Saheel ITREND Futura At Baner Annexe Pune - PDF.pdf
Construction Industry Review 17-2014
1. April 28 - May 05, 2014 1
Volume 3 l Issue No 17 l April 28 - May 04, 2014 l Price: Rs 100An MMR, Braj Binani Group Publication
Projects hit as Centre fails
to notify rules under LAA
becameeffectiveonJanuary1thisyear.
However, no land has been acquired
so far for public purpose under the new
law because of ambiguity in rules.
“The Act, in its present form, is
absurd. There is a need to rethink
the Act and we will work with the new
government to make the Act beneficial
for both the seller and developer,”
said RV Kanoria, Chairman of Ficci
task force on land reforms and policy.
He added that the law is disastrous
for industry as the time frame for
acquisition is as high as over 50
months, by which time projects will
undergo huge cost escalation.
The CII (Confederation of Indian
Industry) has voiced similar concerns,
besides emphasizing on simplification
of procedures. “It is important to look
at simplification of overall processes
as laid down in the Act to reduce
the time required for acquisition of
land from the currently stipulated 56
months to a minimum of two years,”
said CII Director-General Chandrajit
Banerjee.
AccordingtotheCII,landacquisition
is likely to cost 3-3.5 times more and
rehabilitation and resettlement costs
are also likely to go up by about three
times, a concern that is shared by
some government officials.
The Department of Industrial Policy
& Promotion (Dipp) Secretary Amitabh
Kant has criticized the new Act,
Development projects continue to
be stalled since the Centre has failed
to notify the rules to implement the
law – almost four months have passed
by since the new Land Acquisition Act
came into force. Industry chambers
such as the CII and Ficci are now
looking forward to the next government
to speedily finalize the rules and make
some amendments in the existing
provisions to ensure that the new
law does not impede infrastructure
development and industrialization.
The Right to Fair Compensation
& Transparency in Land Acquisition,
Rehabilitation & Resettlement
Act, which was pushed by Rural
Development Minister Jairam Ramesh,
resettlement and rehabilitation.
The most important feature of the
law is that it requires developers to
get the consent of up to 80 per cent of
the people whose land is acquired for
private projects and of 70 per cent of
the landowners in the case of public-
private partnerships projects. These
include land acquisition under public
purpose for industrial corridors and
the National Investment Manufacturing
Zone.
However, industry strongly feels
that manufacturing projects should
also be included in the definition of
public purpose to facilitate setting up
of large projects such as steel and
cement plants, etc.
Smaller private real estate fund
managers outperform larger
counterparts
Infra loans emerge as biggest
stress point for banks
A new study from the research
firm Preqin demonstrates that
despite a greater concentration of
capital being raised among larger
private real estate funds in recent
years, smaller funds have often
outperformed larger funds.
Funds of $1 billion or more in
size raised 56 per cent of the total
capital raised in 2013, compared to
29 per cent of capital the year before,
despite the relative outperformance
of smaller funds in recent years.
The heightened risk that often
accompanies an investment in
these vehicles, however, is likely to
account for the low levels of current
investment in smaller managers.
With regard to experience,
emerging managers on average have
outperformed their more experienced
counterparts for the entire period
since the financial crisis. The PreqIn
Real Estate Index, which captures the
average returns earned by investors
in their private real estate portfolios,
demonstrates that since December
2007, the index of first- or second-
The asset quality of bank loans
to infrastructure developers is
deteriorating at a faster pace than
that of loans advanced to any other
sector, underlining the challenge the
next government will face in reviving
investment and kick-starting stalled
projects.
As of March 31, banks had
restructured Rs 50, 239 crore of loans
they had given to the infrastructure
sector—21 per cent of all loans they
recast in the last fiscal year under the
so-called corporate debt restructuring
(CDR) mechanism.
Restructured loans to public works
projects swelled from Rs 21, 912
crore (9.57 per cent of the total) in the
previous year and Rs 16, 774 crore
(11.14 per cent) in the year before
that. A slump in economic growth to
the slowest pace in a decade, coupled
with delayed project approvals such
as environment and forest clearances,
problems in land acquisition and high
borrowing costs have hit developers
of long-gestation and capital-intensive
infrastructure projects particularly
hard.
Banks are now hoping that the new
government that emerges from the
April-May general elections will speed
up clearances for troubled projects,
and that RBI will allow a longer
repayment period for infrastructure
projects. Typically, infrastructure loans
are given for a period of five to seven
years, but bankers said many projects
take longer to get commissioned, after
securing approvals, and generate
cash flows.
“Banks have restructured
infrastructure loans with the hope that
policy actions will be corrected. If that
doesn’t happen, a serious problem
can emerge,” said Sushil Muhnot,
Chairman & Managing Director of
state-run Bank of Maharashtra.
Experts warn of more pain emerging
from the segment before the worst
is over. About 40 per cent of total
time funds exceeds the returns
generated by other funds.
According to Preqin, for every
vintage year between 2005 and 2009,
real estate funds of less than $500
million have posted higher median net
IRRs than funds of $1billion or more in
size. For funds of 2000-2011 vintage
years, 55 per cent of funds less than
$500 million in size have exceeded
the median performance benchmark,
compared to only 44 per cent of funds
of $1billion or more in size.
Larger funds are generally less
risky and perform closer to the
median benchmark than smaller
funds; the net IRRs of 2005-2011
vintage funds of $1 billion or more
in size have a standard deviation of
15.5 per cent, compared to 18.3 per
cent for funds that are less than $500
million in size.
The first- and second-time fund
managers have posted a median
net IRR of 5.8 per cent for funds
of vintage years 2005 to 2011,
compared with 4.9 per cent for
managers that manage between
three and seven funds,
said the research
firm.
infrastructure loans are likely to be
restructured by March 2015 as against
20 per cent in March 2013, said rating
agency India Ratings & Research
Pvt Ltd.
The deteriorating asset quality of
infrastructure loans also highlights
the constraints India faces in filling
an estimated $1 trillion funding gap
for building roads, ports and power
projects in the 12th Five-Year Plan
(2012-17). Unlike in developed
markets, where long-term investors
such as pension funds are active
participants in infrastructure funding,
in India the burden mostly falls on
commercial banks.
In recent times, conglomerates
like Tata group, Aditya Birla Group,
Piramal Group and Larsen & Toubro
Ltd have initiated investments in
the infrastructure sector, either
directly or through infrastructure debt
funds, but such ventures can only
help partly, given the huge funding
requirements.
Banks are struggling to meet
this demand because most of
their deposits are short-term, while
infrastructure projects are typically
long-gestation in nature, resulting in
asset-liability mismatches.
Besides hampering banks’ ability to
fund infrastructure projects further, the
rising stress in loans to the segment
could lead to a larger problem in the
banking sector, necessitating special
measures from the regulators, bankers
warn.
Under the RBI norms, banks need
to set aside 5 per cent of the loan
value when they restructure a new loan
as against 0.4 per cent provisioning
required for a standard loan. Banks
typically prefer to recast loans because
if the loan turns bad, the provisioning
requirement shoots up manifold.
Provisioning for bad loans can go up
to anywhere between 25 per cent and
100 per cent of loan value, depending
on the nature of the asset.
Managers that manage eight
or more funds have a standard
deviation of net IRRs of 21.0 per
cent, compared to 18.1 per cent for
first- and second-time managers,
suggesting that experience does not
necessarily bring about consistent
performance.
Just 7 per cent of capital raised in
2013 was by first-time fund managers,
compared to 12 per cent in 2012
and 18 per cent in 2011. There
are 135 first-time real estate fund
managers in market raising a fund,
targeting an aggregate $27 billion.
This compares to 77 managers
that have previously raised eight or
more funds seeking an aggregate
$62 billion. Andrew Moylan, Head
of Real Assets Products, Preqin,
said, “Smaller private real estate
funds have frequently outperformed
larger offerings in recent years, with
newer firms also more likely to have
outperformed their more established
counterparts.
“There are likely to be many
reasons for this, with smaller
managers potentially more nimble
when making investments and newer
firms more motivated to prove their
worth. Recent fundraising data
shows the largest players have
accounted for a growing proportion
of all private equity real estate capital
being raised.
“Many large, established players
do have strong track records, and
often institutional investors are
looking to invest with managers
that have evidence of generating
consistent returns. However,
those institutional investors that
have the skill and resources
to seek out attractive emerging
managers have the potential to be
rewarded for doing so.”
saying that it has become “virtually
impossible” to acquire land for
construction of roads, ports and
creating other infrastructure under
the new law.
“Land acquisition for roads, ports
and similar other economic activities
has not been happening ever since the
new Land Acquisition Act came into
being,” said Kant, emphasizing the
need for amendment to the Act.
The law, passed during the
monsoon session of Parliament
last year, received the President’s
assent on September 27, 2013.
