Professional Documents
Culture Documents
NBMCW July 2020
NBMCW July 2020
As per economic experts and research agencies, the first half of FY 2020-21 has been a wash-out, and in
the third quarter too we will see limited economic activity. There is hope, however, for the fourth quarter,
which could bring back some confidence to recover our losses of the first three quarters.
How badly is the Indian economy hit? There is no clear answer, but experts are of the view that the
Indian economy will shrink between 4 to 8 percent.
I believe that we have experts to advise the government rationally and wisely on how to minimise the
adverse effects of the current, unprecedented situation. But first we have to come out of denial mode
and accept the bitter fact that the country is facing a strong economic tsunami.
In the past three months, I have been engaging with a large number of industry stakeholders on various
webinars and forums, where almost everyone was talking very cautiously on the current situation but I
think that people in the construction sector should be more vociferous in their suggestions and requests
to the government if they want their business to bounce back quickly.
We must understand that we are the backbone of the Indian economy and are literally the nation’s
builders; we should not hesitate to speak boldly and voice our demands, while assuring the government
of our full support in making India a powerful nation in the years to come. In the current financial crisis,
our demands might be a bitter pill for the government to swallow, but that is the only way to cure the
deteriorating health of our economy.
I have been closely watching the growth and technological developments in the infrastructure and
construction equipment sector for 27 years. I feel that mediapersons reporting on Covid-19 should stop
dramatizing the situation as this is creating fear among the citizens, and this fear factor will hold back
a quicker economic recovery.
We have to come out of this tough situation, hence, we need to make an objective assessment of
the resources available to us, analyse the pros and cons of the options before us, and then use all
our intellectual, physical and material faculties to keep afloat in order to survive the turbulences of
FY 2020-21.
Some good news has been the bumper crop that India has witnessed for the last few years. The
government should give as many sops as possible to build the agriculture infrastructure on a war
footing, since the agri sector generates the maximum number of jobs for the unskilled labourers.
Similarly, in the mining sector, we have enough reserves of coal and other minerals that if we prioritize
this industry, we can reduce our dependence on imported coal and other minerals. In this regard, the
announcement of the auction of 41 coal blocks for commercial mining is a welcome move as the Union
Government has shown its intent towards the much-needed ‘privatisation’ of coal mining.
However, in order to leverage our agriculture and mining capabilities and their subsequent growth, we
need to have a robust rail, road and irrigation infrastructure, which are the second highest job generators.
If we put our maximum resources into these sectors, consequently, other sectors will also begin to feel the
positive impact, and also see resultant growth.
Many international companies are planning to decentralize their manufacturing from China and looking
for other low-cost manufacturing hubs. For many multinationals, India may be the best bet, but their
priority is ease of doing business, single window clearance, friendly government policies, a conducive work
environment, and so on, which may currently be relatively difficult for India. India is facing competition from
many small but emerging Asian economies like Vietnam, Cambodia, Thailand, Bangladesh, Malaysia, and
Indonesia as their production cost is cheaper, and being small countries, the business modalities of setting
up and operating a facility are easier to manage at the government level. Between 2018 and 2019, of the
56 companies that moved out from China, 26 went to Vietnam, 11 to Taiwan, 8 companies moved base to
Thailand, and 3 set up their base in Bangladesh. Meanwhile, only 3 companies moved to India during the
same period.
In India, our infrastructure construction industry can attract multinationals, not only to invest in projects, but
also in building materials and equipment manufacturing. We are not only a big market but also have a highly
skilled workforce, along with our strategic geographical locations, our high domestic consumption, and
our large reserves of natural resources – all of which can make us a strong manufacturing cum export hub.
Industries and economies cannot be run on emotions. Rather than simply calling for a boycott of Chinese
products, we should expand our product development capacities and capabilities- just the way the Chinese did
from 1985 till 2005. In the mid-1980s, they opened their doors to investments by anyone from anywhere, but
with a well-planned strategy; they let all international businesses thrive in their country for the next 15-20 years
and alongside began to invest in R&D and in helping entrepreneurs to set up industries. Most importantly, the
Chinese government helped these new mushrooming industries to not only become competitive, but to also
dream big like the foreign multinationals. And in just 20-30 years many Chinese companies have acquired
many of the world’s top brands like Schwing, Putzmeister, Wirth ….the list is quite long.
My contention is that we must keep our emotions aside and learn to invest in R&D, build capacity; focus
on quality, promote aggressively, then outpace and outbid global products - not only in India but across
the world. To become a truly industrialized country we need to “be competitive”, and since India is a young
country, we have a large employable workforce and at a much lower rate of hiring. We need to set a target,
ask the government to set policies for investments in R&D, and to help and support entrepreneurs to set
up shop.
With every Anniversary of NBM&CW, we review the year gone by, and are grateful for the opportunity to know
and work with wonderful people like you. I, along with my Team, thank our readers and advertisers for their
unconditional support over the years and especially during this pandemic that has caused unprecedented
havoc across the world.
Hope you will enjoy our 26th Anniversary issue and do send your feedback and suggestions at
editor@nbmcw.com.
S. A. Faridi
Managing Editor
129 Time for Construction Equipment Rental Industry to Partha Pratim Basistha – Associate Editor
20 Future of India’s Real Estate Market Post-COVID-19 – CBRE Reinvent Itself - CERA
S. K. Khanna – Senior Correspondent
Varsha Trehan – Special Correspondent
34 KYB Conmat Concrete Mixer creating a benchmark in the News Sumit K. Srivastava, M. +91-98119-22907
E-mail: sumit@nbmcw.com
construction of Nepal's Nagdhunga-Naubise tunnel 140 Infra Development 142 Metros & Railways
road project Gujarat
140 Roads & Highways 143 Airports Krishnakant Panchal, M. +91-98982-22244
38 Sandvik CovidAssist Package for Crushing & Screening 141 Tunnels & Bridges 143 Industry
E-mail: panchal@nbmcw.com
plant users Circulation
Subscription Form-------- 103 Geetika – Manager Circulation
126 Wirtgen's MOBISCREEN EVO screens in action Advertisers' Index--------- 104 Shaifar K.
Production
40 Construction Industry - Economic Disruptions, Growth Prospects, and the Way Forward 90 Puneet Vidyarthi, Brand Leader, CASE India
Azhar Abbas Abbasi – Head - IT
81 Raj Pillai, MD, Starworth Infrastructure and Construction 120 Ramesh Jayaram, MD, Parijatha Machinery published by Mumtaz Ahmed Faridi, on behalf of NBM Media
Pvt. Ltd., and printed at Samrat Offset Pvt. Ltd., B-88, Okhla Ind.
86 Sorab Agarwal, ED, Action Construction Equipment 122 R. V. Panchal, MD, Neptune Industries Area, Phase-II, New Delhi-110020 and published at B-27,
Nizamuddin (West) New Delhi-110013, editor S. A. Faridi.
88 Kshitish V. Nadgauda, Senior VP & MD Asia, Louis Berger 124 Vikas Kumar Mittal, MD, Nova Formworks All Rights Reserved. Copyright© 2011 NBM Media Pvt. Ltd.
Reassessing India’s
Infrastructure
Needs & Demand
Clearing the clu�er in the
infrastructure space, clarity
in policy by the government,
and a more efficient legal
system to expedite dispute
resolu�on are the key
elements for a vibrant
infrastructure sector of
the future.
Elias George, Partner and Na�onal Head - Infrastructure,
Government and Healthcare, KPMG in India
I
nfrastructure is the backbone of any economy as
the extent and quality are amongst the most crucial
characteristics defining the productive capacity of a
nation. In fact, quality physical and digital infrastructure
have a major impact on productivity and inclusivity within an
economy. One of the major differences witnessed between
the developed and developing world is the stark difference
in infrastructure capacity, which inhibits the productivity of all
its people further leading to loss of economic opportunities.
Infrastructure Creation: Quality &
Sustainability
Countries with strong physical infrastructure can sustain
dense populations in comfort and can ensure a lower cost
of transaction for people as they exchange goods and
information. This, as a central theme and thought, is not lost
on the Indian planners’ mind and hence, there will continue
to be a sustained focus on creation of quality infrastructure.
Research suggests that the world is on the path to face a
USD 15 trillion deficit in infrastructure by 2040 and India is part of
the group that faces major shortages in infrastructure provision.
The domestic economy, which is now in midst of an unprecedented shock,
with economic growth anticipated to fall at a fast clip during the year, can witness
a number of scenarios playing out in the coming times all dependent on the effects of the
fiscal and monetary stimulus. This too will have a major impact on how infrastructure creation
takes place. However, one aspect is clear, we need to live more lightly on the planet and
infrastructure creation also needs to be looked at with fresh eyes.
We will need to find new ways of ensuring Cab aggregation services in urban related events along with an estimation of
the greatest good of the greatest number public transport and online community future challenges is likely to result in the
and focus much more on preserving that marketplaces connecting people looking creation of more sustainable and resilient
ever-diminishing thin layer of soil and to rent homes, and options to rent empty infrastructure.
sea and sky which sustains life on the homes for vacations could lead to reduced Opportunities for Bridging
planet. The central idea has to be about demands on infrastructure that needs to be India’s Infrastructure Gap
building infrastructural assets that are freshly created in these domains.
In the near term, we are only likely to
robust, resilient and intelligent while also Shift towards greener, see construction of infrastructure that
being more sustainable by virtue of being sustainable, resilient is deemed necessary or critical for the
better integrated with local environments, infrastructure functioning of the society. As we move out
including the communities around which
There is also likely to be a shift towards of the lockdown and come back to normalcy
they are located.
green infrastructure, at least in the cities there is a possibility that people reconsider
Evolution of fourth generation that have become a hotbed for virus their economic demands, which may result
technologies transmission. Some of the best examples in a reassessment of infrastructure needs
Infrastructure in the coming time will of green infrastructure are permeable and tone down the overall demand.
inherently have digital qualities and surfaces, green roofs and walls. These That said, the dual shock to demand
also be compatible with other emerging have a number of benefits such as reduced and supply in the economy, dealt by the
technologies, in fact, it would imbibe some energy demand, improved storm water pandemic, will mean lesser credit demand
of the key advantages that we derive from management and are more eco-friendly by overall from the system and the continuance
newer technologies. The evolution of being carbon efficient. of lower interest rates for an extended
fourth generation technologies like Artificial The pandemic is just the latest in the period of time in the Indian economy.
Intelligence, Internet of Things (IOT) and long list of disasters that have affected Further, global investors would be looking
Big Data have already shown the benefits the economy over the past few years. towards countries such as India to create
in the form of more efficient infrastructure. Given the situation on climate change, assets that support growth while also
For instance, the embedding of cheap we are likely to see increasing incidences provide investment avenues for savers.
IoT devices has opened possibilities of of natural disasters, which increases the With the government looking at ways to
creating lighter infrastructure which can need for resilient infrastructure creation. effectively mobilise savings into productive
be better maintained as IoT devices are According to the UN’s 2019 Asia-Pacific usage, this could potentially be a golden
able to dynamically send data regarding Disaster Report, 28 per cent of energy, 30 opportunity for the domestic infrastructure
the health of the structure or system. per cent of transport, and 34 per cent of sector. As such, despite the negative
Analyses of traffic patterns via big data has ICT infrastructure are exposed to multiple effects of current crisis, the current global
enabled more efficient creation of physical hazards. With increasing and potentially and domestic scenario offers India a fresh
infrastructure such as bridges and housing overlapping risks, governments have start towards bridging its infrastructure gap.
assets across cities resulting in positive no choice but to create more resilient The Central Bank has already expanded
social outcomes. development rather than just cover the liquidity in the system to ensure that
Shared models of consuming services are deficits in infrastructure. firms do not starve for want of liquidity
increasingly becoming popular thanks to Infrastructure creation is likely to be and money flows smoothly into sectors
internet connectivity and a new mindset of more risk informed and in consonance where there is actual need. However, one
the younger generations, some of whom with the contours of a particular region. A must be cautious as there also needs to
prefer experiences rather than ownership. combination of looking at previous climate be prudence in lending especially as the
banking system is still dealing with a huge
load of NPAs from previous excesses.
The Indian economy can benefit immensely
in a world of collapsing fixed income
returns as the economy can be one of the
first large economies to recover from the
ongoing crisis. Clearing the clutter in the
infrastructure space, clarity in policy by
the government and a more efficient legal
system to expedite dispute resolution are
the key elements for a vibrant infrastructure
sector of the future.
I
ndia’s real estate market has grown tremendously in the past
decade. Robust occupier interest, the rise of organised real
estate developers, and the entry of institutional capital have
acted as catalysts for the growth. Owning to the current situation
and fluidity of COVID-19, the way we will live, work and play in
the future is likely to undergo unprecedented transformation.
However, this could be viewed as an opportunity to influence
the future—and undergo focused innovation.
Recent years have seen the development of a wide range
of technological solutions enabling companies to enhance
resilience, maintain stability and ensure business and real
estate continuity. The adoption of the digital tools has been
gradual in some companies as they lacked the urgency
or compelling reasons to alter their approach. However,
COVID-19 has re-aligned companies to adopt digital solutions
at an unprecedented pace in recent months, with the outbreak
appearing to be a catalyst for change.
Anshuman Magazine, Chairman &
CEO, India, South East Asia, Middle Commercial real estate to remain robust and
East & Africa, CBRE evolve
Commercial Real Estate has witnessed strong interest from
sectors such as technology, banking, financial services,
research, and consulting coupled with operators providing flexible space resulted in a
sustained annual growth in office absorption. In 2019, gross office space absorption crossed
the 60 million sq.ft mark for the first time ever and touched a historic high of 63.5 million
sq.ft, registering a growth of almost 30 percent compared to 2018. Office stock across
seven leading cities crossed 640 million sq.ft and it is expected to cross 660 million
sq.ft. by the end of this year.
While the commercial real estate market in India is evolving and the
dynamics of the industry are changing rapidly, there is a need for corporate
occupiers to plan for the future, specifically post-Covid-19. Reopening
of commercial spaces will require a clear focus on employee and
visitors’ safety, sanitisation, technology, and restructuring among
other changes. This may add to operational expenditure, but
it will ensure that occupiers are prepared for disruptions.
Offices are expected to focus on the distribution of
core and flexible spaces in their premises and
some might even want satellite offices or use a
temporary hub, aiming to lower their capex
and improve agility. Occupiers will take
time to decide on long-term changes
to workspace design such as the
use of collaborative spaces or
using hot seats. Developers
might look at securing
their entire assets, including completed would be a part of all building resilience under. It has extended all central agencies’
properties and those under construction, strategies in the coming future. Most contracts by up to 6 months (without costs
by following strict sanitisation measures. investors have kept commitments they to the contractor), with the agencies asked
Working from home was a reaction to made before the disease’s outbreak, as to partially release bank guarantees to
the nationwide lockdown to contain the they step up due diligence of projects the extent contracts have been partially
coronavirus outbreak and it is unlikely to and developers. Investors will continue to completed, so as to ease cash flows for
become a permanent concept in the future. collaborate closely with developers to ensure contractors. Further, COVID-19 would
Overall, we expect demand for commercial an effective implementation of sanitisation, be treated as an ‘Act of God’ and ‘Force
real estate to remain robust and the sector security, wellness, sustainability and other Majeure’ can be invoked to secure a
to emerge resilient and inevitably reinvent preventive norms. Global investors would six-month extension of registration and
itself. in fact implement lessons learnt from other completion timelines for all RERA-registered
Technological advancements markets to ensure a standardisation of projects whose registration was expiring on
likely to abound measures across assets worldwide. or after 25 March 2020. This will provide
The appetite for sustainable commercial relief to the developer community which
Technological innovation has brought in
real estate is expected to strengthen, was facing issues due to labour migration
tremendous opportunity to transform realty
especially for those looking at more stable and lack/delayed supplies. Further to this,
spaces. In the retail sector, e-commerce
rental revenues. Traction from private the government strengthened the affordable
has been critical to ensuring business
equity capital, especially in core assets, housing segment by extending the Credit
survival, while in the office sector, cloud-
will strengthen further due to volatility in Linked Subsidy Scheme (CLSS) for the
based working tools and video-conference
other segments. We also expect real estate middle-income group up to March 2021 and
systems have facilitated remote and home-
investment trusts (REIT) to continue to gain by opening a new investment class in the
working. Various commercial real estate
traction, even though there will be greater form of an affordable rental accommodation
sectors have or are looking at utilising virtual
scrutiny on quality of assets, sustainability scheme for migrant workers and urban poor.
reality technology to conduct site visits and
elements and portfolio resilience. The government will provide incentives to
interior viewings, while artificial intelligence-
manufacturing and other industries to build
enabled people-flow controls have been Government measures to
affordable housing units.
deployed by facilities management teams support real estate sector
to monitor the body temperature of building The government has launched a
The `20 lakh crore (USD 266 billion)
visitors and mitigate the spread of the virus. `30,000-crore special liquidity scheme for
economic package announced by the Prime
NBFCs, MFIs and HFCs – which will involve
Given the growing requirement for limited Minister will not only provide relief but will
investment in both primary and secondary
human touchpoints, companies would also ensure a faster turnaround. The five
market transactions in investment-grade
have to take a relook at their digitisation pillars for a ‘self-reliant’ India – stronger
debt papers of these companies. This is
strategy. Adoption of touchless technology economy, better infrastructure, technology
likely to alleviate the short-term liquidity
is expected to be a focus area. For instance, driven system, vibrant demography and
woes of these companies.
corporates in China have deployed demand – will position India on a stronger
technologies such as holographic projection footing in the long run. Developers will conduct a holistic review
elevator controls; temperature scans; of business requirements and portfolio
The Finance Ministry has provided certain
mask scans; infrared thermal scanners implications, thereby optimize their business
incentives to the construction and housing
at entry and exit points; UV sterilization model and options considering anticipated
sector to reduce the stress it is currently
devices in elevators and escalator changes to infrastructure in
handrails; and facial recognition a post-COVID-19 world. We
access control to limit human anticipate most developers will
interface. Moreover, in the long settle on a balanced approach
run, innovative technologies would and focus on building greater
also pave the way to streamline resiliency by introducing a
sanitisation costs being borne by combination of physical and virtual
developers and occupiers alike. solutions, backed by advanced
technologies. Wellness and
Industry will continue to
sustainability are likely to become
attract investors
more centrestage at a pace
As diligence for the disease takes quicker than anticipated. Once
center stage, developers and the situation is contained and the
investors will also increasingly focus lockdown is lifted, companies will
on making their portfolios resilient re-invent themselves and adapt
against not just environmental technology and FM operations at
shocks but also pandemics. It is a much faster pace to become
expected that “pandemic clauses” resilient.
Impact of COVID-19
on Infrastructure and
Financial Sectors and
Steps taken by Government
Devendra Kumar Vyas, MD
Srei Equipment Finance Limited
I
ndia was already struggling with a The Infrastructure sector, which was were good, until the lockdown imposed
slowdown when COVID-19 pandemic already buckling under immense stress, across the country brought unprecedented
struck, and now it faces a period of has been amongst the worst hit with challenges, and, in many cases, business
significant economic disruption as the stoppages in toll collections; distribution continuity plans are being put to test for
country has been locked down since 23rd companies struggling to pay the dues to the the first time. It is being believed that the
March to decelerate the spread of the virus. power generation companies; and complete coronavirus outbreak’s impact on the
There are deep impacts of the lockdown shutdown of air travel hitting airport infrastructure and construction segment is
across all the sectors of the economy, albeit operators. The dramatic fall in demand expected to be worse than that of the 2008
with varying degrees of severity. While across most infrastructure segments has financial crisis-led economic slowdown.
there has been a direct and severe impact further compounded the sector’s woes. The lockdown has resulted in various
on the services sector, especially segments Impact on Infrastructure Sector infrastructure project sites staring at closure,
such as retail, aviation and entertainment; mainly due to its impact on labour movement
Even though growth in the construction
the manufacturing sector has also suffered and supply chain disruption. Construction
sector slouched between 2011 and 2015
due to production shutdowns, labour and halt, revocation of toll collection, labour
with demand for construction equipment
supply chain disruptions - especially for crunch, and severe working capital pressure
witnessing a complete collapse, the sector
companies exposed to international trade, – these nightmares for any infrastructure
managed to grow post-2015 and the signs
as well as falling consumption. company - have become a reality.
