F+liltllli*f): Inousrnv SPenxs

66It would be better if theproject planners focusmore on quality of the

raw materials being usedfor the project rather

that selecting sPecific'make'. lt will help project

competitiveness andmeeting deadlines.

- .layanta Chakrabortv'5enior GM - SCM,

Phenix ConstructionTechnologies

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ll[28PuRcHrst ll oclober 2014

Focus on quality ratherthan'make'With a state-of-the-art manufacturing

facility at Sanand in Gujarat, equipped

with a production capacity of 72,000 MT

per annum, Phenix operates with the

unmitigated zeal to redefine and give

a new dimension to the constructlon

and infrastructure sector. lt leverages

the core competencies of the M&B

Group in the infrastructure development

business and draw upon the,expertlseand technological prowess of its various

international knowledge partners.

Phenix Construction TechnoQgies,

a division of M&B Enqineering Ltd. and

part of the M&B Group, is a future-

ready steel construction solutions

provider that specialises in the design,

manufacturing and installation of Iight

to heavy and complex steel structures

. and PEBs. Mr Chakraborty senses huge

opportunities through proposed projects

by government.

Smart oPPortunitieslndian Government Plans to build

100 smart cities. This is really a great

opportunity for construction industry

and has been part of PM Narendra lvlodi'sracchi din'vision.

The aim is to build satellite towns

near existing urban areas on the smart

city template, upgrade existing mid-sized

cities, and to build settlements along

industrial corridors. This is the foundation

of speculating / imagining. what type

of projects are cominq up. According to

Mr Chakraborty, for such infrastructure

projec! a model city of Shanghai fits the

definition ofa smart city. The following are

the probable upcomings for PEB industry

in particular:. Multistory buildings (typical multi story

buildings which is yet to catch in India

and has tremendous potential in PEB

segment). Bridge girder segment (for making

flyovers and road / rail over bridges). Metro railways (metro stations - good

potential for PEB seqment). Airports. Small and medium sized industries -

which will grow as a satellite to these

(ities (making building factory sheds)

. Warehousinq sectcir (buying

conventional warehouses)

Don't expect overnight changeCurrent trend of procurement of such kind

of project will not be changed dramatically

on this new concept. Although the project

is announced and budget is allocated, the

concept is still on the drawing board'

"lt is obvious that such kind of projects

needs perfect vision to make is happen

and successful. Hence it is expected

that conceptualisation will take a long

timei' says Mr Chakraborty. "However,

our Central Government may take a very

smart and quick decision. engaging right

kind of people, experts, consultants to act

first and bring the project out of drawing

board:

Hurdles in the waylf the implementation takes very fast,

there will be a sudden and high demand

in the market in PEB segment too.This may

happen particularly in high-rise buildings

segment, where PEB segment in lndia is a

toddler. Big cities on global platform have

multi-story buildings where the structure

is made out ofstructural steels (not cement

and mortar concept). This seqment needs

special thin walled hollow sections, which

has very low potential in lndia at the

moment. Hence the industry needs to

be geared up.

The second challenge is thebuilding technology Part which is

hardly existing in lndia. The thirdchallenge is regarding lifestyle issue

- the structural members are all mild

steel product susceptible to rusting.

This is going to be major challenge.

Quality mattersSteel flat product and long productis passing through a demand plateau

phase. Price is also going on in the

same space. There is hardlY anY

chance that the Price will 90 down

further. Project consultants can play

a major role in curbing the situation.It is suggested that theY enhance

the approved vendor list, enablingproject executors to widen theirsourcing channel and procule ri9htquality and on time. This will helP

Indian sME's, who are making longproduct in particu lar.

h'rousrnY Spuxs

"lt would be better if the Projectplanners focus more on quality of the

raw materials being used for the project

rather that selecting specific 'make:

It will help project competitiveness

and meeting deadlinesi says Mr

chakraborty.

For customersCustomers must evaluate the PEB

manufacturers in terms of theirproduction capacity, required plant and

machinery availability

Also financial soundness of themanufacturer, quality requirements

and track record of Past Projectsexecuted by them must be considered

by customers.

Best suit planMethodology of procurement is project

specific and the strateqy is adopted'best suit'for the project. The two maior

challenges project procurement team

faces are:

. Stock out: affecting produttion loss

and stretching deadline. Over stocking: attributing to fund

flow and liquidity.

"The best suit plan to face such

challenges is to make planning at themicro level, long-term contract w,th

the suppliers and making suppliers

warehouse as your stock Yard," saYs

Mr Chakraborty. "The fund Planninqshould also be Perfect and client

should maintain payment timelines as

per deadlines, otherwise liquidity will

be an issue with the project executorsl'

There should be a detail budgetprepared for the project, splitting itinto major components and evaluate

the procurement performance based

on the budget plan.lt will be a financial

health check up for the Project and

cost over run can be identified at the

beginning of the project and necessary

controlling measure can be adopted to

curb such cost over-run. I

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Enhance Productivitv and Performance

Industrial Adhesives and Tapes Division3l\4 India Lirnited

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