cir 39 (1) 2014

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Volume 3 Issue No 39 September 29-October 05, 2014 Price: Rs 100 An MMR, Braj Binani Group Publication Steel to go up on back of infra projects: Sail The Government of India’s focus on accelerating growth in manufacturing and infrastructure through development of smart cities, ports, power plants, development of industrial corridors and revival of Special Economic Zones (Sezs) would boost steel demand substantially, results of which will be seen in the near future itself, according to Chairman of the Steel Authority of India Ltd (Sail), CS Verma. Elaborating on the company’s vision at its annual general meeting, he said, “Sail is finalizing its Vision 2025 document, which will steer the company to increase its production capacity of Hot Metal to 50 million tons, along with related/enabling business activities.” Implementing the Vision 2025 would entail an investment of about Rs 1,50,000 crore in addition to the investment made in the current phase of expansion. Sail has been making an average expenditure of more than Rs 10,000 crore each year for the past five years and it plans to make a capital expenditure of Rs 9,000 crore on modernization and expansion during the financial year 2014-15 as well. In his address to shareholders Verma informed that facilities of about Rs 26,000 crore have already been operationalized and further explained that cumulatively, orders for Rs 62,778 crore have been placed under the current modernization and expansion plan of Sail. The expenditure till L-R: CS Verma, Chairman, Sail; Firdose Vandrevala, Executive VC, Essar Steel; Sajjan Jindal, CMD, JSW Steel Ltd; Rakesh Singh, Steel Secretary; Vishnu Deo Sai, Minister of State for Steel; Ajay Shriram, President-CII and Chairman, DCM Shriram Ltd; and Naveen Jindal, Chairman, Jindal Steel & Power Ltd, among others at a steel event in New Delhi. National highway projects delayed for various reasons 2013 UP Bihar Assam Jharkhand 13 18 20 22 0 5 10 15 20 25 Source: Ministry of Transport ghway projects Roadblocks to fulfill highway building plan The road transport sector in India is undergoing a transformational period and the Narendra Modi- led National Democratic Alliance (NDA) has been presented with the opportunity to handle this rugged transformation, which encompasses numerous hurdles that have been plaguing this sector now as well as in the past. In the past few years during the tenure of the UPA government, the Ministry of Road Transport & Highways had targeted to build roads at a rate of 20 km per day. But the realistic picture throughout 2009-2013 was dismal as the average length of national highways built was just under 8 km. The key issue that has been strangulating this promising sector is attributed to land acquisition, followed by cutthroat competition and costlier loans from banks due to weak economic growth. Considering these hurdles that stand in the way of progress, the new government has set the per day target at 25 km until 2016, post which the bar will be raised to 30 km. Although rating agencies like Crisil have projected the realistic figure at approximately 11 km for the period between 2013-17, there is a lot of optimism from the authorities. The recent Union Budget allocation of INR 37,880 crore towards the highways and road sector will surely expedite the transformation of this sector during the 2014-18 period of the Modi government. ‘Centre, states should join forces to attract investment’: Modi Development of states is important and these have to work together with the Centre to attract investment, according to Prime Minister Narendra Modi who stressed on ensuring smoother state-Centre relations for facilitating business at the launch of his ‘Make in India’ campaign. The ease of doing business, focussing on PPPs (public private partnerships), and harnessing the potential of ‘Democracy, Demography and Demand’, were the key focus of PM’s speech. The campaign aims to put India prominently on global manufacturing map and, in turn, facilitate inflow of new technology and capital, while creating millions of jobs. “We must stress on two FDIs -- First Develop India and Foreign Direct Investment. For Indians FDI is a responsibility; it means to First Develop India; for global investors FDI is an opportunity in the form of Foreign Direct Investment,” he explained. Focusing on job creation through growth of the manufacturing sector, Modi said, “We need to enhance purchasing power of Indians. We need to create jobs to move from poor to middle-class bracket. Treat India as not just a market. See every Indian as an opportunity to increase their purchasing power,” Modi emphasised. “We have to change economic dynamics; we have to improve manufacturing in a fashion that benefits the poor. This is a cycle, move poor people towards being a part of the middle-class,” he added. “Manufacturing boost will create jobs, increase purchasing power, thereby creating a larger market for manufacturers,” he noted, The industry body Ficci, in its document on ‘Make in India’ unveiled to coincide with the official launch of the campaign, said, “The ‘Make in India’ campaign can become the trigger in transforming Indian manufacturing, with its share in GDP languishing at 15-16 per cent for several years. Given the need to create a million non-farm jobs every month, manufacturing would have to grow at 12-14 per cent annually.” The Ficci document states that India is unarguably an attractive investment destination given its rich demographics that feed into the intrinsic demand and supply elements of businesses. The potential however has remained mostly untapped for want of a truly enabling environment required for businesses to flourish. The Ficci document emphasized that the focus must now be on: Improving business environment through ease of doing business and an encouraging fiscal framework; enabling manufacturing set-up by providing conducive eco-system that supports factor advantage, nurtures innovation and strengthens inter- linkages with other industries and institutions; and attracting greater capital through further liberalisation of foreign direct investment in key sectors. Ajay S Shriram, CII President, welcomed the launch of the campaign, calling it a new deal for India’s manufacturing sector. He said, “The idea that security of investment and consistency in policies are most important for developing trust of investors. The assurance given by the Prime Minister that the Centre and states will work as a team is important for industry. His emphasis on self- certification will go a long way in reducing difficulties for businesses.” “Another new idea in the PM’s speech was that India is ideally placed to Look East and Link West. This will help products manufactured in India to enter the global value chain. Digital India should lead to much better governance that will help the country improve its rank in the Ease of Doing Business.” Further to the campaign, Sunil Mathur, CEO, Siemens India, remarked, “ Indians and India are renowned for innovation. We start with an idea and then work backwards to develop state-of-the-art manufacturing facilities. This enables us to do things quicker and better than anyone else.” Additionally, being a young country, we have immense raw talent which can be tapped and developed into a skilled workforce.” A n n i v e r s a r y S p e c i a l (Contd. on pg 15) August 2014 has been more than Rs 55,000 crore. Meanwhile, at a recent ‘Steel Summit 2014’ organized by the Confederation of Indian Industry (CII), Minister of State for Steel, Vishnu Deo Sai announced that a new steel policy is on the anvil to facilitate the steel industry in increasing production to 300 mtpa by 2025, up from the present 81.2 mtpa. The new policy is likely to focus on capacity addition and address issues related to raw material security, environment challenges and land acquisition. Steel Secretary Rakesh Singh said that the government’s effort to increase the share of manufacturing in GDP from 16 per cent to 25 per cent put great responsibility on the steel sector.