It replaced the Land Acquisition
Act of 1894 by establishing new
rules for compensation as well as
2. April 28 - May 05, 2014 2building materials
Import: Cement, Cement Products & Building Materials
Date Product Description Port Code Foreign Port Quantity (Kgs) Value (Kgs) CIF Rate
Refractory bricks, blocks & tiles
1/1/2014 CERAMIC MUM CHINA 27706 2244006.38 81.0
1/4/2014 ALUMINA LINING BRICK JNP CHINA 153000 4989055.6 32.6
1/4/2014 ANKERTAR CHN AUSTRIA 7000 286830.56 40.98
1/4/2014 AOD LINING BRICKS AHM GERMANY 93851.1 4370878.35 46.6
1/4/2014 BRICKS TRL SIC VIZ CHINA 144848.4 17910532.04 123.7
1/4/2014 BROKEN REFRACTORY TILES KOL MALAYSIA 48134 702024.53 14.58
1/4/2014 CONVERTER REFRACTORIES CHN AUSTRIA 4500 174530.05 38.78
1/4/2014 HASLE D59A DENSE CASTABLE JNP DENMARK 15000 1470570.04 98.04
1/4/2014 HIGH ALUMINARE FRACTORY BRICK PIP SPAIN 80104 5692517.18 71.1
1/4/2014 HIGH BURNT BRICKS JNP GERMANY 140395 12163154.91 86.6
1/5/2014 HIGH BURNT PERICLASE SPINEL-BRICKS JNP GERMANY 19541 1803524.58 92.3
1/5/2014 MAGNESIA CARBON BRICKS KOL CHINA 82070 10778270.64 131.3
1/5/2014 MAGNESIA DOLOMITE BRICK AHM CHINA 696887.9 31552864.02 45.3
1/5/2014 MAGNESIA REFRACTORY BRICKS CHN AUSTRIA 422201 25990764.07 61.6
1/5/2014 MAGNESITE SPINEL BRICKS JNP CHINA 592621.8 22172778.48 37.4
1/5/2014 REFRACTORIES BRICKS KOL AUSTRIA 442.6 32545492.49 73532.5
1/5/2014 REFRACTORY JNP GERMANY 636.86 784172.43 1231.31
1/6/2014 REFRACTORY CHN CHINA 484117.23 25508156.91 52.7
1/6/2014 REFRACTORY BRICK JNP AUSTRIA 3456 3461406.91 1001.56
1/6/2014 REFRACTORY BRICK JNP GERMANY 6177 316394.45 51.22
1/6/2014 REFRACTORY BRICK JNP GERMANY 5156 264097.14 51.22
1/6/2014 REFRACTORY BRICK LUD CHINA 104057.6 2682077.84 25.8
1/6/2014 REFRACTORY BRICK JNP GERMANY 149998 7683097.42 51.2
1/8/2014 REFRACTORY BRICK AHM CHINA 50582.3 2119232.76 41.9
1/11/2014 REFRACTORY BRICK JNP GERMANY 1177 109084.34 92.68
1/12/2014 REFRACTORY BRICK JNP GERMANY 5162 478414.84 92.68
1/12/2014 REFRACTORY BRICK JNP CHINA 980109.3 74431278.71 75.9
1/12/2014 REFRACTORY - FLOATING PARTICLE BRICK KOL CHINA 881088.54 30853885.25 35.0
1/12/2014 REFRACTORY - SILICA BRICK KOL CHINA 343022.1 13748676.53 40.1
1/12/2014 REFRACTORY BRICKS JNP GERMANY 285337 24624769.78 86.3
1/12/2014 REFRACTORY BRICKS JNP CHINA 44779 2932854.13 65.5
1/16/2014 REFRACTORY BRICKS JNP AUSTRIA 7200 343291.68 47.68
1/16/2014 REFRACTORY BRICKS JNP AUSTRIA 2400 145348.13 60.56
1/18/2014 REFRACTORY BRICKS DAR GERMANY 14413 5981629.96 415.0
1/18/2014 REFRACTORY BRICKS DAR GERMANY 96209.9 8063839.46 83.8
1/18/2014 REFRACTORY BRICKS JNP CHINA 32120 1592894.8 49.6
1/18/2014 REFRACTORY BRICKS JNP ITALY 9734.4 2575304.51 264.56
1/18/2014 REFRACTORY BRICKS JNP ITALY 5880 1450099.15 246.62
1/18/2014 REFRACTORY CULLET CHN JAPAN 10000 1292064.63 129.21
1/18/2014 REFRACTORY FOR STEEL KOL JAPAN 93 10183.25 109.5
1/19/2014 REFRACTORY FOR STEEL MAKING POROUS KOL JAPAN 50 20367.21 407.34
1/20/2014 REFRACTORY MAGNESIA CARBON BRICKS KOL CHINA 4327577.96 217039532.9 50.2
1/27/2014 REFRACTORY MATERIAL JNP GERMANY 1800 717478.25 398.6
1/27/2014 REFRACTORY MATERIAL BRICKS GUR CHINA 497920 19461401.98 39.1
1/27/2014 REFRACTORY MATERIAL BRICKS GUR GERMANY 121449.98 5278690.79 43.5
1/27/2014 REFRACTORY MATERIAL BRICKS JNP CHINA 23970 1292302.58 53.9
1/27/2014 REFRACTORY MATERIAL MAGNESITE BRICKS JNP CHINA 95210 2899194.89 30.5
1/27/2014 REFRACTORY MATERIALS JNP U K 6000 95001.67 15.83
1/27/2014 REFRCTORY - EXPANDED PEARLITE BRICK KOL CHINA 11000 950180 86.38
1/27/2014 SPECIAL HIGH-ALUMINA BRICKS JNP SPAIN 20566 2286119.33 111.2
1/28/2014 TORPEDO LADLE BRICKS JNP CHINA 19101.3 1281110.03 67.1
Total 11175854.27 637621428.6 57.1
Other refractory ceramic goods
1/5/2014 BRICK MARK JNP CHINA 304997.56 13308135.41 43.6
1/5/2014 CERAMIC REFRACTORY JNP ITALY 2998.8 917628.25 306
1/5/2014 GRAPHITE CRUCIBLE JNP UAE 39 24981.14 640.54
1/5/2014 GRAPHITE POWDER CHN FRANCE 50 176371.25 3527.43
1/5/2014 REFRACTORIES JNP CHINA 5552 312451.77 56.28
1/5/2014 LADLE PURGING REFRACTORIES JNP AUSTRIA 2136 948131.44 443.9
1/5/2014 REFRACTORIES JNP CHINA 4243 166714.7 39.29
1/5/2014 REFRACTORIES JNP CHINA 5110 282698.04 55.32
1/5/2014 REFRACTORY MATERIALS KOL CHINA 3220 658761.77 204.6
1/8/2014 REFRACTORY MATERIALS KOL POLAND 1218 697337.58 572.53
1/8/2014 REFRACTORY MATERIALS KOL POLAND 7610 4197860.3 551.62
1/8/2014 REFRACTORY MATERIALS KOL GERMANY 728 872420.72 1198.38011
1/8/2014 REFRACTORY MATERIALS KOL ITALY 2030 1153169.5 568.1
1/8/2014 REFRACTORY MATERIALS KOL CHINA 15871 3092113.43 194.8
1/8/2014 SPHERICAL CERAMIC SAND JNP JAPAN 40000 1964862.08 49.1
1/12/2014 SILICON CARBIDE JNP CHINA 183.15 180935.69 987.9
1/12/2014 REFRACTORY CERAMIC KOL CZECH. 1064 404764.01 380.42
1/12/2014 REFRACTORY CERAMIC GOODS KOL USA 711.07 1066221.87 1499.5
1/12/2014 REFRACTORY CERAMIC GOODS JNP GERMANY 2997 1658882.4 553.51
1/12/2014 REFRACTORY SHEETS MUM USA 30 610144.76 20338.16
1/14/2014 REFRACTORY MATERIALS KOL GERMANY 1967 534862.5 271.9
1/14/2014 SILICA (SAND) CHN USA 14550.36 366132.29 25.16
1/14/2014 REFRACTORY MATERIALS KOL POLAND 5176 1692857.83 327.1
1/14/2014 CERAMIC FIBER JNP CHINA 56381 2146438.9 38.1
1/14/2014 CERAMIC FIBER KOL THAILAND 3.94 4192.71 1064.14
1/14/2014 REFRACTORY CERAMIC CHN CHINA 12846.5 1291174.65 100.5
1/14/2014 REFRACTORY MATERIAL JNP U K 2625 241764.57 92.1
1/14/2014 REFRACTORY MATERIAL KOL CHINA 11947.49 1127246.8 94.4
1/14/2014 REFRACTORY MATERIAL KOL GERMANY 2539 308271.41 121.41
1/14/2014 CASTABLES CHN JAPAN 10000 356855.95 35.69
1/14/2014 CERAMIC (REFRACTORY) JNP CZECH. 23110 8897810.64 385.0
1/14/2014 CERAMIC JNP GERMANY 975 402155.56 412.47
1/14/2014 CERAMIC JNP CHINA 9178 1886904.04 205.6
1/14/2014 CERAMIC FIBRE JNP U K 2496 744914.97 298.44
1/19/2014 REFRACTORY MATERIALS KOL AUSTRIA 1387 247268.53 178.3
1/19/2014 REFRACTORY MATERIAL VIZ GERMANY 21736 5992190.67 275.68
1/19/2014 REFRACTORY ITEMS MUM U K 166 177221.75 1067.6
1/19/2014 REFRACTORY CERAMIC GOODS JNP CHINA 1410 172412.54 122.28
1/19/2014 REFRACTORY CERAMIC GOODS JNP CHINA 1170 146043.6 124.82
1/19/2014 REFRACTORY CERAMIC GOODS KOL GERMANY 2157 1176956.11 545.64
1/19/2014 REFRACTORY CERAMIC GOODS JNP GERMANY 1803 870776.5 482.96
1/25/2014 REFRACTORY CERAMIC GOODS JNP CHINA 18696.4 3283090.64 175.6
1/25/2014 REFRACTORY CERAMIC GOODS TUG USA 26455.2 2523398.42 95.38
1/25/2014 REFRACTORY CERAMIC GOODS TUG USA 13227.6 1261699.22 95.38
1/25/2014 REFRACTORY CERAMIC GOODS KOL U K 247.3 182405.67 737.59
1/25/2014 REFRACTORY CERAMIC GOODS KOL U K 18.7 13792.3 737.56
1/25/2014 REFRACTORY CERAMIC GOODS KOL GERMANY 34397 8012893.89 232.95
Total 677455.07 76756318.77 113.3
Tiles
1/15/2014 ACOUSTIC CEILING TILES JNP USA 765 43423.62 56.76
1/15/2014 ACOUSTIC CEILING TILES JNP USA 108 61303.96 567.63
1/18/2014 CONNECTOR ROOF TILES JNP GERMANY 21185 531996.16 25.1
1/18/2014 MONIER PLANO TILES BAN MALAYSIA 53 4597.45 86.7
1/25/2014 RED VERTICAL RIGHT EDGE(ROOF TILE) JNP SPAIN 59215.95 975985.32 16.5
1/25/2014 ROOFING TILES JNP FRANCE 65853.6 2703353.69 41.1
1/25/2014 SPANISH TILE JNP USA 112860 2845597.71 25.2
1/25/2014 SPANISH TILE JNP USA 4248 148476.53 35.0
Total 264288.55 7314734.44 27.7
Tiles
1/12/2014 VITRIFIED TILES JNP CHINA 1009800 510276.22 0.5
1/20/2014 VITRIFIED TILES TUT ITALY 94 184849.34 1966.48
1/27/2014 CERAMIC TILES MUN SPAIN 104 1538.13 14.79
Total 1009998 696663.69 0.7
Ceramic wares
1/5/2014 CERAMIC MATERIAL JNP USA 226.8 106127.55 467.93
1/5/2014 CERAMIC CYLINDRICAL JNP GERMANY 574.9 2248107.49 3910.4
1/5/2014 FOAM CERAMIC FILTER JNP CHINA 94473.07 4467899.56 47.3
1/5/2014 SANITARY FITTING JNP THAILAND 0.02 653.33 32666.5
1/19/2014 CERAMIC BALLS JNP GERMANY 6600 489341.12 74.14
1/19/2014 CERAMIC POT JNP CHINA 5878 648512.43 110.3
1/10/2014 CERAMIC WARES MUM USA 6.8 7188.68 1057.16
1/10/2014 CERAMIC BEADS MUM JAPAN 40 503299.16 12582.48
1/10/2014 CERAMIC CUTTER BAN SINGAPORE 11.27 1391.24 123.45
1/10/2014 CERAMIC BALLS MUL DENMARK 15132.5 1908776.29 126.1
1/16/2014 SILICON CARBIDE JNP CHINA 171 172904.94 1011.14
1/16/2014 CERAMIC CARTRIDGE (SANITARY WARE) JNP SPAIN 259.84 392581.49 1510.86
1/16/2014 CERAMIC CARTRIDGE ( SANITARY WARE) JNP SPAIN 296.96 448664.56 1510.86
1/16/2014 CEARMIC WARE GUR CHINA 170755.94 6283976.2 36.8
1/16/2014 SETTLING SET FOR CERAMIC MEDIA DEL ITALY 10 6564.42 656.44
1/16/2014 CERAMIC CHN KOREA 700 203265.33 290.38
Total 295137.1 17889253.79 60.6
Date Product Description Port Code Foreign Port Quantity (Kgs) Value (Kgs) CIF Rate
Ceramic sinks
