August 11-17, 2014 1

Volume 3 l Issue No 32 l August 11 - 17, 2014 l Price: Rs 100An MMR, Braj Binani Group Publication

The Reserve Bank of India (RBI) in its third bi-monthly monetary policy statement for 2014-15 kept the repo rate unchanged at 8 per cent. The reverse repo rate was kept unchanged at 7 per cent and Cash Reserve Ratio (CRR) was maintained at 4 per cent. The SLR was cut by 50 bps to 22 per cent.

“The RBI won’t hold rates any longer than necessary. We will have room to cut rates if disinflation continues,” said RBI Governor Raghuram Rajan.

The apex bank said that the portfolio flows to emerging market economies (EMEs) have risen strongly. “The

global economic activity has been picking up at a modest space from a sharp slowdown in Q1. Investor risk appetite has buoyed financial markets, partly drawing strength from assurances of continuing monetary policy support in industrial countries,” the bank says. “The implementation of government policy actions that have been announced should create a congenial setting for a steady improvement in domestic demand and supply conditions,” the bank feels.

“The central bank is keen on freeing up more money for lending and injecting liquidity into the system,

and is thus a positive for real estate development companies. Moreover, it has guided for an inflation target of 8 per cent by January 2015.

“In the absence of a clear direction of interest rate tapering, we expect that developers will be cautious in the upcoming festive season. We reiterate that this might be hence, a good time for consumers to bargain for sweet deals. In our assessment, once interest rates come off its current levels, fresh demand will be generated for housing sales, leading companies to step up launches,” says Sanjay Dutt, Executive Managing Director,

RBI makes provision for long-term infra refinancing loans

Cushman & Wakefield, South Asia.The RBI said that it will continue

to monitor inflation developments closely, and remain committed to the disinflationary path of taking CPI inflation to 8 per cent by January 2015 and 6 per cent by January 2016.

From April 2015, banks will have to make a provision of at least 15 per cent on the loans that are restructured against 3.5 per cent now. The Reserve Bank has relaxed norms for refinancing of infrastructure loans which banks want to be tagged as standard assets. From April 2015, the moment a loan is restructured, banks will have to classify them as bad loan.

The RBI had made an exception to the rule by allowing banks to classify infrastructure loans as standard assets if half of the outstanding loans are refinanced by a new set of lenders in the form of take-out financing.

The central bank later relaxed this norm by allowing standard tag if 25 per cent of the outstanding is met through take-out financing. Also, an infrastructure loan that is refinanced can be tagged as standard asset provided promoters are willing to invest more equity in the project.

The RBI has said a project would not be classified as restructured provided it has started commercial operation after achieving date of commencement of commercial operation (DCCO).

Last month, RBI gave more flexibility to banks in structuring infrastructure loans since a majority of the loans were disbursed for a shorter tenure even as it is known that companies take a long time to execute infrastructure projects.

In line with the recent initiatives of the government as well as the RBI to push for growth in infrastructure and real estate – specifically affordable housing -- the additional funds allocated in the hands of commercial banks through a SLR cut is positive for both these sectors.

The investment cycle is picking up, as is evidenced by the recent Index of Industrial Production (IIP) and Purchasing Managers’ Index (PMI) numbers. Therefore, banks’ willingness to lend the excess liquidity generated to these priority sectors is likely to be high. As far as interest rates are concerned, the real estate sector will have to wait a little longer for a rate cut.

Reits, infra investment trusts to get Sebi push

Modi to flag off 3 new metro projects

Land acquisition, lack of funds roadblocks

to PPP projects

The Securities and Exchange Board of India (Sebi) is set to approve guidelines for the Real Estate Investment Trust (Reits) and the Infrastructure Investment Trusts ( InvITs). The Modi government had announced plans for such trusts in the July 10 Budget presented by Finance Minister Arun Jaitley.

The trusts will allow companies engaged in infrastructure and real

The Cent re sa id tha t poor performance of the highways sector in the past two years is due to factors relating to tolling issues, lack of equity with developers and delays in the land acquisition process.

Identified bottlenecks in execution of projects faced by the NHAI under the PPP mode include delays in land acquisition and green nods, lack of equity with developers and reduced traffic growth, among others, noted Road Transport & Highways Minister Nitin Gadkari.

He also said that currently the National Highways Authority of India (NHAI) is executing 158 projects

estate to raise long term resources at competitive rates. The trust structure is aimed at creating a framework of fast-track, investment-friendly and predictable public private partnerships (PPPs) to build large-scale projects that are of vital importance for India. To raise long-term capital, the new guidelines will incentivize the creation of such trusts so that investors have a lower tax burden, apart from avoiding

under the public private partnership (PPP) mode which are under various stages of development.

Already, 72 national highway projects are delayed mainly due to land acquisition problems. Of these, 12 projects are stuck in Assam, 11 in Tamil Nadu and 9 in Bihar. Five projects each are stuck in Uttar Pradesh, Uttarakhand, Rajasthan and Maharashtra. Gadkari had said that as many as 189 projects worth Rs 180,000 crore were stuck due to problems in land acquisition, delays in forest and environment clearances, etc.

multiple taxation at different levels.“The proposed move will help

in unlocking funds from completed projects in infrastructure and real estate. The promoters of such projects, particularly the completed ones, would be able to sell their stake to the trust, which, in turn, can raise long-term, tax-free funds from unit holders,” said an investment banker.

Prime Minister Narendra Modi is set to give green signal to three crucial Metro projects this month at one go. States set to get their Metro projects include poll-bound Maharashtra, PM’s home state Gujarat and Uttar Pradesh where BJP bagged 71 out of 80 seats in the recent Lok Sabha polls.

Modi is expected to announce the NDA government’s decision to launch metros in Nagpur, Ahmedabad and Lucknow on August 21, 2014. The Finance Ministry is set to clear the three projects next week after which

the Urban Development Ministry will go to the cabinet.

“The three metro projects will come up for cabinet approval in the next fortnight. The cabinet will decide the funding model and its approval would pave the way for formal commencement of work on these three projects,” said a finance ministry official. The estimated cost of the 39 km-long Nagpur Metro project is Rs 8,500 crore. The project that is being expedited with an eye on the assembly polls in the state later this year would

be implemented through a Special Purpose Vehicle (SPV) and would be funded jointly by the Centre and the Maharashtra government.

The first phase of the Ahmedabad-Gandhinagar Metro link will cover a stretch of 36 km and is estimated to cost about Rs 10,000 crore while the 22 km-long Lucknow Metro is estimated to cost Rs 4,500 crore. Finance Minister Arun Jaitley in the 2014-15 budget has also allocated Rs 100 crore each for the metro project in Ahmedabad and Lucknow.

August 11-17, 2014 2

Ashish R Puravankara, Joint Managing Director, Puravankara Projects

domestic

Puravankara records a 26 pc revenue increase in Q1

Puravankara Projects Ltd, one of the leading real estate developer in India, recorded consolidated profit before tax at Rs 83 crores, an increase of 106 per cent in the first quarter of the current financial year.

The company recorded a 28 per cent rise in its consolidated revenue, posting Rs 474 crores in the quarter ended June 30, 2014 as against Rs 369 crores in the first quarter of last fiscal. The consolidated net profit after tax stood at Rs 58 crore during the first quarter ended June 30, 2014.

Commenting on the strong results,

Realty firm Godrej Properties is planning to launch 15-16 residential projects in the current fiscal.

“We are upbeat about revival of the sector. Because of the slowdown in last few years, some of our project launches which were delayed we plan to launch them this fiscal,” company’s Managing Director and CEO Pirojsha Godrej told.

The company may launch 15-16 residential projects this fiscal, he said.

“While some will be the next phases of the current projects, some will be new launches. We may launch new projects in markets like Bangalore, NCR and Pune, while the next phases launch will be in Kolkata, Nagpur and Mumbai,” he said.

“The new launches w i l l be developed on joint development model,” he said.

The company added one new project in Gurgaon with 1.6 million sq ft of saleable area. The company had reported a net profit of Rs 39.47 crore in the April-June quarter of FY’14.

For Q1 FY15, GPL’s total revenues increased 48.57 per cent to Rs 362.93 crore from Rs 244.28 crore in the

Ashish R Puravankara, Joint Managing Director, Puravankara Projects, said, “Taking into consideration the current macro-economic conditions, our performance has been good and we will continue this momentum in the coming quarters. With the new Government at the centre, sentiments have been upbeat and the policy initiatives including the push for affordable housing will be a key driver in the growth. Being the front-runners in the premium affordable housing segment, we will be entering new markets starting with Mumbai and Pune for this financial year.”

corresponding period last fiscal.Pirojsha further said due to

improvement in the overall sentiment in the real estate sector, it is getting good response for its new project launches.

“We look forward to sustaining the momentum in the year ahead,” he said, adding, “We also expect realisations to improve in the medium term.”

The company recorded 141 per cent growth in volume and 260 per cent growth in value of residential sales, a company release said.

DSK Developers launches Rs 200 cr public issue of debentures

Surge in capital market have prompted many real estate companies to explore the capital market and DS Kulkarni Developers is one among the first movers to issue secured redeemable non-convertible debentures (NCDs). This comes at face value of Rs 5000 each for option I, II and IV and Rs 25000 each for option III aggregating upto Rs 100 crore (with an option to retain oversubscription of an equal amount) aggregating up to Rs 200 crore (overall issue size). The issue which opened on August 4th will

close on August 26th or earlier. The effective yield would range from 13.1 per cent per annum to 13.52 per cent per anum and the NCDs would be listed on the BSE.

Announcing the launch of NCDs in Chennai, Shirish Kulkarni, Executive Director, DS Kulkarni Developers Ltd, said that the company propose to use the proceeds of the issue mainly to finance the first phase of the upcoming mega city DSK Dream City, Pune consisting of 1044 residential units at a cost of Rs 850 crore which

Monu Ratra new CEO for India Infoline Housing Finance

Bharti Realty appoints S K Sayal as MD & CEO

JNPT may launch `1,000-cr port-Sez in Aug

Griha Pravesh to launch 7 luxury towers in Noida I I F L h a s a n n o u n c e d t h e appointment of Monu Ratra as CEO of India Infoline Housing Finance Limited (IIHFL), which is the housing finance subsidiary of IIFL Holdings Limited, one of the largest diversified financial services companies in India.