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  • 1. September 29-October 05, 2014 1 An MMR, Braj Binani Group Publication Volume 3 Issue No 39 September 29-October 05, 2014 Price: Rs 100 Centre, states should join forces to attract investment: Modi Steel to go up on back of infra projects: Sail L-R: CS Verma, Chairman, Sail; Firdose Vandrevala, Executive VC, Essar Steel; Sajjan Jindal, CMD, JSW Steel Ltd; Rakesh Singh, Steel Secretary; Vishnu Deo Sai, Minister of State for Steel; Ajay Shriram, President-CII and Chairman, DCM Shriram Ltd; and Naveen Jindal, Chairman, Jindal Steel & Power Ltd, among others at a steel event in New Delhi. The Government of Indias focus on accelerating growth in manufacturing and infrastructure through development of smart cities, ports, power plants, development of industrial corridors and revival of Special Economic Zones (Sezs) would boost steel demand substantially, results of which will be seen in the near future itself, according to Chairman of the Steel Authority of India Ltd (Sail), CS Verma. Elaborating on the companys vision at its annual general meeting, he said, Sail is finalizing its Vision 2025 document, which will steer the company to increase its production capacity of Hot Metal to 50 million tons, along with related/enabling business activities. Implementing the Vision 2025 would entail an investment of about Rs 1,50,000 crore in addition to the investment made in the current phase of expansion. Sail has been making an average expenditure of more than Rs 10,000 crore each year for the past five years and it plans to make a capital expenditure of Rs 9,000 crore on modernization and expansion during the financial year 2014-15 as well. In his address to shareholders Verma informed that facilities of about Rs 26,000 crore have already been operationalized and further explained that cumulatively, orders for Rs 62,778 crore have been placed under the current modernization and expansion plan of Sail. The expenditure till Roadblocks to fulfi ll highway building plan National highway delayed for various reasons 2013 UP Bihar Assam Jharkhand 13 18 20 22 0 5 10 15 20 25 Source: Ministry of Transport ghway projects The road transport sector in India is undergoing a transformational period and the Narendra Modi-led National Democratic Alliance (NDA) has been presented with the opportunity to handle this rugged transformation, which encompasses numerous hurdles that have been plaguing this sector now as well as in the past. In the past few years during the tenure of the UPA government, the Ministry of Road Transport & Highways had targeted to build roads at a rate of 20 km per day. But the realistic picture throughout 2009-2013 was dismal as the average length of national highways built was just under 8 km. The key issue that has been strangulating this promising sector is attributed to land acquisition, followed by cutthroat competition and costlier loans from banks due to weak economic growth. Considering these hurdles that stand in the way of progress, the new government has set the per day target at 25 km until 2016, post which the bar will be raised to 30 km. Although rating agencies like Crisil have projected the realistic figure at approximately 11 km for the period between 2013-17, there is a lot of optimism from the authorities. The recent Union Budget allocation of INR 37,880 crore towards the highways and road sector will surely expedite the transformation of this sector during the 2014-18 period of the Modi government. Development of states is important and these have to work together with the Centre to attract investment, according to Prime Minister Narendra Modi who stressed on ensuring smoother state-Centre relations for facilitating business at the launch of his Make in India campaign. The ease of doing business, focussing on PPPs (public private partnerships), and harnessing the potential of Democracy, Demography and Demand, were the key focus of PMs speech. The campaign aims to put India prominently on global manufacturing map and, in turn, facilitate inflow of new technology and capital, while creating millions of jobs. We must stress on two FDIs -- First Develop India and Foreign Direct Investment. For Indians FDI is a responsibility; it means to First Develop India; for global investors FDI is an opportunity in the form of Foreign Direct Investment, he explained. Focusing on job creation through growth of the manufacturing sector, Modi said, We need to enhance purchasing power of Indians. We need to create jobs to move from poor to middle-class bracket. Treat India as not just a market. See every Indian as an opportunity to increase their purchasing power, Modi emphasised. We have to change economic dynamics; we have to improve manufacturing in a fashion that benefits the poor. This is a cycle, move poor people towards being a part of the middle-class, he added. Manufacturing boost will create jobs, increase purchasing power, thereby creating a larger market for manufacturers, he noted, The industry body Ficci, in its document on Make in India unveiled to coincide with the official launch of the campaign, said, The Make in India campaign can become the trigger in transforming Indian manufacturing, with its share in GDP languishing at 15-16 per cent for several years. Given the need to create a million non-farm jobs every month, manufacturing would have to grow at 12-14 per cent annually. The Ficci document states that India is unarguably an attractive investment destination given its rich demographics that feed into the intrinsic demand and supply elements of businesses. The potential however has remained mostly untapped for want of a truly enabling environment required for businesses to flourish. The Ficci document emphasized that the focus must now be on: Improving business environment through ease of doing business and an encouraging fiscal framework; enabling manufacturing set-up by providing conducive eco-system that supports factor advantage, nurtures innovation and strengthens inter-linkages with other industries and institutions; and attracting greater capital through further liberalisation of foreign direct investment in key sectors. Ajay S Shriram, CII President, welcomed the launch of the campaign, calling it a new deal for Indias manufacturing sector. He said, The idea that security of investment and consistency in policies are most important for developing trust of investors. The assurance given by the Prime Minister that the Centre and states will work as a team is important for industry. His emphasis on self-certification will go a long way in reducing difficulties for businesses. Another new idea in the PMs speech was that India is ideally placed to Look East and Link West. This will help products manufactured in India to enter the global value chain. Digital India should lead to much better governance that will help the country improve its rank in the Ease of Doing Business. Further to the campaign, Sunil Mathur, CEO, Siemens India, remarked, Indians and India are renowned for innovation. We start with an idea and then work backwards to develop state-of-the-art manufacturing facilities. This enables us to do things quicker and better than anyone else. Additionally, being a young country, we have immense raw talent which can be tapped and developed into a skilled workforce. Anniversary Special (Contd. on pg 15) August 2014 has been more than Rs 55,000 crore. Meanwhile, at a recent Steel Summit 2014 organized by the Confederation of Indian Industry (CII), Minister of State for Steel, Vishnu Deo Sai announced that a new steel policy is on the anvil to facilitate the steel industry in increasing production to 300 mtpa by 2025, up from the present 81.2 mtpa. The new policy is likely to focus on capacity addition and address issues related to raw material security, environment challenges and land acquisition. Steel Secretary Rakesh Singh said that the governments effort to increase the share of manufacturing in GDP from 16 per cent to 25 per cent put great responsibility on the steel sector.
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  • 10. IN PERSON September 29-October 05, 2014 3 East and Central Africa the next growth drivers In the second half of the financial year, execution of infrastructure and real estate projects are expected to start. How do you see this bringing relief to the cement industry? Firstly, the demand for cement is driven by infrastructure spend, which contributes to more than 40 per cent of the demand in India. In addition, there are other factors like easing of financials, mortgages and availability of funds that drive businesses, housing and supporting industries which drive demand. In the past 6-7 years, India has gone through a pretty rough time and theres a lot of catching up to be done. What we are hearing from the new government, its policies and the way things are moving forward, I see that a major catch-up and faster development. For the cement industry, as infra projects get implemented, I foresee a minimum of 25-30 per cent increase in the demand. When this happens, the price of cement too would improve. This will bring substantial relief to the industry. What is the capacity utilisation rate of cement manufacturers at present? How do you see its impact on prices going further? Most of cement makers today are operating at about 65-70 per cent capacity. Going further as capacity utilisation rises, price in the market too will increase since cement availability will become lesser. Its a supply-demand situation as the demand increases the supply will contract, which will lead to better prices. However, in India there is very less per capita utilisation of cement as compared to global average. How do you see it improving? When you look at infrastructure in Europe, or other Far East countries -- like if you compare Malaysia, Hong Kong, cities like Beijing, with major towns in India it is observed that our infrastructure is way behind and has yet to catch up. So in emerging markets or countries in developing world, I can literally see doubling of per capita cement consumption. This doubling can only come through infrastructure spend which depends on the government decisions. The government has to partner most of these initiatives and through PPPs (Public Private Partnerships) it is heading in the right direction. I feel that from the current low per capita consumption of 100-120 kgs, it should double -- if that doubles then the demand will double, which will lead to 100 per cent capacity utilisation. So to keep up the pace, do you have any plans for capacity expansion? We have our plans. We recently took over a plant in Gujarat and are looking at another one in other part of India. However, our focus will of course remain Rajasthan and Gujarat. Our vision is to double our capacity by 2020, which is not far away now. About 80 per cent of it will be in India and the rest will be in overseas market. What do you expect from the government at Central and State level? At Central level, of course we need the budget spend and the will The paradigm shift has been from looking at our industry as competition to partners. So, rather than try and compete with everybody within the industry, we are saying let us partner, let us try and drive economies of scale to reduce our cost, says Joey Ghose, Managing Director, Binani Cement Ltd in an interview with Paresh Parmar. Excerpts: these projects rests in the hands of state governments that should look into speedy execution and approvals as theres a lot of bureaucracy and red tapism involved in the acquisition of land and control of land reserves. In terms of other challenges, input costs like fuel have gone up. Are you passing on the price rise to end-users or are you absorbing it? All industries for the past 2-3 years, mostly, have absorbed this increase because the market just cannot afford these increases. Cement is a very capital-intensive industry as each company spends around $200-400 million to put up a plant and they have to fund this, they have to service their loans. The industry cannot continue to absorb these costs. We all know the cost of transportation will rise as inflation is relatively high in India. So costs will rise, which will have to be passed on to customers. There is no way out, this is basic economics. Some developers associations are demanding reduction in cement rates. Your comment please. It is wrong to fix prices and form a cartel. However, economics prevail, its an issue of supply and demand. When demand exceeds supply prices will go up. down. However, we cannot drive their cost down, because inflation impacts every employee. So at the end of the day economics will prevail. This is botton line: Just as India grows, the price of cement will go up; however, it will not go up abnormally, unless there is an acute shortage whereby imports will come in. We are surrounded by countries with excess capacities like Vietnam, Indonesia, Pakistan, Iran, etc. Once imports start coming in then again price correction takes place. I do not feel there will be an abnormal price increase, but the industry has to sustain itself. We have a 330 million-ton capacity in India. This industry needs to sustain itself. There are small companies struggling to keep up with latest tech due to lack of investments. In todays age we have to be very careful and conscious about environment. Ideally, if there is a technology that can reduce emissions, one should embrace that technology. However, if we dont have capital to invest in it, then you continue producing a not-so- clean-product which is bad for industry and is bad for mankind. So it is only in the interest of everybody that price goes up to a sustainable level, where all industries could reinvest into their industry to modernise it, so that we have lesser emissions, cleaner working environment, which is good for everybody -- employees, customers, the whole world. So what measures have you undertaken at BCL plant? BCL is one of the most environment-friendly cement plants in India and globally. It has its benchmark globally. We have the lowest emissions, we harvest rainwater, we recycle water, we have waste heat recovery system, so wastage is kept to a minimum. However, not all companies can afford this. We are a sizeable company; we have reinvested and have continuously upgraded our plants, so we are in a good shape. Not everybody has been able to do it. Coming back to the inputs in the making of cement, you just tied up with Pakistan-based lucky cement One of our major inputs is coal. At the moment we are importing our coal from South Africa. It is always beneficial to partner with people, to create economies of scale. So we are partnering with Lucky cement and others globally to enable us to bring much bigger vessels -- about 120 thousand vessels which we will share. We will tranship between a couple of companies. This is one way of reducing cost. Freight cost is a significant portion of the cost of coal. So if we can reduce this by partnering with a couple of our suppliers it will be beneficial to everybody. So the paradigm shift has been from looking at our industry as competition to partners. So, rather than try and compete with everybody within the industry, we are saying let us partner, let us try and drive economies of scale to reduce our cost. This is the first initiative and we will do more of these on gypsum, fly ash, slag, etc. We have been importing a lot of slag from Japan and we are trying to do this to partly reduce the cost. Any plans for product diversification? We are using fly ash at the moment to make PPC cement. In our other international business like in Dubai, we make various products, since that market is slightly diversified. We make 4-5 types of cement, slag cement, fly ash, limestone, etc. In UAE we have ventured into white cement. So various products in that part of the world. So what are your further business strategies going to be? For India, we are focussing on our core market. I feel that we spread ourselves too thin. Its all going back to supply and demand. I am optimistic that with the change in market dynamics, the demand from our core markets like Rajasthan and Gujarat will be higher and we do not need to spread ourselves further. For me, the idea is to focus on these core markets and on our services within these markets ie, our logistics turnaround time will become much quicker; our dealers will be given much more focus; well consolidate our dealers, give them more tools to do business and give them more visibility. So itll be a focussed branding: both brand marketing and trade marketing to support our distribution channels within our core market. With to develop the country by providing adequate infrastructure. The infrastructure does not exist throughout the north, south, east, and west, which is limiting growth and the ability of rural areas to become more urbanised. Roads, railways, electricity, water are all are linked to cement demand. The Central government should have the will and budget to implement these projects -- thats what we need from them. The state government on the other hand, needs to share that vision and track the direction and budget as provided by the Central government. So the flow of implementation of Secondly, its your input cost vis--vis your selling price. If your input cost is going up at a certain percentage a month, your output, your costs, selling price will go up. I am not saying that prices should be standard across India. India is a vast country, so different costs prevail -- its all about location. But every cement company has to pass on its costs. As an industry we are becoming more and more cost-efficient and focussing on cost-reduction. However, there is a limit you cannot go beyond. It is a very heavy, energy-intensive business. We can drive our energy cost down, we can drive our labour cost down, we can drive our numbers this, I believe we can enhance our loyalty and brand value. We have an extremely strong brand, which is a global brand. However, we havent leveraged it enough. So the focus now will be to leverage the brand value not only in India but globally. In India, service is imperative and we are going to focus on this for the next 3-5 years to stand out as the best service provider and to partner with our major customers and major dealers; and provide exceptional service to infrastructure projects where we supply cement, which will make us a unique player. We have to understand that we are not a mass producer. We are a boutique cement company confining ourselves to just a couple of states and we want to be the best in these two states. So the focus will be on core markets, branding, services; developing dealership network, so that we stand out from the rest and come up as supplier of choice. How are you looking at your overseas operations? We have 3 million ton clinker capacity in the Northeast of China. China unlike many parts of the world is a very fragmented market. So you have different cultures and business practices within China. We are focussing on our core market, which is the Northeast China. We have adequate clinker capacity; however, we are now building our cement capacity. Just recently, we have commissioned 1 million ton grinding unit and we are in talks of acquiring further 2 million ton. So the growth in China will come through cement capacity some of it organic, some of it through acquisition. In the UAE, we are doing a 2 million ton of business. We are setting up a green field plant in Fujairah which is 2.5 million ton. This capacity will be used to service East and Central Africa. So through the UAE we are expanding in Africa. We already have a strong market in Tanzania, we are expanding in Mozambique and going further inland into Eastern and Central Africa. We believe as a company that the future is in Africa. India is our home country, we are an Indian company, so of course 100 per cent focus remains in India. However, for the overseas growth of Binani Cement, East and Central Africa is where the growth will come from. What is going to be your short- and medium-term outlook? I feel that the short-term is going to see some corrections. We are going to see the capacities going up, we are going to see the demand going up. However, prices wont go up significantly because there is still a headroom for 30 per cent of unutilised capacity. For the next 6 to 12 months I see all the players ramping up their utilisation, leading to a marginal increase in price which should sustain all the players. In the longer term, I see additional capacities coming on that will lead to the requirement of investment. In two years time I foresee a 20- 30 per cent rise in the selling price of cement. This will be primarily driven by two factors. One, the demand will overtake the supply, so the prices will naturally increase; secondly, either there will be need for imports or additional capacity. Both will result in a higher demand for capital which will mean the demand for cash, which will lead to the increase in prices. So I foresee medium-term at sustainable price levels, not much increase, may be 5-7 per cent. But 18 months down the line I foresee a 20-25 per cent rise in prices by which time the demand should be higher than the supply.
  • 11. INFRASTRUCTURE September 29-October 05, 2014 4 Massive investment in infra and construction will witness dynamic growth in CE industry How do you analyze the global bearing market for construction equipment? What can be done to enhance productivity and reduce downtime of equipment? Construction and mining equipment cover a variety of machinery that perform various heavy load functions under harsh conditions. Construction operators worldwide are under constant pressure to get the equipment to maintain high productivity and low downtime. In turn, equipment manufacturers are under pressure to produce products with better performance and functionality while complying with emission regulations. For manufacturers, extending service intervals and cutting total cost of ownership are critical success factors. In addition, at the machine level, manufacturers need to manage power more effectively besides having a fast, safe and efficient assembly process to drive productivity, cut total costs and strengthen competitiveness. Backed by unmatched rotating m a c h i n e r y e x p e r t i s e , d e e p construction machinery application experience, unique mix of products, tools and technologies and a global footprint, SKF has been helping OEMs meet these requirements with highly reliable, fit-for-function solutions to meet challenges. Our unique competence for power density improvement includes the use of advanced simulation tools to help us develop solutions with optimal balance between weight/size and energy output. From maintenance-free products to customized, integrated units, SKF solutions can help OEMs develop greener, low to no-maintenance products. What would be the total size of Indian bearing market for construction equipment and SKF solution with its market share? The global rolling bearing market size in 2013 in volume was relatively unchanged year-over-year and remains at SEK 320 and 330 billion. The industrial original equipment bearing markets accounted for almost 40 per cent of world demand and included manufacturers of light and heavy industrial machines and equipment, as well as aerospace, the off-highway and railway vehicles. Asias share of the world bearing market was relatively unchanged and accounted for almost 50 per cent compared with less than 30 per cent 10 years ago. The Indian bearing market accounts for less than 5 per cent of the world bearing market which is estimated to be around 70 billion INR. Which are key drivers to boost construction equipment demand in the next five years? As far as demand for construction equipment is concerned, India is the worlds seventh largest country by area and the second biggest by