Industry Analysis on Construction Industry. 1950 to mid 60’s- govt. Play an important role in development Construction activities carried by state owned enterprises and supported by govt. Departments First professional consultancy company – NIDC (1953) Design engineering and construction companies were set up in the public sector

1. PRESENTED BY,
GROUP 1
INDUSTRY ANALYSIS
On
CONSTRUCTION INDUSTRY

2. HISTORY
• 1950 to mid 60’s- govt. Play an important role in
development
• Construction activities carried by state owned enterprises
and supported by govt. Departments
• First professional consultancy company – NIDC (1953)
• Design engineering and construction companies were set up
in the public sector

3. • The Indian construction industry comprises 200 firms in the
corporate sector.
• In addition to these firms, there are about 120,000 class A
contractors registered with various government construction
bodies.
• There are thousands of small contractors, which compete
for small jobs or work as sub-contractors of prime or other
contractors.

4. CHARACTERISTICS
• Differentiated from other industries by its organization and
products, its stakeholders, its projects, its processes, and its
operating environment.
• National statistical data divide the construction industry into
three subsectors:
• construction of buildings
• heavy and civil engineering construction
• specialty trade contractors

5. GDP CONTRIBUTION
• In India Construction has accounted for around 40 per cent
of the development investment during the past 50 years.
• Around 16 per cent of the nation's working population
depends on construction for its livelihood.
• The Indian construction industry employs over 30 million
people and creates assets worth over 200 billion.
• It contributes more than 5 per cent to the nation's GDP and
78 per cent to the gross capital formation.

6. • In the 21st century, there has been an increase in the share of
the construction sector in GDP and capital formation.
• The main reason for this is the increasing emphasis on
involving the private sector infrastructure development
through
• public-private partnerships and mechanisms like build-
operate-transfer (BOT),
• private sector investment has not reached the expected
levels.

7. LEADING PLAYERS
•Larsen &Toubro (L&T)
•Punj Lloyd Group

8. LARSEN &TOUBRO (L&T)
• Larsen &Toubro (L&T) remains the undisputed
number one infrastructure company in India.
• Today, L&T continues to build on its reputation by
maintaining an all round growth across the
infrastructure segments where it operates.
• The recently concluded fiscal has been quite good
for the company.
• The Profit after Tax for the year at Rs.5451 crore
grew by 44% as compared to the previous year.

9. • Subsidiaries and associate companies together contributed
Rs613 crore to the Group's profits
• The Group’s total income registered Rs. 43970 crore vis-a-vis
Rs40511 crore for the previous year.
• The huge order book gives ample visibility to the company’s
continued leadership position.
• L&T is well poised to take advantage of the opportunities
presented by India's amazing infrastructure development.
• L&T has considerable presence and capabilities in the
international markets.

10. PUNJ LLOYD GROUP
• Punj Lloyd Group's consolidated total income for
FY2010 stood at Rs10,539 crore
• Quite pleased at the financial performance of the
Group
• Some of our large wins include India’s largest solar-
based EPC contract as well as two projects from
Mangalore Refinery.
• The results of our initiatives enhance confidence in
our capabilities and strengths.
• This year, the Group also won its first project in
Thailand.

11. CONCLUSION
• The Indian economy has witnessed considerable progress in the
past few decades.
• Most of the infrastructure development sectors moved forward,
but not to the required extent of increasing growth rate up to the
tune of 8 to 10 per cent.
• With the present emphasis on creating physical infrastructure,
massive investment is planned in this sector.
• Public Private Partnerships (PPP) approach is best suited for
finding the resources.
• Better construction management is required for optimizing
resources and maximizing productivity and efficiency.