The more imminent challenge for the where migrant labourers can be gainfully and commercial papers worth around
construction players remains working employed. We see construction activity `78,000 crore were up for repayments
capital management. Operational issues already starting in UP. towards the end of May.
owing to the lockdown have also slowed Impact on Non-Banking While all non-banks are facing significant
down outstanding payments to contractors Financial Sector headwinds because of the current evolving
by the principals. In most places, milestones situation, their ability to keep the asset
Non-banks largely cater to the self-
have failed owing to the lockdown, hence, quality under control would be the key
employed borrower segment in the retail
milestone-based payments also cannot be differentiator. Deterioration in the asset
space, where the cash flows are expected
received. quality could further throttle the fund flow
to be more volatile in the current situation
Having said that, India’s long-term growth vis-à-vis their salaried counterparts. Other to the sector as bank credit to the sector
story remains intact. The government non-banks (non-retail), which mostly have is already high, and funding from other
realises that economic growth cannot be exposure to entities or SMEs with relatively sources like mutual funds, insurance, FIIs,
achieved without growth in infrastructure. moderate risk profiles, are likely to witness etc., are likely to be quite muted vis-à-vis
Worldwide, redoubling of investments in an increase in their credit risk in the current the levels witnessed so far in the current
infrastructure is a key strategy to counter scenario. Further, most of these borrowers fiscal.
the impacts of a downturn. The government have limited funding avenues and typically On March 27, RBI, had, in its first COVID-19
has begun the exercise of creating a don’t have banking relationships for their package, announced a 3-month moratorium
national infrastructure pipeline with a vision credit requirements. on term loans. However, NBFCs faced a
to invest `100 lakh crores in infrastructure Non-banks, which are already facing double whammy because they have been
over the next five years. Already, highway funding constraints and an expected offering moratorium to customers despite
projects worth approximately `15 lakh increase in delinquencies, are likely to not getting one themselves from their
crores have been identified. Once these focus more on collections, at least in the lender-banks, thereby putting significant
investments materialize, we will soon near term. Therefore, lack of additional pressure on liquidity profiles of many
see positive impacts in sectors such as credit funding could have a significant NBFCs. It is only in May first week that
cement, steel and automobiles, besides, of negative impact on these borrowers banks have agreed to pass on moratorium
course, the infrastructure and construction as their cash flow mismatches would to NBFCs – that too on a case-to-case
equipment sectors. compound with the passage of time. If basis. Further, the risk aversion of banks
The good news is that we are already the COVID-19-related movement and towards NBFCs was evident from the poor
witnessing the Government’s intent of business restrictions continue for a longer auction results of Targeted Long-Term
reviving infrastructure. The Ministry of period (i.e. 2-3 months) vis-à-vis the Repo Operations, which were far off from
Road Transport and Highways (MoRTH), current expectation of a few weeks, the their desired intent.
in consultation with the National Highways impact would be more adverse.
Meanwhile, the NBFC sector has sought
Authority of India (NHAI), is drawing up a The biggest challenge in the coming one-time restructuring of loans to tide
10-point agenda to get the construction months will be redeeming bonds and over the crisis. They have also demanded
activity up and running, and even as meeting other loan obligations at a time relaxation on provisioning norms, and
the lockdown is partially lifted, MoRTH when cash flows will be hard to come by. additional funding from SIDBI and NABARD
is in talks with the state governments to According to industry experts, corporate through refinance mechanism.
re-start highway construction projects bonds worth approximately `92,000 crore
In conclusion, the current situation is one
that has a deep impact on key segments
of the economy and is unlike anything
we have seen in recent times. The global
nature of the pandemic, coupled with
its high intensity and long duration, will
fundamentally alter the business landscape
through changing trade flows, asset
prices and consumption patterns. This
will impact all key stakeholders, including
banks, financial institutions, investors and
corporates. The need of the hour is to put
in place a comprehensive action plan that
addresses potential impact, from short-
term cash flow concerns to longer term
balance sheet adjustments.
Ammann India Private Ltd., Plot No. 2, 143,144, AT - Ditasan, Post - Jagudan, State Highway,
Ditasan, Mehsana, Gujarat, PIN Code: 382710
Phone + 91 27 626 62 200, Toll Free Number: 1800 258 2233, ankur.tiwari@ammann.com
For additional product information and services please visit : www.ammann.com
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M Sand Plant
Center by internet, making it possible of their competition, both in terms of quality by offering novel recycling techniques to
for the CDE Service Team to assist its and efficiency. recover useful construction materials.
customers 365 days a year. Founded in 2006, CDE Asia is one of the Over the years, the Group has invented
Focus on Continued Innovation leading manufacturers of wet-processing and patented many technologies in the
The Combo Multi is the latest addition to equipment serving a constellation of 24 above fields and demonstrated its ability to
the formidable Combo range that was countries in the Indian subcontinent and create new products that have redefined
first introduced 7 years ago. Over the South-East Asia, and is part of the CDE the construction, mining, and waste
past 7 years, Combo has seen major group that has its global headquarters in management industries. Solutions are
performance upgrades and new feature Northern Ireland. The company provides designed to suit local conditions, and they
additions. Today, it is one of the most best-in-class breakthrough solutions for enjoy the irreversible tailwinds of government
robust mobile washing plants available the growing shortages of natural sand, policies of supporting the green way forward.
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working to keep its customers steps ahead old industry problem of C&D waste disposal like Japan and South Korea.
Project Description in the country. The government had inked KYB-Conmat supplied 4
The Nagdhunga tunnel construction project
an agreement with Japanese firm Hazama concrete mixers to Ando
is the first road tunnel construction project
Ando Corporation to construct the tunnel. Corporation
Japan International Cooperation Agency
in Nepal. It is being built with Japanese KYB’s concrete mixers are successfully
(JICA) is the development partner of
loan assistance of 16,636 billion yen. The deployed worldwide, whenever demand
the project and had earlier done the
project aims to improve the road condition arises in infrastructure development where
final evaluation of both the technical and
around Nagdhunga pass for smooth concrete is involved. The company’s
financial proposals that were submitted by
transportation between Kathmandu and presence is very strong in the construction
the Japanese contractor.
other principal areas/cities in Nepal, of concrete roads, metro rails, high rise
and thereby contributing to local socio- JICA is providing loan assistance of buildings, dams, and many other crucial
economic developments. $141.41 million to the government for the areas.
project, which has an estimated cost of
The total length of the tunnel is 2.69 KYB-Conmat is proud to be associated
around $188.19 million. The remaining cost
kms and its estimated completion date is with one of the most prestigious projects of
will be borne by the government, which has
August 2022. Hon. Prime Minister of Nepal all time, which is also the pride project in
allocated Rs 6.27 billion for the project in
Shri KP Sharma Oli laid the foundation Nepal – the Nagdhunga-Naubise Tunnel.
the budget for the ongoing fiscal year.
stone of the project — the first of its kind KYB Conmat supplied four concrete
mixers to the Hazama Ando Corporation
T
hese are tough and challenging the construction and Infrastructure sector 2020) on any of Sandvik’s Crushing and
times for the Construction Industry the most. While the businesses are Screening machinery.
as there is a general nervousness restarting, people are getting back to work, • A special discount on consumables and
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• An exclusive site visit by a Sandvik service
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champ (to help you increase the plant’s
stalled projects. normalcy is going to be challenging and
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of being a partner you can always bank restart amidst the Covid-19.
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unprecedented impact on almost all on, Sandvik has launched the CovidAssist The offer is governed by certain terms and
businesses across the globe. And due to program which is extending many benefits: conditions.
a dramatic liquidity squeeze and the lock- • A comprehensive six-month extension in For further details, please contact:
down of human resources, it has impacted your active warranty (as of 20th March, E-mail: customersupport.cns@sandvik.com
Construction
Industry
Economic Disruptions, I
ndustry stalwarts from the CE industry – developers, contractors,
consultants, manufacturers, service providers, etc. share their
views on the challenges that their businesses are facing due to the
Growth Prospects, nation-wide lockdown, the impact of which is being felt across all the
connected industries, including the supply chain, labour shortage, and
and allied industries, they also believe that the government needs to look companies are adding more high-tech features to their products. In fact, use
at the critical areas for speeding up infrastructure construction, bring of disruptive technologies is increasing and its benefits can be seen in every
accountability, and strengthen project execution to stop cost overruns, department and industry. In fact, adapting to the ‘new normal’ by digitizing
delays in completion, and avoid arbitration. construction processes and management seems to be the way forward.
The good news is that MoRTH is keen to adopt advanced technologies While the construction industry seems to be the key to India’s economic
and equipment to expedite road construction projects and improve quality, revival, major issues like unavailability of man, material, and machine
which will drive demand for new and technologically advanced equipment. (3Ms) will assail the industry. This will drive companies to adapt to the new
MoRTH has plans to invest `15 lakh crores in the next two years on roads normal by digitizing their construction processes and using technology to
and highways and NHAI is set to build 30,000 km of roads in the next five better manage the 3Ms. Companies that are quick to adopt technologically
years. advanced construction equipment with the support of the OEMs will get a
On the downside, the OEMs are no longer confident of timely supply of first-mover advantage by making up for the time lost and completing stalled
critical components/parts from sources outside the country. However, projects.
given the Government’s call for ‘Make in India’ and an ‘Atmanirbhar’ India, In the Real Estate sector, survival is a major issue today for most of the
they are gearing up to meet high demand in the coming years by localizing developers and builders. No doubt, the Government has come up with a
components/parts so that the demand-supply imbalance would be minimal good relief package and infused some much-needed liquidity and positivity
in times of any unprecedented crisis in the future. This could lead to making into the market, but the current calamitous situation calls for out-of-the-box
India a global manufacturing hub of high quality products for both domestic thinking, and solutions that would be sustainable for the long-term.
consumption and for export to world markets. Over and above all this, the need of the hour is a real-time collaboration
Digital transformation of the Construction Industry is also becoming between developers, contractors, OEMs, rental companies, and financial
apparent - from planning and designing to construction and selling/ institutions for the ‘revival’ of projects and, most importantly, for their
marketing. Foreseeing upcoming demand for equipment, forward-looking ‘survival’.
JCB India
Subir Chowdhury, Managing Director
and CEO
Big-ticket infrastructure development
projects not only demand the best quality
output but also work on tight timelines, thus
creating a need for specialized, intelligent,
and technologically advanced construction
equipment. Aligned with the same, we
have pioneered the integration of digital
technology in our ‘Intelli’ series of construction
equipment to improve productivity, reliability,
and efficiency of our machines.
Government support, revival of a the rapid recovery of the industry. With this, The ongoing stress on the economy has
sustained supplier-OEM relationship, the demand for construction and earthmoving also created liquidity related challenges -
and a suitable business ecosystem equipment is expected to grow in the coming both for buyers and manufacturers of goods
will help in a rapid recovery of the years. They will be widely used in large scale and services. Furthermore, movement of
construction industry. infrastructure projects such as roads and workforce back to their villages, could also
Presently, we are dealing with the global highways, railways, dams, ports, airports, and bring new challenges in resumption of
Covid-19 pandemic, which has evidently in rural infrastructure development projects. construction activities. However, with the
brought with it the most challenging and Due to the migration of workforce from gradual relaxation in lockdown norms, and
testing times for people and economies, urban to rural areas, building rural opening up of businesses, we are hopeful of a
across the world. In India, the entire infrastructure will gain immense focus in brighter future. The Government has already
construction and manufacturing industry the foreseeable future, which, we feel, will announced a slew of measures to stabilize
has come to a standstill with the nationwide create opportunities for the construction the impact on the economy, especially the
lockdown to combat the pandemic kicking in. equipment industry. construction and manufacturing industry.
However, when the global crisis subsides, and In the recent past, restriction on movement Taking the road to economic recovery,
things return to near normalcy, construction in view of the nation-wide lockdown to the recent stimulus announced by the
and infrastructure projects are expected contain the spread of the coronavirus, had Government has started off with some steps
to pick-up momentum. The Government’s adversely impacted the business cycle in the right direction like - focus on building
support, coupled with the revival of a and the demand-supply chain in India. The infrastructure, reforms in coal and the mining
sustained supplier-OEM relationship and industry is down by almost 80% currently as sector, and support to MSMEs, etc. The Agri
a suitable business ecosystem, would aid compared to last year. sector is also set to benefit from its opening
up. With such support, we are certain that
the Government will be able to mitigate the
pressure and stress on the sector, in the near
future.
OEMs have been actively supporting
MSMEs through business, skilling/
training initiatives, and with funds for
new technologies, etc.
The MSMEs play a very critical role in India’s
economy. From generating employment to
maintaining consistency in the domestic
and global supply chain, the sector is the
backbone of our economy. However, the
recent pandemic has taken a toll on the and efficiency of our machines, to JCB India has been an embodiment of the
MSME sector as well as due to the liquidity ultimately benefit our customers with Government’s ‘Make in India’ program. We
related challenges. ease of operation and cost profitability. have always remained committed to India’s
All our machines are also equipped with growth story and have contributed to the
Under the recent economy stimulus
world-class remote monitoring telematics building of world-class infrastructure in the
package, the Government has announced
technology-LiveLink, which has made country. JCB products made in the country
a slew of measures such as allocation of
machine maintenance seamless. are being exported to over 110 countries
`3 lakh crore for collateral-free automatic
around the world and are manufactured to
loans, subordinate debt, and equity infusion With such intelligent and smart machines
One Global Quality.
through MSME Fund of Funds. These are and services spread across 60 products
and 8 product categories, JCB has been At JCB, we are re-aligning our business
aimed at reducing the stress on medium and
helping pace up India’s infrastructure priorities.
small enterprises and support their growth
potential and viability. The OEMs have development till now. As we go ahead, The first and foremost priority for us
also been actively supporting the MSMEs we shall continue to utilise these smart shall remain the health and safety of our
through business, upskilling and training technologies and bring in more innovation employees at manufacturing facilities
initiatives, and with funds for adopting new and technology to offer unmatched benefits across India. Preparedness includes regular
technologies, etc. . to customers and end users, who need employee screening as well as employee
these even more now to recover from the safety, care and well-being programs to
With JCB’s intelligent and smart
market slowdown. ensure adherence to social distancing
machines and services spread across
The Government has shown clear norms. The second priority shall be to re-
60 products and 8 product categories,
intent to support manufacturing across boot the supply chain and ensure that the
the company has been speeding up
different segments, and it is the time supplier and the dealer network becomes
India’s infrastructure development. seamlessly operational once again. We
now to seize the opportunity to invest,
Going ahead, we shall continue to utilize are fully committed to offering world-class
innovate, create, scale up and export.
smart technologies and bring in more products for our customers. Even during the
innovations to help our customers The Government’s ‘Make in India’ program
lockdown, we have remained committed to
and end-users to recover fast from the was launched six years ago, it focused
providing customer support for equipment
on making India a hub for manufacturing
current market slowdown. that was engaged in essential services.
and an exporter to the world. Today it is
There is a significant scope of digitization
and automation as we move forward. Newer
concepts like Telematics, IoT, Big Data and
Machine learning have the capability to play
a major role in increasing the efficiency
of the sector. This is because big-ticket
infrastructure development projects not only
demand the best quality output but also work
on tight timelines, thus creating a need for
specialized, intelligent, and technologically
advanced construction equipment.
Aligned with the same, we have pioneered
the integration of digital technology in our
‘Intelli’ series of construction equipment.
This has improved productivity, reliability,
K. Jalandhar Reddy, ED
Contractors, manufacturers, rental companies, and financial
institutions have to converge to contribute meaningfully for the
revival of any project through correct and timely construction
processes while improving the value of the project and enabling
timely release of resources.
In the medium term, the overall capex launched National Infrastructure Pipeline Indian construction companies are
budgeted by both state & central involving `111 lakh crore of investments by facing labour shortages, supply chain
governments is likely to witness a steep FY2025 envisages funding from the states issues, and financing pressures, which
cut, which will impact the infra sector to the extent of 40 per cent, while 39 per is having a ripple effect across the CE
industry in the medium term. cent would be the Centre’s contribution industry.
The COVID-19 pandemic onslaught and the remaining 21 per cent would come Labour: The Indian economy needs huge
on the global economies and universal from private sector. infrastructure development to sustain its
health have perplexed the economists and With strain on state finances, the private growth. Indian companies are working
health specialists. Its detrimental impact sector investment is found wanting; the on hundreds of huge projects like special
on the economy has cast a negative funding for NIP will be lower, thereby economic zones (SEZs), power plants,
growth of GDP and huge revenue deficits slowing the award and execution pace. airports, railway corridors, highways and
in the wake of significant contraction of Construction industry players who have a bridges. The construction industry is one
gross tax collections, and a dip in other good mix of projects from states, centre of India’s largest employer, with thousands
allocations are staring at central and state and funded corporations, will have a better of construction workers employed across
governments. Thus, in the medium term, cash flow as compared to those who are the length and breadth of the country.
the overall capex budgeted by both state exposed to projects solely funded by state It is estimated that nearly 300 million
& central governments is likely to witness a governments. migrant laborers in the Infra sector have
steep cut, which will impact the infra sector Hence, growth in the medium term is been affected by the lockdown and about
industry in the medium term. likely to be flattish as the monetization 70% of them have returned to the home
Construction industry players who have program of NHAI may get delayed due state due to loss of employment. With the
a good mix of projects from States, the to the present economic environment. expected delay of their return to project
Centre and funded corporations, will However, the long-term appears to be sites, execution of infra projects will be
have a better cash flow as compared bullish as the government has already delayed. Developers, and the central and
to those who are exposed to projects cleared and taken up special Economic state governments have to make concerted
solely funded by State governments. corridors, NHAI’s Bharatmala Paryojana efforts for their return, at least by July/
project, Urban Metro flyovers, River August ’20.
Projects dependent solely on state
budgetary allocations are likely to suffer Linking projects, and state-level Highway Supply chain: With the reopening of inter/
the most. Not only is the awarding activity projects funded by multilateral financing intra state movement of vehicles, the
for these projects likely to reduce sharply, agencies. The financial/capital market for supply chain activities are slowly coming
but the receivable cycle is also likely to monetizing assets is expected to ease, back to normalcy.
get elongated by 60-90 days. The recently so more resources will be deployed in the
infra sector.