population, and is one of the most dynamically growing construction equipment markets. Construction comprises the second-largest sector within Indian economy. The construction equipment market in India is expected to witness dynamic growth in the near future due to the massive investment in the infrastructure and construction industry from both public and private enterprises. Bernard Tauveron, Global Segment Manager, Construction & Defense, Business Development & New Market Offering programmes, SKF India Ltd, declares that renewed focus in mega infrastructure projects in sectors like roads, ports, power plants, railways will drive demand for construction equipment, in this interaction with Pramod Shinde. Excerpts: One can expect renewed focus and attention in time to come towards mega infrastructure projects in sectors like roads, ports, power plans and amongst others, which will drive demand for construction equipment. However, some challenges such as scarcity of land for infrastructure development, delay in project clearances, and availability of infrastructure debt funds hinder growth of the market. With right efforts taken to tackle these challenges along with a favourable policy environment, we can foresee boost in construction equipment demand in the next five years. Can you elaborate more about how SKF solution helps construction equipment to perform better under heavy load and harsh condition? SKF is geared up to cater to the demands of construction segment right from design stage to service requirements of end-users. By combining our global technical knowledge together with understanding of local customer demands, we help customers overcome their specific challenges based on our Lifecycle Management approach. SKF Lifecycle Management is our proven approach to optimizing equipment design and operation over its entire service lifecycle. Backed by deep construction vehicle application experience and a wide range of products and solutions, SKF is able to deliver fully integrated, optimized solutions. We provide complete solutions by way of bearings, sealing solutions, central lubrication systems, condition monitoring and design engineering for the off-highway, construction machinery. SKF has a broad range of bearings types like standard tapered roller bearings, cylindrical roller bearings, spherical roller bearings, plain bearings, slewing bearings. Also, we have world-class unique offerings like Y-bearings for agricultural applications; SKF Explorer class spherical roller bearings and application-specific sensorized bearings; all of which ensure reliability and energy-efficiency to OEMs and end-users alike. Our comprehensive range of sealing solutions for off-highway machines ranging from application in engine and transmission, chassis and suspensions, drivelines to undercarriages and hydraulic cylinders, help our customers to reduce weight, noise and simplify installation. By integrating mechanical, e l e c t r o n i c a n d i n f o r m a t i o n technologies, we help customers to design smart products through mechatronics that provide high reliability in harsh environments and reduce maintenance cost. SKF also provides an extensive range of customized lubrication systems which optimize efficiency, reduce maintenance and enhance reliability. Thus, from perfectly adapted, customized solutions to proven off-the-shelf products, SKF delivers solutions that are enabling next-generation performance benefits for construction equipment like reduced fuel consumption, reduced environmental impact, increased equipment service intervals, improved machine health and asset management, improved ergonomics and operator comfort. Which key variants of construction equipment get optimum support from SKF product to increase their reliability? Through our deep construction vehicle application experience, wide range of products and solutions, we have successfully partnered many of the worlds top equipment manufacturers with our fully integrated and optimized solutions that deliver high performance output. We provide optimum support and customized solutions to the whole range of construction equipment like crawler excavators, road rollers, dump trucks, backhoe loaders, wheel loaders, tele handlers as well as tunnel boring machines. SKF product solutions help optimize the asset lifecycle of equipment used in construction sectors please elaborate Industrial operations everywhere understand that effective management of assets throughout their lifecycle can deliver significant value and reduce total cost of ownership. SKF has been at the heart of machinery since 1907. Our history of providing bearings, seals, lubrication, linear motion, actuation and mechatronics solutions for OEMs in every major industry along with construction gives us a unique depth and breadth of knowledge of the assets. SKF Lifecycle Management is a proven approach for maximizing productivity while minimizing total cost of ownership for machinery over every stage, from specification and design to operation and maintenance. From specification, design and development, through to manufacturing and testing, we work with OEMs in the construction industry to solve application challenges and deliver world-class solutions that optimize performance of the equipment. We close the SKF Lifecycle Management loop when we channel our end-user knowledge back into specification phase of next-generation equipment. Technologies, such as condition monitoring, can be designed into new OEM assets or retrofitted, constantly improving and providing differentiation in competitive markets, adding value, and extending the possibilities for aftermarket services and enhanced machinery maintenance. At every stage of the asset lifecycle, SKF products, advanced services and solutions help our customers improve productivity, reduce maintenance costs, improve energy and resource efficiency, and optimize designs for long service life and reliability. This ultimately helps customers to be more successful, sustainable and profitable. Close cooperation with equipment manufacturers and end-users has given SKF a unique understanding of the industry demands. Today, we are leveraging this knowledge to provide value at every stage of an assets lifecycle. SKF Lifecycle Management is our proven approach to optimizing equipment design and operation over its entire service lifecycle. SKF is geared up to cater to the demands of construction segment right from design stage to service requirements of end-users; by leveraging on its strengths of GTCI and Solution Factory in India,along with global expertise and proven solutions based on SKF Lifecycle Management approach. W h a t a r e t h e i m p o r t a n t characteristics of SKF product applications in powertrain chassis, work tools and attachment and engines, etc? SKF offers a wide range of products and solutions for different applications in the construction industry. Each product and solution is specifically designed to meet the challenges of the industry. By design, construction equipment powertrains and chassis components must provide maximum power density and incur minimum power losses even as they operate in harsh environments and endure heavy loads. To be cost-effective, these applications require low-maintenance, high-productivity capabilities that maximize operator comfort and safety. We can meet these demands with a wide range of high-performance, maintenance-free solutions that combine bearing, seal, lubrication and sensor competencies. We offer a complete line of standard and custom solutions designed for harsh environments and high performance. Our applications are maintenance-free and facilitate downsizing which enable cost effectiveness. Backed by our in-depth application knowledge SKF can help OEMs cut product maintenance costs and assembly times Construction work tools and attachments endure direct and constant exposure to the harshest operating conditions on any job site. To ensure productive, cost-effective operation, end-users need attachments with minimum maintenance and maximum service life. To help deliver such products profitably, OEMs need more robust, integrated, pre-assembled solutions. Our solutions for work tools and attachments help drive performance and reliability in the field. Our integrated solutions also help simplify assembly and cut warranty claims and costs. To help address these trends cost-effectively, we have developed a variety of innovative solutions, including sensorized units, ready-to- install multifunctional sealing solutions, and high quality engine seals. Along with meeting environment goals, SKF engine solutions are enhancing performance and durability of construction equipment while cutting total costs. How do you perceive the biggest benefits in terms of cost, energy, minimum maintenance through SKF product application? For construction equipment manufacturers, extending service intervals and cutting ownership costs are valuable market and environmental advantages. Optimizing product functionality in the face of new environmental regulations is challenging, but necessary for success, wherein SKF serves as a technology partner. SKF draws from our deep construction application experience and our unique mix of products, tools and technologies. Working closely with our customer team, we help manufacturers reduce or eliminate the need for maintenance in many applications. From maintenance-free products to customized, integrated units, SKF solutions help customers develop greener, low- to no-maintenance products and cut total lifecycle operating costs. Ultimately, integrated and pre-assembled SKF solutions help drive productivity and profitability for end-users. At machine level, manufacturers are working on ways to manage power more effectively and reduce parasitic losses. SKF has been helping OEMs meet these requirements with highly reliable, fit-for-function solutions. Our unique competence for power density improvement includes the use of advanced simulation tools to help us develop solutions with optimal balance between weight/size and energy output. Thus, SKF knowledge is helping OEMs and end-users both for value optimization.
  • 12. Breaking new grounds and Specification With SKF Life Cycle Management SKF draws on decades of construction application experience and a unique mix of products, tools, services and technologies to help equipment manufacturers and end users optimize the life cycle of construction machinery. We can help you: *NQSPWFNBDIJOFSFMJBCJMJUZ 3FEVDFNBJOUFOBODFDPTUT *NQSPWFFOFSHZBOESFTPVSDFFGDJFODZ &YUFOETFSWJDFJOUFSWBMT 0QUJNJ[FEFTJHOTGPSMPXFSUPUBMDPTUPGPXOFSTIJQ5$0 SKF India Limited Mahatma Gandhi Memorial Building, Netaji Subhash Road, Mumbai 400 002. Tel: +91-22-6633 7777, Fax: +91-22-2281 9074 Toll Free: 1800 222 007, Email: [email protected] CIN Number: L29130MH1961PLC011980 www.skf.com, www.skfindia.com The Power of Knowledge Engineering PUB 45/A5 15126 EN SKF is a registered trademark of the SKF Group | SKF Group 2014 Install commission Operate and monitor Maintain and repair Design and de velop Manufacture and test SKF Life Cycle Management
