 Mar 09 June 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 10 Sep 10 Dec 10 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17

Defaulting developers

they work on cleaning up balance sheets and finding funds to recapitalise themselves. This has hit even the housing sector, where defaults have been far less than in areas like construction. Here too, while credit and demand for housing are still growing, they are fast losing momentum. Thus, trapped between rising interest and other costs and faltering demand that affects prices, the real estate sector is experiencing a severe version of the crisis stemming from the inability of the system to sustain growth-driven by private debt-financed spending.

very recently. The increase in housing investments is often attributed to the low level of penetration of the mortgage market in India, standing at 7% in 2006, as compared to 12% in China, 17% in Thailand, 26% in Korea, 29% in Malaysia and as much as 80 and 86% respectively in the US and UK respectively. But these differential penetration rates have to be seen in the light of differentials in per capita income and the degree of income inequality, both of which do not favour a significantly large mortgage market in India. So it was the willingness of the banks to lend without collateral to a larger universe of borrowers that generated the boom. As a result of the increased exposure to debt, a no of realty firms are in default and some are facing bankruptcy. A similar boom was seen in the infrastructural area, which also received large loans from the banking system. Before the 2000s, banks were wary of lending to this area because of the long maturity, low liquidity and higher risk involved in loans to this sector. Partly because banks dropped that reticence and hugely increased lending to a few large borrowers in this sector, they are now finding themselves burdened with large NPAs. This is what has set off the bad debt resolution process based on the recently announced Insolvency and Bankruptcy Code.

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Commercial real estate is going through a worse time than the residential segment Nearly a fifth of commercial real estate projects have been stalled as the stalling rate below shows. Commercial real estate can refer to construcjtion offices, stores, malls and buildings for other non-residential purposes. 20

Commercial

Mar 15 11.83

Housing 5 Jan 09 Jan 10 Jan 11

Jan 12

Jan 13 Jan 14

Jan 15

Jan 16

Jan 17

The stalling rate is the value of stalled projects as a percentage of the value of projects under implementation. Data form june 2016 is used because there is limited data for previous periods. CMIE’s list of projects while not exhaustive, can be considerd indicative of the broader trend. Source: CMIR, Mint Calculations

Growth Drivers

The construction sector is one of the key contributors to the Indian economy, accounting for about 8% of its GDP and employing more than 35 mn people. Govt has taken several steps to develop the country’s Infra, steps that are expected to boost the Indian construction sector in the coming years. Key initiatives include: US$ 375.4 bn investments to develop and upgrade the Infra over a period of 3 years starting in July 2016. This includes US$ 120.1 bn for developing 27 industrial clusters and an additional US$ 75.1 bn for road, railway and port connectivity projects. Easing of FDI related norms in 15 sectors including real estate and construction development. The introduction of the GST is expected to ease tax-related complexities in the construction sector and resulting into growth in the construction activity.

The construction market is buoyed by the growing Infra development in India, which is directly dependent on govt policies. Public and private Infras are registering a healthy growth on account of several measures. These include the opening of foreign direct investment in railways, 100% approved FDIs under the automatic route for port development projects and streamlining of land acquisition, as well as environment clearances for road construction projects. The Infra sector has been a key priority for the Govt. In order to increase competitiveness and efficiency, it seeks to put in place a multi modal logistics and transport network, by allocating the following funds to the transportation sector from the 2017-18 Budget. US$ 36.2 bn funds would be allocated for the transportation sector as a whole. These allocations would be distributed among rail, roads, and shipping for the 2017-18 period. For ||www.constructionmirror.com/net||

the railway sub-sector, around US$ 19.7 bn would be allocated, wherein US$ 8.3 bn would be provided by the Central Govt and the rest would be arranged through revenues generated by the railways. Railway lines of 3,500 kms to be commissioned in 2017-18 . At least 25 stations are expected to be awarded for redevelopment including the Howrah station, Mumbai Central and Chennai Central. US$ 9.7 bn would be allocated in road sub-sector for highway such as Bharat Mala project for developing 6000 km roads along coastal and border areas. A new Metro Rail Policy would be announced with focus on innovative models of implementation and financing, as well as standardisation and indigenisation of hardware and software. A new Metro Rail Act would be enacted by rationalising the existing laws. This would facilitate greater private participation and investment in construction and operations. The real estate market is anticipated to witness growth post 2ndquarter of 2017, driven by new govt policy, Real Estate Regulatory Authority (RERA). The market is expected to witness restrained growth in first two quarters of 2017, as buyers are expected to put their investments on hold in order to gain benefit from RERA. RERA has been passed in Mar’16. RERA’s primary objective is to regularise the unorganised construction sector and to directly address the consumer grievances. The bill has made it compulsory for all real estate projects to register with the regulator before launching a project if the land area is more than 500 sq. mt. or has over 8 apartments. The developers would have to put 70% of the money collected from a buyer in a separate account to meet the construction cost of the project. This particular rule would restrict real estate companies from diverting the buyers money into another project and hence would confirm the completion of project on time. A comparatively stronger growth within the construction industry is expected in the second half of 2017, on account of implementation of the GST and lower interest rates on home loans. According to 6wresearch, policies such as Housing for All, would have a positive impact on the market, resulting in growth of the overall industry. Govt has proposed to construct 1 Cr houses by 2019 and has allocated US$ 3.5 bn in 2017-18 under Housing for All. The National Housing Bank will refinance individual housing loans of about US$ 3 bn in 2017-18. India’s construction market is registering signs of growth. The Housing and Infra sectors would be key development drivers in the near future, buoyed by Govt support. In FY18, the market would be driven by increased public and private investment in transport and urban Infra. ADB has approved US$ 631 mn loan to develop the first coastal corridor or building India’s first coastal industrial corridor between Visakhapatnam and Chennai17. Projects such as Delhi

Mumbai Industrial Corridor and Mumbai-Ahmedabad Bullet Train Network along with new Real State Regulatory Act, would lead to overall growth of the market in the long term.

Stable outlook to realty market

Rating agency Fitch has forecast a stable outlook for the Indian real estate and expects that unsold stock will fall from peak level and the sector will see consolidation with the implementation of a new regulatory law. The RERA Act, which was passed by the Parliament last year, has been implemented from May this year.“We expect unsold inventory to fall in 2018 as most developers will focus on completing their property projects to comply with RERA,” Fitch said in a statement. The agency said the unsold inventory for a sample of seven large developers increased to Rs. 668 bn at the end of 2016–17 fiscal from Rs. 631 bn at the end of previous year. Stating that RERA would drive consolidation in 2018, Fitch said the implementation of the new law would continue to reduce the pace of new launches as developers focus on completing existing projects. The introduction of GST, while broadly neutral for the sector, is shifting demand towards completed properties as they attract lower taxes, the statement said.“These trends will drive consolidation in 2018 - larger and more financially sound developers will survive, while smaller or highly leveraged companies will likely resort to asset sales to shore up liquidity,” Fitch said. On the Lodha Developers and Indiabulls Real Estate-the two companies which it rated-Fitch expects that the leverage of these two developers would remain steady in 2018. “We forecast leverage will drop slightly to 68% and 67% at the end of 2017-18 and 2018-19, respectively compared with 70% as of 2016-17,” the agency said.It also projected aggregate pre-sales for the developers to rise to around Rs. 140 bn in 2017–18 and over Rs. 160 bn in 2018–19 from around Rs. 95 bn in 2016–17.“We don’t expect the companies to spend on land banking over this period as they are likely to focus on completing existing projects where land costs have been incurred,” the statement said. On the cash flow generation of these two companies, it said that the same is “negative but improving”. Fitch said their CFFO (cash flow from operation) of the rated Indian developers would continue to improve in 2018 on higher domestic presales in India and the completion of more of their existing projects.“We forecast CFFO to remain negative, but improve to Rs. 5.4 bn at 2017-18 end and Rs. 862 mn at 2018-19 end from Rs. 12.8 bn at the end of 2016-17,” it added. However, Fitch said both developers could face weaker CFFO than expected if they choose to postpone the sales of their London projects for a longer period than anticipated in favour of higher profits.

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CONSTRUCTION MIR ROR

INTERVIEW

T Rajinder Raina G.M. - Marketing

Escorts Construction Equipment 30

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he focus on exports is sharp & we have a target of getting 20% of our volumes exported to countries which are clearly demarcated with requisite after sales support taken care of. We recently show cased our backhoe loaders for Export markets with imported Engines. ||www.constructionmirror.com/net||

Q. Excon 2017 is a high cost event

Q. What all are your preparation for the upcoming event

Excon 2017 what product/tech you introducing in Excon 2017?

We are displaying a pick of our entire range of manufactured equipment. The equipment showcased is the Preferred One when it comes to choosing the versatile equipment for project sites. Escorts, understands the business of the customer & engineers the equipment which is appropriate for Indian conditions & usage. We are once again going to exhibit this in our product line.

What according to the Excorts is the import factor of the Excon 2017 and drawback of the Excon 2017?

Excon has now gained the stature of the best exhibition in Construction Equipment sector in India & is talked about globally as well. The quality of the show, the expanse/participants & infrastructure is at par with any leading show in the world. The footfall is impressive & the business transacted is pretty good. For the leading players in the industry it has become a must to participate. The cost is high & it has become “can’t afford to miss it” & therefore needs to be integrated into the template of the overall advertising, domos & communication strategy by way of cost & effort. ||www.constructionmirror.com/net||

what drives a CE industry to be a part of this; after all does GST slab of 28% also have some effects on the event, if we talk on the current scenario? Excon certainly is a high cost event but it remains the most awaited the coveted event. For Escorts, we have chosen to launch two new products this time for which there can’t be a better platform. This time, in particular, the industry is in pretty decent health & to that extent OEMs are keen to participate & won’t mind spending the money as they are sure that they will get the bang for their buck.

Q. Export market is what CE industry

is upgrading their products for, what is your take on this?

Exports helps in even out the vagaries of the demand & helps the bottom line in particular to pushes the manufacturing quality to international levels. The areas like Engine Exhaust norms, safety, Product reliability, and operator comfort & noise levels need special || DECEMBER 2017 ||

attention which pushes our boundaries in R&D, manufacturing/quality control. We recently show cased our backhoe loaders for Export markets with imported Engines. The focus on exports is sharp & we have a target of getting 20% of our volumes exported to countries which are clearly demarcated with requisite after sales support taken care of.

Any message do you want to give to the audience in Excon 2017 and to the CE industry? As an industry professional who has visited all the Excons till date, I can tell the audience that this is the Exhibition to pay as one gets to see almost every product available in India, equipment waiting to make foray into the country, the whole array & range of products in different domains & segments. The contemporary technology & quality is on display. One can get the best of the deals if one is in the market to buy equipment in near future. This is a completely enriching experience where one gets the finest interface with the latest equipment & the finest professionals.

CONSTRUCTION MIR ROR

Special Theme:

Motor Graders

Motor Graders and Graded Business Strategies

he backlog of pending road construction work in the country, as well as, the govtâ&#x20AC;&#x2122;s ambitious infra development plans, offer a potential for the growth in the market. Off-Highway Research estimates the motor grader market to grow to 750 units in 2016 to 850 units by 2020.Time bound projects need reliable machines, and yes, the graders are all set for the tasks ahead! The Off Highway Research report forecasts Indian motor grader market to rise 24 % over the next 5 years.

CONSTRUCTION MIR ROR

|| DECEMBER 2017 ||

||www.constructionmirror.com/net||

he skills level of an operator, coupled with proper maintenance practice comes a long way, in optimizing performance and enhancing the life of a motor grader. The Indian Construction Equipment (CE) sector is definitely coming out of the woods. The construction and earthmoving industry has registered a growth rate of over 40% in 2015-16. At a macro level, road sector has been leading the pack and followed by irrigation and mining sectors. Much to the dismay of the industry, the degeneration started in 2011 went on and on until Decâ&#x20AC;&#x2122;15, witnessing a period of flat growth. The ups and downs in the sales of motor graders, one of the key equipment in the construction of national and state highways, reflect this trend. Following the global economic crisis in 2008, the market for motor grader dropped to 342 units in 2009. However, it recovered soon to 528 units in 2011. The demand declined to 276 units in 2013, due to a slowdown in the award and execution of new projects, in the country. As a result of the current govtâ&#x20AC;&#x2122;s focus on road building and mining activities, motor grader sales had peaked at 581 units in 2015. Promotion of wide range of motor graders offering, closely indexed to varied applications augurs well for the industry. However, it will be vital for the manufacturers to attune their service & technical support to the equipment working at varied applications based on their attributes. This will enable them to deliver the right value of the capex to the asset owners. Large scale expansion of road network has given a shot in the arm to motor grader manufacturers. According to industry estimates, the market size for motor graders during 2016 was 830 units, and demand projection for 2017 is close to 1000 units. Manufacturers have been working out well-crafted strategies to push sales across categories, and create brand value for their products. Demand for motor graders in India chiefly comprises 2 categories: higher capacity graders of 170-180-200 hp and lighter units of 140 -150 hp. Former is generally used for grading requirements of 160-200 cum/hr while the lighter units are for 100-120 cum/hr. Demand for higher capacity units has been rising as road contracts are going up following the govt decision to construct 40 kms of roads per day and many more expressways. Contractors are also keen to complete projects before schedule to earn bonus points, while incurring lower operation costs and achieving higher profitability.

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|| DECEMBER 2017 ||

CONSTRUCTION MIR ROR

Special Theme:

Motor Graders

MARKET SPLIT UP

FACT SHEET

RANG:

In 2009 Sale Dropped to units

342

Recovered to units in 2011

In 2013 Total Sale Was units

276

Sales Peaked to units in 2015

LARGE SIZE MACHINES:

Expected Sale Stands at in 2016

By 2020 sale to touch units

Market Opportunities

to enable the operator to expend less effort with much greater precision of movement, during working. There is high emphasis on operator’s comfort. Major players offer features to enhance ergonomic comfort levels, as a standard configuration with machines. For example, the LeeBoy cabins are very comfortable with state-of-the-art electronics, HVAC, suspension seat with ad-justable steering column, hydraulic pilot (low effort) fingertip controls with sliding adjustment for positioning of levers. The gear shifter is a ZF VTS 3 bump shift (similar to the types they supply on luxury cars like BMW, Audi & Bentley). Today’s designs focuses on providing better control to the operator, so that he can maintain motion under any flow or load and take away the strain. Due to ease of operations, these features reduce operator’s fatigue, cycle times and maximize efficiency and productivity. Standard machines comes with automatic power-shift transmission, which allows the operator to focus on hy-draulic operations. The operator, if well-trained, is able to get additional 20% fuel efficiency. That sounds really good! A machine’s efficiency depends partly on the operator’s capability of handling the machine. Therefore, responsibilities of the manufacturers are to ensure the operator can function in the best possible conditions, to achieve the highest level of efficiency. Also now-a-days the layout of controls are designed ergonomically to ensure comfort and presence of info feedback screens, thereby providing the operator, detailed information on the machine to make informed decisions. Another feature is the smart control inside the cabin. Automatic gears are easy to operate and highly efficient. Speed range and initial gear settings can be set automatically by the operator. Intelligent reversal technology reduces the time to change directions.

11T With 135 hp to 26T With 280 hp

FAST MOVING:

Under 150 hp Range Have Two-third of Total Sales in 2015

MID SIZE MACHINES:

528 581

151-250 hp 28% in 2015

750

Above 250 hp Accounts 5%

National highway projects of 2-lane upgradation totalling 50,000 kms; various special expressway projects of around 15,000 kms; and a part of the NHDP are planned over the next few years. NHAI is also looking at various other connectivity projects in India, for bypasses and ring roads around major cities, contributing towards Smart Cities Projects. To top it with backlog of pending road construction works in the country, no players, in this segment, are going to let go the huge opportunity. The growth potential is commensurate with the rest of the road construction equipment industry. It will be at a min. CAGR of 40% pa, for the next 2-3 years. The road development industry has received a major thrust in this year’s budget. The govt has announced an investment of Rs 97,000 Cr in the industry. The mining sector has also been one of the key sectors, aiding the economic growth of the country. With the govt’s help and policy clearances, the road and the mining industry are both poised for growth. Under these circumstances, expect to see a YoY growth of 15-20% in the demand of motor graders least in the next 4-5 years, because it is one of the most essential equipments, used in both these sectors. The demand from road construction projects, in the current market scenario will continue to drive the motor grader market. Off-Highway Research forecasted sales of 650 motor graders in 2016. It also predicts the market to remain between 700-750 units during 2017-20. India is a huge market for CE and international CoS, like CASE India see the potential for Indian market and continues to provide world class products for infra development.

Operator has become a vital link in optimizing productivity of any equipment.

This shift, towards operator-centric approach has had very positive impact on the overall design of a machine, especially the cab and the comforts it offers. The operator is key, to maximize the performance of the machine. It shows in design and layout of the operator’s environment, which incorporates features 34

CONSTRUCTION MIR ROR

850

Operator’s skill set seems to lag behind

Circle of a motor grader, mouldboard, articulation point and linkage system, hydraulics, cylinders, lines and hoses need proper periodic inspection and maintenance. For eg, without a properly maintained operating circle, an operator will find it extremely

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difficult to carry out fine grading tasks. Lack of skilled manpower is an acknowledged ‘pain’ in the CE sector. Skilled and trained Operator Technician (OT) for equip operation, preventive and breakdown main-tenance, at a fixed cost is the need of the hour. OTs need to undergo intensive training, not only in operating the equipment competently, but also, on preventive maintenance and troubleshooting, to ensure a longer lifespan for the equipment, higher uptime and lower maintenance costs. Here again, trained service representatives are also essential, who may be deputed to install, maintain, service the equipment. A well-knit structure for skilling up motor grader operators is must. OTs must undergoes component-wise training, as well as, overall training on operating the graders competently, including intensive training on preventive maintenance and troubleshooting, to ensure a longer lifespan of the equipment, higher uptime and lower maintenance costs along with the trainers keeps updating features to ensure the graders are up to date with the latest technology. Maintenance plays a crucial part in the machine’s lifecycle performance and efficiency. Any untimely breakdown of a machine can lead to unplanned downtime resulting in a loss, for the customer. On-site Operator & maintenance training for the operators during commissioning, so that they will have complete knowledge of equipment controls, procedures is crucial. So that they are able to master latest improvements, innovations in design. Comprehensive training can be part of new equipment induction, upgrades, for new personnel or simply refreshing, building experience. Also conduct tailor-made training programs, directed towards operators and supervisors, at customer organizations is vital.

Data-Driven Asset Management

Telematics and data-driven technology is gradually changing the rules of the game. The end-users’ segment have started appreciating the advantages of these systems and have started realizing that these tools come in handy, to become ‘profitable’ and stay ‘competitive’. Acceptance is rising, because customers now understand the advantages of these tools, in maximizing the machine’s health and uptime. Customers have started appreciating the value of these systems and started integrating these in their machines. Installing telematics system provides users complete control of their equipment, from any location he may be in. Telematics system provides operational information, service information and protection against theft. However, the acceptance and use of these systems still needs to improve in India, especially for road equipment. CE Cos should take the onus of increasing awareness on data driven asset management. Having access to real-time data can help manufacturers, dealers and customers to ||www.constructionmirror.com/net||

work in tandem and use the insights, from data more efficiently.

Grading Forward

In order to meet increasing and ever-changing needs of the market for various road building applications, OEMs have been consistently coming up with new products and applications. With the focus on fast completion of infra development, led by roads and highway projects, builders and contractors too are facing a lot of pressure to expedite the construction activities. In order to fulfil this demand, the OEMs are focussing on technologically superior products, which will offer a higher productivity while maintaining higher operatorâ&#x20AC;&#x2122;s comfort, easy serviceability, and low operating cost. The backlog of pending road construction work in the country, as well as, the govtâ&#x20AC;&#x2122;s ambitious infra development plans, offer a potential for the growth in the market. Off-Highway Research estimates the motor grader market to grow to 750 units in 2016 to 850 units by 2020. Time bound projects need reliable machines, and yes, the graders are all set for the tasks ahead! The Off Highway Research report forecasts Indian motor grader market to rise 24 % over the next 5 years. Forecast follows a 54 % jump in grader sales in 2016, and roughly 100 % of the market in 2015. The demand in motor grader market is on upswing after hitting the bottom of the cycle in 2013. The bullish and optimistic forecast for the next 5 years is based on growing infra investment in India, a recovery in mining sector and increased spending from Indian govt. Sales of motor graders follow closely ||www.constructionmirror.com/net||

the expenditure pattern on the construction of new roads and the maintenance of the road network. Ultimately the demand for machines will largely depend on the speed at which existing and future road projects are executed and finished within the timelines. The pending road construction work and infra plans from Indian govt offer a huge scope for growth in the motor grader demand in the coming years. There is little doubt that the incumbent govt has succeeded in increasing the pace of road construction and this trend is likely to continue. Future demand for bigger machines will be largely determined by the levels of activity in the mining sector, which is likely to grow in the coming years. Off-Highway Research report said that around half the motor graders sold in India are imported. Currently 16 suppliers are active in the market which offer more than 35 different models for various project needs. Unlike many other types of construction equipment which are predominantly manufactured domestically, around half the motor graders sold in India are imported. A total of 16 suppliers are active in the market, offering more than 35 different models in total.

Exerpts from Industry

CASE: Offering 2 models of motor graders for the Indian market, imported from its plant in Brazil, consisting, 845B (150-173 hp) and 865B (193-205-220 hp). Graders comes with 12-13 moldboard length and optional air conditioning provisions. Case India is looking to leverage its product support based on its network around 70 dealers with over 300 touch points across the country. Operating and maintenance

cost of Case Graders is best in its class backed by host of competitive operating features. To elaborate, their graders is equipped with variable horse power FPT engine renowned for its fuel efficiency. This also delivers robustness and reliability especially for Indian conditions. Its graders are equipped with power shift ZF Transmission with torque converter, lock-up system, delivering better fuel efficiency and appropriate quality of work. The machine has a multi curvature mould board which reduces the resistance coming on the engine and so reduces fuel consumption as well as increases productivity. The added features are structural stability, ease of maintenance featuring ease of engine compartment access along with daily service checkpoints for quick-efficient-maintenance of equipment. It believes that the long-term growth potential of the Indian infra sector and consequently a huge opportunity in the CE segment. Based on the strong demand fundamentals, it have plans to further enhance its product offering and dealership network to serve their customers at the best possible levels. Case India provides parts support, through its centralized warehouse in Indore. Its Customer-Driven Product Definition process includes inviting equipment users to participate in defining and improving new products which further helps to understand the customer needs in order to develop and test new models basis customer specifications. It also has dedicated training centres which organizes training programs all-round the year to keep the operators, customers up to date with latest practices and techniques. As product support value proposition it has factory trained technicians at its Indian manufacturing facility, ensuring top-notch

|| DECEMBER 2017 ||

CONSTRUCTION MIR ROR

Special Theme:

Motor Graders

service professionals are working on equipment maintenance needs by providing a thorough service for the everyday wear and tear of the machines. Through Case India customer care centres and dealers, the customers have access to world-class equipment and aftermarket support along with industry-leading warranties and flexible financing. Caterpillar India showcases 2 models of its motor graders: 120K2, (145 hp) and 140K2 (175-190 hp) graders, powered by Cat engines. These graders are imported from Caterpillar’s China production facility. It has close to 40% market share in this segment in India and plans to increase the share, given the superior technology of the products that deliver reliability, scalability, about 30% higher level of productivity and cost advantage. The motor graders come with a unique ‘Cat AccuGrade™’ Caterpillar sensor that is based on 2-dimension technology so that the moldboard angle can automatically adjust itself on the gradients to be graded. The automated technology solution optimizes the operator’s job, which is critical as most road projects have very constrained schedules. It also curtails deployment of extra people to measure the gauges, contributes towards fuel savings as the job can be completed in shorter passes enabling operator to prepare the grader for the next level of compaction followed by grading of the sub base. The graders, designed for both road projects and mine haul roads, offer value for money. Although a Cat machine may be more expensive than other brands, it is a good buy, as it delivers a high Total Lifecycle Cost along with having resale value. its Cat dealers GMMCO and Tractors India ensure prompt service within 24 hours, and provide extended warranty through critical components remanufacturing. Leeboy: Because of very fierce competition on contractual rates being quoted, construction CoS are looking beyond initial equipment cost & delivery and concentrating on the actual cost of ownership. To this Leeboy has designed its motor graders using the latest components from globally renowned suppliers like Cummins, ZF, Oerlikon Graziano, Casappa, Walvoil, Safim, Apex Auto, Hella, Cobo and FW Murphy. Features that optimize productivity and fuel efficiency are built into the standard configuration. The best-in-class graders have a fully automatic power-shift transmission, variable fan drives, lock up-clutch, an electronic pump controller, advanced electronic diagnostic and display, telematics for remote monitoring, and advanced safety interlocks to prevent misuse. Leeboy markets its standard design graders for the domestic and export markets, and offers two models in India: 78xxl-2 (13.5 t, 150 hp) and 985 (15.5t, 173 hp), manufactured as per US technology at its Bangalore facility and designed for Indian jobsite conditions. Key components like axles, transmissions, 36

CONSTRUCTION MIR ROR

control valves, brakes, pumps and motors, seats lights, gel batteries, and electrical components are imported from Europe, while the steel structure and metal work are fabricated in-house. It have a clear roadmap on technical modifications based on the driveline, electronics, hydraulics, labour trends, industry requirements like higher completion rates, and more precision work. The 785i grader was the first model It launched in India, and it has already been upgraded three times over the last 4 years. The third series - the 785xl-2 - is in the market currently. Upgrades include cabins, tandem axle and better ergonomics. Similarly, the 985-series 2 is being launched very shortly with a new CRDI engine, heavy-duty circle gear system, and circle rotation gearbox with a built-in clutch. This machine will perform with high fuel efficiency in the Eco mode, and its boost system will make the grader deliver the same torque at a higher rpm. This year will also see the launch of 2 new graders: an 18t and a 22t, which will have a MOSFET driven power distribution module system to eliminate fuses and relays, and enable better diagnostic and troubleshooting of electrical faults by interfacing with the main display. Few other models will have the option of being powered by an electronic engine for a more superior performance. It are also upgrading the basic telematics system to have advanced diagnostics like monitoring temperature for water glycol, charge-air, transmission oil, hydraulic oil, engine oil, and individual hydraulic circuit pressure. This will reduce the need for skilled technicians in the field, as It can troubleshoot from the head office, and thereby curtail operational costs. Leeboy India has 12 dealers offering sales and aftersales service in Kerala, Delhi, Gujarat, MP, Rajasthan, WB. Training is provided to dealers, operators, sales and service teams at the training school in Bangalore, and onsite too, when required. Liugong India: has a wide portfolio of motor graders ranging from 150hp to 280 hp. Higher capacity from 180 hp onwards are manufactured at its Chinese facility. But with demand growing for 150 hp products, it is carrying out complete local production of these units at its Pithampur facility. Complete fabrication is done in-house, power packs are from Cummins India, hydraulic components and tires etc are also sourced locally. The motive behind localization to adapt India govt’s Make in India directives. There is almost 90% localisation of these units, which goes towards delivering lower initial owning and operating costs. This goes on towards making the products cost competitive. Hence, the rental agencies and sub-contractors, to whom the main contractors offload their plants, machinery and other assets and jobs, are able to get decent profit margins. With higher capacity machines, since the initial capital investment is almost 40% higher, it is well likely to offset the profit margins

|| DECEMBER 2017 ||

of the rental agencies due to higher payback. Fitted with Cummins engines, Meritor axles and Rexroth valve, and ZF transmissions, Liugong motor graders assure high efficiency and reliable performance. Its 150 and 180 hp graders are equipped with mechanical engine while the higher capacity equipment are equipped with Cummins electronic engines. The Chinese construction equipment conglomerate has been looking to tap the Indian mining sector for grading the haul roads. It have been customizing its products to make them suitable for mining application as per the norms of the Directorate General of Mining Safety. In accordance with this, its motor graders come with standard ROPS and FOPS cabins imported from HQ, rear view camera, fire resistant hoses, and automatic engine shut off valve in case of fire, black spot mirror and For delivering lower maintenance costs, the graders working at mines have a centralized lubrication system. Liugong India has 17 dealers in India, besides Nepal, Bangladesh and Bhutan. ACE: It has increased its focus on road construction business this year and is promoting its AG 176, 173 hp motor graders for road construction and mining. Along with setting up a dedicated sales and service team for their road construction business, they have also realigned their crane business team to promote and provide product support for motor graders and vibratory rollers. It have an edge over other companies in its pick-n-carry cranes with close to 65% market share and coordination with the cranes business channel will enable us to drive sales of its graders as most of its EPC customers are involved, directly or indirectly, in road construction as well. It are working on a strategy of placing the right product, closely attuned to the applications, based on right price and service backup. Conforming to the strategy, it is delivering its grader featuring very high levels of performance and reliability backed by the right aggregates. ACE motor graders, powered by Cummins India engines, deliver 5-10% higher level of output per litre of fuel. With advanced engineering, AG 176 delivers a high drawbar pull of 9540kgs and blade down force of 7140kgs. ACE grader comes equipped with air conditioned cabin as standard fitment and dozer blade and ripper are available optionally. Graders are produced locally at the company’s Faridabad facility with complete in-house fabrication, locally sourced components, hydraulics and hoses, and are competitively priced. Power configuration at 173 hp makes them suitable for dual application of road projects as well as mining, thereby giving value for money to the customers. It is considering producing 220 hp units in future. It has around 250 active units of motor graders in operation, 100 service locations across the country, and also provides operator training at site or at in-house training centre based at Faridabad. The company is ||www.constructionmirror.com/net||

looking pass on customer value through the grader based on its higher productivity, lower owning and operating costs. It draw great pride, and presumably the respect of peers and customers alike, from being a 100% Indian Manufacturing Co, enabling us to provide competitively priced product. Sany India is offering SAG 120-5, 120 hp, SAG 160-5, 160hp and SAG 200, hp motor graders for road construction and mining haul roads. The motor graders use components of reputed manufacturers. Rippers and dozers come as optional attachments. SAG 120-5 has a Euro 3 Cummins engine with auto preheating function. Hydraulic drives, enables step-less speed change and simplified operation. SAG-160-5 also has a Euro 3 Cummins engine, while SAG 200 is powered by Dongfeng Cummins engine, with features of the other two models. Sany India have commenced sales of these new models after homologation. its competitively priced products deliver high productivity and reliability. It has recently forayed into road construction in India, and seems in building up a dedicated sales and service team with channel partners in strategic areas. SDLG machines: Contractors are under pressure to meet construction deadlines so having reliable equipment can make a real difference. It pay attention to every detail of the machine and look for ways to maximize its productivity. The G9138, for example, is highly maneuverable. Through a fully digital instrument panel that includes electronic monitoring, the operator has precise control of the machine and can easily navigate it through a variety of work scenarios. The integrated access panel also offers straightforward inspection and maintenance. The operation of the motor grader is enhanced with its swing frame that delivers greater flexibility in a variety of work scenarios. The articulating swing frame’s movements allow the blade to generate more power and carry a heavy windrow. It also allows the unit to make turns at more acute angles for close-quarter work or work on smaller roads. For greater durability and easier operations over its lifetime, the swing frame’s