Financial pressures: Banks have been strategies and review guidelines on the sanctioned limit up to 10%, and up to
permitted to provide interest and principal planning, design, and management of 30% group exposure. NHAI has agreed to
moratorium till August; provide excess construction projects, based on project consider extension of time, and in the case
of sanctioned limit by 10%; and group status, scope, and location. It is essential of toll projects, the concessional period
exposure has increased to 30%. These to develop a mitigation plan for potential shall be extended from 3 to 6 months.
measures will improve the credit availability slowdowns, shutdowns, and project However, some areas have not been
to a certain extent. restarts, including identification of work addressed - the RBI has reduced bank
Professionally managed companies can that needs to be mothballed, and how to rate significantly, but borrowings cost has
meet the challenges of COVID-19 with do so strategically. It is important to decide not reduced that much. The bank rate that
the following opportunities: on the services that can be continued off- will be applicable for HAM projects will be
site to limit schedule delays. post-Covid, when the company receives
COVID-19-related notices claiming
•
extension of time (force majeure claim) When restrictions are eased, the project the first annuity, which will have an impact
and cost consequences (as a change of re-mobilization should be done in an on valuations. A corrective measure has to
law, government risk/action or political efficient manner and, correspondingly, be taken by NHAI to safeguard the HAM
force majeure claim), potential relief shoring up contracts have to be designed developers.
under the contract. to de-risk uncertain schedules. The project Companies that are researching and
should be proceeded as per the start-up implementing construction technology
• Notifications to lenders under information
plan that was drawn before the shutdown, are reaping the rewards with increased
covenants in finance documents.
and be ready for onsite work with project productivity, better collaboration, and
• Consideration of efficacy of time limits management monitoring through software are completing projects on time and
on claims notification and review of platforms. within the budget — resulting in higher
termination rights based on COVID-19.
The Covid-19 relief package of `20 lakh profit.
• Leverage full technological capabilities crore brings opportunities for making Projects are becoming more demanding
of project management platforms to bold reforms to make India self-reliant, and complicated in their construction
facilitate remote working and make such that any other crisis that may and in the deployment of equipment for
digital capital products and cloud emerge in the future can be handled earthmoving, hauling, hoisting, conveying,
collaboration the standard in projects. efficiently. aggregate and concrete production, pile
• Revisit procurement strategy and The Government has announced relief driving, tunneling and rock drilling, pumping
consider whether delaying certain packages to various sectors such as MSME, and de-watering, etc. Tower cranes and
procurement activities (commodities, Discoms, Agricultural infrastructure, Mining Laser Screeding Paving machines are
fuel, service providers, subcontractors) to be commercialized, indigenous Defense already in vogue. Companies should make
may yield more competitive pricing. production, start-ups, rural roads, etc. further efforts in adopting digitization and
During project shutdowns or a slower and also across various strata of society. mechanization.
construction market, it is essential to plan RBI has announced a moratorium up Artificial intelligence (AI) and machine
to revisit or develop project governance to 6 months for payments, increase in learning systems can improve worker
productivity in construction sites by
retrieving tools, materials, and equipment
to perform better. AI can also help in
estimating and bidding projects gainfully.
Drones can also be put to use for monitoring
the progress of the projects, movement of
workers.
Sensors can be installed on materials and
equipment for tracking their movement in
construction sites. With the data collected,
AI can help analyze how workers move
about and interact with the site, and
come up with solutions to reorganize the
placement of tools and materials to make
them more accessible to workers and
reduce downtime.
Smartphones and mobile apps have
made communication and collaboration on
projects easier. Instead of driving to the making construction firms that are using The effectiveness and performance of the
office for impromptu meetings, firms can data to make better decisions, increase supply chain and contractors to improve
use mobile technology to facilitate meetings productivity, improve jobsite safety, and their cash flow and of the OEMs and others
to reach definitive conclusions, without reduce risks. are important for the successful delivery of
interrupting the day’s work. Being able to Use of IPD principles, which help deliver projects.
communicate in real time ensures that any high performing projects by creating a Use of IPD principles, which have helped
issues on the jobsite get resolved quickly collaborative system, can address the deliver high performing projects by creating
and effectively and every stakeholder can stakeholders’ relational problems in a collaborative system, can address
have a say. Integrated solutions that sync traditional construction procurement. the relational problems in traditional
in real-time allow different stakeholders to construction procurement. Integrated
Contractors, manufacturers, rental
add notes, change drawings and respond Project Delivery administered projects
companies, and financial institutions have
to RFIs instantly, and then share the are easy to manage because all project
to converge to contribute meaningfully for
information with everyone involved in the participants (the IPD team) sign a single
the revival of any project through correct
project, at the same time. principal contract with the client.
and timely construction processes while
Mobile technology allows for real-time improving the value of the project and FY 2019-20 projects in hand & order
data collection and transmission between enabling timely release of resources. book.
the jobsite and project managers in the
To achieve collaborative working, a KNRCL’s thrust on NHAI’s national highway
back office. Cloud-based solutions enable
qualitative and a quantitative approach projects in EPC and HAM formats, state
on-site employees to submit timecards,
should be followed. One must explore highways, and projects in irrigation, flyovers,
expense reports, requests for information
any problem in the relationship between and bridges shall continue. As on date, the
(RFIs), work records, and other verified
the main contractor-OEM-subcontractor company’s order book position is around
documentation. This can save hundreds
and financial institution, and an effective `8000 crores, and includes Highway and
of hours per year in data entry and
solution arrived at. Irrigation projects in Telengana. KNRCL
automatically organize critical files — no
In order to derive innovative ideas to is at present executing 5 HAM projects out
more shuffling through files looking for old
reinvent the delivery process of traditional of which 4 are from NHAI and one from
reports.
construction procurement, the principles of Karnataka, and two are Annuity projects.
Today, more and more software providers
integrated project delivery (IPD) and the last With our strong balance sheet and
are forming strategic partnerships to
planner system (LPS) were studied to seek proposed monetization of assets, there
allow companies to seamlessly integrate
ideas that could be employed to improve shall be enough liquidity to bid for NHAI’s
their data with other software solutions,
collaboration between the stakeholders. HAM projects.
Tata Hitachi
We expect the market may shrink Apart from that, they also have access to blocks will encourage more investment and
further by 30-40% over FY19-20. collateral free loans to the extent of 20% drive demand for equipment in mining
Clearly, the first quarter is deeply of their outstandings in February at an We have gone through many downturns
impacted because of the lockdown due attractive interest rate of 9.25% pa. There in the past and are fully geared up
to the pandemic. Post the unlocking, we are other measures announced which to face the current challenge with
believe that the second quarter will see will also help them sustain and expand full confidence. Our primary concern
the monsoons and therefore, we will see business. is the safety of all our stakeholders
better results in the second half of this Special liquidity measures for NBFCs/ – employees, customers, partners,
fiscal year. Hence, any recovery that is HFCs/MFIs and NBFC Partial Credit vendors - and all measures are being
expected will only be in the second half of Guarantee 2.0 scheme will infuse liquidity taken keeping their safety in mind.
the year. Given these conditions we expect in them and aid lending to business. Most of our dealer outlets have resumed
the market may shrink further by 30-40% However, there are areas where more operations. We were also providing
over FY19-20. clarity is required. The investment figures service using digital means during the
We are bullish from next year onwards as per budget are now doubtful, given the lockdown: helping customers maintain their
when investment in infrastructure will challenges in revenue collection. Hence, operations. Our support team was available
accelerate rapidly. clarity on focus and means of achieving at our FMC sites keeping the machines fully
As the government has reiterated, India these targeted investments were lacking functional and we continue to use both the
will be a land of opportunities and the in the announced package. Further, a digital as well as our physical network to
NIP confirms the same. It’s just a matter considerable amount of money is still stuck support our customers.
of time before investment in infrastructure in disputes and although measures have Our sales teams were engaged with
accelerates rapidly to meet the needs of been announced by the Ministry of Roads, customers to apprise them of our offerings
its citizens. Therefore, we are bullish from there has been very little movement in and how these help their business, going
next year onwards. payments to construction companies. ahead. We even conducted webinars to
If you look at the package, there are some The reform measures in mining will counsel and instill confidence in customers,
good pointers: With the redefinition of the encourage more investment and drive dealers and vendor partners and to spread
coverage of MSMEs, a lot of our customers demand for equipment in mining. a positive word around the opportunities in
will come under its fold. This will help them The reform measures in terms of the infrastructure in the country as well as in
in getting loans at a lower interest rate from opening of commercial coal mining, their area of operation.
banks as well as priority in payments from seamless exploration to production of We are constantly engaged with our
Central government departments, which is both coal and other minerals, removal of employees – at the plant, corporate and
very crucial in the current times. distinction between captive and non-captive regional office – to help them utilize the
lockdown time effectively; to keep them places and customers have to make do our team as well as our customers have
motivated; and sharpen their skills to be with whoever is available. If there are no embraced and transitioned to digital means,
prepared to combat the new challenges operators / mechanics - they are unable to and we plan to build our engagement in this
that will emerge from the fallout of the execute the projects. direction, as this is going to be the way the
Covid-19 pandemic. There is still the issue of free movement entire industry will engage in the near term
Due to the measures announced by the of goods, especially cement and steel, and realize its efficiencies.
RBI, financers have been engaged with as these were most affected due to the Many components can be easily
customers to explore the way forward and lockdown. Hence, the construction industry manufactured in India with technology
this has helped a lot of hirers in availing is very cautious and sees normalcy coming that is already available globally
the moratorium for 6 months from March. back only after the monsoons. provided the industry is sufficiently
Therefore, the trio of contractors, OEMs, Our telematics products with digital incentivized. Also, if the right conditions
financers have been fully engaged to tide capabilities have enabled continuous for global investment are created, we
over this situation as well as convert this communication with our customers. can enter into partnerships with global
into an opportunity to explore new methods players and service the Indian market as
Even before Covid-19 broke, we have been
of conducting and sustaining business. well as the global supply chain.
selling most of our products with digital
Given the uncertain scenario, capabilities. Our EX-series excavators, From a Construction Equipment standpoint,
customers are cautious of purchasing SHINRAI backhoe loaders and TL340 more than 90% of the volume of machines
new equipment. wheel loader are InSIte enabled and ZAXIS manufactured in India are localized to an
Construction activities in major projects series excavators have ConSite telematics extent of 50%. Again, this is an average
were allowed from 20th April and activities suite. These telematics products have figure and some manufacturers have a
have started at most of the large national enabled continuous communication with higher degree of localization. These include
highway projects. We do see significant our customers. the equipment sold in the largest volumes
recovery in activity this month also. such as Hydraulic Excavators and Backhoe
Under the current circumstances, we
However, given the uncertain scenario, Loaders.
believe customers will greatly appreciate
customers are cautious of purchasing new these digital technologies to get the best A large base of vendors has been developed
equipment. out of their equipment. over the years of whom many are in the
Further a large number of laborers at MSME category. In the first phase of supply
Sometimes, a crisis also brings
most sites have returned to their native constraint, these vendors were trying to
opportunities and we are glad the way
ramp up their manufacturing capacities
with infusion of capital investment in Capex
and employing skilled workers. Their ability
to deal with demand volatility was severely
tested. This time around, the challenges
are completely different. Inadequate
working capital, supply chain disruption,
and depletion of skilled manpower are
some of the key issues that need to be
dealt with. The government has announced
several steps to ease liquidity and provide
ameliorating conditions for them to restore
normal operations.
As far as global sourcing of components
is concerned, one area where there
is dependence on imports is precision
components such as valves, certain
motors, sensors etc. These can be easily
manufactured in India with technology that
is already available globally if the industry
is sufficiently incentivized. Also, if the
right conditions for global investment are
created, we can enter into partnerships
Ardent Group
Liquidity is the biggest crisis we face than blaming the present or past. we will keep doing the same. We
today, and it will continue to be there Our supply chain is still intact, and we will always be available for the
post lockdown. are producing in our factory at 60 to 70% Government with our suggestions
A big hole in the economy has been created capacity; this was possible only due to the and solutions.
due to the Covid-19 situation, which will processes we follow for manufacturing. Today, survival is of the utmost
take a long time to fill. We see growth in We plan to improve further post lockdown importance for which we are taking
the industry, but it will not be soon, and to go to Lean and 6-Sigma manufacturing all the required steps. Our rental and
nobody knows for how long it will go on. processes. Labour is a shortage due to manufacturing divisions have been
May be a couple of month later when things which we are unable to produce at 100% playing a vital role of being the link
become normal and up and running, we will capacity; we are running short by 30 to 40%. between the contractors, financers,
know. Time alone will tell whether the relief The government will need to take a and institutions for the revival of our
packages of the government will serve the faster and more advanced approach to projects. There has been a disruption
purpose or not. We should wait for things make up for the time lost in the currently used technologies
to improve and in the meantime, we should which need to be replaced with highly
We have always supported the authorities
work towards creating a better future, rather advanced and new technologies.
and institutions with our expertise, and
Covid-19 has brought many challenges pick-up through the year. While demand is largely focussed on providing adequate
for the CE Industry in addition to the for Construction Equipment may remain capital at lower cost and higher liquidity
sluggish demand experienced in the subdued in the next 2-3 quarters, in to the Industry. It also includes six months
last fiscal year. A revival will depend my opinion, the Government’s focus on moratorium on EMIs. These are welcome
on many factors such as workers and infrastructure development, providing steps and will help in restarting the economy
operators returning to work post- employment opportunities and other steps post-lockdown. Many vendors and dealers,
lockdown, lending from financiers, to boost economic activities will result in a who form an important link in the supply
construction activities gaining pace, gradual recovery. However, there could be chain, would have faced difficulties without
and release of payments by the contraction in the overall annual demand these initiatives.
authorities to infrastructure firms. for CE during this fiscal as well, and we will While the Government of India has already
The Government has already announced have to prepare for that eventuality. announced the National Infrastructure
a `100 lakh crore National Infrastructure If the Government could accelerate Pipeline Project, we do hope that these
Pipeline to be completed by 2025. MoRTH award of contracts and also take steps infra projects will receive funding in time
and NHAI have assured award of 4500 for early release of payments that are from the Government. Earlier, there have
km highway construction contracts due to contractors, it would help rebuild been issues relating to land acquisition
during the year. RBI too has intervened confidence in the sector. and environment clearances which have
with various monetary policy measures The economic stimulus package delayed project execution and escalated
– these should translate into demand announced by the Government of India the project cost. These also need to be
addressed to ensure that the projects are
moving ahead as planned.
There is a need to overcome the
challenge of institutional risk aversion
in lending.
More than 95% of Construction Equipment
is financed by banks and NBFCs; hence,
availability of finance to customers will be
the key to revival of CE demand. We are
working closely with our finance partners
and customers in order to address their
concerns on an ongoing basis. Credit
appraisal by finance companies has
become stringent, which is good, since
money will flow to disciplined and capable the finance companies to help them in equipment. MoRTH has been promoting
customers. While Government of India has taking quicker and well-informed decisions the use of advanced technologies in
taken measures to ease credit availability, on funding. road construction. For example, use of
we continue to witness a great amount of Since the last few years, almost 40% telematics is visible in various spheres of
caution among financial institutions, which of the demand for new equipment the road construction activity. Almost all
is the biggest challenge being faced by the is stemming from the Road Sector. models of excavators come with remote
CE industry. Transmission of lower rate of Increased mechanization and using monitoring systems. Komatsu has its own
interest to the end-customers will also help best-in-class equipment will help deliver patented system called Komtrax, which
ease the situation. Another issue facing the safe, serviceable, and sustainable facilitates on-line performance analysis
Industry will be the availability of skilled roads. and machine health monitoring.
workers. This could be addressed by Similarly, L&T compactors come with
Roads and Highway construction is a
close coordination between Government DigiEye and the option of being fitted with
major driver in the infrastructure link, and it
and employers to ensure that the workers Intelligent Compaction System (ICS). This
brings together a spectrum of technologies,
regain confidence and feel safe to return to helps the operator to determine when
equipment and skilled labour to revive the
the worksites. the required density has been achieved
economy. The Government considers the
With the new equipment demand road network as critical to the country’s and compaction is complete. ICS also
likely to be subdued for some time, development, social integration, and increases speed and reduces time
we expect utilization of the existing security needs of the country. Their vision required for supervising and inspecting
machine population to be stepped up. to increase the construction of highways the compacted areas. We have several
As machines are becoming operational, from 30 km per day to 60 km road per contractors who are keen to procure these
our teams at L&T are ensuring prompt day can only be realized by accelerating digitized models.
supply of parts and service. mechanization and using the best-in-class With the Government of India now
Along with our principals, Komatsu and equipment. maintaining a sustained pace in
Scania, we are committed to customer The rebooting of the road sector post- infrastructure projects, we expect the
care 24/7. We remain focused on after- lockdown is expected to generate demand for construction equipment to
sales support by extending service and employment, revive demand for material stabilise and grow year-on-year.
supplying parts across India wherever and equipment; it will open up employment Almost all global brands in Construction
machines are operational. Our dealers too for migrant workers in a big way and Equipment have manufacturing plants in
have been fully supportive and committed absorb equipment lying idle in various India. Their indigenous content in high-
in the field. All our service centres are projects across the country. volume products viz., Backhoe Loaders,
operational pan-India. We are also Hydraulic Excavators, Wheel Loaders,
Telematics and other intelligent
focusing on skill development amongst and Vibratory Compactors is well above
technologies enable higher efficiency
our customer staff as well as society. Our 50%. Some critical components of Power
and productivity of equipment as well
service centres are accredited by IESC Train continue to be imported. I am sure,
as reducing lifecycle cost. These digital
and conduct regular training programmes as the demand grows and volumes
initiatives are being welcomed by Infra
under PMKVY. We will scale this up to increase, these components would also be
companies.
meet the shortage of skilled personnel in indigenised.
the industry, post Covid. Increased pace of highway construction
is expected to give a boost to the CE demand growth in India has often been
We are also relying on digital solutions to compared with that of China’s, where the
contracting demand for construction
share visibility of machine operations with CE industry grew exponentially riding on
the relentless spend on Construction and
Infrastructure building activities promoted
by the People’s Republic of China for over
two decades and continuing even now.
The Government is also promoting export
worthiness and competitiveness in a big
way. Sustained demand in India, coupled
with export opportunities should help the
component industry to attract technological
partnerships, enhance capabilities,
and build scale for high-quality import
substitution.
Real Estate to be a major environment, while technology, demographics, Insufficient labour strength
contributor of country’s GDP and environmental issues will become the new could severely impact the
in years to come value drivers. The ideas, trends, and behaviours construction operations
that will shape the Real Estate sector in the next
The corona crisis has certainly impacted the The government has recently relaxed the
decade are already perceptible today. Some
short-term outlook for the Indian Real Estate nation-wide lockdown norms and conditionally
are clearly evident while others are emerging
sector. Sale of residential properties and leasing permitted the migrant workers to travel to
quietly around us. By 2030, the Real Estate
of office spaces have suffered setbacks during their home states. This has led to an exodus
universe would have expanded tremendously
the lockdown period. The retail and hospitality of construction workers from the metropolitan
as today’s new asset classes such as co-living,
sectors are very severely impacted. PE, VC cities. The local authorities are facilitating
warehouses, data centers, will become mature
investment decisions in Real Estate have been these workers and are arranging their rail
segments.
put on hold for some time. Moreover, the buyer travel to their home states. All these days, in
and investor sentiments have been dampened In the years to come, the Real estate sector in
the absence of a transport network during
further. As it is, the sector was facing a liquidity India will continue to be a major contributor to the
the nation-wide lockdown, the workers had
crunch following the NBFC crisis and a demand country’s GDP. Emergence of nuclear families,
no option but to be confined to the worker
slowdown. The massive exodus of workers, rapid urbanisation and rising household income
accommodations provided by the construction
halted work, and impaired economic activities are likely to remain the key drivers for growth in
companies near the construction sites.
during the lockdown have taken a toll on the all spheres of real estate, including residential,
commercial and retail. India continues to attract Most of these migrant workers are skilled in
industry.
