How is RERA and GST for the world of fenestration?

1. /ConstructionWorldmagazine
/CWmagazine
www.ConstructionWorld.in
®
`600 Annual 2017
A N NIV E
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2. CONTENTS
2 Construction World www.ConstructionWorld.in
COVER STORY
INDIA'S FASTEST GROWING COMPANIES
A NEW ORBIT
62 METHODOLOGY
64 JURY MEET
67 FASTEST GROWING CONSTRUCTION COMPANIES
91 FASTEST CONSTRUCTION EQUIPMENT COMPANIES
105 FASTEST CEMENT COMPANIES
125 FASTEST STEEL COMPANIES
135 FASTEST PAINT COMPANIES
145 FASTEST TILE, CERAMIC &
SANITARYWARE COMPANIES
34
86
134
142
88REWRITING THE RULES
Digital technologies are
transforming the construction
industry, bringing in benefits
across the board, asserts
SN SUBRAHMANYAN,
CEO and Managing Director,
Larsen & Toubro.
THE COLOUR OF
CONFIDENCE
Driven by product and
service-level innovations and
an enabling policy
environment, the Indian paint
sector will witness a tectonic
shift in the near future,
according to ABHIJIT ROY,
Managing Director & CEO,
Berger Paints India.
A N NIV E
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SARY
21
NEW DIRECTION
MUKUND SAPRE, CEO,
Infrastructure Leasing &
Financial Services (IL&FS),
elaborates upon the dawn of
different realities in the
roads sector.
TRANSPARENCY,
THE WINNER
DR PRASHANTH REDDY,
Managing Director, FunderMax
India, discusses the implications
of GST & RERA on the
real-estate industry.

3. CONTENTS
4 Construction World www.ConstructionWorld.in
A N NIV E
R
SARY
21
131
98
154
122
FROM CHALLENGE
TO OPPORTUNITY
ALOK SANGHI, Director,
Sanghi industries, discusses
the implications of the new
economic realities for the
cement sector.
COMPOSITE GAINS
JEFF RODRIGUES, Managing
Director, Owens Corning India,
explains how the company is
leveraging new realities to drive
the growth of composites.
94
114
141
102
THE CHALLENGE
OF THE 4 CS
K RAVI, Managing Director,
NCL Industries, elaborates
upon the challenges inherent
in the new reforms and
strategies to overcome them.
TOUGH TIMES
Going forward, the new economic
policies will improve efficiencies
in the manufacturing sector, avers
DEEPAK GARG, Director & CEO,
SANY South Asia & SANY Heavy
Industry India.
PAINTING THE FUTURE
Against the backdrop of policy
changes, the paints industry is
experiencing a shift driven by
technology and a more aware
consumer, says ANUJ JAIN,
Director-Decorative and
Industrial Sales & Marketing,
Kansai Nerolac Paints.
A NEW ERA
Demonetisation, RERA, GST and
the granting of infrastructure
status to affordable housing
have made this a game-
changing year, says SEBI
JOSEPH, President, Otis India.
RIDING THE WAVE
Prefabrication is the future of
construction in India, asserts
PRADEEP NAIR, Managing
Director, Autodesk India
and SAARC.
GEARING UP FOR
GROWTH
R&D and innovation would be
the catalysts for future growth
of any company in infrastructure,
says PRADEEP SHARMA,
President, ACE.

4. CONTENTS
6 Construction World www.ConstructionWorld.in
152
151
153
118
120
132
155
130
150
144
MONEY
METHODOLOGY
It will take innovative financing
to reduce the NPA burden on the
infrastructure sector, explains
VIJAY AGRAWAL, Executive
Director, Equirus Capital.
GETTING ORGANISED
Recent government measures
will bring in accountability and
regulation to the real-estate
industry, affirms R SHOBHA,
National Director-Project
Management, Colliers.
BRICK BY BRICK
RAJESH KRISHNAN, Founder &
CEO, Brick Eagle Group,
discusses the impact of RERA on
the affordable housing sector.
REAL BENEFITS
SANJAY JAIN, Group Managing
Director, Siddha Group, explains
how the Government’s reforms
will improve buyer sentiment,
increase sales and propel growth
in real estate.
A N NIV E
R
SARY
21GROWTH TONIC
Short-term pain aside, the
Government’s recent policy
initiatives offer the prospect
of long-term gain, writes
KE RANGANATHAN,
Managing Director,
Roca Bathroom Products.