As CEO, Monu Ratra will be the prime driver for growing IIFL’s books on the affordable housing product line, says the company’s statement.

He is an alumnus of Lal Bahadur Shastri Institute of Management, New Delhi, and a graduate of Architecture. Monu Ratra has been associated with the financial services sector for more than fifteen years, largely in the home loans segment. For the past

Griha Pravesh Buildteck, which is developing a luxury housing project in Noida, will have seven towers, 18- storey each, and 501 units. It will comprise 2-, 3- and 4-BHK ultra-luxury homes, garden apartments and penthouses. The project is spread over five acres of lush green landscape

Abhay Kumar, Chairman & MD, Griha Pravesh Buildteck, said, “Our new project coming up in Sector 77, Noida, will have state-of-the-art facilities. It will have rainwater harvesting systems, a water softening plant and a water recycling unit. Solar

Bharti Enterprises firm Bharti Realty today appointed S K Sayal as Managing Director and CEO. He will be responsible for conceptualising and implement ing a sca lab le

Jawaharlal Nehru Port Trust (JNPT), one of the busiest container gateway near Mumbai, will launch its port-based special economic zone (Sez) project by the third week of this month with an investment of Rs 1,000 crore, a top port official said. “This port-based Sezwould be developed over an area of 277 hectares. We have secured all necessary approvals,

eight years, he was associated with Indiabulls Housing Finance Limited, most recently as National Business Manager – Mortgages. He has also held large responsibilities in the ICICI Group including setting up the wealth management practice in Japan after starting his career with HDFC Limited.

During his long career with the Indiabulls, Ratra has been responsible for setting up and building the retail home loan business along with home equity business. Earlier as National Sales Manager he was responsible for setting up sales process while keeping a focus on branch profitability and third party penetration.

panels are being installed for common area lighting and hot water supply.

“We are offering machine to machine communication technology that will make life a lot easier for the home owners. The system will enable them to make their house energy and cost efficient. We are making provision for access to unbounded internet speed in alliance with a telecom player,” Kumar added.

Structurally, Griha Pravesh also meets the highest safety standards with seismic zone sustainability. A key highlight is its prime location in

business strategy and providing overall leadership to the business, the company said in a statement.

In addition, he will explore and seek new business opportunities via joint development models to scale the realty business to the next level of growth, it added.

“I am confident that his r ich experience will add immense value to Bharti Realty’s vision of becoming one of the most admired real estate companies in the country with focus on quality, innovation and commitment to customers,” Bharti Enterprises Managing Director Manoj Kohli said.

Sayal has over 30 years of experience and has worked with companies such as Alpha G:Corp, Mahindra GESCO, DLF and Ansal Group.

including environment nod, from the government,” said NN Kumar, Chairman, JNPT.

The Sez will compete with private firm Adani Ports and Special Economic Zone Ltd located near Mundra Port spread over 6,473 hectares. Sezs are industrial enclaves, deemed foreign territories from the perspective of several economic laws. Industrial units

Godrej Properties likely to launch 15-16 projects

in FY15

Noida. Ideally located from various landmarks, it is 10 minutes away from the shopping hub of Sector 18, 1.5 km from Sector 50, 3 km from Sai Dham and 2.5 km from the nearest Metro station. It is also close to schools and educational institutions.

The Indira Gandhi International Airport is about 33 km away. The project will also comprise stack parking for optimum space utilisation. The other features include theme-based entrance lobbies, and landscape open areas.

will be ready by the end of 2017. He said, “This integrated township

spread across 214.90 acres of land at Pune-Sholapur road near Pune will be developed in several phases under the Maharashtra Special Township Act. The total project cost is estimated to be more than Rs 8000 crore and involves building of 12,000 residential units in addition to commercial and retail space, facilities for various sports including sports stadiums and is targeted to be completed in 8-10 years.”

in the Sez benefit from a complete waiver on import duty, excise duty and service tax on the capital goods or raw materials they procure.

Kumar said 40 per cent of the proposed Sez would be earmarked as Free Trade and Warehousing Zone and the remaining would be allocated for electrical, software and other industries. He said the port is hiring architectural, master planning and engineering design consultants for its multipurpose Sez.

“The land development will be undertaken in the next two months with the help of consultant. We will be investing Rs.1,000 crore from our cash balance of Rs.5,000 crore. We have already received proposals from big industries,” Kumar said, without disclosing names. JNPT, which was established in 1989 to de-congest the Mumbai Port, handles 56% of the container cargo and is currently ranked 31st among the top 100 container ports of the world.

Pirojsha Godrej, Managing Director and CEO

August 11-17, 2014 3in person

‘Union Budget sops for PPP model to boost demand for steel long products’

Topworth Group is one of India’s fastest growing conglomerates with revenues exceeding $1.5 billion. It has presence in steel, power, pipes, mining, infra and aluminium, etc of which steel is the flagship business of the company. The Group has four manufacturing plants spread across premier iron ore producing regions, with a combined capacity of 1,000,000 tons of iron and steel products.

The diverse range and multiple locat ions g ive the Group the advantage of providing unparalleled customer service. The manufacturing processes are inherently flexible, allowing it to respond quickly to customer needs and provide them with products that they need.

How do you see the demand for steel long products catching the market attention from urban, semi-urban and rural segment?

With the new government ’s focus on infrastructure and housing sectors, India’s steel demand for long products is likely to grow faster than production. While steel production continued to face intense pressure due to lack of raw materials -- iron ore and coal-linkage -- its consumption will grow sustainably.

A recent study revealed that India’s long product consumption would grow by over 5 per cent in the calendar year 2014 to 50 million tons compared with 45 million tons the country consumed in the previous year. In contrast, however, steel production in India would grow

a major raw material shortage due to closure of iron ore mines in major producing states, including Karnataka, Goa and Odisha. However, the Union Steel Minister claims that there is sufficient iron ore production in the country to meet domestic demand and steel makers are not facing any shortage of the key input.

Wi th steel consumpt ion set to increase, the surplus of steel inventory is likely to decline by 50 per cent to a mere 1 million tons this year as compared to 2 million tons in the previous year.

As per Joint Plant Committee (JPC) data, India’s steel consumption growth remained muted at 0.5 per cent during April-December 2013, but production growth rate improved steadily to 5.2 per cent during the same period.

As per the Ministry of Steel, total iron ore consumption stood at 100.57 million tons while total iron ore production was 167.29 million tons in 2011-12. The trend continued in subsequent years as well. India produced 135.85 million tons of iron ore in 2012-13 against its consumption of 103.59 million tons.

What would be the impact of the Budget on steel long products, keeping in view its proposal of PPP model in infra, affordable housing, smart cities and so on?

PPP model to boost infra: The Government of India is developing a sophisticated PPP model to boost infrastructure.

It is working on a sophisticated

somewhat 3 per cent to 84 million tons in the current calendar year, compared with 81 million tons in the previous year.

The analysis assumes significance in terms of recent announcement by the Government of India which

declared increased focus on the infrastructure and housing sectors. Immediately after the announcement, corporates announced $5 billion investment on budget housing projects.

Steel production in India is facing

and flexible framework for the public-private partnership (PPP) model to boost infrastructure development. What we need to do is to have a more sophisticated PPP framework which the government is working on now. A framework that looks at PPPs in a manner where there’s flexibility in the circumstances that run over a period of 25-30 years.

It also underlined the need to de-stress the PPP model, which is facing various regulatory hurdles for infrastructure development. “There’s a strong case to see whether we can look at developing a framework which is going to decide what stress is, who is responsible for the stress, what is causing the stress and how it can be dealt with.

The va r ious bod ies i n the government should meet to look at what a stress is and how it can be defined. As regards the risks associated wi th PPP projects, it has been made clear that the government alone cannot bear the entire responsibility, adding that the risk should be shared between the private sector and government.

It underlined the need for bidding out projects only after all statutory clearances are available. The problem is not with the bidding process itself but arises due to very vigorous bidding by the private sector which overestimates its capacity and is unable to assess the potential of project on a 30-year basis.

“India’s long product consumption would grow by over 5 per cent in 2014 to 50 million tons, compared with 45 million tons in the previous year,” says Rajiv Kumar Thakur, Head of Marketing &Sales, Topworth Group of Companies, who shared some key insights on steel long products demand, Union Budget impact, challenges and opportunities for steel long products in an interview with Pramod Shinde. Excerpts:

(Contd. on pg 6)

August 11-17, 2014 4inFrAstrUctUre

Telangana to expand Hyderabad Metro to 250 km

The Telangana government said it was committed to expedite the Hyderabad Metro rail project. said KT Rama Rao, State Minister for IT. He said the government was keen to complete the project as per schedule and provide necessary support. However, he said, there were a few issues that need to be sorted out with regard to the Metro project and expressed confidence in implementing the project as per plans.

He said with Hyderabad projected to grow to a mega metropolis over the next 20 years, the state might have to draw up plans to increase the network from the current 72 km to 250 km to meet the needs of the

growing population. Speaking at the launch of the first batch of post-graduate course in Metro and rail technology by the Institute of Metro & Rail Technology (IMRT), he said, “Hyderabad will be developed as an investment destination in various sectors including IT, science, pharma, films, sports, etc.” He said the state was exploring the option of a Light Rail Transport System for Hyderabad.

NVS Reddy, Managing Director of Hyderabad Metro Rail Ltd, said the Telangana government now owns the Rs 14,132-crore project, which is supported by a viability gap funding of Rs 1,458 crore from the Central government, working out to about 10

per cent of the project cost. A Central Project Monitoring

Group is monitoring all projects with investments of over Rs 1,000 crore and this project is part of that. Telangana Chief Minister K Chandrasekhar Rao has suggested the Metro project could consider the alignment change at two places where historical sites are located at Assembly and Sultan Bazaar.

About 40 per cent of the project work has been completed and Rs 4,300 crore spent. By March 2015, stage one will be operational, he said. IMRT commenced its first batch of one-year specialised post graduate programme.

Jusco to foray into Odisha with infra projects

Tata Group firm Jamshedpur Utilities & Services Company (Jusco), is all set to foray into Odsha to implement three urban infrastructure projects in the pilgrimage town of Puri. The Odisha government is close to awarding three projects -- renovation of waste water treatment plant at Banki Muhan, installation of an effluent treatment plant at Pejanala and municipal solid waste treatment project at Grand Road, Puri.Together, the three projects have a financial implication of Rs 30.58 crore.

