Construction Industry Review

June 16-22, 2014 1
An MMR, Braj Binani Group Publication Volume 3 l Issue No 24 l June 16-22, 2014 l Price: Rs 100
Japan, Korea show interest
in Centre’s $4-5 b infra fund
already begun discussions with
potential investors and that the fund
size could be anywhere between
$4-5 billion.
The idea is to boost infrastructure
projects in India, particularly road
In an attempt to provide the much-needed
boost to the infrastructure
sector of the economy, the Narendra
Modi government is planning a
multi-billion dollar infra fund to push
investments. The Road Ministry has
stakeholders. Gadkari held a meeting
with the Highways Ministry and the
National Highways Authority of India
(NHAI) officials recently where it was
decided that region wise reviews of
projects will be held, especially those
that are languishing.
The ministry will also take up the
issue of land acquisition costs as
per the new Land Act and apprise
the minister of the difficulties it will
impose on the highways sector and
the possible alternatives.
projects. Japanese and Korean
investors have already showed
interest in participating in the fund.
A PPP model will be followed for the
projects. .
Union Road Transport, Highways
Centre to fund EPE project after
private players shy away
Housing prices rose by up 7 pc
in 12 major cities: NHB
Housing prices have increased
by up to 7.1 per cent in 12 major
cities, including Delhi and Mumbai,
in January-March period of this year
due to a surge in demand, said the
National Housing Bank (NHB).
The prices witnessed an increase
ranging from 1.3 per cent in Bhopal
to 7.1 per cent in Surat in comparison
to that in the previous quarter of
October-December, 2013, stated the
quarterly update of NHB Residex.
Prices, however, fell in 12 other
cities, ranging from -0.6 per cent in
Vijayawada to -5.7 per cent in Patna.
Indices for Faridabad and Kochi
remained stagnant. Ahmedabad
saw a price rise of 6.1 per cent,
Chennai 5.8 per cent and Kolkata
5.1 per cent.
Lucknow saw 4.9 per cent rise,
Raipur 4.4 per cent, Mumbai 3.2 per
cent, Nagpur 2.9 per cent, Dehradun
2.7 per cent, Hyderabad 2.2 per cent,
Delhi 1.5 per cent and Bhopal 1.3
per cent.
Cities which witnessed a decline
include Jaipur (-3.8 per cent),
Guwahati (-3.75 per cent), Bengaluru
(-3.6 per cent), Meerut (-3.5 per cent),
Cidco implements
26-point agenda
for PAPs in Navi Mumbai
After failing to get private players
to build the Eastern Peripheral
Expressway (EPE) on toll mode in
the past six years, the Centre is
now set to fund the project. To push
widening of the Gurgaon-Jaipur
highway stretch, bankers have been
asked to submit their plan to replace
the present developer before the
August 23 deadline. These were two
of the delayed projects discussed
at a high level meeting on June 10,
where officials from the NHAI and the
Road Ministry were present.
Sources said the Road Ministry
will soon move a proposal on the
public funding of EPE for government
approval. The 135 km expressway
project connecting Palwal (NH-2),
Ghaziabad (NH-24) and Kundli
In a path-breaking initiative
for all inclusive development of
PAPs of Navi Mumbai, Cidco has
implemented a 26-point programme
to expedite process of 12.5 per cent
scheme and resolve other related
issues, benefitting thousands of
PAPs of the region. The programme is
aimed at bringing more transparency
and channelizing the rehabilitation
activities.
The programme for welfare of PAPs,
which was approved by the board of
directors of Cidco in August 2013, has
helped people of 95 villages which
have been impacted by development
projects in Navi Mumbai.
The one-of-its-kind PAPs welfare
and rehabilitation programme charted
out by Cidco has witnessed digitization
of records, training and employability
plan for youth, allotment of land
for public amenities, creating social
infrastructure and financial assistance
of various cultural activities of PAPs.
The 26-point agenda, a brainchild
of Cidco’s Vice Chairman & Managing
Director, Sanjay Bhatia, is in keeping
with the commitment given to
PAPs regarding compensation and
rehabilitation.
The success of the programme
can be gauged from the fact that
nearly 80 per cent of the 12.5 per
cent land compensation scheme is
complete. The scheme is to give back
(NH-1) would cost the government
nearly Rs 4,500 crore.
The government funding won’t be
a bad proposition in comparison to
the proposal of providing government
assistance up to 40 per cent to make
the project financially viable for any
successful private player.
In case of government funding, the
NHAI will have the right to collect toll and
recover the investment. According to
officials, there was detailed discussion
on the much delayed Gurgaon-Jaipur
highway project in which the bankers
also participated.