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composite bearing is lubrication and maintenance-free. SDLG India offers the G9138 and higher capacity G9190 motor graders for the Indian market. The graders are manufactured at SDLG’s facility in Linyi, China. G9190 is powered by the 148kw Deutz TIER III engine. It features a hydraulically-controlled movable blade. This according to the company delivers ultimate precision and performance on any terrain – from highways and airports to construction and agricultural applications. G9138, is powered by a 111kw Deutz TIER III engine. Its blade can cut depths of up to 575 mm and create bank slopes of up to 90 degrees. The sliding range of the blade is 500 mm, while it can be inclined up to 47 degrees forward and 5 degrees backward. Max gradeability in travel is 20 degrees. There is a wide range of projects in India, from airports to highways to road developments in rural areas. These 2 machines satisfy the demand of both largescale infra projects, rural developments. SDLG motor graders are supported by Volvo CE India present dealer network. It has an extensive network of experienced and established dealer partners across India. It are working hard with them to ensure It have the parts and the processes in place to provide necessary and timely support when its customers need it. It looks to strengthen its after sales and parts support both during warranty and in the post warranty period along with leveraging its operators training initiative. Mahindra and Mahindra Ltd (M&M) in Oct’17 announced its foray into construction equipment business by launching its first motor grader. The Mumbai-based company rolled out its first motor grader ‘Mahindra RoadMaster G75’ under the business vertical. The company’s motor grader is priced at Rs 34.99 lakh and around one-third of the cost of big ones being sold by other companies, he added. The company would introduce other products after establishing the product in the market. The RoadMaster G75, being rolled out of the company’s Chakan plant, has been designed and developed after an in- depth understanding of the needs of the

road contractor fraternity. The motor grader is most suitable for constructing small to medium roads as well as widening of state and national highways. It is also apt for applications such as embankment or earthwork for laying of railway tracks and levelling of large plots for industrial construction. The G75 offers a host of benefits to road contractors and is the ideal machine for spreading and grading applications for the entire road contractors fraternity. It offers an optimized solution and precisely caters to the road contractor’s grading needs for government flagship programs as Pradhan Mantri Gram Sadak Yogna and Smart City, as well as for major district roads, other district roads, border roads, rural roads and expansion of roads. The G75 is powered by a 79 HP DiTEC engine developed by Mahindra which is coupled with a 3 m (10 ft) wide blade. This equipment is optimized to deliver zero compromise grading at 33% as compared to conventional motor graders. The product comes with a one year, unlimited hours warranty, eliminating the customer’s anxiety when it comes to expensive repairs. This is possible due to Mahindra’s engineering and manufacturing capability, backed up by a gruelling testing regime and sourcing of the best components. The G75 has undergone over 6,000 hours of rigorous testing in the harshest of terrains and for the toughest of applications. It has been validated on all performance, safety and reliability parameters and is backed by Mahindra’s dealer sales and service network which has unparalleled reach across the country. It is equipped with apt technology that is affordable and coupled with unmatched quality, superior style, operator comfort and its innovative telematics technology, DiGiSENSE. The Mahindra RoadMaster G75 is being manufactured at Mahindra’s state-of-the-art facility at Chakan, Pune. Mahindra’s Product Development team has utilized extensive consumer insight and feedback to develop this product which is built to withstand India’s rough terrain and heavy usage. In addition, the product offers all the relevant features using the latest vehicle systems and technologies at competitive prices.

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CONSTRUCTION MIR ROR

INTERVIEW

Q. Brief us about the MB Crusher India Pvt Ltd?

MB India of Mumbai is the Indian subsidiary of MB Crusher. The company is the world leader since 2001 by designing, producing and selling the very first jaw bucket crusher. Since 2001, MB offers crusher buckets for excavators, skid loaders, and backhoes of all sizes in the fields of crushing, demolition and road construction. The values of the family owned business have enabled MB to reach levels of internationally recognized excellence: founded and headquartered in Italy, the company establishes itself globally through 7 international subsidiaries with logistic centers located on different continents, as well as an extensive network of authorized dealers and service support throughout the world.

Piero Guizzetti

Q. Kindly share your Excon 2017 plan with us and your expectations?

CEO MB Crusher India Pvt. Ltd

ANOTHER PRODUCT FROM MB IN TUNNELING AND ROAD SURFACING SPACE MB India, the pioneer in mobile crushing and screening models to go live with mobile crushing solutions at EXCON’17.

We will be launching a new product in a new category towards the end of the first quarter of calendar year 2018. It is a category that is in a nascent stage, and we are closely monitoring the developments in this space. The main applications will be tunnelling and road surfacing. We will use Excon as a platform to start gauging specific client requirements and compatibility with our solutions so that we may give final tweaks before the official launch. Another innovative concept of MB at Excon will be that we will be undertaking India’s first live demo showcasing mobile crushing solutions at our outdoor stand.

As infra sector in India is in high swing, how do you see current Indian market as and what are your preparations?

Our market is highly correlated to overall infrastructure development which is seeing considerable improvement in the overall ecosystem, from bidding procedures to financing, public sector fund allocations and so forth. Specific to the crushing industry, there is still a low level of mechanization but we are seeing rapid changes to this. An important contributor is the consumer’s shift from an evaluation based solely on capex, to operating and total life cycle cost. We are in tune with the value sensitivity of the Indian customer, which is very different from price sensitivity. As we go forward, we are confident that mobile crushing and screening solutions will continue to make inroads in new application areas but also start to replace traditional crushing solutions in some cases whereby the added utility of the products 38

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provides additional revenues streams to the client and decreases idle time of the investment.

Q. Any new technology/product that you

thinking on to come up with, and how the MB products and services are different from the other products available in the market?

We are the pioneers who have conceptualized the product, and we have an enviable track record. We have over 90 per cent market share, globally. We are dealing with this very specific product; and all our efforts from sales to service to R&D just goes into this product. We do feel this gives us an edge vis a vis competition. The competitors are new entrants and have just got into this space. When it comes to materials used for production, performance parameters which means longevity of machine, we are no.1. Nobody in the world has the breadth of product portfolio that we have going from 2,8T all the way to 70T. We have not only the highest number of models that can cater to any machine, but also have a complimentary portfolio – a complete one stop solution for specialized attachment products.

Q. Do you find any obstacles towards the Indian market as government now days very open to the infrastructure growth?

On a positive note, the roll out of GST has brought down our cost because now we can get an imported item and get full credit with GST and this can be passed on to the customer. It is still to be seen whether the downstream is actually going to be affected which will have its bearings on the whole market. However, we went about business as usual and we have seen a pickup in sale post GST. We feel that evidently in medium to long term there is no doubt it is going to be positive.

What are your future plans and expectations with the Indian Market?

The Indian consumer is increasingly interested in understanding the economic feasibility of our products as they receive positive feedback from the exponential rise of our installed base in the country. We believe that the overall crushing and screening industry will continue to remain highly dependent on the traditional aggregate industries. We distinguish ourselves by being perfectly compatible with traditional requirements while also satisfying previously unmet demands via the mobility of our products and efficiency even in hard to reach areas and construction sites where space is limited. ||www.constructionmirror.com/net||

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CONSTRUCTION MIR ROR

INTERVIEW Q.

and giving value for their money. TECHMATIC

Excon has been very important to us. We have been consistently displaying our new and innovative machines and getting good response. This Excon we will be focusing on our latest fully automatic Concrete Block Machine SPM30. With this we shall also try to educate about the bigger board machines offered by Techmatik. Techmatik acquired by Columbia, offers a very large capacity, fully automated, high technology Concrete Block Plant made in Poland.

keeps the costs at a reasonable level. It has many advantages to suit Indian conditions.

What all are your preparation have applied the most innovative engineering for the upcoming event Excon 2017? solutions that ensure effective production and

What are the challenges and opportunities you facing in the Indian market and how will you cope up with that?

Ramesh Babbar Director & President Columbia Machine Engineering (I) Pvt. Ltd.

his Excon we will be focusing on our latest fully automatic Concrete Block Machine SPM30. With this we shall also try to educate about the bigger board machines offered by Techmatik. Techmatik acquired by Columbia, offers a very large capacity, fully automated, high technology Concrete Block Plant made in Poland.

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India is a very price sensitive and price conscious market. Customers do see huge investments may not bring good results in a way they want. Hence a little hesitation in purchase such equipments. Our machine comes in various models and different price segments, which gives us an edge over competitors choosing our customers and we are able to make through the most.

Q. What are your upcoming projects, events and products?

In India, our existing Concrete Product Machine Model SPM20 provides our customers a plant with an ideal combination of a high technology machine with medium capacity and low investment in pallet and product handling. Its simplicity and ease of installation/dismantling makes it an ideal solution for project works. The Model SPM30 machine is provided with an unique Rack Loader /Unloader Model UL30 made in India with technology from Columbia Machine, USA. UL 30 provides completely automatic loading and unloading the production pallets in to the Racks. Further cured products are automatically cubed on wooden pallets using the Plate Style Cuber PSC 200 again made in India with technology provided by Columbia Machine USA. This increased Pallet and product handing efficiency and improves productivity as well as reduces product handling damages drastically. Columbia has also taken over “TECHMATIC”, a Polish company which sells large board machines in many countries. We would be soon launching those products in Indian market. It would be very cost effective for Indian customers

Q. Government has many plans and

upcoming projects for infrastructure in roads and railways growth under their hands how beneficial is this opportunity to you? Road development provides concrete block manufacturers with opportunities to supply paver blocks and retaining wall blocks. Concrete pavers are practical solution for the construction of roads (particularly in high rainfall areas like Assam), high traffic intersections and shoulders because of their high compressive strength, wear resistance and easy maintenance. Retaining wall blocks produced on Columbia machines have the advantage of precision height control and are extensively used for bridges and flyovers. Infrastructure development such as sea ports, container terminals, inland container depots and the Dedicated Freight Corridor (DFC) between Delhi and Mumbai, (covering an overall length of 1,483 km passing through 6 states) will result in a huge requirement of high strength paver blocks.

What are the benefits do the customer gets from the Columbia Machine Engineering (India) Pvt. Ltd. from its competitors?

Most concrete block machine manufacturers use Table vibration technology. This is commonly found on big board or large pallet concrete products machines. It uses vibrators which are connected to impact bars, these bars strike the bottom of the production pallet to create vibration throughout the product. It is inherently inefficient due to the random motion, which leads to poor height control and non-linear product densities and textures. Columbia’s patented vibration technology CVT, combines 80 years of innovative engineering and field proven designs with industry leading manufacturing capabilities. CVT enables producers to create the highest quality and widest range of products in the world. Uniform products height, consistent product weight, superior appearance, reduced cement requirement and sharper product edges are some of the advantages of CVT over traditional table vibration technology. ||www.constructionmirror.com/net||

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CONSTRUCTION MIR ROR

Focus: Earth Moving Equipment

Earth Moving Equipment Market: Scenario, Dynamics, Potential, Challenges help the ECE industry achieve its potential for growth are the increase in demand from end-user industries and higher adoption of ECE in traditional construction applications. However, to meet its unrealized potential, the industry will need to address some tough challenges. Best practices from other countries, as well as from successful domestic projects, offer ways to increase ECE adoption by construction CoS. Ultimately success will depend on close collaboration between govt and ECE OEMs, to clear away some of the roadblocks.

Benefits of Using ECE

Note: ECE is earth moving and construction equipment. Socrce: A.T Kearney analysis

brief outlook of ECE Industry in India

Earth Moving and Construction Equip. (ECE) market in India is expected to grow at a healthy CAGR of 20- 25% over the next few years, from FY13-14 levels of about 48,000 units. This

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would bring the market to between $16 bn and $21 bn by 2020, up from today’s $3 bn. Nevertheless, India’s ECE market is said to be underdeveloped. ECE penetration of the construction industry is relatively low compared to other countries, indicating there is significant room for growth. 2 primary factors that will

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Industry growth will primarily arise as a result of higher adoption of ECE in traditional construction applications. The use of ECE will not only propel the end-user industries of construction, mining forward but also create demand for ECE in new construction applications. Clear advantages are there to using ECE versus manual labor and low-end tech for construction applications, and it is important for industry executives to identify and communicate these benefits to customers. Quality: Among the most significant criteria for evaluating a construction company’s performance ||www.constructionmirror.com/net||

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CONSTRUCTION MIR ROR

Focus: Earth Moving Equipment

are the reliability and quality of the construction. Using construction equip. in complex and heavy construction activities will significantly improve both these measures. Employing construction equip. as opposed to manual labor will allow contractors to complete work with minimal quality defects, shielding them from claims arising from poor workmanship. Because many more construction contracts in India today include a defects liability clause, it will be to construction CoS’ advantage to increase their usage of ECE for construction activities. Offering higher-quality construction output will also provide end users with an inherent advantage over their peers and improve their reputation for reliability. Efficiency: Construction equip. overcomes many of the limitations associated with manual labor, from its inconsistency; due to weather, attendance, health, socioeconomic conditions, and a variety of other factors; to the time it takes to complete projects; construction equip. can reduce a project’s completion time significantly. For example, using basic equip. for mixing can produce around 18 cubic meters of concrete per hr versus manual concrete mixing which averages about 20 cubic meters of concrete over the course of an entire day. By completing work more quickly, contractors can redeploy equip. to other projects, reducing downtime and achieving better returns. Profitability: Increased productivity and the reliability of construction equip. ultimately translates into higher profitability from fewer defect-related claims and the avoidance of delay penalties. In addition, using construction equip. can significantly reduce the cost of large-scale projects. It also allows for proper planning of work schedules, making it easier for CoS to complete their projects within budget at a reduced overall cost. Safety: Any construction site is the locus of multiple high-risk activities. There are obvious safety concerns associated with workers operating on the ground, particularly within confined spaces when heavy material is being moved around. Furthermore, exposure to severe weather conditions over long periods of time can subject workers to serious health risks. Using ECE for construction activities (particularly for dangerous tasks or in hazardous environments) helps mitigate or even prevent much of this risk. Assured of better safety, construction workers can perform their jobs more effectively and efficiently. Contractors with a better safety track record improve their profitability because they can avoid costs associated with accidents and labor compensation. They can also negotiate with insurance CoS for better premium rates.

Construction industry to Drive Growth

With growth in the construction industry the Earthmoving equip. market to register a strong growth. Additionally increasing urban population demands for

CONSTRUCTION MIR ROR

better dueling facilities proving growth opportunity for the construction industry, which in turn increases the demand for heavy machines including earthmoving equip’s especially in the developing countries such as India and China. Earthmoving equip. is referred to heavy equip. (heavy-duty vehicles designed especially for executing construction operation, mostly which involves earthwork operation). These heavy equip’s are used in the construction industry to move large amounts of earth or to dig foundations and landscape areas. Earthmoving equip’s are known with different name in different region such as heavy trucks, heavy machines, construction equip., engineering equip., heavy vehicles and heavy hydraulics. Earthmoving equip. operates through the mechanical advantage of a simple machine where the ratio between input force applied and force exerted is multiplied. Most earthmoving equip. uses hydraulic drives as a primary source of motion. On the bases of operation performed by the machine the global earthmoving equip’s market can be bifurcated into excavators (compact excavator, dredging, dragline excavator, front shovel and others), loaders (skip loader and wheel loader), construction tractors and others (grader, scraper, track loader, material handler and others). Earthmoving equip’s are majorly applied in the construction industry (private or govt). Other major application of earthmoving equip’s includes mining, digging and other heavy duty work. Construction industry is expected to maintain its dominance in the global earthmoving equip. market. Asia-Pacific has the largest market share for earthmoving equip. accounting for more than two fifth of the global earthmoving equip’s market, followed by Europe and North America. China leads the global earthmoving equip’s market. Asia-Pacific region is expected to maintain its dominance in the forecasted period by 2021. Europe and North America region are expected to witness average growth in the coming future. Govts and private sectors across the globe are investing in better Infra facilities. Construction of roads, residential buildings, healthcare centers and educational institutes is expected to increase the demand for earthmoving equip’s to some extent. Some of the major players operating in the global earthmoving equip’s market are Atlas Copco, Bobcat Company, Bharat Earth Movers Limited, Ingersoll Rand, CASE, New Holland and Track Marshall. Technically skilled worker with special training are able to operate any heavy equip’s. Construction equip. accounts for around 52.4% of the total cost incurred in any construction project. The construction industry is a primary demand driver for earthmoving and road construction equip.. Increasing mechanization of industry and construction facilitates greater penetration of construction equip.. Recent Govt policies around tax benefits for Infra ventures

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have boosted equip. usage. Construction investment is composed of three components Infra investment, real estate construction investment and industrial construction investment. Broadly, there are 4 arms of the earth and construction equip. industry: earthmoving equip., material handling cranes, concrete equip., and road building equip. Earth-movers form largest segment of the construction equip. sector in India.

Market Scenario

Technological focus has led to a sig. no. of development initiatives and superior equip. Major tech developments such as real-time monitoring facilities for detecting as well as monitoring system failure are forecast to propel demand. Growing adoption in the commercial sector will also favorably impact revenue. Multifunctional machinery has witnessed considerable adoption over the recent past, and provides several advantages over traditional or single function counterparts. These include reduce time and labor, as well as high degree of efficiency and productivity. Growing large scale construction projects along with enhancement in after-sales services are among other key drivers. High capital and operating expenditure may restrain growth. Unpredictable raw material cost, uncertainty in economic conditions, and the presence of emission control regulations are factors responsible for impacting the global earthmoving equip. market price trend. Construction is forecast to remain the leading application, with over 60% of the earthmoving machinery market share in 2015. Underground mining equip. include hydraulic shovels, long wall mining equip., cable shovels, etc. Other mining equip. includes mineral processing machinery, surface machinery, pulverizing & screening equip., and crushing, drills & breakers. Demand across these sectors is predicted to boost earthmoving equip. market size. Global surface mining equip. market is predicted to exceed USD 29 bn by 2023. Increasing mechanization of construction processes coupled with strong economic growth is anticipated to boost the Asia Pacific industry demand. Increasing spending in Infra activities may also escalate demand, with 8.3% CAGR estimates. Industry players prioritize lower price points as opposed to high energy efficiency in price sensitive regions. They also aim to reduce production cost and meet emission regulations. Investment in tech, innovation and R&D are the key growth strategies employed to address changing customer requirements. Competitors aim at providing product differentiation as the customer loyalty depends on competitive pricing, quick delivery and after-sales technical support. Rental CoS have enabled contractors to complete specific job req’s with greater cost control, flexibility. Rising trend towards usage of used heavy machinery across several countries is expected to prove ||www.constructionmirror.com/net||

as a threat to the new products that are to be launched in the industry. India Earthmoving equipment market size, by application, 2012 - 2023 (USD Billion) 7,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Others

Market Dynamics

Earthmoving equip. market in India is estimated at about US$ 1.4 bn. The predominant sub-segment in this is excavators, which account for just over 1/2 the market. Excavator: The excavator market in India was around US$ 733 mn in FYâ&#x20AC;&#x2122;06 with a total of about 4455 units being sold. There is a sizeable market for used equip. as well. Excavators have registered a 30% CAGR for the past 4 years. Road building equip: Used in the various stages of road construction. Widely used ones are excavators, diggers, loaders, scrapers, bulldozers, etc. Globally, leasing is the most popular way of obtaining new equip. - constitutes around 45-55% of construction equip. market in the US. In India, however, equip. ||www.constructionmirror.com/net||

leasing is not as widespread; it constitutes only around 5-8% of construction equip. market. Backhoe Loaders: India is the second largest market for backhoe loaders in the world with a market size of approximately US$ 358 mn. The market has been growing at a rate of close to 37% CAGR over last four years. Going ahead growth is likely to be at least 11% CAGR over the next few years. Most industry players however expect much faster growth (around 30-40%) in the near term. JCB India is the leader in this segment with a share of over 70%. The total market for wheeled loaders was approximately US$ 64 mn in FYâ&#x20AC;&#x2122;06 with a total of about 1321 units being sold and has been growing at a CAGR of about 41% over the last 4 years. The growth is expected to continue at 10% CAGR over the next few years. As in the case of backhoes, faster growth of about 20-30% is expected in the near term. Reconditioned equip. account for about 5 10% of this segment. The segment has seen erratic growth over the last 3 years owing largely to delays in the road Infra development plans of the Govt. However, the CAGR over the last 3 years has been healthy at 20%. Tunneling & Drilling Equip.: Tunneling & Drilling equip. are primarily used for mining, irrigation, construction (road, ports, airports, railways, power, etc.), urban Infra, and pipeline Infra. The product range in this category includes Rotary/DTH drilling, hammer track drill, boring equip., and demolition equip.. BEML & Caterpillar lead the market of

construction vehicles, consisting primarily of dumpers & dozers. Earth-moving Equipment

Road Building Equipment

Construction Equipment

Material Handling and Cranes

Concret Equipment

Buldozers: Generally bulldozers are believed to be the most heavy-duty machines on the market. Bulldozers are incredibly strong and the best choice for shifting large amounts of dirt on sites where there are wide open spaces, rough grading, and grinding rock. Bulldozers are easily identified by the huge blade at the front of the equip. that is controlled with the use of hydraulic pistons. Skid Steer Loaders: Skid steer loaders can be used for the widest range of purposes of all heavy earth moving machinery. Easy to use, being on wheels, with a tight turning range, is the best choice for smaller sites. Skid steer loaders help lower soil compaction, work well in difficult conditions such as snow/mud,

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CONSTRUCTION MIR ROR

Focus: Earth Moving Equipment

and have a limited impact on finished zones because of their tread system. Motor Graders: Most often employed to fine grade, shift small amounts of dirt, prepare the base before laying asphalt, motor graders are identified by their longer adjustable blade used to make surfaces smoother. They also feature an additional blade so they can be used for mining underneath the ground. Trenchers: Trenchers are mostly used to dig trenches before pipes are laid down. A range of different trencher machines are available including walk-behind modules, smaller-sized trenchers or heavier equip. used to trench firmer ground. Trenchers are highly versatile in that they utilise alternating digging functions according to the needs of the job, Should be dealt with by experienced professionals because they can be very dangerous.

Market Potential

Among product types, crawler/wheeled/compact loaders segment is estimated to account for a major share and dominate the earth moving equip. market over the projected period. The segment is estimated to gain 90 basis points between 2017 and 2025, owing to China remaining the biggest market for wheeled loaders as the country accounts for the largest share of the earth moving equip. market. The segment is estimated to create twice incremental opportunity than that of the mini excavators segment between 2017 & 2025. The crawler/ wheeled/ compact loaders segment

CONSTRUCTION MIR ROR

is expected to create a total incremental opportunity close to US$ 15 Bn between 2017 and 2025. The segment is projected to reach a market value of more than US$ 65 Bn by 2025 end, expanding at a CAGR of 7.2%. The crawler/wheeled/ compact loaders segment is estimated to be an attractive segment in terms of market share owing to the increasing demand from the construction industry in Asia Pacific. The global earthmoving equip. market is expected to reach USD 184.56 bn by 2022, according to a new study by Grand View Research, Inc. Technological advancements such as facilitation of real-time monitoring for detecting and monitoring equip. failure are anticipated to fuel product demand. Vendors are increasingly investing in R&D to develop solutions in order to improve machine operations. Tech products such as AccuGrade Grade Control System and Computer Aided Earthmoving System (CAES) are increasingly being incorporated. Manufacturers also offer products with GPS tech and other electronic control modules and database tools for enhancing product offering. Increasing mechanization of construction processes coupled with strong economic growth in Asia Pacific earthmoving machinery market is anticipated to boost consumption in the region. Rising expenditure on Infra activities is also expected to escalate demand significantly over the coming years. Earthmoving Equip. Market size was USD 104.97 bn in 2015 with revenue estimates of USD 192.45 bn by 2023, at 7.9% CAGR. Increasing transport Infra development worldwide and favorable govt initiatives

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is expected to drive growth.

Some key challenges in increased adoption of ECE for construction activities in India.

Limited customer education on the benefits of ECE: Typical Indian buyers of ECE still rate cost as the primary criterion for their purchase decisions. Customer education is not always delivered by OEMs, who are ideally placed to communicate the benefits of ECE versus manual labor or low-end equip.. With the introduction of multi- purpose, complex, and specialized equip. to the Indian market, there is even greater need to knowledgeably communicate the benefits of new and improved features. Raising awareness in end users of the quality and reliability benefits offered by ECE will help broaden purchasing criteria beyond acquisition cost. The importance of proper use and care of construction equip. is poorly understood by most end users, and often equip. is not maintained and operated in accordance with OEM instructions. As a result, OEMs are reluctant to offer buyback schemes, invest in reconditioning, or explore reselling options. Lack of a rental, leasing, and used-equip. market: ECE rentals in India are only 7 to 8% of the total ECE market- much lower than other developed and emerging economies. Not only is Indiaâ&#x20AC;&#x2122;s ECE rental market highly fragmented and underdeveloped, but players that operate off the books for cash transactions- offering lower rates and avoiding paying

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taxes- also have a dominant presence. In addition, most contractors in India prefer owning equip. to renting it, which has slowed the evolution of the ECE rental market. The rationale for this preference is that long projects tend to run into delays, driving up the cost of renting. Tender prerequisites often include proof of ownership of equip. on the part of contractors, making renting less attractive. In addition, leased equip. is considered to be both a “good” and a “service” under Indian tax law. This makes leasing subject to dual taxation. Renting equip. is also difficult because there is no formal trading platform for used equip.. A lack of national registration procedures for ECE makes it difficult to determine residual value, further hindering the growth of the used equip. market.