The s ta te gove rnment has nominated Jusco for implementing three urban infrastructure projects in Puri. The chief minister’s office has already cleared the proposal. We are soon going to award the projects to Jusco, said a government official.

Jayanta Sarangi, Chairman of Puri municipality, said “A technical team of Jusco and officials of the state

government visited the site nearly two months back. It has come to our knowledge that the government will award three urban projects to Jusco in Puri.

But work will commence after

an agreement is signed between the government and the service provider. Jusco ‘s entry into the urban infrastructure realm in Puri is set to give a facelift to the holy town thronged by tourists.

Centre switches over to EPC route for road building

With developers not showing interest in the PPP mode, the government said it has shifted its focus to the EPC route for road building. Almost 21 projects bid under PPP could elicit any response, the government said.

At present, 180 road projects under PPP mode valued at Rs 1.9 lakh crore are under construction through

various agencies. During 2013-14, the NHAI had awarded 17 projects for a total length of 1,435.84 km, of which two projects are on PPP mode, he added.

Considering the current market conditions, particularly with reference to the highway sector, the focus of the government is on implementation

of highways through public funded engineer ing, procurement and construction (EPC) mode.

Once the highways sector gathers momentum through execution of EPC projects and the issues plaguing the PPP mode are addressed, the focus on the mode, including build, operate and transfer (BoT), would be restored.

Essar Projects bags $54 m contract from

Saudi Aramco

Essar Projects said it has bagged a $54 million (over Rs 328 crore) maiden contract from Saudi Arabian national oil company Saudi Aramco. The $54-million EPC project involves upgradation of a Crude Stabilization Unit at Aramco’s Abqaiq Plant, in Shaybah, one of the largest oilfields in the world, the company said.

The scope o f work en ta i l s engineer ing, procurement and const ruct ion of a crude tank, replacement of crude pumps and associated civil, piping, electrical and instrumentation facilities. The project is scheduled to be completed in 29 months.

The Hydrocarbon SBU of Essar Projects, a global engineering, procurement, construction (EPC) contractor, has secured the contract from Saudi Aramco. The company is already executing five other projects in the region in the hydrocarbon sector.

Essar Projects, CEO, Amit Gupta said, “This contract is a reflection of our capability to undertake global projects from reputed clients in this region. We will leverage the capabil i t ies gained to enhance our foot print in other Middle East countries.”

The company has experience in refinery projects having previously executed a world-scale grass-roots refinery at Vadinar, Gujarat, with an initial capacity of 10 million tons per annum, which was gradually expanded to 14 million tons and then 20 million tons.

It also executed the supporting infrastructure and facil it ies that include SBM for crude unloading, product jetty for refinery product export, a tank farm with total tankage of 3 million cubic metres for crude, products and intermediate and 77 MW of captive power plant.

Rajasthan pumps for PPP in roads

Thailand to expand railway to link India, China

When the Union Ministry of Roads & Transport is averse to awarding projects through public-private partnership (PPP), the government of Rajasthan plans to award 20,000 km of state highways through this mode.

To this effect, the state’s legislative assembly passed the Rajasthan State Highways Bill 2014. It seeks to set up a state highways authority within a month, to achieve 20,000 km of road building over the next five years.

The new law will empower the state government and the highways authority to prescribe the manner for determination of compensation

Thailand’s military junta has said that it wants to widen the country’s railway tracks and expand the network to form transport links with important markets in India and China. The chief of the junta’s National Council for Peace & Order (NCPO) General Prayuth Chan-ocha has said the NCPO’s working plan includes initiatives to repair existing one-metre wide tracks and construct new 1.435 metre wide tracks in parallel.

The new wider tracks will also be built on whichever routes are necessary to open up rail connections with China, India and other regional countries;

and rules regarding land acquisition, operation and safety. While most of the projects will be financed by private investment, Central and state budgetary grants will also be utilized.

The state highways authority would also be able to raise funds from the market. There is also an introduction of a control zone comprising a strip of 100-metre width along the roads. While no construction will be allowed within 25 metres of the road boundary, development in the remaining 75 metres will be permitted in line with rules to be made by the state government.

he was quoted as saying. Prayuth said the NCPO has approved a basic infrastructure strategy for the country. The country’s transport network must link up with other Asean countries and beyond the region later.

August 11-17, 2014 5

How to paint your home

mixing paint. If you plan to paint the ceiling, disconnect and remove any fancy light fittings. The work will move faster and more efficiently, and painters are likely to make less errors. That is why all obstructions that impede work should be got rid of.

Prepare the surfaces to be painted. They must be completely clean of dust, spider webs, etc., and also completely dry. You should be able to wipe the wall down with a sponge without having anything come off.

Apply your masking tape to the edges of areas that will not be painted (cabinets, windows, woodwork, floor, ceiling, etc.)

Work top downAlways start from the top down

when painting. It helps to see and correct any drips or runs as your work progresses. When painting an entire room, paint the ceiling first, and then the walls. Rub clean old layer of flaking paint, and lightly sand painted woodwork to erase glossy surfaces and prepare it for fresh paint. Before repainting, use a primer-sealer to cover high-gloss enamel paints.

Keep in mind to paint only on clean, dry surface. If the weather is damp, especially in monsoon, close all windows and run an air-conditioner or dehumidifier before painting, or just wait for more favourable weather conditions.

Most modern brands of paint are lower in volatile organic compounds (VOCs) and less noxious than paints that once contained strong solvents and emitted dangerous fumes. However, good ventilation in the work area is very important. While work is in progress, open windows or switch on fans for a continuous supply of fresh air. This will also help to dry the paint more quickly.

Paints and toolsWhen purchasing paint, ask what

type of brush and roller is right for the job. Rollers have different naps, or fiber lengths that correspond with different types of paint and desired finishes. In general, the rougher the surface, the longer the roller nap should be.

Synthetic brushes and rollers are generally used with latex or water-based paint. Oil-base and alkyd paints

interiors

Painting interior walls is the easiest way to

freshen up your place. A fresh paint job has the power to totally

transform the look of your house in less time and for less cash than a

costly renovation

Every one of us likes to give a new look to our home once in a few years by painting the walls with fresh, latest shades of colour. This is a great way to make the place we live in more exciting and lively. But it’s necessary to adopt a certain modus operandi to make certain one doesn’t end up with a cluttered, scuzzy room or walls.

Now the question is: What time of the year should one undertake the painting job? Which is the ideal season to get best results?

For most of us Indians, festive seasons are the most auspicious to brighten up the interiors of our homes. When it comes to choice, Diwali tops the list as the most popular festival when house cleaning and painting is undertaken on a large scale.

Another well-liked time of the year is undoubtedly the summer season. Apart from several advantages the hot months offer, perhaps the best ones are that walls are moisture-free and the paint dries up quickly in hot weather. Also, one can quickly run out to a hardware store and purchase all the tools and supplies you need.

However, our in tu i t ion and observation tell us that monsoon months are not at all a suitable time for application of paint. There is dampness in the climate and walls remain humid which makes it difficult for them to absorb paint quickly and become dry.

Get organizedBut there are a few important

matters to take care of before we get down to the actual job. That means get well organized first before beginning the actual job on hand.

Almost all groundwork can be done a day or more before starting to paint. Whichever room you choose to paint first, shift out of your way all furniture, photo frames on walls, ceiling and wall decorations, etc. Also remove tube lights, nails, screws and other things protruding from walls. Fix any dents, chips or cracks in the walls before you begin to paint. Detach electrical switch and outlet covers. Remove hardware (doorknobs, handles, hinges, doorbells, etc) you don’t need to paint over.

Large furnishings can be piled in the middle of the room and covered with tarpaulin or plastic sheets. Spread them out on the floor as well. Keep the tools and supplies in a fixed corner of the room when you need them while

usually call for natural or synthetic brushes and rollers. Your paint dealer should guide you to the right combination of tools and materials for the project.

If the painting job requires several gallons of paint, avoid colour variations from one can to another by opening all the cans and mixing, or packing them together in a separate container. While you work, use a paint stick to mix the paint frequently, giving it a good stir from the bottom up to prevent the pigments from settling.

To keep paint from building up in the paint can rim and spilling over the sides, use a hammer and nail to punch a small hole in the interior rim of the can, this will allow excess paint to drain back into the can.

Brushes & rollersBrushes come in many shapes,

looks and sizes. Wall brushes are 3 to 4 inches wide and designed for large, flat expanses. Trim brushes have a 2- or 3-inch-wide straight edge and are a good choice for doors and window frames. Sash brushes have tips cut at an angle and are usually 1-1/2 inches wide, making them ideal for detailed areas.

Load a brush by dipping the bristles

one-third of the way into the paint. Lightly pull the brush back against the inner edge of the paint can or bucket, using the edge to squeegee off the excess paint on the bristles’ surface. Try to make long, smooth brushstrokes to avoid streaks and brush marks.

When painting, especially ceilings, cover your head with a scarf, a cloth or a broad-rim hat and wear protective eyewear to guard against spatter of paint and drips. An extension pole screwed onto the paint roller handle will help to reach overhead areas.

Use a 12-inch roller with a nap length that matches the type of paint and finish you want. Do not overload the roller with paint—fill the well of the roller tray and dip the roller in halfway, then roll it back onto the tray’s angled platform to remove excess paint.

Apply paint first in an overlapping vertical ‘W’ pattern, then re-roll this area horizontally, working in a space about 3 to 4 feet square. Refill the roller and begin your next application outside the painted area, rolling back into the wet paint as you work.

Cover all areas of the wall and try to avoid missed spots. Don’t let it bother you if the first coat looks thin or appears lighter than the shade you chose, or doesn’t completely hide the original coat. A second layer is usually required to provide a uniform, finished coat that accurately matches the colour you bought.

When you need to take a break during the project, wrap brushes and rollers with plastic wrap to keep them wet and pliable for up to a day or more. When you’re ready to work again, simply unwrap them and resume painting. Paint rollers are inexpensive and disposable, but brushes are costly and worth saving, and they can be used many times if given proper care and cleaning.

Mundane to excitingPainting the entire interior of a

house can transform it from humdrum to exciting and inspiring. Covering interior walls with a fresh, bright paint can dramatically change the look and feel of your home.