Private Equity and Venture Capital investments construction trades like carpentry, barbending,
Despite the corona-induced setbacks, we do masonry, plastering, fabrication, etc., and are
in the sector. Office space has been driven
not see a long-term adverse impact on the crucial to ensuring work progress. Although
mostly by growth in ITeS/IT, BFSI, consulting
Real Estate market. India has a huge economic organised players like Shapoorji Pallonji E&C
and manufacturing. Recent initiatives like Smart
opportunity in the coming years. With increasing were taking care of their workers by providing
Cities, raising of FDI limits for townships and
per capita income and a population of about
settlements development projects and for real them wages, rations and medical facilities in the
1.30 billion, the Indian economy will continue
estate projects within SEZs and Real Estate camps, there was growing anxiety among them
to prosper, aided by digitization, globalization,
Investment Trusts (REITs) will augur well for the with news of the lockdown getting extended.
favorable demographics, and reforms. In
real estate sector. Further, the Government of The construction companies are now finding it
addition, increased government spending
India’s ‘Housing for All’ initiative is expected to difficult to convince their sub-contractors and
on infrastructure and rising urbanization
bring huge investments in the housing sector in the workers to stay back and resume work. Now
will provide plenty of opportunities for the
the years to come. The Real Estate (Regulation that the government has conditionally permitted
construction sector.
& Development) Act is making the sector more some of the construction sites to resume work,
As the Indian economy transitions and transparent. the construction companies are facing this new
our workforce expands, we will see vast
Although the actual growth figures may vary challenge of resuming construction activities
development and investment opportunities in
from the projected figures over the long term, without having adequate worker strength.
the Real Estate sector. The growth of cities is
the long term outlook for the Indian Real Estate Also, due to the mismatch of skills amongst
going to further influence the country’s built
sector remains intact.
the remaining workers, output and productivity villages. This could pose an additional challenge considering additional advances. These payments
is seriously impacted. Even as the supply chain in mobilising an adequate number of workmen can then be channelized by the companies to their
for construction materials supply is slowly getting for construction work in the near future. It is suppliers and subcontractors, which would be very
streamlined, insufficient labour strength could expected that it would take at least 6 months for crucial to mobilize and retain their workers after
severely impact the construction operations of the worker strength to return to normal. the lockdown is called off.
these companies in the weeks to come.
The Government can play a In addition, the government can derive immense
Just before the nationwide lockdown began, crucial role in reviving India’s economic benefits through adoption of standardized
Shapoorji Pallonji E&C had about 1,50,000 Real Estate Sector and equitable contracts, relaxed payment terms,
construction workers across all our projects in a rationalized contractual risk structure, and
The construction contracting fraternity was
India - which include government and private reasonable bank guarantee requirements. The
already reeling under severe financial stress
sector projects. Depending on the volume of the government needs to build accountability within
from the last 3-4 years, and especially so in the
project, the strength on each project ranged from its project implementation teams for giving timely
last one year. The corona crisis will seriously
150 workers to 4,000. Currently, we are left with decisions and approvals to the contractors in order
impact the revenues of the construction
only 15 to 30% of the original worker strength. to expedite project completions. These measures
companies and almost all will face huge financial
can revive the construction sector, generate
Shapoorji Pallonji E&C is taking multiple losses in the months to come. The financial
massive employment, and thus have a multiplying
steps to convince its workers to stay back stress is expected to worsen over the coming
effect on the national economy.
and continue working. We are assuring them year as the contracting companies continue to
about our preventive and welfare measures, be burdened with onerous clauses in contracts. Considering the current crisis that the Real
even post-lockdown, for their safety and well- Many government contracts involve contractual Estate industry is facing and its impact on the
being. We are conducting motivational talks to risks that are far higher than the margins that nation’s economy, it would be worthwhile for the
can possibly be earned through efficient project government to consider some relief measures
alleviate their anxiety as we believe that constant
execution. Companies are required to furnish for the industry. Some of the proposed measures
communication and engagement will keep them
bank guarantees from 15% to as high as 30% include one-time restructuring of loans, additional
motivated. We are incentivizing them financially
of the contract value. The project execution institutional funding, waiver of penal interest, policy
and releasing timely payments so that they know
itself is dependent on many key decisions and innovations to trigger demand, operationalisation
that they can continue to earn their livelihood in
approvals that need to come from the employer of government’s last mile funding, controlling
a safe way. We are getting good support from
or the authority’s engineer. cartelisation of raw material, and changing the
some of our clients in these efforts.
criterion of affordability for GST applicability.
We are continuously engaging with our regular The liquidity constraints being faced by all
construction companies and their supply chain The government can also consider increasing the
labour subcontractors to ensure that the worker
are likely to delay the recovery efforts. Most limit of principal deduction on housing loan under
strength improves in the post-lockdown scenario.
companies have already represented to their Section 80C to `2.5 lakh from `1.5 lakh. The
We are persuading them and addressing their
clients – both government and private - to interest deduction under Section 24 on housing
grievances to ensure work continuity. However,
help ease the situation by expediting release loan for homebuyers could be increased to `10
a section of the workers is anxious to return to
of payments towards certified bills, arbitration lakhs from `2 lakh. The pace of Real Estate project
their home states. Some of these workers could
awards, retention releases, etc., and also by completion could be expedited by simplifying the
also get diverted to agricultural work in their
processes for building permits and approvals,
granting expeditious approvals and
environmental clearances. This will
instill confidence amongst buyers
and generate new demand.
Beyond Real Estate, there is a
huge scope for India to attract
manufacturing investments from
across the globe. The government can
also play a pivotal role in launching
mega infrastructure projects. These
projects can generate huge demand
for construction services and involve
massive employment.
The government should also
streamline its procurement processes
to allow fair competition for tenders.
Some of the areas that need attention
include formulating realistic budgets
The emergence of nuclear families, rapid urbanisation and rising household incomes are likely to remain the for projects, adopting pre-qualification
key drivers for growth in residential real estate in the years to come. The affordable housing segment has huge criteria to allow competitors of equal
potential in India. standing, and adopting QCBS
system. This will lead to sensible bidding for and schedules by involving functions such as Therefore, construction organisations would
government projects and improve the chances accounting, finance, and human resources. have to increasingly adopt newer techniques
of project success. These tools give managers immediate access (and devise ways to mitigate/share the high costs
to real-time back-office data. Many back-offices associated with these new technologies) to meet
Technology can help overcome
focus on scheduling, managing equipment, and the client’s changing demands.
labour challenges and also
enterprise resource planning.
save time and cost Adoption of advanced technologies such as
E&C companies are applying new hardware monolithic concrete construction (shear wall
The evolving landscape of new technologies
and software solutions for predictive analytics technology) using aluminium formwork, or
in the Real Estate and construction sector are
and for project monitoring, enabled by drones precast construction, is slowly becoming the
transforming all stages of the project delivery
and the Internet of Things (IoT). These solutions norm. These technologies reduce cycle times and
process. The new technologies are changing
apply advanced analytics and machine learning the requirement of labour, reduce project duration
how companies design, plan, and execute
to data - both structured and unstructured—to vis-à-vis conventional construction, reduce
projects. By adopting advanced software,
optimize decision-making for multiple topics, material wastage, and improve construction
construction-focused hardware, analytics
including workloads, staffing levels, and quality and safety. These technologies also
capabilities and advanced construction
strategies for minimizing inefficiencies. Some eliminate labour-intensive activities such as
technologies, the companies are eliminating
companies are using these technologies to masonry and plastering, thus leading to time
many of the problems that have dogged the
improve 5-D BIM—the process companies use and cost savings. A high degree of modularity
sector for decades.
to create digital representations of physical of designs that ensures a higher repetition of
Such improvements could not have come structures - and then consider this information formwork and higher productivity of mobilised
at a better time, as construction projects are in combination with cost and scheduling data. resources is an added advantage.
becoming increasingly complex and expensive, Companies most frequently use drones to A lot of research and development efforts today
putting managers under greater pressure to capture site images and aerial survey data, are directed towards emerging technologies in
improve costs, timelines, and efficiency. while IoT primarily helps with monitoring precast construction that enable the manufacture
The major companies use enterprise-resource- equipment and preventive maintenance. of the whole dwelling unit as a monolithic module
planning systems. In addition, new digital tools Incidentally, Shapoorji Pallonji Real Estate (with no joints) and complete with interior finishes.
and solutions are being used for the design, employs its digital platform Virturo to provide Similarly, 3D printing is set to revolutionize
preconstruction, or operations and management a seamless buying experience. This platform housing construction. It won’t be long before
phases. In the construction phase, on-site puts a sales representative in the driver’s these technologies become affordable,
execution, digital collaboration, and back-office seat and equips him with key information like especially for large volume constructions, and
integration are being reimagined with the use of location, USP, Google Street View, sample become commonplace in India. In fact, these
such digital solutions. flat photographs and other project-related technologies can emerge as credible solutions
The digital tools that support on-site execution information under one roof. Our aim is to to address India’s affordable housing challenges.
enable the companies to mitigate some of the provide an actual site visit experience to the
Shapoorji Pallonji E&C’s projects in hand
most pressing problems and in the process prospective buyer on our virtual platform.
and order book during FY2019-20.
enhancing field productivity, safety monitoring Many technologically advanced construction
and quality control. Some new applications Shapoorji Pallonji E&C received new orders
equipment are now available or can be imported
help managers inspect remote sites by worth `22,500 crores in FY2019-20 in the
into India at very competitive prices. The vendor
providing pictures and image tags, while others domestic contracting business. These projects
base for such equipment has developed over
allow them to update and track their punch lists are primarily in the buildings, factories, and water
the last few years and the post-sales service
in real time. This, in turn, increases efficiency segments. Almost 90% of these projects are for
standards too have improved a lot. Such
and accuracy during on-site execution. government organisations – both central and
equipment are crucial to enhancing productivity
state. Some of the prominent projects are:
The digital tools that support collaboration of construction operations and also help save
allow stakeholders - architects, designers, and manpower costs, besides improving quality. • IIT, Hyderabad Campus in Telangana
site engineers (who are more numerous and The equipment are being used at a variety of • IIT, Palakkad campus in Kerala
widely dispersed than in most other industries) projects from buildings to infrastructure. • Development of four seawater desalination
to work together. They need to communicate plants in Gujarat
As the operation dynamics of the Real Estate
and align frequently, since certain changes, • New Passenger Terminal at Petrapole, West
business in India are evolving and innovating at
such as a seemingly minor modification to a Bengal
a pace much faster than envisioned, it is almost
materials order, could significantly increase • Chhindwara Institute of Medical Sciences in
imperative that innovations be applied to the
timelines or costs if made too late. All related Madhya Pradesh
most basic as well as most important step in
processes viz., design management, contract • IKEA Store in Bengaluru
the value chain – construction techniques.
management, performance management and • Phoenix Business Hub, Hyderabad
It is expected that there will be wider use of
document management can be managed very • Ascendas IT Park, Hyderabad
technology in construction and construction
effectively through digital collaboration tools. • RMZ Ecoworld IT Park, Bengaluru
management in the future as companies realise
• Birla Vanya Residential Complex at Kalyan,
The digital tools that support back-office the long-term efficiency and cost savings of
Maharashtra
integration allow companies to access and such techniques. Technology in construction
• CIDCO Housing in Navi Mumbai
exploit valuable project data on finances, costs, space has coincided with growing demand
• Flipkart Warehouse at Nadia, West Bengal
for faster construction and world-class quality.
The Government needs to front-end This stimulus will help the supply side Infrastructure investments will also help in
infrastructure investments to instigate and help respond to the current economic creating employment opportunities for the
private investments and attract foreign challenges. The next stages - recover and migrant labourers and will help in propping
capital. grow – will need to stimulate the demand side, up the economy.
The recent announcements by FM and and I feel that this can be majorly achieved Globally, economies have grown by leveraging
RBI have been very positive and have through investments in infrastructure. The infrastructure sector spending. NHAI has been
addressed the challenges related to Government needs to front-end infrastructure one of the strongest growth engines for India
improvements in liquidity. The land, labour, investments to instigate private investments in the last 5-6 years. To realize our objective
liquidity and stimulus/reforms announced by and attract foreign capital. To become a of becoming a US$ 5 trillion economy by
the Government are expected to help the strong contender and provide an alternative 2025, India needs to spend about `20 trillion
Industry, MSMEs and the labourers in both supply chain possibility to the international in the next couple of years on Road Projects.
the organized and unorganized sectors. companies, we need to provide workable Though various studies peg the current
Emphasis on self-reliant India would surely go infrastructure, besides ease of doing infrastructure deficit rate at 1.5 – 2 times the
a long way in building a strong supply chain. business. above projected spent of `20 trillion, I am
confident that once the Government pushes
ahead and starts to seed these projects, the
private and foreign capital will follow.
NHAI has recently decided to get majority of
the projects executed under EPC contracts,
which I feel is a step in the right direction,
based on past experience. Also, in the current
scenario, where the unemployment rate is
rising, this will also help in finding jobs under
MNREGA. In the last two months of this fiscal
year, about 3.5 million new applicants have trying to stimulate demand and has already
registered, which is substantially higher than the announced the stimulus package equivalent to
number in FY’19, which saw around 1.5 million 10% of our GDP, amounting to around US$ 300
applicants. billion. Given the government’s intent, we are
confident that the demand side will be suitably
We need to address the ‘demand’ side so as
addressed and gradually the infrastructure
to improve equipment utilisation.
projects would gain the necessary velocity.
The current installation base of the equipments This will surely help the industry to get rolling.
in India is around 650,000-700,000 units, Escorts is ready for meeting the demand that
with >50% being owned by service providers will rise and so are our partners in business.
(both in organized and unorganized
India has the highest rate of adoption of
sectors). These machines need to be
digital technology.
actively put to some economic value at the
earliest. Covid-19 pandemic has created a Covid-19 and travel restriction have
novel challenge as regard the availability of further enhanced the role of connecting
operators and technicians due to their migration digitally the entire ecosystem of an
to their native places. A reverse exodus or an equipment. Now, by using an app, customers
alternative solution would be possible only can get all the after-sales services with the
compared to specialized equipment, and hence,
when the pandemic situation improves, and the click of a button. We are further improvising
are an easy pick for smaller rental companies.
current cloud of uncertainty goes away. and adding self-diagnostic and quick-fix
The increasing number of infrastructure procedures for our customers on this App.
Construction companies are under a lot of development projects across India will drive the This will be over and above the machine
pressure to trim capital outlay and this will construction equipment rental industry growth. performance monitoring and location tracking,
surely benefit the Rental companies as most Contractors and construction companies are which is available as a standard across our
of the contracting companies would prefer shifting their preferences toward equipment product range.
to hire. rental services to avoid the high initial purchase
All our machines are built with the best of
I will refrain for commenting on the short-term cost of construction machines. Furthermore,
technology and are at par with any other
implications for the Rental Industry as the the efficient selection, transportation, and
contemporary technology available in the
uncertainty of demand, liquidity availability, installation services offered by rental providers
respective product segments.
labour immigration etc., would remain a will propel the market size.
challenge in the immediate future. Having As we move to the new BS-IV emission norms,
A confluence of OEMs, financial institutions
said that, during uncertain time, most of the which are likely to be postponed to April 2021,
and contractors will help all the stakeholders
contracting companies would prefer to hire. the ECU would be mandatory, and this gives
to sail through this rough weather.
Construction companies are under a lot of us the leverage for having a fully connected
Economic activities need to be kicked started at product. We have already started to integrate
pressure to trim capital outlay and this will surely
the earliest to mitigate the economical implication and test the newly developed software and
benefit the Rental companies.
for the country and the resultant massive hardware and the results are exciting.
Given that the current rental penetration in India unemployment. I think that we have passed
is low (at around 8 to 10%), as compared to the first phase of “initial response” and are into
the global standards of 50 to 80%, this shows the phase of “recovery”. The Government is
the potential offered by this industry. The
versatile and low-cost equipment like pick-n-
carry (PNC) cranes, backhoe loaders, mid-size
excavators and vibratory compactors are the
preferred companions for any construction site.
These equipment are relatively inexpensive as
The long-term outlook for the transport infrastructure sector in India in We expect that the highly technical
infrastructure sector is optimistic and the next five years, driven by investments material and services required for
a number of projects announced earlier in flagship projects such as Sagarmala, complex projects’ execution will cost
are getting implemented. Bharatmala, dedicated freight corridor, higher than the pre-pandemic period,
The infrastructure industry has suffered high speed rail, and metro rail, etc. Then and companies also risk exceeding
majorly both in terms of reduced business there is the planned investment of `1 budgets for construction.
and inordinate delays in project execution lakh crore in setting up 100 new airports The restrictions on construction activities,
due to the lockdown and acute shortage by 2024 to connect smaller towns by halted production of materials, supply
of labour force. The lockdown may have adding 1,000 new routes. The `3.6 lakh chain disruptions, migrating workforce and
helped India contain the outbreak, but it crore announced for Jal Jeevan Mission slowing down of other related activities has
has put a lot of stress on the economy. to supply piped water to every rural had a cascading effect on infrastructure
household by 2024 is another large water development projects. The financial
The issue now is of limiting the damage
infrastructure development scheme that stability of many companies has been
and making use of the new opportunities
will be put to implementation. challenged beyond the current fiscal with
that may come our way. The Government
of India announced a `1.7 lakh crore The Atal Bhujal Yojana with an allocation substantial downgrade in earnings and
relief package in March followed by steps of `6000 crore for a five-year term imminent challenges in the working capital
taken by the Reserve Bank of India to was announced by the Hon’ble Prime management.
facilitate increased lending by the financial Minister with the principal objective of Many construction companies in India
institutions. The stimulus package of strengthening the institutional framework are facing liquidity crunch with pending
`20 lakh crore may help take the Indian for sustainable groundwater resource payments and mismatch in fund inflow and
economy towards the recovery path and management in seven States, viz. Gujarat, outflow. As the focus of the government has
will also help the infrastructure industry to Haryana, Karnataka, Madhya Pradesh, shifted to the welfare and safety of citizens
rebound. Maharashtra, Rajasthan and Uttar Pradesh. in the wake of the pandemic, infrastructure
Implementation of the scheme is expected investment has been deferred. The high
The government is working on
to benefit nearly 8350 Gram Panchayats in level of migration of labourers to their
developing the infrastructure sector
78 districts in these states. With the above native places has made the situation grim
with numerous projects, and plans and
schemes and initiatives such as Housing at construction sites and the working cost
schemes for increasing the country’s
for All, Swachh Bharat Mission and Smart is bound to escalate. The input cost of
growth momentum towards becoming a
Cities Mission, the government is working raw materials may also see an impending
$5 trillion economy.
on developing the infrastructure sector for increase due to short supply from abroad
A recent report by Kearney suggests that increasing the growth momentum towards and closure of manufacturing for a long
there will be an investment opportunity of reaching a $5 trillion economy. period in the country. We also expect that
US$ 575 billion (`4.35 lakh crore) in the
the highly technical material and services
required for complex projects execution will now on the safety and well-being of our The State governments have been asked
cost higher than the pre-pandemic period. employees with very strict protocol related to use the Building and Construction
Regardless of the contracting methodology, to regular health check-ups, cleaning and Workers Welfare Fund to provide relief
the companies risk exceeding budgets for disinfection of work places, maintaining to construction workers and relief under
construction. proper distance between each employee, the Pradhan Mantri Kisan Yojana will
We are monitoring the emerging thermal checking and wearing face masks be reaching over 87 million farmers for
business scenario due to the liquidity at all times. their sustenance during the period.
crunch and mismatch of cash flow and In business terms, we are monitoring The government and RBI are working
taking every possible step to mitigate the supply chain to ensure availability of to combat the slowing GDP growth and
the crisis. material at our project sites, getting the help the construction sector as it forms
We have started our project execution workforce back, monitoring the emerging the backbone of several other sectors.
with utmost care after the lock down business scenario due to liquidity crunch We are hopeful that the government will
situation eased. There is more stress and mismatch cash flow and taking every come out with more relief measures for
possible step to mitigate the crisis. distressed businesses including a long-
term moratorium on debt repayments
and redefinition of non-performing assets
for giving an opportunity for distressed
businesses across sectors. We also expect
that the government and development
agencies should increase the spending
on infrastructure projects as soon as the
situation becomes normal to reinvigorate
the industry and regain the momentum of
the economy.
