Construction Week India February 2018

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CONSTRUCTIONWEEK NEWS , ANALY SI S, PROJ E CTS & B U SI NE SS I NT E L L I G E N C E FO R T H E C O N S T R U CT I O N I N DU S T R Y

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Total number of pages 66 VOLUME 9 • ISSUE 6 FEBRUARY 2018 • MUMBAI • `50

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Bijay Agarwal, MD, Salarpuria Sattva, has built an empire through studied means and believes quality and on-time delivery is the key to success.

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CONTENTS 28

40

10 NEWS Louis Berger bags Versova-Bandra Sea Link project management contract.

28 ROADS & HIGHWAYS

Much has been written about the pace of construction of roads & highways, but what exactly is being done to make them last longer?

40 TOWER CRANES With strict timelines and operational regulations to be met by developers, tower crane vendors are stretching themselves to meet specific demands in the face of rapid urbanisation.

20 PRUDENT CAPITALIST

Bijay Agarwal, MD, Salarpuria Sattva, has built an empire through studied means and believes quality and on-time delivery is the key to success.

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50 STEEL

Impetus caused by renewed demand due to construction activities and a focus on innovation are helping in the steady recovery of the steel industry.

EDITOR’S NOTE

CONSTRUCTIONWEEK VOLUME 9 • ISSUE 06 • FEBRUARY 2018

making the cut Jayashree Mendes

Mitalee Kurdekar

T

he whirlwind construction activities across the country — be it real estate, infrastructure, metro rail, airports — are definitely contributing to India’s development. The government is most proactive and along with them are the public and private sector who are actively bidding for projects, large or small. The pace of development may be rapid, but what India also needs to keep an eye on is the quality of development. If Make in India is to be effective, and if the country wants international investors to look at her with renewed interest, then all development must have the quality hallmark. Of course, we have leading examples of engineering marvels and, going by what EPC companies have to say, India has been leading in constructing shining examples of edifices at home and abroad.

Our cover story this month and also the feature on Roads & Highways cannot emphasise enough on quality of development. While Salarpuria Sattva has diligently weaved in quality in all its projects and ensured timely completion, the Group, perhaps, is one of the rare developers who has been given an A-Stable rating from Crisil.

In terms of roads & highways, contractors and equipment makers tell us that they do their best in working within the allotted budget and have the best methodology and equipment to build India’s infrastructure.

However, the sheer lack of focus on using advanced technology and continuing to adhere to L1 puts them on the back foot.

Too many advisors have brought this to the attention of the government, but little has been done and paid heed to. If the country’s authorities put their mind to it, and give word to thought, then future generations will find no desire to compare Indian infrastructure with foreign shores.

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NEWS

LOUIS BERGER BAGS VERSOVA-BANDRA SEA LINK PROJECT MANAGEMENT CONTRACT Louis Berger will provide project management services for the Versova-Bandra Sea Link to be constructed in Mumbai, India.

L

will require efficient delivery of topquality, highly responsive services, and our intent is to exceed the MSRDC’s expectations in every respect.”

The VBSL, a northward extension of the existing Bandra-Worli Sea Link running along the western coast of the island of Mumbai, will be an eight-lane highway, approximately 10 kilometers in length, connecting the western suburbs of Versova and Bandra. The main sea link will include a cable-stayed bridge section and a balanced-cantilever section for navigational purposes. It will also include two intermediate connectors, which will connect the sea link to the mainland and serve areas between Versova and Bandra, including Juhu and Koliwada. The sea link will help reduce traffic congestion in Mumbai.

The project is slated for completion by late 2021.

ouis Berger has been awarded a Rs 109 crore contract by the Maharashtra State Road Development Corporation (MSRDC) to provide project management services for the VersovaBandra Sea Link (VBSL). Construction is estimated to cost Rs 6,000 crore and will

take 54 months to complete.

“We are honored to play a major role in one of the largest infrastructure projects — not just in Mumbai, but in India,” said Kshitish Nadgauda, Louis Berger’s senior VP and MD for Asia. “Our responsibilities on this significant project

CREDAI UNVEILS ITS DUBAI CHAPTER AT THE INDIAN PROPERTY SHOW

PIRAMAL REALTY ANNOUNCES DEVELOPMENT AGREEMENT WITH OMKAR REALTORS

The Confederation of Real Estate Developers Association of India (CREDAI) announced its Dubai chapter at the Indian Property show, the first international exhibition of Indian properties by CREDAI in Dubai. The announcement augments their reach on the global map. The realty body has also established a consumer redressal grievance forum to address the difficulties faced by NRI homebuyers settled in the region, thereby extending its commitment towards safeguarding the best interests of consumers.

CREDAI represents over 11,940 members in India.

iramal Realty, the real estate development arm of Piramal Group, announced that it has entered into a Development Agreement (DA) with Omkar Realtors for a marquee project in Mahalakshmi. Piramal Realty will furnish a deposit of Rs 400 crore, and will have a 60% revenue share in this project.

With over 2 million sq-ft of development spread across ~12 acres, this will be South Mumbai’s largest premium residential project. As per the agreement, Piramal Realty will lead design, development, construction, sales and marketing.

10 CONSTRUCTION WEEK FEBRUARY 2018

P

The development will comprise of high-rise towers, which will have spectacular views of the 225 acre Mahalakshmi Race Course and the Arabian Sea. Piramal Realty intends to invest Rs 2600 crore in this development.

Piramal Realty has appointed CallisonRTKL, a global architecture, planning and design firm, to lead the design architecture for this project.

CallisonRTKL is best known for its key projects that include Bahrain City Centre in Manama, Chadstone Shopping Centre in Melbourne, Grand Gateway 66 in Shanghai, Lenovo Campus HQ in Beijing, and many more.

NEWS

ADANI ENNORE CONTAINER TERMINAL COMMENCES OPERATIONS AT KAMARAJAR PORT The terminal capacity in the first phase involves 0.8 mn TEUs.

A

dani Ennore Container Terminal, part of the Adani Ports and Special Economic Zone (APSEZ), announced that the Adani Ennore Container Terminal at Kamarajar Port has commenced operations with berthing of the vessel MV SSL Kochi. The weekly service will operate with four vessels, three from the first partner, Shreyas Shipping & Logistics, and one from the Shipping Corporation of India, the other partner in the weekly service. The port rotation of the service would cover Ennore – Kattupalli – Tuticorin – Kochi – Jebel Ali – Mundra – Krishnapatnam – Ennore.

The terminal capacity in the first phase in-

volves 0.8 mn TEUs with quay length of 400m, 15m draft, 4,000 ground slots, four super post panama cranes, 12 e-RTGs and on-dock rail connectivity.

An inaugural function was organised at the terminal, which was attended by the internal and external stakeholders such as customers comprising of representatives from shipping lines, NVOCCs, forwarders and CBAs. Speaking about the commencement of operations, Captain Jeyaraj, business unit head, Adani Ennore Container Terminal, stated, “In the near future, we also intend to augment the present capacity of the facility from 0.8 mn TEUs to 1.2 mn TEUs.”

TRIMBLE LAUNCHES RAILWAY SOLUTIONS PORTFOLIO IN INDIA

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rimble Solutions India, a subsidiary of US-based Trimble Inc., has launched its global Railway Solutions portfolio in India. The Trimble Railways portfolio is industry-leading and covers the end-to-end railways lifecycle, from planning through construction, maintenance and operations to safety. The company has launched products like Trimble Rail Asset Lifecycle Management, SurfView, GEDO CE and Beena Vision, targeted at Indian railways and urban metro rail projects in over 20 cities across India.

12 CONSTRUCTION WEEK FEBRUARY 2018

Tomas Larsson, general manager for Trimble Rail, said, “Our cutting-edge tech-enabled products can play a meaningful role in the ongoing transformation of Indian railways, helping the organisation achieve its key goals of launching high-speed trains, enhancing passenger safety and operational efficiency. Further, as India progressively adopts metro rail networks for urban transportation, we are ready with solutions that can help plan, design and construct these projects faster and within costs, and operate them for maximum efficiency and safety.”

UNDER 60 SECONDS

A

ltico Capital, the non-banking finance company promoted by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners, recently deployed Rs 1,250 crore across five deals in Hyderabad and Pune.

Altico invested Rs 500 crore across two deals with Hyderabad-based Phoenix group for the construction and development of IT SEZ projects, Rs 375 crore with Marvel group in Pune for a bouquet of projects, Rs 240 crore with Pharande group for the development of a township project, and Rs 130 crore with Mumbaibased Jatia group for their residential project.

I

n a massive infrastructure boost to the state of Gujarat, the Indian mass-transit operator Metro Link Express for Gandhinagar and Ahmedabad (MEGA) Company has awarded an order of approximately Rs 579 crore to the consortium of Siemens India and Siemens AG, Germany, for electrification of the 39.2kms Metro Express Link in Ahmedabad.

The line, currently under construction, will run in Ahmedabad city in two corridors.

COMMENT

THE VALUE OF DIGITISATION

Jay Kinra explains the effect that digitisation can have on cutting rising costs for developers.

The author is partner, Hokuapps.