THE DIGITAL
ADVANTAGE
K RAVICHANDRAN, Senior
Vice-President & Group Head,
Corporate Ratings, ICRA, says
the adoption of digitalisation is
key to reaping the benefits of
recent policy changes.
WINDS OF CHANGE
Change is hard at first,
messy in the middle and
gorgeous in the end, writes
VIKAS KHEMANI, CEO,
Edelweiss Securities.
TOUGH TIMES
Despite the long-term benefits
from developments like
demonetisation, RERA and GST,
distress in real-estate
construction will linger, predicts
BINAIFER F JEHANI, Director,
CRISIL India.
TRANSFORMATIVE
TECHNOLOGY
AVINASH K GAUTAM, Founder
and CEO, Silvan Innovation
Labs, discusses the potential
and challenges of Internet of
Things in real estate.
ECONOMIC
EVOLUTION
The landmark decisions
taken in the past year will be
constructive for the
real-estate sector in the long
run, reasons ANSHUMAN
MAGAZINE, Chairman-India
and South East Asia, CBRE.

5. 8 Construction World www.ConstructionWorld.in8 Construction World
CONTENTS
IN THIS ISSUE
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Dhola-Sadiya: India’s Longest River
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Elevators & Escalators...74
Tunnelling & Trenching Equipment...96
Is it Raining Potholes in Mumbai?...68
/ConstructionWorldmagazine
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®`200 August 2017 ol.19 No.11
10 companies share smart moves and strategies that helped
them sail through tough tides in the last fiscal....54
TOP CHALLENGERS
60+ Upcoming Projects, Product
Launches, Building Material Prices,
Tenders, Contracts Awarded
and more...138, 152, 158, 156, 154
NEW LOOK
2016-17
Earthmoving Equipment...80
Road Technologies...90
Interviews: Maharashtra State
Road Development Corporation;
Brick Eagle...78, 98
Union Minister of Urban Development
Venkaiah Naidu launches the new CW logo...16
` 200 March 2017 ol.19 No.6
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RAILWAYS
AIRPORTS
SMART CITIESPORTS
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`64,900 crore
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With `396,135 crore allocated for infrastructure in FY17-18, all eyes are on public spending.
CW reviews the spend and the opportunities on the anvil....56
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NEW LOOK
CONSTRUCTION WORLD - MAN OF THE YEAR
- PUBLIC SECTOR
ELIAS GEORGE,
Managing Director,
Kochi Metro Rail Ltd
18 Desk
10 Index
22 India’s Top Challengers
156 Nominations
164 Communication Features
173 Addresses
183 Advertiser’s Index
96
184
www.ConstructionWorld.in
POSITIVE IMPACT
MARIO SCHMIDT, Managing Director,
Lingel Doors and Windows, explains how
RERA and GST will be good for the facade and
fenestration segments.
A N NIV E
R
SARY
21

6. 18 Construction World www.ConstructionWorld.in
ANNUAL 2017 DESK
EDITOR'S NOTE
Last year, as CONSTRUCTION
WORLD turned 20, we were on our way
to an upswing in the economy after a
long period of legal and administrative
procrastination. Here’s what I wrote in
the editorial in October 2016:
During the current regime of the
NDA government, the narrative has
shifted from unclogging, untangling,
unblocking to easing, simplifying,
digitising, and is now in the process
of shifting to acting within timelines.
Laws have been deleted, rules have
been tweaked, and impetus to be
proactive and business-friendly
within the framework of law has been
provided. Road projects have been the
first to accelerate, the Railways has
restructured its orientation and Airports
are set for take-off. Smart Cities have
replaced the urban renewal mission
and Swachh Bharat has become the
common code of call. India has been
marketed globally like never before and
this has been most timely as its growth
in GDP is at its most feverish pace.
Oil prices have been favourable and
so also the rain gods. The stage is
set for a revival and the dewdrops of
a new morning are glinting in the rays
of the rising sun.
Then, on November 8, 2016, the
government’s demonetisation move
followed by GST in July 2017 knocked
the wind out of the sails. The economy
has suffered, as reflected in our GDP
growth, which dived to 5.7 per cent.
Where is the problem?
The national agenda appears to be
motivated more towards elections than
the fixing of the economy. It is time to
change the order of priority. According
to CMIE, announcements of new
industrial and infrastructural projects
remained muted in the first quarter
of 2017-18. Only 448 projects were
announced during the quarter.