Infrastructure issues need timely
intervention and proper solution to
move ahead from the declining curve.
In India, litigations are the main cause
of delay in construction projects due to
various reasons. Then there are other pain
points that need attention and fast remedial
actions. The major bottlenecks are delay in
2074 Million Litre Raw Water Reservoir, Sindhanur, Karnataka
19 MLD Water Treatment Plant, Gagreen A confluence of all vital players for a
range of implements in any large project
land acquisition, litigation and arbitration, industry and I believe that we are not far is necessary to increase business and
clearances from authorities, local agitation, away from using these in our projects as, profitability.
execution delays by the contractor, poor post the pandemic, there will be a greater
Halt in construction activities, invocation of
project planning and monitoring, geological desire for contact-less working with lesser
bank guarantees, revocation of contracts,
surprises, and inadequate funding and human intervention. Drone technology
late payments, labour crunch, and
estimates. All these issues need timely would become necessary for remotely
severe working capital pressure are the
intervention and proper solution to move monitoring the projects’ progress.
nightmares for any infrastructure company.
ahead from the declining curve. A study by Ministry of Statistics and In such a scenario further influenced by the
The pandemic has presented an Programme Implementation suggest economic ambiguity, a good collaboration
opportunity for the infrastructure that out of 1,698 central infrastructure is indeed required for efficient business
sector to transform with digitization development projects worth `150 crore management and increasing productivity.
and automation of project execution and above, 578 projects have reported Collaboration fuels development and
and with greater use of disruptive delays, 400 projects reported cost can effectively eliminate the occurrence
technology. We expect, that in the next overruns, and 202 projects reported both of several issues that hinders the
three to five years there will be a good time and cost overruns with respect to their infrastructure sector
integration of digital technologies in the original project implementation schedules,
FY 2019-20 projects in hand & order
construction industry. while 374 are on schedule, as in November
book.
The construction industry is considered to 2019.
SPML Infra Limited, a leading infrastructure
be the least digitized in comparison with It is a distressing situation that most of the
development and management company,
other industries but with this pandemic large infrastructure development projects
is providing drinking water facilities to over
creating widespread disruptions; the get delayed because of several reasons
50 million people in the country. Our 24x7
world of construction too will undergo a that sometime may also be attributed
urban water supply projects in Delhi and in
transformation. It is estimated that within to lack of automation and technology.
6 cities of Karnataka are helping 1.5 million
the next three to five years there will be The government’s efforts in addressing
people with clean drinking water. With
a good integration of digital technologies project delays are becoming increasingly
an order book of more than `4000 crore,
including Internet of Things (IoT), Cloud proactive and it should also make
the company is hopeful of getting new
Computing, BIM, Machine Learning, 3D advanced technology and automation as
projects under the Jal Jeevan Mission and
Printing and Robotics in infrastructure an integral part of the projects that can
other water supply and irrigation projects.
development projects. deliver business benefits.
Our power division is executing 16 power
The construction equipment too will not only An efficient infrastructure is the biggest substation projects in Tripura, which are
provide safety features, but also automation enabler for growth and India is set to being funded by the World Bank, apart
would now become an essential feature become the fastest construction market from a number of projects under the
of the fleet. The next wave of digitization in the world by 2030. Eastern Region Strengthening Scheme for
is coming through newer technologies,
For any large project to be successfully augmenting substations to 400 kV capacity
including general ledger technologies like
accomplished, collaborative approaches in 7 districts of West Bengal, Jharkhand
block chain and smart artificial-intelligence
are vital for achieving performance and Odisha.
(AI) that will revolutionize the construction
Wirtgen Group
Ramesh Palagiri, Managing Director
The Indian construction equipment industry volumes have
doubled since 2015 and most manufacturers have already
increased their capacities to meet the peak demand and the
anticipated demand, expecting the boom to continue. However,
today, we are at less than 50% or even lesser capacity utilization.
So, there is adequate capacity with most manufacturers and
component part manufacturers to meet anticipated growth in
demand starting next year and over the next few years.
Over the short term until August within India and from abroad – on time, to help this sector. We definitely need more
2020, we expect the activity in the meet the demand - as and when it picks investments to come from outside as well
infrastructure sector, the road sector up. The third challenge is trying to meet our for the government to fulfil its ambitions
and also the equipment sector to be at a customer expectations in terms of service plans that are in the pipeline for national
lower level and we expect things to start and spare parts support due to the various infrastructure development.
picking up from September onwards restrictions imposed due to the pandemic. Digitization and mechanization are
and for the situation to perhaps come The need of the hour is more long-term the only way forward for a healthy and
back to normal could possibly be investments at low interest rates for prosperous construction industry.
around the same time next year. infrastructure development. Over the past several years, MoRTH
Every calamity pushes us to look at new NHAI and the government have taken a has been encouraging the use of new
ways, innovative ways, and at alternate lot of initiatives to help the contractors. technologies and equipment to speed up
ways of doing the same things. We shall One of them is to release all the pending the construction work and also to take care
be much stronger once we come out of the payments which will help the liquidity for of the aggregate shortage. This trend will
Covid crisis. Currently, for the CE industry, the contractors as their revenues have continue and definitely benefit the sector in
demand shortage and demand uncertainty come down dramatically in the last 2-3 terms of speedy constructions and quality
is our biggest challenge. The second months. There is a need to get more long jobs. Beginning next year and over the next
challenge is with regard to our supply term investments at low interest rates for 3-4, years there will be good work done in
chain - getting various components from the infrastructure like roads which will the road sector.
Mechanization is the only way to • Introduction of Health, Safety and • Establishing a competent authority BCA
ensure that cost, time, and quality are Environment in engineering courses. (like the Building Construction Authority
optimized. • Compulsory internship for engineering of Singapore) which does dynamic
I have been a strong advocate of offline graduates. ranking of players across the country.
or mechanized construction for quite • Continuous assessment (continuous • Every project, especially Government,
some time, primarily because that is how professional development) of practicing should be time bound with minimum
the world does it, and it is the only way engineers as mandatory. inconvenience to the public (it is painful
to ensure that cost, time and quality are to see the mess around construction
• Bringing focus on industrial training
optimized. However, this approach is still sites).
institutes so as to get qualified
at a very nascent stage in the real estate • An integrated approach for infrastructure
carpenters, barbenders, tile masons,
industry of India. Post lockdown, getting within cities should be given priority.
electricians etc.
the labour force back will be a mammoth
• Mandatory use (complete or to a If we adopt these measures, we will be
challenge, and could drive the industry
large extent) of offline or mechanized able to achieve world-class construction of
(out of compulsion and not choice) towards
construction at sites. housing, infrastructure, and other projects,
the mechanized form of construction (be it
earlier than at the current rate.
precast or other mechanized techniques).
Starworth has invested heavily in design
and build of precast buildings, and other
forms of mechanized construction like
fair finish or plaster-free concrete surface.
The idea is to get maximum productivity at
site, as productivity alone will be the main
differentiator in the construction industry in
times to come.
The paradox in Indian construction
industry is that though it is massive
(contributing to more than 5% of the
GDP), is not organized or structured.
In my view, the long-term solution for us to
have world class construction would be:
Bangalore metro
The big question today would be the There is going to be pain in the short- Infrastructure development has always been
ability of the Government to put in place term for the Infrastructure as well as the on top of the agenda for the Government,
the required resources and funding to CE Industry, as both of them are currently as it is perhaps one of the meaningful ways
ensure the revival and continuity of reeling under the ill effects caused by the to churn the wheels of the economy. So, I
Infrastructure development. lockdown: migrant workers being the prime am sure that the Government will continue
constraint for the construction industry, to take all possible steps to ensure the
Covid-19 is a once in a life-time event and
and the temporary evaporation of demand health of the Infrastructure sector. But the
is causing unprecedented effects on the
for equipment being the most prominent big question today would be the ability
economy and livelihood of people across the
one. This phase is expected to continue of the Government to put in place the
globe. The month of April was more or less
well into Q2 of this year and hopefully the
a complete wash-out for the Construction required resources and funding to ensure
second half of the year will be better, but
and the CE Industry and partial activity the revival and continuity of Infrastructure
I am sure that the situation will normalize
started only in the month of May. development.
around the same time next year.
Contractors, OEMs, Rental Companies
and Financial Institutions will have
to work hand-in-glove to ensure the
viability and sustenance of each other’s
businesses.
The demand scenario post Covid-19
lockdown has been bleak so far and is
the biggest challenge being faced by the
CE industry in the short term. The other
two major challenges would be to ensure
liquidity and viability of the ventures
with 50% reduced business scenario.
Contractors, OEMs, Rental Companies
and Financial Institutions will have to work
hand-in-glove and ensure the viability and
health of each other’s businesses and their
sustenance.
Equipment funding is a very important
aspect and the recent lockdown and
subsequent moratoriums have created an
array of problems for the NBFCs and the Our country is already using Over the years, a lot of high-end and critical
reason why the CE Industry at the current technologically advanced machinery for components have been indigenized and
juncture is feeling a constraint. This needs road construction, which is comparable this is a continuous process, which primarily
to be addressed as soon as possible to that of our global peers. depends on the consumption patterns of
for the benefit of all associated with the Going forward, further digital inclusions such components and aggregates within the
infrastructure sector to ensure the desired in the machines for mapping, controlling, country. Most of the leading global component
availability of equipment at the project and assisting in increasing productivity and manufacturers have set up shop in India and
sites. reducing costs, will be the need of the hour, we really do not foresee much of the demand
and we are working on the same at ACE. supply gap over the next few years.
Louis Berger
Kshitish V. Nadgauda, Senior VP & MD Asia
We are ready and poised to continue to work on infrastructure
projects that are in the pipeline across diverse sectors including
transportation and urban infrastructure – planning and design.
We have competent and experienced teams available to be
deployed at a moment’s notice on the most complex projects;
and we are eager to continue to develop world-class solutions for
our infrastructure needs.
The focus should be on bringing ongoing government would need to urgently infuse is reached. It is important for ongoing
projects back on track to meet the urgent funds into the infrastructure sector to get projects to resume as quickly as possible,
needs of the nation’s infrastructure, much-needed projects off the ground. for which the vast majority of firms would
which would also boost economic Apart from serving the urgent needs of the need a helping hand, all in accordance with
growth and generate mass employment. nation’s infrastructure, such steps would respective contracts. In addition, issues
In the short term, due to the pandemic- boost economic growth and generate mass with the availability of labor at pre-lockdown
related lockdown, the focus should be on employment. levels would need to be urgently addressed.
bringing ongoing projects quickly back Relief to contractors and other New infrastructure projects could potentially
on track. The government has already stakeholders would need to be expedited be delayed to some extent depending on
extended a helping hand to contractors for the management of cash flow before the availability of funds since health and
and other stakeholders in the infrastructure a crippling situation is reached. social programs would also need undivided
sector in an attempt to offset to a large In the short term, contractors and other attention during and in the immediate
extent losses that the firms have incurred as stakeholders would need much-needed aftermath of the COVID-19 pandemic.
a result of their inability beyond their control relief in accordance with contractual Force The lockdown and 100% WFH drove us
to progress with ongoing works. Majeure provisions to overcome the loss to identify ways in which we would be
All stakeholders would also have to work of revenue while incurring costs during better structured and organized. We
together to identify solutions for the labor the lockdown period. Such relief would used technology solutions to the fullest,
shortage resulting from the movement need to be expedited for the management and devised ways and means to boost
of labor back to their homes across the of cash flow of the contractors and other communication between teams through
country. In the medium and long term, the stakeholders before a crippling situation video conferencing tools.
As a consultant, the most lasting impact
of the lockdown is likely to be from the
experiences since 23 March 2020 of
‘Working from Home’ to the 100% extent for
our head and design offices. Our experience
in this regard has been largely positive. We
used technology solutions to the fullest, and
devised ways and means through which
we actually boosted daily communication
between teams through video conferencing
tools. The lockdown and 100% WFH drove
a need for us to identify ways in which we
would be better structured and organized.
WFH also cut out the largely unproductive,
CASE India
The construction sector may take some clearances and fast completion of projects. The government is trying its best to secure
time to recover but when it does, it will As long-term measures, the government the lives of the people and at the same time
have a positive impact on equipment has announced strategies to revive the maintain the stability in the market. The
demand as well. CE sector, such as focussing on doubling announcements made by the government
COVID-19 has been an unprecedented the construction projects which will add have reassured that the infrastructure
occurrence and has affected businesses to more demand generation. Recently, sector will reinvigorate soon. What impact
worldwide. The government is trying its NHAI announced the removal of land these announcements will have on the
best to contain the situation and we’re acquisition hurdles which will speed up recovery remains to be seen, but we’re
hopeful the next quarter will be better. As the project completion rate. The MSME confident that the government will continue
short-term measures, the government has scheme announcement is another scheme to take corrective measures to bolster the
allowed resumption of construction and which will enable vendors to return to market situation and the economy, further.
manufacturing activities on priority basis strong business and strengthen India’s Our financial arm CNH Capital is making
and immediate payment release from manufacturing sector. The construction enough capital available for customers
PSUs. It also announced an economic sector may take some time to recover but who wish to make purchases and
stimulus related to the construction sector, we’re hoping it will have a positive impact has also come up with a 48-hour loan
which will hopefully start helping in easy on equipment demand as well. approval policy.
To effectively tackle this situation,
companies also need to step up and
address the concerns of the market and
the customers. To revive the industry, they
need to create quick and effective solutions
which give customers the confidence to
invest in such products and services. At
CASE, our financial arm, CNH Capital
is making sure there’s enough capital
available for customers who wish to make
purchases. To provide faster solutions to
our customers we have come up with a 48-
hour loan approval policy. We’re hoping that
any liquidity crunch is alleviated through
these efforts.
These uncertain times call for harmony The Government’s keenness in The government has also announced
and collaboration between contractors, promoting the use of advanced measures to facilitate hassle-free business
OEMs, rental companies and financial technology augurs well for the sector. set up in the country. As per the industry
institutions. A confluence of this kind The entire market is currently in a lull; reports, some industrial parks and
is likely to lead us towards an ideal however, we hope to see it recover additional geographical areas are also being
business scenario which benefits all soon with the government’s initiatives. earmarked for the purpose. This situation
stakeholders, hence, all of us should A report by NIP suggests that the new will lead to better R&D, infrastructure,
strive to work towards this. and upgrading infrastructure projects logistics, delivery etc. and subsequently a
Since this pandemic has affected all with `111 trn of investment will be key to more robust product line in the country.
commercial activities, it is imperative that raising India’s competitiveness and making CASE is producing world-class
for a faster and more efficient recovery, all it a `5 trn economy by 2025. Hence, the construction equipment in India, plus,
opportunities are on the way and CASE
parts of the machine come together and most of our machines feature our
India is ready to make the most of them in
work towards building the future. At CASE, own engines, so we’re able to fulfil
the upcoming period.
we have identified the benefits of such a requirements for parts and critical
collaboration and have acted on it. Our The Government’s keenness in promoting components more accurately and timely.
financial arm, CNH Capital, works hand the use of advanced technology augurs
In the wake of a pandemic which has
in hand with our AG and CE businesses. well for the sector. CASE has always
sealed all borders between countries and
We also have a strong network of dealers been a technology first brand. We are
people, it has become important to be self-
firm believers in adopting technology that
who work in real time with contractors and sufficient and reliant in order to survive
enables us to work better – our machines
OEMs. Currently, we’re also exploring the and thrive further. The government has
are prime examples of this. Whether it is the
rental market with a few of our machines also re-emphasised focus on the ‘Make in
revolutionary FPT engine or the state-of-
and are doing our best to ensure the revival India’ movement which carries the same
the-art Telematics system – we like leading
of the market. sentiment. Additionally, many countries
from the front and will continue to do so.
have expressed interest in relocating their
manufacturing plants to India. If planned
well, this could prove to be a defining
moment for India and for the construction
equipment sector which is highly dependent
on import of critical components.
At CASE, we have a manufacturing plant in
Pithampur, Pune, and in Noida where we’ve
been locally producing our world-class
construction equipment range; this brings
us a distinct advantage. Since most of our
machines feature our own engines such as
the revolutionary FPT engine, we’re able to
project and fulfil our requirements for parts
and critical components more accurately
and timely, thus ensuring no gaps in the
supply of the same.
There will be high demand for reputed with minimal execution risk, even if the The economic relief measures
developers with minimal execution property is relatively higher priced. Home announced by the government will allow
risk, even if the property is relatively buyers will carefully consider the quality real estate developers to recalibrate
higher priced. of the developer, project, neighbourhood, their business strategies and focus
Real estate sales in India were improving environment, and amenities. on high-priority operations without
in the first quarter of 2020 until the social Disruption in the supply-chain of raw additional financial burden.
distancing advisories by the government materials may force developers to The economic relief measures announced
came into effect, which reduced site visits. source from alternate markets, which by the government are extremely positive
Due to the subsequent lockdown, home will impact their price and increase for the real estate sector at large. The
buyers deferred their decisions until there construction costs. near-term effects of the lockdown will be
was more clarity regarding the government As we emerge from the lockdown, prices offset by these relief measures which look
response and the overall market outlook. are expected to continue their upward to bolster liquidity, facilitate credit flow and
Likewise, developers are likely to defer trajectory. More support will be required to ease the pressure of timelines. This will
new launches previously planned until ensure the health and welfare of workers. allow real estate developers to recalibrate
the latter part of the year to coincide with Construction costs will increase due to the their business strategies and focus on
the festive season. The priority right now additional labour maintenance costs, as high-priority operations without additional
will be to sell ready-to-occupy inventory. well as the paucity of workers resulting financial burden.