T

he real estate sector is just like any other market – attempting to maximise profits, while minimising its costs. Developers are keen to adopt the digital transition in their businesses. Technology is emerging as an efficient tool, aiding in bringing down costs for firms in each and every sphere of the economy. It also serves as an enabler in bringing a wide range of operations under an umbrella, making tasks time-efficient and at ease. Of the many perks of technology, cutting the rate of increasing overheads emerges as the most attractive one to all developers. There are many ways in which embracing technology will reduce the burden of overhead costs for real estate developers.

consuming task; this is where automated communication takes over. Creation of a database and a systematic updating technology serves as a proactive communication setup, reducing the task of mundane data entry which is time-consuming.

Automated processes also lead to better client relations, as a large share of clients can be kept in the loop about the on-going and concerned projects.

Centralising all business processes: Software developers are constantly developing tools and mechanisms to bring at ease the vast range of operations in each and every sector. Back-end setups handle every activity from input-output, consumer base, finances, etc. In such a manner, technology is substituting middle men with computers and devices. A single tool can help with financials, taxation, payroll as well as invoice and payments. This results in making work accountable and efficient in an organisation. Instead of having numerous platforms, back-end operations bring together every aspect of the business under one roof.

Efficient utilisation of resources: Automation reduces the middleman and makes tasks quicker and easier. Resources at work are able to focus on the actual task instead of other mundane activities. The overall effect of this will increase productivity for the real estate developer. This productivity and efficiency achieved because of technology will eventually lead to increasing the productivity of real estate developers and reducing their costs.

It is impossible to ignore the impact of technology in any sector. The benefits acquired from using technology have increased productivity in the firms, along with sustainability and profitability. The advancement of technology not only omits the issue of human error, but also fastens every task. Sharing of data across the individuals makes it a smaller and a closer virtual world. By reducing the amount of time spent on unnecessary tasks and increasing involvement from the clients, real estate developers can reduce their costs and carry out their business efficiently because of technology.

Automated communication to customers: Communication with customers is very important to retain their loyalty and also boost sales. It becomes difficult to maintain constant communication while handling other tasks. Physically calling customers and carrying follow-ups or updating about new deals in the market becomes a time-

14 CONSTRUCTION WEEK FEBRUARY 2018

Organising data: Data is involved from the very first step of the business to the end. Data from input-output to customer base, financials to decision-making. This data is likely to be mismanaged. Technology makes it easier for businesses to humanise data or handle data across various verticals, which was earlier prone to human error.

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Bijay Agarwal, MD, Salarpuria Sattva, has built an empire through studied means and believes quality and ontime delivery is the key to success.

BY JAYASHREE KINI MENDES

PHOTOGRAPH: BMAXIMAGE

PRUDENT CAPITALIST

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COVER STORY

I

f the chairman of MahaRERA, Gautam Chatterjee, were to meet Bijay Agarwal, MD of Salarpuria Sattva Group, there’s a strong chance that he would have held him up as a shining example to other developers. Ever since Chatterjee took over, he has often re-stated that developers need to maintain fiscal discipline (mainly) that will help them untarnish their reputation.

Agarwal needed no such advice. Ever since setting up the company in 1986, Agarwal has always been strongly inclined to resist the temptation of excessive debt for any of the numerous projects he has executed. He has succeeded most of the time. Speaking about the discipline it takes to run a real estate business, Agarwal says, “Coming from a simple small town background, we were taught the basic rule of money management: Live within your means. For that reason, I ensure that my debt is contained to a certain level and once the project is complete, it is paid off.”

Of course, there have been times when he has been compelled to approach the bank for a lump sum amount to fund a project, but Agarwal says with a hint of self satisfaction that he has never had the opportunity to restructure his debt ratio with a financial institution. Similarly, he safeguards the company’s and his own interest by conducting a financial health check every six months, which allows him to know just how ambitious he can get.

This is indeed a rare occurrence among developers and, perhaps, one of the main reasons why Agarwal, whose unwavering adherence to quality, has been given the ‘trusted’ tag among builders in the country. What is unique to him is that CRISIL - a global analytical company providing ratings, research and risk and policy advisory services - has given an ‘A - Stable’ rating to the company, and so also ICRA.

chances of making the cut were slim. By then, the entrepreneurial bug had well bitten Agarwal. Beginning with a small plot offering 20,000 sq-ft construction area, he quickly moved from project to project as and when opportunities came his way. The initial phases focussed more on a mix of commercial and residential developments and rapid bookings only encouraged him to scout for more land. Agarwal says, “Initially, my main concern was to keep the business going. As and when we acquired land, we worked out the math whether to build commercial or residential, going by gut feel and market trends. The actual focus for the group came in 1998-2000 when the IT boom hit Bangalore.”

Agarwal’s bigger boost, and one that became the talk of the town then, came when global companies were scouting to invest in residential and commercial properties. Customers such as Lucent Technologies, Ernst & Young, Big Bazaar, Intel, sought him out and he was happy to custom build commercial space for them. “Every commercial development had buyers who wanted space of 40,000 sq-ft to one lakh sq-ft.

We were growing faster than the market pace, and that also wiped out the any misgivings we may have had about the Bangalore market. By 2015-16, we had completed 110 projSalarpuria Sattva Aspire offers spacious apartments for those who aspire to the good life.

BUILD AND THEY WILL COME Over 30 years, Agarwal has completed more than 60 residential projects in Bangalore alone and has a presence in nine cities across the country. Just like Rome was not built in a day, Agarwal’s steady rise to a prominent Bangalorebased developer was slow and steady. Recounting his early days, Agarwal says, “My stint in real estate was pure chance.

Working in Kolkata, I was sent on a mission to Bangalore to take on a half-constructed project as the developer was under financial constraint. Little did I know what fate had in store for me. I completed the project and even made a small profit. There has been no looking back since.”

Back then, the Bangalore market was not playing ball.

Friends dissuaded him saying that when home-grown developers are seeing little buying appetite among buyers, his

CONSTRUCTION WEEK FEBRUARY 2018 21

COVER STORY

ects and that includes in cities such as Hyderabad, Kolkata, Coimbatore, Pune, Jaipur, Goa, among others.

Every passing year saw Salarpuria Sattva growing its footprint with ever larger projects. One of Agarwal’s most ambitious projects today is the $1 billion Knowledge City in Hi-Tech City in Hyderabad. The technologically advanced pre-LEED Gold Certified multi-purpose commercial building has a total development of over 7.5 million sq-ft with an array of amenities. Agarwal says, “Altogether we are working on 18 million sq-ft IT space in Hyderabad alone — Knowledge City, Cyber Park and Necklace Pride. Knowledge City was well accepted and some of our prominent clients are Novartis (1 million sq-ft), SAP, JP Morgan, HSBC, etc. We should complete the project by mid-2019. Recently we launched a mixed development project, Magnus, at Jubilee Hills. It is a premium gated community and we plan to develop 5.4 acres and construct four residential towers and one commercial tower.”

A model kitchen at Salarpuria Sattva Greenage.

buyers whose budget permits them to seek out apartments in the range of Rs 45 lakh to Rs 1-1.2 crore. This comes within the range of fit-outs we offer and makes the project viable.”

A SUIT FOR EVERYONE The group is aware that demand for apartThe taste from premium to mid-market projects ments priced at Rs 45 lakh and below is at a developed after Agarwal perceived the inclination peak. But Agarwal is unwilling to venture into million sq-ft under of the young brigade buyers. With seven ongoing uncharted territory, for now. He says, “We are construction. residential projects, Agarwal has turned his atconsidering such projects, but that will be in tention to building apartments in the mid-market the long term. Moreover, today we do not have and reasonably priced range. “We realised that the expertise to construct projects that will sit only affluent and well settled people can afford to buy apartcomfortably in that range. We would also like to run with ments that cost Rs 2 crore and above. And there are a host of the reputation we have earned of developing quality proj-

38

The $1 billion Knowledge City in Hyderabad offers state-of-the-art facilities and some unique amenities.

22 CONSTRUCTION WEEK FEBRUARY 2018

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The reception area at Salarpuria Sattva Senorita.

ects and offering hassle-free apartments.”

Agarwal, however, continues with his search for the right technology that will allow him to construct such affordable apartments and conserve quality as well.

But commercial development is what Agarwal is betting on now. “The commercial market has shown positive signs in two main cities, Bangalore and Hyderabad. Personally, I think that Bangalore is slowly losing its sheen in terms of returns on commercial space, mainly due to infrastructure bottlenecks. Hyderabad has shown a spike and what is working in its favour is its wholesome evolution.”

Agarwal’s bet on the Hyderabad market has paid off. After the political upheavals in the state settled down, he says that rent rates have soared 70%, while rates in Bangalore Salarpuria Sattva Senorita is perched close to offices around Sarjapur Main Road, Whitefield and Electronic City.

24 CONSTRUCTION WEEK FEBRUARY 2018

have jumped only by 50%. Interestingly, he adds, demand for commercial space has soared from the usual 10,000 sq-ft to 40,000 sq-ft to 1 lakh sq-ft and above. “Corporates are keenly looking at expanding and a developer must have the capacity to offer large spaces. For instance, Flipkart has picked up 500,000 sq-ft, IBM 1 million sq-ft, and we will soon supply 1.6 million sq-ft to Oracle, while Google has bought 1.3 million sq-ft in Hyderabad, says Agarwal.

He has indeed got the math right. Sales of residential aid cash inflow, and while commercial development may be risky, it offers good returns if you can find buyers. Maintaining a balance between residential and commercial has TRACK RECORD Completed: 24 million sq-ft.

Under construction: 38 million sq-ft.