Painting is an inexpensive way to transform an ordinary room into something extraordinary. It can also raise property value and help a home for sale move more quickly. However, doing it right requires serious planning, but can be worth the effort .

Colour changes everything. You can give your drab, washed-out walls a burst of brilliant depth just by simply picking up a paint can and a brush. And voila! It’s that simple—and rewarding, too!

August 11-17, 2014 6in person

In a record of sorts Delhi Metro completes twin tunnels

Delhi Metro seems to be working overtime on phase-3 as its 2016 deadline draws close. On August 5 it announced completion of two tunnels on the Janakpuri (west)-Botanical Garden corridor. Two parallel tunnels at Dabri Mor were completed with the help of two tunnel boring machines.

The two TBMs — named ‘Riddhi’

and ‘Siddhi’— emerged at the Dabri Mor station after boring the two 1.2 km long twin tunnels. While one of the TBMs was inserted in December last year, the other TBM had started work in January. These are the first tunnels to be completed on this corridor.

The Delhi Metro Rail Corporation spokesperson Anuj Dayal said, “This is

the first occasion that twin tunnels have been completed together in any Metro project in India. The decision to go for a twin TBM breakthrough was taken since both TBMs were progressing almost simultaneously. The first such instance of a twin breakthrough had happened during work on the 8.6 km long Toronto-York Spadina subway extension in year 2002.”

The tunnels have been constructed at a depth of 16.5 metres and the internal diameter of the tunnels is 5.8 metres. The casting of the segments has been done at the Dwarka casting yard. According to Delhi Metro, the construction was a “major engineering challenge” as the tunnels passed underneath thickly populated residential and commercial areas and needed “extensive geotechnical instrumentation and monitoring”.

At present, about 28 TBMs are engaged in tunnelling works in different parts of Delhi as compared to 14 TBMs used in phase-2.

Railways to spend `73k cr on two freight corridors

The Indian Railways will spend over Rs 73 ,000 c rore on two Dedicated Freight Corridors (DFCs) under construction from Dankuni to Ludhiana (eastern DFC) and the Jawaharlal Nehru Port Terminal (JNPT) to Dadri (western DFC).

Minister of State for Railways Manoj Sinha said two DFCs — eastern (1,839 km-long Dankuni-Ludhiana section) and western (1,499 km-long JNPT-Dadri section) — had been sanctioned.

In Eastern DFC, construction work is underway on the Mughalsarai-Sonnagar section. Civil contract has been awarded on the 343-km Khurja-Kanpur section and work has started. In Western DFC, civil contract has been awarded on the 625-km Rewari-Palanpur section and work has started. Construction of 25 major bridges between Vaitarana and Bharuch has been completed.

The estimated completion cost of construction of the two, excluding

land and the Sonnagar-Dankuni section — to be implemented through public private partnership (PPP) — is Rs 73,392 crore (Rs 26,674 crore for eastern DFC and Rs 46,718 crore for western DFC). The cost of land is estimated at Rs 8,067 crore (Rs 3,684 crore for eastern DFC and Rs 4,383 crore for western DFC).

Western DFC is being funded by loan from the Japan International Cooperation Agency (Jica), which has extended 77 per cent (Rs 38,772 crore) of the project cost. The World Bank is funding the 1,183 km section from Ludhiana to Mughalsarai of eastern DFC. It has extended Rs 13,625 crore in loan, which is 66 per cent of the project cost.

Further, the 122 km stretch of the Mughalsarai-Sonnagar section in eastern DFC is funded by Gross Budgetary Support and the cost is Rs 3,679 crore. The 534 km stretch of the Sonnagar-Dankuni section of eastern DFC is to be implemented through PPP.

Affordable housing: Affordable housing refers to housing units that are affordable by that section of society whose income is below the median household income. Affordable housing becomes a key issue especially in developing nations where a majority of the population isn’t able to buy houses at the market price.

The d isposab le i ncome o f people remains the primary factor in determining affordability. As a result, it becomes increased responsibility of the government to cater to the rising demand for affordable housing. The Government of India has taken var ious measures to meet the increased demand for affordable housing along with some developers and stressing on public-private partnerships (PPP) for development of these units.

The long products demand will get a boost by construction of this type of housing by PPP. The biggest advantage would be for local players who are nearer to the site since the steel price would play a major role for PPP.

100 smart cities: The government is planning to set up 100 smart cities across the country that will provide modern amenities, education and employment opportunities. Urban Development Minister M Venkaiah Naidu said the project of 100 smart cities is in conceptualized stage and details are being worked out through discussions with all stakeholders, including state governments.

“The cities are yet to be identified,” he said. The minister said education, employment and entertainment are considered to be the key factors which forced people to migrate from rural areas to urban centres.

“Opportunit ies of education, employment and entertainment are concentrated mostly in urban and semi-urban centres and these three factors are forcing more and more people to leave rural areas and migrate to towns and cities. The smart cities concept also translates into demand for long products to a very large extent.

What are the biggest challenges and opportunities for steel long products?

Challenges: Higher input costs burden steel makers, which would make steel dearer by $8-16 per ton very soon. During the past two

months, the input costs used by steel makers have gone up by around Rs 1,600 ($26) per ton with the rise in inputs. The price of iron ore and diesel has gone up. The rise in costs of coking coal and zinc is because of the duty hike in the Budget. Rail freight was also raised. All these have escalated pressure on us, according to a leading steel maker.

The Centre levied 2.5 per cent duty on imports of coking coal, a key steel making input, in the Budget from nil. The duty hike would lead to Rs 200 ($3) per ton increase in the cost of steel production. Steel makers have been holding the prices for the past couple of months and now will be forced to pass on the escalated cost.

Could you elaborate more on Topworth Group long products variants with their market size in India as well as overseas? Which are its key demand drivers?

Lodha TMT: Presently, our strategy is to feed the Maharashtra TMT market since the demand in Maharashtra is to the tune of 4.5 million tons per annum as against our production of 1.5 lakh tons. Our first priority is to our state and any excess would be sold outside Maharashtra. However, we do supply to various projects and construction industries outside Maharashtra .

Lodha structural: Our production is to the tune of 180,000 mt per annum at our Durg plant. Our presence is mainly on various projects and we also cater to various end-users and fabricators on all-India basis. To serve the small and local buyer, we also market through trade channel.

Lodha pipes: We are in ERW and spiral pipes manufacturing having a capacity of 75,000 mt per annum (back & galvanized up to 4”) and 300,000 mt per annum (up to API x 80 PSL II from 18” to 80”) respectively.

In oil & gas pipe lines we are a regular supplier to Gail, IOCL, IPCL and others, and we are also exporting to the Middle East for cross country pipelines. We are also supplying water pipes to various governments well as private sector projects under state government water transportation scheme for semi-urban and rural areas.

Could you elaborate on the unique process of Topworth Lodha Thermax TMT bar which makes the product stronger, safer and more ductile?

It has a uniform rib depth and

spacing which makes it unique from ordinary TMT bars.

It is being processed in the world’s proven Thermax® technology for imparting superior strength and quality to ribbed bars -- quenching, self-tempering and atmospheric cooling.

Ribs are made using CNC (machine rolls) advanced technology, thereby avoiding uneven rib pattern which gives rise to weaker bonding strength.

Lodha Thermax TMT gives better fatigue strength than ordinary rib bar ensuring the RCC structure stands for generations.

Possesses a unique combination of strength, ductility and bendability which is significantly higher than the st ipulated requirements of IS:1786/85.

What is your strategy to enhance the significance of Lodha Thermax TMT rebars?

Our s t ra tegy to reach the every nook & corner & doorstep of customers per end-user in state, districts, talukas and villages through our dedicated sales force

How do you ensure the availability of TMT and pipes products in India?

We have a full-fledged customer servicing & order management team which ensures tracking and execution of every order in time and also get regular input from our sales force

on requirement in the market of our product.

What are the biggest advantages of Lodha Thermax TMT and pipes products in terms of mechanical properties?

Durability and long lasting of concrete structures; ideally suited for high-rise buildings, dams, bridges and industrial constructions. Very well suited for earthquake-prone areas.

Better elongation gives more strength and safety to any concrete structure which is vital and essential for earthquake-prone areas.

Bend and re-bend tests are mainly carried out by IS:1786 and British 4449 standards. Lodha Thermax TMT meets all such standards.

Easy and fast work ability, saves time & cost due to higher bendability.

Easy weldability with no loss of strength at joints. No pre-heating and post-heating required during welding. Pre-welded meshes can be used to save time.

Safe and has significant strength at higher temperatures.

Highly effective in humid and coastal areas.

Topworth innovations towards strength and agility of TMT bars to be competitive and sustainable in the market.

Online hot billet direct rolling of Lodha Thermax TMT bars.

Hot charging refers to the practice of handling the billet directly from the end of the continuous caster run out table to the roughing mill of TMT bar rolling mill without any stoppage.

To attain Direct Hot Rolling:A high-speed rol ler table is

installed from caster run out table to the roughing mill working roller table.

Increase in casting speeds to the desired limits to get desired temperatures.

Direct transfer of the hot billets at required rolling temperature from caster to roughing stand.

Net savings of almost 35 per cent in rolling costs in terms of scale loss and fuel costs.

Unique propert ies of Lodha Thermax TMT bars

B e n d a b i l i t y : To u g h o u t e r surface and soft core of the Lodha Thermax®TMT make TMT bars bendable and ideal for construction.

Fire resistance: As compared to TOR steel, Lodha Thermax® TMT bars have higher thermal stability and therefore can withstand elevated temperatures.

Excel lent weldabi l i ty: Lodha Thermax® TMT bars can be used for butt and other welded joints without reduction in the strength at the welded joints.

(Contd. from pg 3)

Steel long product process

PROJECTS UPDaTE

August 11-17, 2014 7inFrAstrUctUre

The logistics and warehousing industry

has a very high dependence on physical

infrastructure. The challenges pertaining to it are manifold ranging

from lack of ample road and rail network to accessible storage

options

Evolution of logistics sector

(Part 2)

Currently the Indian logistics and warehousing industry is highly fragmented and unorganized. The logistics and warehousing sector in India is still in its initial stage of development and has a long way to catch up with most of the advanced economies.

Managing transportation network and storage of finished goods, used to define the supply chain strategy for most of the companies in India until a few years back. However, integration of the Indian economy with global economy and various multi-national companies setting up manufacturing facil i t ies locally have helped in bringing global best practices to the domestic market.

