Construction Industry Review 17-2014


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Construction Industry Review 17-2014

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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.