1/1/2014 SANITARYWARE & FITTINGS JNP GERMANY 396.01 358020.64 904.1
1/1/2014 SANITARYWARE JNP HUNGARY 713 207429.92 290.93
1/1/2014 SANITARYWARE JNP HUNGARY 1995 563035.81 282.22
1/1/2014 WHITE CERAMIC BASIN JNP CHINA 640 70461.02 110.1
1/1/2014 WHITE CERAMIC BASIN JNP CHINA 1586.86 200754.34 126.5
1/4/2014 PANACHE WASH BASIN JNP THAILAND 6429.16 731369.09 113.8
1/4/2014 WHITE CERAMIC BASIN JNP CHINA 6554.87 848983.19 129.5
1/4/2014 WHITE CERAMIC BASIN JNP CHINA 1610.9 293333.98 182.1
1/4/2014 IRON/ IMPRESSIONS JNP USA 134.57 33874.76 251.7
1/4/2014 CERAMIC BASIN JNP CHINA 100 7451.2 74.51
1/6/2014 TOILET W/SEAT JNP USA 1581.82 336549.06 212.76
1/6/2014 CERAMIC BASIN JNP THAILAND 533.6 80652.85 151.15
1/6/2014 CERAMIC BASIN JNP CHINA 102.5 8521.13 83.13
1/6/2014 CERAMIC BASIN JNP CHINA 150 12574.35 83.83
1/6/2014 WASHBASIN JNP USA 123.4 26952.35 218.41
1/10/2014 WASHBASIN JNP HUNGARY 1505.5 302438.69 200.9
1/10/2014 CERAMIC BASIN JNP CHINA 3409 414211.79 121.5
1/10/2014 CERAMIC SANITARYWARE JNP CHINA 11333.9 1175234.95 103.7
1/10/2014 SANITARYWARE & FITTINGS JNP GERMANY 14 12041.36 860.1
1/10/2014 SANITARYWARE & FITTINGS JNP GERMANY 58 43369.99 747.76
1/11/2014 WHITE CERAMIC BASIN JNP CHINA 60 6846.44 114.11
1/11/2014 KATAGAMI JNP USA 12.73 40165.37 3155.17
1/11/2014 WASHBASIN JNP CHINA 23391.2 2497996.79 106.8
1/11/2014 COMPLETE SET TOILET WT-5 SET JNP THAILAND 283 71686.06 253.31
1/11/2014 COMPLETE SET TOILET WT-5 SET JNP THAILAND 452.8 115442.41 254.95
1/11/2014 TOTO SANITARY WARES & FITTINGS JNP INDONESIA 141 15741.04 111.64
1/11/2014 BASIN (CERAMIC) JNP CHINA 270 11529.5 42.7
1/11/2014 TOTO SANITARY WARES & FITTINGS JNP INDONESIA 17 2446.77 143.93
1/11/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 4.17 1488.49 356.95
1/11/2014 CERAMIC SANITARY WARE BASIN JNP CHINA 37.6 5548.05 147.55
1/12/2014 CERAMIC SANITARYWARE JNP MALAYSIA 142 54794.3 385.88
1/12/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 3614.4 353059.33 97.7
1/12/2014 TOTO SANITARY WARES & FITTINGS JNP INDONESIA 21.2 1573.95 74.24
1/12/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 3267 417057.58 127.66
1/12/2014 TOTO SANITARY WARES & FITIINGS JNP CHINA 4350 737480.91 169.54
1/13/2014 TOTO SANITARY WARE & FITTINGS JNP INDONESIA 25107.2 3095632.86 123.3
1/13/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 229.55 68470.47 298.28
1/13/2014 TOTO SANITARY WARES & FITTINGS JNP INDONESIA 2.6 443.73 170.67
1/13/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 1040 147304.22 141.64
1/13/2014 TOTO SANITARY WARES & FITTINGS MUM JAPAN 52 187553.77 3606.8
1/15/2014 TOTO SANITARY WARES & FITTINGS JNP CHINA 24509.5 2407694.26 98.2
1/15/2014 WASH BASIN SANITARY WARE TUG CHINA 7040 499484.22 70.95
1/15/2014 WASH BASIN SANITARY WARE TUG CHINA 6160 591455.2 96.02
1/15/2014 TOTO SANITARY WARES & FITTINGS JNP VIETNAM 2220 249465.43 112.4
1/15/2014 TOTO SANITARY WARES & FITTINGS JNP INDONESIA 4620 421868.99 91.3
1/16/2014 TOTO SANITARY WARES & FITTINGS JNP VIETNAM 2000 271740.2 135.87
1/16/2014 TOTO SANITARY WARES & FITTINGS JNP VIETNAM 1000 231393.44 231.39
1/16/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 425 37689.66 88.68
1/16/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 170 15075.87 88.68
1/16/2014 TOTO SANITARY WARES & FITTINGS JNP INDONESIA 18476.3 3490853.88 188.9
1/19/2014 TOTO SANITARY WARES & FITIINGS JNP CHINA 289.6 95552.87 329.95
1/19/2014 TOTO SANITARY WARES & FITIINGS JNP CHINA 616.5 110736.28 179.62
1/19/2014 TOTO SANITARY WARE & FITTINGS JNP INDONESIA 2507.4 487522.05 194.4
1/19/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 2039 331624.04 162.6
1/19/2014 SANITARY WARE JNP CHINA 76793.98 6262897.88 81.6
1/19/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 150 28716.59 191.44
1/20/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 60 11486.64 191.44
1/20/2014 SANITARY WARE AHM OMAN 7615 833243.76 109.4
1/20/2014 SANITARY WARE JNP CHINA 39398.7 3742125.24 95.0
1/20/2014 SANITARY WARE JNP ITALY 6000 2115161.66 352.5
1/20/2014 SANITARY WARE JNP CHINA 72795.4 5936045.2 81.5
1/22/2014 SANITARY WARE JNP GERMANY 2643 820351.65 310.4
1/22/2014 SANITARYWARE JNP CHINA 67253.95 4636525.7 68.9
1/22/2014 SANITARYWARE PRODUCTS JNP THAILAND 1440 122448.63 85.03
1/22/2014 SANITARYWARE PRODUCTS JNP THAILAND 0.6 329.59 549.32
1/22/2014 SANITARYWARE PRODUCTS JNP CHINA 63 8760.27 139.05
1/23/2014 SANITARYWARE AHM OMAN 693 77578.38 111.95
1/23/2014 SANITARYWARE AHM OMAN 4710 426420.51 90.54
1/23/2014 SANITARYWARE JNP THAILAND 477.44 41955.37 87.88
1/23/2014 SANITARYWARES AHM CHINA 37747.9 2220906.94 58.8
1/23/2014 SANITARYWARES AHM OMAN 37903 3777694.59 99.7
1/25/2014 SANITARYWARES: WASH BASIN AHM CHINA 499172.68 35905761.17 71.9
1/25/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 1342 243775.07 181.7
1/25/2014 TOTO SANITARY WARES & FITTINGS JNP INDONESIA 6.9 688.68 99.81
1/25/2014 TOTO SANITARY WARES & FITTINGS JNP INDONESIA 105 22716.7 216.35
1/25/2014 SANITARY WARE JNP CHINA 5797 381984.71 65.9
1/27/2014 MADE OF CERAMICS JNP GERMANY 437 275557.3 630.57
1/27/2014 TOTO SANITARY WARES & FITTINGS JNP INDONESIA 617.7 60378.48 97.7
1/27/2014 SANITARY WARE JNP CHINA 5775 481599.25 83.4
1/27/2014 TOTO SANITARY WARES & FITTINGS JNP INDONESIA 3186.5 482869.96 151.5
Total 1045725.59 91719658.82 87.7
Ceramic tableware
1/5/2014 CERAMIC BATHROOM SET JNP CHINA 55857.1 5952207.25 106.6
1/5/2014 CERAMIC PLATE JNP CHINA 112 6396.75 57.11
1/5/2014 BATH ROOM SET (CERAMIC) JNP CHINA 2764 186477.18 67.5
1/5/2014 CERAMIC WARE JNP CHINA 12347.5 948732.7 76.8
1/16/2014 SANITARYWARE WASH BASIN JNP ITALY 198 19615 99.07
1/27/2014 SANITARY WARE JNP CHINA 23760.38 1142173.9 48.1
1/27/2014 CERAMIC SNITARY WARE JNP THAILAND 12332.83 1517950.35 123.1
1/27/2014 CERAMIC BATH ROOM SETS JNP CHINA 39778.6 3764949.12 94.6
1/27/2014 CERAMIC CLAY FOR TILE JNP ITALY 82 7391.68 90.14
1/16/2014 CERAMIC SANITARY WARES JNP CHINA 54338.5 3400317.97 62.6
1/16/2014 CERAMIC WARE JNP THAILAND 1612.8 255830.02 158.6
1/16/2014 CERAMIC WARE JNP CHINA 6814 496760 72.9
Total 209997.71 17698801.92 84.3
Ceramic
1/23/2014 CERAMIC YARN KOL CHINA 9414 1146513.73 121.8
1/4/2014 CERAMIC GOODS JNP CZECH. 133.75 30588.64 228.7
1/4/2014 CERAMIC GOODS JNP CZECH. 160 39024.11 243.9
1/4/2014 GLAZED POTS HYD VIETNAM 24000 612816.15 25.53
1/6/2014 HIGH ALUMINA LINING BRICKS MUN CHINA 59200 3989839.73 67.4
1/6/2014 INSULATING STANDARD BRICKS JNP DENMARK 20144.86 1308054.77 64.93
1/10/2014 INSULATING STANDARD BRICKS JNP DENMARK 5215.58 513734.13 98.5
1/11/2014 CERAMIC GOODS JNP CZECH. 141.25 223772.17 1584.2
1/25/2014 CERAMIC GOODS MUM GERMANY 435 195404.02 449.2
1/25/2014 CERAMIC GOODS JNP SWEDEN 66 35327.88 535.27
1/25/2014 CERAMIC GOODS JNP USA 91854 2586842.87 28.16
1/25/2014 CERAMIC GOODS MUM CZECH. 115 116947.3 1016.93
1/25/2014 CERAMIC GOODS JNP CHINA 1100 244120.64 221.9
Total 211979.44 11042986.14 52.1
Articles of plaster
1/23/2014 GYPSUM DOMES & CEILING PANELS CHN MALAYSIA 68917.15 800664.65 11.6
1/4/2014 GYPSUM CHN S. ARABIA 158880 1408498.19 8.9
1/4/2014 GYPSUM BLOCK SIZE JNP IRAN 30238 327624.35 10.83
1/4/2014 GYPSUM BOARD HYD PAKISTAN 39375 317144.81 8.05
1/4/2014 PVC GYPSUM CEILING TILES JNP CHINA 131250 1703010.65 13.0
1/6/2014 GYPSUM BOARD CHN MALAYSIA 36000 458261.1 12.73
1/6/2014 PLASTER CORNER WHITE COC UAE 209681 2730419.7 13.0
1/6/2014 CEMENT PLASTER JNP JAPAN 1000 2914.87 2.91
1/6/2014 GYPSUM KOL MALAYSIA 33860.74 234960.74 6.9
1/17/2014 PVC FACE GYPSUM CEILING TILES ALUMINIUM JNP CHINA 21000 160547.16 7.65
1/17/2014 PVC FACE GYPSUM CEILING TILES ALUMINIUM JNP CHINA 21000 160547.16 7.65
1/17/2014 GYPSUM CEILING JNP CHINA 162729.5 1949163.73 12.0
1/17/2014 GYPSUM BOARD TUT PAKISTAN 202125 1761406.51 8.7
1/19/2014 GYPSUM TILES CHN THAILAND 37700.16 413524.33 10.97
1/19/2014 GYPSUM CHN THAILAND 361600 3160010.79 8.74
1/19/2014 GYPSUM JNP S. ARABIA 600000 4807162.67 8.0
1/19/2014 FLYASH JNP GERMANY 44280 2177015.83 49.2
1/25/2014 GYPSUM BLOCKS JNP IRAN 11450 40884.24 3.57
1/26/2014 TILES WALL KOL CHINA 232 318678.03 1373.61
1/29/2014 GYPSUM CENTRE PANELS CHN MALAYSIA 16212.8 257344.38 15.9
1/29/2014 CEMENT JNP SRI LANKA 63.42 3405.54 53.7
Total 2187594.77 23193189.43 10.6
3. April 28 - May 05, 2014 3IN PERSON
Igor Palka was recently appointed
by Messe München (MMG) and
the Association of Equipment
Manufacturers (AEM) as the new
CEO. He worked for Messe München
before when he was still a student, and
he has remained close to the company
ever since.