Lack of execution discipline and govt support: The majority of construction projects in India are awarded to the lowest bidder. Given the limited focus on other criteria such as quality of construction, timeliness, and safety commitment, contractors- especially small contractors- do not see the point of investing in the latest technologies or purchasing high-end equip.. Because there is very little procedural discipline, and quality checks are intermittent at best, contractors opt for the least expensive route, employing manual labor and using only low-end or even obsolete equip.. Unlike govts in most developed nations, the Indian govt does not mandate the use of construction equip. in projects. Another roadblock to ECE adoption is the host of regulatory and taxation issues that prevent equip. operators from performing their work seamlessly. For example, because there is no national registration procedure, it is difficult to obtain an all-India permit, meaning interstate movement of construction equip. becomes a major challenge for large national operators. The problem is compounded by the different entry taxes, RTO (motor vehicle) taxes, octroi (local entry taxes), and other taxes imposed by individual states. In addition, the govt has delayed the release of funds for approved Infra projects pending various policy decisions, which has adversely affected the liquidity of contractors and reduced the demand for ECE. Lack of skilled and trained manpower: Finding enough skilled manpower for the operation and maintenance of ECE is a major challenge for the construction equip. industry. By 2020, the ECE industry will need an estimated one-lakh trained operators and three-lakh ||www.constructionmirror.com/net||

trained mechanics to match its projected growth. A lack of coordination among govt agencies, OEMs, and construction CoS has plagued efforts to create specialized skill development programs. ECE training institutes run by OEMs tend to be too expensive for most personnel seeking employment in this field. Cost is also an issue for technical training institutes, which have trouble affording the costly equip. needed for hands-on vocational training. For the three-quarters of the construction industry comprised of small contractors, finding qualified workers is not even a priority. They prefer the lower-cost alternative of offering on-the- job training to their pool of unskilled operators and mechanics. The lack of national safety and quality guidelines for construction sites only encourages small contractors to make do with less-qualified workers. Poor uptime of construction equipment: ECE assets are subject to a high level of wear and tear, yet maintaining uptime is of the utmost importance to contractors. Unfortunately, a host of factors, including substandard maintenance, a scarcity of trained mechanics, and a lack of spare parts, adversely affect ECE uptime. These difficulties are reflected in the significant under-penetration of the after-sales market for ECE in India. After-sales service revenue for ECE OEMs in India is pegged at between 2 and 8% of their total revenue, compared to 12 to 20% for OEMs globally. Typically, equip. in India is used beyond its expected life span, indicating the huge growth potential for service and spare parts businesses. The Indian ECE components and aggregates industry is facing its own set of challenges. High variability in OEM demand for components and aggregates makes capacity planning a challenge for suppliers. Poor distribution reach for spare parts, stiff margin pressures, and a tech gap are all problems that prevent the industry from addressing low ECE uptime. Starting construction activities without all the requisite approvals and clearances inevitably leads to project delays, reducing ECE utilization and resulting in revenue loss for the contractors. Availability of financing: Equip. financing in India is another challenging area. The Reserve Bank of India (RBI) has tightened its monetary policy, increasing the cost of borrowing for equip. financiers. As contractors struggle to bring in new projects and obtain timely payments for completed work, they have been forced to delay loan repayments. Both of these issues have led equip.-financing CoS to either cut back their funding support or raise the interest rates they charge contractors. While OEMs do offer limited financing options, most of them lack in-house financing arms and must therefore work through banks or non-banking financial CoS (NBFCs). The payment terms offered for first-time customers are unfavorable, with shorter payback periods and higher

installment amounts. This is particularly detrimental to industry growth prospects, since firsttime ECE users make up about 30% of the overall customer base. Many small construction players do not have proper access to institutional financing and are therefore dependent on NBFCs to meet their financing needs. However, due to a lack of adequate regulatory support, NBFCs do not operate on a level playing field when compared to banks and other financial institutions. For example, unlike banks, they are not empowered to move against defaulters, nor do they have access to debt recovery tribunals. This further increases the moral hazard among borrowers for willful defaults. The RBI’s recently announced revised framework for NBFCs, aligning their bad loan norms with those of banks, is not expected to kick in until Mar’18.

Way forward

Govt is aiming serious investments in some of the core areas of Infra. Here are some of the projects which will shed light on the growing prospects of the earth moving equip. business/industry. The FYP lays out an aggressive scheme for road network development approximately Rs 9.15 lakh Crs of investment is planned over the five-year period. An investment of Rs 37,880 Crs in NHAI and state roads is proposed in the new govt’s Union Budget, including Rs 3,000 Crs for the northeastern region. Further, Rs 14,389 Crs has been earmarked for the improvement and construction of rural roads through PMGSY program. Airport improvements are also planned, with Rs 88,000 Crs of development earmarked during the ongoing FYP period to cater to the expected doubling of passenger- and cargo-carrying capacity in the same period. According to the announcements in the Union Budget FY14-15, the govt will launch a scheme for the development of new airports in tier 2 and tier 3 cities through public-private partnerships. They will also put forward plans to build 200 low-cost airports in the next 20 years to connect Tier I and tier 3 cities. Govt also plans to invest INR 5 lakh Crs in irrigation during the FYP period to realize its target of increasing the gross irrigated area for India by 13 mn hectares. Union Budget earmarked an investment of Rs 1,000 Crs to create Infra for the rural irrigation scheme known as PMKSY, which is aimed at guaranteeing water to farmers. A large-scale river-linking project has also been announced, and the govt has set aside Rs 100 Crs to fund a detailed study. Urbanization is a priority in the Budget, which outlines planned investments in many different areas of urban Infra development. A total of Rs 50,000 Crs has been allocated for urban Infra projects. Development of 100 smart cities as satellite towns of larger cities and modernization of existing mid sized cities which also include Metro rail projects planned for cities with populations greater than 20 lakh.

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CONSTRUCTION MIR ROR

INTERVIEW Q. What will be the main demand drivers in the equipment sector?

The main demand drivers will be new projects pertaining to widening of roads, construction of new flyovers and underpasses and, of course, metro rail, Airports, Power Projects construction and mining equipment.

Q. Around 90 per cent of equipment

sales are routed through funding from financial institutions. How has the recent hardening of interest rates affected the equipment market?

Jitender Aggarwal Director Aggcon Equipments International Pvt. Ltd.

e take pleasure to introduce ourselves as one of the leading hires of Road, Construction and Mining equipments in and around India. We have successfully provided our services to many Governments, Semi Governments Multinational and Private Organizations.

Yes, that is true. But it has a direct correlation with available projects in the market. Once we have more projects cleared on the table it will automatically help in easing out the financial crunch as well.

What are the main challenges facing the equipment rental segment in India?

In India, people like to own the equipment instead of hiring it. Further, the pride of ownership drives direct purchasing versus rental of equipment. The other aspect which prevents us from focusing on growing this segment is the slow legal process in India. Should a customer default on our payment/ fail to return the rental equipment, quick redressal via the legal system is slow and painful and therefore prohibits large companies from investing in this segment.

Q. Most customers insist on renting newer machines even if older machines are in good condition and still efficient.

few years, considering the latent untapped potential of lease-rentals in the Indian market. The new GST regime will have a liberating effect on this segment and will unleash this latent rentalsâ&#x20AC;&#x2122; demand in India. We see great opportunities with lot of projects in power, refinery, petrochemicals, fertilizers, metals , minerals , Railways,Airports&Roads getting kick started coming year. Our focus would be to ensure participation in each of these sectors. Though our immediate focus is to deploy our existing fleet on long term basis wherever we get opportunities, we are not averse for need based or project based expansion.

Q. What is the size of the equipment rental market in India? As a company, what is your own assessment?

Nobody knows it exactly. No definite statistics is available and it is difficult to arrive at the exact size. Besides, the views are hugely diverse. It could be about Rs.3000 crore rental per annum. This is very rough estimate and includes fleet owned by project owners, EPC companies & mechanical contractors.

How much of the equipment rental segment is with the larger players vis-Ă -vis the medium and smaller players?

Larger players definitely have an edge over medium and small equipment owners since the higher capacity equipments owned by mostly large players earn 10-15 per cent more rental charges from the end-users.

With the huge shortage of skilled manpower nationwide, how Most of the clients demand newer equipments on rent basis and the situation do equipment rental companies has not improved vis-Ă -vis older equipments. handle the situation? Thus, there is pressure on rental companies. Older equipments and machines, even if they comply with all safety standards, are preferred by only a few for deployment, that too at a lower price.

Q. What are the areas AEIPL will be focussed on?

The products are purchased from renowned manufacturers and our services are appreciated for timely delivery, cost effectiveness, and reliability. We expect robust demand in this segment over the next

A large number of equipment have been imported; both new machines and used secondhand machines, whereas operators, technicians and engineers for maintenance of these equipments are in short supply in India. Equipment rental companies, in small and medium sector, outsource the services of operators, technicians and engineers at a higher cost. Those equipment rental companies which have their own in-house maintenance facility are able to sustain maintenance cost and train skilled manpower.

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CONSTRUCTION MIR ROR

Special Coverage:

Machinery Hydraulics

Top Trends in Construction Machinery Hydraulics

he Indian hydraulics engineering industry has been the key player in the country’s rapid economic development, in both the arenas of infrastructure and production. In particular, the segment of earthmoving and construction equipment (ECE) such as hydraulic excavators, wheel loaders, backhoe loaders, motor graders, vibratory compactors, cranes, dumpers, tippers, forklifts trucks, dozers, pavers, batching plants, etc. is based on applications of hydraulics technology. Over the past two decades, the ECE has made enormous progress and grown both in size and diversity. The driving force in a hydraulic system is the electromechanical actuator, a tiny component that is capable of performing Titanic feats. It is similar to mechanical actuators except

CONSTRUCTION MIR ROR

that the control knob or handle is replaced with an electric motor. Rotary motion of the motor is converted to linear displacement. In this type of actuator, the lead screw does not rotate. Although it prone to wear and tear due to numerous parts, it is cheap and has several advantages such as Repeatable, Automated Operation, Self-contained techniques, Identical function in extending or retracting, Provision in design for position feedback, Energised by DC motors. All said and done, hydraulics engineering industry will be the decisive factor in the nation’s growth. The Planning Commission has confirmed that India’s infrastructure spending is in the range of 1 trillion US dollars during the 12th FYP. On this scorer, the govt has extended sops, including a large number

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of SEZs, to the capital goods industry of which construction equipment is a part.

Various Hydraulically Operated Devices in Construction industry

The working of hydraulically operated instrument is easy as compared to other instruments. The working of hydraulic instruments is efficient than conventional equipments. From above study it is concluded that the model designed by us is efficient for construction industry due to its properties of time saving and labour cost is minimized by the use of this model. Backhoe for Excavation Purpose: A backhoe loader, also called a loader backhoe, digger in layman’s terms, or colloquially shortened to backhoe within

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the industry, is a heavy equipment vehicle that consists of a tractor like unit fitted with a loader-style shovel/ bucket on the front and a backhoe on the back. Due to its (relatively) small size and versatility, backhoe loaders are very common in urban engineering and small construction projects (such as building a small house, fixing urban roads, etc.) as well as developing countries. This type of machine is similar to and derived from what is now known as a TLB (Tractor-LoaderBackhoe), which is to say, an agricultural tractor fitted with a front loader and rear backhoe attachment. The true development of the backhoe actually began in 1947 by the inventors that started the Wain-Roy Corporation of Hubbardston, Massachusetts. In 1947 Wain-Roy Corporation developed and tested the first actual backhoes. In April 1948 Wain-Roy Corporation sold the very first all hydraulic backhoes, mounted to a Ford Model 8N tractor, to the Connecticut Light and Power Company for the sum of $705. Brick Moulding Machine: The production of the bricks was carried out following the steps below. 1. The hydraulic oil tank was checked to ensure adequate oil level. 2. The oil supply valve to the hydraulic pump was fully opened. 3. The electric motor was then powered. 4. Feeder was positioned directly under the hoper. 5. Using shovel, the mix was fed to the hoper. 6. Holding the feeder handle, the feeder was moved to a position above the mould and then the feeder was shaken back and forth to make sure that the mould was well filled. 7. By depressing the lever of the directional control valve, the rammer was lowered into the mould and therefore compressing the soil to its final density. 8. Using the same lever but this time upward, the compressed soil block is now ejected. 9. Using palms of both hands the Green Block was removed from the machine to curing area. 10. The cycle was repeated for other blocks. Hydraulic Props for Slab Formwork: Hydraulic props consist of a sealed working cylinder with two valves, one for intake (setting valve) and the other for discharge (release valve, working valve) of hydraulic fluid. For increased stability the hydraulic props are equipped with a claw at the upper head-end and a base at the bottom. The function of the props is to stabilize incompetent roof or hanging wall. The positioned prop is telescopically extended by highlypressurized hydraulic fluid injected by means of a setting gun and wedged into place with a specific setting load adjusted according to the respective compressive rock load. When the rated load is reached during installation or by subsequent strata movement, the working valve engages and opens the cylinder. This yielding prevents damage to the support from increasing compressive loading. The optimal support is attained when the props are installed in combination with articulated bars which distribute the forces over a wider hanging-wall ||www.constructionmirror.com/net||

or roof surface. During prop recovery, the release valve is opened with a key, allowing the hydraulic fluid to escape and the prop, equipped with a spring, to recede. The prop is then available for reuse. Use of hydraulic single prop supports is only practical and economic where incompetent roof or hanging wall requires a support method which can be adjusted to meet rapidly changing conditions. Hydraulic prop supports are appropriate for short-term installations involving frequent changes of location due to rapid face advance, or where high prop-setting loads are desirable. Such conditions arise in coal mining with roof caving or backfilling, in long wall mining, in room and pillar mining, as well as in ore mining by overhand stopping. In addition, single hydraulic props are suitable for support of all special mining activities such as support of fault-zones or roof-fall areas, machine rooms, and face-roadway intersections. Hydraulically Operated Scissor Lift: Scissor lifts owe their mechanical capability to the pantograph. A pantograph is a series of linked parallelograms with hinged intersections that allow the operator to elongate the mechanism while maintaining the integrity of the geometric figure. The structural components of the pantograph serve as opposing line segments within adjacent parallelograms; geometric changes are therefore uniform across the mechanism. True vertical lift is accomplished by using components of equal length. Scissor lifts require linear motion to supply elevation and this force is provided by a pneumatic or hydraulic actuator, or a mechanical input such as a leads crew or rack and pinion drive. Scissor lifts under fluid power are preferred because a purge valve allows the lift to be lowered during a malfunction. Lifts with independent locomotion can integrate lifting and propulsion into a single power source, be it petrol or electric.

Trends in construction machinery hydraulics The global hydraulic equipment market for mobile applications is evolving, and there are three emerging trends that will have a significant impact on the market. Technavio recently issued a new report that focuses on the market and identifies emerging trends that have the potential to significantly impact the market and contribute to its growth or decline. These three trends include: • Availability of integrated solutions and service offerings • Development, adoption of smart cylinders • Autogenous manufacturing of hydraulic equipment Looking at the first, an increasing number of hydraulic equipment manufacturers are offering integrated hydraulic cylinder systems and solutions. The availability of integrated solutions and offerings

is helping to differentiate systems. Second, the integration of electronics with hydraulic cylinders is leading to an increase in functionality, accuracy, and improvements in controlled performance. The electro-hydraulic cylinders, also known as smart cylinders, incorporate electronic controls and servo valves such as transducers that provide electrically controlled valves and rod position feedback to ensure efficient operations. Finally, one of the emerging trends relates to the tendency toward in-house manufacturing, which affects the dynamics of the broader industry because many of the consumers of hydraulic cylinders also make up the largest manufacturers. Overall, the global hydraulic equipment market for mobile application is expected to grow at a CAGR of close to 6 percent from 2016 until 2020. The growth in construction and material handling has led to this rise in demand. Mobile machinery accounts for the majority of off-road vehicles, including pick-up trucks, diggers, cranes and harvesting tools. The most popular items sold were hydraulic power packs for mobile machinery. This demonstrates the clear influx in demand for mobile hydraulic powered machinery. Mobile machinery can use different types of drive technology to increase fuel efficiency. A critical piece of the construction puzzle is the machinery used to make the work faster, safer and more efficient. Excavators, loaders, graders and dump trucks are common at every construction site, and some of these machines rely on hydraulics for every part of their operation, including the drive wheels in most cases. Although the case for hydraulics in off-highway machinery is strong even without the influence of technology, construction companies want to do the job faster and more efficiently. Currently, there is a very strong development of control by wire instead of the conservative direct control. The reason for this is electronics are easier to implement, and manufacturing costs are decreasing with the amount of products becoming available. Manufacturers of construction equipment are also focusing on cutting costs during manufacturing of their machinery, and a great part in which costs can be reduced is the assembly of machinery components. In addition, manufacturers of construction equipment components have realized being able to offer plug-and-play solutions greatly enhances selling opportunities. Nowadays, suppliers offer electronic solutions for issues that could not have been dealt with hydraulically, such as with hitch control (EHR electrohydraulic hitch control). EHR provides benefits to tractors, such as improved highway performance when the tractor is hitched to an implement, and reduces soil compaction on sensitive fields.

Power density advantage…

The mobile hydraulic industry prides itself in using high-pressure systems to take advantage of the power

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CONSTRUCTION MIR ROR

Special Coverage:

Machinery Hydraulics

density of hydraulics, which is the primary reason construction machinery relies exclusively on hydraulic actuators. Power density is directly related to effort of equipment manufacturers to minimize space and weight and at the same time be able to increase the power capacity. Component suppliers are able to offer pumps that can handle higher pressures while being able to save on weight and dimensions. The current standard rises up to 450 bar nominal pressure for closed circuit pumps. In addition, component suppliers are developing products based on the market requirements instead of equipment suppliers designing according to what suppliers can offer. Power density is not the only positive development, as electrohydraulic dynamics are becoming more important. The realization of stable, dynamically efficient electrohydraulic control systems will provide users more precise cultivation and smoother operation, increasing safety while providing less wear and tear of auxiliary equipment.

Electronic controls….

The industrial hydraulic machine market has long been integrated with advanced electronics in the control of fluid power, which was a natural evolution since industrial hydraulics have long been electrically operated. In fact, due to the low cost of electronic controls on pumps in particular, manufacturers of pumps are able to offer pump controls that normally are taken care of by separate valves, thus eliminating the need of extra equipment, and also saving on customer costs. This knowledge is directly derived from the experience component manufacturers have gained from the industrial solutions. An important part of these developments is the implementation of safetyrelated control systems, which are already commonly used in industrial (hydraulic) controls. With electrical/ hydraulic safety related components available on the market specifically designed to protect personnel and also bystanders from risks, mobile machinery equipment manufacturers are able to combine electronic controls with a certain level of reliability. This reliability is established by the manufacturer of the components by means of test and/or simulation of faults. In addition, performance history of components is used to determine the reliability as well. Often, these components perform the tasks (process and safety) without the use of additional equipment. A simple example is an electronic joystick connected to a controller that activates a hydraulic valve. When an operator lets go of the joystick due to a safety breech in the surrounding area of the construction machine, the controller will de-energize the power to the hydraulic valve safely and the valve will return to a safe, de-energized position creating a safe stop of the machine.

Hybrid technology on the rise…

Because construction machinery are mostly wheeled 52

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vehicles, posit that some form of hybrid technology would be beneficial to the construction industry, especially because of the rapid stop/start cycles of equipment such as front-end loaders. The future is here already! Bosch Rexroth, for example, can deliver hydraulic drive solutions with CVT (continuously variable transmissions) specifically developed for energy savings. Another type of energy saving principle is the use of the flywheel with which suppliers are not only able to save on fuel consumption, but also able to meet the regulatory requirements. In this application, the flywheel is spun up to speed by absorbing inertial energy from the machine, such as has been used on F1 cars. Other examples of hybridization have already been developed in garbage trucks. They use a combination of a central pump/motor and hydropneumatic accumulators. The accumulator(s) will provide extra energy to the pump/motor- which is attached to the transmission- during acceleration. During braking, the fluid then pumps back into the accumulator(s), storing energy that would typically just be lost as heat from the vehicles brakes. This type of hybrid system can be seen on front-end loaders as well. Hydraulics in the construction industry will continue to be more safe, more reliable and especially more fuel efficient. Main drivers for this are the regulatory requirements on safety, fuel consumption and total cost of ownership. The latter point will trigger (if not already present) suppliers of parts and equipment to develop components that last longer, need less service and are more robust. With technology evolving, suppliers also will develop tools to troubleshoot the equipment from distance through the Internet. With being able to monitor or even control equipment remotely, security of data and control will follow suit.

So it’s clear hydraulically driven construction machinery will not only stay current, but also lead some other industries in the use of electronics and other technologies. So much depends economically and environmentally, that obsolescence is just not an option.

Smart hydraulics

Hydraulics industry in India is on a revival mode with new designs, materials, and manufacturing technologies are coming into the market. In the coming years, energy efficiency, fuel consumption, and the

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life-cycle of machines will become the major deciding factors for hydraulic systems. It is amazing to see the arms of the loader and backhoe of a backhoe loader moving at various angles when at work. The movement of an excavator arm with its bucket or a breaker is mighty in digging the earth or drilling a rock surface. These movements are made possible due to combined and coordinated functions of various hydraulic parts. The hydraulic system is a key component for operating working devices such as the boom, arm, bucket, breaker, etc. Hydraulic equipment operates with the help of a vast range of valves, pumps, filters and actuators. The hydraulic system includes parts such as cylinders, control valves, motors, engines, pumps, seals and packing, tubes, etc. Hydraulics is the bloodline of any construction equipment, similar to our anatomy. We need to take care of the filtration, pressure, and replacement time to time for best performance. To get best efficiency of the system, all OEMs including us take care of the above and inform users to maintain the system for optimum performance. Owners should help the operator understand the importance of this and avoid the waste of resource when a system is designed for proper functioning over its life.´ The hydraulics industry is making major strides in the efficiency and performance of its products. ´Hydraulics always has been the best choice for high powerdensity applications, but new designs, materials, and manufacturing technologies are extending that advantage like never before. These new components are destined to be a smaller piece reducing the footprint and enhancing the power density. The latest trends point to customers looking for the best usage of space, better power density, energy efficiency, accuracy and quicker responses. The marriage of hydraulics and electronics will deliver smarter products that combine the intelligence of electronics with the power density of hydraulics to enable all of these applications and many more that have not ever been thought of yet. It is observed that electro-hydraulic solutions would bring on the table the benefits of mechanical muscle with an electronics brain, helping to deliver high reliability, and guarantee specified uptimes. At the same time, these solutions are quick, efficient, accurate, compact, safe, and repetitive and user friendly. Also the mobile hydraulic industry is majorly dependent on its OEM customers from industries such as construction, agriculture, mining, etc. ´The mobile hydraulics industry trend depends on the trend in which these industries are moving. Presently, due to economic slowdown in India, these industries are witnessing a slower growth rate, thus the hydraulics industry´s growth is impacted. However, with the initiatives of the new government, we are hopeful that things will improve during 2015. ||www.constructionmirror.com/net||

Hydraulics has always been seen as a field whose systems lack the visual appeal of contemporary avenues such as mechanical or electronic systems. It neither had the allure of a crafted timepiece nor the sleek (look) and compactness of an electronic integrated circuit. However, as in the case of every industry, there were advances and developments. Traditional line mounted valves made way for a somewhat more compact sub-plate mounted setup with standard interfaces. The valves, which still retained their original bulkiness, were fashioned from the parts-in-body method of manufacture. While assembly time and piping were considerably reduced, the issue of size was still unaddressed. With the next quantum jump to screw-in cartridge valves (SiCVs), Hydraulic Integrated Circuits (HICs) will address the issue of size, piping as well as visual appeal. This will greatly reduce operating costs, system complexity majorly eliminate leakages while providing improved serviceability. Their compact size, low cost, reduced component requirement and a minimum effort towards customer end engineering would mean a much lower initial installed cost. Consumer interest and the initiative to invest in this new technology have only been energising rapid market growth. Due to slowdown in the market last year, OEM customers are not keen towards technology improvements. Instead, they are working on how to reduce cost, improve machine performance by reducing fuel consumption, etc. However, there are certain customers who are upgrading their machines and working towards introducing new machines in the market. So we are working with those OEMs on this front. But the fact is that though they were planning to launch these new machines in 2014, they had to postpone the plan to 2015 or even beyond due to the prevailing market conditions. So there is a delay in commercial production. Major equipment manufacturers are now keen on design improvements with special attention on reduced operational cost, improved machine performance by reducing fuel consumption, and low overall life-cycle cost of the machine. ´The equipment manufacturers and end-users are looking for complete solutions which can give them lower operating cost, higher productivity, ease of operations and reliability. In order to meet these customer needs, the entire hydraulics industry is graduating up the value chain from being just components suppliers to a sub-system

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supplier to a complete system solutions provider. Innovative approaches visible in the market are uses of electronic controls to make the machines more intelligent, to deliver better performance more efficiently, according to Razdan. Also, we are seeing new concepts like telematics, where the machine performance and maintenance can be remotely monitored through mobile/GPS network on a laptop/ smartphone. We at Danfoss are able to offer complete telematics solutions to customers wishing to install this innovative approach on their machines. In hydraulics, customers are slowly moving towards reducing fuel consumption. Also, use of electronics will pick up in the coming years because when Euro IV and Euro V are in place, Indian manufacturers will have to be more efficient and electronic control units should be on their engines. So there could be several factors in the machines to communicate with hydraulic components, where electronics will play a major role. This should be the major driver of the hydraulics industry in the future. Energy efficiency is of paramount importance in the overall performance of equipment. All hydraulic equipment essentially needs to fit into the prescribed energy efficiency norms by default. The end users, OEMs and consultants demand highly energy-efficient machines so that the running cost of power is kept low and consequently the total cost of ownership comes down. New designs, materials, and technologies are extending this advantage like never before. Very soon, the focus is anticipated to shift from components to integrated system solutions that merge hydraulics and electronics in increasingly innovative ways. The products from this kind of integration will combine the intelligence of electronics with the power density of hydraulics and enable all advanced applications. Efficient hydraulic system with low effort joysticks provides precise control regardless of a customer´s application. Elaborating on the hydraulics system associated with CAT excavators it can be said that, ´The 320D/D L Series 2 hydraulic excavators implement hydraulic system, with a main-relief pressure of 35,000 kPa (5,076 psi) and maximum oil flow of 2 x 202 l/min (53 gpm). This provides high hydraulic horsepower for digging and lifting, as well as for using heavy-duty, hydraulically powered work tools. Available couplers´including the Center-Lock Pin Grabber allow the operator to quickly change work tools and move from task-to-task for optimum

machine utilisation.’ The pilot-type hydraulic system provides low-effort operation and precise control and maximises efficiency. Boom and stick regeneration systems save energy during boom-down and stick-in operations, reducing cycle times and adding to overall fuel efficiency. Very evidently, the market in 2014 was slow. Not just for hydraulics but for the entire mobile equipment fraternity. With low investment interest and problems in coal production, there was a lull in the market. However, the earthmoving, construction and mining equipment industry is definitely showing signs of recovery. With a large upward swing in the general sentiment due to a fresh government and with the polity taking positive measures to reassure investors, both domestic and foreign, that they are pro-industry and pro-growth, there is a definite mood for investment. The promise of bringing clarity and transparency to portfolios such as mining, housing and infrastructure has galvanised businesses, both big and small, to prepare for what could possibly be one of the most rewarding times to be in this business,´ Dabholkar elaborates. The Prime Minister´s ´Make in India´ campaign is still in its nascent stages but we hope that indigenous companies like ours, who have developed technologies here in India, can have a platform to showcase our talent and quality in the global market. With the success of our homegrown Mars Orbiter Mission, maybe the world will start seeing India as the destination to outsource manufacturing. If we can launch a satellite into space for tenth of the cost as that of NASA, there is no reason we cannot dominate in almost every other field. Over the last couple of years, we have seen a trend that many of the Indian manufacturers of construction, agriculture and mining equipment have started exporting to other countries. This was not the case earlier. We hope that this trend will continue to grow in the future and it would offer more opportunities for us specially, on high technology electro-hydraulic systems. The ´Make in India´ drive would further encourage this trend. For many years, the casting, forging and precision industry is well established in India due to large automotive product demands. This has helped many hydraulic system manufacturers to bring down their cost and upgrade quality to global levels. Soon, it may become a reality that most of the established players will start exporting in a big way to developed countries.