This has resulted in a gradual shift from simply managing transport network and godowns towards a more integrated supply chain management system.

In order to unders tand the evolution of the logistics sector in India, it is imperative to study the competing markets that have moved ahead in the value chain. The United States of America is considered to be the most evolved logistics market in the world and can be used as a benchmark to compare with the Indian market.

China, sharing a great amount of characteristics in terms of economy and geography with India, can be considered as another benchmark for comparison. The comparison of USA and China with India will help in understanding the various gaps and the current status of the domestic logistics market.

Different needsThe need for logistics arises when

there is a gap between the time a product is initially manufactured and then finally consumed. The larger this gap, the higher the need for storing the product. Since each product is uniquely placed depending on who consumes it and where it is consumed, the need for logistics is different for each product category.

For example, a TV unit that is manufactured in India and sold in the domestic market will have a different requirement for logistics compared to the same TV unit sold in the export market. For domestic consumption, the TV unit will have to be warehoused close to one of the urban centres from where it can be delivered to the final point of consumption.

However, in case of export, it will have to be stacked in a container that will be warehoused in a Container Freight Station (CFS) close to one of the ports from where it can be exported. Taking into account such varying needs for each product, demand drivers of logistics can be broadly classified into four categories namely:

Manufactur ing led demand; consumption led demand; exim (export-import) led demand and agriculture led demand.

For the purpose of this report, agriculture led demand has not been considered for analysis as it is a largely unorganized market with go down type structures spread across a vast geography of the country. Additionally, the government contracted agriculture warehouses have caps on rentals and construction cost thereby distorting free market economics.

corridors and investment zones, the logistics sector in the country is bound to reap the benefits in coming years. Additionally, opening up of various manufacturing sectors to Foreign Direct Investment (FDI) in the past decade has provided a fresh impetus to the logistics sector.

Consumption-led demandThe changing dynamics of the

retail industry have shifted the focus from supplier to consumer in the past two decades with concepts such as delivering the right product at the right time gaining importance.

This has compelled retai lers in maintaining a steady flow of SKUs (Stock Keeping Units) with real time inventory management and order placement.

The changing dynamics of the retail industry in India has resulted in the business model of a modern retailer becoming heavily dependent on a smooth and efficient supply chain network. This has brought the logistics industry at the forefront of this business.

Large consumption markets like NCR, Mumbai, Bengaluru, Chennai and Kolkata among others require a massive amount of investment in logistics in order to ensure an uninterrupted supply of goods. This has created demand for logistic services like warehousing, last-mile connectivity and inventory management

The demand for logistic services is strongly linked to growth in the retail industry which is induced by higher consumption spending. The emergence of modern retail in the last decade has accelerated retail in the last decade has accelerated the need for maintaining an efficient supply chain network.

Additionally, opening up of the retail industry to the FDI has further boosted demand for log is t ics services in the past few years as foreign retailers rope in global best practices in the sector.

Exim-led demandExport- import (Exim) market

constitutes the largest demand driver for the logistics sector in India as the cargo that moves through ports requires a huge amount of supporting logistics infrastructure.

Services such as transportation (rail, road and sea) and warehousing form the primary activities in Exim related logistics. Currently, majority of the Exim cargo in India is moved through containers that are standard in terms of dimension (20-foot equivalent unit or teu) across the globe.

This makes it easier to transport cargo from one modal to another whether it is rail, road or sea. India’s containerized traffic in teus has grown at an annual average growth rate of 11 per cent in the past 10 years, fuelling robust demand for logistic services.

Apart from the huge investment in the transportation sector, Inland Container Depots (ICD) and Container Freight Stations (CFS) have also attracted significant traction due to strong growth achieved in the Exim trade. Currently, India has more than 200 operational ICD & CFS with another 50 expected to become operational in the next five years.

Economic recovery in key western markets of the USA and Europe is expected to further boost India’s Exim trade in coming years, thereby driving the domestic logistics market.

Warehousing space demandLogistics cost can be broadly

divided into three major components namely transportation, storage and distribution. The focus of this report is primarily on storage or in other words warehousing component of logistics.

Warehousing costs constitute around 15 per cent-35 per cent of the total logistics cost, depending on the product and markets served. The sheer size and growth potential of warehousing space in India warrants the need to study it separately from other components of logistic services.

Demand driver of warehousing space, similar to logistics, can be broadly classified into manufacturing, consumption and Exim. Currently, manufacturing based demand has the largest share in total warehousing space at 631 million sq ft in 2014.

This is primarily because of three reasons. Firstly, India has a large manufacturing base covering all the major sectors like automobile, steel, cement, pharmaceutical, fertilizer and textile, among others that require a vast amount of space for raw material and final product storage.

S e c o n d l y , I n d i a ’ s l a r g e landmass results i n a w ide r gap between production and consumption of manufactured p r o d u c t s . T h i s compounds the need for holding a larger inventory at warehouses in

order to avoid disruptions in the supply chain network.

Manufacturing-led demandLogistics cost constitutes a critical

component of a manufacturer’s total cost and is largely dependent on the location of his plant. The distance between the manufacturer’s factories, his raw material suppliers and the consumption markets of final goods primarily determine the cost of logistics for a company.

Apart from these factors, the type of product manufactured also influences the total logistics cost. For example, the cost of transporting and storing diamond products is much higher than that of cement or steel. Thereby, within the manufacturing led demand for logistics, the cost can differ drastically for different types of products.

The manufacturing sector is a major driver of the logistics industry in India with companies spending anywhere between 2 per cent – 20 per cent of their revenue on this. Growth of the logistics sector is positively related to growth of the manufacturing sector.

With the government of India’s renewed focus on expanding the manufacturing sector through various initiatives such as dedicated industrial

Previously consumers had few options as most of the retailers were small-time operators facing frequent stock-outs and limited choice of products. The entire retail segment was heavily skewed towards the supplier.

However, with the advent of modern retail and emergence of large-size retail formats, the entire focus of retailing has shifted towards consumers.

Today, any delay in the delivery of product or stock-outs at the stores could threaten the entire business model o f a re ta i l e r.

Godown

W a ehouse

Hub

Godown

Warehouse

Integrated Logistic Park

August 11-17, 2014 8inFrAstrUctUre

In line with the recent initiatives of the government as well as the RBI to push for growth in infrastructure and real estate, the additional

funds allocated in the hands of commercial banks through a SLR cut is positive for both these sectors

Prudent RBI monitory policy

In India, leading indicators such as the monthly Industrial Production and Purchasing Managers’ Index (PMI) have provided early signals of strengthening corporate sales and business flows. The benign outlook on global non-oil commodity prices and still-subdued corporate pricing power should all support continued disinflation, as should the recent government measures to improve food management.

However, the RBI has deemed it premature to conclude that future food inflation and its effects on broader inflation can be discounted. Also, the government is currently constrained by high deficit and its abil i ty to spend is therefore restricted.

This actually opens up space for banks to increase lending to the private sector. Thus, there is a need to increase liquidity with banks in

The monetary policy announced indicates that the Reserve Bank of India is keeping a close eye on inflation rather than facilitating growth just as yet. This makes sense. Globally, emerging markets (including India) continue to remain vulnerable from decisions by US Federal government on withdrawal of stimulus, as well as geopolitical tension in the Middle East – which could impact crude oil prices.

Finally, the existing tax structure (detailed discussion in policy and regulations section) has compelled manufacturers to maintain a separate warehouse in each state in order to avoid a higher tax outgo.

Strong demandSuch dynamics have shaped a

strong demand base for warehousing space in the country f rom the manufacturing sector. Demand for warehousing space from the Exim sector constitutes the second largest share at 211 million.sq ft in 2014.

This is primarily because ICD & CFS require a much larger land area to operate the various material handling equipment and supporting infrastructure like rail sidings. In terms of future growth, Exim led demand is

expected to lead with a 13 per cent Compounded Annual Growth Rate (CAGR) from 2014-2019.

Strong recovery of the export market and rapid expansion by CFS operators in coming five years are expected to support such a growth. The total warehousing space demand in India is expected to grow at 9 per cent CAGR from 919 million sq ft in 2014 to 1,439 million sq ft by 2019. A total of 520 million sq ft of incremental warehousing space will be required by the end of 2019 or 104 million sq ft in each of the coming five years.

Issues and challengesDespite showing immense growth

potential, the Indian logistics and warehousing industry encounters

various issues and challenges today. Success of this industry will depend largely on the resolution of these.

Even though some of the biggest challenges require init iatives at the government level, the private sector wil l also play an equally important role. Some of the key challenges witnessed by the industry are explained below.

Transport infrastructureThe logistics and warehousing

industry has a very high dependence on physical infrastructure. The chal lenges pertaining to i t are manifold ranging from lack of ample road and rail network to accessible storage options.

India lacks efficient road and rail network to facilitate smooth movement of goods. Also there i s o v e r d e p e n d e n c e o n r o a d infrastructure unlike the developed countries where rail is an equally i m p o r t a n t m o d e o f f r e i g h t movement.

The rail network in our country is saturated due to limited addition in tracks during the past decade. Likewise cargo handling capacity of our ports is also inadequate leading to delay in deliveries.

The typical turnaround time of Indian ports is twice that of the neighboring ports of Colombo and Singapore. All the above transport related issues in turn affect the export and import time which in turn poses a challenge for companies.

Information technologyThe importance of information

technology cannot be undervalued in the logistics sector. Low penetration of IT and absence of ef f ic ient commun ica t ion in f ras t ruc tu re pose a big challenge for logistics companies. Whether it is the use of transport management systems,

order to enable them to meet the additional financing requirements.

Key policy changes In line with the street estimate,

the RBI has kept the benchmark interest rate (repo rate) unchanged at 8.0 per cent. All other key policy rates, barring SLR, also remain unchanged.

The statutory liquidity ratio (SLR) of scheduled commercial banks has been reduced by 50 basis points from 22.5 per cent to 22.0 per cent, thereby increasing funds available with banks for lending to the private sector.

Impact on real estate In line with the recent initiatives of

the government as well as the RBI to push for growth in infrastructure and real estate – specifically affordable housing -- the additional funds allocated in the hands of commercial banks through a SLR cut is positive for both these sectors.