After training as an event manager
and, in parallel, taking a degree in
business management, he took over
responsibility in 2011 for a large
proportion of the exhibitors at the
construction machinery show bauma.
In addition, Palka represented the trade
faircompanyworldwideatpresentations
and negotiations with associations.
Following two successful events,
how are the preparations shaping up
for the bc India 2014? What can we
expect from the third edition?
Preparations are shaping up well
and will surely continue to improve in
upcoming months. There are a few
key factors which will differentiate
the upcoming show from the past
two editions. One is the area of
Greater Noida near Delhi where
gigantic infrastructure projects are
planned, and where the government
decides on new large-scale projects
and where leading domestic and
‘CE market situation to improve
in H2 of 2014-15’
“Following two events held in Mumbai, bC India has now established
itself on the market. With the new venue in Greater Noida near Delhi and
the shift in dates to December 2014, bC India will be expanding further.
I am very much looking forward to continuing the success story of this
event,” says the new CEO of bC Expo India Pvt Ltd, Igor Palka in an
interview with Paresh Parmar. Excerpts:
international corporations have their
headquarters.
Therefore, this is a very attractive
area to hold one of the most important
trade fairs for construction machinery,
building material machines, mining
machines and construction vehicles
in the Middle East and India.
Plenty of highlights will be presented
at bC India 2014, mostly from our
exhibitors, showing their newest
product developments and new
product launches.
How will the Indian construction
equipment industry benefit from
the show?
Looking at the current Five-Year Plan
and the huge planned infrastructure
investments, I am convinced that the
situation in the CE market will improve
in the second half of this year. Having
our show in December, we are happy
to offer companies the best platform
to show their newest products to an
international audience.
In particular, because of our
optimistic view of the upcoming year
2015 with expected higher growth
rates. Hence, bC India is the perfect
marketing opportunity for our exhibitors
at the beginning of an economic
upswing.
What prompted the venue shift to
Greater Noida from Mumbai?
We had several reasons why
we relocated the bC India show to
Greater Noida. One is the region
of North India.Many companies
welcome the move of our show to
North India near Delhi, where so
far there was no large construction
equipment exhibition.
Secondly, the India Expo Centre
in Greater Noida, as a modern
trade fair centre, offers us enough
space to grow with our show and
the complete 170,000 sq m are
allocated to bC India 2014. This is a
big improvement, when you compare
it to the temporary hall structures we
had to build up at the Bandra- Kurla
Complex in Mumbai, which by the
way was not available for a third
edition of bC India. I believe that
relocating to Greater Noida Delhi will
help to develop this event further.
Opportunities for exhibitors at bC India
New legislative period holds promise of new projects
Even before Parliamentary elections
whicharecurrentlytakingplaceinIndia,
the Indian government was talking
about plans to make funding available
for a wide range of projects.
Things are definitely moving in
this market, all of which spells good
prospects for the exhibitors at the
Bauma Conexpo Show-bC India,
which takes place from December 15
to 18, 2014, in the India Expo Centre
in Greater Noida, near Delhi.
The Airports Authority of India (AAI),
for example, is planning to invest a
total of $1.3 billion in the modernization
and maintenance of India’s airports
between 2013 and 2017. One of the
ambitious goals is to bring around
100 additional airports into operation
by 2020.
Significant expansion is also
planned for other forms of transport:
The Institute of Metro & Rail Technology
announced recently that in the next 15
years around $16 billion are to be
invested in the rail and metro network.
A total of 7,500 km of new tracks are
to be laid.
The markets relevant to bC India
are also experiencing buoyancy: a
report by Off-Highway Research on
the construction machinery market
has identified positive trends. For 2013
the forecast was for 7 per cent growth,
but for 2014 that has been raised to
9 per cent.
These figures are one of the reasons
why Ramesh Palagiri, Managing
Director & CEO of Wirtgen India, is
predicting renewed growth potential
in India for the time after the elections.
"The new central government is
expected to be functional by June
2014, and we expect the bottlenecks
in the infrastructure sector to be
addressed on priority. This would
result in accelerated growth of the
construction equipment industry," he
observed.
For companies these planned
investments are just one part of the
positive picture: the new venue for bC
India in Greater Noida near Delhi is
also important to the exhibitors.
Nitin Lal, General Manager
Construction Technique Consumer
CenteratAtlasCopcoIndia,comments,
"We welcome the decision to host bC
India 2014 in Noida this year. This will
increase participation from leading
construction companies in expectation
of higher customer footfalls and
customer enquiries. With this move,
bC India will become a more focused
construction exhibition specifically
catering to the needs of the northern,
eastern and western parts of India."
Sorab Agarwal, Executive Director,
ACE, addsed, "A lot of focus for
infrastructural development and real
estate has moved towards North
India in the recent past. As there is
no prominent show that takes place
in North India, bC India would be the
right platform for all the equipment
manufacturers to showcase their
products and technology in the
forthcoming event at Noida.”
How do you see India’s construction
industry shaping up in near future?
And how do you assess the present
construction equipment market in
India and its growth prospects?
I n m y o p i n i o n , t h e r e i s
a very obvious need for further
infrastructural development plans in
view of the country’s general need
to improve the current situation.
The growth of the construction
equipment industry is almost
assured; the rate of itself will depend
on streamlining different issues,
such as government clearances
and approvals, administrative and
procedural reforms or generally on
the pace of project executions.
After the decrease in units in 2013,
I am very optimistic that we will see a
slight increase in 2014 unit numbers.
As it will most probably pick up only
from second half onwards, I presume
a single-digit growth rate.
How is the support you received
from governmental bodies and
affiliated associations?
So far very well. All bodies with
whom we speak are very open
to support our event. Some
associations will support us in the
events programme, some with a joint
pavilion, and some by promoting the
exhibition. This of course will even
increase after the elections and once
we are getting closer to the show.
Anything extra you would to share
about the exhibition?
The next edition, which will be
held from December 15 to 18, 2014,
will continue to be a successful show.
The majority of our visitors in Mumbai
expressed their intention to visit the
next bC India, even if it will take
place in the Delhi region instead of
Mumbai. The main difference will be
the new target group of North India,
as added value to all our exhibitors.
The short distance to Greater
Noida will attract new potential
clients, governmental representatives
and new decision makers. This will
result in a win-win situation for all our
exhibitors and visitors.
Nitin Lal, GM Construction Technique
Consumer Center, Atlas Copco India.
Ramesh Palagiri. Managing Director &
CEO, Wirtgen India
4. April 28 - May 05, 2014 4INFRASTRUCTURE
WB okays $1,100 m loan
for eastern freight corridor
The World Bank board, in a meeting
held at Washington DC a few days
ago, sanctioned the second phase
loan of $1,100 million for construction
of the 393-km electrified double
line between Mughalsarai-Bhaupur
section of Eastern Dedicated Freight
Corridor.
This is a significant step forward
towards project implementation and
yet another feather in the cap of
DFCCIL. The World Bank has agreed
in principle to part finance the Eastern
Corridor project from Mughalsarai to
Ludhiana, which has been divided into
three phases.
The total in principle loan
commitment is $2.725 billion, out of
which the loan for the first phase to the
tune of $975 million was sanctioned
in May 2011 and the loan agreement
was signed in October 2011. The loan
agreement for the second phase is
expected to be signed in in the month
of June 2014.
DFCCIL, a special purpose
vehicle (SPV), is engaged in
planning, construction, operation and
maintenance of the dedicated freight
corridors and in the first phase, the
two corridors, Eastern Corridor from
Ludhiana to Dankuni (1,839 km) and
the Western Corridor from Dadri to
Jawaharlal Nehru Port (JNPT) (1,499
km) are being constructed.
The entire Western Corridor is being
funded by the Japan International
Cooperation Agency (Jica), while the
Eastern Corridor from Mughalsarai
to Ludhiana is being funded by the
World Bank.
Construction and infrastructure
company NCC Ltd is at an advanced
stage of negotiations for divestment
of stakes in at least two road projects.
It expects to conclude them during
the current fiscal.
The Hyderabad-based company,
which has a debt of Rs 2,500 crore,
is seeking to divest stake in some
of its matured assets to bring down
its debt burden. The move is also
aimed at redeploying funds into new
projects, which it currently plans to
take up and also ease up liquidity.
It has an order book of Rs 20,000
crore.
The company is in parleys with
a couple of investors for its western
Uttar Pradesh road project in the
Meerut-Muzaffarnagar section and
Ajay Piramal, Chairman of Piramal
Enterprises, is optimistic about the
potential of the country’s infrastructure
sector. Flush with funds and in search
ofinvestmentopportunities,thePiramal
Group plans to offer debt financing
for key infrastructure projects in the
country, says the Chairman. “We are
clearly looking to invest in companies
that will give us the returns we want.
We do understand real estate, for one,
and have been investing in projects
through our non-banking financial
company (NBFC),” said Piramal.
In its bid to cash in on the
infrastructure sector which offers
multiple opportunities, the group is
Citing concerns over demand,
APM Terminals-run Gujarat Pipavav
Port has reduced its capital expansion
target to Rs 460 crore and decided
not to add any more capacity on
the bulk cargo front and container
handling.
The company had earlier
announced it will infuse $199 million
or Rs 1,100 crore for expanding
its container handling and bulk
capacities. It said a slew of factors,
including question marks over
demand, led it to redraw the strategies
and stop the capacity expansion on
the bulk cargo handling front.
The documented delays in
commissioning of coal based power
plants around Pipavav (made)
prospects on the expanded bulk
capacity unclear in the immediate
future. Additionally, a recent change
in Indian Railways tariffs on bulk
commodities has also impacted
the elevated Bengaluru Expressway.
However, the former is likely to fructify
before the latter.
Faced with liquidity crunch,
infrastructure companies such as
GMR, GVK, IVRCL, and Lanco
Infratech are all seeking to divest
stake in matured assets with the
intent of churning assets. However,
while some of the companies have
succeeded in concluding the deals,
others are finding it tough due
to current market conditions and
overseas investor sentiment.
According to company sources,
NCC expects the divestment to take
some more time. It has also initiated
a process to rise up to Rs 650 crore
through a rights issue, also aimed at
easing company liquidity.
looking to provide debt financing
for key projects, he added. Piramal
Enterprises had announced its
decision to pick up a 20 per cent stake
in Chennai-based Shriram Capital for
Rs 2,014 crore.
The CPPIB is one of Canada’s
biggest pension funds, with whom
Piramal Enterprises formed a strategic
alliance to set up a $500 million real
estate finance company in India.
The CPPIB did its first investment in
India’s real estate sector in November
2013, committing $200 million to own
80 per cent of a venture with Indian
infrastructure firm Shapoorji Pallonji
Group.
its margins as compared to the
competition due to a distance slab
based rail freight classification,
it added. Under its original plan,
the bulk capacity handling was
supposed to go up to 20 million
tons per annum from the current 4-5
million tons at an investment of $44
million, it said.