Now that the situation is under control, the from the lockdown. The provision to invoke force majeure for
market is expected to regain its previous Construction costs will increase as allied the COVID-19 period will relax the timelines
momentum. Although there will be a sectors such as cement, sand, and steel for project delivery while maintaining RERA
temporary slowdown in sales, it is unlikely rely on importing raw materials which may compliance. New project registration
to affect overall real estate prices. see restrictions. This will cause the supply certificates can be issued and, registration
Real estate is viewed as a safe investment; of building materials to decrease and and completion date can be extended
the emergence of an economic crisis accordingly their price will rise. A significant for up to six months for newly registered
only reinforces this sentiment. Owning disruption in the supply-chain of raw projects without individual applications.
property elicits a high sense of security materials may force developers to source This will help ease the anxiety of both
when there is uncertainty and turmoil in from alternate markets, which will impact developers and consumers and ensure the
the financial market. Furthermore, home their price and increase construction costs. completion of projects. The announcement
buyers will largely favour risk-free property The decreasing value of the rupee against of a special liquidity scheme of up to Rs
investments during this time. There will the dollar results in inflated prices for raw 30000 crore for NBFCs, housing financiers
be high demand for reputed developers materials, which also increases costs. and microfinanciers, which will be fully
guaranteed by the Government, will ensure Moving forward, real estate developers imports, and allow extension of measures
the much-needed liquidity in the real estate will have to create a contingency plan to ease financial stress.
sector. Overall, these moves will help ease to ensure employee health and safety The real estate sector will have to
the near-term financial burden for the monitoring, crisis management training, bring efficiency into its operations and
sector and keep prices on their upward how to maintain operations with significant undergo a digital transformation in order
trajectory. absenteeism, remote working infrastructure to ensure a complete revival. In fact,
The fiscal, monetary and administrative and capabilities, and travel restrictions. digitization and mechanization is the
measures will create conditions that will The extension of the moratorium on term only way for a prosperous construction
enable a gradual economic revival as loan repayments for another three months sector.
we ease out of the lockdown. will be especially helpful for those who Staying connected with potential customers
The positive initiatives announced by have home loans as the uncertainty of and maintaining a sales pipeline without
the government, including relief funds, the lockdown may affect income. The the benefit of face-to-face interactions
loan moratorium and repo rate cuts, accommodative policy stance taken by the or site visits is a tremendous challenge.
must be implemented immediately. The central bank will boost market sentiment Having a robust IT infrastructure will allow
repo rate cuts are a positive move, but and lend confidence to the financial developers to create virtual workspaces
the transmission of these rate cuts must system, while maintaining liquidity as the for teams to minimise interaction and
be implemented with immediate effect economy recovers. The measures outline meetings. For most activities, including
to effectively bolster the economy. Swift plans to improve functioning of markets, administration, procurement, marketing,
implementation of the relief measures will increase investments by FPIs by voluntary training and recruitment, work can continue
boost confidence and revive demand. retention route, support exports and digitally without significant interruption.
Teams can communicate via online chat, Mivan technology offers higher
email, tele- and video conferencing. construction efficiency, close to zero
Today, digital media is the most cost- wastage, and a massive reduction in
effective and personalized marketing the skilled resources required.
channel. We regularly conduct online Aparna Constructions’ implementation
behavioural experiments to understand the of Mivan technology in construction
consumers’ unique mindset and accordingly offers significant advantages of quality
adopting the most suitable communication and speed. Aparna is one of the first
strategy. Each user is provided with a developers to use this technology in
customized web experience based on Telangana. Mivan technology is an
personalized mapping. This is followed by aluminium wall formwork that is an
the integration of automation tools for lead excellent replacement to the conventional
nurturing through emails, social media and construction technology. It has been
online advertisements. This results in a used in two of our projects in Hyderabad:
more immersive and personalized online Aparna Serene Park at Kondapur and
experience. Aparna Sarovar Zenith at Nallagandla,
Big data plays a major role in our planning which is one of Telangana’s and Andhra
and design of digital marketing initiatives. Pradesh’s largest residential projects.
The company website is a comprehensive The speed and efficiency of Mivan
platform for its multiple projects in different technology ensures that the surrounding
cities and locations. The website provides natural area and shrubbery is not
users with a wide range of choices, in a disturbed during construction.
mobile-first approach, by providing each Aparna Serene Park, Block -I As Aparna Constructions enters the
user with a personalized web experience. affordable housing segment, Mivan
We utilise virtual 3D walk-throughs of our to make remote working part of their technology will be put to its strongest test.
projects for an immersive experience, and company’s culture. The sector will have Mivan technology offers higher efficiency,
use photos and videos to show the status to introduce technology-based systems close to zero wastage and a massive
of each project so that buyers have an such as e-learning into their training and reduction in the skilled resources required
updated view on the progress. development programmes. This means for constructing the shell and core of the
With the benefits of tapping into a incorporating personalised micro-learning, building, thereby substantially bringing
geographically diverse talent pool, gamification, virtual reality, and augmented down the overall cost of the project.
developers will increasingly explore how reality for corporate learning. FY 2019-20 projects in hand & order
book.
Aparna Constructions has completed
41 projects comprising fully integrated
gated communities of villas, apartments
and commercial buildings. These
projects cover 23 million sq.ft. with an
additional 15 million sq.ft. currently under
development. The company has also
ventured into affordable housing, which
was given a major boost with the granting
of infrastructure status and is the most
incentivised segment for both developers
and buyers. We are also preparing to
enter commercial realty including retail
and warehousing. We will be developing
around 5 million sft of commercial assets
and 10 boutique malls across Telangana
and Andhra Pradesh, and have received
approvals for setting up a 3-lakh-sft mall
at Nallagandla in Hyderabad.
Aparna Sarovar Zenith - Entrance View
Ammann India
The long-term market growth for privileged and MSMEs. To top it all, with announcement yet for a special package for
infrastructure and construction the lukewarm response to BOT projects, this sector. Right now, the industry is in a
equipment sector is positive, but the it is not clear as to how much of fund the wait and watch mode.
short-term does not look very promising Government will be able to allocate to Ammann is working very earnestly to
with the GDP expected to go southwards. the road sector to award projects under mitigate the financing problems of its
The long-term market growth for EPC, this fiscal. I think that the equipment valued customers; however, the revival
infrastructure as well as for equipment sector will see a drop in sales volumes in /new awards of projects are entirely in
sector is positive as the Government FY 20-21, but time alone will tell by what the hands of the Government.
is committed to improving the road percentage.
The challenges for the CE industry are the
infrastructure in the country – expressways, That the Government has infused the same as that being faced by the engineering
highways, state roads, village roads etc. much-needed liquidity and positivity in and automobile companies. These include
The short-term however does not look very the system is itself a moot point with a lower demand; increase in input and
promising with GDP growth expected to go high percentage of economic experts production costs that cannot be passed on
southwards and the Government in need of not really satisfied with the measures. As to the customers at this time - leading to
huge funds for providing relief to the under- regards the road sector, there has been no reduced bottom-lines; supply chain issues;
higher cost of aftermarket services; and Going forward, I am confident that the there will be adequate support from the
hurdles for customers in getting loans for demand vs supply equation will balance Government as well. Going forward, I am
capital purchases. out well with India-made components confident that demand vs supply equation
Initiatives have been taken by all the for the CE industry. will be balanced well with India-made
concerned parties for equipment finance Necessity is the mother of invention and the components for the CE industry.
and deliveries. Ammann is working Indian expertise in engineering is no less Regarding the planned investments of
very earnestly on this front to mitigate than that available in developed countries. MoRTH, I feel that we should allow time to
the financing problems of our valued The Honorable Prime Minister of India has the Government to revisit the action plan
customers. However, the revival / new strongly reiterated the need to develop as the world in general and our country, in
awards of the projects are entirely in the things locally. The process has already particular, are facing a pandemic challenge
hands of the Government. started and since most of such suppliers of gargantuan proportions.
will come under the MSME segment,
Puravankara Limited
Ashish R. Puravankara, Managing Director
We have invested our time in testing technological tools in order
to drive our operations and overcome the hurdles that came
with the Covid-19 lockdown. We introduced our digital booking
platform through which we were able to offer a site tour and
booking options to customers in the comfort of their homes. In
fact, the technologies pioneered by Puravankara have not just
revolutionized construction practices but have also modernised
the way people live at homes.
We may witness further consolidation to normal; there are some delays in the In the future however, we may witness
of the market and only resilient procurement of raw materials and the further consolidation of the market and only
developers will be able thrive in such an industry will take some time to get back resilient developers will be able thrive in
environment. on track to its projected growth rate. Until such an environment. It will be imperative
then, we will have to focus on restarting to introduce several interventions in terms
The pandemic has slowed down the entire
operations in a phase-wise manner to of designs and operations in order to
economy of the world. Likewise, the real
ensure the safety and well-being of the ensure the safety of the homebuyers.
estate industry too has been impacted
by the lockdown, which has disrupted labour force and employees, who play an The Government has been supportive of
the realty ecosystem. In the short term, integral part in operations. Developers will the real estate sector by announcing a
things are yet to pick up pace and return have to innovate their strategies to grab 6-month extension in RERA deadlines,
the attention of the home buyers. while the RBI has also taken measures
to improve the liquidity by reducing the
REPO rate by 40 basis points.
While the Government and RBI have taken
quick decisions to infuse liquidity, few
more concerns need to be addressed. For
example, the RBI announced a reduction in
the REPO rate for banks. However, several
banks are yet to pass this benefit to people
applying for loans. Despite the move being
beneficial and much needed, the trickle-
down effect is yet to be seen in home and
personal loans availed by people.
The government has announced a `30,000
crore infusion for NBFCs and HFCs, which
account for more than half of the lending
that happens in the real estate sector.
This move will encourage these financial
institutions to lend more to people, which
will benefit the sales in the sector.
The government should enable the PPP
model (Public-Private Partnership) to
Purva Atmosphere further improve the infrastructure of the
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Cover Story
The construction sector in India is very Once the projects resume their the highest norms for employee care
important as it contributes to around construction, it will be important to navigate while ensuring that our equipment meets
60% of the total investments, and it the recovery phase well. The project the quality and performance parameters,
will come back strongly to support the implementation cost may go up and could which our customers have come to know
economy’s revival. experience a likely delay of a few months. and expect. Besides this, our service team
This is an exceptional year and the Priority should be given to the clearance follows the strict predefined SOPs for on-
pandemic has impacted projects of pending projects and completion of site visits, which are necessary to ensure
worldwide. With the easing of the projects nearing completion, which could our portable air compressors and light
lockdown, we look forward to infrastructure act as a quick win for reviving the economy. towers are always up and running.
and mining projects getting kick started, Our Power Connect mobile app Collaboration is going to be important
thereby giving us continued opportunities supports customers online with the for a faster recovery for all sectors. Take
to touch lives and improve infrastructure help of parts manuals and step-by-step for example, the waterwell compressor
needs of the people in India. We expect assistance over the computer or phone. segment. The rig owners’ association in
a staggered growth in the short-term but We have taken the necessary steps to Tiruchengode is going to play a key role in
stability and greater demand in the long- ensure social distancing and hygiene restarting drilling operations and we stay
term as the relief packages to boost the norms in our production facilities in Chakan connected and understand their concerns
economy get implemented. and Dapodi located in Pune. We maintain while shaping up our portfolio for their
Digital launches will boost the measures being taken by the government. Codename Amazon in Andheri East. Such
developers’ confidence and help revive The impact will be a temporary one as the digital launches will boost the developers’
the Real Estate sector on the back of situation is bound to recover sooner or confidence and help revive the Real Estate
lower home loan rates and reduction in later. The government advisory to avoid sector on the back of lower home loan rates
stamp duty. social activities is certainly going to impact and reduction in stamp duty
The struggling Real Estate sector and site visits and housing sales. The problem of a shrinking economy
the home buyers trapped in Covid–19 Vijay Khetan Group has initiated a can only be solved by lowering the
worries, have been relieved a bit with the digital launch for their upcoming project EMI rates, giving enough time to repay
loans, and more credit loans.
Now that government has allowed the
functions of construction activities, it is
now necessary to first focus on under-
construction projects. Proper health and
hygiene will always remain a priority of
labourers who are working at the sites.
We are conducting medical check-ups
to ensure their proper health and have
provided labour camps and resources for
their daily food and other necessities.
With the economy majorly falling, the
government needs to address the problem
of liquidity crunch faced by everyone. The
problem of a shrinking economy can only
be solved by lowering the EMI rates, giving
enough time to repay loans, and more
credit loans.
The focus of developers and the
industry at large needs to be on project
completion and timely delivery.
For the speedy recovery of the sector, which
was already affected due to pandemic, we
expect the government to implement a Real
Krishna Residences
Estate stress fund. A policy to clear unsold A digital revolution will play a big role The adoption of various revolutionary
inventory first and the most important better in delivering services to the people in construction technology is a vital step
clarity on GST. There is great confusion India. towards making budget housing available
among the taxpayers, as they are clueless within market-viable timelines.
Given that the Real Estate sector
about how much they are obliged to pay on contributes significantly to India’s Use of technologically advanced construction
purchase of homes. When there is better economic growth, it is important to equipment and support of OEMs will help the
clarity, buyers will certainly leave the fence broadly analyse on how the outbreak Real Estate players to make up lost time and
and come back to the market. will influence this sector, but it’s still complete projects on time. This will help in
bringing India a step closer to meet its massive
The industry aspires to see a win- premature to assess the current impact.
shortfall of affordable housing. Construction
win situation for the developers and A digital revolution will play a big role in
technology is constantly evolving, allowing for
homebuyers. With GST, stamp duty, delivering services to the people in India faster completion than in previous years.
income tax, and capital gains tax already that aims to achieve seamless delivery
a burden on homebuyers; an income tax Adoption of technologies such as aluminium
of services through digital governance.
rebate could be provided for new home formwork are major steps in this direction. This is
Consumers will prefer seeing properties
a versatile construction technology that involves
buyers. A temporary suspension of GST or online through virtual tours and may not
recyclable and reusable materials and results
introduction of 1 per cent GST for under- visit the site physically. The industry is in durable and highly sustainable buildings. By
construction properties would help reduce taking all possible measures to mitigate using the aluminium formwork, we are getting
the transaction cost for the homebuyers the impact of the pandemic on their accurate dimensions and sizes as per the plans,
and would boost the much-needed demand businesses by ensuring favourable which enhance the quality of work. Such modern
in the market. The focus of developers and pricing, moderating sales targets, etc, formwork technologies reduce the construction
the industry at large needs to be on project and we hope for the continued support cycle time as compared to conventional
completion and timely delivery. from the Government. formwork systems. Such technologies are
being increasingly used by most of the reputed
developers in our country.
The government is keen to revive in India, after agriculture. The government The economic impact of this prolonged
construction activities with the necessary is keen to revive construction activities with lockdown will be enormous; figures
safety precautions, and we expect the the necessary safety precautions, and we coming from various industries and
public infrastructure projects to start expect the public infrastructure projects to sectors are beginning to show how badly
picking up speed in the weeks to come. start picking up speed in the weeks to come. businesses across the sectors have
However, private sector construction, both suffered already. Many large industries;
The construction sector is a crucial
in commercial and residential spaces, is including manufacturing, aviation, travel
economic driver of the country; it is also
likely to remain subdued for at least one or and hospitality, and, of course, construction
the second-largest provider of livelihoods
two quarters. saw zero output or economic activity during
the lockdown period. The near-complete
shutdown of all economic activity not only
meant that the economy further slowed
down, and fuelled talk of an impending
recession, it also meant that the recovery of
Indian economy would be forecasted to be
slow and prolonged.
Digital workflows will unlock hidden
efficiencies and boost productivity, which,
in turn, will help the construction industry
cut costs, meet project deadlines, and
safeguard their profitability.
Even when the lockdown will be lifted
completely, the social distancing norms will
still apply, till we have eradicated the virus
altogether. All onsite construction activity is
labour-intensive, and this factor alone means
that the construction industry will probably
take longer to recover, since lesser people
on site will slow the pace of construction.
But the industry is looking for various ways
to mitigate its business risks and ensure a
quicker recovery, besides future-proofing
Tekla Structures 2020 and Trimble Connect workflow its operations. This implies drastic changes
Luknow
Ahmadabad
Kolkata
Pune
Amaravati
Bengaluru
Kochi
Tekla Structures is the flagship product of for routine tasks in hazardous construction
Trimble Solutions India and also the most environments to improve safety, efficiency,
modern 3D BIM software in the market. It and consistent data capture. Furthermore,
makes accurate, constructible modelling software such as Trimble CrewSight enable
of any structure, regardless of its size or firms to manage worksite by approving
material. Tekla Structures is supported entry onsite of the labourers with prior
by Tekla Structural Designer, which gives mandatory health checks and making sure
engineers the power to analyze and design certifications are in place. This can also
buildings efficiently and profitability. Tekla track where the workers are at any point
Tedds is a powerful software solution in time and maintain social distancing, and
that automates repetitive structural if anything should happen, alert response
calculations. teams to react to the situation immediately.
Vico Office and Trimble Connect Trimble’s portfolio makes the process
complement Tekla Structures in the of construction quicker, safer and cost-
continuum. Vico Office is designed for efficient. Use of technology enhances
contractors and construction planners; productivity and delivers a rapid return
it enables constructability analysis and on investment through better utilization
in its processes and practices, but most coordination, quantity take-off, 4D location- of materials, assets and workers.
industry stakeholders are coming around based scheduling and production control, From conceptual design to ownership
to the view that Covid-19 pandemic will and 5D estimating. This class-leading and maintenance, Trimble tech
fast-track the digital transformation of the solution is of enormous value, and leading helps construction professionals and
construction industry’s ecosystem; which contractors in India are already adopting it building owners and occupiers achieve
has otherwise remained remarkably aloof in their work processes. transformative results.
to using the technology until now, and Trimble Connect, a powerful cloud-based Disruptive technologies not only have
speed up industry’s revival. collaboration platform empowers teams the potential to create new benchmarks
Challenges are nothing but opportunities involved in the design, construction of value for all stakeholders in the
in disguise. The adoption of modern and operation of buildings to come construction ecosystem, but also shape
construction tools and techniques will be together under one umbrella. It creates new competitive advantages in the post-
necessary to safeguard the health and communities of collaboration across and Covid world.
provide workplace safety in the industry, within disciplines, integrating data not only The absence of workforce in big cities due
while helping the workers meet social from its wide varieties of applications and to reverse migration will no doubt have an
distancing requirements. These tools will devices, but also non-Trimble apps and adverse impact on construction for a while.
be critical for teams working remotely too. devices. The ongoing projects may see delays of a
Above all, digital workflows will unlock Taking its digital transformation vision to few months on account of labour shortage.
hidden efficiencies and boost productivity, the next level, Trimble has partnered with Also, the supply chain of materials has
which, in turn, will help the construction Hilti and Boston Dynamics to use robots been disrupted for material manufacturing
industry cut costs, meet project deadlines,
and safeguard their profitability.
Trimble technologies are designed
to make the process of construction
quicker, safer and cost-efficient as use
of technology enhances productivity
and delivers a rapid return on
investment through better utilization of
materials, assets and workers.
The post-pandemic era is likely to
be defined by a significant digital
transformation in every sector, including
the construction sector. What the
construction industry needs to do is to
embrace relevant technologies and tools
throughout the ‘construction continuum’.
Trimble technologies are designed to
help optimize the complete Design-Build-
Operate (DBO) lifecycle of buildings. Tekla Structural Designer 2020 Grasshopper Direct Link
What the industry firms really need is to Trimble offers a host of value-added
adopt a holistic view of the full construction services to its customers in India.
lifecycle or ‘continuum’ to address this LaborMGMT-S3 Our value-added services in India include
matter. The construction continuum for local software support, training, consultancy
Visualizing the construction process as a
buildings is spread over the five key stages and various online services including Tekla
continuum or placing a building (structure)
of planning, designing, engineering, User Assistance. We offer a selection of
along the various stages of a continuum is
construction, and finally, occupancy and training courses aimed at both beginners
a powerful way for construction companies
maintenance. Each stage of the lifecycle and advanced users of our software. We
to analyze the business value of various
is rapidly being transformed by technology provide e-learning materials like product
technologies at each stage. Using the
the world over through a holistic approach guides, support articles, tutorials and
same scale as a reference, they can readily
and engagement, often driven by the extension help to customers for self-
see the advantages digitalization brings to
owners themselves. learning too.
actual construction and/or operations.
TACTIVE
Devarajan Chinnusamy, CMD
Technology will enable better and more efficient management
of construction activities post the pandemic. Being a technology
company serving the construction industry, we have designed
all our modules - tendering, estimation, budgeting, scheduling,
project execution, procurement, material, human resource and
finance - to connect and control all the 5 Ms (money, men,
material, machinery, and minute) of construction.