Upcoming: 30 million sq-ft.

Number of under construction projects: 21 Number of projects completed: 122 Construction contractors: Shapoorji Pallonji, BLK & Sons Ltd, JMC, CCCL, RASK Constructions.

MEP consultants: Design Tree Engineering Consultants, Maple Consultants, SK Associates, Sterling consultants, AECOM. BRANDS USED: Plumbing: Hindware, Cera Flooring: Kajaria, Nitco, RAK, Varmora, William Grey, Indian Grey, Grey Fantastico and Colonial White Granite, Restile CP Fittings: Gebrit, Cera, American Standard, Toto, Jaquar Electricals: Atlantis, Philips Paints: Asian Paints, Alteck Cement: Ultratech, ACC, Zuari Steel: Jindal, JSW, SAIL

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The recreational area at Salarpuria Sattva Magnificia has large open spaces, efficient use of natural light, and a range of luxury amenities.

Salarpuria Sattva Luxuria stands out majestically with its iconic towers in fabulous glass finishes.

also helped in ensuring cash flow while continuing with the risk appetite with commercial projects. In Kolkata, Salarpuria Sattva has plans to construct a 79-storey tower with 56 plush residential units. He says, “The tower will be the tallest in Kolkata and we plan to offer 8,400 sq-ft apartments priced at Rs 22 crore. Similarly, we have entered the hospitality industry and hold a stake in Novotel and JW Marriott, both in Kolkata.” Expansions have become a way of life with Agarwal. His company has entered the Pune market with a commercial project and Coimbatore with the launch of new projects. He has recently completed a mall in Jaipur and a residential project in Goa. But Bangalore, Hyderabad and Kolkata continue to remain close to him in terms of devel-

26 CONSTRUCTION WEEK FEBRUARY 2018

opment. In all this, he is careful to look at cities that have infrastructure, a stable government and one that is prone to inviting investments, though he admits that the former is out of his ambit. “In terms of construction quality, we issue tenders and rope in contractors of repute to execute the projects. This way, projects are completed on time and the buyers do not feel any anguish. We also source products for the buildings (tiles, elevators, kitchen essentials) from global companies and prefer to directly source them from their global plants. Hence, costs remain under check and there’s a guarantee about the quality. We believe that some things should be left to the experts and this is also the reason we invite architects or designers from foreign shores to give that international feel to certain projects,” adds Agarwal.

Education is a strong focus for the Group. The Greenwood High School in Bangalore stands testimony to the fact that it prepares students for higher studies with international courses. Agarwal says with a sense of pride that Dr APJ Kalam had paid a visit on hearing about the courses offered at the school.

For a real estate developer, Agarwal has not put all his eggs in one basket. He controls a majority stake in an aerospace components manufacturing company, besides Sattva eTech (providing end-to-end services for product design, development and low/medium manufacturing in embedded space), and a separate Facilities Management company.

Agarwal is indeed a busy man with varied interests. But, as he says, if one sticks to business ethics and maintains transparency, success is not far off.

SPECIAL FEATURE

ROADS & HIGHWAYS

MILES TO GO

Much has been written about the pace of construction of roads & highways, but what exactly is being done to make them last longer?

BY JAYASHREE KINI MENDES

O

n paper, India has long claimed some of the world’s most extensive road and rail networks.

That belied reality: roads were twisting, bumpy, crowded and dangerous. Railways were largely single-track, which caused delays, or narrow-gauge, which limited their ability to carry large loads. By car or train it was rare to sustain speeds of more than 50kph.

Puzzled tourists wondered why distances that looked small on a map took forever to traverse.

But a lot of that is set to change, if plans by the government to build 83,677kms of roads at a staggering investment of Rs 7 trillion (including Bharatmala) are anything to go by. This largest ever outlay for road construction comes in the backdrop of the government implementing the GST

28 CONSTRUCTION WEEK FEBRUARY 2018

which aims to create a common market by dismantling inter-state tariff barriers. A robust road infrastructure will help in that direction. Expediting the Bharatmala project, besides constructing roads & highways along with the NHAI and NHIDCL has been allotted priority. According to reports, RFQ tenders are in process and if all goes well, the first tenders should be issued in mid-2018.

Construction Week India speaks to road contractors and equipment makers to understand what has changed along the way and how equipment manufacturers are gearing up for the onslaught of contracts that are expected to come their way. Speaking of some of the changes in recent times, Arun Karambelkar, president & CEO, HCC Ltd, says, “There have been changes in the qualification criteria and payment con-

SPECIAL FEATURE

Arun Karambelkar HCC Ltd

Devendra Jain Dilip Buildcon

ditions of the contracts. The threshold value of similar works executed by the contractor has been reduced to 25% of the tender value from the earlier 50%. Similarly, the threshold technical capacity of the contractor has been reduced from 2.5 times to 1.5 times of the tender value.

These modifications in the qualification criteria have allowed more contractors to participate in the bidding process. In case of special structures, government agencies are now asking for specific qualifications from the contractor.

Implementing these changes has resulted in improved quality output.”

Agreeing with this, Devendra Jain, CEO & executive director, Dilip Buildcon, says, “The government has considerably moderated the entry level for contractors. This gives room to more contractors to bid for projects. Moreover, the authorities have also put a ceiling on early completion bonus to 5%, which we are well known for.”

With majority of contracts being executed on EPC basis, the introduction of milestone/stage completion payment method has added to the financial stress of the contractor. To improve the cash flow situation for contractors, more stress is being given on further bifurcation of milestones. “Despite these changes, the payment

processes still need revamp. The contractor would like to have a monthly payment system for the completed work,” adds Karambelkar.

PROJECTS GALORE With less drama, transport networks are being overhauled. Unlike in China, where the government has been able to build big roads at astonishing speed thanks, not least, to its ability to oust farmers off their land at will, in India a more litigious system makes it harder to appropriate land. Authorities need a more constructive plan that will allow contractors to work undisturbed.

Speaking about safety at job site, skilled labour, quality of equipment used, and productivity of the equipment that define the project to be executed, VG Sakthikumar, MD, Schwing Stetter Sales and Services, also chairperson of ICEMA, and chairman of mechanisation committee, BAI, says, “India has a massive backlog of highway projects since infrastructure development wasn’t executed for the first 60 years of our country’s development. The need for completing projects is high. It’s very important that we choose the equipment that have high productivity and one that will increase the level of mechanisation.”

Volvo CE offers a thorough understanding of equipment to users before they start applying it.

30 CONSTRUCTION WEEK FEBRUARY 2018

SPECIAL FEATURE

VG Sakthikumar Schwing Stetter

Shalabh Chaturvedi CASE India

Vivek Hajela

Larsen & Toubro

Ramesh Palagiri Wirtgen India

Anup Nair, VP & business head, Hyundai Construction Equipment India, says, “The government has built up a rapid momentum of road projects.

However, it would be helpful if factors like land acquisition and offering stringent specifications on modern technology and equipment were sorted out. Many a times awarded projects are stuck due to the hassles in land acquisition. MoRTH or government agencies must debottleneck this.

Deploying modern technology and equipment will ensure speed and execution of the projects.”

Realising that cement roads will soon be the order of the day, Hyundai Construction Equipment has launched an unique experiment — a wheeled excavator for spreading the concrete, while marching on the polythene base without spoiling the same. The equipment is imported from Korea and has the latest technology like the ‘Himate’ remote management system.

Ramesh Palagiri, MD & CEO, Wirtgen India, says, “We work very closely with our customers/consultants/contractors on a regular basis through our application specialists and the feedback received on the performance of machines is given back to the R&D team on a continuous basis.”

Palagiri adds that products like surface miners, Vögele pavers, and cold recyclers have evolved in the last 10 years due to this close cooperation between users, the application team and the R&D team. This system has been in existence with the Wirtgen Group for a long time and has resulted in making it an innovation leader in the industry in road building and road rehabilitation.

Experience has shown that when it comes to infrastructural development in India, clear availability of land is the most critical factor and often the stumbling block. “In order to materialise the ambitious plans of MoRTH, it is necessary for the government to acquire the entire land prior to bidding and placement of orders. This should be accompanied by other necessary clearances, like forests, environment or those for defence/ railways/municipalities, as applicable. There was an earlier proposal wherein the government was considering the bidding out of a deck of pre-approved projects. This is worth revisiting. It is encouraging to see the government innovate on various models of development, which can

32 CONSTRUCTION WEEK FEBRUARY 2018

L&T has one of the largest fleet of construction equipment.

be a win-win situation for both the government as well as EPC contractors. The government must proactively embrace newer technologies, with a focus on quality and productivity,” says Raj Shrivastav, executive incharge, crushing, screening & HMAP, TIL Limited. If India is to have worldclass roads & highways, the government must encourage, if not mandate, the use of worldclass road-building equipment, he adds.

If one were to analyse the reasons for NHAI’s decision to award projects on an EPC basis, it was for exactly that — to kick-start the sector.

“Under this, the contractors get paid by the principal for the work completed. The government has also awarded ample number of projects under the Hybrid Annuity Model (HAM) under which the principal pays a lump sum amount to the contractor after the completion of the project. This mitigates risk for the contractor. Once this momentum picks up, then projects on DBFOT (Design, Build, Fund, Operate and Transfer) model will also find takers. The risk on the contractor is high in such models as the revenue depends on the traffic. The clauses with regard to dispute resolutions have also been strengthened,” says Vivek Hajela, GM & head, construction equipment business, Larsen & Toubro.