The investment cycle is picking up, as is evidenced by the recent

Anuj puri Chairman & Country Head, JLL India

Index of Industrial Production (IIP) and Purchasing Managers’ Index (PMI) numbers. Therefore, banks’ wi l l ingness to lend the excess liquidity generated to these priority sectors is likely to be high. As far as interest rates are concerned, the real estate sector will have to wait a little longer for a rate cut.

Generalised inflation and interest rates are just one aspect of the costs incurred by developers in India. The other major aspect is construction cost, which has been rising at around 17 per cent year on year for past four to five years.

The reason for this imbalance is largely the supply-side constraints. It is important for the RBI and the government to cohesively work towards clearing this demand-supply imbalance. The signals coming from the monetary and fiscal authorities are currently positive. To that extent, the real estate sector certainly has reason to look forward with enthusiasm.

Current inflation Over the last three months, CPI

inflation (a number that RBI closely follows) has moderated. As of June 2014, it stood at 7.3 per cent y-o-y, giving some comfort to RBI. The RBI could have lowered its hawkish tone and reduced interest rates marginally at this point, but the deficit in monsoon and a yet-to-reflect impact of the recent hike in rail ticket prices are potential threats. Therefore, lowering its guard against the inflation threat would have been premature.

Radio Frequency Identification Device (RFID) or warehouse management systems, India lacks on every front.

Fragmented marketThe logistics sector in India is

highly unorganized and fragmented. Most of the truck operators are small private players and are unable to contract directly with the clients. As a result of this, mediators come into play and generate business for them and take commission.

Al l this leads to operat ional inefficiencies and compels truck owners to overload in order to achieve profit margins. Since the operations are so fragmented, economics of scale cannot be adopted. Presence of multiple check points for trucks is another challenge. Every state requires certain documentation for a truck to pass the border such as RTO inspection, octroi and toll tax among others leading to huge delays during the journey.

Land availabilityAffordable land availability with

clear titles in tactical locations is a big challenge currently. Since land is a state subject, it adds to the challenges as different states have different set of procedures pertaining to agriculture land acquisit ion. Increasing land values even in the peripheral areas of a city further

Construction Cost of Warehouse Developments

Cost components for construction of a warehouse (Rs/sq ft on built-up area basis)

Cost component PEB RCC

Structure 350 - 500 400 - 550

Plinth/ Flooring 300 - 450 300 - 450

Infrastructure (Sewage, roads, Boundry wall, etc) 150 - 650 150 - 650

Total 800 - 1600 850 - 1650

Warehouse Clusters In MMR

makes it unviable for companies to invest in warehousing.

Lack of standardizationAs discussed earlier the demand

drivers of the logistics industry a re var ied and have spec i f i c requirements. These requirements are further reflected in transportation and warehouse needs. There is lack of standards related to design, safety and type of facilities and amenities of warehouses.

Increasing global izat ion and entrance of international players has increased the demand for good quality warehouses which are at par with other countries. Currently there is a dearth of such warehouses which compels companies to invest further in order to support their operations.

Lack of trained manpowerThere are l imited options of

specialized studies on logistics management in the country. Most of the warehousing players lack the required expertise leading to operational inefficiencies. As the industry evolves, the need for experts is also expected to grow. A majority of logistics players today have limited knowledge of material loading, handling and storage leading to wastage.

(Concluded)(Courtesy: Knight Frank India)

REal ESTaTE

August 11-17, 2014 9eQUipment

Grove cranes enlisted for $670 m chemical complex

1,188 t in total; 51 heat exchangers; 78 reactor vessels; eight thermal columns; 18 mixer units; 125 pumps and 51 km of piping.

Despite having an installation list that would keep most project managers up at night, Luca Pibiri, general manager at main contractor and crane owner I.COM, says his Grove cranes keep him relaxed.

“This is not the first time we’ve used our Grove cranes on a project of this size and importance and, as before, we are confident they will deliver excellent performance,” he says. “Grove cranes are durable and reliable machines, and our operators find their simple operating systems

S a n y H e a v y I n d u s t r y, t h e construct ion equipment maker controlled by Chinese billionaire Liang Wengen, is planning to list a subsidiary in Hong Kong, according to the company’s statement.

Sany Heavy Machinery (China), which makes excavators, hopes the Hong Kong listing will help boost overseas sales and improve its competitiveness, the statement said. The board of directors of Shanghai

and fast set-up make life much easier.”

The Porto Torres job site is a tricky place for a crane to negotiate – especially for the 300 t capacity Grove GMK6300L, the largest crane on site. Tight corners and an intricate maze of equipment means maneuverability is the key, which Grove’s mobile cranes are designed for. The Grove AT range features all-wheel steering to minimize turning circles, while the Grove RT range has four steering modes, allowing them to access even the tightest spaces.

The coasta l locat ion of the Porto Torres project brings its own difficulties. The marine environment,

Heavy Industry, whose shares trade at the Shanghai Stock Exchange, has approved the Hong Kong listing.

Sany Heavy Industry has been hurt by tough competition in China and a slowdown in economic growth. Its shares have lost more than 10 per cent of their value in the past year and are down by almost three-quarters from their most recent peak in 2010. Sany’s rivals in China include Caterpillar.

A team of Grove all-terrain and rough-terrain cranes is working at one of the most significant chemical processing plant projects in Europe. The Porto Torres Green Hub project in Sardinia, off the coast of Italy, will see the complete conversion of the existing facility from a fossil fuel plant to a bio-based production facility.

The six Grove cranes, which offer capacities from 40 t to 300 t, will spend six years at the giant coastal job site. They are charged with installing a demanding and expensive list of chemical plant equipment and materials that includes 15 tanks, which vary in size up to 500 m3; 17 racks measuring 950 m and weighing

Volvo acquisition strengthens Terex Trucks brand

The newly named Terex Trucks is committed to its customers, products and dealers, says the company’s longstanding Managing Director Paul Douglas in a statement almost two months since its acquisition by Volvo Construction Equipment (Volvo CE).

In his first public announcement since the company’s acquisition was completed on June 1, 2014, Douglas said Terex Trucks would continue to operate as an independent business while at the same time drawing on the resources and expertise of its parent company.

“Our new ‘owned but independent’ status gives us the best of both worlds,” said Douglas. “We retain our lean and agile organizational structure, our entrepreneurial spirit,

customer focus and speed of execution – but with the added benefits that being part of a global leader in the construction equipment industry brings with it.”

Douglas also used the occasion to make clear statements about the future of the company. “The Terex Trucks name will remain for the long term and we remain fully committed to our entire customer base and product range. That means both rigid and articulated haulers will play important roles in the company’s future, and we will continue to support the entire field population with parts and service. We are also committed to retaining our dealer partners, our existing production footprint and our skilled and committed workforce.”

Sany unit seeks HK listing

Terex Trucks’ new owner is also satisfied with its purchase. According to Andrew Knight, VP strategy and business development, “Volvo CE has made no secret of its longstanding wish to offer customers a rigid hauler option. Terex Trucks products are well respected in the market and there is a large field population to support its parts business. Both rigid and articulated haulers provide a strong complement to Volvo CE’s product range, and since the deal closed we have had greater insight into the strengths of the business, reinforcing our view that Terex Trucks is a good strategic fit.

“Terex Trucks is a lean, agile and well-run organization and Volvo CE will apply only a ‘light touch’ approach to its running,” continued Knight. “That said, we acquired this business with a very clear vision for the future with a strong desire to grow the business. As such we will be providing strong support in terms of resources and investment wherever it is required.”

“Becoming part of Volvo CE is also well-timed in terms of market outlook,” concluded Douglas. “Although the mining sector – a big customer of Terex Trucks – is currently depressed, the benefits of our new investment and cooperation relationship with Volvo CE looks set to coincide with the cyclical upswing of the segment, further strengthening the acquisition rationale. Terex Trucks as part of Volvo CE provides a mutually beneficial best of both worlds for both companies.”

sand and uneven terrain make for tough working conditions. But the rugged design of the Grove cranes, which have the patented Megatrak suspension system on the ATs and deep box-section frames on the RTs, means they are built to tackle much worse.

Work began at Porto Torres in June 2011 and the first Grove crane arrived at the site in September 2012. All six will remain there until work is completed in 2018.

All of the Grove cranes were supplied by Italian dealer FIMI spa. The company was a key reason why Grove was selected for this major project as Enrico Angiolini, director South Europe at Manitowoc Italy, adds.

“This is such a big project that needs the best equipment and the best service,” he says. “FIMI’s staff has the expertise and the experience to fully meet the needs of the customer and ensure this ambitious project moves ahead on schedule.”

The Grove all-terrain cranes at the Porto Torres Green Hub project include two 75 t capacity GMK4075s, a 100 t capacity GMK5095 and a 300 t GMK6300L all-terrain crane.

The Grove GMK6300L offers the longest boom in its class, at 80 m, and is among Grove’s most popular models.

The rough-terrain cranes at the project include Grove’s 35 t capacity RT540E and the new 45 t capacity RT550E rough-terrain crane, which features Manitowoc’s Crane Control System that makes lift set-up even easier. Both these units are built at the Grove factory in Niella Tanaro, Italy.

I . C O M , a l e a d i n g I t a l i a n construction company for chemical and power generation industries, is also the owner of the largest fleet of cranes in Sardinia. It is transforming the Porto Torres facility for Matrica SpA, a joint venture between Polimeri Europa, the biggest Italian chemical company, and Novamont, a global market leader in biodegradable plastics.

The Porto Torres Green Hub project will convert the plant from using traditional fossil fuels to bio-based alternatives. The project will reportedly usher in a ‘new age’ for the Italian bio-chemical industry. Once operational, the plant will produce bio-plastics, bio-lubricants and bio-additives.

CNH Industrial’s construction equipment business recorded sales of $931 million in the second quarter of the financial year, a 0.9 per cent decline on the same period last year. However, it achieved an operating profit of $28 million, up 15 per cent on Q2 of 2013.

Moreover, the businesses sales for the first half of the year were up 0.7 per cent on the first half of last year at $1.71 billion. The first half operating profit was $31 million, compared to a loss of $13 million a year ago.

CNH Industrial said its increase in sales was due to higher demand in North America, which offset a

decline in Latin American and Asian territories. It also noted a recovery in the Europe, Africa and Middle East region.

The company also said it ramped-up production in the second quarter, with output some +12 per cent higher than retail sales, in response to the recovery in North American and European markets.