Every aspect of readiness in a construction The major challenge will be to restore the surveyors to ‘see’ the site from the office. Once
company like finance, methodology, morale of the staff and workforce. Though data entry for daily progress and daily labor output
manpower engagement, staff motivation, everyone in our organisation is committed have been entered, the PMs and management
and geographical familiarity needs to be and has been with us for a long time, there are able to make sure that the projects are on
understood in the right perspective. has been some stress at their personal level, track and within profitability levels.
The lockdown has had maximum impact on which has to be understood by the company, We have recently acquired a client for our
the employees, labour and project schedules. before engaging them in various projects. ‘contract labour manpower supply software’
Our parent company, URC Construction, Similarly, the migrant labourer needs to be where we are doing the implementation of
which is a 60-year old construction and given the best of care and facilities so that the product completely remotely. Although the
infra company, sees this impact of lockdown he will happily report to work. Apart from this, product is on the premises, considering the
both as a challenge and an opportunity to lean manufacturing practices in construction Covid-19 situation, we are moving everything
relook at our readiness to become a more may become a way forward. online and remote.
agile and stronger company. Since this is The Covid-19 situation has opened up This has come as a strong supportive point
going to impact the economy for a minimum opportunities for developing innovative for existing construction companies, when our
3 to 4 quarters, every aspect of readiness tech solutions; at Tactive, we are now clients decided to adopt ‘work from home’ for
in a construction company like finance, moving everything online and remote. the information communication, reviewing the
methodology, manpower engagement, staff Many construction and contracting companies performance, addressing the client requirements,
motivation, and geographical familiarity needs across India and the Middle East, including making payment disbursement to labourers and
to be understood in a proper perspective, in our parent company, have been using Tactive vendors, and looking for further improvements
order to overcome a crisis like this. software for the last 10 years. The software like lean practices, digitisation etc.
solutions help project managers and quantity Digitalising the industry, particularly the
construction activities, is still a challenge,
because in India, and across the globe,
the operational processes are yet to be
standardised.
Each company has its own processes, practices
and culture. Over and above this, the clients
who are the project owners or implementing
agencies, do have their own individual systems
and expectations. For sustainable construction
process management, these procedures have
to be correctly mapped in any ERP software.
TACTIVE has been designed in a way where
Armix Machinery
Manoj Kumar, Managing Director
We believe that since global economics and priorities are
changing, in the present scenario, only the best high-tech and
affordable machines will be in demand. Armix is well-prepared
with its team of highly experienced technical experts to offer
entry-level affordable solutions along with completely automated
turnkey installations in the field of concrete blocks, fly ash bricks,
interlocking pavers, kerb stones, dish channels, and flag tiles,
apart from ready-mix plants for concrete.
OUR COMPETENCE,
YOUR INNOVATION.
bauma CHINA, Shanghai, SNIEC,
November 24–27, 2020
REGISTER NOW!
www.bauma-china.com/
register
www.bauma-china.com
Parijatha Machinery
Ramesh Jayaram, Managing Director
Parijatha has always focused on developing environment-friendly
products. Our flyash based brick and block making machines are the
most successful in the market due to their proven utilization of the
maximum percentage of fly ash as compared to other machines in the
market. Moreover, they consume the least amount of power, without
compromising on performance and efficiency. Due to their innovative
features and a robust construction design, our machines consume the
least number of consumable parts, and thereby reduce their running
costs, while also conserving the environment.
Having a strong Infrastructure can spur Obviously, the government’s priority will As mentioned, investment in machinery
the economy and the country into the be health care, jobs for migrant workers, and equipment is the least and last of the
next level. and boosting the economy. Achieving options and therefore cannot expect to
The growth prospects in the Infrastructure all of them simultaneously is quite a see exponential growth. Thankfully, timely
construction is bound to see a growth in challenge for any country. Having sufficient and well-managed lockdown measures
the long term but due to other pressing resources and a formidable war chest can have ensured restart of the economy due
issues and commitments the government make a huge difference during such times. to which orders are already beginning to
has at present, the inflow of funds is bound Unfortunately, India does not have that flow. Now, the challenges of logistics, safe
to be restricted. So, new investments on luxury and has lesser money to spend. travel and movement of technicians is to
capital goods is bound to be restricted. As Smart management with timely course be addressed, for which all precautionary
machinery manufacturers, we have seen a corrections can help us manage the measures are being taken at every stage.
positive growth in the last couple of months, situation better, but, as I have mentioned, Moreover, shortage of materials and skilled
despite the extraordinary situation, mainly its only “manage” and nothing more. We manpower has thrown more challenges
due to companies willing to make the best have wasted a lot of opportunities during which needs to be managed effectively.
of the various schemes offered for MSMEs the golden years and hope we have at least We have taken an innovative step towards
by the government. learnt our lessons that having a strong making the whole or part process of
Infrastructure can spur the economy and installation and commissioning done by
the country into the next level. the customer himself, based on semi-
assembled or fully assembled machines
at the sites.
Overall, this situation, though
unprecedented, is sure to bring out the best
in us. Also, we have taken an innovative
step towards making the whole or part
process of installation and commissioning
done by the customer himself based
on semi-assembled or fully assembled
machines sent to sites, detailed pictorial
and graphical representations of step by
step installation procedures, simulative
videos, online support, programming,
remote trial running of the machines, video
and graphical aids for operator training, should be highlighted and help in their salutes our entrepreneurs for surviving
etc. all of which can help the customer utilization in a proper manner. this hostile environment and the hurdles
install the machines fully or at least partly Unnecessary regulations, poor infra- we incessantly face on a day to day
so that the role of our onsite technicians structure, and inadequate government basis. Unnecessary regulations, poor
is minimized, or totally eliminated. This infrastructure, and inadequate government
support kills innovation, which India
was successfully implemented by us for support kills innovation, which India used to
used to be famed for. Thankfully, the
few customers in India and internationally be famed for. Thankfully, we again have
Covid-19 situation has given us the
and will be fine-tuned further considering a golden opportunity due to the Covid-19
opportunity to once again promote
the new normal we are likely to see in the situation; we need to promote local industry
our local industry and develop new
coming days. and technology, impose higher tariffs on
technologies.
cheap imports from countries who covertly
Contractors, OEMs, and financial The supply and timely availability and overtly support their own industry to
institutions need to analyze their of components/parts for equipment create an unfair advantage by denying our
problems and work amicably together manufacturers and equipment, in general, entrepreneurs a chance to even throw the
for the mutual benefit of all the is becoming more and more difficult challenge.
stakeholders. - thanks to our over-dependence on
The immediate priority for the government is
The fact is that a confluence of contractors, imports. Sadly, the Make in India remains
to identify the stressed industries and provide
OEMs, and financial institutions for the just a great idea and nothing else. Cheap
adequate support to them. Also, items which
revival of projects was already there, but imports, especially from China, have
are priced disruptively should be categorized
now the challenge is how each of them killed our industry as most found this an
in the negative list of imports and completely
is able to understand their problems and easy way out. We have to start producing
banned. Any previous agreements can be
work amicably so that it is beneficial to all. ourselves in India to serve our huge market
superseded based on the current situation.
However, the role of financial institutions and to generate employment. We can
Likewise, exports should be encouraged so
is especially important since they have to succeed in this only if the MSME sector
that the industry matures and upgrades to
is well supported and allowed to function
provide the necessary relief of adequate the international level. All this, with a range
smoothly without needless hurdles.
funding as per the proposals, in a timely of timely measures and course corrections
manner. Also, awareness of all the Running a manufacturing industry based on changing situations, is the need of
beneficial schemes especially to MSMEs in India is a challenge and the world the hour.
Neptune Industries
The short-term market condition is not The Government has handled this We are developing new products, which
up to the mark, but if we think long- pandemic situation wisely. The appreciable will be priced aggressively to beat
term, the market would be open with a thing is that the packages announced will competition.
large number of infrastructure projects. help recover the losses from Industrial, The major challenge for us is the people
The Government has announced various Agricultural, Medical, Educational and other who were starting their business with our
relief packages for the development sectors. The `2 lakh crore relief packages machines but have had to stop or put on
of various sectors including industrial will directly or indirectly encourage the hold their plans due to the lockdown. Both
development, the real estate sector, and Infrastructure & Construction industry the medium and large-scale industries have
infrastructure projects. In the next six to resume work on the projects. It is this also put their expansion plans on hold –
months, the construction market could open industry which is the foundation and the and this will affect the related businesses.
up due to the huge potential in infrastructure base for development in any country, state,
However, we are taking this situation in a
development across the country. city, or village.
positive way and are preparing ourselves to
bounce back in the market. In fact, we are
making ourselves ready to penetrate the
market even more aggressively.
Currently, we are analyzing the problem
areas in our earlier orders, strengthening
our customer relationship initiatives.
diverting our team efforts towards new
product development with more energy
efficiency, and recycling of waste heat and
waste produce.
We have seen such a recession five times
in the last 30 years and are taking it in our
stride to gear up for the future.
The Contractors, OEMs and the
Financial Institutions are the tripods of
the construction industry.
The equipment is supplied by the OEMs to
the contractor to complete projects and the
FIs lend money to the buyer/contractor for
purchasing the equipment. So the link This Covid-19 pandemic has created Our machines are robust, sustainable,
between the three is very strong. big opportunities for the country as and technically proven for long-lasting
Now, an equilibrium and transparency Indians are technically sound people, performance, thanks to our technical
between the three is essential and so if we get financial support from the collaborations with European companies.
the need of the hour. The contractor Government, we can definitely become We are a 30-year-old company producing many
has to sincerely pay the EMIs timely; ‘atmanirbhar’ and avoid dependency on types of plants, including ceramic. We design
the FIs should also ease the lending other countries. these plants by keeping sustainability and ease of
conditions with attractive rates as the We are importing 8 - 10% of our machines operation in mind. Our machines are robust, and
Government has been supporting and parts from other countries. If we can technically proven for long-lasting performance.
MSMEs with the corpus of collateral develop all the imported products locally, We have technical collaborations with European
free loans; and the OEMs could also we will create a lot of job opportunities companies through which we can adopt their
come out with some out-of-the-box also, which will impact the GDP of India. technology to find indigenous solutions. This
ideas such as a buy-back policy for way, we are actually selling European quality in
We do not really need to be dependent
their machines. A proper understanding India, and at a much affordable cost.
on other countries. We are importing
with FIs would boost confidence in the engineered goods at a high price. If we Our high capacity Brick, Concrete Block and
market and reduce the NPAs. So, a make them locally, then we will reduce their Paver manufacturing plants can produce
well-maintained balance will boost the price drastically, and we can also explore 10,000 to 2, 00,000 units per day and they have
economy by giving the required thrust complete automation. We have sold more than
the overseas markets for exporting our
to the construction industry. 500 plants pan India. We have also developed
products.
the technology for green sand manufacturing,
We have tied up with NBFC banks to There is increasing awareness of the
lightweight aggregates (LWA/LDA), sand
provide easy loan for equipment buyers environment in our country. People are washing plant, clay brick, CSE block, and dry mix
looking to purchase new machines, beginning to understand the importance of mortar plants. We have recently developed a Dry
or for refurbishment/upgradation of conserving the environment. Campaigns Mix Mortar Plant with a capacity of 2 TPH to 60
their existing machines, along with a like the swachh bharat abhian, and the TPH, and a 10 TPH completely automatic plant,
buyback option. clean India green India are proof of this. which is running successfully at a project site.
W
rise, low cost housing, roads, box culverts, formworks from us and give them on rent. This
e introduced plastic formworks under bridges, retaining walls, railways, stich is a good business model as they could earn
in the Indian market in 2011-12 concrete, smart city drain formwork, and even more by renting out the product than by simply
and we will continue to make for precast dust bins and other precast moulds. selling it.
innovations in this product line. The nature Made of high resistant plastic, the formwork Creating awareness of our products is a
of plastic makes this formwork automatically panels can be used with ease for making challenge as we are the only one in India
safe as there are no sharp edges, plus it is a reinforced concrete column, walls, lift walls, making formworks made of plastic, but major
very lightweight system that makes it easy to shear walls etc. contractors are using them currently in many
handle, easy to assemble and to disassemble.
Our wide range of formwork panels can be residential, commercial, and infrastructure
The product gives great value for money over
used with ease, plus they give a very good projects. The response has been good because
its lifecycle as it is reusable for more than
surface finish; and save a lot of time. These of the versatility of the product, which can be
100 times, in fact, some people have used it
formworks can be used to replace brick walls used in any kind of projects, unlike aluminium,
even 200-250 times. This, however, depends
in construction of buildings, which has become which has limited usages.
on how the product is handled at site. We
very time-consuming and labour-intensive. We are anticipating a lot of construction projects
give a 25% replacement value on our
old formworks as an incentive to our in the next 5 years, as many
customers. infrastructure projects have
come up across the country and
We have also introduced a combination
many are in the pipeline. These
of plastic and aluminium for monolithic
include industrial projects, low
constructions. This system was
cost housing projects, and
formulated in 2009 and is awaiting a
public utility projects. To meet
patent. The aluminium and aluminium-
upcoming demand, we are
plastic formworks are mainly used for
continuously making changes
monolithic construction projects as
and improvements as we move
there are a lot of sizes that we need
ahead. We are developing
to fabricate for making the monolithic
various other products for the
structure. The advantages are that
construction companies; these
clients save a lot of time on delivery,
are designed to help in reducing
which is shorter than for aluminium
labour, improve efficiencies,
formwork. We have even replaced wood
ensure quality, and save cost.
and steel formworks in many sectors.
T
he MOBISCREEN EVO Mobile
Screens are being manufactured
by the Wirtgen Group in India at
its local production and assembly plant in
Pune. The mobile screening plants in the
MOBISCREEN EVO line are successful
all over the world. The machines are
classifying screens, which means that they
classify the rock after it has been crushed
by KLEEMANN crushing plants, sorting
it into up to three aggregate fractions
(MS 702 EVO and MS 952 EVO plants with Top performance in open cast state of Odisha. KLEEMANN technology
two screen decks) or up to four aggregate applications is sustainably boosting productivity and
efficiency at an iron ore extraction site
fractions (the 703 and 953 plants with three The screens make a particularly valuable
operated by its customer Kalinga Commercial
screen decks). contribution in their “home market” as
Corporation Limited (KCCL). “At present, we
Using various screen surfaces, the plants there is hardly another region anywhere
are operating 4 plants for 18-20 hours a day.
are ideal for a wide range of applications, in the world with a more dynamic road
And we are getting high production levels
such as for classifying granite, basalt, construction industry than India. When
from all 4 plants,” says Shri Kumar, Project
iron ore or limestone. Other highlights of constructing roads, it is particularly
Manager at KCCL.
the MOBISCREEN EVO line include a important to have a supply of crushed
aggregate in precisely defined grain sizes. For further details, please contact:
large feed hopper with vibration for pre-
Tel: +91 2117 302600/ +91 20 67682600
screening, an easy-to-operate mobile KLEEMANN plants also perform invaluable
Customer Care No: 1800 267 2600
control panel, and a fully automatic process services in open cast applications. This is
E-Mail: Sales.india@wirtgen-group.com
control system. being demonstrated by 4 MOBISCREEN
Internet: http://www.wirtgen-group.com/
EVO plants of the MS 952 EVO and
india
MS 953 EVO types in Keonjhar in the
Condition Monitoring
Oil Sampling Analysis in Construction & Mining Machines
Bhaskarudu Peddakotla, Consultant – Construc�on and Mining Machinery, suggests that
machine owners should implement condi�on monitoring and thereby become self-reliant in
maintaining their assets and enhancing their opera�onal/produc�ve life.
O
il sampling in machines can be healthy only when the machine Furthermore, through oil sampling, we can
involves testing the oil from is available consistently, which, in turn, improve the operational and maintenance
various compartments such is possible only when we undertake a practices by fine tuning operator skills,
as the engine, transmission, hydraulics, thorough monitoring of the machine, which preventing dust entry inside the components,
differential and final drives, swing devices, includes oil sampling. maintaining oil storage and transfer system
etc. at regular intervals to find out wear Oil sampling for maintaining cleanly, and doing oil and filter changes
metals, contaminants, and physical consistent machine availability as per the schedule. All these actions help
properties. maintain machine’s availability.
Oil sampling in a machine is much like
Oil sampling is necessary to get the the health check-up one takes to help Tests carried on oil during
maximum life from the machine with prevent the onset of any major health sampling
consistent availability and healthy issue. Similarly, lube oil sampling at Oil analysis and tests depend on the various
utilization, so that its overall operating regular intervals will help us know the compartments of the machine such as the
cost will be under control. There is scope condition of major assemblies like engine, Engine, Transmission, Differential, Final
to extend oil change intervals, particularly torque convertor, transmission, hydraulics, Drive, Swing Device, etc. Some of the oil
hydraulic and gear oils, without affecting differential, final drives, steering system, analysis tests are as follows:
the life of the components. etc. In case of any problem, it can be Viscosity: It is necessary to maintain the
Operating cost mainly depends upon addressed right away and thereby prevent required oil film thickness between moving
asset utilization and productivity. Utilization the machine from a major failure. components. It is important that the viscosity
Time for
Construction
Equipment Rental
Satin Sachdeva, Founder
& Secretary General, CERA
(Construction Equipment Rental
Association)
Industry to Reinvent Itself
C
ovid-19 pandemic has hit the market value is likely to fall by ~30% during It can no longer grow strong by taking a
infrastructure industry severely, 2020 due to a fall in the global economic conservative approach. First, it needs to
and consequently, the equipment growth, which, in turn, is resulting in a diversify its businesses and enhance its
rental industry is passing through a slowdown of construction work timelines. competence. Secondly, it needs to market
challenging phase. The work progress is But this is not the time to panic; it is the time itself better in order to promote the financial
sluggish and has not started at many sites to look forward. Challenging times always viability of renting over owning equipment.
since the lockdown. Payments are still lead to transformation and new trends. The global construction equipment rental
stuck. The industry is not only facing an This is also the time for the equipment market is characterized by the presence
acute shortage of skilled manpower but the rental industry to reinvent itself; in fact, of numerous domestic and regional
labour cost has also gone up by around 25 reinventing is a collective responsibility of players, resulting in a highly fragmented
percent. Logistics cost has also increased. all the equipment rental companies. market environment. The five key players,
Interest on loans and EMIs of equipment namely, United Rentals, Ashtead Group,
For the first time, the rental industry is
rental companies has not been waived Herc Rentals, H&E Equipment Services,
becoming united in protecting its interests
off yet by the government. Therefore, the Loxaman, and Kanamoto Co, account for
due to the rapidly changing social
overall operating cost of a rental company 18% of the market share, and the remaining
and economic milieu. The equipment
has significantly increased. 82% share is held by other players
rental industry cannot run on ‘reactive
If one sees the world trends over the past mechanism’; rather, we should foresee (domestic and regional players).
one year, the rental industry was already industry trends, start seizing opportunities, If we see the global trend over the past two
passing through a rough patch; Covid-19 and push for changes which would benefit years, the construction equipment rental
has just made it worse. According to market us in the long run. market is being driven by mergers and
reports, the construction equipment rental
acquisitions and joint ventures between New technology means lesser breakdowns, of the operating capital of the company.
companies who want to diversify, build faster work, and timely completion of Overhead costs such as interest on loans,
capacity, and sustain their businesses projects. It will help in specialization insurance, licensing, storage, and taxes,
in the event of a slowdown. Construction and pave the way for the construction post the purchase of the equipment, add to
equipment rental companies in India should equipment rental industry to diversify into the overall cost of the equipment.
also focus on strategic collaborations and unconventional sectors like municipal Equipment owners are also accountable
partnerships, mergers and acquisitions works, mining, concrete segments, etc. for transportation between job sites. On
to increase rental penetration and market It will also create the need for skilled the other hand, if a contracting company
share. It should be noted that equipment operators and machine crew to handle the rents an equipment, the responsibility of
rental companies that offer better value new equipment. transporting the equipment to the work site
and user experience to customers will Equipment rental companies should lies with the rental company – which also
emerge winners in the post Covid-19 promote the rental concept more bears the direct overhead cost. What’s
scenario. Therefore, the focus of rental proactively by participating in tradeshows more, rental companies also keep on
companies should be on strengthening like EXCON, bauma CONEXPO, upgrading their fleet and their equipment’s
their capabilities while understanding the machine parts from time to time, in order to
INTERMAT, IFAT and Concrete Show
market dynamics. provide their customers with upgraded and
India etc, as these events offer the right
advanced equipment.