Interestingly, when it comes to bridge structures for road projects, the trend in designing these days is focused on saving cost and time.

As a result, more cable-stay bridges are being planned and regular bridges with longer spans

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SPECIAL FEATURE

Sachin Nijhawan Mahindra Construction Equipment

Raj Shrivastav TIL Limited

are being designed. This reduces the foundation works in the river. Other initiatives include use of fly ash, which is used in certain percentages as replacement for cement and soil. This brings production cost down by 15% without affecting the strength of the final product. In the hilly regions, due to insufficient width of land, a special technique of RE wall is used which offers higher stability than conventional methods.

The techniques of soil stabilisation has seen improvements with sophisticated anchors, rock bolts, and soil nails to improve the weight bearing capabilities, tensile strength, and overall performance of in-situ subsoils, sands, and other materials in order to strengthen road surfaces.

The current state-of-the-art is rooted in 2D paper based workflows that have been around for decades. Dustin Parkman, VP, civil and reality modeling, Bentley Systems, says, “The industry has struggled to move into progressive digital workflows but we are not seeing shift. OpenRoads purposely built for this change combines the latest component based 3D workflows with deliverables that feed construction including construction automation while still providing a 2D view of data that’s familiar. With OpenRoads, detailed 3D models can be created during design and carried directly into construction for

Road building machineries are dominated by imports where the products are made keeping in mind the needs of the developed world.

34 CONSTRUCTION WEEK FEBRUARY 2018

4D/5D simulation as well construction modelling and field based decision making.”

WHAT CAN BE DONE Going by the industry responses, Construction Week India understands that land acquisition continues to be a sore point for those associated with the project. Sandeep Singh, MD, Tata Hitachi, lists out a to-do list that could be helpful for all parties involved. He believes that importantly the government should secure all clearances from agencies like MoEF, Railways, defence, state government agencies before awarding the contract. “A separate pre-work tender should be awarded to complete tasks like shifting of utility lines. Pre-clearances from financial organisations regarding funding of HAM and BOT projects will minimise delay in issuance of appointed date. Large packages of over 200km under HAM/BOT must attract global construction companies with best-in-class construction capabilities. And finally, benchmarking of construction practices (over and above IRC standards) in advanced countries and implementation in India will increase capacity and capability of contractors,” adds Singh.

Then there are other factors that some key members of the industry also believe matter in a

SPECIAL FEATURE

Dimitrov Krishnan Volvo CE

Sandeep Singh Tata Hitachi

Anup Nair

Hyundai Construction Equipment

sound project. Apart from land acquisition, other factors that must be adhered to is affordable mechanisation thus leading to uncompromised and high quality output. Sachin Nijhawan, VP and business head, Mahindra Construction Equipment, says that there is a need to develop products and equipment that cater to the unique needs of the country. In India, current road building machineries are dominated by imports where the products are made keeping in mind the needs of the developed world. “Whilst in the developed world 60% of roads fall in our category of the multilane express and state and national highways, they constitute only 6% of overall roads when it comes to India. The equipment available are large and expensive and hence grossly unutilised. They are also non-viable for rural and unsurfaced road projects which constitute 58% of total roads in India. Absence of tailormade equipment suitable for our needs lead to suboptimal methods with limited mechanisation and large labour force deployment. This leads to bad quality of roads and affects speed of road making apart from availability of a large labour force,” he adds.

MATCHING WITH EQUIPMENT Then there’s the equipment that plays a vital role in roads building. Equipment makers, on their part, are offering the most advanced technological products that are suited to the basic Indian requirements of high fuel efficiency and productivity. Manufacturers emphasise on conSchwing Stetter has always been one to launch new products in keeping with trends.

36 CONSTRUCTION WEEK FEBRUARY 2018

tinuous product development to improve the equipment’s performance, operator comfort, boost productivity and increase fuel-efficiency.

“Generally speaking, there’s an understanding among road contractors that innovative, efficient, and productive equipment is going to be essential if companies are to meet the ambitious set targets. While there is still some hesitation from contractors as they may tend to avoid sophisticated and expensive machinery, we offer a thorough understand of the technology that comes with modern equipment and reduces the machine’s overall lifetime costs while adding to productivity,” says Dimitrov Krishnan, VP and head of Volvo CE India.

With cement roads becoming the norm today, Volvo CE offers equipment for constructing the base layer of such roads. Its tracked paver P5320B ABG can provide 7m wide and 150mm thick dry lean concrete (DLC) layer in a single pass. The P5320B features automatic track tensioning, heavy-duty oscillating rollers. After DLC paving, for compaction Volvo’s DD90B offers high centrifugal force. For constructing the subbase and subgrade, the company has on offer a complete solution with the SD110B soil compactor and EC200/EC210B excavators for road side cutting works.

Jain of Dilip Buildcon says that the company has accumulated the largest number of equipment assets, which are mainly imported. The company has ardently bought pavers, batching plants, concrete road building machines from Wirtgen, Caterpillar, Volvo, among others.

Shalabh Chaturvedi, head marketing, CASE India, says, “For high quality roads we have graders that are used mainly for levelling and shaping a surface to very fine measurements. CASE graders are engineered for long product life. Equipment uptime is what matters most to customers while deciding on the machine. Time bound projects need reliable machines and considering that our graders feature an FPT Industrial 6.7-litre engine (with triple horsepower ranges on the 865B model and dual horsepower on the 845B), it matches the power requirements of various applications and delivers optimum fuel efficiency. The grader is offered with an Automatic ZF

SPECIAL FEATURE

Products like surface miners, Vögele pavers, and cold recyclers have evolved in the last 10 years due to close cooperation between users and the R&D team.

Sanu George SDLG

Ben James Global Road Technology

Transmission. The machine has a multi Curvature Moldboard which reduces resistance on the engine and fuel consumption.”

In compactors, CASE has on offer 1107EX soil compactor fitted with an FPT engine, mini compactor 450 DX fitted with a Mahindra engine and the recently launched 752 EX vibratory tandem compactor fitted again with an FPT engine With the Indian government’s push for roadand highway construction, there is demand for more efficient and reliable machines. Wheel loaders transport material on site and play an important role in road construction. Sanu George, business head, SDLG India, says, “Our wheel loaders come without the bells and whistles of premium machines and are simple to use. This means less training time needed. In addition to reliability, it aids productivity.”

George adds that motor graders are another piece of essential equipment. Good motor graders are required for a flat and even surface. SDLG offers two types of motor graders and the larger G9190 has enjoyed greater success in the region. The newer and smaller G9138 is highlymanoeuvrable and gives an operator precise control through a fully-digital instrument panel that includes electronic monitoring. “Adding to its operability is its swing frame, which lends flexibility to the machine. The articulating swing frame’s movements allow the blade to generate more power and carry a heavy windrow,” he adds.

NOVEL METHODS Adoption of novel technology is attracting companies to look for innovative ways to build roads.

Admittedly in India there are few companies that

38 CONSTRUCTION WEEK FEBRUARY 2018

offer unique solutions to construct roads that can aid in better health of the citizens. Dust is the main air contaminant and an environmental hazard and poses significant risks to everyone. These conditions take years to develop and both employers and regulators don’t take them as seriously as workplace injuries. “Today there are state-of-the-art dust technologies available to alleviate dust problems on roads, from major highways and freeways to haulage, industrial and rural roads, tarmacs, hardstand areas and water repellent pavements. It can be easily applied to clay, silt, sand and gravel materials, immediately creating safer, sustainable and costeffective infrastructure. Our environmentally and safety friendly products offer dust prevention and higher quality, more durable roads, says Ben James, CEO & founder, Global Road Technology.

GRT has expertise for mix design used in road construction i.e granular sub base (GSB), wet mix macadam (WMM), cement treated base (CTB), soil/murum/waste rubble/stabilisation (with cement, lime, flyash, polymer, etc), and concrete mix design.

With concrete pavement roads becoming the order of the day, Karambelkar says that although they are being built for a long time now, the demand for such roads is increasing due to an increase in the overall pie of the transportation segment. “Here the contractors must follow IRC (India Road Congress) guidelines set by the client in the contract conditions, leaving little scope for innovation on behalf of contractors.

The geological challenges can be addressed by hiring special equipment and experienced manpower,” he adds.

SCHWING - XCMG

MOTOR GRADER

0 II

GR15

It adopts a front wheel and articulated frame steering. The articulated frame with a maximum steering angle of 0±27 ° and a minimumturning radius of 6.6 m the machine.

Overload Protection Worm-Gear Case: Rear ripper Powered by Cummins India’s 6 cylinder engine The torque for operating the mold board is A multi-tooth mechanism installed in transmitted through a unique gear box, whichthe back of grader, used to excavate the hard ground charger meeting the Bharat Stage III not only transmits the torque but also acts as which canturbo not did by blade and loose poor compacte Emission Norms.

It is highly reliable,fuel economic, an overload protection by a patented slip dsilent formation to re-construct, etc. in operation and has lower emission mechanism for the board.

SCHWING STETTER (INDIA) PVT LTD ISO 9001:2008 :: OHSAS 18001: 2007 :: ISO 14001:2004 F 71 - 72, SIPCOT Industrial Park, Irungattukottai, Sriperumbudur Taluk, Kancheepuram District,Tamil Nadu - 602117.