This is the lowest quarterly project
announcement seen since June 2014,
the time when the last capex cycle
bottomed out.
Further, the completion of projects
has dipped over previous consecutive
quarters. Lower project initiation and
a falling commissioning rate will be
a double whammy – the only way to
change this situation is to enhance the
rate of commissioning of the project
pipeline and, at the same time,
improve the launch of new
infrastructure projects.
One of the biggest reasons why
infrastructure projects failed was the
non-availability of long-term finance
to match the gestation period required
in infrastructure project financing.
The bullet train project is being funded
by the Japanese over a 50-year period
with a 15-year moratorium! However,
our infrastructure projects all set sail
on a seven-year tenure funding. How
were they likely to remain sustainable?
How did bankers and governors even
fantasise that the projects would
turn profitable and repay their loans
in such short tenures? This premise
itself was flawed. Given the business
environment with our archaic laws and
land acquisition issues, the time taken
to sustain would have been longer
rather than shorter. Even hotels require
a seven-year gestation.
Now, the government has already
nearly exhausted the option of
aggressive public spending in keeping
with the requirements of targeted
deficit of 3.2 per cent. This means one
lifeline has been exhausted. Given the
fact that inflation is yet not a worry,
A N NIV E
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21
CALL TO ACTION
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Falguni Padode
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Construction World
www.ConstructionWorld.in
18 Construction World

7. 150 Construction World
ANNUAL 2017 VIEWPOINT
www.ConstructionWorld.in
About the author:
Vikas Khemani, CEO, Edelweiss Securities,
has over 20 years of experience in capital
markets and investment banking. He has been
instrumental in setting up, building and
scaling up several businesses at Edelweiss.
He is also a member of the Edelweiss
Management Committee.
WINDS OF CHANGE
I
t is said that change is the only
constant. This could not be more
apt than in the context of the
real-estate sector. The recent
times have seen a paradigm shift or
‘winds of change’ — from
fragmentation to structure and
transparency. This has been aided by
initiatives such as demonetisation,
GST and the proposed RERA, all of
which collectively signal a migration
from the unorganised to the
organised sector in a big way.
A win for organised players
Traditionally, real estate is one of
the sectors under which unorganised
sub-industries thrived, from building
materials to construction and even
labour. With the advent of GST,
there will be a major thrust to the
organised players, as developers
would be keen to avail input credit
from raw material suppliers, resulting
in a stronger bias towards the
organised players.
Another landmark change in the
industry has been the introduction of
RERA, which will lead to an increase
in transparency and streamlining of
many issues of pricing and timely
completion of projects. Over a period
of time, this will lead to consolidation
and players with deeper pockets
will survive, with the smaller players
merging or tying up with large
developers and co-developing assets
in the short and medium term.
In the longer term,
however, it is the ability
and the willingness of
these smaller players
to adapt to an organised
set up that will determine
their sustenance.
Growth drivers
The growth drivers for
residential real estate are
Change is hard at first, messy in the middle and gorgeous in the end,
writes VIKAS KHEMANI.
mainly urbanisation, with rising
income levels and increasing
nuclearisation. An estimated 10-12
million people migrate to urban areas
annually; going ahead, this number
will steadily rise. The vast gap in
affordability and pricing of housing
for the marginalised sections of
society has led to increased
government impetus for affordable
housing and ‘Housing for All’ by
2022. This is also a key demand
driver for this segment. Recently, the
International Finance Corporation
invested $200 million in India’s
leading housing finance companies
to provide loans for affordable
housing. Easy and dedicated access
to institutional financing and
increasing the limit of external
commercial borrowings will attract
more investments such as these,
and assure the sustained growth
of affordable housing in India by
lowering cost of construction.
The benefits will eventually be
passed on to the end-users, making
affordable housing the core driving
segment for real estate.
In a further boost to this sector,
SEBI has approved Real Estate
Investment Trusts (REITs) to list on
Indian exchanges. This again aids
in improving market transparency,
smoothening the volatility of
property cycles, and effectively
lowering cost of capital for
developers. At the same time,
the hybrid nature of the instrument
ensures that investors avail the
twin benefits of yield and capital
appreciation while providing smaller
investors an opportunity to invest
in large-scale, real-estate projects.
Indeed, the sector faces myriad
tailwinds ranging from institutional
interest to more liquid investment
instruments as well as a focus from
the government that bode well for it.
