2. F+liltllli*f): Inousrnv SPenxs
66
It would be better if the
project planners focus
more on quality of the
raw materials being used
for the project rather
that selecting sPecific
'make'. lt will help project
competitiveness and
meeting deadlines.
- .layanta Chakrabortv'
5enior GM - SCM,
Phenix Construction
Technologies
jl:
l
ti
I
ll
l
ll[28PuRcHrst ll oclober 2014
Focus on quality rather
than'make'
With a state-of-the-art manufacturing
facility at Sanand in Gujarat, equipped
with a production capacity of 72,000 MT
per annum, Phenix operates with the
unmitigated zeal to redefine and give
a new dimension to the constructlon
and infrastructure sector. lt leverages
the core competencies of the M&B
Group in the infrastructure development
business and draw upon the,expertlse
and technological prowess of its various
international knowledge partners.
Phenix Construction TechnoQgies,
a division of M&B Enqineering Ltd. and
part of the M&B Group, is a future-
ready steel construction solutions
provider that specialises in the design,
manufacturing and installation of Iight
to heavy and complex steel structures
. and PEBs. Mr Chakraborty senses huge
opportunities through proposed projects
by government.
Smart oPPortunities
lndian Government Plans to build
100 smart cities. This is really a great
opportunity for construction industry
and has been part of PM Narendra lvlodi's
racchi din'vision.
The aim is to build satellite towns
near existing urban areas on the smart
city template, upgrade existing mid-sized
cities, and to build settlements along
industrial corridors. This is the foundation
of speculating / imagining. what type
of projects are cominq up. According to
Mr Chakraborty, for such infrastructure
projec! a model city of Shanghai fits the
definition ofa smart city. The following are
the probable upcomings for PEB industry
in particular:
. Multistory buildings (typical multi story
buildings which is yet to catch in India
and has tremendous potential in PEB
segment)
. Bridge girder segment (for making
flyovers and road / rail over bridges)
. Metro railways (metro stations - good
potential for PEB seqment)
. Airports
. Small and medium sized industries -
which will grow as a satellite to these
(ities (making building factory sheds)
. Warehousinq sectcir (buying
conventional warehouses)
Don't expect overnight change
Current trend of procurement of such kind
of project will not be changed dramatically
on this new concept. Although the project
is announced and budget is allocated, the
concept is still on the drawing board'
"lt is obvious that such kind of projects
needs perfect vision to make is happen
and successful. Hence it is expected
that conceptualisation will take a long
timei' says Mr Chakraborty. "However,
our Central Government may take a very
smart and quick decision. engaging right
kind of people, experts, consultants to act
first and bring the project out of drawing
board:
Hurdles in the way
lf the implementation takes very fast,
there will be a sudden and high demand
in the market in PEB segment too.This may
happen particularly in high-rise buildings
segment, where PEB segment in lndia is a
toddler. Big cities on global platform have
multi-story buildings where the structure
is made out ofstructural steels (not cement
and mortar concept). This seqment needs
special thin walled hollow sections, which
has very low potential in lndia at the

3. moment. Hence the industry needs to
be geared up.
The second challenge is the
building technology Part which is
hardly existing in lndia. The third
challenge is regarding lifestyle issue
- the structural members are all mild
steel product susceptible to rusting.
This is going to be major challenge.
Quality matters
Steel flat product and long product
is passing through a demand plateau
phase. Price is also going on in the
same space. There is hardlY anY
chance that the Price will 90 down
further. Project consultants can play
a major role in curbing the situation.
It is suggested that theY enhance
the approved vendor list, enabling
project executors to widen their
sourcing channel and procule ri9ht
quality and on time. This will helP
Indian sME's, who are making long
product in particu lar.
h'rousrnY Spuxs
"lt would be better if the Project
planners focus more on quality of the
raw materials being used for the project
rather that selecting specific 'make:
It will help project competitiveness
and meeting deadlinesi says Mr
chakraborty.
For customers
Customers must evaluate the PEB
manufacturers in terms of their
production capacity, required plant and
machinery availability
Also financial soundness of the
manufacturer, quality requirements
and track record of Past Projects
executed by them must be considered
by customers.
Best suit plan
Methodology of procurement is project
specific and the strateqy is adopted
'best suit'for the project. The two maior
challenges project procurement team
faces are:
. Stock out: affecting produttion loss
and stretching deadline
. Over stocking: attributing to fund
flow and liquidity.
"The best suit plan to face such
challenges is to make planning at the
micro level, long-term contract w,th
the suppliers and making suppliers
warehouse as your stock Yard," saYs
Mr Chakraborty. "The fund Planninq
should also be Perfect and client
should maintain payment timelines as
per deadlines, otherwise liquidity will
be an issue with the project executorsl'
There should be a detail budget
prepared for the project, splitting it
into major components and evaluate
the procurement performance based
on the budget plan.lt will be a financial
health check up for the Project and
cost over run can be identified at the
beginning of the project and necessary
controlling measure can be adopted to
curb such cost over-run. I
1
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I
Enhance Productivitv and Performance
Industrial Adhesives and Tapes Division
3l4 India Lirnited
Concorde Block, uB City, 24, Vittal Mallya Road, Banqalore - 56000'1.
Tel i +91-80- 22231414 / 6659575s
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