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Mobile : +91 98186 51188 Fax : 011 30928530 E-Mail : anilgulashan.gulati@schwingstetterindia.com MUMBAI 022 25624863 / 64, 30718300 / 33555588 I NEW DELHI 011 3092 8500 / 33555588 HYDERABAD 040 6615 1783 / 33555588 I BANGALORE 080 4243 8400 / 33555588 KOLKATA 033 3322 3300 / 33555588 I COCHIN 0484 4055984 / 3355558 AHMEDABAD 079 40244200 / 33555588 I PUNE 020 26055651 / 2 / 33555588 MOHALI 0172 3957500 / 3957503 I BHUBANESWAR 0674 2463999 / 3355558 GUWAHATI 0361 2234738 I RAIPUR 0771 2562325

SPECIAL FEATURE

TOWER CRANES

CRANING FORWARD

With strict timelines and operational regulations to be met by developers, tower crane vendors are stretching themselves to meet specific demands in the face of rapid urbanisation.

BY MITALEE KURDEKAR

T

he construction boom in India is quite a modern phenomenon. As a consequence, the construction-related OEM product market has also been growing at a fast pace in recent years. Within that space, the advent of construction-aiding technologies and products is linked to changes like growing urbanisation, an increasing middle class and the conversion of

40 CONSTRUCTION WEEK FEBRUARY 2018

towns/cities into megacities. Considering the need for close infrastructural support and how many cities are growing vertically rather than horizontally, certain specialised equipment like tower cranes have witnessed high growth rates, further enhanced by their vendors supporting customised solutions for their users. Globally, the tower crane market is expected to garner revenues exceeding $8 billion by next year. However,

INCOMPARable

engineering of our high rise facade At Glasswall Systems, facade technology exceeds just engineering and design.

It is a balance of knowledge together with practical solutions that gives us the edge and helps us redeďŹ ne the city skyline.

project : Indiabulls blu Client : Indiabulls Real estate

SPECIAL FEATURE

Schwing Stetter deploys special purpose tower cranes for high-rise construction, post a detailed study of the project undertaken.

OUR TEAM OF ENGINEERS GO OUT TO WORK WITH THE CONTRACTORS RIGHT FROM THE CONCEPTUAL STAGE. VG SAKTHIKUMAR a majority of this growth is expected to arise from the two booming economies of China and India, in the coming years.

MARKET DYNAMICS In answer to this industry demand, tower crane vendors are going out of their way to align themselves with their customers’ requirements. “As a machinery manufacturer, we have to be close to our customers, listening to their needs,” says Mariano Echávarri, communications manager, Comansa, which claims to be one of the world’s leading manufacturers of tower cranes for construction. Echávarri adds, “This customer commitment led us to launch a significant number of brand new models in the last 5-10 years. We now offer one of the world’s widest ranges of flat-top and luffing-jib tower cranes, designed for great performance in all types of construction projects.”

While admitting that the realty market is somewhat subdued at the present time, Tushar Mehendale, MD, ElectroMech, is also hugely optimistic that this trend will reverse during the second half of 2018. He also points out that, “There is a healthy growth in tower crane requirements across a host of infrastructure projects, and we expect this growth phase to

42 CONSTRUCTION WEEK FEBRUARY 2018

continue in the years to come.”

The market requirements are diverse and specific in nature to individual customers and their work environment. Hence, offering customised solutions becomes a unique feature in this segment. Daniel Hieronimus, regional sales manager, Liebherr-Werk Biberach GmbH, explains, “Our Tower Crane Solutions team provides custom solutions direct from the manufacturer. Tower Crane Solutions specialises in providing advice and planning for special projects in housebuilding and industrial construction as well as projects in power station, plant and wind turbine construction.” He further states that this department of Liebherr also provides effective site consultancy and design services.

VG Sakthikumar, MD, Schwing Stetter Sales and Services; chairperson, ICEMA; and chairman, mechanisation committee, Builders Association of India, agrees when he says, “There are special purpose tower cranes required

ELECTROMECH GIVES SLEWING VFD AND ALL VFD – BOTH OPTIONAL – SO AS TO MEET DIFFERENT CUSTOMERS’ FINANCIAL PLANS, LESS INITIAL INVESTMENT, OR LONG-TERM POWER-ENERGY SAVING. TUSHAR MEHENDALE

K Raheja Corp’s Mindspace Business Parks project, which is currently underway.

SPECIAL FEATURE

THE INITIAL CAPITAL

HIGHER PRODUCTIVITY

COST INCURRED CAN

IS THE MAJOR DEMAND

BE RECOVERED IN

DETERMINANT IN BIG

2-3 YEARS OF USAGE,

SIZE, COMPLEX AND

LEADING TO IMMENSE SAVINGS IN

COST-INTENSIVE PROJECTS.

LABOUR, TIME AND COST.

MANOJ AGARWAL

SHABBIR KANCHWALA for port, dam and high-rise construction, which involves a detailed study on the project undertaken, and our team of engineers go out to work with the contractors right from the conceptual stage. We offer custom-made solutions to meet specific site requirements.”

Manoj Agarwal, head, sales & marketing, Escorts Construction Equipment, sums this up well by suggesting, “The market for tower cranes is expanding and heavier capacity tower cranes are fetching more demand. The ability to deliver higher productivity is the major demand determinant of tower cranes in big size, complex and cost-intensive projects.”

EVOLUTION OF CUSTOMER REQUIREMENTS Even though the Indian market for tower cranes may have only matured in the recent past, the development of this market to catch up with evolving customer needs has moved rather fast and is in sync with developed economies. As a result, tower crane vendors in the market are competing closely with their peers in an effort to delight their customers by fulfilling their individual requests.

Shabbir Kanchwala, senior VP, K Raheja Corp, explains that such asks can be quite defined, saying, “Tower cranes are vital to any modern-day construction site. Manufacturers

44 CONSTRUCTION WEEK FEBRUARY 2018

of these tower cranes cater to general and precise requirements for modern-day structures. Certain criterion needs to be considered as part of special needs, including load and weight of the material, the location of usage, and time taken to reach the desired location. External tower cranes with specific climbing operations are used, where tower cranes are installed in core shafts or lift shafts. This also requires detailed planning and effective teamwork by suitably trained and experienced personnel.”

This obviously calls for a considerable amount of help from the makers of towers cranes. Parth Mehta, MD, Paradigm Realty, acknowledges the vendor support for newer business requirements when he suggests, “Right from lifting TMT bars and other materials to concreting of vertical RCC members, a tower crane increases the speed of operations phenomenally. Vendors analyse what the clients require regarding operations via tower cranes. New technologies like self-erecting cranes and radio remote-controlled systems have made their entry into the industry, which is taking operations of the same to new levels.”

On the other hand, a Kalpataru spokesperson confesses, “Before selecting a crane, we have detailed technical discussions with suppliers on aspects such as the maximum load lifting in a shift (hook time analysis), type of loads, maximum lifting weight etc. The key is to improve work flow efficiency.

SPECIAL FEATURE

The ask is detailed and specific, and our vendors have delivered to our needs.” The company relies on cranes from Liebherr, Potain, ACE, XCMG, etc.

R&D AND EFFICIENCY ENHANCEMENT All things considered, customer focus appears to be the common denominator for every major OEM of the industry. With many demand drivers put in place, the usual market shift to buyer power is evident. Having said that, vendor OEMs have been introducing newer features from their R&D stable quite regularly, which allows them to attract customers with unique customised solutions. Echávarri speaks of Comansa’s contribution in the efficiency enhancement arena with two of their systems. He declares, “Our Effi-Plus system allows an important increase on the hoist speed, especially with light loads, with the same consumption. Therefore, the work cycles are shortened, and the crane is much more efficient. Our flat-top tower cranes are delivered with the PowerLift system, which allows to move the maximum load that the crane can lift at a certain jib position, to a further distance (up to 10% more reach).”

In the case of Liebherr, Hieronimus suggests, “We have fre-

DEPENDING ON THE VERSION OF THE CRANE, WE HAVE MANY DIFFERENT ASSISTANCE SYSTEMS. DANIEL HIERONIMUS A Liebherr tower crane at Panchshil’s Tech Park, Pune.

RIGHT FROM LIFTING TMT BARS TO CONCRETING OF VERTICAL RCC MEMBERS, A TOWER CRANE INCREASES THE SPEED OF OPERATIONS PHENOMENALLY. PARTH MEHTA quency converters and PLC (programmable logic controller).

Depending on the version of the crane, we have many different assistance systems.”

While efficiency improvement is important for their customers, vendors keep a close eye on their cost improvement requirements too, as this becomes even more enticing in the price-competitive Indian context. Sakthikumar proclaims, “One of the special need applications was to use Variable Frequency Drive mechanism in Schwing – XCMG tower cranes.

It is introduced to lessen the electrical consumption.”

Similarly, Mehendale says, “ElectroMech gives slewing VFD and all VFD – both optional – so as to meet different customers’ financial plans, less initial investment, or long-term power-energy saving. We provide an optional mast solution for the same crane model to save our loyal customer’s budget (re-use the masts that they purchased before), and also to suit any fresh customer’s special projects such as a high-rise building with a narrow elevator shaft.”

Most OEMs of repute bundle these efficient products with support services like operator training, safety training and after sales services like spare parts supply etc. Working at heights means tower crane operations need to be extremely safe in all conditions. Safety with efficiency and cost improvement are thus hallmarks of tower crane operations. Relationship building with clients therefore becomes an important factor for vendors of this capital-intensive business.