The headwinds it faces are to the
extent that the fringe players
need to professionalise their
set-ups, get in management teams
to set up robust processes as they
streamline themselves in their
transition to an organised set-up to
gain multifold from the realisation of
the India growth story – or face the
risk of obsolescence.
Vikas Khemani,
CEO, Edelweiss Securities
A N NIV E
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21
Urbanisation is the growth driver for residential real estate.
Photoforrepresentationpurpose
www.ConstructionWorld.in Construction World 143
of the new regime. However, though
the transition to the GST regime
had some implementation issues
initially with the new filing system,
it is not expected to play spoilsport
for secondary sales this season.
The introduction of RERA is also
a positive move that will lead to
transparency and improved structure.
As of now, urbanisation levels
in India stand at 32 per cent,
compared to 50-55 per cent in
developed countries. With initiatives
like Housing for All and smart
cities projecting a strong thrust
on infrastructure projects, the
outlook for the Indian paint industry
looks positive.
attributes. Technology-led
innovations like solar paint,
sound-absorbing paints and
flame-retardant paints are
also products that will be
a reality soon in the Indian
market and will not only cater to
niche segments but for usage in
a regular Indian home.
Sustainability is another area
that has caught the imagination
of the Indian paint sector.
Low-VOC products and low
heavy metals in paint are mantras
followed in letter and spirit in
most of our products. In addition
to conventional paints, Berger
Paints has taken a new leap in
the field of sustainable solutions
with the introduction of ETICS
(external thermal insulation and
composite systems) technology
in India. This will help air-conditioned
buildings lower their energy
consumption and reduce their
carbon footprint, making them
environmentally sustainable and
resource-efficient. This is also
the need of the hour considering
national initiatives such as
smart cities and Swachh Bharat.
Another area that has tremendous
scope is improving the painting
process in general. The traditional
painting process in India is a time-
consuming and messy affair. Through
the use of automatic tools, Berger
Express Painting creates a faster,
cleaner and better painting
experience for the consumer at no
extra cost. Convenience is the name
of the game in today’s India, and the
coming years will see a tremendous
change in the way Indian homes
are painted.
While the aforementioned areas
present exciting prospects on
product development in the near
future, it is worth looking at the
market dynamics currently affecting
paint demand and consumer
sentiment. The past 12 months
have been a roller-coaster ride
for the industry. Demonetisation
created a temporary blip but failed
to create any long-term negative
impact in terms of demand.
The introduction of GST had some
impact on primary sales in June
as channel partners were reluctant
to stock material with the advent
About the author:
Abhijit Roy, Managing Director & CEO,
Berger Paints India, started his career in 1991.
He joined Berger in 1996 as product manager and
took over as managing director and CEO in 2012.
The company has continued to grow under his
leadership over the years through organic growth
as well as strategic acquisition and collaborations.
A N NIV E
R
SARY
21
The new reality of the Indian paint industry would be the advent of smart coatings like super hydrophobic paint, stain-resistant coatings (easy clean) and
dust-repellent coatings that are the need of the hour.
This article was featured in October 2017 CONSTRUCTION WORLD, India’s first B2B Construction magazine from the house of ASAPP Media Information Group.
For more details on the magazine visit www.ConstructionWorld.in or mail: sub@asappmedia.com for subscription and sales@asappmedia.com to advertise.
ANNUAL 2017 VIEWPOINT
96 Construction World www.ConstructionWorld.in
About the author:
Mario Schmidt, Managing Director,
Lingel Doors and Windows has been with the
company since 2006, establishing the company
in India and making it one of the top 10 in the
industry. He has also helped build new windows,
for instance, the smart windows.
POSITIVE IMPACT
R
ERA and GST will
affect the façade and
fenestration industry in
a positive manner.
The industry will benefit as there
will be complete governance and
transparency; this will ensure buyers
get the right product that is good
in quality. Delivering the product at
the allotted time will make the
entire process easy. Ensuring
quality and timely delivery of the
product will create confidence and
credibility for both the developer and
the manufacturer.
Now, projects will become more
efficient as the builder will have to
guarantee that the products installed
are of superior quality, else face
action. This will be a good move as
only reputed companies with
good-quality products will survive.
And, it will guarantee that the project
is efficient and delivered on time.
Further, increasing standardisation of
product quality will create a market
for products that will not just last
a few years but at least a decade.