On the container front, it revised
the total expansion to increase the
total capacity handling to 1.35 million
teus as against the earlier plan of
taking it to 1.50 million teus. Its
container handling capacity stands
at 0.85 million teus.
It said due to its redrawing of
strategy, the expansion project will
be complete by first quarter of 2016.
“APM Terminals Pipavav does not rule
out any further expansion of bulk,
container or liquid bulk facilities basis
developing market conditions,” said
the statement.
Debt-hit NCC in talks to
sell stake in road projects
Piramal Group to debt
finance infra projects
Pipavav Port clips capital
expansion target to `460 cr
GSK to sell 60-acre property
in Thane
Gulf players plan to invest
in solar sector
GlaxoSmithKline Pharmaceuticals
is looking to sell its 60-acre property
in Thane district. Realty experts have
pegged the value of the land in the
range of Rs 1,600 to Rs1,800 crore.
“We are doing remediation of the soil
and when it is almost over we will
try and sell the land if we can find a
buyer during the next one year,” said
GlaxoSmithKline Pharmaceuticals
Chairman D S Parekh.
Currently, the land value in the
Thane region is between Rs 28
to Rs 30 crore per acre. In 2012,
GlaxoSmithKline closed its factory
located on the land that housed an
The solar manufacturing sector in
India is all set to get a boost as players
from Gulf countries are contemplating
to invest in the country both in terms
of finance and technology. They
plan to form joint ventures with
Indian manufacturers based on their
engineering capabilities.
The seeds of this collaboration
were sown during a recent meeting
of members of the National Solar
Energy Federation of India (NSEFI)
and officials of the Solar Alliance of
Gulf Cooperation Council (GCC) and
the Saudi Arabia Solar Association.
The collaboration assumes
significance in view of India gaining
experience in solar energy in recent
years and oil rich GCC countries
increasingly focusing on solar
energy and regional co-operation
against global warming and climate
change in general and solar energy
in particular.
active pharmaceutical ingredient
manufacturing unit. The plant had
been functional since 1961.
The company had announced
on November 14, 2013 that it was
“There is a need for regional
collaboration for countering the global
warming and climate change taking
place across the world. For this solar
energy is the best alternative,” said
NSEFI Chairman Pranav Mehta.
As many as a dozen manufacturers
from Gulf countries have shown
interest in setting up joint ventures
with Indian companies, said Mehta,
adding that a delegation from Gulf
countries including Saudi Arabia
and UAE. During the meeting with
GCC and the Saudi Arabia Solar
Association, Mehta had discussed
various areas of synergy between the
two associations.
In India the Central government
is betting big on solar energy with
the launch of the Jawaharlal Nehru
National Solar Mission (JNNSM), under
which states have been encouraged
to promote solar energy. A number of
solar parks and solar power stations
planning to set up a manufacturing
facility in India with an investment of
R 864 crore. While the company is
looking at a possible site in Karnataka,
nothing is finalized as yet.
are coming up in states like Madhya
Pradesh, Rajasthan and Andhra
Pradesh. Gujarat tops the list of solar
power generating states in the country
with total commissioned capacity of
860.4 mw.
Gujarat is followed by Rajasthan
at 666.75 mw till January 31, 2014. In
fact, the total commission capacity in
India stands at 2,208.36 mw, of which
Gujarat constitutes 39 per cent. The
Solar Energy Corporation of India
(Seci) is setting up 4,000 mw solar
power park in Rajasthan where six
central public sector undertakings
are partners.
Similarly, a 1,000 mw solar park was
being developed in Andhra Pradesh
by Seci, which is also planning 5,000
mw solar park in the Kharaghoda
region of Gujarat, details of which is
likely to be finalised after the general
elections.
5. April 28 - May 05, 2014 5CONSTRUCTION
A Green building
is cheaper than
a conventional
building when costs
of construction
and operation are
considered across the
entire lifecycle
(Part 3)
Green building economics
Understanding the economics
of green building is a crucial factor
driving the case for growth of the
green real estate development in the
country. The sustainability measures
undertaken by developers from the
very start of the building process not
only lead to tangible benefits such
as lower operational costs, efficient
use of material resources but also
augment the brand image of the
developer for a consumer.
However, there exists a common
perception among developers that
constructing a Green building may
not be cost-effective. However, this
may not be the case over the lifetime
of a project. The case study below is
intended to highlight the business
case for Green buildings in India and
to establish that a Green building is
cheaper than a conventional building
when costs of construction and
operation are considered across the
entire lifecycle.
Teri conducted a study in 2009 to
assess the economic feasibility of
incorporating energy efficient design
features in rated buildings with
reference to improvements in their
energy performance for a leading
international bank in India.
In this study, seven building cases
were selected on the basis of select
parameters. A study period of 25
years for the building was taken
for the research study. The costs
were segregated into three major
categories.
Single costs: Costs which occur
only once during the service life of the
building. These costs comprise initial
investment cost, capital replacement
costs, and resale value of buildings.
Uniform annually recurring costs:
Costs which occur every year during
the service life of the building. These
costs include operation, maintenance
and repair costs.
Non-uniform annually recurring
costs: Costs which occur every year
but tend to escalate every year of the
service period of the building. These
costs include the energy costs of
the building due to lighting, HVAC,
equipment and electrical systems of
the buildings
A comparative was drawn
between a conventional building
and a Green building. The Green
buildings considered as a part of
this study have achieved the highest
rating such as platinum/5-star from
different rating systems.
Lifestyle costs
Comparison of the lifecycle costs
over 25 years of Green vis-à-vis
conventional buildings showcased
that Green buildings have significantly
lower lifecycle costs than their
conventional counterparts. The
lifecycle costs, according to the
research case study, were found to
be 35 per cent lower as compared
to conventional buildings over a span
of 25 years.
While there are incremental costs
ranging from 4 per cent to 32 per
cent of the initial capital investment,
the payback of one to three years
and adjusted internal rate of return of
19 per cent to 29 per cent with cash
savings, not only compensates for the
initial cost but also provides benefits
to owners/occupants throughout the
lifetime of the building.
The research also showed that
there exists a water saving potential
of up to 72 per cent by incorporating
simple water saving strategies such
as use of efficient fixtures, reuse
of recycled grey water, harvested
rain water to meet requirements for
irrigation, flushing, ac-make up, etc.
At present due to an inefficient
water pricing mechanism, the potential
of financial savings from water
savings may not seem significant.
However, at a later date, when the
pricing of water reflects the state
of affairs, it will lead to substantial
financial savings as well.
Obstacles to growth
India is one of the fastest growing
economies in the world following the
trajectory of rapid development. Over
the years, India has experienced
significant growth in both its GDP
and population.
The burgeoning pressure of
population and fast pace of growth
is affecting India’s development
patterns which are resulting in
rapid urbanization, high demand
for infrastructure and imposing a
pressure on resources such as
energy, water and building materials.
These trends in the long run will
have a substantial impact on the
environment.
While the real estate sector in India
has grown exponentially in the last six
decades, there is a huge potential
to mainstream Green buildings in
the real estate sector. The purpose
of this survey is to understand the
impediments to the growth of Green
real estate and to highlight the
challenges before the sector.
More than 70 per cent believe that
the notion of high costs of Green
buildings and lack of awareness
on the intangible and tangible
benefits of Green building are the
biggest barriers the sector faces.
Coupled with this, low customer
motivation to pay high premiums and
a missing ecosystem of government
programme implementations, supply
chain infrastructure and lack of
financial incentives are the second
largest barriers.
(contd. on pg 6)
6. April 28 - May 05, 2014 6PROJECTS UPDATE
Chennai-B’luru Industrial
Corridor by Mar 2015
Centre scraps PPP plan for
`6,290-cr EPE project
L&T arm may exit two ‘unviable’
highway projects
Alstom bags €30 m Bhel deal
for thermal power plant
The comprehensive integrated
master plan for development of
Chennai-Bengaluru Industrial Corridor
(CBIC) will be ready by March 2015,
according to Masanori Nakano,
Japanese Consul-General. Addressing
the silver jubilee celebrations of Indo-
Japan Chamber of Commerce &
Industry (IJCCI) this month, he said,
“The number of Japanese companies
in India has increased by four times
in recent times, of which 60 per cent
pertained to manufacturing sector. This
trend will continue to remain. Japanese
In a sign of investor disinterest in
road projects, the government has
decided to scrap the plan to use
the public-private partnership (PPP)
model to build the Rs 6,290-crore
Eastern Peripheral Expressway (EPE)
project.
SourcessaidtheNationalHighways
Authority of India did not receive a
single bid for the project before the
April 4 deadline and the project would
now be developed in the conventional
engineering procurement construction
(EPC) mode.
According to officials, the bidding
for the EPE project remained open for
almost two months but closed without
anyone showing interest.
Atthetimeofrequestforqualification
(RfQ), Reliance Infrastructure and IRB
apart from Uniquest Infra Ventures,
Larsen & Toubro Infrastructure
Development Projects may cancel
two Maharashtra road projects with
a combined cost of about Rs 4,500
crore as they have turned financially
unviable. The L&T arm has already
discussed this with the National
Highways Authority of India (NHAI).
The two projects involved widening
of 485 km of carriageway on two
highways -- Amravati-Jalgaon and
Jalgaon-Gujarat/Maharashtra border.
They were valued at Rs 2,538 crore
and Rs 1,968 crore, respectively, three
years ago. To develop these projects,
French power equipment maker
Alstom said it has bagged a €30-
million contract from state-owned
firm Bhel for setting up a thermal
power plant at Jharsaguda in Odisha.
Alstom has been awarded a contract
by Bhel worth close to €30 million
(approximately Rs 2,500 crore) for
executing the 2x660 mw Banharpalli
thermal power project in Odisha,
the company said in a statement.
Under the scope of the contract,
Alstom will cooperate with Bhel in
designing the boilers and supply
identified pressure parts of the 660 mw
firms are also interested in developing
infrastructure projects such as Delhi-
Mumbai Industrial Corridor and CBIC,
among others. We are interested in
increasing co-operation between the
two countries.”
Venu Srinivasan, IJCCI past
president, said that Tamil Nadu would
be the greater beneficiary of Indo-
Japan co-operation. Japanese firms
such as Nissan, Yamaha and Toshiba
are likely to set up their units along
the proposed Chennai-Bengaluru
corridor.
Srei-OHL consortium and IL&FS
showed interest in the project but later
all of them developed cold feet. It was
the fifth time that the EPE was put out
for bidding.
The EPE project, whose completion
is key to easing the traffic congestion
in the national capital region, was
among the four projects cleared by
the Cabinet in July 2013 for PPP
ventures. If the government adopts the
EPC model for the 135 km EPE that
will connect Sonipat, Ghaziabad and
Palwal, it would be the first expressway
to be built by the government.
Sources said the EPC process
is likely to kick-start once the new
government takes over. In July last
year, the Prime Minister had directed
that the eastern pripheral expressway
be awarded by December-end.
L&T was to raise money, design and
build the highway and collect tolls
from those using the stretches for
over 20 years.
The company had tied up finance
for these projects in 2012. Premium is
the amount that a developer is required
to pay the NHAI for the right to widen
a highway. The company collects
tolls from users over 20-30 years. For
instance, for each of these projects,
L&T would have had to pay a premium
of over Rs 4,000 crore over the entire
concession period, starting with Rs
130-140 crore in the initial years.
supercriticalboilers,thestatementsaid.