  • 13. CHEMICALS September 29-October 05, 2014 6 Challenges and opportunities in construction chemicals market With the growing investment in construction that India is seeing, opportunities for the construction chemicals industry to grow row are tremendous tremendou Today is the age of fast track construction in India. Many major construction works have been conceived of and built over the past few years in India and the use of construction chemicals has been a vital part of these projects. The construction of both residential/ commercial and infrastructural projects has seen an immense spurt. Keeping this growth in perspective, much more quality, speed, economy and durability is demanded of construction. These qualities can only be achieved by efficient use of construction chemicals. Even though the economy does seem like it is slowing down, construction continues on. Billions are being invested on upcoming construction projects. This keeps the construction chemical industry growth drive in a positive perspective. Key role to play Essentially, construction chemicals are the link between the chemical industry and the construction industry. By applying chemistry, we facilitate solutions for the construction industry. We play a vital role in improving concrete, waterproofing and protecting its durability and also rehabilitating concrete, when it is distressed. So all in all, as far as concrete construction goes, construction chemicals will always have a key role to play. As per most recent studies, the market size of the construction chemicals industry is roughly pegged at Rs 3,500 crore, and it has potential to grow to Rs 5,000 crore over the next few years if we, as the industry, promote ourselves professionally and increases the level of awareness within the construction industry. The construction industry should be convinced that usage of construction chemicals is a benefit and not undue cost. Positive trend For the past five years the growth rate for the industry is roughly 17 per cent CAGR, based on available figures. The projected growth rate for this sector could be CAGR of over 20 per cent, in the near future. The growth was affected due to the recessionary slump but now the trend is positive. Based on available data and various sources, the major segments of the construction chemicals industry and the percentages they garner over total sales can be seen in the table. Segment of % of Total CC Industry Approx. Sales Admixtures 40% Flooring 15% Waterproofing 15% Repair 10% Tiling, Sealants and Others 20% The growth in the construction industry, combined with increasing demand for faster and safer construction, will propel the growth for our construction chemicals industry. To aid this endeavor, top construction chemicals companies in India joined in to form a strong apex body of the Construction Chemicals Manufacturing Association (CCMA). Voice of the industry The key objectives for our association will be to promote growth of the construction chemicals industry by raising awareness and quality standards and to be a representative body for communicating with government, chambers of commerce regulatory bodies and other forums, local and international. Many raw material suppliers to the Samir Surlaker, President CCMA standardization and transparency. It is with this view that the industry has come together to spread the awareness. From humble beginnings of the CCMA, today we have over 40 members who have an interest in creating a larger awareness of the industry, our technology and application potential. We are firmly on track to take this initiative to the next level, training programmes would be held all over India for applicators because application is a very important aspect of the very success of waterproofing and repair systems. Lastly we plan to establish just and equitable standards and principles in construction chemicals manufacture, trade and commerce and regulate conduct and practice of construction chemicals trade and manufacture. With our brand of C3 seminars (held in Mumbai and New Delhi), we focused on the cause of technical awareness. The participants were end-users, specifiers, government decision makers, etc. These seminars also focus on problems faced by decision-makers to specify and use these products with confidence. International speakers were invited who could instill confidence in our local civil engineering fraternity about benefits of usage of construction chemicals. The success of our seminar series is a good indication that the interest in correct usage of construction chemicals is fast gaining ground due to the benefits in speed, durability and lifecycle costs it provides Bringing awareness Furthering the cause for technical development, a handbook is planned on the correct usage of construction chemicals in collaboration with the Indian Concrete Institute. Attempts are already on way to introduce technical topics in the academic syllabi. Training programmes are in advance stages of design. These roving seminars will be taken to rural areas as well as engineering colleges. Another initiative is to open up local chapters all over India. A further idea was to get a marking on construction chemicals to increase confidence of the end-user. Flagging off the initiative to bring this awareness to smaller cities, the CCMA flagged off its first regional seminar titled C3R at Rajkot, Gujarat, on August 9, 2013 and followed it up with similar C3R programmes at Nagpur and Bhubaneshwar. The theme of the seminars was Methods and Practices on the use of Construction Chemicals. This initiative will be furthered to other cities such as Jaipur in coming months. In a very short amount of time BIS has agreed that the CCMA will be on key IS Code committees to take viewpoint of expert CCMA members in the formulation of codes. With this holistic approach, the industry and awareness about is confident of growing. Tremendous opportunities With the growing investment in construction that India is seeing, the opportunities for the construction chemicals industry to grow are tremendous. Due to efforts of the CCMA, and our member companies, the awareness about construction chemicals and their correct usage is also growing. industry, local as well as transnational companies, have already joined or are actively considering joining the association in the capacity of associate members. With this development, the CCMA is slowly but surely becoming the voice of the construction chemicals industry. With the holistic approach the CCMA is planning, the industry is confident of growing from present revenue to about Rs 5,000 crore in next few years. This is absolutely possible considering the large gap in demand and supply. With the focus on durability, sustainability, Green practices and mitigating lifecycle cost of buildings and infrastructure, construction chemicals can play an important role in overall development of construction. Limited growth The construction chemicals industry, though present for over 30 years in India, has seen limited growth. Even today, with rising awareness of the industry, it is still being dubbed as a sunrise industry. One positive aspect is that with the rising awareness, the industry is poised to grow. In a nutshell, the key challenges to the growth of the industry are: *Low awareness about the correct usage of construction chemicals and their incorporation into general construction. *Standardization of products and systems is a concern, end-users cannot discern or compare systems. *Specifications for use of construction chemicals is still prescriptive. Over time we need to move to performance-based specifications. *The fragmented nature of the industry, with a large number of players in the unorganized sector. Firmly on track The long-term objective of the CCMA in general is to address these challenges. One of the key objectives is to increase awareness in end-users about the correct usage of construction chemicals. We believe this will help us increase the treatment ratio of construction chemicals in construction. Another objective of the CCMA is to create trust in end-users by creating (Contd. on pg 16)
  • 14. September 29-October 05, 2014 7 which can fall into the three main criteria which are explained below. Speed Walplast offers products like ready mix machine plaster, tile adhesives, machine Gyp+ ie machine gypsum plaster, which are changing the definitions of process time and generating large savings. We challenge the traditional process time of plastering by offering a machine for automatic mixing & spraying plaster in less than half the time. We also offer both machine grade and hand mix ready to use plasters (grey and super white). The tile adhesive range offered by Walplast is also improving speed in application, thanks to anti-sag properties and polymer modification of tile adhesives which enable faster work along with excellent bonding and great finishing. Waste Reduction Sand purchased locally has a large amount of impurities and oversize materials. Separation and disposal becomes an expense task. Walplast provides cleaned heat treated sand, separated by multi-sieving, weighed automatically as per formulation ensuring compactness of plaster for water tightness. COMPANY PROFILE Walplast: Its all about 3 winning solutions We all want to win and continuously try to win in all walks of life. But it is a tough job because all our competitors are also continuously trying the same and it is only getting more difficult with time. As said by Shiv Khera, winners dont do different things, but they do things differently. We at Walplast take this message rather seriously and continuously keep taking efforts to ensure that our customers win. The building industry is currently undergoing a lot of stress. Most of the pockets are witnessing more supply and lesser demand. In other areas demands are like hot air balloons with nothing concrete to crack the deal. Besides the economics, the industry is also susceptible to many pressures like loan rates, additions of service tax, Vat, etc where the ultimate buyers are re-thinking and it is weakening the overall buying temperament. Competition is increasing and so is transparency of information because of the multiple free online portals. Buyers actually can surf the net, view properties, actual photos, layouts and get a feel by watching the walk-through video. Strong family-driven emotional newspaper advertising and soft payment schemes for buyers are actually hurting the cash flow of builders. Land owners are aware of the current rates and are holding up till a good price is offered. There are tough times ahead and the belts need to be tightened. But just reducing the cost will not help because the buyer with high general knowledge is demanding more value for money. Buying a dream home has and is always be on the wish list of every citizen of India who has just entered the market. The young buyers are demanding smart features in their home added with latest technology. This actually settles down to better homes at lesser price and fizzing out the profitability of the project. Walplast Products Pvt Ltd offers a classic solution towards increasing value of the product without burning holes in the pockets of both parties. The concept can be explained as follows: Speed Cost Profits Wastage Asthetics Discount Increasing speed of work leads to lesser labour time and therefore reducing cost, enhancing the cash flow. Cutting of wastage delivers directly to the bottom line. Aesthetical beauty replaces discounts and sells property on merit without the need to offer any extra freebies. Purchasing is not about buying products which are lowest in cost, but it is about buying the latest technology products and staying ahead of competition by creating strong value preposition for customers. Though it is the sales & marketing department which is responsible for selling, we believe that it is actually all departments including purchase, quality, planning, etc which build the product and make the job efficient for the sales team. At Walplast, continuous efforts are being taken to fine tune our products Mandar Chitre, Vice President, Walplast Products Pvt Ltd. (Contd. on pg 8)