MAKING INITIAL INVESTMENTS PALATABLE And there is no doubt that tower crane manufacture as well

46 CONSTRUCTION WEEK FEBRUARY 2018

SPECIAL FEATURE An array of Comansa cranes have been employed by Shapoorji Pallonji & Co. Ltd for their Tata Housing Development Company project in Bengaluru.

WE NOW OFFER ONE OF

Kalpataru carries out detailed technical discussions with suppliers, before purchasing a crane.

THE WORLD’S WIDEST RANGES OF FLAT-TOP AND LUFFING-JIB TOWER CRANES. MARIANO ECHÁVARRI as its procurement is a hugely capital-intensive activity. With specialised skill sets for workers and investment in training as well as after sales support, the cost of acquisition of tower cranes is arguably steep. Affording a positive stance to this complex issue, Kanchwala suggests, “There is a plethora of options to procure tower cranes, depending on the purchase or the usage. The initial capital cost incurred can be recovered in 2-3 years of usage, leading to immense savings in labour, time and cost. Manufacturers also offer tower cranes on rent depending on the client’s requirement, especially when usage is restricted to one or two projects.”

According to Agarwal, Escorts, which is the exclusive distributor of Linden Comansa and Comansa CM range of tower cranes in India, has supplied to the likes of Shapoorji Pallonji & Co. Ltd (SPCPL) for their Tata Housing Development Company project in Bengaluru. Agarwal points out, “Comansa tower cranes have a removable jacking cage and modular system, which makes it easy for the user to combine and assemble different parts into a new model according to their actual requirements, thereby saving the cost of purchase, storage and

48 CONSTRUCTION WEEK FEBRUARY 2018

parts management. Comansa also offers a buy-back scheme for very high capacity & high value tower cranes, which are used in specific applications.”

Many vendors support customers by arranging finance deals through institutions. Sakthikumar says, “Schwing Stetter believes in directly handling the customers. As far as finance is concerned, we have finance partners in both banks and non-banking finance companies like NBFC, who have various product offerings right from funding to leasing, etc.”

Hieronimus echoes a similar view when he states, “We are currently intensifying our efforts to provide increased attractive financing models to customers. Also, rentals via third parties is a common practice.”

Providing a customer take, Mehta explains, “Cost of acquisition of tower cranes is usually very high. However, vertical logistics has improved multi-fold and, hence, turns out to be an asset if you have multiple high-rise projects. Tower crane vendors also suggest a strategy for machinery loans from different banks and ROI on the asset. They also have a wide network of existing functioning tower cranes, which you can buy at a lower rate than buying a new one.”

Not surprisingly, both vendors and customers recognise that it is best to work hand-in-hand when it comes to soaring ahead towards their common goal of steady growth.

CONSUMER CONNECT

R+T Asia announces highlights of upcoming 2018 show

F

rom March 20-22, 2018, R+T Asia will return again to the Shanghai New International Expo Centre (SNIEC) for its exclusive annual trade fair for roller shutters, doors/gates, windows, and sun protection systems. More than just an exhibition, R+T Asia attracts 30,000 professional visitors and over 520 exhibitors, delivering unique exposure to the huge Asian market and many opportunities to expand business.

R+T Asia’s networking initiatives bring visitors and exhibitors together during the show. Educational summits and conferences feature international experts, prominent exhibitors, and leaders from trade associations and the media. Special international hosted buyers also generate unique networking opportunities. No other event offers such exposure to this huge market and so many opportunities to expand business.

Textile pavilion As a new highlight for 2018, R+T Asia introduces Yuhang Home Textiles Association from Yuhang District of Hangzhou. This association seeks to become the world’s high-end textile brand to capture the strong demand for home textile products. The N5 pavilion will feature Chinese-style fabric, fabric for kids, fashion & modern fabric, and luxury Europe and American style.

InnovAction travel to Stuttgart Now in its 14th year of joining forces with the R+T mother show in Stuttgart, R+T Asia presents InnovAction, a special display that features noteworthy new products, including nominees of the R+T Stuttgart Innovation Prize. The InnovAction showcase of products can be viewed both online before the show and during the fair in a special exhibition area, InnovAction Hub. IWDS The show’s International Window and Door Summit (IWDS) brings

speakers from InnovAction prize in Stuttgart, too. The theme for the 2018 summit is “Think bigger, think better.”

The sun protection systems section of IWDS features hot topics, the smart home, and a discussion on sun shading solutions when it is combined with the whole building. IWDS’s door and gate section will present two discussion panels: Safety of Opening and Closing the Door, and the importance of the door as a part of a whole building.

Materia Exhibition Materia is the leading global network for innovative materials, stimulating innovation for better, more sustainable, and high-quality built environments. This year’s theme is “Must-Have Materials,” showcasing a mix of special materials for interior and architecture.

Featuring at least 250 new materials, the exhibition shows modern and innovative versions of multifunctional, smart, original, sustainable, and beautiful materials. Innovations includes metal mesh for sunscreens, paper made of cacao, a 2.5D printed surface, thermochromic plastics, translucent wood, textiles made from tree bark, and wallpaper made from herbs.

To learn more about R+T Asia 2018, go to http://rtasia.org.

CONSTRUCTION WEEK FEBRUARY 2018 49

SPECIAL FEATURE

I

ndia is the third largest producer of crude steel in the world after China and Japan. In fact, the country’s crude steel production rose nearly 6% to hit an all-time high of 101.28 MT last year as per official data. During AprilDecember of the fiscal year 2017-18, the output stood at 75.50 MT as against 72.20 MT during the same period a year ago, an increase of 4.6% as per the latest report from the Joint Plant Committee (JPC). In December alone, the country produced 8.65 MT as against 8.38 MT in the same month a year ago. SAIL, RINL, TSL, Essar, JSWL and JSPL together produced 43.39 MT during April-December 2017, which was a growth of 6.5% over the same period of the preceding year.

The balance of 32.10 MT came from other producers, resulting in a growth of 2.1% over the same period a year earlier.

The boom in infrastructure projects is driving steel demand in India. Steel consumption in the fiscal year 2018-2019 is likely to continue at an estimated 4-5% annual rise, according to a survey of mill officials and traders. “This increase in steel demand follows the launch of numerous infrastructure projects announced by Prime Minister Narendra Modi’s government for 2018. Steel consumption for housing construction is also likely to rise due to Modi’s Housing for All by 2022 movement.

Higher income levels in the agricultural sector are likely to affect the consumption of other steel products such as farming equipment, storage bins and roofing sheets for residential and warehousing purposes,” says Sankey Prasad, founder chairman & MD, Synergy Property Development Services.

GOVERNMENT IMPETUS The government is now actively taking various measures to promote the domestic steel industry and raise capacity. In May last year, the Cabinet gave its nod to a new policy that aims to achieve steel-making capacity of 300 MT by 2030, with an additional investment of Rs 10 lakh crore. The government also approved a policy for providing preference to domestically manufactured iron and steel products in procurement by the government and its agencies.

The consumption of steel will increase with infrastructure development in the country, while the logistics cost that is currently on the higher side – compared to other countries – will come down with improvement in infrastructure. There is stability in the steel sector globally, and import of steel from China has come down to five million tonnes from 10 MT because of anti-dumping duty and other temporary measures taken by the government. In fact, the government’s decision to protect the domestic industry by imposing a minimum import price (MIP) and anti-dumping duty on steel imports is an important factor that is leading to the resurgence of the

50 CONSTRUCTION WEEK FEBRUARY 2018

STEEL

STEEL THE DEAL Impetus caused by renewed demand due to construction activities and a focus on innovation are helping in the steady recovery of the steel industry.

BY BINDU GOPAL RAO

industry. The MSTC Metal Mandi, an e-platform, has been launched under the Digital India initiative, where finished and semi-finished steel products are sold. To make the domestic industry more competitive, the CBEC (Central Board of Excise and Customs) has announced a zero export duty on iron ore.

The Ministry of Steel provides steel research and technology facilities to the industry as well.

SPECIAL FEATURE

XXX

DEMAND DRIVERS Post the phase of poor returns due to the dumping of cheap imports, the steel industry is gearing up for increased demand from infrastructure and real estate projects in recent months.

Also, according to data from the International Trade Centre (ITC), starting January 2017, Chinese steel exports have been dropping by at least 25% year-on-year every month, giving

a much-needed respite to Indian steelmakers too. Global industry body Worldsteel has said that the country’s steel demand has big potential considering its huge population and relatively low-level of infrastructure and housing development. It also added that it will take longer for India’s steel demand to peak compared to China, where the demand has increased dramatically from 2000, but then peaked in 2013.

CONSTRUCTION WEEK FEBRUARY 2018 51

SPECIAL FEATURE

Rahul Joshi, head, metals and mining, Feedback Consulting, says, “There are three key developments helping the steel industry. Increase in rural demand: Reasonably good monsoon, increase in MSP, loan waivers, left more money at the hands of farmers, improving the purchasing power of rural customers; higher allocation for Pradhan Mantri Aawas Yojana - Gramin, and accelerated work on PM Gram Sadak Yojana, are both driving rural demand further. There is a higher thrust on completing infra projects. In the 2017-18 budget, an outlay of Rs 4 lakh crore for infrastructure expansion was made. Extension of MIP has protected interest of domestic players. Also, recent upwardly trend on steel prices will help Indian steel companies

STABILITY IS RETURNING TO THE STEEL INDUSTRY. INDIA IS BEGINNING TO FACE A CYCLICAL UPTURN IN STEEL DEMAND. RAHUL JOSHI The government’s decision to protect the domestic industry by imposing a minimum import price (MIP) and anti-dumping duty on steel imports is helping in the resurgence of the industry.