Changes and advancements in platform for companies to network and
construction technology around the world showcase their products, performance, As per market reports (which have been
has led to demand for newer technologies and capabilities. Participation in trade revised due to the Covid-19 situation), the
in construction equipment. The Indian events and exhibitions will also boost the construction equipment rental market in
equipment rental industry should image of the equipment rental industry. India and in the ASEAN region is expected
enhance its capacity accordingly, as new to see growth during the forecast period
There is a need for conscious deliberations
technologies, especially telematics and 2020 – 2025. The global construction
on buying versus renting equipment. In
equipment rental market is expected to
artificial intelligence, are going to transform such a scenario, rental companies should
register a CAGR of about 4.78% during the
the equipment industry, and maintaining impress upon the users the benefits of
forecast period.
a fleet of such technologically advanced renting equipment and how it will increase
equipment will become necessary. It is the most opportune time now for the
their profitability. Procurement of new
Artificial Intelligence will make tracking and equipment rental companies of India to
construction equipment is quite capital-
monitoring of equipment quite easy and reinvent themselves and be well prepared
intensive: it often requires making down
reduce the cost of operations. for a brighter future when demand is bound
payments and investing a large portion
to escalate to new heights.
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2015Company
Elevatoring
T
he global elevators and escalators protect themselves from wild animals or today, elevators carry an equivalent of the
industry is expected to reach other environmental threats. Exponential earth’s population every three days!
125-billion U.S. dollars by 2021; progress has been made since then, and The first written record of elevators dates
driven by innovation and the vertical to the 3rd century BC, in Greece.
growth of cities. Historically, elevators World’s First Elevator The earliest elevators were called
have had significant influence on the 3rd Century BC ‘hoists’ and were powered by
development and advancement of human and animal power, or water-
architecture - especially tall, vertical driven mechanisms. In 236 BC,
structures. As buildings get taller, the Greek mathematician and
so must elevators’ ability to meet engineer Archimedes invented
demand; and as elevators meet that the first elevator based on ropes,
demand, structural innovation can weights and wrenches. In fact, this
blossom. invention and the principles that
A brief history of elevators powered it formed the foundation
The history of elevators spans over for all elevators in the next 2,000
five thousand years. The need for years! The Roman Colosseum too
solutions for vertical transportation was built with an integrated network
was probably first felt when human of 24 elevator cages that carried
Elevators Eiffel Tower’s old gladiators and wild animals to the
beings began settling at altitudes to
arena floor; these elevators were manually cage elevator at Kolkata’s Raj Bhavan. more affordable and readily available, it
powered by over 200 salves. • The most popular theory about the became common practice to create foyers
The 1800s witnessed a notable phase of origins of music on elevators states worthy of elevators. As evident in almost
advancement in modern elevator technology, that elevator music first appeared in any non-mass-built hotel, an elevator
when steam-driven elevators made way the 1920s to calm fearful passengers entrance is often accompanied by grandiose
for hydraulic power. Even then, the first who used elevators for the first time. Yet decoration such as a chandelier. Moreover,
hydraulic elevators were designed using another theory propounds that elevator when buildings were without elevators, the
water pressure as a source of power. These music was a distraction to fend off top floor was considered for the poor or
elevators were used for conveying materials boredom and keep people’s minds off for servants, as it was more inconvenient
in factories, warehouses and mines. the interminably long time it took (back to reach. As lifts improved access to the
Thereafter, motor technology and control then) to get from floor to floor. higher floors of ever-taller buildings, the
methods evolved rapidly; and electricity concept of a penthouse and the associated
The safety and speed of elevators was
became the norm as a source of power. connotations of wealth followed.
thus significantly enhanced as far back as
A few ‘elevatoring’ firsts the mid-19th century. And with the safety Types of elevators today
• In 1852, entrepreneur and inventor Elisha of lifts established, designing and building Modern commercial buildings commonly
Graves Otis introduced the first safety larger and taller structures became an have multiple elevators with a unified control
contrivance for elevators. At the 1853 increasingly stronger reality. In fact, as system. In addition, all modern elevators
World’s Fair, in New York, Elisha Otis passenger and commercial lifts became have special override controls to enable
made his original “elevator pitch”. This
included a death-defying drop in which he
“dramatically cut the only rope suspending
the platform on which he was standing,”
according to Otis Elevator Company lore.
The platform dropped a few inches, but
then came to a stop. His revolutionary new
safety brake had worked, stopping the
platform from crashing. The display raised
eyebrows, but elevators were adopted
enthusiastically. Otis established a
company for manufacturing elevators and
went on to dominate the elevator industry.
Today, the Otis Elevator Factory is the
world’s largest manufacturer of vertical
transport systems.
• In 1857, the first steam-powered
passenger elevator was installed in the
new E. V. Haughwout Building in New
York City.
• The first electric elevator was built by the
German inventor Wener Von Siemens in
1880.
• In 1887, an electric elevator with automatic
doors that would close off the elevator
shaft was patented. This invention made
elevators safer.
• In 1889, the first commercially successful
electric elevator was installed. That same
year, Otis made the then-tallest man-made
structure in the world - the Eiffel Tower -
accessible by lift!
• Otis Elevator Company installed its first
elevator in India in 1892 - the iconic bird- Luminare - Gurugram
elevators to go directly to a specific floor passengers from the building lobby to manufacturing operations, while looking
without intermediate stops. Elevator the top floor/sky lobby. at growth opportunities in Tier 2 and Tier
components include speed controlling e) Dumbwaiter – These are small elevators 3 markets, in addition to big Indian cities.
systems, electric motors, rails, cabins, used to transport food and other kitchen Schindler, for example, is setting up an
shafts, doors (manual and automatic), materials between several building R&D and manufacturing facility in India and
drive units, buffers and safety devices, levels. They are often used in hotels, is looking at increasing its localisation (two-
among others. restaurants and cruise ships. thirds of its supplies are from India-based
Passenger elevators – These are
a) companies). Demand for elevators and
f) Paternoster – These are a special
designed to carry people between escalators in India is growing at a healthy
kind of elevators that use the principle
building floors. Their capacity is rate every year; and rising demand can
of revolving cabins. Several traveling
determined by the need of the specific drive sophisticated technologies and speed
cabins that are in constant motion are
building and can vary between 5 and 25 in the segment.
set on one rotating chain.
persons. The technology thrust
g)
Belt elevators – These are used to
b) Double Decker elevators - The TWIN transport material over inclined planes. The futuristic MAGLEV: From a futuristic
elevator system has two cars, arranged The conveyor belt is equipped with a lot technology perspective, magnetic levitation
on top of each other, that operate of transport boxes that transport material technology (MAGLEV) has already found
together in one hoistway. These from one place to another. applications in the global elevator industry.
elevators have a smaller footprint, This technology eliminates the need for steel
The elevator industry in India
resulting in more leasable space. ropes. The elevator uses a ‘maglev’ track in
Per recent reports by independent the building, which is embedded with coils to
c) Twin Elevators – The Twin elevators
analysts, India is the world’s second- guide the cabins through a moving magnetic
also have two cars in one shaft. But
largest market for elevators and escalators, field. The system also allows more than two
unlike the Double Decker, they move
after China. Until some years back, cabins per shaft as each cabin can operate
independently in the same shaft,
elevators and escalators in India were independently from the other, thus reducing
which makes logistics more efficient.
more about luxury, but now they are more waiting time for passengers and increasing
Their movement is synchronized
of a necessity. Elevators used in India are capacity up to 50%. The use of Maglev
by a specialized program and its
mostly imported from the US or Europe. technology also eradicates height or design
microprocessors which prevent any
India is also currently one of the biggest limitations that previous elevators had as
collisions. At present, this technology is
markets worldwide for many elevator these elevator shafts can be placed more
available only with Thyssenkrupp.
manufacturers, driven to a significant freely around buildings and operate similarly
d) Express elevators - These do not service extent by our Government’s focus on to a metro. They are also 25% smaller than
all floors, but only selected parts of infrastructure and real estate development. traditional ones, which enables considerable
the building. Most notably, they move KONE Elevator India is consolidating its savings in floor space.
T
o say that the pandemic has thrown Escalators. Elevator Remote Call Feature process developed by NASA for air control
life out of gear for all of us would using WhatsApp is a response to this. It on spaceships - to improve air quality in
be an understatement. Indeed, allows users to summon an elevator using the elevator car by destroying most of the
Covid-19 has forced us to rethink the way social messaging channels like WhatsApp, potential pollutants like bacteria, viruses,
we should live. Public spaces are stressful removing the need to touch possibly dust and odor.
in a coronavirus-stricken environment, contaminated buttons or displays. KONE Handrail Sanitizer
and the way people interact with everyday Floor Stickers & Full Load KONE Handrail Sanitizer is an escalator
surroundings is set to change. It becomes adjustment handrail cleaning solution that uses a type
imperative that buildings and cities are
KONE is using physical distancing elevator of ultraviolet light (UV-C) to continuously
made safer and healthier places to live,
floor stickers and elevator full load limit clean the handrail when the escalator is
work and commute.
adjustment to ensure less crowding, in use. The solution is installed inside the
As a pioneer in people flow, and with a thereby contributing to a healthier escalator, so users are not exposed to it.
holistic approach to health, well-being environment. The handrail emerges much cleaner and
and safety, KONE has introduced a range ready to support passengers when they
KONE Elevator Air Purifier
of Health and Well-being Solutions that hold the escalator handrail.
will help recreate safer user journeys and To further reduce concerns over elevator
use, KONE is introducing to selected
KONE 24/7 Connected Services
healthy spaces in buildings. The solutions
markets the new KONE Elevator Air As we all learn to live by the new norms of
are built on KONE’s deep expertise
Purifier. It uses technology – including an our cities, neighborhoods and buildings,
and knowledge of people flow, which is
advanced photocatalytic oxidation (PCO) it’s likely that we will continue to insist on
vital when addressing the challenges of
smooth people flow once we do get going
adapting to a new way of life in the face of
again. The transparency and preventive
the current pandemic.
From Escalator Handrail maintenance offered by the cloud based
Elevator Remote Call Feature KONE 24/7 Connected Services can help
Sanitizer, Elevator Remote
Using WhatsApp here and keep equipment running and safe.
Call using WhatsApp to
This feature reduces the need to touch In these unprecedented times when
Elevator AirPurifier, innovative
surfaces. As people started returning to hygiene and physical distancing are vitally
solutions that support well-
work, another real concern related to shared important, KONE’s health and well-being
being will help people
spaces became extremely clear: people solutions will help regain our confidence in
are unwilling to touch common surfaces
transition to a new normal.
everyday environments, in cities, and with
like buttons or handrails in Elevators and the buildings we move through.
t
hyssenkrupp Elevator is empowering 20 impetus to the demand for elevators, and the Udaipur Airport have relied on
airports across India with its innovative escalators, moving walks, and PBBs in the thyssenkrupp Elevator’s proven innovative
and reliable products and services. coming years.” aviation mobility solutions and services.
The company has recently won two major He informs that some of the key airports like The Pune airport is being revamped and
airport projects: the Pune International the Indira Gandhi International Airport in expanded to handle the growth and improve
Airport Expansion Project, and LGBI - Delhi (also the 12th busiest in the world and handling capacity. The 42,000 sqm new
Guwahati Airport Project. the 6th busiest in Asia by passenger traffic) terminal building will be integrated with the
have been powered by the company‘s 71 existing one and will sport thyssenkrupp
Elevators, 34 Escalators, 92 Moving Walks, Elevator’s 15 Elevators and 8 Escalators.
and 57 Passenger Boarding Bridges. Guwahati’s LGBI Airport’s upcoming
The Kempegowda Airport in Bengaluru terminal will be powered by 25 Elevators, 10
(the 3rd busiest airport by passenger Escalators, and 2 Moving Walks. The new
traffic in the country) is equipped with the terminal will spread across 77,500 sqm and
company’s Mobility Solutions that include will be equipped to handle 2,900 domestic
45 Elevators, 33 Escalators, 6 Moving and 200 international passengers at a time.
Walks, and 6 Passenger Boarding Bridges. Furthermore, Delhi’s International Airpot
Likewise, the Cochin International Airport, will be equipped with 90 of thyssenkrupp’s
the first solar powered Airport in the country A-VDGS (Advanced Visual Docking
with a capacity of 50 million passengers per Guidance System), while the Hyderabad
Says Manish Mehan, CEO, thyssenkrupp annum, has 18 Elevators, 6 Escalators, and Airport will have 33 of the A-VDGS. The Delhi
Elevator (India), “thyssenkrupp Elevator 3 Moving Walks of thyssenkrupp. Airport Project will have an additional fleet of
is playing a significant role in the success Other airports like the Pune International 22 PBBs from thyssenkrupp.
story of the Indian aviation sector. Looking Airport, Jaipur International Airport, “Our engineering expertise enables our
ahead, the government’s plan to develop Ahmedabad International Airport, customers across India to gain an edge,
200 low-cost airports in Tier-II and Tier-III Chandigarh Airport, Bhopal Airport, Raipur while our technologies and innovations
towns across India will provide a further Airport, Lucknow Airport, Varanasi Airport, are designed to meet the diverse customer
and market requirements, most ably,” says
Mehan.
India has become the third largest domestic
aviation market in the world and is expected
to overtake UK to become the third largest
air passenger market by 2024. The country’s
civil aviation industry has emerged as one of
the fastest growing industries during the last
three years. India’s passenger traffic stood at
199.60 million in FY20 (April-October 2019).
To cater to the rising air traffic, the Government
of India has envisaged increasing the number
of operational airports to 190-200 by FY40
from the current 103 airports.
D
epartment of Civil Engineering, Vignana Bharathi Institute
of Technology (Autonomous) in association with Telangana
Association for Skill and Knowledge (TASK), Indian
Concrete Institute-Hyderabad and Bangalore Centres conducted
a one-week Faculty Development Program on “Performance of
Engineering Structures Under Extreme Loading” from 8 - 13 June,
2020. The FDP was also partnered by Bentley Institute, Capricot,
and NBM&CW as media partner.
The inaugural function was organized at a grand level involving
the management of VBIT and all the supporting partners including
Dr. Goutham Rao, Chairman, VBIT, Dr. Manohar Reddy, Secre-
tary, VBIT, Dr. G. Amarendar Rao, Principal, VBIT, Dr. S. Krishna
Rao, HOD, Civil Dept., VBIT, Mr. Shrikant Sinha, CEO, Telangana
Association for Skill and Knowledge (TASK), Mr, P. Srinivasa
Reddy, Chairman, Indian Concrete Institute-Hyderabad Centre, Dr.
L. R. Manjunatha, Chairman, Indian Concrete Institute-Bangalore
Centre, Er. P. Suryaprakash, Founder and Managing Trustee,
SVPCPL, Smart Infr-Est, Mr. Arun Kumar, Country Manager,
BENTLEY Institute, and Mr. Om Prakash, Country Manager-
Education, Capricot.
In total, 13 sessions were held during the FDP; they covered various
topics like performance of structures and structural elements under
blast, earthquake, wind impact and fire loading; Fracture Mechanics
& Concepts and application to concrete structures; uncertainties in
Structures Under Extreme Loading Using Finite Element Method;
practical aspects of high-rise structural systems; Soil-Structure
Interaction, etc.
BMRCL launches
tunneling at Shivajinagar
& Vellara junctions
Launching work on Phase II of BMRCL’s
extension, underground metro line, the
Bangalore Metro Rail Corporation Limited
(BMRCL) has deployed four tunnel boring
machines for the purpose. The two tunnels
start from Cantonment station to Shivajinagar
and the other two from Shivajinagar to Vellara
Junction in the city, said Managing Director,
BMRCL, Ajay Seth.
Airport
Karnataka kick-starts GMR inks greenfield Bhogapuram airport pact
`220-cr airport project GMR Infrastructure has signed an agreement with the Andhra Pradesh government to develop
The CM of Karnataka laid the foundation a greenfield airport at Bhogapuram, near the port city of Visakhapatnam. GMR won the bid
stone for the construction of an airport by offering to pay `303 per
at Shivamogga area of his constituency. passenger fee, while GVK
The airport will be well equipped had offered `202. Reliance
Airport Developers, Essel
with matching facilities at Sogane in
Infraprojects, Fairfast
Shivamogga taluka at a cost of `220
India Holdings, and
crore, and will be built on an area of
National Investment and
662.38 acres. The project will be taken
Infrastructure Fund had also
up in two phases and is slated to be
participated in the bidding.
commissioned in a year's time.
Industry News
Amid Covid-19: Dr. Fixit’s supports contractors in ELGi unveils LD Series:
pre-monsoon waterproofing a revolution in Piston Air
With monsoons approaching, it is expected that 6-8 % of buildings and structures may need critical pre- Compressor Technology
monsoon repairs. The waterproofing contractors play a crucial role in ensuring the structural integrity of Elgi Equipments, one of the world’s leading
buildings and depend upon the pre-monsoon work for a big part of their earnings. However, consumers air compressor manufacturers, has launched
facing heightened health and safety concerns, may be wary of workers entering their homes. To address the ‘LD Series’ range of lubricated direct
these concerns, Dr Fixit has launched a full-fledged training & certification program for contractors on drive reciprocating air compressors. With
how they can ensure their own safety and that of their workers, and consumers at the site of their a low life cycle cost and quick return on
work. The program has been rolled out across 10 cities - Mumbai, Delhi, Pune, Hyderabad, Bengaluru, investment, every LD series air compressor
Indore, Ahmedabad, Surat, Kolkata and Nagpur. The program imparts training and information about all is backed by best-in-class performance
precautions as per the guidelines of MHA and WHO. At the end the course, participants take a detailed for the given input power, durable parts,
exam, with successful participants being duly certified. and a minimum number of service points.
Commented Rajesh Premchandran, Director,
Sandeep Mahajan is new MD of Goodyear India ISAAME (India, South Asia, Africa and Middle
Goodyear, one of the world’s largest tyre companies, announced the appointment of Sandeep Mahajan East), “Customers in India are challenged
as Managing Director of India operations with effect from June 1, 2020 for a period of 5 years. He with increasing electricity costs, limited
succeeds Rajeev Anand, who is superannuating from the company after completing more than 38 years industrial floor space and fluctuating market
of service and will continue as the Chairman of the Board for India operations with effect from June 01, demand. Taking this into consideration,
2020 till December 31, 2020. we have designed the LD series range of
Mahajan has successfully led Farm, Commercial, OTR and Consumer businesses within Goodyear direct drive reciprocating air compressors.
over the last 8 years. With over 29 years of experience in working with well-known multinational Unlike conventional belt driven piston air
companies, he brings extensive P&L as well as sales and marketing experience, both in India and key compressors, the LD Series is compact,
global markets. He holds a bachelor’s degree in engineering (Mechanical), and a post graduate diploma ensures high performance, has low decibel
in management from IIM Bangalore.
operation and ease of maintenance.”