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CONSTRUCTION MIR ROR

Industry Focus:

Mining Equipment

Mining Equipment Market is Flooded With Brands and Decision Making is a Challenge

CONSTRUCTION MIR ROR

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omestic coal consumption will outstrip production and result in coal imports remaining strong in the coming years. This is despite reforms made to Coal India that have helped to boost production in 2015. India’s iron ore output growth will be supported by the country’s MMDR Act, which will streamline licensing and reopen closed mines. However, weak global iron ore prices and additional mining royalties will prevent the sector from reaching its full growth potential. India’s bauxite production growth will remain solid, in order to serve the growing demand for domestic aluminium output. Strengths: Labour costs in India are low compared with other mining economies. Home to substantial reserves of coal & iron ore. Coal reserves are estimated to be 286 BTs. Iron ore reserves are estimated to be 23BTs and account for 6% of global reserves. Opportunities: Only 10% of the country’s landmass has been explored. Substantial potential for further mineral discoveries. India has more than USD1 trillion in Infra planned outlay between 2012 and 2017. This investment would be a key driver of demand growth for commodities, and would benefit the mining industry. Prime Minister Narendra Modi has begun introducing business-friendly reforms in the mining sector. Country’s coal sector, currently dominated by state-owned miner CIL, has been opened up for foreign investment. New ordinance will help to keep mines open by facilitating the renewal of mining licenses. New auctioning system will expedite the granting of mining licenses.

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Major mining activity is located along a band stretching from southeast to northwest. India presents opportunities for construction and mining equipment suppliers. 9 states dominate the iron ore and coal reserves in India. The states of Orissa and Karnataka have the largest reserves of iron ore. Coal reserves are more distributed with majority present in seven states. Selected large mining reserves. Jharkhand- 77 BT of coal reserve. Orissa44.8 MT of iron ore and 66 BT of coal reserve. Chhattisgarh- 46 BT of coal reserve. West Bengal29 BT of coal reserve. Karnataka- 34.3 MT of iron ore. No restrictions for mining, earthmoving and concrete crushing equipment segments in India. All areas open for 100% FDI. All sub-segments of mining and earthmoving equipment are open for 100% FDI in India. Many global majors have established wholly owned subsidiaries taking advantage of this. Govt to focus on improved productivity through better equipment. GoI’s 12th FYP sets to improving production from existing and new mines by adopting latest mining technology and equipment. Govt understands that new technologies are missing locally in India and have to be imported. 60-70% of the market demand is fulfilled by locally produced products. The market is controlled and dominated by foreign MNC’s. Almost 2/3rd of domestic production is by foreign MNC’s, either through own wholly owned subsidiaries or through joint ventures with Indian companies. While the trend has been to localize high volume regular equipment by international companies, high value advanced equipment is still imported. Trend for international companies has been to start with an assembly plant in India bringing knocked down kits from outside and gradually increase efforts for localization.

Mining growth

With the growing demand for increased output of coal & iron ore and other minerals demand for mining equipment and machinery is expected to grow manifold. India is on track to overtake the US as the second-largest coal consumer after China this decade. India wants to more than double coal output to 1.5 BT by 2020. The central govt has already taken specific actions including e-auctions of coal blocks; few blocks are already allocated and e-auctioned. As per the industry inputs, in the short term, the coal sector will drive the demand for mining equipment and that´s where demand for bigger equipment will grow. The Advance Estimates for 2014-15 show a rise in industrial growth to 5.9% as against 4.5% in 2013-14. The key sectors contributing to the industrial growth are manufacturing, electricity, gas and water, and construction sectors. High growth in thermal generation, captive mining and capacity addition in electricity, coal and cement sectors boosted their performance to 9.7%, 9.1%, 7.9%, respectively in 2014-15. The recent developments in Parliament where two Regulation Bills, Coal Mines Special Provisions Bill and Mines and Minerals Development (MMDR) Bill, were passed have provided a huge shot in the arm for the mining sector. This was sorely needed to boost the future prospects in the Indian mining industry as now sustained investments are envisaged over a long period of time. India has opened up coal mining to private sector after keeping most of it under state control for more than 40 years. Domestic and foreign companies (with Indian subsidiaries) will be allowed to commercially mine coal and sell it in the open market. Transparent auction of coal,

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CONSTRUCTION MIR ROR

Industry Focus:

Mining Equipment

bauxite, iron ore and other minerals will kickstart the economy and provide large-scale employment.Â´ Coal India has been directed by GoI to double production of coal from the present level of 500 mt to 1,000 mt by 2019-20. Most of this increase would happen via the surface mining segment and to achieve this, the volume of overburden to be removed would shoot up from 1,000 million cu m to 2,500 million cu m. This will result in greater utilization of existing deployed equipment while placing huge demands on the need to invest in additional mining equipment. The approval of two Bills augurs very well for the mining industry as private investment is expected from Indian companies as well as global mining giants. This is also expected to introduce world-class mining practices including high technology resulting in cost-effective volume mining which would compete with Coal India in the commercial space. It is also envisaged that investments in minerals other than coal, for eg, iron ore and bauxite will augure. Development of Infra and â&#x20AC;&#x2DC;Make in Indiaâ&#x20AC;&#x2122; initiative will increase the demand for coal, metals and minerals. In addition to generating a huge amount of money for the govt, coal blocksauctions would have a positive impact on the mining equipment demand, as the bidders would try to recoup the investment through enhanced production. It is also evaluating the possibility of replacing imported bitumen with locally produced cement for road construction, which would give a major boost to the cement demand in the country. Other positives are expected in the form of legislative reforms such as Mines and Mineral (Regulation and Development) amendment, Coal Mines (Special 56

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Provisions) and Land Acquisition bills. Forest and environmental clearances are being given on priority and the pending litigations in mining sectors are also being reviewed for speedy settlements. With the govt initiating coal block allocations and related activities, there is some momentum in the mining sector. It is a good sign of increased activity in mining, however, a steady movement will be visible only by 2017. Though coal blocks have been allotted, there are many clearances and other procedures to go through before the actual mining work starts. Mining is an operation which takes a long gestation period and it is imperative to clear all the litigations and hurdles that are hindering operations. Before we get into the process of mining, there are many bottlenecks including govt-related procedures and getting various clearances that will take 3-4 years. These issues need to be addressed at the earliest. In the current scenario, many mines have been closed down for small reasons and nothing is moving ahead. In the last six months, three of the mines in which we were working, were closed due to similar reasons and around 200 workers are sitting idle. However, on a positive note, one of the major trends is the new land acquisition bill. If this is done properly, it will be easier for people to acquire land and start the actual mining process, which is not happening today. Growth in Infra will further fuel the demand for stones, cement, steel and a huge demand for coal, especially from power sector. This will boost the sales of mining equipment such as dump trucks, and large capacity excavators, wheeled loaders, dozers and motor graders. The country saw policy paralysis in

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the last few years, which hindered the growth in the Infra and mining sectors. Now consistent efforts are being made by the govt to overcome the issues in terms of regulatory reforms and adhering to a fiscal discipline. However, it takes time for the construction and mining activity to change at the ground level. Further, the growth is expected to be incremental and therefore, Off-Highway Research projects the overall construction and mining equipment market to grow at 13-15% every year until 2017, although the trends for individual equipment types may vary. Coal and metallurgical coke are key raw materials. The increase in clean energy cess on coal could also impact power CoS which depend on coal to produce energy. However, the impact would be limited. In the new allotted blocks, some of the bigger blocks have huge potential for coal mining. The two blocks of Machhakata and Chhendipada together has the potential to mine about 50MT of coal. Like all those big blocks, unless and until the state govts also involved with a unified intention of getting the clearances faster and create a conducive atmosphere to do the mining, the industry is not going to get the required results. Now Central govt is putting its concentrated effort in fastening mining operations of fresh blocks, but state govts also should put their efforts.

Demand surge Earthmoving equipment

The expected growth in mining is going to positively impact the demand surge for mining equipment and machinery. The increase in coal and mineral production would require a large number of equipment for opening new mines and enhancing production in existing mines along with replacement demand. ||www.constructionmirror.com/net||

Off-Highway Research is very bullish on the prospects for all types of mining equipment such as dump trucks, dozers, excavators, mobile compressors, motor graders and wheeled loaders. However, the actual demand would be driven by the pace at which the govt is able to facilitate project execution by bringing in regulatory, administrative and procedural reforms. There has been a surge in demand for mining equipment since last few months. Mining segment, particularly coal mining, is expected to drive high business activity in the coming months. We expect the blocks auctioned in the recent auctions to start activity within the next six months. The activity in iron ore is still very low and expectations are that this sector will also improve by year end. The demand for larger hydraulic excavators (> 40 T), wheel loaders, dump trucks and motor graders is expected to increase. The early indicators are already visible with contractors taking action to increase fleet size. The actual increase will be visible in the coming two quarters for sure. It is estimated above 40 T hydraulic excavators and suitably sized dump trucks to be key drivers of equipment demand.Outsourcing of mining work to specialist mining contractors is expected to be the dominant feature of the mining activity in 2015 and early 2016. Both PSU’s and private coal blocks are expected to follow the same route in the medium term. The cost competitiveness of specialist mining contractors is hard to beat in the near term. Quite hopeful about the revival of mining sector which will see a great upsurge in the next ten years. There is huge gap between the demand and supply of coal. To achieve the huge demand for coal mining companies have already started enhancing production and usage of new equipment will increase, especially among Tier 1 and Tier 2 contractors. With increased focus on captive mining, demand for large excavators and higher capacity wheel loaders for coal mining is sure to go up. For bigger capacity excavators, demand will come from mining, and quarry segments. For wheel loaders, we are getting ready for a vast range from 1.5 T-5 T and upwards. Higher capacity wheel loaders will be imported from China as we see opportunities coming from rack loading in surface mining.

DTH/TH drills

The recent and future auctioning of coal blocks is going to provide a great fillip to the demand for blast hole drills which will be needed for production when the mines start and this will also create a great pull for smaller DTH (Down The Hole) drills as well as TH (Top Hammer) drills. These will be needed for development of mines before they reach the production stage. Stateowned coal players like Singareni Collieries and Coal India subsidiaries like Central Coalfields have invested significantly in rotary blast hole drills (160-250 mm). These investments are predominantly to replace ageing fleet. More replacement investments are expected ||www.constructionmirror.com/net||

from Bharat Coking Coal, Eastern Coalfields, Western Coalfields, South Eastern Coalfields and Northern Coalfields. Private investment is also expected but this would depend on the speed of execution post auctions. The main bottleneck is passage of right to fair compensation and transparency in land acquisition, rehabilitation and resettlement (Amendment) Bill, 2015. Environment clearances also have to be fast tracked in order to speed up the process and get the operations off the ground.

Bulk handling systems

With opening of coal mines for private operators there is huge demand going to be created for bulk material handling industry in coal sector. Huge investments going take place in coal washery projects towards mineral beneficiation and new mines are going to open up as well. The most important development, according to Reddy, is govt announcement on five UMPP 4000 MW each which will create huge opportunity for crushing, screening and conveying equipment. Coal mine auctions that are just concluded will take time to generate demand for mining equipment. It´s difficult to project the growth at this moment. Having crossed the first hurdle of govt allotments, the new stake holders of the projects have to tie up with finance institutions and followed by the assessment of the ground realities and other necessary approvals to kick start the mining activities.

Underground mining

There is very good potential for underground mining, especially in coal as this minimises the environment issues. In the last five years high capacity room & pillar systems as well as long wall systems have demonstrated their capability in CIL subsidiaries, due to which CIL has earmarked several mines for design and development by UG method in the next five years. Tenders/orders for a few UG projects are underway. A few UG coal blocks will also be auctioned for bidding by private end users of cement, sponge iron etc. The e-auctions to private and PSU´s will open up very good demand for mining equipments from 2016. However, it depends on the participation and price level that the private sector CoS are willing to pay for the auctioned blocks. Success of auctioning also depends on the commitment govt is willing to give towards fast paced environment/forest clearances as well as support for land acquisition. Already witnessing concerted efforts from PSU´s viz CIL subsidiaries, SCCL, NLC,GMDC to increase coal and lignite production and the results will be seen from 2015 onwards. Major coal and mineral PSUs are definitely doing some capex investments on expansions. Till date, a large amount of coal mining has been open pit. In another 10-15 years, this will cease because there won´t be enough area to do open pit mining and you will have to go deep into the underground. Now people have started or starting

to go underground for mining. So, definitely there will be more underground mining in future which will require more capex with high-speed cutting systems like long wall continuous miner systems. With the coal block allocations, private players also will be active in new mining technologies. However, in metal mining, though there is lot of private players, many mining areas have stopped and things are not moving. There are lot of ambiguities among people as to how long will they be able to continue with that mine. Today, things are moving fine, but tomorrow, if some regulatory issues come up and things are held up, the whole efforts and the money invested will go in vein. Nobody will come up to invest in such a situation. Currently facing a similar situation in chromite mining.

Technology trends

In the case of mining equipment, the technology depends on the mining operations in the country. In India, opencast mining is more popular than underground mining. Hence, regarding the equipment required for opencast mining, like dumpers, dozers, shovels, draglines and excavators, the level of technology of the equipment manufactured is at par with international standards. As a global phenomenon, the pace of technological change had been especially rapid in the second half of the last century and the mechanization of unit operations has led to the development of long-wall technology, with the concept of mass production in the coal mining industry. This was also aimed at reducing the number of accidents, drudgery, monotony and dangers to workers engaged in underground mining operations. The development of mass production technology including long- wall equipment, continuous miners, ploughs and shearers, has been accompanied by a series of incremental and innovative developments in roof- supporting practices. In the prevailing situation, the mining sector is facing tremendous pressure to control production costs without compromising on the essence of environmentfriendly operations. This has necessitated a perceptible shift towards modern mining equipment. Technology will continue to play a vital role in maintaining desired productivity levels and in supporting the concerns of environment-friendly mining. We are already witnessing to technology changing the way the mines operate today; there are large surface coal & iron ore mines in India which use state-of-the-art equipment. The underground base metal mines have chalked-out programmes for modernization and are using high-end mining equipment and methods like drilling, rock bolting, mucking and hauling.

Wayahead

It’s good to note that Indian mining sector is going to have golden days ahead. With coal mine auctions, and Bills passed in parliament, (coal mines (Special Provisions) bill as well as the mines and minerals

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CONSTRUCTION MIR ROR

Industry Focus:

Mining Equipment

(Development and Regulation) Bill) has opened up the sector for Indian and foreign private firms for mining. This has generated positive hopes across the Indian mining industry. However, clarity need to be obtained on iron ore mining area and land acquisition bill. If these come through, I´m sure there is no looking back for at least next five years. The potential is very big and 2017-18 will be the year that will see the momentum in mining. Because everybody who is going to take these coal blocks has to go underground and they don´t have much to do in the open pit mining and we will have to go with the latest technology equipment and methodologies. India to overtake the US as the second-largest coal consumer after China. India to more than double coal output to 1.5 BT by 2020. Coal India to double production - from 500 mt to 1,000 mt by 2019-20. Coal Mines Special Provisions Bill and MMDR Bill to boost the mining sector. Coal India has been directed by Govt of India to double production of coal from the present level of 500 mt to 1,000 mt by 2019-20. Construction and mining equipment market to grow at 13-15% every year until 2017. Demand for hydraulic excavators (> 40T), wheel loaders, dump trucks and motor graders to increase. E-auctions to provide a great fillip to the demand for DTH /TH drills. Huge demand to be created for bulk material handling industry in coal sector. OEMs need to introduce rental option. The growth prospects for mining equipment are tremendous. There is good demand for excavators and wheel loaders from mining and quarrying; there is also very good demand for machines on rent. However, the market is flooded with brands and proper decision making for small mine owners like us is a challenge; also after sales service needs improvement. Manufacturers may earn more and get loyal customers if they introduce rental options too. High capacity room & pillar systems as well as long wall systems to pick up. With the development of mass production technology demand for long- wall equipment, continuous miners, ploughs and shearers to go up. This will be accompanied by a series of incremental and innovative developments in roof- supporting practices 58

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/ technologies. The underground base metal mines are using high-end mining equipment and methods.

Equipment makers upbeat on GST rate cut

The slashing of GST rate from 28-18% on mining and Construction equipment (CE) drew accolades from across the CE manufacturing segment, as the move will help support infra building in a big way across the country. It is a big relief for most of the industry but for 15% of the products, the rate continues to be 28% and the industry seeks reduction for those products as well. Pre-GST duty was under 20% and after the introduction of GST sales of equipment declined 35% in July. However, things returned to normal and the overall growth was not affected as the industry grew 19% in Q1 and 22% in Q2. And the industry will sustain this in the current fiscal as well. So far, only road construction has driven growth, but the Railways also started to offer some business opportunities. Leasing will become cheaper post-GST, as earlier they had excise duty and sales tax, and on top of that service tax, the total rate worked out to 30-32%. Now, leasing companies will charge only 18% GST and it will benefit them a lot. EXCON 2017, the 9th International Construction Equipment and Construction Technology Trade Fair to be held from December 12 to 16 in Bengaluru, this year‘s edition will be one of the largest fairs with a display area of 260,000 sqm. The organizers expect more than 1,000 exhibitors, including 300 companies from abroad. It is expected to attract about 50,000 visitors. Key objectives are to promote Make in India, skill development and component manufacturing.

Conclusion

India holds a fair advantage in cost of production and conversion costs in steel and alumina. Its strategic location enables convenient exports to develop as well as the fast-developing Asian markets. India currently produces around 95 minerals which mainly include 10 metallic, 23 non-metallic, 3 atomic, 4 fuel and 55 minor minerals. Rise in Infra development and automotive production are driving growth in the sector. Power and cement industries are also aiding growth in the metals and mining sector. Demand for iron and steel

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is set to continue, given the strong growth expectations for the residential and commercial building industry. Coal production stood at 453.10 MT in FY17. India has the 5th largest estimated coal reserves in the world, standing at 308.802 BT in FY16. In 2016, India contributed around 11% of the world’s production of coal. India ranks 4th in terms of iron ore production globally. In FY17, production was expected to reach 175.51 MT of iron ore. India has around 8% of world’s deposits of iron ore. India has become the 3rd largest steel producer in FY17 with the production of finished steel at 83.01 MT. India stood as the 3rd largest crude steel producer in 2016, while its production increased to 90 MT in FY16 as compared to 88 MT in FY15. India accounted for 5.89% of the total steel production in the year 2016. According to Ministry of Mines, India has the 7th largest bauxite reserves- around 2,908.85 MT in FY17. Aluminium production stood at 1.7 million metric tonnes in FY17. India has vast mineral potential with mining leases granted for longer durations of 20 to 30 years. There is significant scope for new mining capacities in iron ore, bauxite and coal and considerable opportunities for future discoveries of sub- surface deposits. The Ministry of Steel aims to increase the steel production capacity to 142.3 MT by the end of 2017 indicating new opportunities in the sector. In February 2017, the country’s coal ministry allowed private companies to engage into mining activities for commercial purposes. Infra projects continue to provide lucrative business opportunities for steel, zinc and aluminium producers. India’s Infra sector is expected to grow at a CAGR of 35.65% over the period FY 2008-25. In the Union Budget 2017-18, the GoI has allocated US$ 62.16 bn for Infra. Iron and steel make up a core component of the real estate sector. Demand for these metals is set to continue given strong growth expectations for the residential and commercial building industry. Total housing shortage in the country stood at about 18.78 million at the start of the Twelfth Five Year Plan. This provides a big investment opportunity for residential building construction in coming years. ||www.constructionmirror.com/net||

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CONSTRUCTION MIR ROR

Industry Coverage: Material Handling Equipment

Material Handling Equipment Industry: A Brief Review

CONSTRUCTION MIR ROR

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Introduction

MHE (MHE) refers to a wide range of products that aid the transportation, storage of materials. MHE provides a cost-effective efficient, accurate method for easy, swift movement of goods across a company/org. MHEâ&#x20AC;&#x2122;s are used across industries such as Automotive, Machinery, Aerospace, Shipbuilding, Infrastructure, Energy, FMCG, Refinery, Retail, and Electric and Electronics. Adoption of MHE helped CoS in India for higher customer satisfaction and increase in revenue. (PCC) Pick-carry cranes which are used in operations such as loading, unloading, and shifting materials accounts for around 27% of MHE. The demand of construction and material equip. is correlated with the growth of Infra sector. India still needs to develop it in a big way. Wide scope exists for the growth of the Infra sector viz., Roads, Steel, Coal, Cement, Power etc. Continuing investments in these sectors will support demand of these products. Also, with increased need of mechanisation and shrinking timelines of Infras projects, the demand for equip.s should see a definitive upward trend. The demand is largely from F&B, retail and automobile sectors. Palletisation, containerisation are also expected to increase demand. Although, it may be worthwhile to note that the global recession and slowdown in India as well as the rise in input prices may act as major threat to this sector.

As urbanization and industrialization grow in any country, sectors like Infra, construction, power distribution, etc. act as fundamental forces which translates, on the ground, into expansion of road and tail networks, bridges, real estate development, industrial plants, power line projects, etc. For businesses that are involved in developing these projects, it means they have to transport and handle a variety of specialized items in ever increasing noâ&#x20AC;&#x2122;s with higher productivity and safety. These CoS need solutions to handle items like pre-fab concrete slabs & structures, marble & granite slabs, lighting poles, concrete pipes, iron pipes, cable reels, heavy steel sections and re-bars, PEB-steel structures, construction materials like bricks, rocks, sand and cement, power generator sets and small machinery, to name only a few. While transport vehicles for such items are easily available, the odd dimensions of these items requires specialized handling equip. And, CoS that work with such items need to invest in this specialized handling equip. at the factory/ warehouse where transport vehicles are loaded as well as at the site of use. As business expands and project deadlines become tighter, manual or primitive, mechanized handling techniques are neither a safe nor a productive

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CONSTRUCTION MIR ROR

Industry Coverage: Material Handling Equipment

option. In many countries across the world, the most common solution to address these issues is the truck mounted crane. Designed to handle a wide variety of shapes, sizes and weight, these cranes are mounted on the carrier vehicle to eliminate the need to MHE at both ends of the transport chain.

Global MHE market

In 2014, the global MHE market was valued at US$118.35 bn, and it is expected to grow at a CAGR of 6.08% till 2019 to reach a market value of US$158.98 bn. In terms of volume, the global MHE market witnessed a demand of 1,087,190 units in 2014. The market growth is expected to be driven by segments such as AMHE and industrial trucks. North America is expected to be the fastest growing market in terms of volume followed by Asia. The fast-expanding economies of the Middle East are among the key growth engines driving global demand for materials handling equip. The region, along with Latin America and Asia, are the fastest growing markets for this sector, which is expected to be worth a whopping $100 billion worldwide by 2018. There are other estimates that this industry is expected to grow annually by 4.5%. By any analysis it is clear, that this is one of the biggest contributors to global supply chain. After world financial crisis in 2010, China (accounts for over a quarter of global forklift sales) has become the world’s largest market and production base for forklifts and MHE for the first time.

CONSTRUCTION MIR ROR

Global MHE market size (US$ Billion) 6.08% CA

Geographical Segmentation of Global MHE market by volume, 2014

159.0 118.4

9.0% 20.2% 30.8%

2014

Asia

40.0% North America

2019E

Indian MHE market

In India, several CoS have started to adopt MHE for higher customer satisfaction and increase in revenues. PCC cranes which are used in operations such as loading, unloading, shifting of materials accounted for around 27%. Others category include equip. such as conveyors, gantry cranes, electronic overhead travel cranes and cantilever gantry cranes. It took a long time for India to come in line with advanced countries in terms of use & manufacturing of MHE. The first fork-lift was manufactured by Godrej in 1961. Till that time, most of the MHE used in India were imported diesel folk-lifts or counter balanced trucks. It is only in last 20-25 years that Indian MHE industry started taking modern shape. Many big industries and small entrepreneurs took up the task of developing tech or transfer it through technical collaboration/ JV with world’s leading MHE manufacturing CoS. Tech dev. mainly happened in the lower end MHE sector such as pallet trucks, stackers, BOPT’s, forklifts. Looking at the potential of the market, CoS started manufacturing middle end and higher end MHE’s. Some have even started exporting to other countries. As far as use

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of MHE is concerned, India is yet to reach to a high end level. Domestic handling needs are still satisfied by low-middle end equip’s, logical reason being affordability of huge capital req. in these high end equip’s; availability of labour, manpower at cheaper rates for these handling needs; non-availability of skills required to operate, maintain high end equip’s. MHE Market in India by Product segmentation, 2011

27.0%

37.0%

Picki and Carry cranes Forklifts Slew Cranes

12.0% 5.0%

8.0% 11.0%

Crawler Cranes Tower Cranes

Growth Drivers

(Investment in Infra) GoI is targeting a US$376.53 bn invest. in Infra. sector over a period of 2016-19, which include US$120.49 bn for developing 27 industrial clusters and US$75.30 bn for road, railway and port connectivity projects. (KPI) The market dynamics are changing and clients are giving preferences to changing KPIs related to warehousing, manufacturing, distribution. Hence more customized solutions are required in these areas which can result in gain to MHE industry. (Increasing housing, construction market) Booming construction is becoming more oriented towards mechanisation to reduce project ||www.constructionmirror.com/net||

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CONSTRUCTION MIR ROR

Industry Coverage: Material Handling Equipment

time, control costs which leads to higher demand for advanced MHE. (Increasing automation of industrial operations) Entire lifecycle of products, from manufacturing to distribution, consumption, disposal is getting automated. This is driving end-users to adopt advanced MHE across all their workflow. (Increased FDI) Total FDI in FY’16 reached to US$42 bn, which has boosted majorly manufacturing industry. Setting up of plants by international CoS has paved the way for several small and medium scale CoS as an effective supplier base. This would lead in growth of MHE sector in India. (Renting / Leasing Model) encourages the SMEs to use MHE without spending much on capital expenditure.

Categories of MHE

Storage and Handling Equip.s - mainly non-automated equip.s used in warehouses for storage and handling of different types of product categories. Include equip.s which have globally accepted standards and are generally available as stock items (pallet trucks, stackersetc). MHE encompasses a diverse range of tools, vehicles, storage units, appliances, accessories involved in transporting, storing, controlling, enumerating and protecting products at any stage of manufacturing, distribution, consumption, disposal. Main categories of MHE include: Trolleys: BatteryOperated, hand trolley, ladder trolley etc. Lifting equip.s: to move cargo in heights without use of any storage and handling equip., generally fixed at a point (lifts, scissor lifts, lift tables). On Rail Transfer Carts: moves on rails and handles very heavy cargo, widely used in metal and engineering industries. Conveyors: are of many types such as uni-built, power and free, chain, towline, roller etc. Cranes: Small jib-cranes up to very heavy industrial EDT cranes, tower cranes, and goliath crane etc. belong to this crane category where the equip. is primarily stationed at one place or has limited movement accessibility. Storage and Handling Equip.: Storage equip. is usually limited to non-automated examples, which are grouped in with engineered systems. Storage equip. is used to hold or buffer materials during downtimes, or times when they are not being transported. These periods could refer to temporary pauses during long-term transportation or long-term storage designed to allow the buildup of stock. The majority of storage equip. refers to pallets, shelves or racks onto which materials may be stacked in an orderly manner to await transportation/ consumption. Many CoS have investigated increased efficiency possibilities in storage equip. by designing proprietary packaging that allows materials/ products of a certain type to conserve space 64

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while in inventory (Racks, such as pallet racks, drivethrough or drive-in racks, push-back racks, and sliding racks; Stacking frames; Shelves, bins and drawers; Mezzanines).