  • 15. INFRASTRUCTURE September 29-October 05, 2014 8 We contribute solutions that save energy, resources and reduce waste Mott MacDonald is a diverse 1.2 billion global management, engineering and development consultancy. It is one of the worlds largest employee-owned companies with nearly 16,000 staff, with 180 offices in nearly 50 countries and projects in 140. The company is engaged in public and private sector development across a broad range of sectors including transport, buildings, power, oil and gas, international development, urban development, industry, water, environment, education, health and communications. For over 40 years, Mott MacDonald has been helping shape much of Indias transport infrastructure, from airports and metros to ports and transport planning. The consultancy has been providing comprehensive multidisciplinary planning and design engineering on the high profile Delhi Metro project for over a decade. It is also designing and supervising construction of new metros in Bengaluru, Chennai, Gurgaon, Hyderabad, Jaipur and Kolkata, as well as acting as safety advisor on Mumbai Metro. Employing 1200 people in nine offices, Mott MacDonald also operates in the industry, water, environment, education and health sectors. The consultancy is tackling the water and sanitation needs of Mumbai, the worlds fifth most populous city and is also working with the Indian government to identify strengths and weaknesses in the national school system to improve education for 200 million children. Commenting on her appointment, King said, India is a significant market for Mott MacDonald and through the broad range of services we offer were perfectly placed to support public and private organizations on the countrys most significant projects. King is a chartered engineer, fellow of the Institution of Civil Engineers and joined Mott MacDonald over 30 years ago. Most recently she managed the consultancys integrated transport division, which is about connecting local and international communities through multi-modal transport and economic regeneration. Prior to this, she was director of Mott MacDonalds highways division, which offers design, environmental, acoustic and pavement engineering services, as well as public-private partnerships advisory expertise. Earlier in her career she worked in the area of structural durability and repair for multiple clients on operations, critical maintenance, repair and strengthening strategies. Mott MacDonald is a world-renowned consultant in the global market place. For Asian countries, particularly the Indian market, what are your business plans? Asian economies are expected to be amongst the strongest in the world over the next few years. Mott MacDonald has a wide network of established offices across Asia and is therefore well placed to support this growing economy with our wide range of skills in infrastructure, management and advisory. In India, we are perfectly placed to support Mr Modis plans for the country to become a manufacturing hub thanks to our well-established work in the industrial sector. Increased investment in India will also create opportunities for us to grow our advisory and project management businesses. Additionally, we will continue to support our global business through our successful resource centres in the region, thus creating opportunities for local staff to work on iconic international projects. The company is instrumental in shaping Indias transport infrastructure, from airports and Metros to ports and transport planning. Tell us about the projects initiated, completed in India. In India there are currently metro projects being implemented in nine cities Delhi, Bengaluru, Kolkata, Chennai, Mumbai, Hyderabad, Jaipur, Gurgaon and Kochin. Mott MacDonald has a role in all of these. Weve been involved in Delhi Metro for over 10 years. Were now working on phase-3, acting as detailed design consultant for contract CC34, which is part of the Janakpuri West to Kalindi Kunj corridor. This includes construction of underground metro stations at Janakpuri West, Dabri Mor and Dashrath Puri, as well as interchanges with existing elevated metro stations. In addition, we are detailed designer for the Lal Qila, Kashmere Gate and Jama Masjid underground metro stations. These appointments follow on from our award-winning role on almost 40% of Delhi Metros second phase, which included 20 underground and 21 elevated stations, connecting terminals and viaducts. We also worked on the underground section of 27 km Airport Metro Express Line (AMEL) connecting central Delhi via the New Delhi railway station with Indira Gandhi International Airport, consisting of both underground (45 per cent) and elevated sections via four intermediate stations. Mott MacDonald has provided detailed design for Bengaluru Metro, comprising two electrified corridors totalling 38 km with both elevated and underground sections - where weve tackled technical risks presented by poor ground conditions with one Indian-first and one world-first tunnelling solution. Were also providing detailed design for five underground stations, including Majestic interchange station. In Kolkata we provided detailed design services for the structural components of the viaduct and six elevated stations Salt Lake Stadium, Bengal Chemical, City Centre, Central Park, Karunamoyee and Salt Lake Sector V. We are detailed civil and structural design engineer for ten elevated metro stations on Chennai Metro. We are also detailed design consultant for three underground metro stations Nehru Park, Kilpauk Medical College and Pachaippas College and associated tunnels. In addition, Mott MacDonald was recently appointed detailed design consultant for packages four, five and six under a re-tender. Mott MacDonald is reviewing safety assurance for three systems rolling stock, signaling, power and traction on Mumbai Metro. On Hyderabad Metro, Mott MacDonald is providing architectural, structural and public health design services for three interchange stations at Ameerpet, Parade Grounds and the Mahatma Gandhi Bus Station. We are also providing the design for three other stations located at Panjagutta, Hi-Tech City, and Jubilee Hills Checkpost. Mott MacDonald has assisted during the Jaipur Metro bid process, preparing technical documents and reviewing existing work. Meanwhile in Gurgaon we are providing detailed civil and structural design, including architectural and mechanical, electric and public health services, for five elevated metro stations DLF phase-1, Sushant Lok, AIT Chowk, Sector 53-54 Crossing and Sector 55-56 Crossing. In the railways sector Mott MacDonald acted as design review consultant on the Mumbai Monorail, providing technical guidance and identifying all civil and engineering design and construction issues for the substructures, guide way beams, stations and monorail corridor depot. Mott MacDonald is project management consultant for the Sustainable Urban Transport Project in a role spanning five demonstration cities Naya Raipur, Mysore, Indore, Pimpri-Chinchwad and Pune. We are building the institutional strength of urban transport organisations and providing procurement and technical support, covering design reviews, traffic engineering, safety audits and network analysis. Projects include integrated land use planning, bus rapid transit, cycling and pedestrian transport schemes. Our aviation team was lead technical advisor on the upgrade to Indira Gandhi International Airport, delivering Asias longest runway and new terminal complex. We provided master planning, concept and preliminary designs, environmental impact management and traffic forecasting for the 30 year life of the concession. Mott MacDonald also developed the landside master plan and provided infrastructure planning for the modernisation of Chhatrapati Shivaji International Airport in Mumbai and designed the Pakyong Airport in the Indian Himalayas. Pakyong Airport involved the construction of the worlds tallest reinforced solid walls. Your work comes from national and local governments, public and private utilities, industrial and commercial companies, investors, developers, banks and financial institutions. How do you prioritize on each? It is important for us to maintain a very broad range of clients and to work on projects at all stages. This could be helping a client develop a business case through to managing the maintenance and operation of facilities. This approach allows us to maintain a comprehensive understanding of the sectors we operate in, which gives our clients comfort in the knowledge that, by working with Mott MacDonald, they receive best industry practice. We are driven to help our clients develop the best sustainable solutions to achieve their business objectives. How challenging is it for you to advice on planning for large, medium and small industrial infrastructure projects? Industry is the foundation of Mott MacDonalds Indian business and we have been planning and designing industrial infrastructure in India for nearly 50 years. Our clients include some of the worlds largest corporations, including Glenmark, AstraZeneca, Bunge, Laxness and Shell. Projects on which were providing engineering and project management span the pharmaceuticals and biotechnology, textiles, chemicals, rubber, metals, food, automotive and petrochemicals sectors. We are contributing solutions that save energy and resources and reduce waste. What is your observation on Indian construction practices? Through what means they can be upgraded? Mott MacDonald is one of the founding members of the Consultants Health and Safety Forum, which has a worldwide remit and works to raise standards and advance best practice. Through this, we strive to improve health and safety management on Indian construction sites to make the industry a safer place to work. The west is increasingly adopting the practice of off-site manufacture and assembly, which has been proven to improve safety as well as save money, construction time and carbon. Mott MacDonald is keen to introduce such practices to India on the right projects. What is your view on the upcoming infrastructure developments in the country? India has a large, rapidly growing population with increasing urbanisation, so effective transport links will be a vital facilitator to continuing economic and social development, both within and between cities. Indian authorities in each city should be developing transportation masterplan that will enable transport provision to be planned into the future in such a way that will support sustainable development. Liz King, MD, Mott MacDonald Consultancy, South-East Asia shares with Remona Divekar the companys plan for Indias infrastructure from airport and metros to ports and transport planning in its multiple construction projects, such as new Metros across Bengaluru, Chennai, Gurgaon, Hyderabad, Jaipur and Kolkata. Excerpts: Polymers are added which gives work ability and generates negligible wastage due to reduction in rebounding losses. Masterplast, another product developed by Walplast is a plaster additive. This product creates magic in application of manual plastering by giving workability, comfort to applicator by minimizing wastage and giving a great working mix. Aesthetical enrichment Walplast offers one of the top qualities of wall putty. Whiteness and surface finish of the putty can substantially enhance the effect of paints. Scratch-X texture gives excellent finish and protects the surface. Limeplast does not need any additives and is widely used in many markets. Applicators have been creating different patterns and have got a great product to enhance their artistic skills. Walplast also makes colour putty which has two applications. It can be used in garages, parking lots, etc, where expensive paint need not be used for finishing. In high-value apartments, where expensive paints are used, colour putty is an excellent solution which does not spoil the looks in case of scratches, because the putty below the paint is colored and not white. The company Walplast, was established in 2004 by our founder & CMD Ashok Mehta. In just a decade, Walplast has become a well-known brand in the construction segment and is an ISO certified Indian-multinational having manufacturing facilities at six strategic locations (Maharastra, Gujarat, Madhya Pradesh, Chattisgarh Rajasthan and Tamil Nadu). Each factory is equipped with state-of-the-art R&D laboratories which comply with international standards. Our products qualify to parameters specified by Singapore housing board and also the European and American standards. We are currently exporting to countries like UAE, Africa, Singapore, Europe, Nepal, etc. Walplast products are keen to help the construction industries all over the world by giving them speed, waste reduction and aesthetic enhancement. At Walplast, it is all about wining with these three solutions and staying ahead of time. Walplast... (Contd. from pg 7)