Overall, CNH Industrial’s sales for the quarter were up 0.9 per cent compared to a year ago at $8.91 billion. Operating profits were up 10 per cent at $358 mill ion. CNH Industrial sells construction equipment under the Case and New Holland brands.

CNH construction equipment sales rise in Q2

August 11-17, 2014 10reAl estAte

DLF eyes `200 cr rent from ‘Mall of India’

in Noida

India’s biggest realty firm DLF is expecting Rs 200 crore rental income per year from its large luxury shopping mall in Noida to be launched early next year. ‘DLF Mall of India’ with 2 million sq ft of leasable area is being developed in Noida in the National Capital Region at an investment of Rs 1,100 crore and touted as one of the biggest in the country.

DLF has leased about 90 per cent of the area and the mall is expected to be launched in February-March 2015, sources said, adding that more than 200 brands have signed so far. DLF’s annual rental income from

Modi govt set to relaunch rural housing

schemeThe Centre is likely to expand

the reach of the 30-year-old rural housing scheme by relaunching it as a national mission with a target to build 3.2 crore pucca houses for the poor over the next eight years.

The move is in line with Prime Minister Narendra Modi’s vision of housing with water, electricity and toilets for all Indians by 2022. The Rural Development Ministry has floated a discussion paper that proposes to give a new identity to its flagship programme, Indira Awaas Yojana, by launching it as National Gramin Awaas Mission or Gram.

According to the paper, Gram will have an annual target of 25 lakh houses and fund requirement of Rs 27,300 crore per year. The key proposals placed for stakeholder consultation include doubling the per unit assistance to Rs 150,000 in plains and a little more in hilly or difficult areas with toilets being an integral part of the house and enhancing the area of each unit to 30 sq meters from 20 sq m.

“This would have a significant cost implication, but is inevitable if the problem of housing in rural areas is to be addressed,” said the ministry. As of now, the government gives a grant of Rs 70,000 per unit for construction of new houses in plain areas and Rs 75,000 for hilly and difficult areas.

Though construction of toilets has been mandatory since April 2013,

Centre to recast of land-use policy to check displacement

DDA may reserve 80 pc flats for Delhi residents

Xander Group invests Rs 400 cr in Supertech’s

project

The Narendra Modi government has set its eye on a recast of the country’s land-use policy to make it more scientif ic and minimize displacement, much along the lines of the Gujarat model that enabled rapid industrialization, by offering wasteland for development.

There has been much criticism of the Land Acquisition Act of 2013, which the government and private players say will make land purchases almost impossible because it mandates high compensation and resettlement and rehabilitation of affected families.

The department of land resources, under the ministry, will revisit the land-use policy in the light of Gujarat’s

The Delhi Development Authority (DDA) has said it is considering to reserve 80 per cent of the flats under Housing Scheme 2014 for Delhi residents only. That means that that people living in Noida, Gurgaon and other satellite cities can only be allotted homes from the remaining 20 per cent, officials said.

“We are looking at introducing a condition in the DDA housing scheme 2014, under which 80 per cent of the houses will be reserved for people residing in Delhi. While a person already owning a DDA flat cannot apply under the scheme, those who own builder or private houses can apply,” said DDA Vice Chairman Balvinder Kumar. This scheme is expected to have 26,000 flats on offer across various categories.

“We are considering introducing a clause in the agreement whereby these flats will only be registered

NCR-based Supertech Ltd has received an investment of Rs 400 crore from the Singapore-based real estate investment arm of the Xander Group Inc. The investment has been made in Supertech’s Township and Group Housing projects in Gurgaon Sector 79.

Rohan Sikri, Partner at Xander Investment Management, Singapore, said, “We continue to see the National

scientific model of land use for industrialization to enforce it at the all-India level.

“Such a plan wi l l help l imit land acquis i t ion and minimize displacement. It will help in creative integration of state plans on the one hand and the national perspective of development plan on the other,” said an official, adding that officials will soon visit the western state to study its model.

The move will help industrialists pick up plots within a short span of time at a relatively low cost with barely any obligation of rehabilitation because these would be tracts of wasteland. Besides, it will ensure that

after five years,’’ said Kumar. Many people tend to buy DDA flats only to sell it for a profit to builders at a later stage. Such a clause would prevent this, he said.

The much-awaited scheme comes four years after DDA offered over 16,000 flats in its 2010 scheme. This scheme will mainly comprise housing for those from the economically weaker sections. Previously, the DDA used to announce housing schemes every two years leading to a major housing crunch in Delhi. Union Urban Development Minister Venkaiah Naidu had also emphasised the need for DDA to create more housing .

Of the 26,000 flats, the first set of 15,000 flats will be ready by August-end and another chunk by December-end. About 1,000 houses will be completed by March next year. The houses will be priced from Rs 14-15 lakh to Rs 1 crore.

Capital Region as an important market for us in India, and the relationship with Supertech, one of the largest NCR-based developers, reinforces our investment appetite for end user focused residential projects with quality partners.” The Xander Group Inc is a global investment firm focused on the infrastructure, hospitality, retail and real estate markets.

barely 38 per cent houses reported construction of toilets in the last fiscal because of insufficient funds and lack of coordination while provision for water and electricity, through convergence, is still optional. The Rural Development Ministry has proposed to set up Gram in the form of an autonomous registered society to implement and monitor the scheme at the national level.

industries come up in such regions, which have been neglected, and boost their local economy.

Today, most new factories are coming up in developed areas, where land acquisition is not only expensive but also leads to extensive delays and displaces a large number of families. The changeover would require the government to update the wasteland atlas of the country with detailed descriptions so that it can be used by public and private players scouting for hassle-free land.

Of the national land area of about 3,166 lakh hectares, 467 lakh hectares, or 15 per cent, is wasteland, including uncultivable land.

commercial properties, including offices and shopping malls, stood at Rs 1,950 crore last fiscal. It is targeting 8 per cent growth this financial year to Rs 2,100 crore, according to analyst presentation.

Rental income could reach Rs 2,500 crore during 2015-16 fiscal on the back of normal 8-10 per cent growth plus additional Rs 200 crore coming from Noida mall, sources said. DLF currently has about 28 million sq ft of operational commercial area, of which about 2.5 million sq ft is retail. It has three operational malls in the national capital.

South real estate firms tie up to set up cement unit

With cement manufacturers refusing to roll back prices, property developers and builders in the south are considering setting up their own manufacturing units to meet their bulk needs at lower costs.

A few key members of a committee, comprising hundreds of property developers and infrastructure firms, said they were thinking of jointly buying one of the distressed cement factories in the south and deploying the latest technologies to bring down operational costs.

The factory will operate on a cooperat ive model , they said. “Some of our joint action committee members have come up with this idea to overcome the abnormal price hikes by cartelised cement manufacturers,” said C Shekar Reddy, nat ional president of real estate developers’ body Credai.

Reddy said several builders and realtors conveyed their willingness to invest Rs 10 crore each for the proposed facility, which could have a capacity of 1-3 million tons and

cost Rs 500-1,500 crore. Nearly 80 per cent of the country’s large builders hail from Andhra Pradesh and Telangana.

The cement industry in the south grew at a mere 1 per cent compounded annual growth rate from April 2010 to March 2014, compared with 6 per cent across the country. The weak growth in the south was mainly due to a political unrest in Andhra Pradesh.

August 11-17, 2014 11internAtionAl

UK cities unveil £15 b plan to improve transport

Five major cities in the north of England have unveiled £15 billion plan to boost road and rail infrastructure in the region, under the One North plan. The One North Consortium, which comprises the city regions of Liverpool, Manchester, Leeds, Sheffield and Newcastle have outlined a 15-year investment, aimed to boost connectivity between cities across the

north, including a new east-west line across the Pennines.

It complements the HS2 proposals and includes proposals to increase road capacity for both freight and personal travel through extended managed motorways; improve regional rail networks; new rolling stock, electrification of existing lines, higher service frequencies and

addressing pinch-points on the rail network.

The plan also includes improved access to enable efficient freight movements by rail, road and water inc luding ports, ra i l l inks and distribution centres; building HS2; and improve east/west rail freight capability across the Pennines, linking major ports to north/south rail routes.

atkins designs ‘Window of Guangzhou’ in China

Ferrovial consortium bags expressway in Poland

Atkins has completed the design of an office development called ‘Window of Guangzhou’ in Guangzhou, one of China’s biggest cities. It is Atkins’ first architecture project for CCCC following a memorandum of understanding for a global strategic cooperation between the firms signed in April this year.

Under the contract, Atkins provided architecture services from concept through to extended preliminary design stage for the new ‘Window of Guangzhou’ development. It is due to be completed in 2018, and consists of three stand-alone office

A consortium comprising Ferrovial Agroman subsidiary Budimex and Germany-based Heilit+Woerner has secured a contract to build a 15 km section of Expressway S5 between Wroclaw and Korzensko in south-west Poland.

Work under the contract involves upgrading adjacent roads, as well as the construction of two new junctions, 11 bridges and service areas. The

buildings which will house high-end office space.

Of the three buildings, two are said to resemble floating windows, while the third tower stands at 208 m tall. From a distance the development is meant to read as ‘001’, a symbolic reference to Guangzhou being the first Chinese city to open for international trade on the ancient Silk Road. Atkins’ senior design director KY Cheung said, “Our design provides a dramatic visual impact, ensuring that the breathtaking view of the Zhujiang River is maximized for occupants and the community behind the project as well.”

project is worth 113 million and is set to be completed in two and a half years.

Upon completion, Expressway S5 will connect Wroclaw with Poznan, providing a direct link between south-west Poland and the port city of Gdansk via the junction with the A1 motorway. The Polish government has approved a road plan for 2014-2017 with a budget of roughly 8.5 billion.

Kenya signs $478 m deal with China firm for lamu Port

Hill International to renovate terminal at Cairo airport

Acciona Ferrovial JV to design Pacific Highway in australia

The Kenya Ports Authority has signed KES42 billion ($478 million) contract with China Communication C o n s t r u c t i o n C o m p a n y f o r development of the first three berths of Lamu Port. The contract is a part of the $24billion Lamu Port-South Sudan-Ethiopia Transport corridor that includes construction of 29 berths.