Usually, a building should stand
for about 50 years or more; for this to
MARIO SCHMIDT explains how RERA and GST will be good for the
facade and fenestration segments.
happen, high-quality products should
be used. Buyers who invest in
an apartment expect it to last for
at least 10 years, which usually does
not happen and products may last
for only a year or so. To assure the
quality of products for long-term
investment, RERA will help as it
mandates a five-year warranty
period and a specified timeline.
For our part, we are reaching
an international standard by putting
this maxim into practice, just like it is
practiced in Germany. As a company,
we ensure our products follow
international standards; this will help
our business as competitors producing
inferior quality products will have to
ensure quality or pay the price.
We presume the biggest
positive impact will come from the
countrywide uniform tax system –
which will be applicable only once
for the product. The industry is
happy that the new GST rate is only
18 per cent. Further, our product is
in big competition with large,
unorganised fenestration marked
without tax collection on the final
product – on-site fabrication of wood
and low-end aluminium. Thus, GST
will surely be beneficial for the
industry. For their part, customers
will experience transparency in
pricing and uniformity of taxes for
goods and services. This will bring
down the cost of taxation and there
will be no negative impact as the
trading will take place between the
buyer and producer.
As for demonetisation, it has had
its own effect. We work widely with
retail customers. When their faith
went down from November to
January, our bookings went down
too, similar to the overall industry
and the entire economy. But things
have come back to normal. We have
largely recovered from the impact
and are looking positively towards
the future.
Mario Schmidt,
Managing Director,
Lingel Doors and Windows
A N NIV E
R
SARY
21
Increasing standardisation of product quality will create a market for products that will not just last a few
years but a decade at least.
ANNUAL 2017 VIEWPOINT
96 Construction World www.ConstructionWorld.in
About the author:
Mario Schmidt, Managing Director,
Lingel Doors and Windows has been with the
company since 2006, establishing the company
in India and making it one of the top 10 in the
industry. He has also helped build new windows,
for instance, the smart windows.
POSITIVE IMPACT
R
ERA and GST will
affect the façade and
fenestration industry in
a positive manner.
The industry will benefit as there
will be complete governance and
transparency; this will ensure buyers
get the right product that is good
in quality. Delivering the product at
the allotted time will make the
entire process easy. Ensuring
quality and timely delivery of the
product will create confidence and
credibility for both the developer and
the manufacturer.
Now, projects will become more
efficient as the builder will have to
guarantee that the products installed
are of superior quality, else face
action. This will be a good move as
only reputed companies with
good-quality products will survive.
And, it will guarantee that the project
is efficient and delivered on time.
Further, increasing standardisation of
product quality will create a market
for products that will not just last
a few years but at least a decade.
Usually, a building should stand
for about 50 years or more; for this to
MARIO SCHMIDT explains how RERA and GST will be good for the
facade and fenestration segments.
happen, high-quality products should
be used. Buyers who invest in
an apartment expect it to last for
at least 10 years, which usually does
not happen and products may last
for only a year or so. To assure the
quality of products for long-term
investment, RERA will help as it
mandates a five-year warranty
period and a specified timeline.
For our part, we are reaching
an international standard by putting
this maxim into practice, just like it is
practiced in Germany. As a company,
we ensure our products follow
international standards; this will help
our business as competitors producing
inferior quality products will have to
ensure quality or pay the price.
We presume the biggest
positive impact will come from the
countrywide uniform tax system –
which will be applicable only once
for the product. The industry is
happy that the new GST rate is only
18 per cent. Further, our product is
in big competition with large,
unorganised fenestration marked
without tax collection on the final
product – on-site fabrication of wood
and low-end aluminium. Thus, GST
will surely be beneficial for the
industry. For their part, customers
will experience transparency in
pricing and uniformity of taxes for
goods and services. This will bring
down the cost of taxation and there
will be no negative impact as the
trading will take place between the
buyer and producer.
As for demonetisation, it has had
its own effect. We work widely with
retail customers. When their faith
went down from November to
January, our bookings went down
too, similar to the overall industry
and the entire economy. But things
have come back to normal. We have
largely recovered from the impact
and are looking positively towards
the future.
Mario Schmidt,
Managing Director,
Lingel Doors and Windows
A N NIV E
R
SARY
21
Increasing standardisation of product quality will create a market for products that will not just last a few
years but a decade at least.