Engineered Systems: mainly custom engineered automated systems to suit specific operational needs. Include conveyors, AS-RS (Automated Storage and Retrieval System), AGV (Automated Guided Vehicle) and are mostly integrated to ERP system. Covers a variety of units that work cohesively to enable storage and transportation. They are often automated. A good eg of an engineered system is an AS-RS, a large automated organizational structure involving racks, aisles and shelves accessible by a shuttle-system of retrieval. The shuttle-system is a mechanized cherry picker that can be used by a worker or can perform fully automated functions to quickly locate a storage item’s location and quickly retrieve it for other uses. Other types of engineered systems include: Conveyor systems; Robotic delivery systems; AGV. Industrial Trucks: refer to the different kinds of transportation items and vehicles used to move materials and products in materials handling. Versatile, operator driven, motorizedwarehouse vehicles powered manuall» diesel, propane or electricity. Forklift is the most common industrial truck. These transportation devices can include small hand-operated trucks, pallet-jacks, and various kinds of forklifts. These trucks have a variety of characteristics to make them suitable for different operations. Some trucks have forks, as in a forklift, or a flat surface with which to lift items, while some trucks require a separate piece of equip. for loading. Trucks can also be manual or powered lift and operation can be walk or ride, requiring a user to manually push them or to ride along on the truck. A stack truck can be used to stack items, while a non-stack truck is typically used for transportation and not for loading. There are many types of industrial trucks: Hand trucks; Pallet jacks; Pallet trucks; Walkie stackers; Platform trucks; Order picker; Sideloader; Many types of AGV. Bulk MHE: Bulk material handling refers to the storing, transportation and control of materials in loose bulk form. These materials can include food, liquid, or minerals, among others. Generally, these pieces of equip. deal with the items in loose form, such as conveyor belts or elevators designed to move large quantities of material, or in packaged form, through the use of drums and hoppers. Conveyor belts; Stackers; Reclaimers; Bucket elevators; Grain elevators; Hoppers; Silos

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Sr.No.

Equipment Category

Reach Height

Load Capacity

Technology Standard

Price Tag

Effciency

Storage & Handling Equipments (SH)

Very Low To Low

Medium

Basic

Low

Trolleys (TR)

Very Low

Low

Basic

Low

Engineered Systems (ES)

Medium to High

Advanced based

Very high

Industrial Trucks (IT)

Low to medium

Medium

Semi-advanced

Medium

Lifting Equipments (LE)

Low to Medium

Medium

Semi-advanced

Medium to High

High

Bulk Material Handlling (M)

Very Low to Low

High

Semi-advanced

Medium to High

High

On Rail Transfer carts (ORTC)

Nil

Very High

Basic

Low

High

Conveyors (c)

Medium to High

Low to Medium

Advanced

Medium to

High

Cranes (CR)

Medium to High

Basic

Medium

Medium to High

WMS

Comparison between various MHE types on the basis of their load capacity, lift capacity, speed of operation, sophistication. Categorization done is based on factors such as price, use of technology, extent of automation & sophistication and is applicable for the purpose of this article only.

Use of these new tech’s help in minimizing human fatigue, improve safety of operators & products. MHE are now able to handle higher loads and are able to reach to more heights. New ergonomic controls allow safe handling at these great heights. There are other attachments such as barcode scanners, operator’s camera which add to safety features which include over-load triggers, height indicators, speed controls, fuel level indicators, password protected start-up, pedal controlled safety systems etc. These features make the MHE handling equally safer for operators as well as products. Fuel cells though invented century and half ago, are being successfully used in MHE ody in recent past. A fuel cell is a device that converts chemical energy from a fuel into electricity through a chemical reaction with oxygen. Hydrogen is the most common fuel used. Toyota and Crown have started manufacturing MHE using fuel cell technology which is greener and efficient as compared to existing fuels. Renting of MHE is a much evolved service in advanced countries. It is a good option for someone who does not want to invest in the high capital costs. Various types and brands of MHE are available on rent with many rent options. But getting a required capacity and type of MHE can be a bit difficult at times. Resale of MHE is also an equally developed option where one can buy MHE of various types and features at discounted prices.

Regulation

OSHA of USA has specified various standards for use and handlingvarioustypesof materialhandling equip.s, indudes standards for safety requirements, handling of equip.s; load testing, other tests such as over-turning, breaking, lifting heights, types of hazards in handing, etc. Apart from these, there are emission regulation standards for forklift trucks, standards for ergonomics published by various organizations. In India, there is no such mention of any specific standards available though there is a need to have one unified standard that will govern the MHE industry in a broader form. In absence of such standard, we have no option but to follow available standards such as OSHA etc.

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Gap analysis between advanced countries and India

Types of MHE use - High end as against medium to low end. There are generally no standby arrangements considered while deciding the numbers. Due to this, CoS operations face many situations where the MHE is not in operation and hence have to resort to non-standard means for handling materials. As warehouses are more flat, they actually do not require any high end high reaching equip.s. Many of CoS operations are manual and not hooked to any warehouse management system. Mainly resorting to break-down maintenance rather than well planned preventive maintenance schedules. With this attitude, Indian CoS do not venture in going for high end equip.s. Generally high end equip.s warrant high quality Infra, mainly flooring and power. Though power may not be a critical factor, creating good quality floor is an area of concern. For efficient and effective use of the high end equip.s, a super flat and smooth floor is required. Now in past few years, tech’s are getting available in India to construct such super-flat’and super smooth floors. Most CoS operations have not been customer focused. With this, CoS KPI’S were never tune to operations which finally satisfy customers. This leads to attending to other factors which did not require use of efficient material handing systems. Increasing penetration of advanced tech’s, such as RFID, IoT, voice picking, are expected to drive the material handling equip market over the forecast timeframe. The evolution in the technology to assist smooth warehouse & logistics operations in meeting customer demand is rapidly changing the business environment. Growing automation capabilities in the manufacturing space will provide a fillip to the MHE market size. Automation aids in reducing costs and delivering high quality products. It eliminates the need for manpower to check-ins, sort goods, or to move bins and totes

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containing materials. These automated systems scale up the operational needs and drive the business results by reducing errors, increasing pick rates, surging throughput and decreasing labor costs. For instance, AGVs are an automation solution for moving parts to and from the manufacturing facilities or conveying pallets for put-away in distribution centers. Logistics robotics market benefits from optimized workflow procedures, high productivity levels and reduction of labor and operating costs. Automated storage and retrieval systems (AS/RS) are anticipated to witness substantial growth. These systems integrate automated software and hardware for precise replenishment and picking. In addition, they frequently position and deliver the essential inventory to a conveyor structure, manual outfeed, or an ergonomic operator station. This leads to a decrease in floor space, labor, inventory levels, resulting in rising productivity in contrast to manual storage approaches. Typical storage applications comprise tooling, order picking, consolidation, and buffering in cold, ambient, freezer, or clean-room environments. Robotics will further witness a sig. adoption rate, as it aids in enhancing productivity of the manufacturing facilities and improving customer satisfaction by delivering high quality products in an appropriate manner. They perform multi-tasks, thereby, streamlining the whole process. E-commerce applications are anticipated to witness attractive growth opportunities, due to rising demand of efficient, responsive, reliable MHE. Customers expect their orders accurately, quickly, undamaged. Material handling processes aids in enabling supreme performance and high uptime for the peak-season productivity. They help in moving more pallets per shift, and reduce product damage with careful handling, with lift truck and equip. rental options. Also, Modern omni-channel distribution facilities can handle all fulfillment, specialty labeling, returns processing, in-store pick-up, ship-to-consumer,

ship-to-store and product customization will propel the MHE market size. 3PL sector has witnessed rising demand from service providers for enhancing performance, amplifying efficiency, keeping their end users satisfied with on-time deliveries of a wide range of products and packaging. India MHE market share is anticipated to grow sig. from 2016-24 due to an attractive economic landscape, significant demand for goods movement. Increase in the manufacturing activities in the region will also augment sales. Need for safe working environments in industrial facilities, developments in areas such as wireless technologies, robotics, and flexible electronics will fuel the MHE market size. Also, expansion of various international firms in the region will drive demand. High costs associated with the installation, maintenance will inhibit the industry demand over 2016-24. Also any kind of stoppage/failure in any portion of the machinery leads to increased interruption of production system. Participants accounting for MHE market share include Kion Group AG, Daifuku Co. Ltd, Bastian Solutions LLC, Dematic GmbH, etc. CoS are focusing on expanding their services and acquisitions to gain prominence. For instance, in Feb’17, Toyota Industries Corporation announced that it acquired Bastian Solutions LLC. Acquisition signifies the CoS full-fledged entry into the U.S. Increase in initiatives for automated safety & security, developing manufacturing facilities and growth in expansion of warehouses is driving the MHE market growth globally. Several manufacturers are entering frequent M&A’s and expanding their global reach. High cost of maintenance associated with machinery will challenge industry growth. Tech’s such as robotics, AS/RS are gaining prominence due to quantifiable advantages, such as process streamlining, high productivity levels. Voice picking enhances accuracy in the warehousing operation, hence positively influencing the industry growth.

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CONSTRUCTION MIR ROR

Special Focus: Piling Equipment

Construction Equipment: Piling, Compactors, Rental, Financing

iling Equipment

The foundation equipment manufacturers are exploring new markets and potential application areas to tide over falling sales. Slowdown in infra projects has curtailed demand of foundation equipment in the country. The demand went down at such a time when foundation and piling have started making gradual inroads in the construction sector. The recent adaptability of the equipment, provides it with a low market base as compared to developed construction markets. Falling sales graph has deterred rig producing companies to expand the application concept of the equipment and thereby in promotion of newer sales. Slowdown in demand has been quite sharp from core infrastructure projects, pertaining to bridges, flyovers or road construction. However, demand from metro projects has fared better where manufacturers are looking for potential demand from greenfield metro projects mainly from Bangalore Chennai, Jaipur and third phase of Delhi metro. Yet the optimism is circumscribed with the tardy expansion of Kolkata metroâ&#x20AC;&#x2122;s second phase and Mumbai metro. Both the projects have long route extensions and involve critical piling works to be done. This would require good numbers of equipment to be deployed. There lies a good demand for foundation and piling rigs precisely from metro rail projects. Elevated roads, power plants, ports and jetties construction are also demand areas. Based on the given potential, it is expected that the market to grow at the rate of 20%. Realising the growth will require putting the ongoing projects on fast track and awarding new projects. Requirement is still active and there are new application verticals to be explored. Further demand would pick up, once the pending projects are released, incidentally which is not happening at this moment. Slowdown in awarding of tenders for new projects and lingering expansion of ongoing jobs has been a reason for negative demand for piling rigs. Niche application of the product, high owning and operating costs it commands, owing to its working limitations in the entire construction phase have been an added, much vital reason, which has brought down sales of piling rigs in India. This can be examined in the present context when bank interest rates are higher and contractors are having restricted cash flow resulting in an extended loan repayment for new equipment. The majority of foundation equipment manufacturers agreed that the operational viability of equipment entirely depends on the volume of piling jobs contractors have in their order books. The modest percolation of the equipment in the Indian construction sector is the reason that manufacturers are unable to drive mass sales. Presence of mass market, producers once again agree, would have to an extent allowed neutralize falling sales. Manufacturers inform, tenders for most of the construction projects in India are based on pricing. This is both for bankable projects

Special Focus: Piling Equipment having requisite financial exposure through viability gap funding and as well as for PPP projects. Usage of piling technology becomes restrictive in all the cases as cost per metre of piling can range anywhere between Rs 10,000-50,000 or above affecting the margins of the contractors. This bars the usage of the equipment to a big extent. Gradual acceptance of piling equipment/ technologies by Indian construction sector has also been due to the dearth of specialized contractors capable of undertaking solely piling contracts. Much in contrast of Europe or US, piling is not a separate contract in India. It is an integral part of the whole construction project. Besides, the piling codes use in India dates back to 1970’s. There is lack of adequate guidelines by BIS for usage of proper and advanced methodology for customized and complex construction requirements. Resultantly, the codes fall short in highlighting the usage of modern piling techniques in India. All these hinder marketing the equipment in large proportions and are also keeping modern developments in this field out of reach. However, despite its modest presence, the equipment have been well acclaimed within the construction fraternity based on assorted utility it has been delivering in executing both core and industrial construction projects. Piling and foundation equipment have made their mark in the country through its deployment in mega construction projects involving Cochin International Container Transshipment Terminal, brown field expansion of Tata Steel and Delhi Metro Railway projects. Given the wide scope of application, the Indian construction sector offers for piling, manufacturers are now looking forward to promote new technologies so as to take on falling sales. There is large scale new requirement from Indian construction sector for deeper piles of 50-60 metres. At least 20% of the infra projects in India need deeper piles. Projects such as off shore piling for jetty construction, highrise buildings would see increased usage of deeper piles.

Compactor

The current prediction for market growth in India is expected to be around 20% per annum, provided the infrastructure investments keep floating and the economy keeps growing as expected, Otto Ueberbach, Vice President, Bomag Compaction Equipment. Indian road building activity has already picked up in the current fiscal year and even for the coming years a good budget outlay is also envisaged. This would mean that the immediate requirements and market for compactor is foreseen in the roads segment. The policy reforms with respect to private participation expected in the road and railway sector is also going to boost the demand soon. Unfortunately, Indian compaction regulations are still describing the size of machines to be used and the max heights of layers to be put down. This very much does not leave room for bigger 68

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machines which would be more efficient to be used. We hope that the related regulations will open up in the future to describe the final compaction results to be achieved only. Leaving it up to the contractors how to achieve the results. This would open up the door for more efficient machinery to be used. At the same time, I would help to reduce the overall construction cost. For example: if the thickness of layers can be increased, it not only will reduce time and cost for spreading out the layers, but also will shorten the compaction time. Reducing cost and time for each project allows to make more roads with the same amount of budgets available. India, is still using relatively low performance compaction equipment, as specifications are not asking for more or even allowing to use heavier, more powerful equipment. As such, all machines are very equal in regard to their main specs like weight or size. However, contractors demanding machines with high reliability, low service demands and low running costs to make their business profitable. These demands fit to all kind of compactors, soil and asphalt. Beside these basic requirements, ease of operation is a point of increasing interest. Specifically of asphalt compactors, it is important that machines can change travel directions smooth and easy. Not leaving any marks on the asphalt. While tandem rollers already being made with hydrostatic drive systems since decades, rubber tired rollers were still available in both systems, mechanical and hydrostatic. The hydrostatic drive systems like on Bomag’s BW 27RH is leading in this regard. In other countries of Asia, trends are already ahead of those in India. We see more demands for roller integrated compaction measurement systems like Bomag´s BTM and BCM. And even automatic vibration systems that adjust themselves to pre-set compaction requirements. Besides, telematics systems starting to be used more often. Allowing to monitor the machines position and condition for an easy fleet management. It will take some time before Indian contractors will start using such systems. With increasing competition in the contractor business, one has to be ahead of competition to be successful in the long run. NHAI and MORTH specify only 10-11 tonne compactors as the maximum layer thickness compacted in the highway projects is limited to 250 mm. However, this should be changed for speeding up the projects and safe construction cost, by deploying higher tonnage compactors and higher layer thickness. Many stretches in Eastern and some parts of Western India requires soil stabilisation to improve the soil bearing capacities. These stretched could require bigger compactors to compact the 400 mm or 500 mm layer of stabilised soil. Here, heavy soil compactors of minimum 19 to should be used, but even up to 26 to can be applied effectively

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for such thick stabilised layers - if regulations will allow to do so. The Indian compaction machinery market has been stagnant over the last three years at around 3,000 units in total. With a split of about 50-60% to single drum rollers that are used for soil compaction and the remaining 50-40% of machines being tandem rollers for asphalt applications. The current prediction for market growth in India is expected to be around 20% per annum, provided the infrastructure investments keep floating and the economy keeps growing as expected.

Equipment Rental Market

Infrastructure development is one of the key areas for economic development. Hence, it always remains as the focus area for any government. It heavily contributes to the GDP and helps create growth opportunities for industries like automobile, manufacturing, export, steel, skill development and many more. In India construction is the second largest sector after agriculture which contributes 7-8% towards the national GDP. Infrastructure industry is one of the largest employment generators, currently employing about 33 mn people. It is one of main reasons why the central government is planning to invest $1 tn in infrastructure development during 12th FYP. Construction project cannot function with just planning: it needs limbs the complete project. Construction equipment is an integral for every Infrastructure project and that is the main reason for which the industry which grows twice as fast. The construction equipment market is expected to grow by 12% CAGR to $4 billion by 2017. Construction equipment is divided into four major groups; Earthmoving Equipment - Earth moving equipment the equipment includes backhoe loaders, wheel loaders, steer loaders and tippers. All these equipment holds large share in this segment and accounts up to about 70%. Material Handling Equipment - Materials handling comprises of tower cranes, bulk material handling, mobile & hydra cranes. Road building equipment - Road building equipment includes scrappers, excavators and bulldozers. Concrete Equipment - The concrete equipment includes transit mixer, batching plant, concrete pumps and aggregate crushers. About $2.3 bn construction equipment is sold in India, nearly 7% of equipment is sold to rental companies. Most of the rental companies which dominate the market are regional players. The rental business is quite organized and is expected to grow year on year in days to come in India. Few interesting developments are now big contractors have started setting up their own equipment rental distribution. Surplus equipment is adding positive indices in growth

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of rental business. Earlier equipment on rent were used only for intricate projects like wind energy, thermal power, port construction mega industrial projects etc. Now even for smaller projects heavy lifting cranes are required on rent, basic equipment like backhoe, cranes pick-n-carry are also required on rent. There has been an upward trend in leasing out concrete equipment, excavator, tower cranes and other construction equipment. Contractors who hire equipment from rental companies are always in profit as they do not invest in purchasing new asset. The requirement of the equipment for short or long duration is without any capital expenditure which in few cases it can rise up to $3M. The maintenance of Fleet and stocking of spares is also saved by going to rental companies. The complete expenditure on hiring of any equipment for any duration is treated as revenue expenditure of 100% and is allowed by the Income tax department as service tax amount paid to be adjusted.

Loans are mainly provided by banks and non-banking financial companies. Similar to vehicle loans, a margin is paid up front, and monthly payments are made over three to five years. Leases are gaining popularity because of tax benefits. There are two options: In a financial lease, the asset is transferred to the lessee at the end of the leasing period. In an operating lease, the asset is returned to the lessor. Only 3% of leases are operating leases because financial firms often can’t maintain the equipment. Suppliers’ and buyers’ credit is often used for imported equipment because of its high cost, mostly financed by Indian and overseas banks. A rent-to-own transaction allows users to pay a rental fee (a%age of the machine’s price) at

periodic intervals with the option to buy at the end of a specified period. End-to-end solution providers are financing firms that help with acquiring, training for, maintaining, and buying back used equipment. Challenges of Equipment Financing: Lack of easy access. Most OEMs lack in-house financing arms and engage in short-term tie-ups with banks or NBFCs. First-time users, although forming about 30% of the customer base, face high-margin money requirements of 20 to 25%, compared with just 5 to 10% for repeat customers, which dampens equipment demand. Also, the payback period for firsttime users is shorter, resulting in the payback amount being higher than

Equipment Financing

As with any product that requires a large one-time capital expense, financing is a good way for the construction equipment industry to spark demand and acquire new customers. In 2011, India’s ECE financing industry was valued at Rs 23,000 crores. Financing accounts for about 80% of the equipment purchased. For imported machinery, it’s even higher, with 90% of equipment purchased being financed. Over the next few years, the ECE financing industry is expected to grow by a compound annual growth rate of about 22% (see figure 17). Most financing is through loans, with leasing as a distant second option (see sidebar: Financing Models in India). About 80% of ECE users that opt to finance are micro, small, and medium-sized enterprises. With ticket sizes varying from Rs 20 lakh for a backhoe loader purchased by an individual user to Rs 20 crores for a construction firm’s bulk equipment purchase, the variety of players offering equipment financing has grown. The competitive landscape now consists of banks such as HDFC Bank and Kotak Mahindra Group, NBFCs such as Srei Infrastructure Finance and Magma Fincorp, leasing companies such as ORYX India and Srei BNP Paribas, external commercial lenders, and cross-border leasing firms. NBFCs handle 75 to 80% of ECE financing. Large players are expected to continue to dominate, thanks to the growing ticket size of construction-firm purchases and the continued dependence on imports, which require large banks to settle the transaction.

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CONSTRUCTION MIR ROR

Special Focus: Piling Equipment

the depreciation. Challenges in collection. Most finance users are micro, small, and medium-sized enterprises that depend on third-party payments, which can lead to collection delays and defaults. As a result, the average number of days of sale outstanding can reach 150 for organized rental players. Further, most of the financing business is handled by NBFCs, which face significant recovery challenges because of a lack of adequate regulatory support. For example, NBFCs do not get tax benefits on provisions for bad loans; banks and financial institutions do. In addition, NBFCs are not under the purview of the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, which empowers banks, financial institutions, and housing finance companies to move against defaulters. NBFCs also lack access to debt recovery tribunals for collecting dues. Unfavorable regulations. Indirect taxation on construction equipment in India is 28%, higher than France and Germany’s 20% and Indonesia’s 12 to 17%, according to a Confederation of Indian Industry (CII) report. An array of entry taxes and lifetime Regional Transport Office (RTO) taxes imposed by various states make moving construction equipment between states unviable. In addition, the 15% depreciation rate for construction equipment assets (compared with 30% for commercial vehicles) is too low compared to the falling asset life as a result of rapid technological progress and equipment obsolescence. Moreover, for interest paid to NBFCs on loans for equipment financing, tax is deducted at the source, which is not the case with banks. Also, external commercial borrowing as a source of funds is available only when purchasing imported equipment; it is not available for domestic equipment. Low rental penetration. There are a limited number of organized players with large rental fleets because 70

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players lack the capital to expand. Organized players also face huge pricing competition from the unorganized segment, where players are involved in off-the-book cash transactions and can therefore offer much lower rates. Used equipment and the secondary sales market are also highly underdeveloped in India because of an absence of established trading platforms and a lack of buyback schemes from OEMs. Existing sparse secondary trades are based on non-standardized transaction prices. Another factor inhibiting rental usage is tender prerequisites, which often require the contractor to demonstrate equipment ownership. Above all, ownership still remains the preferred option for Indian users. Analysis of a typical Indian customer reveals that he is extremely price and value focused, because majority of these customers are small time entrepreneurs scattered across the length and breadth of the country and provide services like construction, transportation, etc. in the infrastructure sector. Keeping this in mind, I feel leasing and rentals can be extremely beneficial to suit their needs. After all, leasing has proved to be the most potent and cost-effective form of capital creation worldwide. Also, keeping in mind the fast pace of technological progress and the shrinking utility life of machines (upgraded version of each machine makes the last one almost redundant) I feel equipment renting has huge potential, especially if a customer has to use any machine for a limited period. Used equipment also have tremendous potential. But the financing penetration for used machines is very small. There exists no proper trading platform for used equipment. Self-depreciating assets like ICE need to be acquired upon debt/lease and have to amortized over one or more projects depending upon the nature of equipment and the duration/cost of projects. Depending on the order book position of

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the contractor, he has to take a call on whether he would like to own the machine or lease it or even take it on rent for a specified duration. I feel going forward these trends will emerge and become more prominent as the users become more aware of the attendant benefits. Once a trading platform for used machines is in place, this sector will also become more organized. In infrastructure projects, the big developers usually sub-contract part of their work to the small and medium scale entrepreneurs who constitute the bottom of the infrastructure pyramid. However, these players do not enjoy access to institutional financing (like banks). Thus, it is the NBFCs which cater to the credit needs of such players. The NBFCs have grassroots knowledge of the credit needs of these players and have a fair idea of their capability. NBFCs take a call on extending credit to these players based on the track record of these players, their order books, cash flow, etc. Credit intermediation has been the most preferred route for credit expansion and NBFCs have played this role for the past 30 odd years to near perfection. And NBFCs’ decision-making process is also much faster vis-à-vis banks. Thus, NBFCs have a big role to play in rectifying the supply-demand imbalance at the bottom of the pyramid. RBI is also playing a constructive role by re-classifying the various categories of NBFCs so that all NBFCs do not operate under a blanket regulatory framework. This is the right approach by RBI to acknowledge the contribution of NBFCs like the Asset Finance Companies (AFCs) and the Infrastructure Finance Companies (IFCs) to the process of nation-building. However, NBFCs like AFCs and IFCs need a level playing field vis-à-vis banks in order to perform their duties better. The total market size for construction and mining equipment is estimated at about Rs.30,000 cr. Nearly 50% of the sector comprises BH Loaders & Excavators. The industry is expected to grow at 10-15% per year. ||www.constructionmirror.com/net||

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|| DECEMBER 2017 ||

CONSTRUCTION MIR ROR

Special Feature: EPC Sector

Brief Review on

Engineering, Procurement and Construction Sector trends

s far as India is concerned an evaluation of just gone by 11th plan depicts that it has been an inflection point in “Infra Investments”, with contributions of up to 9% from India’s GDP. The 12th plan is also replicating a similar trend with an envisaged investment of approximately USD 1 trillion, which means contributions of up to 10% of India’s GDP. The sectors which are expected to have massive investments include oil & gas sector, power sector, metals & mining sector and telecom sector Thus, this mammoth and fast build out of industrial and plant Infra demonstrates the need of a robust and growing engineering, procurement and construction services industry for spreading and management of risks, efficiency and productivity in engineering and construction and supplementing the management bandwidth of project developers. India has seen EPC industry translating from a relatively mediocre industry to a behemoth. This turnaround was basis the fast paced growth which the Indian economy witnessed in last decade to fifteen years of time. Today, the EPC industry of the country has become synonymous to multi million dollars complex projects which are being executed by both the private and govt market participants.

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However, a decade ago Indian EPC industry was categorized by small projects which were not that complex in nature and plagued by multitude small packages and subcontracts. But, in the current scenario it has squared with huge and unique opportunity due to galloping Indian economy and the planned investments in public and industrial Infra. This scenario has fuelled India to have recognition on global front. The EPC sector has witnessed consistent changes over past decade and has seen a smoothtransition in terms of increasing project size, scale and market maturity.

Introduction

Infra is a key growth driver for any economy. India still has a lot of ground to cover in terms of not just upgrading, but also setting up Infra. The GoI recognises the importance of Infra, and this is reected in the fact that the Union Budget 2016-17 had allocated an all-time high budgetary allocation of Rs. 2,210 bn towards Infra, with the aim of reviving investments in the sector with the participation of private players. In fact, the Ministry of Road Transport & Highways, and Shipping made an announcement with respect to the GoI’s target to invest Rs. 25 trillion in Infra over a period of three years,

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which includes Rs. 8 trillion for developing 27 industrial clusters and another Rs. 5 trillion for road, railway and port connectivity projects. The govt and its agencies have multiple plans for Infra development in the pipeline. Some of the noteworthy plans include the earmarking of Rs. 500 bn for the development of 100 smart cities across India, plans to invest USD 137 bn in the rail network over the next ve years, plans o develop cityside Infra (hotels, car parks, etc.) at 13 regional airports with help from private players, etc. As per unofficial estimates, India would need an investment of around Rs. 67 trillion over the next few years for the development of new roads, ports and airports. On a positive note, India is attracting signicant interest from international investors. As per the DIPP, the value of FDI inows in construction development between April 2000 and March 2016 stood at USD 24.2 bn. ADB has signed huge loan deals for various Infra projects. Many countries in Europe and Asia have announced commitments for various projects. Likewise, international Hedge Funds and Private Equity houses have stepped in with huge investment plans.

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ndia’s Global Competitiveness rank Improved...