The signing of the agreement was attended by President Uhuru Kenyatta and Deputy President William Ruto along with other Lamu

U S e n g i n e e r i n g f i r m H i l l International has secured a contract to manage the terminal renovations project at Cairo international airport in Egypt. Awarded by the Cairo Airport Company, the contract forms a part of a $500 million project that includes the renovation of the existing

Acciona Ferrovial joint venture has been awarded a contract for the design and construction of the Pacific Highway duplication between Warrell Creek and Nambucca Heads in

leaders. The construction is expected to commence in September 2015.

Kenyatta said the commencement of the project reinforces government’s resolve to make infrastructure a key facilitator of its social and economic development. “The signing of this contract is a major milestone in delivering the LAPSSET Corridor Program as well as achieving Kenya’s Vision 2030,” added Kenyatta.

“The construction of the first three berths will present a strong case and trigger for participation of

terminal building, as well as the construction of a new departure hall and airside pier. Under the contract, Hill International will provide project management consultancy services associated with the renovation and development of Terminal 2 over the next 15 months.

Australia. The 20 km Warrell Creek to Nambucca Heads upgrade will make it a four-lane divided road between the Allgomera deviation, south of Warrell Creek and Nambucca Heads.

the private sector in construction of the remaining 29 berths and other components of the corridor.”

The President also added that the Ministry of Transport will conclude the inter-governmental agreement for development and operation of the transport corridor with South Sudan. As per the plans, the port is estimated to manage some 24 million tons of cargo a year from giant container ships, besides providing infrastructure to support oil discoveries in Kenya’s arid north.

Hil l International Senior Vice President Waleed Abdel Fattah said, “This project will have a very positive impact on business, tourism and the overall economy. Upon completion of the renovations, Terminal 2 will handle approximately 7.5 million passengers per year.

The project is jointly funded 80:20 by the federal and state governments, respectively. Australia Deputy Prime Minister and Minister for Infrastructure & Regional Development Warren Truss said this is the latest installment in the coalition government’s $5.64 billion commitment to duplicate the Pacific Highway from Sydney to the Queensland border.

The joint venture was announced as the preferred tenderer in April and with the contract now signed, detailed design work and site preparation is already underway. The Pacific Highway is a top priority for the new coalition government.

“That’s why we have pumped an extra $2.1 billion into the Pacific Highway to give commuters the safer, more reliable and easier journey they deserve and ensure this vital freight route is up to the task ahead,” Truss added. Construction of the major work is scheduled to start in the second half of this year.

MNC Infrastruktur Utama to begin Ciawi-Sukabumi toll road in Indonesia

MNC Infrastruktur Utama, a part of the MNC Group conglomerate, will commence the construction of the first phase of the 54 km long Ciawi-Sukabumi toll road in West Java, Indonesia.

The total investment needed for the first phase reached $172.71million. Half of the required funds will be taken from our internal cash, and the rest will be funded by bank loans. The toll road will be built in four sections: Section I Ciawi-Cigombong (15 km), section II Cigombong-Cibadak (12 km), Section III-Sukabumi Cibadak West (14 km), and section IV Sukabumi West-East Sukabumi (13 km). The highway will be through four areas in Bogor, Bogor, Sukabumi and Sukabumi District. Upon completion, the road is expected to ease traffic congestion along the route actively used for logistics distribution.

Thailand okays $75 b transport upgrade planThailand's transport infrastructure is all set to undergo transformation

over the next eight years, following the approval of a $75 billion master plan by the country's ruling military. The upgrade work will also see the extension of elevated train lines in Bangkok and the metropolitan area, increasing the capacity of airport and seaport improvements. Previous governments also proposed plans to improve the ageing rail and road links in the country, but these were put on hold due to frequent changes of governments.

August 11-17, 2014 12

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events

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eventsAugust 15-17, 2014

BACE Expo (Building Architectural Construction & Engineering Symposium & Trade Show)Milan Mela Ground, Kolkata BACE Expo will be held for three consecutive days at Milan Mela Complex, Kolkata. The key industry players and market leaders will discuss about modern tools and technology associated with the building and construction sector. Participants will discuss about growth of the real estate sector and build strategic business alliances with manufacturers and dealers. The prospects of some of the major construction projects in Kolkata will be highlighted. Some of the products that will be displayed include ceramic and stones, elevators, escalators, bath and sanitation. Contact: Ask Trade & Exhibitions Pvt Ltd, Flat 307, Alsa Towns Ville,170/38 Arcot Road, Valasaravakkam, Chennai

August 15-18, 2014Construction Architecture & Interior ChennaiChennai Trade Centre, ChennaiThe show is a 4-day event being held from August 15 to 18, 2014 in Chennai. This event showcases various products and services as well as equipment related to construction, architectural firms and interior design, latest designs and technologies and more in Building Construction, Architecture & Interior Designing. Contact: I ads and events Pte Ltd, 61, 1st Floor, Gold Towers, 50 Residency Road, Bengaluru.

September 11-13, 2014The Big 5 Construct IndiaBombay Convention Centre, MumbaiIt will provide the ideal platform for influential architects, contractors, consultants and engineers to share ideas about innovative construction tools and services. Contact: DMG: Events. PO Box No 33817 Dubai, UAE

October 4, 201419th One Full Day WorkshopThe Institution of Engineers (India), Mahalaxmi, Mumbai Workshop on Jirnoddhara of RCC buildings which contains Structural Audit, Upgrading (House - Keeping, Regular Maintenance, Repairs, Rehabilitation); Fixing Leakage and Waterproofing of existing RCC buildings and a total new concept to construct RCC durable buildings without leakage with practicals on acrylic polymer-based flexible membrane waterproofing system. Contact: Jayakumar Jivraj Shah, Single Faculty Course Conductor, 203, Wing-B, Lakshmi Apartments, Corporation Bank Building, Behind Anand Nagar, Dahisar (East), Mumbai 400068. Cell: 919819242649 Phone: 28483541/9819242649 jjshah123123@rediffmail.com The Institution of Engineers (India), Mahalaxmi, Mumbai Phones: 022-23543650/23542943 Mobile: 09820392726

December 4-6, 2014Ceramics AsiaGujarat University Exhibition Hall, Ahmedabad This event will be organized to enhance that potential by bringing industry professionals from different corners of the world under one roof. Ceramics Asia is going to be organized for three days at the Gujarat University Exhibition Center in Ahmedabad Contact: Unifair Exhibition Service Co. Ltd, Room 802-804, Daxin Building, 538 Dezheng North Road Guangzhou, China

December 15-18, 2014bC India ShowIndia Expo Centre and Mart, Greater Noida The International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles-provides the international construction industry with a professional platform for the construction industry. Contact: B C Expo India Pvt Ltd, Lalani Aura, 5th Floor, 34th Road, Khar (West), Mumbai

IZa’s first galvanizing conference in India

In association with Hindustan Zinc Ltd, the International Zinc Association ( IZA) o rgan ized a success fu l conference on hot dip and continuous galvanizing in New Delhi recently, which was attended by more than 250 delegates from India, Asia, Europe and North America.

The two-day conference provided an overview of the global and Indian

galvanizing market, highlighted technology and market t rends and looked at the challenges and potential of galvanizing in automotive, construction and innovative market segments in India.

Speakers included national and international experts from the zinc and galvanizing industries, business consultants and decision makers of

national automotive and construction industries and Vishnu Deo Sai, the State Minister for Steel, Mines, Labour and Employment.

Sai emphasized the necessity of galvanized steel in the infrastructure development of the country and reiterated the fact that when foreign countries in Europe, America and even in Asia are using galvanized steel in all

the steel industry reflects the financial strength of the country.

“We in India are self-sufficient in zinc and steel production; however, we are not able to capitalize on this potential. We have to enhance this potential and develop quality steel to give impetus to infrastructure development,” he said.

“Our industrial development should be inclusive of people development. Apart from the basic necessities like food, clothing and shelter of the residents of industrial areas, ensuring their education, health, employment and economic growth should also be the responsibility of the industrialists,” added Sai.

the development of the country is incomplete.

Other prominent speakers like Stephan Wilkinson, Executive Director, IZA, spoke on sustainability aspects of zinc as the utility of zinc is not only limited to provide protection to steel against corrosion but it is also an important micronutrient for humans and crops.

Zinc helps in avoiding deaths of infants and children due to diarrhoea which is the second biggest killer of infants in India after pneumonia.

Suni l Duggal , Deputy CEO, Hindustan Zinc Ltd, stated that the zinc industry in India is well equipped to supply increased quantum of zinc to the steel industry as the country’s zinc production is in line with the planned the steel industry capacity expansion.

T Venugopalan, Chief Operating Officer, Tata Steel, shared his views on technology development, capacity addition in the steel sector and steel growth as the main driver for industrial growth of the country.

The two-day conference had participation from galvanized steel users like the Indian Railways, CPWD, DMRC, IRCON, the Airport Authority, the Central Road Research Institute, the Power Corporations.

Supplier companies included steel, zinc, galvanized products and equipment suppliers like Tata Steel, Jindal India, JSW Steel, Bhushan Power & Steel, Valmont Structures, APL Apollo Tubes, Asian Color Coated Ispat, Shilpa Steel & Power, KEC International, Steelco Gujarat, Skipper, etc, among others.

of their infrastructure, in India it is still being used selectively which is resulting in huge financial losses because of rusting of non-galvanized steel.

“Rusting of steel not only reduces structure’s life but also makes it unsafe for use and poses a serious threat to safety of users,” said Sai.

The situation in India is strange as India is the fourth largest country in zinc production and third largest country in steel production, but in terms of using zinc coated steel the country is at the bottom of the pyramid.

Steel is the basic necessity for development and development of

All minerals like iron, coal, copper and mica are found in interior and forested areas; however, the people of these areas are backward socially and economically even now.

Sai called upon the industrial community that they should ensure sustainable development of people of such areas. Without their development,

Rahul Sharma, Director (India), IZA; Sunil Duggal, Dy CEO , Hindustan Zinc Ltd; Vishu Deo Sai, Union Minister of State for Steel, Mines, Labour & Employment; Stephen Wilkinson, ED, IZA; Dr T Venugopalan, CTO, Tata Steel; and Dr Frank Goodwin, Global Director, IZA

Deepak Thukral, Maruti Suzuki India; Kenneth Desouza, IZA (Canada); Rajesh Mohata, HZL; Avtar Singh, Tata Steel; and Dr Frank Goodwin, IZA (USA)