  • 16. September 29-October 05, 2014 9
  • 17. REAL ESTATE September 29-October 05, 2014 10 Housing and high urban growth India would require about 11 crore housing units on a pan-India basis by 2022 Ministry of Rural Development and the Ministry of Housing and Urban Poverty Alleviation, it is estimated that almost a quarter of Indian households lack adequate housing facility. Housing in India varies significantly and can reflect the socio-economic mix of its vast population. In the last decade, there has been tremendous growth in the countrys housing sector, along with demographic changes, rise in income, growth in the number of nuclear families, and urbanisation. Several issues such as the absence of an effective policy framework for Economically Weaker Section (EWS) and Lower Income Group (LIG) housing, which is compounded with rising land cost, spiralling construction costs, and inadequate availability and reach of micro-finance measures. Affordable construction Every developer goes through a long gestation period of six to eight years of housing projects, accentuated by multiple approvals to be obtained from multiple authorities in a two to three years time frame. On the contrary, developers wish to participate in large scale affordable housing construction provided government takes pro active steps. Currently and in past the government is taking piece meal actions, which will not help the sector much. There are reports on record of government appointed committee on affordable housing. Now government needs to act. Major concerns are: lack of coordination between Central and state ministries, regulatory reforms with a view to substantially increase the housing development capacity with respect to construction capability, labour availability, construction material, and housing affordability. Inadequate long-term funding across the project life cycle necessitating multiple rounds of funding for the same project has increased the cost of capital and time. Further, the funding is not available for acquiring of land from banking sources. Rationalize multiple fees and taxes across project a stage which inflates construction cost by 30 to 35 per cent. High rate of migration from rural areas is stressing the limited urban infrastructure; sub-optimal usage of urban land (low FAR/FSI) has resulted in raising the cost per unit of built-up area. Grant infra status Its high time that government should grant infrastructure status to the real estate and affordable housing sector, as housing development involves undertaking large scale urban infrastructure development projects. It involves purchasing of land and developing it for the purpose of construction of houses, multi-storied buildings, and creation of physical and social infrastructure. Hence, housing development has dramatic similarities to the infrastructure sector. PPP projects can play an important role in bridging the gap between the housing need and supply as they can be instrumental in attracting private capital for financially viable affordable housing projects. The PPP framework can be effectively used to address some issues in housing development such as land availability, approval delays, funding, and affordability by the poor. Simplify structural and procedural frameworks. This could help expedite decision-making and reduce lengthy procedures of introducing reforms. However, despite 74th Amendment in the Constitution of India, directing states to delegate powers to ULBs, several states have not taken the necessary steps. A push to decentralise decision-making is required from central government which can be done by either persuasion or offering incentives to willing states. These measures can be done by using various housing and urban infrastructure programmes such as Rajeev Awas Yojna (RAY); Indira Awas Yojna (IAY) and Jawaharlal Nehru National Urban Renewal Mission (JNNURM). Streamline approval process Streamline the approval process by introducing single window clearance mechanism backed by technology. The current approval mechanism in many states is a complex process, as on an average a developer requires 30 to 40 different approvals from central; state; and ULBs. Further, multiple factors add to the existing complex process leading to uncertainties and delay in building approvals. It is estimated that it takes about two to three years to obtain necessary approvals which increases housing development cost by 20 to 30 per cent. The delay is primarily due to factors such as duplicity due to overlapping regulatory jurisdiction of various authorities, lack of institutional clarity which is open to individual interpretation, involvement of multiple departments, weak allocation of responsibilities and accountability, etc. I am very optimistic. With Narendra Modi as Prime Minister, I hope the governance will be smart and economy will grow double digit. I see exponential growth in the real estate sector. Something which India has never seen yet. BAUCHEMIE MC-Torkrethilfe be/ centrament rapid 640 Chloride-free guniting aid/alkali-free shotcrete accelerator MC-Torkrethilfe BE is a chloride free guniting aid in a powder form specifically developed and designed to meet the demand for efficient and multifold properties desired at guniting job sites. MC-Torkrethilfe BE is suitable as an admixture for all sprayed concrete and shotcreting operations. MC-Torkrethilfe BE accelerates the rate of hardening and development of strength. By virtue of its formulation, it waterproofs the mix and renders the sprayed mortars substantially impermeable in addition to plasticizing the mix. MC-Torkrethilfe BE is formulated with carefully selected raw materials in view of making it suitable for use in most of mortar and concrete mixes, in which the use of calcium chloride or similar substances is undesirable. MC-TorkrethilfeBE accelerates the The real estate sector is of strategic economic importance to India, as it is the second largest employment generator after agriculture and contributes about six per cent to Indias GDP. The sector with its backward and forward linkages to 250 ancillary industries has the potential to generate significant employment opportunities and provide a quantum jump to the Indian economy. Accelerating the growth in the sector can help turn-around the sluggish GDP growth witnessed in the past few years. India would require about 11 crore housing units on a pan-India basis by 2022. A demographic trend suggests that India is on the verge of large scale urbanisation over the next few decades. With more than one crore population getting added to urban areas, Indias urban population is expected to reach about 81 crore by 2050. Tremendous growth Housing, a basic need for humans, could play an important role in accommodating high urban growth in India. As per studies conducted by the Lalitkumar Jain Chairman, Credai and Chairman & Managing Director, Kumar Urban Development Ltd (KUL) rate of setting by plasticizing property thereby making the concrete and mortar rode hard enough minutes after spraying. It will seal the water seepages from the ground water in tunnels, galleries, drifts and shafts. It provides high early and final strength, allows overhead guniting aid, provides improved bonding properties, can be used at lower temperatures, allows spraying on moist surfaces; allows thicker layer in single operation and reduces material losses caused by rebound. It has been approved officially (PA VII-5/114 BE) as chloride free guniting aid. Centrament Rapid 640 is a liquid, alkali-free setting accelerator for shotcrete applied by dry- or wet-spraying. The dosage depends on the concrete- and ambient temperatures, as well as on the desired curing-behaviour and the reactivity of the used cement. Overdosing can lead to delayed curing and reduced early and final strengths. Nisiwa SH Silicone based, ready-to-use, colourless, hydrophobic impregnation with deep penetrating property Nisiwa SH is a silicone based, solvent free, ready to use, colourless, hydrophobic impregnation with deep penetrating property. Its inherent formulation gives it excellent water repellent properties. Nisiwa SH does not seal the surface of the pores and maintain original breathing capacity of the applied surface. It prevents efflorescence and fungus growth and provides optimal protection of facades from pelting rains, precipitation moisture by virtue of deep penetrating capacity and leaves the interior portion dry under all weather conditions. Through this process of prevention of transfer of moisture to interiors, an efficient waterproofing and damp proofing is obtained during spring as well as winter season.
  • 18. September 29-October 05, 2014 11
  • 19. September 29-October 05, 2014 12 Smart City a city with IT as principal infrastructure actively involved in energy saving and plementation of n echnologies With Elkem Microsilica your towers can now safely touch the sky. R igh-rise buildings demand high-strength concrete, especially for columns. Elkem Microsilica is perfect for high strength columns of high rise structures, offering massive savings from the reduced consumption of steel, reduced formwork, reduction in concrete sections and reduced dead load on foundations. In addition, Elkem Microsilica's very high pozzolanic reactivity ensures high early strength gain in concrete, resulting in high speed construction. Saving time as well as money. Moreover, when PPC or slag cement is the only option, incorporating Elkem Microsilica helps to offset disadvantages such as the 3 consumption of more cement per m for an equivalent grade of OPC concrete, the slow rate of gain in strength and the consequent extension of the construction cycle from having to keep the formwork in place for a longer period. Landmark structures Such as Burj Khalifa, Jumaira Beach residences - Dubai, Four Seasons Hotels And Condos - Miami, 2 Union Square - Seattle, One Island East - Hong Kong, Ceylinco Celestial Towers - Colombo, Marathon Nextgen, Palais Royale, World One, Minerva Tower, Oasis Tower, Four Seasons Hotel, Mindspace - Mumbai, Supernova at New Delhi, Olympia Tech Park and AMTI Park - Chennai, IBC knowledge Park - Bangalore are Standing testimonials to the cost efficiency of Elkem Microsilica. And that's not all, Elkem Microsilica renders concrete highly resistant to water penetration, Making It ideal for use in foundations and basements. Add to that its enhanced resistance to sulphate and Chloride-induced corrosion and you have a winning combination. So is it any wonder that Elkem Microsilica has rapidly become the material of choice in major projects the world over? Remember, when you choose Elkem, you are connected with the world's largest manufacturer of microsilica. Elkem, a member of Bluestar Group, has production plants in Europe, North America, South America and Asia, Plus a comprehensive network of sales offices, agents and distributors, Covering the world's most important markets and offering customers a complete package of high quality materials, expert advice and sincere guidance on how to get the most out of available resources. A Bluestar Company The original Microsilica. For enduring success stories. rd Elkem South Asia Private Limited: 307/308 - B Wing, BSEL Tech Park, 3 Floor, Sector - 30 A, Vashi, Navi Mumbai - 400 705. Tel.: +91 22 6776 1900, Telefax: +91 22 6776 1999. Email: [email protected] Website: www.concrete.elkem.com The success of such a city depends on its residents and entrepreneurs becoming implementation new technologies Across the world, the stride of migration from rural urban areas is increasing. By 2050, about 70 per cent of the population will be living in