The World Economic Forum’s (WEF) Global Competitiveness Report 2016-17 shows that India’s global competitiveness ranking has improved signicantly in 2016-17. India’s rank jumped 16 places higher vis-àvis 2015-16, from 55th place to 39th place in 2016-17. The biggest contributors to this improvement are Infra, the macroeconomic environment, education and performance of institutions. The positive sentiments of business communities and investors towards the govt, which has positioned itself as a pro-business, pro-development, and anti-corruption govt is also a major factor. In terms of Infra, India’s ranking improved dramatically in 2016-17 to 68 from 81 in 2015-16. Growth of core Infra sectors slows down in FY16. Data furnished by the Office of the Economic Advisor, GoI shows that during FY16, the cumulative growth rate of the eight core Infra sectors in the economy electricity, coal, steel, cement, crude oil, renery products, natural gas and fertilisers slowed down signicantly as compared to FY15. The cumulative growth rate in FY16 stood at merely 2.8%, slower than the 4.5% growth in FY15. The slowdown is attributed to lower output of natural gas, crude oil and steel, and slower growth in the output of coal, cement and electricity. As per data furnished by MoSPI, during FY16, of the 1,076 projects under implementation that entailed a cost of Rs. 1.5 bn, about 343 were delayed. The delays are estimated to have given rise to cost-overrun of more than Rs. 1,500 bn. The outlook of the Indian Infra sector is positive. The budgetary allocation Rs. 2,210 bn towards Infra projects is expected to provide signicant boost to Indian Infra sector. It is forecasted that by the end of 2017, the cargo traffic at Indian ports will cross 943 MT at major ports and 815 MT at minor ports. As per industry estimates, the Indian aviation market will be the third largest across the globe by 2020. Given the huge gap between potential and current air travel penetration in India, the prospects and possibilities of growth of Indian aviation market are enormous. The Ministry of Road Transport & Highways (MORTH) has set itself a target of completing road & highway projects having a cumulative length of a whopping 15,000 km in FY17, as against the 6,000 km completed in FY16. It has also set itself a target of awarding projects for 25,000 km of roads & highways in FY17, as against 10,000 km awarded in FY16. Trends reshaping the market in 2017... Contracting will get tougher E&C contracting is changing

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in multiple ways, creating new challenges for management teams. One clear shift is the migration to Lump Sum, Turnkey (LSTK) contracts in which E&C firms bear the project and cost risk (lump sum) and guarantee operational readiness (turnkey). Clients in both the private and public sectors are becoming far savvier about what projects should actually cost, and they are benefiting from greater competition for bids. As a result, they can demand LSTK contracts. We expect this trend to continue and accelerate over the next year. Some top-performing E&C firms are getting better at working with LSTK contracts, but many others haven’t yet fully adapted. For example, some firms are absorbing the risk but not effectively factoring the additional contingency costs into their bids. Another challenge is the new approach to project definition: Clients are breaking up larger initiatives into smaller, discrete elements. This tactic garners the client a better price, with a trade-off: Clients must take on a greater share of responsibility for project management and controls. These unbundled contracts also prevent E&C players from subsidizing weaker and less cost-effective areas of their operation with the profits from stronger areas. (Buyers will cherry-pick work from those with the best cost positions.) Yet another factor making contracting tougher is the industry’s shift to PPPs. govt agencies need to make upgrades and repairs to Infra;particularly in developed markets; yet they don’t have the capital to fund these projects using traditional deal structures. E&C firms are now being asked to invest their own capital simply to participate, in exchange for a share of operational revenue or some other enticement. In other parts of the world, the migration to PPPs is old news. However, in the U.S. it is still in the early stages. Several toll roads in the U.S. have been built with contractor funding. Meanwhile, the Trump administration has indicated that it will push harder for PPP projects. These changes add up to a different way of working, in which firms assume greater financial risks but also gain access to new potential opportunities. Success requires partnering directly with public-sector entities on an ongoing basis, rather than simply for the construction phase of a project’s life cycle. Market consolidation will continue The second trend has to do with M&A. In recent years, the volume of mergers and acquisitions in E&C has dropped, owing to uncertainty among both buyers and sellers. Buyers are watching oil prices and Infra spending, hoping to “buy at the bottom.” Sellers are trying to hold on until the market rebounds. In the longer term, however, market consolidation will bounce

back, for two reasons. First, the recent downturn has hurt smaller firms (those with less than US$6 billion in revenue) much more than their larger and more diversified peers. Most of these smaller E&C firms have already taken multiple steps to reduce overhead and transform their cost structure, leaving little fat left to cut. And although oil prices appear to have stabilized (for now), many E&C CoS will not benefit for several years, until that capital can work its way through energy CoS’ planning cycles and show up as planned capital expenditures. As a result, some smaller CoS may struggle to meet their debt covenants through 2020. This squeeze will force management teams to ask some hard questions about their viability as stand-alone entities. Those that want to remain independent simply may not have the resources needed to grow. They may need to position themselves for an acquisition. The other reason we are convinced market consolidation will rebound is that larger firms that survived the last few years now face pressure from shareholders, analysts, and other stakeholders to continue creating value. In a flat market, consolidation is an appealing solution. It will be seen as helping CoS diversify and stabilizing their revenue stream. E&C firms will expand their criteria and begin to make acquisitions in new geographic areas and service offerings. This dynamic is already playing out in the market for on-site construction of projects such as transportation systems, dams, and bridges. Small regional players have dominated this market in the past. Yet as large multinational players continue to reduce their cost structure and as municipalities become more comfortable working with them, they compete for these smaller projects. That introduces additional pressure on small players, taking away some of their planned workload, and reducing the margins on projects they retain; in turn rewarding large CoS and further fueling consolidation. Competition will grow from E&C players in China, Korea, and India The third major trend is more global. Firms in rapidly growing economies have spent the past decade focusing on their home markets, steadily building up cash positions and internal expertise. Now, as growth eases in their home markets, they are expanding outward and seeking to compete against established global players. These firms expansion efforts could require them to buy assets and build up critical capabilities and these CoS have the financial means to do just that. They will begin to compete more often for large projects in developed markets, adding another layer of competition and pressure for established E&C firms. For some mega-projects

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CONSTRUCTION MIR ROR

Special Feature: EPC Sector

particularly those for which CoS can build modular elements at home and ship them to the job site for assembly Chinese and Korean CoS can capitalize on lower costs, making their bids more attractive to buyers. Yet they can also bring scale and labor benefits to traditional, on-site construction projects. Even if established players continue to win contracts, the margins are likely to be lower than what they have captured in the past.

How CoS should respond…

In response to these three trends, E&C firms should emphasize three strategic priorities. Focus on the capabilities needed to succeed in the new market dynamic As the shift to LSTK contracts continues, firms need to build stronger capabilities in areas such as estimation, cost controls, and procurement. Rather than simply tracking costs and passing them along to clients, they need to become proactive about identifying bloated costs and reducing them. Similarly, in marketing and sales functions, firms need to adapt to changes in how their clients handle RFPs. This may seem like a difficult challenge, but firms that change their internal processes and become more flexible in how they deal with clients will give themselves an edge. Understand their market position and identify opportunities to build scale Management teams need to understand their position in the market, and specifically whether they have the scale needed to keep costs down and remain competitive. For those that need to make deals, sensing the market is critical. The oil and gas sector is likely to be dynamic over the next few years, and the most promising segments in construction will shift as well. The ability to assess and accurately value potential targets faster than the competition will be critical. For example, some E&C firms are considering buying operations and maintenance (O&M) CoS as a means of stabilizing their revenue. However, now that a few high-profile O&M deals have closed in the last several years, prices for those CoS are significantly higher, skewing the potential advantages of such an acquisition. Take a close look at their cost structure The last and most important strategic priority for E&C firms is to continue to scrutinize their costs. In our experience, many legacy, monolithic E&C firms still struggle to understand the importance of the cost issue. Executives who have worked in the industry for a long time may be too accustomed to the old ways. They need to recognize that technology is changing the design, procurement, and construction of projects to make processes more efficient and less expensive. Similarly, it may be hard for some leadership teams to assess the very real threat from new competition, be it from Asian players or nimble firms in developed

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markets that are adept at navigating today’s more challenging bidding procedures and risk-sharing arrangements. The sooner E&C leaders realize that the industry has dramatically changed and thus requires corresponding changes in their organizations the better equipped they will be to compete. For most E&C firms, the dramatic shifts in contracting and competition are not what they had hoped for as they emerge from a period of Infra neglect and reduced activity in oil development. Having to take on more risk and revisiting approaches to cash flow in an environment that is not all that hospitable can be problematic. But given the boom-and-bust history of this sector, new avenues for growth, no matter how challenging, may be more likely to create sustainable success than what CoS in the industry have gotten used to.

NextGen Construction Methods...

India has recently outpaced China to emerge as the fastest growing large economy. In spite of this, it still features among ‘developing nations’. In order to take a leap into the bigger league of developed economies, India will need to mobilise capital and heavy investment to upgrade its Infra to world-class standards. Also, to help India to sustain its rapid growth trajectory, this world-class Infra will need to be built at a fast pace. Accordingly, the focus should be on integrating advanced technologies and techniques to accelerate the pace of building sustainable Infra and upgrading the existing Infra to a world-class level. The economic development of most countries, especially emerging economies, is signicantly dependant on the level and pace of Infra development. A country with poor Infra not only encounters impediments in efforts to boost economic activity levels, but is also deemed to be unattractive for investment. Poor implementation, along with factors like bureaucratic hurdles, delays in securing clearances and approvals, land acquisition problems, cost-overruns due to delays, etc., tend to render Infra projects obsolete by the time they are commissioned, thereby making them nancially unviable. Infra projects in India are highly susceptible to hurdles caused by land acquisition issues, bureaucratic delays, and delays in securing approvals and clearances.

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Therefore, it is crucial to innovate and adopt new methods of construction to not only help reduce the cost of construction, but also the time taken. The focus ought to be on getting projects commissioned quickly while ensuring quality construction. Modern construction methods are designed to make the process of construction safer, faster, and cheaper. Some of the next-generation construction methods/techniques that are being used in India are as follows Use of PEBs... This involves large concrete components being fabricated offsite, subsequently being transported to the site and assembled to create a superstructure. This results in faster and cheaper construction, primarily because the components are fabricated using 3D modelling and are made in controlled factory settings. Another advantage is that they can be designed to include mechanical, electrical and plumbing connections, thereby reducing the labour time that would otherwise be required to install the same at a later stage. This technique was used in 2012 to construct INSTACON, a 10-storey building in Mohali, Punjab. The structure was constructed in a record 48 hours. Most of the components of the building were manufactured in the factory, pre-tted with oors and other essentials including provisions for water supply, wiring, sanitation and air conditioning ducts, with concrete being used only in the foundations and three inch deck oorings in the nut and bolt structure. Modern scaffolding system... Conventional/ traditional scaffolding systems in India involved the use of materials like timber and bamboo. However, in today’s age, the bamboo is being replaced by steelpipes/props, and battens are being replaced by beams. Modern scaffolding systems provide qualitative consistency in construction and improved surface nish, thereby resulting in savings in time and plastering material. Traditional scaffolding systems are still used quite rampantly in India since modern scaffolding systems are more expensive. Use of ferrocement… Ferrocement is a form of reinforced mortar, consisting of a layer of cement applied over layers of iron-based metals like chicken wire, expanded metal mesh and wires. This helps structures become crack, re, and earthquake-resistant. The material is ideal for lightweight construction and is an affordable alternative for traditional methods. The maintenance costs associated with such structures are also found to be lower vis-a-vis pure steel constructions. Silicon-translucent roofs… Silicon-based structures are increasingly being used in modern building techniques. Although it is largely still in experiment stage of experiment, a number of buildings in Korea have used silicon-coated fabric roofs in their homes These roofs are translucent and light, and let in natural light. They also have acoustic properties. The

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roofs come with an outer skin and an inner blanket of insulation and provide 15% light penetration. Interestingly, the cost associated with the use of the technique is similar to that of conventional roofs. Advanced formwork systems and formwork materials… The conventional formwork system currently being used in India is the traditional timber slab formwork. These formworks involve a signicant amount of labour hours cost. Modern formwork systems, however, requires lesser manpower and keeps costs in control. Accordingly, advanced formwork systems like slip forming, jump forming, self-climbing systems, tunnel forming, modular systems, fabric formwork, and sacricial & collapsible formwork systems, etc., are gaining prominence. Although these systems are initially expensive, they are cost-effective in the mediumto-long term. Likewise, the use of modern formwork materials like form liners, demoulding agents, curing procedures, etc. should be explored.’ Enabling & temporary works… Although these are not really modern advancements in the Western world, enabling & temporary works for buildings and structures, segmental bridges, precast pretensioned girders, balanced cantilever construction bridges should be used on a large scale. Use of reinforced cement concrete (RCC)... This method involves strengthening concrete using bre, steel plates and bars. The load-bearing capacity of RCC is much higher than that of normal concrete. It can withstand more compression using the tensile strength of steel. The presence of steel helps reduce the thermal expansion and contraction of structures. The use of lime helps create an alkaline environment afer it is mixed with water, helping make the structure corrosion resistant and thereby increasing the life of the building manifold. Advanced concrete solutions… Fair-faced concrete is a concrete surface which, on completion of the forming process, requires no further (concrete) treatment other than curing. Modern architecture involves the extensive use of fair-faced concrete. Unlike the past, where it was used only for larger prestigious buildings, mainly because of its load-bearing properties and unequalled cost/ performance ratio, in recent years its use has seen an upward trend because of the design versatility and the variety of nishes that it offers. Likewise, various techniques in terms of its use, effects of different types of shuttering materials and cement, effect of demoulding agents, and curing procedures should be explored by construction CoS. Construction CoS should make use of self-healing concrete, for protection against corrosion. The use of self-cleaning ||www.constructionmirror.com/net||

concrete to make structures which will need lower maintenance. Lift slab construction… This method involves constructing and placing several slabs one over the other and lifting them up after casting, using jacks. The structure is built at the ground level using a separating medium in between. Though this patented technology was designed in 1950s, it is still in the experiment stage in India. The casting for this form is done in-situ, hence, the construction process is faster as major part of the work is done at the ground level without having the need to transport material, thereby saving money and manpower. Cavity wall construction… This form of construction is used to build structures in hot areas. This form of construction provides good insulation against heat, and can be used in air-conditioned buildings and other commercial constructions. It involves leaving a measured air cavity within the wall between masonry leaves. The leaves are tied with brick, concrete wall or metal tiers. This method helps reduce cooling requirements. Use of unconventional material for construction of roads & highways… Indian roads are subjected to extreme changes in weather conditions like heat and rain. As a result, the bitumen which is used as a binder for construction of roads in India loses its adhesive character, resulting in cracks and potholes. The use of modied bitumen, which combines the use of natural asphalt and waste materials like rubber, plastic polymer, etc., should be explored to strengthen the roads. The use of waste can help in more efficient disposal of waste as well. Modern Infra machinery… Construction CoS should make extensive use of modern construction equipment and machinery like lifting bars, advanced cranes, trailers, launching girders, equipment for production and transportation of concrete, equipment for foundation construction, equipment for placing an nishing concrete, etc. There is also need to focus on other advanced Infra-related equipment like advanced jet-pump based dredgin equipment, tunnel-digging machinery, unmanned oil rigs and offshore oil platforms, robotic drilling systems, and roof bolters and shuttle cares for use in mines, among others. A good example of extensive use of modern machinery in India is the Delhi Metro project. As per media reports, phase-III of the Delhi Metro project, which will add about 140 km to the existing network, involves the deployment of 19 tunnel boring machines working simultaneously. The use of about 33 tunnelling drives has also been initiated for the project. According to the Delhi Metro Rail Corporation, this is one of the largest tunnelling projects ever undertaken below any major

urban centre, globally. Robotic systems for civil construction… Robotic systems can be used for precise inspection and maintenance of civil Infra. To reach higher locations, these robots will require adhesion as well as locomotion mechanisms. Robotic systems can also be used for cleaning and maintenance of structures.

Clean & Green Energy...

With a population of close to 1.3 billion people, India is the second most populous country in the world. It is also the seventh largest economy in the world in terms of nominal GDP, and among the fastest growing economies in the world. The country is rich in minerals, is self-sufficient in terms of its agricultural produce, has an array of industries, and is at an advantage with respect to its demographic dividend and working population. Energy will be a key determinant in shaping the country’s development in the coming years. However, going ahead, India’s diminishing natural resources are likely to dent its ability to meet its energy requirements. Data furnished by the Ministry of Power shows that the aggregate installed capacity for power generation (excluding captive power generation) in India as on 30 September 2016 stood at 306.4 GW. This was ~11% higher as compared to the corresponding date a year ago. Of the total installed capacity, thermal power (coal, gas and diesel) accounted for close to 70%. Hydro power accounted for 14.1%. Interestingly, over the past year or so, renewable energy overtook hydro power as the second largest source of power. As on 30 September 2016, renewable energy accounted for a slightly bigger 14.7% of the total installed capacity as compared to hydro power, at around 44.2 GW. This was 23.6% higher than a year ago, reecting a strong focus on renewable energy. As per the MNRE, India has huge potential for renewable energy from various sources such as solar, wind, biomass, small hydro, cogeneration from sugar-mill bagasse, and through conversion of waste to energy. The estimates of energy that can be generated from commercially exploitable sources is pegged at a massive 900 GW. Of this 900 GW, estimates peg India’s potential to generate solar energy and wind energy at 750 GW and 100 GW, respectively. India’s Renewable Energy Potential... To give a perspective on the potential of solar energy in meeting India’s energy requirement, it would be interesting to

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CONSTRUCTION MIR ROR

Special Feature: EPC Sector

note that a country like Germany, which does not get too much sunlight, has an installed capacity of over 40 GW for solar energy. Germany has set itself a goal of producing 35% of its electricity from renewable sources by 2020 and to further meet all its energy needs through renewable energy sources by the year 2050. What is commendable is that Germany is able to generate solar power by enlisting the support of individuals through the setting up of solar panels and by encouraging power CoS to buy the generated solar power from individuals at a xed price. This endeavor required strong regulations and public support, which Germany was able to secure. If a country like Germany is able to harvest solar energy, then a country like India could do much more. With respect to wind power, India is better placed in the global context. As per data furnished by the Global Wind Energy Council, India’s global rank with respect to installed wind power capacity improved to 4th as at the end of 2015 from 5th a year ago. India’s total installed wind power capacity as at the end of calendar year 2015 stood at 25.1 GW, about 11.5% higher than in 2014. India’s wind power capacity stood at 5.8% of the global capacity of 432.9 GW. As per estimates, the level of technology currently available, gives India the on-shore potential for wind power generation of around 65 GW. India also is blessed with a 7,517 km long coastline, and itsterritorial waters extend up to 12 nautical miles into the sea which gives India tremendous opportunities for off-shore wind energy resources. The biggest visible hurdle for India is the high cost associated with generation and the storage of renewable energy vis-a-vis thermal and hydro power. The govt has set itself a target of renewable energy capacity of 175 GW by the year 2022, which includes 100 GW from solar, 60 GW from wind, 10 GW from bio-power and 5 GW from small hydro-power. The capacity target of 100 GW set under the JNNSM comprises 40 GW from rooftop panels and 60 GW through large and medium scale grid connected solar power projects. The achievement of target will propel India to the position of one of the largest green energy producers in the world. The solar mission is expected to entail a total investment of a whopping Rs. 6,000 bn. Although the target seems massive, the fact that several states have already witnessed the launch of net metering in the country for rooftop solar power generation offers some sense of feasibility. Condent of the growth rate in clean energy, the GoI in its submission to the UNFCCC on INDC has made a statement that India will achieve 40% cumulative Electric power capacity from non-fossil fuel based energy resources by 2030 with the help of transfer of technology and low cost international nance. Apart from meeting energy needs, there are many other aspects in Infra where a green and environment76

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friendly approach can be incorporated. For instance, civic bodies can adopt waste management processes that involve the conversion of organic waste into biogas and biofertilizers. Setting up of plants to convert waste into energy is another positive option. Solar energy can be used at local levels to power public utilities like traffic signals and street lights, and even to meet domestic needs like water heaters. LED streetlights offer an improvement in efficiency and performance over conventional lighting technologies. The latest generation LEDs use 50-80% less energy, can last up to six times longer and can provide better and more controllable light in a city’s streets and pulic spaces. The retro-tting of buildings and premises to replace ttings with energy-efficient and ‘zero carbon’ ttings is yet another option. Charging stations for electric vehicles, use of technology in traffic ow control and in pollution control are other examples. It is crucial for India to develop the know-how and technology to improve the cost-effectiveness and viability of renewable energy. This will help reduce India’s dependence on thermal coal imports.

Building Next-Generation Cities...

Urbanisation refers to a gradual increase in the proportion of people living in urban areas. It essentially involves the shift of population from rural to urban areas. Urbanisation acCoS economic development and is a global phenomenon. Data furnished by the UN shows that India and China together account for about 30% of the world’s urban population. As per estimates, the world’s urban population will jump to twice its current size by the year 2050. With about 31% of its population living in urban areas, India is currently at a point of transition where the pace of urbanisation will speed up very soon. Hence, it is crucial for India to plan and develop its urban areas better to support the impending urbanisation. The urban areas need to be able to support the migrant population with good quality housing, cost-efficient physical and social Infra, water, sanitation, electricity, education, healthcare, security, and entertainment & recreation, among other necessities. Urban areas currently contribute to about

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60% of India’s GDP, and are projected to contribute to >70% of the national GDP in the next 15 years. Accordingly, the GoI has rightly decided to develop 100 Smart Cities in the country and modern satellite towns around the existing cities. The list of 100 proposed smart cities was prepared by the govt in such a way that each state/union territory had at least one smart city. The selection process involved the Ministry of Urban Development asking all state govts to shortlist their potential smart cities and to submit their proposals for the development of those cities. The smart cities were then selected based on the evaluation of those proposals. Cities that missed out on selection were encouraged to revise their proposals and to participate in subsequent rounds, indicating that there is scope for more cities to be developed as smart cities. Essentials of a Smart City... Smart Cities can be dened as those which have intelligently developed an efficient physical, social, institutional and economic Infra. The GoI has dened a smart city in the Indian context as a city that provides a decent quality of life to its citizens, a clean and sustainable environment, and supports the application of ‘smart’ solutions. Housing is an important aspect of any city, and the govt has recognised this as a focus area in its smart cities programme. Many cities in India already have a high population density, which gives rise to concerns regarding the ability of such cities to absorb migrants. Knowing the burden that migration can impose on city resources, it is very important for smart cities to be planned in a way that they can expand vertically. Redevelopment of old properties and development of satellite cities can help manage this impending situation. Most importantly, the govt must also step in to ensure that the housing facilities are affordable and inclusive. Another problem that exists in most cities is that the reach and accessibility of administrative services is limited. As a result, people are forced to make use of vehicles to avail of such services. This gives rise to potentially high levels of traffic congestion, air pollution and resource depletion (fuel, water, etc.). If, on the other hand, administrative services are offered within walking or cycling distance, it could go a long way in improving the quality of life. The govt’s smart cities programme has specied this as a focus area as well. The govt has also dwelt on the paucity of open spaces, like playgrounds, parks and other 0recreational spaces in cities. Smart cities are being envisioned to be developed in a way so as to encourage the preservation and development of such open spaces and also to reduce urban heat and promote eco-balance. Smart cities will have efficient and citizen-friendly e-governance portals. These portals will foster accountability and transparency and reduce the need of citizens to actually visit govt offices to get work done. The govt has also stressed on the importance of developing and/or maintaining a city’s identity based on its main economic activity. The identity could be based on local cuisine, health, education, arts & crafts, culture, textiles, industries, and other aspects. The govt’s

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smart cities programme has dwelt on the importance of disaster management systems. It also deals with telecom enablers of smart cities like efficient and improved density of telecom networks involving the use of cable, satellite, RF mesh, microwave telecommunication, ber optic networks, WiFi, etc., cloud computing frameworks, internet of things and IPv6, sensor networks to monitor conditions like temperature, sound, vibration, pressure, motion, pollution, intelligent power grids water and gas networks, and more. The programme also focuses on the expansion in the utility of mobile broadband so as to transform the mobile phone from a mere communication device to an instrument of empowerment that can receive alerts and notications and are also equipped with GPS, a microphone, gyroscope, light sensors, cameras, accelerometers, barometers, thermometers, magnetometers and hygrometers. Mobile phone CoS these days are looking at new ways to integrate devices in other aspects of life. For instance, wearable smart devices are being developed to monitor blood pressure, etc. The govt has attempted to list down the core Infra elements in a smart city. These are Adequate water supply, Assured electricity supply, Efficient sanitation, including solid waste management, Efficient urban mobility and public transport, Affordable housing, especially for the poor, Robust IT connectivity and digitalisation, Good governance, especially e-Governance and citizen participation, Sustainable environment, Safety and security of citizens, particularly of women, children and

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the elderly; and, Health and education. Apart from the core Infra elements listed above, smart cities should also support smart solutions. These smart solutions are designed to enhance the quality of life by enabling local area development and with the help of technology. Accordingly, the list of smart solutions that smart cities are expected to support includes E-Governance and Citizen Services Portals/forums for public information and grievance redressal, Electronic service delivery systems, Engagement with citizens through e-governance portals, Citizen Vigilance SystemCitizens playing the role of the city’s eyes and ears, Video Crime Monitoring. Waste Management System Conversion of waste to energy and fuel, Conversion of waste to compost, Treatment of wastewater and sewage, Recycling and reduction of construction & demolition waste. Water Management Use of Smart Meters and other tools for optimum utilisation of water, Systems to identify leakages and to conduct preventive maintenance, Systems to monitor the quality of water. Energy Management Use of Smart Meters and other tools for optimum utilisation of energy, Dependence on, and gradual shift towards renewable sources of energy, Development/ redevelopment/retrotting of buildings so as to make them energy-efficient and green. Urban Mobility Smart parking systems at various locations oIntelligent traffic management systems, Integrated multi-modal transport systems. Others Telemedicine and Tele-education systems,

Incubation/trade facilitation centers, Skill development centers. Financing of the Plan... The Smart City Mission will be operated as a Centrally Sponsored Scheme, and the Central govt proposes to give nancial support to the Mission to the extent of Rs. 480 bn over a period of ve years, which translates into an average of Rs. 1 bn/city per year. An equal amount, on a matching basis, will have to be contributed by the state/urban local bodies. Therefore, nearly Rs. 1 trillion of govt/ulb funds will be available. Moving Forward... Proper implementation of the Smart Cities program would ensure the leveraging of technology to improve the quality of life. However, the benets of smart cities need to be all-pervasive and available to masses. Better planning and provision of basic requirements in these smart cities is also important. Easy access to water and power are absolutely critical. Construction of earthquake resistant buildings, efficient drainage and waste disposal/ management systems, local security, surveillance and vigilance systems are also important. Focusing on renewable energy will also help reduce the strain on our resources and hold the nation in good stead. Without focusing on these bare necessities, the smart cities programme will not provide the desired impact. The smart cities program offers endless opportunities to Infra CoS, not just for business, but also in terms of actively participating in propelling the nation towards rapid growth.

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CONSTRUCTION MIR ROR

Industry Feature: PEBs

Engineering Trends in Making Structural Things and The Future of PEBs

efore we look into the future, letâ&#x20AC;&#x2122;s reflect on the trends that have impacted the structural industry over the past decade and how CoS have adopted to them. Looking at fabrication first, the various manufacturing sectors have faced similar trends but have responded to them differently. All the sectors are seeing a continued shortage of domestic skilled labor which has forced manufacturers to outsource engineering, invest in more tech and adopt more prefabrication methods to reduce the need for labor on site. The structural steel industry has responded to labor shortages and competitive pressures with full force by embracing digital technology more than any sector. In fact, the structural steel fabrication industry has spent the last 2 decades using 3D model-driven technologies to streamline shop fabrication, reduce waste, and improve quality. This has truly made the steel industry more cost effective, Building Information Modeling (BIM)-enabled, and scalable to meet client demand, but there is still room to go. The precast concrete, cold-formed steel, and timber industries have started to use model-driven workflows where labor costs are high and prefabrication brings benefits to project delivery. The cast-in-place industry continues

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to lag in its use of model-driven technologies in design, manufacturing and construction. Though rebar manufacturing shops use highly automated and optimized processes, their methods are still mostly 2D based. Looking at structural engineering trends, the most important trend since the advent of personal computing is the adoption of BIM. With adoption beginning in the early 2000s, it established a way for project teams to improve collaboration by working within a common, multi-discipline 3D environment. Structural engineering firms initially adopted BIM to meet client requirements but now see the return-oninvestment as a result of better coordinated designs that are easier to communicate to their clients. The benefits of BIM have been recognized by owners, now driving BIM mandates along with government agencies across the world. The benefits of BIM are real and engineering and fabrication firms are seeing its benefits. However, we must not forget that BIM is not the only trend impacting the industry. There are other challenges beyond new technology that are disrupting the structural industry we know and driving change.