52 CONSTRUCTION WEEK FEBRUARY 2018

to grow profitably. The Government has also announced a policy for providing preference to domestically manufactured iron & steel products in Government procurement.”

BALANCING ACT With heightened expectations for future growth, the need for balancing high-cost investment with the current rate of returns in this competitive market has become imperative.

Joshi explains, “Stability is returning to the steel industry. India is beginning to face a cyclical upturn in steel demand. The industry has, by and large, been able to ride out cyclical downturn, coupled with initial challenges from demonetisation and GST roll out. To achieve expected growth as envisaged in the new National Steel Policy, i.e. 300 MT by 2030, steel demand will need to grow at a CAGR of around 7-7.5% during the period as against a CAGR of 3.5-4% over the last five years.

It will need an increase in per capita consumption from the present 60kgs to 160kgs by 2030, when it has taken seven years to rise to 60kgs from 50kgs. Such a level of growth will require not just growing with the natural growth of customer segments, but will also need a rise in steel intensity.”

INNOVATION MATTERS Innovation and the introduction of new products/processes are key to assist customers (real estate/ infrastructure developers) with speed, strength and value for money. Steel manufacturers are naturally looking at this as an ongoing

SPECIAL FEATURE The steel structure of an under-construction commercial building.

INCREASE IN STEEL DEMAND FOLLOWS THE LAUNCH OF NUMEROUS INFRASTRUCTURE PROJECTS. SANKEY PRASAD commercial strategy. “Insolvency proceedings for stressed accounts (steel companies) have already begun in the last few months. Reportedly, some of these assets have already attracted attention from quite a few potential investors. Successful developments could result in industry consolidation to an extent, going forward,” says Joshi.

In an industry like steel, the investment in R&D is on the rise primarily to remain competitive amongst peers and global players. Besides investments in upgraded facilities, steel producers are grappling with the challenges of identifying good quality and sustainable materials as well as retaining skilled labour. Weak demand and cheap imports are some key factors that continue to plague the industry.

The steel industry plays a decisive role in infrastructure development and as these projects are on the rise, the demand for steel and steel products is also on the rise. Domestic avail-

Innovation in products and processes is key to assist customers with speed, strength and value for money.

ability of cheap labour and iron ore are primary factors that augur well for the Indian steel industry.

According to an India Brand Equity Foundation Sectoral Report from December 2017, “India is expected to overtake Japan to become the world’s second largest steel producer soon, and aims to achieve 300 MT of annual steel production by 2025-30. India is expected to become the second largest steel producer in the world by 2018, based on increased capacity addition in anticipation of upcoming demand; and the new steel policy that has been approved by the Union Cabinet in May 2017 is expected to boost India’s steel production. Huge scope for growth is offered

by India’s comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors.”

CONSTRUCTION WEEK FEBRUARY 2018 53

FLOORING

FLOORING

DISCREET CHARM The varied and exotic materials, shapes and sizes for flooring is catching the Indian real estate industry by storm.

BY JAYASHREE KINI MENDES

54 CONSTRUCTION WEEK FEBRUARY 2018

FLOORING

O

ne may walk all over it and if it’s a sound floor, it knows better than to protest. And no, we are not talking about the stealth factor here. As an application, the right flooring material is for the long haul. Flooring is not always only tiles. Other materials that contend with tiles are carpets and rugs, wood, resilient, laminate, and stone, which are the key products available in the global flooring market. Tiles, among these, have been witnessing a greater demand than other products. With the rise in building and construction activities and increasing interest of people in interior decoration, this trend is likely to remain so over the forthcoming years.

What has led to this one aspect of building materials gaining ground can be attributed to the rising number of residential constructions across the globe, not to forget reconstructions and renovations. Such movements have convinced flooring tiles manufacturers that their business seems sturdy for some years to come. With a significant expansion in the construction industry in various Asian nations, thanks to the high economic growth, the Asia Pacific flooring market is anticipated to continue staying on top over the next few years. According to a report, compared to other regional markets, Asia Pacific has been reporting a higher demand for these components and accounted for more than 42% of the overall market in 2016 alone.

Antica Ceramica has an array of designer tiles for floor and wall which are sourced from reputed manufacturers

ENHANCING BEAUTY In terms of interior design, flooring becomes integral to the style of a space. But overall, developers are the biiggest clientele for flooring manufacturers, says Amit Shah, managing director, Classic Marble Company (CMC). “Having been in the business for over two decades, we understand the finer nuances of construction and recommend the most suitable building materials for a given project. Flooring, which is the most important application for any kind of project, is suggested based on the economics and utility of a building.”

For luxury projects, marble reigns for almost all flooring needs. CMC offers natural marble and engineered marble under its flagship brand, KalingaStone, for such projects. However, for many ultra-luxury projects, natural marble makes the cut because of its inimitable designs and timeless beauty.

Speaking of how they go about a project, Vivek Talwar, CMD, Nitco Ltd, says, “We meet the architect to discuss and present our product range and try to understand the products they use in their projects. This also offers us an insight into their upcoming projects and application areas according to their mood board and colour palate, post which we guide them on the right tile options that can be used for that particular project.

CONSTRUCTION WEEK FEBRUARY 2018 55

FLOORING

tions available in the market to suit different budgets. I believe there is no difficulty in designing flooring for customers as long as you focus on their requirements. Importantly, as a vendor, it becomes our duty to make them aware of the trends and new varieties that have been introduced in the market.”

Bhugra breaks down the different kinds of flooring that are suitable for different homes. He adds that if one is talking about luxury homes/villas then natural stone flooring, hardwood flooring and luxury vinyl tiles have always been the first choice. Further, for mid-end and affordable homes, timber tile and laminate flooring are the best options as they offer a richfeel factor of hardwood flooring within the budget and are low maintenance. Ceramic tiles are another option when it comes to affordable budget flooring.

Parul Mittal, director, Greenlam Industries, believes in offering the best. “Every query we receive is dealt with a personal touch wherein we make it a point to meet the developers and under-

Timber tiles are the best examples when it comes to eco-friendly flooring.

MIKASA FLOORS ARE EASY TO INSTALL DUE

FOR LUXURY HOMES, NATURAL STONE OR HARDWOOD FLOORING AND VINYL TILES HAVE ALWAYS BEEN THE FIRST CHOICE. RAHUL BHUGRA Once the architect shortlists products of their choice from our catalogue, we send them samples to give them an experiential of the product. Once specifications are done with, an inquiry is passed on to the purchase department where we submit quotations and negotiate.”

Flooring has come a long way from the days when mere sand or mud tiles offered solace to settlers. The last few decades have seen much innovations with new and varied designs, patterns, and, of course, at a different cost. Rahul Bhugra, director, Antica Ceramica, says, “Today, there are numerous op-

56 CONSTRUCTION WEEK FEBRUARY 2018

TO ITS PLANKLOC TECHNOLOGY AND USES NO GLUE. PARUL MITTAL Greenlam uses materials responsibly and makes constant efforts to reduce waste.

FLOORING

stand their needs. We ask them the species of wood they want to work with, the finish and colour and the plank size and offer what suits the project best,” she adds.

INSTALLATION TECHNIQUES Installation of floors is a project by itself. Other than what will make up a floor, the installation of the selected material can also make or mar a space. Considering that installation is mostly manual, it is necessary that trained and experienced masons and contractors are appointed for the job. In case of

FOR ULTRA-LUXURY

tiles and stone, the traditional method is employed, which is cement and mortar. Mittal says that Mikasa Floors are easy to install due to its PlankLoc technology that lets one install the products with no glue or any other adhesive. The planks have been designed with an interlocking mechanism that helps them fit into place easily and efficiently.

Talwar offers a deeper insight. “Select the appropriate notched trowel based on the size of the tile. Using the smooth side of a trowel apply a layer of adhesive on the substrate and CMC’s KalingaStone marble in Terrazzo range - Forum for wall and Trevi for floor.

PROJECTS, NATURAL MARBLE MAKES THE CUT BECAUSE OF ITS DESIGNS AND TIMELESS BEAUTY. AMIT SHAH KalingaStone marble Elba for floor and wall.

CONSTRUCTION WEEK FEBRUARY 2018 57

FLOORING

work the adhesive vigorously into the substrate to eliminate dust that may be on the surface. Quickly apply the adhesive to the required thickness on the substrate. Place the tile onto the fresh layer of adhesive while the mortar is still wet and embed it using a rubber mallet. Remove any excess material protruding in the joint to ensure the proper depth of the grouting of the joint,” he ends.

Shah of CMC says that Kalingastone can be applied on floor with wet cladding. Wet cladding is with cement and mortar or adhesive fixing. Nowadays, an adhesive fixing is most preferred.

Satinder Chawla, MD, Span Floors, says, “We follow techniques that we have learnt from Europe and the USA and have over a century of experience in working with wooden floors. We stock installation tools and materials and train teams. Regular training is conducted to both the in-house supervisory teams as well as the outsourced installation contractors.”