cities, and India is no exception. India will need about 500 new cities IT as principal infra The announcement of 100 smart cities falls in line with this vision. A smart city is an urban region that is highly advanced in terms of overall infrastructure, sustainable real estate, communications and market viability. It is a city with information technology as its principal infrastructure and the very basis for providing essential services to its residents. There are many technological platforms involved, including but not limited to automated sensor networks and data centres. Though this may sound futuristic, it is now likely to become a reality as the smart cities movement unfolds in India. A smart city offers a superior way of life to its denizens, and one wherein economic development and activity is sustainable and rationally incremental by virtue of being based on success-oriented market drivers such as supply and demand. They literally benefit everybody, including denizens, businesses, the government and moreover the environment. Concept origin The concept of smart cities originated at the time when the entire world was facing one of the worst economic crises. In 2008, IBM began work on a smarter cities concept as part of its Smarter Planet initiative. By the beginning of 2009, the concept had captivated the imagination of various nations across the globe. Countries like South Korea, the United Arab Emirates and China began to invest heavily into research and the formation of smart cities. Today, there are a number of excellent precedents that India can emulate for its own smart cities programme: Smart City Vienna in Austria; Aarhus Smart City in Denmark; Amsterdam Smart City; Cairo Smart Village in Egypt; Dubai Smart City and Dubai Internet City in the UAE. Smart City Lyon in France; Smart City Mlaga in Spain; Malta Smart City; The Songdo International Business District near Seoul, South Korea; Yokohama Smart City in Japan; Verona Smart City in Italy. Indian smart cities In India, the proposed smart cities include Kochi in Kerala, Ahmedabad in Gujarat, Aurangabad in Maharashtra, Manesar in Delhi NCR, Khushkera in Rajasthan, Krishnapatnam in Andhra Pradesh, Ponneri in Tamil Nadu and Tumkur in Karnataka. Many of these cities will include special investment regions or special economic zones with modified regulations and tax structures aimed at making is easier and more attractive for foreign companies to invest in them. This is an essential factor for success for smart cities in India, because much of the funding for these projects will have to come from private developers and from abroad. The smart city concept is not without challenges, especially in a country like India. For instance, the success of such a city depends on its residents, entrepreneurs and visitors to the city becoming actively involved in energy saving and implementation of new technologies. There are many ways to make residential, commercial and public spaces sustainable by ways of technology, but a high percentage of the total energy use is still in the hands of end users and their behaviour. Also, there is the time factor such cities can potentially take anything between 20-30 years to build. Anuj Puri Chairman CII Real Estate Summit 2014 and Chairman & Country Head, JLL India INFRASTRUCTURE to accommodate the rapid influx of population into its urban regions. Interestingly, urbanization in India has for the longest time been viewed as a byproduct of failed regional planning. Though this is inevitable, and will only change when the benefits of urbanization overtake the costs involved, it is an opportunity for achieving faster growth. With increasing urbanization and the load on the land in rural areas, the Indian government has now realized the need for cities that can cope with the inherent challenges of urban living and also be magnets for investment to catalyse the local economies.
  • 20. September 29-October 05, 2014 13 Low-cost urban housing a reality check Some major factors would play a pivotal role in making affordable housing successful in India In its rawest definition, it refers to housing units that are affordable by that section of society whose income is below the median income a household should have. According to a lot of data available in the public domain suggests that urban population will increase manifold in years to come. Presently, 54 per cent of global population resides in urban areas, which is expected to increase to 66 per cent by the year 2050. The situation in India is as follows: *Estimated shortage of 26.53 million units *8.2 Million households in 640 cities living in slums *Cities like Mumbai have added on average 6,700 units a year in the past 30 years On developers side, the following points should be taken into consideration: *Lack of urban land *Regulatory Hurdles *Rising costs of construction *Lack of real skilled labour From buyers side, the following points need consideration: *Lack of availability of home finance *Delivery time With a majority government now at the Centre, and its long term goal to provide housing for all by 2022 to a major section of society, and also its emphasis on transparency in regulatory procedures and interest in skill development are all positive steps towards affordable housing. The Reserve Bank of Indias announcement of a raft of measures will encourage bank lending to this segment. The RBI has said that in addition to small value loans, home loans to individuals up to Rs 50 lakh (for houses of value up to Rs 65 lakh) in etros and loans up to Rs 40 lakh (home value Rs 50 lakh) in other centres will be considered as affordable housing. Extending these loans will entitle banks to float infrastructure bonds up to seven years. Money raised under these bonds will not be subject to reserve requirements such as cash reserve ratio (CRR) and statutory liquidity ratio (SLR). Eligible bonds will also get exemption in calculating priority sector lending targets. Another positive for affordable housing is the slew of new construction technologies being adapted in India. There are a lot of technology options available for various elements of building construction, leading to cost effectiveness at the same time, but not affecting performance characteristics expected from a decent housing project. One of the projects worth mentioning is a slum rehabilitation project by Omkar realtors at Bhoiwada, Mumbai. Constructed by L&T, it uses a precast technology and its the first such 23-storey building in India. There are a lot of other technologies like aluminium shuttering, precast wall partitions, concrete hollow blocks, readymix mortars, exterior textures, etc to speed up construction activity and achieve project completion in at least 40 per cent less time thus achieving a lot in cost savings and delivery time. All these factors would play a major role in motivating all parties involved in making affordable housing successful in India and hence make affordable and acceptable housing a reality for the vast majority of low income group of people. Maulik Tolat Synapse, INDICON REAL ESTATE
  • 21. September 29-October 05, 2014 14 A conscious architect would not blindly add to carbon footprint Tell us about your early beginnings as a student of architecture and as a practicing young architect. Which was the first project you undertook? After I graduated from the Centre for Environmental Planning & Technology University (CEPT), an academic institution in Ahmedabad in 1997, I worked for four years with architects like Ashok Lall in Delhi and Georg Leuzinger and Sudhakar Pai in Bengaluru. In 2002 I started practising on my own. My first project had already started when I was working with Georg Leuzinger under whom I cultivated my love of construction and detailing. It was design of residence-cum-studio unit for a renowned artist couple Sheela Gowda and Christoph Storz Whats the total number of projects you undertook in the past 10 years? Would you like to highlight a few, such as 1 Shanthi Road Gallery and a couple of others? During the past 12 years we have successfully executed about 50 Architect Meeta Jain has been independently practicing as an architect & designer in Bengaluru since 2002. She designed the award winning 1 Shanti Road Gallery, and is the founder of MapBee, a collaborative interdisciplinary practice driven to envision and facilitate making of mobile structures and spaces addressing diverse needs and purposes. The question of global warming is a very complex and critical one as it is linked strongly to environmental preservation, says Meeta Jain in this interview with Dilip Phansalkar. Excerpts: projects, largely consisting of full-fledged residences and interiors, living communities, corporate office interiors, and small art institutions. Through a parallel practice of ours called MapBee, which is driven to work for spaces for change, we have worked on collaborative projects with artists, citizens groups, educational groups, etc to create new space models. What are your high-priority considerations when selecting building materials and colour schemes for your projects? We work with natural materials to maximum, seeking to express each ones true character. The colour scheme largely comes out of natural colour of materials. And when it does come to painting walls, a tendency for more and more muted and earthy palette with a few bright highlights as per the specific need, governs our work. Why is aluminium gaining more popularity over steel as preferred building material? Aluminium is a high performance material. Its very strong for its weight and is gaining popularity primarily because of its maintenance-free character. For this reason mainly it could be used for large external openings, where wood sometimes looks expensive and hard to maintain. In economies like India where reuse industry is vibrant, aluminium has a resale value too. However, it should be used with great awareness as its not a sustainable material in long run and its current trend of using it for extensive cladding buildings is pointless. How critical is it to understand local construction techniques which enable to deliver a robust final product? Good knowledge of local construction techniques is not only a gesture towards contributing to local economies, but also a cheaper and sustainable way of working. A building is always a public face too and hence it owes this to a place when its able to reflect back something of the land it belongs to. A truly innovative architect would be constantly be on the lookout for local building techniques, and finding unique ways to integrate them in ones work, making a building rooted to a context. Adopting this approach is more critical than ever, as we see characterlessness growing rapidly in our urban environments. To create a sense of living, Green network and built environment should be integrated into one. What is your observation? Design of cities and its experience largely lies in its street edges, that is, primarily the pavement. A pavement is a microcosm on its own, fulfilling its unique function like enabling pedestrians, cycling tracks, vendors, benches and most importantly trees. Thus, the minimum width of a footpath is a critical issue and has to be such that it enables all of these elements to find space harmoniously and support a healthy pedestrian life as well as its maintenance. This and this alone can save our cities, other than sufficient number of inclusive public spaces. How important is the relationship of the built to landscape in the design? Infinitely important! The concept of frameless structural glazing (Spider facades) is increasingly being adopted in modern-day building structures. Would you like to comment on the trend? Spider clamp is essentially a well=engineered component to support large frameless fixed glass surfaces. Again, its use has to make sense with the amount of glass one should use. How does architecture influences all aspects of built environmen