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Challenges, Trends

Despite the proven benefits of BIM in engineering and the use of model-driven processes in fabrication, the various structural sectors still feel the pressure from increasing project complexity, globally dispersed teams and accelerated project schedules, and a lack of skilled labor entering the workforce. To overcome these challenges, project teams are finding new ways to collaborate so they can generate new value streams in their project work to remain competitive. For example, if engineers, fabricators and builders can contractually work together with shared risk and reward, the benefits are significantly greater. Because ||www.constructionmirror.com/net||

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CONSTRUCTION MIR ROR

Industry Feature: PEBs

of this, we are seeing firms change how they deliver projects in a no of ways: Engineering firms and construction firms are merging to provide combined, integrated design to construction services. Firms are using more innovative contractual models to deliver projects like Design-Assist, DesignBuild or Integrated Project Delivery. Firms are forming partnerships to offer integrated services. This could be engineers partnering with steel detailing or fabrication companies or fabricators extending their design-assist services further upstream. What different now and in future is a transformation in how construction projects are designed and built that will magnify the benefits of using these new delivery models. We are now at the cusp of a new era of connected design, manufacturing, construction and building operation that is being driven by the digitization of information and connectivity between people, places and things, also referred to as the Internet of Things. New structural materials and systems will emerge that are smart, connected, adaptive and sustainable. Examples of this are self-healing concrete, 3D printed nano-structures and structural systems that dynamically adapt to changes in their environment. Such technology uses smart sensors in buildings to study a structure’s resonance behavior so engineers and building owners can better predict structural performance during an earthquake. Self-learning computational methods will automate simple engineering tasks while assisting engineers in performing more complex engineering tasks. This will empower engineers to offer more high-value services. Global work sharing will become commonplace as the world scales its cloud infrastructure, making engineering and detailing services highly competitive. Engineering education will focus on high-value, problem-solving skill sets. Craft and labor training will require new technology skill sets that are more manufacturing centric. Manufacturing processes will be hyper-connected with the buildings that enclose them to optimize and minimize energy consumption and carbon footprint. Manufacturing-driven innovations like machine learning, lean manufacturing, and modular construction will transform the construction site in response to a growing shortage in skilled domestic labor. A great example of this is the steel industry’s adoption of novel steel modular frame systems. Sharing economy will disrupt how construction projects are funded, designed, built and operated. This will be enabled through connectivity of teams, manufacturing, jobsite processes, building operations. The common theme that will emerge is a hyper-connectedness between people and things that will allow the production of ideas and things to be done in a much more effective, sustainable way.

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Sustainable design trends

Role of structural engineers in sustainable design has expanded largely due to increased demand by building owners and the public for greater efficiencies, which makes it both an exciting and challenging time to be in this profession. Sustainable issues are much more global in nature. Future of sustainable design mandates changes today that will affect traditional building processes, codification. And in order to define and actualize these new conventions, we can no longer think conventionally. In terms of sustainable design trends of the future, we must begin the conversation with our leaders. To do so will require a mind shift of great proportions. We will need to rethink what can and cannot be allowed in terms of building codes while maintaining an emphasis on engineering safe, sustainable structures. We cannot hamper the great wealth of creative thought that structural engineers possess. We have seen great strides in the area of seismic engineering, which will result in more efficient and thus more sustainable structures, and we need to expand that creative thinking to other areas. Currently, the model building codes allow building officials to permit the reuse of existing structures, without upgrades, provided there are no adverse safety ramifications. These provisions are keys to allowing the adaptive reuse of our nation’s extensive stock of existing buildings, provided the new use does not impose increased loading on a structure. While these are long-standing provisions in model codes, many do not take full advantage of this, when appropriate, to justify the continued use of an existing structure. The preservation of an existing structure is the ultimate in sustainability. With today’s advances in material choices, such as fiber-reinforced polymers, it is possible to save an existing structure and reduce the carbon footprint produced from demolition. Although cost is always a consideration, many of these structures can be converted into sustainable, cost-effective structures by using alternative materials. In order to equitably compare the development approach when dealing with an existing structure, we need to reconcile the environmental impact of the demolition and replacement of the structure with the impact of a new structure. If we are serious about creating a sustainable future, it is incumbent upon us as structural

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engineers to provide a sum total of the project at hand. In order to remain relevant, the professional mindsets of structural engineers cannot be perceived as static. If we are to advocate for sustainability, we must engage ourselves at the earliest stages of design. As options are considered, we can help to identify materials that are regionally specific and efficient; we can suggest sustainable methods for preserving or deconstructing a building, depending upon its future use and related project costs and budgets; and we can develop structural systems that are efficient and relevant to the form and function of the facility. If we consider the entire environmental impact related to the production and procurement of these materials, it does not always represent the most sustainable approach to structural construction. We need to be open to changes in materials and design approaches that may offer greater sustainability. Hybrid systems combining the use of regional materials configured to take advantage of their best structural properties can offer strong, sustainable options. For example, engineered timber products produced from rapidly renewable forests can be combined with high-strength steel to create efficient, architecturally pleasing trusses. Natural stone in combination with steel cabling can be utilized instead of cast stone or precast concrete with conventional steel framing to create architectural elements such as sunscreens. As architectural practices trend toward exposed structures and eliminating finishes, the building structure becomes more of an architectural statement. For example, the use of exterior sunshading for reductions in energy consumption helps define the exterior space of the building. These trends allow the structural engineer to highlight his work and creativity, and do more than just engineer the skeletal element on which everything is built. From a sustainable viewpoint, building information modeling (BIM) represents the future. BIM enables every component of the building to be modeled for efficiency. When the structure becomes part of the architecture, the structure has to be modeled to see how the systems interrelate. Changes in the methods by which we conduct business can also have sustainable benefits. For example, the shift from traditional CAD to BIM can and should result in a more efficient methodology for the production of not only our work, but the work of the entire project team. BIM means less paper and more collaboration, and it has the potential to bring the entire project team, including the contractor and the sub-contractors, together. For structural engineers, the greater our ability to collaborate using BIM, the more efficient we become and the smaller our carbon footprint. The good news is that in many cases structural engineers are leading this transition.

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Different Rolled Steel Sections

Rolled steel sections are available in various forms for use in Steel Construction. Shapes, sizes and properties of these rolled steel sections are discussed. Steel is one of the important building materials in construction industry. It can be used in many ways for many purposes. Diff. steel members are manufactured in the factories based their usage. Rolled steel sections are casted in continuous casting molds without any joints. Diff. shapes or forms of rolled steel sections are explained below. Various forms of rolled steel sections are: Angle sections; Channel sections; T- sections; I-sections; Round bars; Square bars; Flat bars; Corrugated sheets; Expanded metal; Plates; Ribbed bars (HYSD); Ribbed bars (mild steel); Thermomechanically treated bars; Welded wire fabrics.

concrete design, and with increased understanding of the behavior of reinforced concrete at ultimate loads, the ultimate load of design is evolved and became an alternative to WSM. This method is sometimes also referred to as the load factor methods are the ultimate strength. In this method, the stress condition at the site of impending collapse of the structure is analyzed, and the non linear stress-strain curves of concrete and steel are made use of. The concept of ‘modular ratio’ and its associated problems are avoided entirely in this method. The safety measure design is introduced by an appropriate choice of the load factor, defined as the ratio of the ultimate load to the working load. The ultimate load method males it possible for

different types of loads to be assigned different load factors under combined loading conditions, thereby overcoming the related shortcoming of WSM. This method generally results in more slender sections, and often economical designs of beams and columns, particularly when high strength reinforcing steel and concrete are used. However, the satisfactory ‘strength’ performance at ultimate loads does not guarantee satisfactory ‘serviceability’ performance at the normal service loads. The designs sometimes result in excessive deflections and crack-widths under service loads, owing to the slender sections resulting from the use of high strength reinforcing steel, concrete. The distribution of stress resultants at ultimate load is taken as the

Structural design philosophies

Working stress method (WSM): This was the traditional method of design not only for reinforced concrete, but also for structural steel and timber design. The method basically assumes that the structural material behaves as a linear elastic manner, and that adequate safety can be ensured by suitably restricting the stresses in the material induced by the expected “working loads” on the structure. As the specified permissible stresses are kept well below the material strength, the assumption of linear elastic behavior is considered justifiable. The ratio of the strength of the material to the permissible stress is often referred to as the factor of safety. However, the main assumption linear elastic behavior and the tacit assumption that the stresses under working loads can be kept within the ‘permissible stresses’ are not found to be realistic. Many factors are responsible for this such as a long term effort of creep and shrinkage, the effects of stress concentrations, and other secondary effects. All such effects resulting significant local increases in a redistribution of the calculated stresses. The design usually results in relatively large sections of structural members, thereby resulting in better serviceability performance under the usual working loads. Ultimate load method (ULM): With the growing realization of the short comings of WSM in reinforced ||www.constructionmirror.com/net||

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CONSTRUCTION MIR ROR

Industry Feature: Industry Feature: PEB PEBs

distribution at the service loads, magnified by the load factor(s); in other words, analysis is still based on linear elastic theory. Limit state method (LSM): The philosophy of the limit state method of design represents a definite advancement over the traditional design philosophies. Unlike WSM which based calculations on service load conditions alone, and unlike ULM, which based calculations on ultimate load conditions alone, LSM aims for a comprehensive and rational solution to the design problem, by considering safety at ultimate loads and serviceability at working loads. LSM philosophy uses a multiple safety factor format which attempts to provide adequate safety at ultimate loads as well as adequate serviceability at service loads, by considering all possible ‘Limit State’. Limits States: A limit state is a state of impending failure, beyond which a structure ceases to perform its intended function satisfactorily, in terms of either safety of serviceability i.e. it either collapses or becomes unserviceable.There are two types of limit states: Ultimate limit states (limit states of collapse) which deal with strength, overturning, sliding, buckling, fatigue fracture etc. Serviceability limit states which deals with discomfort to occupancy and/ or malfunction, caused by excessive deflection, crack width, vibration leakage etc., and also loss of

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durability etc.

Methods of steel structure design

Joints in structures have been assumed to behave as either pinned or rigid to render design calculations manageable. In ‘simple design’ the joints are idealised as perfect pins. ‘Continuous design’ assumes that joints are rigid and that no relative rotation of connected members occurs whatever the applied moment. The vast majority of designs carried out today make one of these 2 assumptions, but a more realistic alternative is now possible, which is known as semi-continuous design. Simple design: Simple design is the most traditional approach and is still commonly used. It is assumed that no moment is transferred from one connected member to another, except for the nominal moments which arise as a result of eccentricity at joints. The resistance of the structure to lateral loads and sway is usually ensured by the provision of bracing or, in some multi-storey buildings, by concrete cores. It is important that the designer recognises the assumptions regarding joint response and ensures that the detailing of the connections is such that no moments develop that can adversely affect the performance of the structure. Many years of experience have demonstrated the types of details that satisfy this criterion and the designer should refer to the standard connections on joints in

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simple construction. Continuous design: In continuous design, it is assumed that joints are rigid and transfer moment between members. The stability of the frame against sway is by frame action (i.e. by bending of beams and columns). Continuous design is more complex than simple design therefore software is commonly used to analyse the frame. Realistic combinations of pattern loading must be considered when designing continuous frames. The connections between members must have different characteristics depending on whether the design method for the frame is elastic or plastic. In elastic design, the joints must possess sufficient rotational stiffness to ensure that the distribution of forces and moments around the frame are not significantly different to those calculated. The joint must be able to carry the moments, forces and shears arising from the frame analysis. In plastic design, in determining the ultimate load capacity, the strength (not stiffness) of the joint is of prime importance. The strength of the joint will determine whether plastic hinges occur in the joints or in the members, and will have a significant effect on the collapse mechanism. If hinges are designed to occur in the joints, the joint must be detailed with sufficient ductility to accommodate the resulting rotations. The stiffness of the joints will be important when calculating beam deflections, sway

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deflections and sway stability. Semi-continuous design: True semi-continuous design is more complex than either simple or continuous design as the real joint response is more realistically represented. Analytical routines to follow the true connection behaviour closely are highly involved and unsuitable for routine design, as they require the use of sophisticated computer programs. However, two simplified procedures do exist for both braced and unbraced frames; these are briefly referred to below. Braced frames are those where the resistance to lateral loads is provided by a bracing system or a core; in unbraced frames this resistance is generated by bending moments in the columns and beams. Simplified procedures: The wind moment method, for unbraced frames. In this procedure, the beam/column joints are assumed to be pinned when considering gravity loads. However, under wind loading they are assumed to be rigid, which means that lateral loads are carried by frame action. A fuller description of the method can be found in reference. Semi-continuous design of braced frames. In this procedure, account of the real joint behaviour is taken to reduce the bending moments applied to the beams and to reduce the deflections. Details of the method can be found in reference.

Factor of safety

In the elastic design of steel structures, the factor of safety is applied on the yield stress of the material to obtain the working stress or permissible stress in the material. The value of factor of safety is decided considering the followings: • The average strength of materials is determined after making tests on number of specimens. The strengths of different specimens of given structural material are not identical. • The values of design loads remain uncertain, but values of dead loads can be determined correctly. But live load, impact load, wind load, snow load, etc cannot be determined with certainty since these depend upon statistics available. The probable values of these loads are only determined. • The values of internal forces in many structures depend upon the methods of analysis. The degree of precision of different methods varies. The methods involving detailed analysis are more precise. In case, analysis of the structure is done precisely, a small value of factor of safety may be adopted. • During fabrication, structural steel is subjected to different operations. The

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punching of a hole in a structural element distorts the surrounding material and cause high residual stresses. The warping and buckling of elements may take place during welding. The welding leaves high residual stresses. Structural elements are subjected to uncertain stress. • The variations in temperatures and settlement of supports are uncertain. Many times, a well designed structure is damaged because of these effects. The strength of materials decreases because of corrosion. The extent of corrosion is more when a structure is located in industrial areas and exposed to chemical wastes. • The failure of some structures or some elements of a structure is less serious and less disastrous than the failure of large structures or a main element of a structure.

Latest Trends

Pre-Engineered Steel Buildings (PEB) use a combination of built-up sections, hot rolled sections and cold formed elements which provide the basic steel frame work with a choice of single skin sheeting with added insulation or insulated sandwich panels for roofing and wall cladding. The concept is designed to provide a complete building envelope system which is air tight, energy efficient, optimum in weight and cost and, above all, designed to fit user requirement like a well fitted glove. These Pre-Engineered Steel Buildings can be fitted with different structural accessories including mezzanine floors, canopies, fascias, interior partitions, crane systems etc. The building is made water-tight by use of special mastic beads, filler strips and trims. This is a very versatile building system and can be finished internally to serve any required function and accessorized externally to achieve attractive and distinctive architectural styles. It is most suitable for any low-rise building and offers numerous benefits over conventional buildings. Pre-engineered buildings are generally low rise buildings; however the maximum eave heights can go upto 25 to 30 metres. Low rise buildings are ideal for offices, houses, showrooms, shop fronts etc. The application of pre-engineered concept to low rise buildings is very economical and speedy. Buildings can be constructed in less than half the normal time especially when complimented with other engineered sub-systems. The most common and economical type of low-rise building is a building with ground floor and two intermediate floors plus roof. The roof of a low rise building may be flat or sloped. Intermediate floors of low rise buildings are made of mezzanine systems. Single storeyed houses for living take minimum time for construction and can be built in any type of geographic location like extreme cold hilly areas, high rain prone areas, plain land, extreme

hot climatic zones etc. There are basically nine major components in a pre-engineered building such as Main framing or vertical columns; End wall framing; Purlins, girts and eave struts; Sheeting and insulation or prefab panels; Crane system; Mezzanine system; Bracing system; Paints and finishes; Miscellaneous services.

Pre-engineered building components

The pre-engineered building components headings are almost the same as the conventional structural steel building components. Apart from the state of the art technology used for fabrication of pre-engineered buildings, the other main difference is in the assembling of PEB. The varied components of the PEB are joined to each other based on the nut and bolt methodology as against the welding and riveting methodology used for structural steel buildings. The nut and bolt system has the following basic advantages:– Metal building technologies permit almost complete freedom to the designer and the architect in incorporating whatever features may be needed in the building-structural, thermal, ventilation or acoustical, to name a few. Metal roofing and siding profiles can be manufactured to any length limited only by transportation constraints (usually to 12 metres). Lap joints with 150mm to 200mm overlap virtually eliminate water ingress. Profiling can be carried out at site itself and, with no limit whatever in lengths that can be rolled. This permits a totally joint-less run of roofing, a major advantage to the designers to create roofing with the minimum pitch. Machines have been developed which permit rolling at the eaves level so that even the task of lifting and shifting the rolled profiles in to position is avoided. Standing seam profiles with a pre-determined height of up-stands can be chosen to accommodate the expected run-off of water without overflow on to the crest of the profile. Pre-engineering of metal buildings can be optimized to meet specific design criteria. Purpose built buildings such as Hangers for aircraft, Warehouses, Manufacturing and Repair facilities, captive power plants, cold storages, office buildings, hospitals, living shelters etc. need roof-slung facilities and utilities imposing localized loads on to the building structure. In automotive manufacturing plants, high altitude living shelters and cold storages, considerable economies have been registered by such optimized designs. Installation of this type of roofing & cladding system can provide 30 years or more of trouble-free service in most environments.

PEB Benefits, Applications

Benefits of pre-engineered steel buildings include (but are not limited to) the following: Optimised design of steel reducing weight; Easy future expansion/ modification; Voluminous space; Weather proof;

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CONSTRUCTION MIR ROR

Industry Feature: PEBs

No fire hazards; International Quality Standards; Seismic & Wind pressure resistant. ; Quality design, manufacturing and erection; Quick delivery and Quick turn-key construction; Architectural versatality; Energy efficient roof and wall system using Rockwool & PUF insulation; Water-tight roofs & wall coverings; -painted and has low maintenance requirement; Easy integration of all construction materials; Erection of the building is fast; The building can be dismantled and relocated easily; Future extensions can be easily accommodated without much hassle. Applications of pre-engineered steel buildings include (but are not limited to) the following: Houses & Living Shelters; Factories; Warehouses; Sport Halls; Aircraft Hangers; Supermarkets; Distribution Centres; Commercial Showrooms; Restaurants; Office Buildings; Labor Camps; Petrol Pumps/Service Buildings; Schools; Community Centres; Railway Stations; Equipment housing/shelters; Telecommunication shelters; Almost any low-rise building

Types of roofing & wall cladding system

These profile steel sheets are usually categorized into two types depending upon the type of fixing arrangement followed. These two types are known as Through Fastened and second one is Standing Seam. In through fastened roofing or side cladding system, the steel profile panels are fixed to the structural members by self drilling fasteners either manually or mechanically by a gun. In this system, the steel sheets are perforated and punctured. These perforated buildings are under stress due to thermal effects and may cause corrosion if proper grade washer and sealants are not used. The second system Standing Seam roofing or cladding differs from through fastened seam, here the steel sheets are not punctured. A special kind of holding clip made out of galvanized steel is fixed to the underline steel structure and the profile steel sheets are pressed over the clips and gets locked. The steel profile sheets are held together and secured to the clips by a mechanical seam. These clips permit steel sheets to move/float over the structure to bear thermal expansion and contraction brought on by the seasonal changes. Since steel sheets are not punctured there is no chance of any corrosion taking place. With the availability of modern roll forming technology, the profiling machine can be installed at the site and long length profile sheets can be manufactured at site (>12 metre). This makes very quick installation. The Standing Seam roof design can be used for near flat sloping roof buildings (<10). For such roofs, bare profile steel sheets (un-quoted) can be used for economic reasons as the roof slope is virtually not visible from outside. In Standing Seam roofing, there is only one jointing between the steel sheets that is the longitudinal joint, whereas in case of through fastened system, there is also an overlap 84

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horizontally. Usually the longitudinal overlap is of one profile (the profile of one sheet exactly rests over the profile of the over sheet) and the horizontal overlapping is minimum 150mm. The fasteners are fixed on the crests for roofing and on the valley for side cladding. The fasteners usually are galvanized and sometimes SS. Steel roof buildings applicable to both residential and non residential buildings are lighter in weight, easier to install, highly resistant to environmental damage due to windage, rain, snow, marine atmosphere and free of frequent maintenance and repairs. The life is also quite substantial. However, residential roofing requires a more aesthetic pleasing appearance. Various types of roofing and side cladding design is possible in a combination of various colours by steel sheets. The steel sheets can be rounded or crimp curved for providing typical shape and finish to the building. Because of the light weight of the steel sheet, the steel structure underneath can be possible with a lower weight. Taking advantage of this proper insulation system can be fixed below the roofing sheets and the siding walls. The underneath steel structure can be used for placing fibrous insulation material like resin bonded rockwool laminated suitably and held in position with the help of a metallic mesh or a rigid packing. This insulation layer underneath caters to thermal insulation as well as sound barrier from outside. Such insulation reduces the noise level from outside and keeps out heat during summer and cold during winter. Sandwich panels: In addition to the above single sheet profiles, sandwich panels also find extensive use in residential as well as non-residential buildings. In sandwich panels two profile steel sheets having insulation in between are used. The insulation can be a fibrous rockwool or a rigid material like polyurethane foam. These sandwich panels can be factory made and sent to the site as a single piece material or fabricated at site. These panels are light weight, rigid and results in very fast erection. The panels provide sufficient insulation and noise reduction properties. Nowadays large cold storage units (Potato, Onion, vegetables, processed foods etc.) are also made with this pre-engineered building technique. For this application â&#x20AC;&#x2DC;Sandwich Panelsâ&#x20AC;&#x2122; featuring a core of high efficiency insulation like Polyurethane is used. The inner and outer surface of the panel elements are made up of hot dipped galvanized or zincalume coated pre-painted steel sheets. The steel sheet has light cutting grooves in order to give extra strength as well as to enhance the appearance of the cladding. Many industrial enclosures call for acoustical barrier value to be possessed by the building cladding and roofing. In addition, internal absorption may be called for to reduce internally built up noise. It is easy to feature these attributes while featuring metal building

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concepts by installation of high density Rockwool Slabs insulation underneath the cladding/roofing sheet or sandwiched between 2 steel profiled sheets. Erection: Steel framing members are delivered at site in pre-cut sizes, which eliminates cutting and welding at site. Being lighter in weight, the small members can be very easily assembled, bolted and raised with the help of cranes. This system allows very fast construction and reduces wastage and labour requirement. These buildings can then be provided with roof decking and wall cladding with metal profile sheets and proper insulation. The framing are so designed that electrical and plumbing services are part of it and can be very easily concealed. Maintenance: In PEB the maintenance area is the steel roofing & cladding. Steel roofing & side wall cladding requires minimum maintenance. The roof should be inspected immediately after installation to check if cleaning of the roof has been carried out fully. It is very often seen that the drilled out metal and debris are not swept away. These can act as initiators of corrosion and lead to premature failures. Installed roofing must be inspected atleast once a year. Any exposed metal that can rust or has rusted should be painted. Leaves, branches, and trash should be removed from gutters, at ridge caps and in corners. Watch out for discharge from industrial stacks, and particulate matter and high sulphur exhaust from space heaters which could get piled up. Roof top ancillaries and air conditoner supports, drains and housing should be checked. Particular attention should be paid to add-on roof ancillaries that create new roof penetrations. Roof-top air conditioners should be installed on curbs designed to avoid ponding water. Condensate from air conditioning and refrigeration equipment should never be allowed to drain directly on to the roof panels. Drainage contains ions from condenser coils that accelerate corrosion. In the event of a roof leak, do not indiscriminately plaster the suspected leak area with tar/ asphalt/ use repair tape. Water can collect under the repair material causing corrosion. Instead, have an exp. roofing foreman locate the leak, identify its cause and properly repair the roof. Steel is a preferred material for construction, due to its various advantages like quality, aesthetics, economy, env. conditions. This concept have lot of scope in India, can actually fill up critical shortage of housing, educational, health care institutions, airports, railway stations, industrial buildings, cold storages etc. PEB concept forms an unique position in the construction industry in view of their being ideally suited to the needs of modern Engineering Industry. It would be the only solution for large industrial enclosures having thermal, acoustical features. Major advantage is high speed of design, construction for buildings of various categories. ||www.constructionmirror.com/net||

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CONSTRUCTION MIR ROR

Guest Article

The Art of Scaffolding: Innovative Concept Allround Bridging System for Pedestrian Bridge

or more than 60 years, the Layher name has been synonymous worldwide with high-quality and practically tested scaffolding systems. Layher is present worldwide with more than 30 sales subsidiaries. The products are used for building and construction, in all kinds of industries like chemical plants or power plants, at shipyards and offshore. Due to innovative products, superior technical solutions and Layher’s absolute customer orientated service package Layher has become the standard in scaffolding systems worldwide. The Allround bridging systems is the ideal complements to Layher Allround equipment with just few additional components, the load-bearing capacity of the proven Allround systems can be increased enough to create for example, wide- span footbridges or support structure for heavy loads. The Allround Bridging system is a modular truss system that can be adapted to the respective application. The posts of the Allround Bridging Systems have wedge heads welded to the side, to which standards of the Allround equipment can be fastened. As a result, the

Allround Bridging Systems can be combined with Allround equipment, offering a wide range of possible uses. A complete integration into an Allround Scaffolding structure (e.g. to transfer high loads or for bridging of wide spans) is also possible. The individual components of the Layher Allround Bridging System are connected in a time-saving way using bolts of diameter 30 mm. The connection to the Allround equipment is made using the proven Allround wedge head connection. A standard Layher bridge structure mainly comprises two loads transferring Allround Bridging Systems which are arranged parallel to one another at a defined distance, depending on the required bridge width. A stable bridge supporting structure is obtained with an internal Allround scaffolding structure fastened between the two Allround Bridging Systems, The stiffening in the transverse direction and hence the stabilization of the Allround Bridging Systems is achieved with horizontally arranged bracing in the Allround structure. The bridge decking and the guard rails are fastened to the internal Allround scaffolding structure. The entire bridge structure – both bridging units in combination with internal Allround

||Mithilesh Kumar||Director|| ||Layher scaffolding systems Pvt Ltd||

Scaffolding – is finally supported at the bridge ends. The support can for example be on individual Layher heavy-duty supports integrated into a separate stairway access. In some cases, it is also possible to support the end posts of the bridge directly on existing foundations, beams or walls With the new development “Allround bridging system” Layher offers the optimal solution for the construction of a more than a hundred metres long pedestrian crossing with free spanned bridge elements of 31 metres.

Innovative supplementary component: even unsupported bridging structures with a span of up to 30 meters can be completed, or high loads can be supported thanks to the modular All-round bridging system from Layher

Application of Allround Bridging Systems

When a footbridge is built, the Allround bridging systems is connected to Allround standards using the wedge-heads provided on the sides of post. Depends on the application, either event decks or steel decks can be used. As a replacement for the closed bridge, ordered the construction of a temporary pedestrian crossing which was to cross the road and railway parallel to the existing bridge. Tasks of this nature generally require projectoriented and therefore expensive special constructions. With the innovation from Layher, scaffolders can now offer this service much more efficiently with only a few additional components to the Allround system. After a successful appearance in Davos at the World Economic

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Forum, the use of the Allround bridging system for this project with supporting spans of up to 31 metres was also the optimal solution. In order to derange traffic on this highly frequented route as little as possible, the construction was pre-assembled on the ground. To bridge road and river, provisions were made for two sections of 31 metres each. To compensate deflexion, these were constructed thanks to the lengthwise adjustable diagonal brace with a slight cant. Within only five minutes, the builders in charge were now able to place the two parts of the bridge onto the supports by means of a crane: during the afternoon over the river, and at night – during a short complete closure – over the motorway. One day, one night – and the

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bridge is completed for duration of approximately four to six months. Accesses as well as the middle section were, thanks to full compatibility, constructed with the Allround scaffolding.