It will also assist Bhel with technical
advisors during the erection and
commissioning of the units. Key
components will be manufactured
at Alstom’s manufacturing facilities
in Concordia (USA), as well as in
Durgapur (West Bengal). The first
and second units are expected
to be commissioned by 2018.
Last month, Alstom was awarded a
contract worth €85 million by Bhel to
supply two 800 mw supercritical boilers
for Darlipalli super thermal power
project located in Sundergarh, Odisha.
NHAI mulls 5,000-km
highways via EPC/PPP
The National Highways Authority
of India (NHAI), after a dismal show
in 2013-14, is readying its work plan
for this financial year, one that reflects
the pessimism enveloping the sector.
It is planning to award about 2,000 km
through cash contracts, or EPC mode,
and is ready with 3,000 km to be bid
via the public-private partnership
(PPP) mode.
The NHAI officials said they have
informed the Highways Ministry of
their targets for 2014-15 but awarding
projects on the EPC mode can only
take off if the NHAI is able to acquire
90 per cent of the land. In addition,
the final award on PPP mode would
depend on the market response,
which has been poor of late, and
may need to be converted to the EPC
mode if no bids are received.
“We have had discussions on
what target to fix and it was decided
to keep a conservative estimate since
we would have to answer to the new
government on the results. All in all,
it might be possible to award about
5,000 km of projects, with about
3,000 km from BoT projects only if
appetite of lenders improve,” said an
NHAI official, adding that the Authority
has communicated to the Highways
Ministry that if PPP projects have to be
converted to the EPC mode, then the
NHAI’s financial capacity would have
to be examined.
The NHAI chief R P Singh has told
the ministry that further allocation of
resources would be required in such
a case and these issues would have to
be presented to the new government
on priority, said people familiar with
the matter.
As per the work plan, the NHAI is
readying about 2,300 km of highway
projects with a total project cost
over Rs 15,000 crore via the EPC
route, and 3,278 km PPP projects
worth over Rs 35,000 crore. The EPC
projects include Rs 996 crore Talcher-
Dubari-Chandikhole and Rs 675
crore Bijapur-Gulbarga-Homnabad
stretches which had been bid out in
2012-13 on the PPP mode but failed
to get any bidders.
“In recent months, raising equity for
highways PPPs has become difficult
and there are even signs of declining
interest from developers.... Not only
are companies hesitant to bid for
new projects, several existing assets
are up for sale. Many developers are
finding it difficult to fund the entire
shelf of projects. They are resorting
to asset sale to fund new/existing
projects,” said Manish Sharma,
Executive Director, Capital Projects &
Infrastructure at PWC.
green building
(contd. from pg 5)
Underlying notion
Our survey of 150 senior, mid-
management professionals across
the Green real estate value chain
reveals a complex underlying problem
ailing this sector. A majority of our
respondents (72 per cent) believe
that the notion that a Green building
costing more is proving to be the
most crucial barrier towards this
sector’s growth.
On further probing the survey
reveals that more than 50 per cent
of the respondents agree to a large
extent that this is just a notion and that
there isn’t a huge margin between the
total costs incurred in a Green building
vis-à-vis a conventional building.
There lies a paradox in this finding.
While a certified Green building
may have higher capital costs than
conventional buildings, the operational
costs over the lifetime of the building
are lower, thus making a Green
building more cost-effective and
resource-efficient over its lifetime than
a conventional building. Research
suggests that most investments in
Green buildings will eventually have a
better payback due to decrease in the
wake of increasing energy and water
costs in the future.
Major barriers to growth
Enforcement of local and central
mandatory norms missing. While there
arenational building codes whichcover
critical elements of safety and address
environment clearance measures
in buildings, the only energy-related
instrument encouraging adoption
of Green buildings is the Energy
Conservation Building Code (ECBC)
2007, which applies to buildings, built
over an area of more than 1,000 sq m.
Over 60 per cent of our survey
respondents recognize lack of
coordinated and mandatory provisions
of local state and Central government
are a major barrier towards growth of
the Green real estate sector.
Considering the hidden costs and
market failures with respect to resource
pricing such as misplaced incentives,
twisted fiscal and regulatory policies,
that characterize the building industry,
regulatory and control measures,
though much needed, may not be able
to support a market transformation in
the sector alone.
These measures need to be
combinedwithotherpricinginstruments
like tax exemption/rebate, financial
incentive, preferential loans, etc for
greater impact, considering realities
such as the level of development
of the local market and household
income levels.
Benefits of Green building
Stakeholders are not fully aware
of the complete spectrum of tangible
and intangible benefits of a Green
building. This finding presents a
unique opportunity for real estate
developers, advisors, rating agencies
and other stakeholders to widely
disseminate information and in-depth
knowledge of the realized benefits of
Green buildings through seminars,
reports, workshops and other modes
of communication.
Customers are not willing to pay
premium for certified Green buildings.
A whopping 96 per cent of our survey
respondents agree that an Indian
consumer, both at an individual and
an organizational level, shirks at the
idea of paying a premium for a certified
Green real estate asset.
Customers in India are extremely
price sensitive and prefer to settle for
accommodations with more rooms
than investing more for buying a Green
building at a premium. From the overall
findings of the survey, a potential
correlation between lack of realized
benefits of Green buildings among
stakeholders and the unwillingness to
pay a premium can be inferred.
Split incentives
The case of split incentives for a
Green building developer, another
barrier highlighted by 60 per cent of
our survey respondents is the issue of
split incentives, that is, the benefits of
energy savings may not go directly to
the person making the investment.
For example, the owner of a building
may make the energy efficiency
investments, but the occupier may
receive the benefit of lower energy
bills (although landlords could benefit
from higher rents but that would make
them incompetent with the prevalent
market rates).
On the other hand, if the landlord
is responsible for the energy bills, the
tenant has no direct incentive to invest
in saving energy.
Financial barriers
Financial institutions are faced
with an array of major hurdles to fund
energy-efficiency projects in buildings:
low financial returns, credit risks,
uncertainty, and difficulty in evaluating
the added financial value of Green
buildings. Further, if the projects are
small-scale, they do not fit into the
traditional financial basket.
The survey respondents identified
an array of financial barriers hurting the
Green real estate sector today in India.
Close to 58 per cent of the survey
respondents felt that the financial
institutions today are not aware of the
innovative credit lines available in the
market for financing energy- efficient
building projects.
Around 51 per cent of the
respondents believe that lack of
preferential lending rates to Green
building projects also leads to
discouragement, while 38 per cent feel
that Green buildings are improperly
valued, thus disincentivizing the real
estate developers from building a
Green estate project.
Close to 33 per cent of the survey
respondents also highlighted that high
upfront fee for a loan is also a financial
barrier, due to which many small and
medium sized real estate developers
are dissuaded from investing in such
projects.
(Continued in next issue)
(Courtesy: Teri BCSD-Yes Bank)
7. April 28 - May 05, 2014 7REAL ESTATE
India’s first double-
decker flyover, the 6.45
km six-lane road named
Santacruz-Chembur
Link Road (SCLR),
was thrown open to
commuters in Mumbai
on April 21
Game changer for Mumbai
The project, undertaken under
the Mumbai Urban Transport Project
(MUTP) of MMRDA, will provide much-
needed east-west connectivity in
Mumbai. The road starts from Vakola
junction on Western Express Highway
(WEH) and extends up to Amar Mahal
junction near the Eastern Express
Highway (EEH). After several cost
overruns, the link road is estimated to
have cost the MMRDA about Rs 450
crore - a four-fold jump in cost since
it was first projected.
The prolonged delay in completing
the project was primarily due to the
numerous cases against SCLR related
to rehabilitation and encroachment,
among others. Another bottleneck
was the bridge over the Central
Railway tracks, which took years to
receive the final nod. However, all
issues have been cleared and the
flyover is now open for use.
Capacity: As per estimates given
by the MMRDA, 80,000 vehicles are
expected to use the flyover daily.
Travel time: The travel time between
Chembur and Santacruz is expected
to drop from the current 90 minutes
to 20 minutes.
Access & entry points: CST Road,
Amar Mahal Junction, Nehru Nagar
and Lokmanya Tilak Terminus are the
four locations for access and entry
points. The top deck will cater to traffic
between Amar Mahal junction and
Vakola junction. The lower deck on the
other hand will provide connectivity
between Lokmanya Tilak Terminus
and Kurla Dairy in Nehru Nagar from
Kalina, Santacruz.
Nashik’s future in terms
of investments and
economic growth is very
promising due to major
projects underway
Safe and secure
Real estate development in the
city has been taking place in a very
collaborative manner. In many cases,
landlords with sizable agricultural land
holdings on the city’s fringe areas
have either sold their land or entered
into joint venture agreements with
developers and moved farther for their
agriculture activity, thus infusing land
as well as capital into Nashik’s real
estate market.
Residential projects such as Amit
Eka by Amit Enterprises Housing
Ltd in the Pathardi area of south
Nashik have been meeting with
enthusiastic response, both locally
and from outstation investors who
find property rates in Mumbai and
Pune beyond their budget. The areas
Nashik: A promising city
Nashik has been developing
rapidly over the past 15 years. The
city’s multiple economic drivers
include its proximity to Mumbai and
its strategic location on the Central
Railway main line and the Mumbai-
Agra National Highway. Nashik is now
a new centre of industries, commerce,
administration, education, production
and marketing.
Basically, the city has a four-fold
economic configuration -- pilgrimage
economy, industrial economy,
defense sector economy and a
strong agricultural economy. In terms
of industry, it has three well-developed
industrial estates at Satpur, Ambad
and Sinnar.
The important industries situated in
Nashik and its surroundings include
ABB India, Mahindra & Mahindra,
Gabriel, Glaxo SmithKline, LG
Electronics, Samsonite, Garware,
Siemens, Blow Plast, Thyssen Krupp,
Ceat, Atlas Copco and TI Cycles.
along Pathardi Link Road are major
developing residential destinations
that see high demand by second
home buyers.
Overall, Nashik offers very
encouraging fundamentals for
real estate investors. Some of the
advantages it enjoys over other several
major cities in Maharashtra include a
well-developed physical infrastructure,
adequate and good quality water
supply, located at one vertex of the
major growth triangle of Mumbai,
Pune and Nashik, comparatively lower
environmental pollution, efficient intra
and intercity commuting facilities,
excellent connection with other
regional growth centres.
Also, there are developed industrial
estates such as Ozar, Sinnar, Satpur
and Ambad in the immediate
vicinity, the software technology
park at Ambad, salubrious year-round
climate, a well-established defense
base that gives Nashik a safe and
secure social environment and also
interactive national positioning with
other Indian cities, air connectivity
with national cities, generous and
increasing availability of skilled labour,
numerous high-grade healthcare
facilities and educational institutions,
also for higher and professional
education.
Viable destination
Nashik’s future in terms of
investments and economic growth
is very promising due to several
projects underway or expected to
confirm operations in the near future.
For instance, Hindustan Aeronautics
has short-listed Nashik as the base
for its Rs 23,000-crore manufacturing
plant for Sukhoi jets for the Indian Air
Force.
Also, the IT/ITES sector in the city
is rapidly becoming a force to reckon
with. BPOs have begun recognizing
Nashik as a very viable destination
because of the lower real estate costs
while at the same time being a very
good catchment of educated, English-
speaking talent. Several information
technology companies are now
firming up their plans for establishing
bases in the city.