Nitco’s Terrazzo collection is their latest range of Venetian mosaic that draws inspiration from Greek legend.

58 CONSTRUCTION WEEK FEBRUARY 2018

THERE IS A PARTICULAR METHOD TO SET THE FLOORING AND THIS NEEDS SEASONED WORKMEN AND MUCH ATTENTION TO DETAIL. VIVEK TALWAR ENVIRONMENT FRIENDLY TOO Flooring too has come under the scanner of environmentfriendly. Bhugra says that the use of eco-friendly and recycled raw materials options is helping sustainability and growth of the wooden/laminated flooring industry in India.

FLOORING

Chevron French Riviera is a modern, technologically superior take on the traditional French floor.

Span Floors has a full gamut of floors such as planks, squares, herringbones, chevrons and bespoke patterns.

Versailles panels wood flooring were introduced in France for the first time to replace the old marble floor.

“Our timber tile collection is one of the best examples when it comes to eco-friendly flooring. Also glass and ceramic tiles and reclaimed and distressed wood looks in laminate flooring are trends that can draw attention. We have tiles made of porcelain, rustic, timber and stone in a plethora of patterns and colours. Made of naturally occurring substances, these tiles give homes a distinctive look,” he adds.

“As a trend, we’ve noticed that most consumers first factor in is the cost followed by aesthetics whereas it always should be function first, followed by cost and form,” says Shah. In terms of environment-friendly, flooring materials are no different. The method of production determines its environment-friendliness. The more energy consumed including wastage, the lesser it is environment-friendly. CMC’s KalingaStone marble and quartz, and also Techlam and Iris range of ceramic tiles are eco-friendly flooring options,” he adds.

Mittal adds her company’s methods and says, “We use

WE FOLLOW TECHNIQUES WE HAVE LEARNT FROM EUROPE AND THE USA AND HAVE EXPERIENCE IN WOODEN FLOORS. SATINDER CHAWLA resources and materials responsibly and make efforts to reduce waste. We do not use toxic materials that may be unhealthy for the environment, employees or users. We have been awarded the PEFC certificate which is a leading forest certification organisation.”

Such initiatives that were little known only goes on to show how the industry has grown and advanced.

CONSTRUCTION WEEK FEBRUARY 2018 59

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INTERVIEW

BUILDING FAST

Nicolas Mangon, VP, AEC industry, business and marketing strategy, Autodesk, Inc., believes the time is right for the fast adoption of BIM in India.

INTERVIEWED BY MITALEE KURDEKAR

Autodesk University celebrates its fourth year in India. What is the evolution during this time?

Yes, I was really impressed by the quality of presentations

by Indian companies. There is a big jump in the adoption of technologies. This may be happening with a limited number of companies, but they are doing some amazing work, close to what the most sophisticated companies in the world are doing.

It was really exciting to see that.

site results in 30% of the productivity of a factory. Research also indicates that 2.5 times more fatal injuries occur on site, as opposed to a factory. Hence, there are many drivers that will push for prefab construction. We see a fast acceleration in this segment, because these manufacturers see a big opportunity to transform, for reasons such as high demand and low technology. We are just entering the space of manufacturing buildings, and it is hard to predict how quickly this segment will grow.

BIM has not seen widespread use in India’s construction landscape, at least adoption is not to the full extent of its capabilities. What are your thoughts?

In the US, 75% of projects use BIM, whereas India is certainly lagging behind, and there are many factors. The number one being that when governments mandate the use of BIM, it’s been proven to work; we see that there is a fast adoption rate in most countries that are using this method. Also, the cost of technology and upfront investment required was a barrier earlier. However, about a year and half ago, Autodesk changed that with a shift in its business model. Autodesk products cannot be bought any longer; they can only be subscribed to. We have democratised access to technology and, as a result, we have new users, while existing users have started to expand their use of processes, simulation and fabrication with adjacent technologies. In fact, we’ve seen that this model has worked extremely well all over the world – including India. Basically, people saw the value in this method, and there has been a snowball effect on the entire ecosystem. Increasing urbanisation will drive the use of BIM in India, which will see about 400 million people moving to cities in the next 30 years, requiring massive construction at a rapid pace.

Construction is still one of the least automated of all industries. How is robotics poised to change this?

There are two things to consider. There is robotics in a factory, which is about replicating components and delivering them to site. However, what is exciting is that today you can put a 3D model on the BIM platform powered by the Cloud, along with sensors that are geo-located on the construction site, in turn helping to build a relationship between the physical object and the digital object, also known as the digital twin concept. We are paving the way for remote robotics, wherein a Virtual Reality environment allows you to build remotely. The availability of a live workflow means that everything is always connected and up-to-date.

The shift from building to manufacturing in construction through prefab is a game changer. What is your take on this?

Construction as an industry produces the most waste. About 40% of material from the construction site is wasted, only because we are not efficient. However, 90% of that waste can be eliminated if you build in a factory. Besides this, working on the

62 CONSTRUCTION WEEK FEBRUARY 2018

Virtual Reality (VR) and Augmented Reality (AR) have a huge role to play, going forward. How quickly will adoption happen and what are the applications where you see their use?

Yes, that is true. The cost of VR was previously very high, but we can now leverage on Cloud’s infinite computing power, which has sophisticated computers running simultaneously. For instance, with Autodesk’s Revit Live, it is possible to do about 90% of what the older systems were doing. While historically, we have built AutoCAD and then Revit, we are changing the way we develop things today. An example is our development platform called Autodesk Forge, which many partners rely on to use the data created by our tools and build an AR environment. We are entering this new era of connectivity. We call it connected BIM, which is BIM plus the power of the Cloud.

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A K Garg Executive Director (Electrical), Delhi Metro Rail Corporation

Ashwani Saxena Director - Projects, Jaipur Metro Rail Corporation

Dilip Jadeja VP, Rolling Stock & Electrical, Rapid Metro Gurgaon

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INTERVIEW

FINANCING THE FUTURE D K Vyas, CEO, SREI Equipment Finance, speaks about what to expect from the company in 2018.

Excon 2017 just wrapped up. How was the event for SREI Equipment Finance?

Our focus this year had been to provide customised financing solutions, covering the entire asset lifecycle, to our customers.

This year, we had participated on a much larger scale than before, and had taken an outdoor pavilion of about 17,000 sq-ft.

Visitors could experience technological innovation in equipment financing; audio-visual treats; with fun and engaging activities; interactive information systems including information kiosks, multi-touch screens, and interactive walls at our stall.

Considering that large infrastructure projects are currently being awarded, what is the kind of growth you envisage for your business in the near future?

The government is focused on initiating policies to ensure the creation of a world-class infrastructure in India. This has caused a surge in demand for road construction equipment, thereby increasing the disbursement to the segment. Government focus on building concrete roads (on national and state highways) has boosted the demand for concrete and material processing equipment, though the slowdown in the real estate sector continues. As the segment requires large capital expenditure, financing accounts for approximately 80-85% of the total equipment purchased. The total Construction, Mining, and allied Equipment (CME) finance disbursement for Fiscal 2017 was estimated to be approximately Rs 280 billion. The construction equipment finance industry is expected to grow at a CAGR of 19% for the next three years. The overall construction equipment industry is expected to reach 1,25,000 units by 2020, and the new equipment finance market will continue to have a share between 87-90% for the next three years.

SREI Equipment Finance recently filed a draft red herring prospectus (DRHP) in a bid to launch its own IPO. Tell us about your objectives in this regard.

The objectives of the issue are as below: i. Augmenting our capital base: We are an NBFC-ND-SI in India and are registered with the RBI. As per the capital adequacy norms issued by the RBI, we are required to maintain a minimum capital adequacy ratio, consisting of tier-I capital and

64 CONSTRUCTION WEEK FEBRUARY 2018

tier-II capital, which shall not be less than 15% of our aggregate risk weighted assets on-balance sheet and of risk adjusted value of off-balance sheet items. We intend to utilise the net proceeds from the fresh issue to augment our capital base to meet our future capital requirements. ii. General corporate purposes: We propose to deploy the balance net proceeds of the fresh issue aggregating towards general corporate purposes, subject to such utilisation not exceeding 25% of the net proceeds, in compliance with the SEBI ICDR Regulations, including but not limited to meeting expenses incurred in ordinary course of business and any other purpose as may be approved by our board or a duly constituted committee thereof, from time to time, subject to compliance with the applicable provisions of the Companies Act. iii. Brand creation: In addition, we believe that the listing of our equity shares will enhance our visibility and brand name among existing and potential customers.

What can one expect from SREI Equipment Finance in terms of its plans and business strategy for 2018?

We have experienced steady growth recently. Our growth strategy primarily includes consolidating our equipment financing business through strategic business alliances and marketing initiatives, continuing to expand and diversify our product portfolio, growing our operations and network across India, and expanding our customer base across various business verticals in India. Some of our business strategies are as below: • In addition to providing CME financing, we intend to continue to expand our operations in other business verticals, in particular: used CME equipment, tippers, IT and allied equipment, farm equipment, medical and allied equipment, etc.

• Enter into partnerships with new OEMs and vendors and expand in equipment categories and business verticals with attractive growth opportunities.

• Endeavour to optimise borrowings and explore alternate avenues of funding.

• Adopt newer technologies to achieve greater operational efficiency and advanced risk management processes.

• Continue to build capability through skill development and training.