Layher Allround Bridging System as temporary pedestrian bridge at UK (Drax Power Station) ||www.constructionmirror.com/net||

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CONSTRUCTION MIR ROR

Guest Article

Celebrating 25 Years of Glorious Service AJAX FIORI is the personification of concreting equipment and solutions that Makes Concrete Sense. It promises to deliver concreting solutions through its equipment those batches, mixes, transports and places concrete Wherever the need is, Whenever the need arises for Whatever the nature of need is. Celebrating its 25 Glorious Years of Service in the Construction Equipment Industry, Ajax Fiori has been a part of various Infrastructure projects and played a key role in Nation Building. Ajax Fiori was established in 1992 as a joint venture company with Fiori S.p.A Italy, for manufacturing Self-Loading Mobile Concrete Mixer. In 1998, Ajax Fiori started manufacturing Concrete Batching Plants â&#x20AC;&#x201C; Radius Lift Arm type and Bin type. In 2004, it entered into technology tie-up with Eurostar Concrete Technology S.p.A Italy for manufacture of Planetary Mixers. In 2013, it entered into a technology tie-up with Junjin Heavy Industry Co., Ltd., South Korea for manufacture of Concrete Pumps & Placer Booms. We have over 12000 pants & machinery working on various Infrastructure projects in the country and we are happy to be a part of Building the Nation. Our range of innovative products, including Self Loading Concrete Mixers, Batching Plants and Concrete Pumps, designed to help our customers produce and deliver quality concrete, whenever the

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demand, wherever the need arises, and whatever the volume required. Our versatile user friendly machines help customers improve productivity, while increasing profits along the way. Ajax Fiori is head quartered at Bangalore, having Regional Offices at Mumbai, Delhi, Kolkata, Hyderabad, Indore & Chennai has its Dealer presence across the country. Currently 25+ Dealers are Operational in India with 50+ touch points to cater sales & after sales support to its customer. Ajax Fiori has also entered into International Operation

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and has the presence in Nepal, Bhutan & Srilanka through its Dealer network. Its state-of-the-art manufacturing facility at Doddaballapur, Karnataka spread across two units. In 2014, Ajax Fiori inaugurated its new manufacturing facility in Gauribidnur, Karnataka; spread over 20 acres for manufacturing Batching Plants. This plant will be dedicated to cater Batching Plant needs of its customer & currently the plant has a production capacity of 300 Plants / Year.

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Mr. Shalabh Chaturvedi Head Marketing

CASE INDIA

Time bound projects need reliable machines and CASE just fits their requirements in every possible ways. There are two variants available in CASE Motor Graders. Listed Below are the Specifications. CASE 845 B

CASE 865 B

Engine

FPT

Gross Power (Variable HP)

150 -173 HP

193-205-220 HP

Operating Weight

14605 Kgs

15330 Kgs

Transmission

Standard Moldboard Length

12 FEET

13 FEET

Operator Cabin

Closed (optional Air Conditioning)

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raders 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. CASE reached the milestone of selling 100th motor grader long back in December 2016 and ever since there is no looking back. Time bound projects need reliable machines and CASE just fits their requirements in every possible ways. • Maximum productivity CASE 845 B with unique ‘Multiradius moldboard design’ that provides mixing effect that does not only push the material on ground but also rolls it, along with net 150 HP gives a unique mix of power and fuel efficiency. CASE Grader also equipped with hydraulic pitch control feature which helps operator to control moldboard pitch adjustment from cabin itself hence high productivity as well as operator comfort. • 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 845 B grader is equipped with 150 -173 HP FPT engine with 6.7-liter engine with dual horsepower to match the power requirements of various applications and deliver optimum fuel

•

|| DECEMBER 2017 ||

efficiency. CASE Grader is having Powershift Transmission with torque converter and lock-up system and multi Curvature Mouldboard which reduces the resistance coming on the Engine and hence reduces the fuel consumption. Operator Comfort And Productivity - This spacious closed HVAC (air conditioning + Heating) cab has designed to offer better operator comfort. The large size glazed windows provide outstanding all-round visibility, it improves air ventilation to the operator and it makes easy communication to the back of the machine. All the controls have been specially positioned to offer easy access and faster control. There is a close cabin which has a large buddy seat along with storage compartments, mobile charger, document holder, bottle holder and radio. Ease of maintenance- CASE 845 B equipped with single pic engine hood 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. Reliability - The robust moldboard A frame design and heavy duty externally driven circle and double saddle lock increases the reliability as well as precision of the moldboard.

CONSTRUCTION MIR ROR

Guest Article

Supreme’s New Age Drainage Products - Nu Drain & SAFEGARD (Readymade Plastic Septic Tanks). Supreme Industries, the pioneer and the leader of Indian Plastic Industry has added one more innovative product range to its kitty with SAFEGARD readymade septic tanks. This line complements the existing portfolio of ‘Nu- Drain’ underground drainage system comprising of Pipes, Fittings, Readymade inspection chambers and Manholes. With addition of SAFEGARD, Supreme offers a complete ensemble of advanced and ultra modern sanitation solution. SAFEGARD Septic Tanks are designed to provide a better substitute to existing conventional brick and mortar septic tanks. The conventional septic tanks are associated with multiple problems of concrete corrosion (effects of H2S) and leakages thereby creating pollution of soil and ground water. The life span is short and uncertain. On the other hand Supreme SAFEGARD septic tanks are free from above problems and has many outstanding features viza)

Robust design with great strength

Simple and quick installation

Complete corrosion & chemical resistance

Hygienic and safe with 100% water tightness ensuring complete leakage protection

Free from infiltration and ex-filtration and hence guarantees prevention of soil and ground water pollution.

Economical with minimal maintenance

Long life: expected to last more than 50 years under ideal conditions i.e. life time of the building.

Safe against anti –flotation.

No root penetration, eco-friendly and may be classified as green product.

and seepage of water and prevents soil and water pollution and ensures high standards of hygiene. The choice of the raw material, the structural accuracy and the strict quality control imparts high degree of reliability. As a result ‘Nu-Drain’ is approved by MCGM and emerges as a superior substitute to conventional products. The other benefits of Nu-drain are • Minimum excavation cost • Availability of different flow profile designs as per site requirements • Minimal maintenance • Optimum functional qualities and good hydraulic properties

j) Confirms to various National /International standards, building code and regulations. k)

Available in various capacities

‘Nu-drain’ underground drainage and sewerage system offers numerous advantages like great flexibility, perfect hydraulic properties, great strength and durability to meet site loading requirements. Being 100 % watertight, it is free from ingress

• Longer life and overall economy SAFEGARD septic tanks together with ‘Nu-drain’ underground drainage system provide multiple benefits over traditional products and have the potential to change the face of sanitation across the country.

We have a tendency to come through the best levels in client satisfaction We at Sun Roofing Company aim in producing a varied vary of recent steel product mistreatment price effective production techniques. Our team of consultants can forever make sure that we have a tendency to come through the best levels in client satisfaction. Self Supported Roofing M/s Sun Roofirig Company Roofing, is meant and deals to suit many different Building Codes from all around the world. To carry out a conniving analysis of Self Supported Roofing ,s, special vogue & Engineering code is used. Our Self Supported Roofing System could also be a shocking success once it involves roofing for wider spans. endless roof of up to thirty six meters at a stretch are often simply and really effectively lined with M/s Sun Roofing Company Roofing I. 9. We’ve a sound infrastructure unfold across a sprawling house inside the economic territorial dominion of the geographic area of Mumbai, Maharashtra, India. Our product line caters to a spread of industries like Industrial Warehouses, Railways, Sugar and Paper Mills, Automobile Industry, Chemical and chemical Plants, etc. Our organization is spearheaded by Mr. Sanjay Gupta and Mr. Abhishek Kashikar. Mr. Nitin Bhardwaj heads the Salesforce of the organistion.Their acute businessacumen and exhaustive technical information have propelled the tremendous growth of the organization. The other enthusiastic and eager team

CONSTRUCTION MIR ROR

members put in their all efforts to help grow the organisation leaps and bounds. We offer services like Erection of PEB Structure, Installation of Sheets, Fabrication and Relocation of Structures without any kind of damages. We have our unit spread over an area of 70, 000 Sq.Ft with three in-house cranes 10 tons — 2 EOT & twenty tons one EOT. We Sun Roofing Company are authorized Manufacturer for colour coated roofing sheets of Kamdhenu Limited. Kamdhenu Limited is regarded as one of the prime companies in the field of TMT and Structure, the fame which they are carry very lucratively in the roofing sheets segment by the name “Kamdhenu Colourmax” roofing sheets,as well.

PEB Buldings

We also are listed as a prime distributor of JSW. JSW is the hot cake in the metal industry. They are the name every one wants to get associated with. One of the finest organization when it comes to the quality of their coils and sheets. We also are the distributors for Onduline. Onduline is a company from France. They fall in the category of premium sheets which are designed specially for Bunglows and resorts and other similar places. It is a premium product much in demand with a very bright and wide usage.

|| DECEMBER 2017 ||

Hi-Rib Profile Design

||www.constructionmirror.com/net||

|| DECEMBER 2017 ||

CONSTRUCTION MIR ROR

Guest Article

Gandhi 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.

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

Efficient loading & unloading a) Radius Lip Dock Levelers Radius Lip Dock Levelers allow the 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 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.

CONSTRUCTION MIR ROR

|| DECEMBER 2017 ||

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.

||www.constructionmirror.com/net||

Making a Mark When it comes to demolition work, Malik Trading & Demolition is a name to reckon with. Known as an Icon of Demolition works in Hyderabad, this company was established in 1996 under the able guidance of Gulam Samdhani Farooqui, Founder and Managing Director of Malik Trading & Demolition. He details on his company’s product portfolio and way forward...

alik Trading & Demolition is a leading name in Demolition field of work in India level. We are specialised in all kinds of complete demolition and alteration of civil structures, Mechanical structures & Equipments removing and fixing in running plants without disturbing existing structure and dismantling service with world-class advanced technology & equipment. We have presence over PAN India and Head Office at Erragadda, Hyderabad. One of the reasons behind our success is we consider Work Safety as a priority than production, and hence we never faced any fatal accident/incidents at our any site. We are a trend setter in the field of Demolition works in all civil structures like residential, commercial, industrial buildings & production plants with a leading tag in demolition works, we also have a very good presence in earthmoving works since so far and are proud to say that we are now the largest construction chemicals distributors and applicators of BASF chemicals and other topmost construction chemicals. We also provide rental services for all types and range of construction equipment.

Following are our fields of specialization: • • • • • • •

Demolition Diamond cutting Earth movers (Excavation & Backfilling) Core cutting, anchoring and grouting Mechanical structure dismantling Prefabricated & precast structures dismantling Plants Equipments & machineries removing and fixing • Construction equipment rentals • Construction Chemical distributors and applicators • Sanitary materials distribution & applicators

Malik Demolition contractors are capable of finishing each and every type of demolition / dismantling / alteration in civil alterations within the time limits. We have all hi-tech tools and equipment available in dismantling/demolition industry. Demolition works mainly can be divided in the following categories that all we do: Economical Demolition: It includes all the works to be accomplished by manual skilled workers and hydraulic breakers. It is the faster and economical method of demolition. This method needs more working space that’s why used only in open working space sites Diamond cutting: This technology is proven as the safest and most reliable method of demolition. This also provides the alteration needs in any structure whether residential, commercial or industrial.

Diamond cutting tools are mainly: • Diamond wire saw cutting • Diamond wall saw cutting • Diamond Floor saw cutting

It is to be noted here that this is our strength that we have all diamond cutting tools. We have a broad list of own equipment. • Silent Demolition • Controlled Blasting Demolition

Excavation and backfilling

We are specialist for excavation in Hard rocks. We have all the rarest technologies of rock excavation. Rock excavation techniques in use at various sites currently: • Rock breaker technology • Manual chiselling and breaking • Diamond wire saw cutting in rock • • Compressed air pressure burning cutting of rock. (This technology is capable of cutting any desired shape in any toughest and hardest rock.) • Chemical breaking of rocks • Blasting • Controlled Blasting • Open blasting

Construction equipment rentals

Malik Trading also provides hire and rental services for all kinds and all levels of construction equipment. We have a wide range of our own equipment and rental services are provided across all over India.

Demolition ||www.constructionmirror.com/net||

|| DECEMBER 2017 ||

CONSTRUCTION MIR ROR

Tenders 26220257

Ref. Number :

26040797

Ref. Number :

26413647

Requirement :

Construction of mohmela sirpur barrage and all appurtenant works including operation and maintenance for two yearrs on mahnadi river in tahsilarang.

Requirement :

Six-laning of Nashik Phata to Khed Section (km 12/190 to km 42/000) of NH-60 (Old NH-50) in the state of Maharashtra on Hybrid Annuity Mode.

Tender Estimated Cost :

INR 1,762,255,000

Widening and Strengthening of existing road corridor connecting Mogra on SH-13 in Hooghly District with Barajaguli on NH-34 in Nadia District via Triveni, Boropara, and Kapa to 4/6 lane divided carriageway including Grade-separated corridor

Document Fees :

INR 110,000

INR 500,000

INR 101,400,000

26/12/2017

Document Fees :

EMD :

Closing Date :

Chhattisgarh - India

EMD :

INR 146,000,000

Tender Estimated Cost :

INR 10,137,800,000

Location :

Tender Estimated Cost :

INR 14,600,000,000

Closing Date :

15/01/2018

Closing Date :

9/01/2018

Location :

Maharashtra - India

Document Sale To :

09/01/2018

Location :

West Bengal - India

Ref. Number :

25992597

Requirement :

Construction of Roadbed, Bridges, Supply Of Ballast, Installation Of Track (Excluding Supply Of Rails, And Track Sleepers), Electrical (General Electrification), Provision of OHE, Signalling And Telecommunication Works In Connection With 3rd Line Between Garhwa Road (Including) Km 319.04 And Tori (Including) Km 185.30 (Total 133.74 Km) in Division.

Document Fees :

INR 20,000

EMD :

INR 40,000,000

Tender Estimated Cost :

INR 9,931,800,000

Closing Date :

28/12/2017

Document Sale To :

28/12/2017

Location :

Jharkhand - India

Ref. Number :

26445989

Requirement :

Construction Of Roadbed, Major And Minor Bridges, Rubs, Robs, Track Linking (Excluding Supply Of Rails And Main Line Sleepers) And General Electrical Works In Connection With New BG Line From Neora (Including) To Jatdumri (Excluding)(18.4 Km) On Danapur Division Of East Central Railway In Bihar, India.

Document Fees :

INR 20,000

EMD :

INR 20,000,000

Tender Estimated Cost :

INR 1,806,400,000

Closing Date :

19/01/2018 19/01/2018 Bihar - India

Ref. Number :

26332698

Requirement :

Surveying Planning designing constructing and obtaining necessary approvals for construction of EWS LIG MIG HIG Ts on open plot A and B on S No 29P CTS No 50 Pahadi Goregaon Goregaon W on Turnkey basis

Ref. Number :

25378890

Requirement :

RFP for Projects comprising of 9 National Highway stretches (Bundle 1) on Toll Operate Transfer Mode.

Document Fees :

INR 630,000

EMD :

INR 625,800,000 INR 62,580,000,000

Document Fees :

INR 11,200

EMD :

INR 38,435,225

Tender Estimated Cost :

INR 7,687,045,063

Closing Date :

22/02/2018

Document Sale To :

22/02/2018

Tender Estimated Cost :

Location :

Maharashtra - India

Closing Date :

9/01/2018

Location :

Delhi - India

Ref. Number :

26463735

Requirement :

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

Document Fees :

INR 66,478,000

EMD :

INR 6,547,738,930

Tender Estimated Cost :

INR 7,687,045,063

Closing Date :

8/01/2018

Location :

Maharashtra - India

Ref. Number :

26413574

Requirement :

Construction of flyover in Sakoli on NH-53 (old NH-06) in the State of Maharashtra on EPC mode

Ref. Number :

26389056

Requirement :

Construction of 8 lane Dwarka Expressway (NH-248 BB) Package IV from Rail Over Bridge (ROB) to NH-8-SPR Intersection, from km 19.700 to km 27.600 in the State of Haryana on EPC Mode

Document Fees :

INR 130,000

EMD :

INR 121,400,000

Tender Estimated Cost :

INR 12,136,600,000

Closing Date :

15/01/2018

Location :

Haryana - India

Ref. Number :

26234446

Requirement :

Construction of com posit dam, pressurized irrigation system according detailed scope of work. (Scanned Image â&#x20AC;&#x201C; Hindi Tender)

Document Fees :

INR 30,000

EMD :

INR 28,900,000

Tender Estimated Cost :

INR 2,892,100,000

Closing Date :

15/01/2018

Closing Date :

28/12/2017

Document Sale To :

Location :

Maharashtra - India

Location :

Madhya Pradesh - India

Location :

CONSTRUCTION MIR ROR

Tender Estimated Cost :

|| DECEMBER 2017 ||

INR 1,586,102,000

||www.constructionmirror.com/net||

Projects |State Government | Madhya Pradesh - India | PID: 170568| A dam will be constructed on Dudhi river in Madhya Pradesh

& Co to facilitate running of heavier axle load

density traffic areas in the State involving a cost of Rs 300 crore during the past 13 years, officials informed

| Updated on: 27 - Nov - 2017

The project will entail an investment of Rs 1,400 crore The proposed dam will irrigate 1.50 lakh acre and will benefit the farmers of Hoshangabad and Narsinghpur districts. The irrigation facility will carry a pipeline for maximum use of water from the dam | Updated on: 21 - Nov - 2017 | |State Government | Chhattisgarh - India | PID: 170648 Value:Rs. 176.23Crore | Bids have been invited by Water Resources Department, Chhattisgarh for construction of Mohmela Sirpur barrage & all appurtenant work in Chhattisgarh The scope of work involves construction of Mohmela Sirpur barrage & all appurtenant work, including operation & maintenance for two years on Mahanadi river in Arang taluka of Raipur district in Chhattisgarh The project will entail an investment of Rs 176.23 crore | Updated on: 24 - Nov - 2017| |State Government | Uttar Pradesh - India | PID: 170733 | Almost two decades after the project was sanctioned, there’s some clarity on when a new bridge being built adjacent to Loha Pul in old Delhi may be completed: the railways has set a deadline of July 2019 The new bridge will pass through the same opening of Salimgarh Fort as the old one, with the Archaelogical Survey of India giving a go-ahead only on the condition that no additional opening will be created at the heritage site While the project was sanctioned in 1997-98, work was stalled due to lack of approval from ASI. Several modifications were made to the original plan, with ASI finally granting approval after railways submitted that the approach to the fort would be the same as before The old structure has weakened considerably over time, prompting a speed restriction of 30 km/hour. But “the new bridge will have no such limitation”, R N Singh, divisional railway manager, Delhi division, told Singh said the foundation work of the new bridge had already been completed with the piers laid out, whereas the steel structure was being built at a special workshop in Pragati Maidan. “The new bridge is likely to be commissioned by July 2019 and will cost around Rs 137 crore. An NOC has been obtained from the National Monument Authority,” Singh said Even though rail traffic will shift to the new bridge once its ready, the old one will continue to cater to road traffic. While railways plans to preserve the old bridge as a heritage structure, it may be handed over to the state government for maintenance and operation of road traffic Loha Pul was constructed in 1866 by the British government as a single line bridge initially. It was converted into double line in 1913, with a road deck provided to allow movement of traffic. Its steel girders were last replaced in 1933-34 by British company Braithwait

|State Government | Uttar Pradesh - India | PID: 170733 |Almost two decades after the project was sanctioned, there’s some clarity on when a new bridge being built adjacent to Loha Pul in old Delhi may be completed: the railways has set a deadline of July 2019

Munat informed that currently, five key Railway over and under bridges are under construction at a cost of Rs 222 crores in Raipur, Bilaspur and Janjgir-Champa districts | Updated on: 27 - Nov - 2017|

The new bridge will pass through the same opening of Salimgarh Fort as the old one, with the Archaelogical Survey of India giving a go-ahead only on the condition that no additional opening will be created at the heritage site

State Government | Haryana - India | PID: 170847 Value:Rs. 1213.66 Crore | National Highways Authority of India (NHAI) has invited bids for construction of eight lane Dwarka Expressway (NH-248 BB) Package–IV in Haryana

While the project was sanctioned in 1997-98, work was stalled due to lack of approval from ASI. Several modifications were made to the original plan, with ASI finally granting approval after railways submitted that the approach to the fort would be the same as before

The scope of work includes construction of eight lane in Dwarka Expressway (NH-248 BB) from rail over bridge (ROB) till end point 40 km NH-8-SPR intersection near Kherki Daula of 8.76 km length, from 19.700 km to 28.460 km on EPC mode

The old structure has weakened considerably over time, prompting a speed restriction of 30 km/hour. But “the new bridge will have no such limitation”, R N Singh, divisional railway manager, Delhi division, told

The estimated value of the project is Rs 1,213.66 crore. The project is to be completed in 24 months

Singh said the foundation work of the new bridge had already been completed with the piers laid out, whereas the steel structure was being built at a special workshop in Pragati Maidan. “The new bridge is likely to be commissioned by July 2019 and will cost around Rs 137 crore. An NOC has been obtained from the National Monument Authority,” Singh said Even though rail traffic will shift to the new bridge once its ready, the old one will continue to cater to road traffic. While railways plans to preserve the old bridge as a heritage structure, it may be handed over to the state government for maintenance and operation of road traffic Loha Pul was constructed in 1866 by the British government as a single line bridge initially. It was converted into double line in 1913, with a road deck provided to allow movement of traffic. Its steel girders were last replaced in 1933-34 by British company Braithwait & Co to facilitate running of heavier axle load | Updated on: 27 - Nov - 2017| |Corporations/ Associations/ Others | Chhattisgarh - India | PID: 170720 | The State Government will get done a series of survey, investigation, study and preparation of Detailed Project Reports (DPRs) for construction of long span bridges within the jurisdiction of Chhattisgarh Road Development Corporation (CGRDC), officials informed Public Works Department (PWD) Minister Rajesh Munat said that Rs 53 crore had been spent in constructing 16 important bridges in 2016-17 Many crucial big and small bridges had been built providing an easy access to the remote areas of the State, he said The PWD has also built 18 Railway over and under bridges in high

| Updated on: 30 - Nov - 2017 |Private Sector | Rajasthan - India | PID: 170957| Sadbhav Infrastructure Project’s wholly-owned subsidiary, Sadbhav Udaipur Highway (SUDHPL) has received the appointed date from National Highways Authority of India (NHAI) The company has received the appointed date in accordance with the concession agreement dated 6 June2017 with NHAI NHAI has declared 30 November 2017 as the appointed date for six lane of greenfield proposed Udaipur bypass [connection between NH-76 at existing 118.500 km at Debrito NH-8 287.400 km at Kaya village (Udaipur bypass length 23.883 km)] on hybrid annuity mode (HAM), PackageIV, under NHDP Phase-V in Rajasthan | Updated on: 04 - Dec - 2017| |State Government | Orissa - India | PID: 170955| National Highways Authority of India (NHAI) may begin expansion work on the NH-143 from Barkote to Biramitrapur in Odisha from 1 January 2018 Nearly 60 percent land for the project has been acquired. However, at least 90 percent land has to be available to begin the work NHAI has asked its higher officials to allow initial construction under the National Highway Act, pending the acquisition. Also, forest clearance is required in nearly five km area at various patches GKC Projects of Andhra Pradesh has been awarded the contract. The total project cost is Rs 2,500 crore The entire project stretching 126 km from Biramitrapur to Barkot has been divided into three phases -- Biramitrapur-Rourkela of 30 km, Rourkela-Rajaminda of 46 km, and Rajamunda-Barkot of 50 km The foundation stone for the project was laid in June 2016 | Updated on: 04 - Dec - 2017|

Get access to 70 Lakh+ New Government & Private Tenders Annualy only on www.TenderTiger.com ProcureTiger helps buyers in automating his purchase & sales using tools like eRFQ, eTendering, Reverse Auction, Forward Auction, eAuction, Indent Management, Contract Management etc. Looking for Tenders Services? For more details please contact to +91-9825079334 or mail us on sales@TenderTiger.com OR register at www.TenderTiger.com

||www.constructionmirror.com/net||

|| DECEMBER 2017 ||

CONSTRUCTION MIR ROR

Aesha Conveyors and Crushing Equipment .............. 59

KYB-Conmat Pvt. Ltd. ...................................................... 21

Aggcon Equipments International Pvt. Ltd. ............... 49

JK Tyre & Industries Ltd. ................................................ BC

Ajax Fiori Engineering (I) Pvt. Ltd. ............................... IBC Jindal Aluminium Limited ............................................... 23 Ammann Apollo .................................................................. 05,11 Liugong India ...................................................................... 19 Balkrishna Industries Ltd. ................................................ 17

Layher Scaffolding Systems Pvt. Ltd. ........................... 87

Bhushan Industries ............................................................ 43

Mahindra Construction Equipment ............................. 01

Case Construction .............................................................

Manufacturers Meet-Africa ............................................ 98

Conquest Project Pvt. Ltd. .............................................. 81

Rishit Bunk Makers Pvt. Ltd. ......................................... 79

Constro 2018 ...................................................................... 39

R.K Industries ..................................................................... 77

ConCat India ....................................................................... 69

Sapna Construction Company ....................................... 69

Escorts Construction Equipment .................................. 15

Sun Roofing Company ..................................................... 85

Excon India 2017.................................................................. 41

Schwing Stetter ............................................................... IFC

Gandhi Automations Pvt. Ltd. ........................................ 03

Volvo Group India Pvt. Ltd. ........................................... 07

CONSTRUCTION MIR ROR

|| DECEMBER 2017 ||

||www.constructionmirror.com/net||

EVENT DIARY December 12-16 2017

August 29-31 2018

April 19-21 2018

BIEC, Bangaluru, India

Bombay Exhibition Center, Mumbai, India

Pragati Maidan New Delhi

Investments in Infrastructure is key to India’s sustained Growth and this has been the guiding principle behind all policy initiatives / interventions by the Government of India. The Planning Commission foresees India’s Infrastructure spending to be in the range of US $ 1 Trillion for the 12th plan ( 2012-17).

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.

HAND TOOLS & FASTENER EXPO series carries forward the theme of ‘TOOLS FOR INDUSTRY’ from its previous successful edition, and it focus on the need for quality, special and high-end Hand Tools, Power Tools, Fasteners, and Specilty Tools

www.excon.in

December 18-20 2017

White House Event Place L.B Nagar, Hyderabad www.internationalliftexpo.com

The International Lift expo 2017 provides an ideal platform to all the stakeholders of lift and escalator industry. The International Lift Expo - 2017 intends to bring all national as well international players to the expo and to showcase all types of escalators, elevators, components and accessories.

January 18 - 21 2018 BIEC, Bangaluru, India www.constroindia.org

It is estimated in the coming future, India will spend more than a, billion dollars upgrading Building constructions, housing and infrastructure developments, according to a new report.

22nd - 23rd February 2018 Casablanca - Morocco www.traiconevents.com

We also make leadership development accessible to those who aspire to have a better future by bridging traditional management with global values. In collaboration with various organizations, we forge new links to build an eco-system of technological and environmental leadership.

||www.constructionmirror.com/net||

www.mmmm-expo.com

www.iihtexpo.com

June 07-09 2018

October 15-17 2018

Chennai Trade Center, Chennai

Mombay Exhibition Center, Mumbai

www.internationalliftexpo.com

www.ifat-india.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.

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.

June 21-23 2018

November 21-22 2018

Pragati Maidan, New Delhi

HO CHI MINH CITY, VIETNAM

www.tyrexpoindia.com

www.concretevietnam.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.

THE CONCRETE EXPO VIETNAM is the only specialized Concrete event in Vietnam that brings together an international congregation of both upstream and downstream Cement & Concrete companies and also its supporting industries gathered in the Capital City of Hanoi, Vietnam to showcase the latest developments in the Cement& Concrete industry.

August 29 - 31 2018

December 2018

Pragati Maidan, New Delhi, India.

Delhi

www.mmmm-expo.com

MMMM 2018 (Minerals, Metals, Metallurgy and Materials) is the 12th Edition in the series and is scheduled on 29 - 31 August, 2018 at Pragati Maidan, New Delhi, India.

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

|| DECEMBER 2017 ||

CONSTRUCTION MIR ROR

|| DECEMBER 2017 ||

||www.constructionmirror.com/net||

ROCKnROLL

PRESENTING 23.1-26 VRC 18. ROCK SOLID PARTNER

FOR YOUR

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