Private banks have been
major drivers for commercial real
estate in Nasik, with ICICI, HDFC
and HSBC having expanded their
operations phenomenally. Moreover,
the government of Maharashtra is
investing heavily into the already
thriving wine parks industry in Nashik
which is already famous for Sula
vineyards.
The general real estate trend
in Nashik has been accelerating
growth even as turbulent economic
conditions slowed down markets in
most other cities. This is amply borne
out by the steady rise in construction
and development activities.
Developers’ vision
Developers in the city are displaying
remarkable vision, having taken
Mumbai, Ahmedabad, Surat, Pune
and Bengaluru as development
models, replicating what works in
these cities and conscientiously
steering clear of what does not.
All these factors are boosting
employment and prosperity in Nashik,
which directly influences the demand
for residential real estate. Little wonder,
then, that more and more investors are
now focusing on this city. They are
attracted by the low property rates and
excellent mid- and long-term demand
projections.
Kishor Pate
CMD, Amit Enterprises
Housing Ltd
Impact on property rates
The economics of transportation
infrastructure have always had a
positive impact on real estate values
– most especially in Mumbai. Homes
and offices located in the proximity of
transportation infrastructure command
a premium because of the increased
accessibility.
In fact, Kurla, Sion, Vidya Vihar
and Chembur may see significant
surge in developer interest. There
has already been a jump of close to
25 per cent in Chembur’s property
prices -- an impact attributed to the
cumulative effect of mega-projects
like the Eastern Freeway, Monorail,
Metro and now SCLR. Meanwhile,
demand for properties in BKC, its
adjoining areas and CST Road is
already rising perceptibly.
Game changer
As intended, the flyover has
significantly reduced commuting
time to BKC from the eastern suburbs,
further improving the connectivity
of Mumbai’s hottest new business
district. The significant decongestion
of Western and Eastern Express
Highway is turning out to be a game-
changer for commercial projects
around them. In fact, the reduced load
on JVLR and Sion-Dharavi Link Road
will have a positive impact for the
property market in western suburbs
and BKC.
From a real estate perspective,
the fact that commuters from western
suburbs and SBD north will now prefer
to use the SCLR to commute to Navi
Mumbai, Panvel and other areas and
back is an important and positive
change for these markets.
Reduced traffic congestions at
Amar Mahal junction in Chembur,
Vakola in Santacruz, parts of Sion and
Kurla in eastern suburbs, will increase
the liveability quotient of these areas
and boost demand for commercial
as well as residential real estate.
The overall development potential
of areas near the access points of
SCLR in terms of residential, retail
and commercial projects will also
shoot up.
BKC to gain most
As companies become increasingly
employee-friendly in the long term, they
will value shorter commuting hours for
their workforces. BKC stands to gain
the maximum because of this trend,
as residential absorption is bound to
increase in eastern suburbs.
Micro-market impact
CBD: In absolute terms, there will
be no sizeable impact; however, the
relative attractiveness of other markets
due to the completion of the flyover will
further enhance the trend of shifting
from CBD to the other more viable
business districts. However, the fact
that the Eastern Freeway provides a
positive impetus for the CBD may help
in delaying the trend.
SBD Central: We expect a slight
price correction to match the relative
attractiveness of suburbs as alternative
business destinations while supply
and absorption rates will remain flat.
SBD BKC: A positive impact will
be seen in this micro-market, as the
flyover is expected to boost BKC’s
connectivity and decrease travel
time significantly. Also, as the flyover
emerges as the preferred east-west
corridor, Kala Nagar junction will
become less congested, which is
another positive factor for BKC.
SBD north: Supply and absorption
will both rise as a result of the improved
linkage with eastern suburbs and even
Navi Mumbai. Besides BKC and
eastern suburbs, this micro-market will
see maximum positive impact.
Western suburbs: With most of
the infrastructure projects happening
in eastern suburbs, new commercial
space tenants may give western
suburbs a miss as the difference
between the two suburbs has become
more pronounced. One positive will
be the decongestion of JVLR, which
is usually clogged during peak hours
due to the east-west traffic.
Eastern suburbs: Metro, monorail,
Eastern Freeway and now the new
flyover are all the marquee projects of
Mumbai that have a connection with
eastern suburbs. Supply, absorption
Ramesh Nair
COO, Business, JLL
Micro-market Supply Absorption Rental/Capital values
CBD
SBD Central
SBD BKC
SBD North
Western suburbs
Eastern suburbs
Thane & Navi Mumbai
and rental/capital values are expected
to move up.
Thane-Navi Mumbai: Thane might
remain unaffected, but the Navi
Mumbai market will show a positive
movement as Chembur acts as a
conduit between Navi Mumbai and the
other markets in the adjoining areas
of the flyover.
Tired of traffic congestion, many
Mumbaikars are looking to trade in
their current lifestyle for one that gives
them more choices and flexibility. The
citizens traveling extensively overseas
and with large amounts of disposable
income are demanding far more from
their living and working environments
than what has been available to them
so far.
Another pertinent fact is that
the challenge for talent in the next
decade will prompt office tenants
to increasingly locate in suburban
business districts that offer their
employees advantages such as
access to a larger variety of utilities
and services. Given all of the above,
the new double-decker flyover will
definitely be a game changer for real
estate in the metropolis.
8. April 28 - May 05, 2014 8REAL ESTATE
PE activity is expected
to rise as a result
of anticipations
of accelerated
deals, mergers and
acquisitions
PE investment trends
Transactions in India’s real estate
space might have slowed down over
the past two quarters, but the sector
has not been overwhelmed by the
state of the wider economy. Despite
the subdued pre-election economic
scenario, in fact, the period observed
an increase in private equity activity.
Most investments by PE groups
were structured debt deals and their
preference was for residential projects
or well-leased commercial projects.
Investors spotted opportunity in
fully leased IT parks and Sezs in
cities such as Bengaluru, Pune and
Gurgaon.
Land and/or development sites for
residentialandmixed-usedevelopment
in the peripheral locations of leading
cities also attracted investor attention.
Blackstone was among the most
active PE players in the country in
2013; and other significant players
included the Xander Group and Red
Fort Capital.
Significant deals
One of the most significant deals
last year saw Blackstone investing
approximately Rs 450 crore for a 50 per
cent stake in Panchshil Realty’s Sez
project, Eon Free Zone (leased asset)
at Kharadi, Pune. Last year also saw
IDFC’s real estate investments arm
buying out a constructed and leased
phase (phase-1) of Pune-based
developer, Paranjape Schemes’
Sez at Hinjewadi, Pune, for INR 460
crore.
More recently, Xander hiked its
holding in the Tata Group’s public
listed retail company, Trent Ltd, and
acquired an additional 3 per cent
stake for about Rs 107.4 crore.
Meanwhile, the Canada Pension
Plan Investment Board (CPPIB)
has also announced its intentions
to invest in the Indian market, and
Piramal Enterprises Ltd has formed
a strategic alliance with CPPIB for
providing project-level debt to local
developers across the Delhi NCR,
Mumbai, Bengaluru, Pune and
Chennai markets.
Pre-leased office assets
With the current liquidity crunch in
the market likely to continue awhile,
HNI retail investors are looking to buy
pre-leased office assets at attractive
valuations. The group is currently
targeting investment yields upwards
of 9 per cent, and is increasingly
moving from vacant to leased Grade
A office spaces.
The other investment trend
anticipated for this segment involves
rising geographical fungibility due to
a lack of quality office spaces across
most micro-markets of leading cities
in the country. Focus areas with
yields upwards of 9 per cent for
such investors include the Bandra-
Kurla Complex, Andheri and Kurla in
Mumbai, and Indiranagar, Whitefield
and the Outer Ring Road in Bengaluru.
Institutional investors, for their part,
are expected to increasingly move
towards core strategies of investing
in leased office space assets in 2014,
while developers are more likely
to lease out their assets for better
valuations, as against their earlier
practice of selling vacant assets.
More capital investment
According to CBRE’s recently
released Asia Pacific Investor
Intentions Survey 2014, which gauges
the appetite and outlook of Asia
Pacific real estate investors for the
rest of the year, a significant majority
of investors expect to commit more
capital into the Asia Pacific real estate
market in 2014 over that in 2013.
The Survey 2014 identifies India as
one of the priority markets for global
real estate investors, particularly
among Asian investors. India
ranked as the fifth-most attractive
investment destination in the APAC
region, behind China, Australia
and Japan, with long-term growth
factors such as the demographic
dividend, and rising middle-class
shielding it from the ongoing volatility
in financial markets. The intention
to invest in India, therefore, exists,
but actual deployment of capital
has unfortunately lagged behind
(according to the Survey 2014).
Despite indications of strong
investment intentions in emerging
markets—especially in India—over
the past year, there is reason to
believe that quite a few foreign
investment firms have held back from
an operating perspective, because of
the difficulty of conducting business
in the country.
Other clear reasons for this
mismatch between investment
intentions and actual capital
deployment in India have been
policy restrictions and an inability
to locate the right assets at the right
pricing. Long-term prospects for PE
investments in India’s realty sector
look fairly positive, however, with
added focus on more reasonable
asset valuations.
Local real estate funds
Prominent trends in the sector at
present have involved large funds like
Kotak, ASK and India REITs building
diversified portfolios on the one hand;
while on the other, a steadily growing
tribe of local real estate funds has
been reviving small projects usually
discounted by larger, traditional
funds, with fast deployment of money
and quick exits with reasonable
returns.
Quite a few niche funds have
been investing in affordable housing
projects too. Cases in point include
the Acumen Fund, a New York-based
not-for-profit venture fund, looking to
invest in India’s low-income housing
space in 2014; the Mumbai-based
PE fund, Avenue Venture Real Estate
Fund (AVREF), which has tied up with
the Pune-based Vastushodh Projects,
to invest in the latter’s affordable
housing projects; and Brick Eagle
Capital Advisory, the dedicated real
estate PE investor, which enables
affordable housing development by
incubating companies to fill gaps in
the affordable housing ecosystem.
Meanwhile, on the global front, the
economy is expected to grow faster,
and PE activity is expected to rise as
a result of anticipations of accelerated
deals, mergers and acquisitions.
With global investor interest in Brics
markets and emerging economies set
to increase too, clearly some of the
Brics nations, like India, continue
to remain the key destination for
funds and firms opting to grow their
businesses offshore.
Anshuman
Magazine
CMD, CBRE South
Asia Pvt Ltd
‘Rise of high-rises worse in India’:
Architect Rewal
Raj Rewal, one of India’s leading
architects, says the country’s building
design is in desperate need of a
paradigm shift to meet the rising
standards of living. “In order to meet
rising standards of living and building
requirements, we have to innovate
and think in new directions. The
paradigms of building design have
to shift,” said 80-year-old Rewal at
the launch of a major exhibition in
New Delhi showcasing his work till
June 15.
The show ‘Raj Rewal: Memory,
Metaphor and Meaning in his
Constructed Landscape,’ showcases
50 years of the legendary architect’s
work at the National Gallery of Modern
Art (NGMA). s, films, drawings and
models is set to continue till June 15.
“Many political parties have in
their election manifestos talked about
creating smart cities. In this exhibition
my attempts are at low cost social
housing, which can be attempted on
a large scale,” he said. Hailing from
Hoshiarpur in Punjab, Rewal has
completed five decades in the field
of architecture. Some of his works
include the Indian embassy in Beijing
which is powered with solar energy.
The architect is unhappy with the
rise of buildings in the country, which
he terms as copycat of structures in
Western countries. “It is more worse
in India compared to other countries
when buildings are built on large
scale. A building should be worked
out on certain values and ideas. It
will make the life far more interesting
and lively even to the lowest level of
people,” he said.
He gives example of low cost
prototype buildings for Navi Mumbai
that he had built. “One-room
apartments and two-room apartments
which were built in Navi Mumbai for
Rs 1 to 2 lakh.”
Indians top investors
in Dubai real estate
Single window clearance
must for housing: C&W
Indians have topped the list of
foreign investors in real estate in
Dubai, pumping in $1.6 billion during
the first quarter of 2014, according to
a government agency. According to
Dubai Land Department (DLD), 111
nationalities secured property deals
in the first quarter of 2014. Indians
were at the top spot for international
investment, both in terms of thenumber
of investors (2,414) and the amount
of expenditure ($1.6 billion or 5.895
billion dirhams), according to the data.
Global property consultant
Cushman & Wakefield recommended
a single-window clearance for
housing projects to tackle rapid
urbanisation. “Execution of projects
is one of India’s main weakness;
it truly fuels the culture of slower
implementation. India must move
towards a single window clearance
so that 18-24 months are not spent on
getting permissions,” said C&W and
PHD Chamber in a joint report.
Besides single window clearance,
C&W listed out several measures to
tackle rapid urbanization including
British ranked the second, making
3.145 billion dirhams worth of
investments, followed by Pakistanis
with investments totalling 2.410 billion
dirhams. Emiratis were ranked as the
highest among all investors in terms
of the value of investments.
According to DLD, real estate
sector’s investments totalled $9.5
billion during the first quarter of
2014, which represents a 57 per
cent increase over the same period
last year.
innovative use of land, adequate
funding, doing away with Rent Control
Act, promotion of rental housing,
incentives on affordable housing,
credit access to people falling in
EWS/LIG categories.
The Delhi Development Authority
Chief Vigilance Officer Sunil Gulati
favoured vertical development and
rental housing to boost supply of
residential properties. “Almost 10-
15 per cent of urban properties are
vacant. Huge investment is blocked,”
he said, while pitching for the
amendment of the Rent Control Act.
9. April 28 - May 05, 2014 9EQUIPMENT
bauma China again attracts
strong interest
AEM updates equipment safety manuals
TWS to premiere two new
washing solutions
Although the pace of growth on
the Chinese market is slower than
previous years, the International
Monetary Fund (IMF) is still predicting
GDP there to expand by 7.3 per cent
in 2014. This positive picture is not
without impact on the situation as
regards applications to exhibit at
bauma China, which takes place
from November 25 to 28, 2014 in
Shanghai.
On the basis of the applications
received by the official deadline of
the end of February, it is clear that the
seventh edition of this International
The Association of Equipment
Manufacturers (AEM) has updated
its Roller Compactor and Directional
Drilling Tracking Equipment Safety
Manuals with new pictorial graphics
that conform to ISO and ANSI
standards and are included in the
AEM Pictorial Database. The safety
manuals’ updated graphics more
clearly reinforce manual safety text,
and they harmonize with current
Pit and quarry operators can look
forward to more innovative ways
to wash sand, gravel, aggregates,
and C&D waste thanks to two new
solutions from Terex Washing Systems
(TWS) to be officially launched and
showcased at Hillhead 2014, in
Buxton, Derbyshire, England, during
June 24-26, 2014.
Hillhead will provide the stage
to showcase the Terex Aggresand
Range to include the 165 (up to
250 tph) and the latest addition, the
new larger Terex Aggresand 206
(up to 400 tph), as well as the Terex
Aggrescrub 150 (up to 150 tph) plant.
These new innovative modular wash
plants will help to revolutionize the
washing market on a global level.
3 aggregates, 2 sands, 1 machine:
The Aggresand 206 wash plant is the
larger model of the recently launched
Aggresand 165 (up to 250 tph) model
and has greater capacity, up to 400
tph, and comprises a 20x6 screen
with two and three deck options.
The Aggresand 206 plant brings
modern modular design features,
increases productivity (up to 400
tph), and shares all the unique
features of the Aggresand 165 wash
plant. Customers will benefit from
the unique design which includes
full containerization of the machine
for ease of transportation, rapid set-
up time, pre-wired & pre-plumbed
plug & play componentry, isolated
spray bars and a HMI control system,
which have been delivering efficient,
Trade Fair for Construction Machinery,
Building Material Machines,
Construction Vehicles & Equipment
will again be taking up all the
available space at the Shanghai New
International Centre (SNIEC), that is,
200,000 sq m of indoor and 100,000
sq m of outdoor exhibition space.
The figures are impressive. Almost
2,200 exhibitors have so far signed up
to take part. That’s a good 200 more
than at the same point in preparations
ahead of the last event. Collin Davis,
Exhibition Group Director at Messe
München, is pleased. “We have had a
machine safety sign and manufacturer
manual practices.
The AEM Pictorial Database is a
free online resource with 145 pictorials
that can be downloaded through a
variety of graphics and computer-
aided design software packages.
AEM created the pictorial
database as an industry service
to help companies communicate
effective safety messages through
productive performance for current
owners.
I n a d d i t i o n , t h e l e v e l o f
serviceability within the Aggresand
wash plant range is unrivalled within
the industry with innovative features
such as rolling chutes and rolling
centrifugal pumps. TWS has also
included sensors throughout the
machine providing the operator
with information on water pressure,
cyclone feed pressure, and electrical
power consumption, making the
operation and management of the
machine highly efficient.
Director of TWS, Sean Loughran,
commented, “The market has really
embraced the Aggresand wash plant
concept with exceptional demand
at the moment around the world.
To date, TWS has installed multiple
Aggresand 165 wash plants in Ireland,
UK, parts of Eastern Europe, USA,
Canada, Australia and Austria.
“Customers are also finding it
easier to secure planning and finance
for these modular plants as opposed
to traditional static set ups. We are
constantly looking at innovative ways
to further enhance and develop our
existing products so we can continue
to meet the individual needs of our
customers.”
Quarry owner, Humphrey Dowling,
proud owner of the first ever
Aggresand wash plant commented,
“The throughput currently being
achieved on the plant is excellent
and the quality of the aggregates
very good response from companies.
The high number of exhibitors
registered at this early stage is a clear
indication of how important bauma
China is for the Asian construction
machinery market,” he said.
Also very satisfying, alongside
the high level of applications, is
the continuing strong interest from
countries around the world. In total
there will be nine country pavilions
at bauma China 2014, from Austria,
Finland, Germany, Great Britain, Italy,
Korea, Spain, Turkey and the US.
consistent industry-recognized
pictorial representations.
AEM safety manuals are industry-
consensus safety documents written
in clear language presented in an
easy-to-follow format. They are a
convenient and cost-effective way
to provide safety information to
operators. The AEM safety manuals
are not a substitute for manufacturer
manuals.
and sands being produced is very
impressive. The high performance
two deck vibrating grid allows us to
feed material directly from the face of
the quarry, at 200mm, large material
is scalped off while the minus 50mm
material goes straight into the wash
plant. This eliminates the need for
expensive pre-screening of the feed
material.”
New high attrition scrubbing: The
second new innovative product to
be unveiled at Hillhead 2014 is the
new Aggrescrub 150 (up to 150
tph) plant, particularly suited to the
C&D recycling market. Key benefits
for customers include the improved
wear characteristics, reduced costs,
and the ability to effectively scrub
aggregates and float out clays/
silts/lights (wood/plastics) on one
chassis. In addition, there are also a
number of paddle options available
depending on customers’ needs,
including the traditional hard wearing
Hardox blades in 15 mm and 30
mm variances as well as a new high
manganese steel option.
Terex Materials Processing
(Powerscreen and Terex Finlay) has
a long history in the manufacture
of logwashers and the experience
gained in the field has resulted in
what is truly a 21st century aggregate
scrubbing plant.
It also shares many of the
innovative features of the Aggresand
range including modular design,
quick and easy set-up, pre-plumed
CE market in APAC
to grow at CAGR 22.12 pc
The analysts at market research
firm, Research & Markets, forecast
the construction equipment market in
the APAC region to grow at a CAGR
of 22.12 per cent over the period
2013-2018. One of the key factors
contributing to this market growth is
the increasing in investment in the
infrastructure industry.
The construction equipment market
in the APAC region has also been
witnessing an increase in adoption of
construction equipment on a rental
basis. However, the increasing cost of
construction equipment could pose a
challenge to the growth of this market.
The report has been prepared
based on an in-depth market analysis
with inputs from industry experts.
The report focuses on the APAC
region; it also covers construction
equipment market in the APAC region
landscape and its growth prospects in
coming years. The report also includes
a discussion of the key vendors
operating in the market.
Though several organizations
across industries prefer latest
construction equipment technology
in order to improve their productivity,
several SMEs find it difficult to buy
such equipment because of the high
cost.
In addition, the increased
competition among vendors is forcing
vendorstodifferentiatethemselvesfrom
other vendors by providing innovative
and value-added services. Therefore,
construction equipment vendors
are offering equipment on lease.
Hence, some construction
equipment vendors have started
offering equipment such as excavators,
wheel loaders, motor graders, crawler
cranes, truck cranes, and truck
mounted cranes on a rental basis.
Thisallowscost-drivenorganizations
in developing countries to opt for
the latest technology construction
equipment at minimal cost, thereby
improving their operational productivity.
Thus, the option of renting construction
equipment encourages customers
to use a wide range of construction
equipment.
A c c o r d i n g t o t h e r e p o r t ,
the Infrastructure industry in key
developing countries such as China,
India, and South Korea is expected to
attract a high level of investment based
on its various planned construction
projects to develop the countries’
transportation, housing, and energy
infrastructure facilities.
Further, the report states that
a major challenge in the market is
the increasing cost of construction
equipment. The prices of construction
equipment are increasing due to the
rising prices of raw materials.
pipework, pre-wired electrics, a
HMI control panel and a web frame
chassis design.
The hull acts as a scrubber and
also as a water bath. The Terex
Aggrescrub 150 model is fitted with a
newly orientated DW062 (6’x2’) trash
dewatering screen which dewaters
any floated off trash including plastics
and organics.
The scrubbed aggregate is rinsed
and sized on a DW125-2D (12’x5’)
two deck screen, to produce three
clean aggregates for stock piling.
Access and serviceability on the
Aggrescrub plant is second to none
with full galvanized walkway access
around the entire plant.
Seamless integration: Another
unique benefit to customers is the
ability of the Terex Aggresand wash
plant and Terex Aggrescrub 150 plant
to combine to provide the perfect
solution for customers dealing with
recycling applications as well as pit
owners with high agglomerations
of clay.
The innovative, intelligent and
user-friendly control system on
both plants allows full integration
between the two systems through the
connection of a single plug-and-play
cable. Through this pioneering control
system, seamless communication
allows the plants to work as a single
entity with all interlocks including
start-up and shutdown sequences
automatically synchronizing, which
further minimizes the amount of
on-site installation & commissioning
required.
Indeed, the Aggresand and
Aggrescrub combination is set to
become the benchmark in modular
wash recycling plants for years to
come.
Hillhead will provide the first
opportunity for customers to see
first-hand these innovative washing
solutions. A team of skilled engineers,
applications and sales technicians
will be there to provide expert advice
and guidance with your specific
requirements.