“We have asked them to submit
their plan to replace the developer.
Since the lead banker has to consult
the other financial institutions that
have provided loan to this project,
a plot 12.5 per cent proportionate to
the area the PAP has surrendered for
Navi Mumbai.
Cidco initiated a movement to clear
files in a stipulated time and bring
more transparency in the system.
Entire data has been digitized and
allotment is now done village-wise
instead of individual basis as earlier.
I t has also planned cluster
development scheme for the PAPs
who have raised unauthorized
structures for their needs in the past.
They will also get additional FSI. The
compensation, rehabilitation and
resettlement package, better than
the provisions of the recent Land
Acquisition Act, has been prepared
and approved by the state government
for the PAPs of the Navi Mumbai
International Airport.
Cidco is also partnering with the
Tata Institute of Social Sciences (Tiss),
which is engaged in skill development
of the PAPs and preparing them
for various competitive exams. Its
tie-up with the National Institute of
Fashion Technology (Nift) has seen
49 PAP women completing their dress
designing course.
Besides monetary benefits to the
PAPs, Cidco has made it mandatory
for contractors to sublet the work
such as ground leveling of the airport
area to the tune of 50 per cent to the
PAPs.
we have given them time. We expect
them to come out with the proposal
in the next few weeks,” said an NHAI
official. Since in all such projects, the
finances of banks are involved, they
have the first right to substitute the
developer. If bankers fail to do so,
the NHAI can take over the project,
said sources.
The Road Ministry and the NHAI
also discussed the much-delayed
6- laning of Panipat-Jalandhar
highway project. Officials said that
a decision was taken to file a review
petition in the Supreme Court seeking
re-examination of its verdict. The
apex court had directed the NHAI to
allow shifting of two toll plazas and
granting extension till March 2015 to
complete the project.
& Shipping Minister Nitin Gadkari is
expected to meet the likely investors
in the next few weeks. The fund
could see the light of day very soon,
with the government working on a
less than six months’ timeline. The
minimum commitment guarantee
to be given to investors could be 3
per cent.
The slow-moving highway projects
are likely to be kick-started with the
Highways Ministry planning to review
all ongoing projects along with all
Bhubaneshwar (-3.47 per cent) and
Ludhiana (-3.3 per cent).
Prices fell in Chandigarh by (-2.7
per cent), Coimbatore (-1.7 per cent),
Indore (-1.6 per cent), Pune (-1.3 per
cent) and Vijayawada (-0.6 per cent).
The Residex for the quarter January-
March 2014 constructed for 26 cities
has taken into account the price
trends for residential properties in
different locations and zones in each
city. It is based on the transaction data
received from the Central Registry of
Securitisation Asset Reconstruction &
Security Interest of India (CERSAI).

Building materials June 16-22, 2014 2
Import: Cement, Cement Products & Building Materials
Date Product Description Port Code Foreign Port Quantity (Kgs) Value (Kgs) CIF Rate
Refractory bricks, blocks & tiles
3/1/2014 CERAMIC MUM CHINA 27706 2244006.38 81.0
3/4/2014 ALUMINA LINING BRICK JNP CHINA 153000 4989055.6 32.6
3/4/2014 ANKERTAR CHN AUSTRIA 7000 286830.56 40.98
3/4/2014 AOD LINING BRICKS AHM GERMANY 93851.1 4370878.35 46.6
3/4/2014 BRICKS TRL SIC VIZ CHINA 144848.4 17910532.04 123.7
3/4/2014 BROKEN REFRACTORY TILES KOL MALAYSIA 48134 702024.53 14.58
3/4/2014 CONVERTER REFRACTORIES CHN AUSTRIA 4500 174530.05 38.78
3/4/2014 HASLE D59A DENSE CASTABLE JNP DENMARK 15000 1470570.04 98.04
3/4/2014 HIGH ALUMINARE FRACTORY BRICK PIP SPAIN 80104 5692517.18 71.1
3/4/2014 HIGH BURNT BRICKS JNP GERMANY 140395 12163154.91 86.6
3/5/2014 HIGH BURNT PERICLASE SPINEL-BRICKS JNP GERMANY 19541 1803524.58 92.3
3/5/2014 MAGNESIA CARBON BRICKS KOL CHINA 82070 10778270.64 131.3
3/5/2014 MAGNESIA DOLOMITE BRICK AHM CHINA 696887.9 31552864.02 45.3
3/5/2014 MAGNESIA REFRACTORY BRICKS CHN AUSTRIA 422201 25990764.07 61.6
3/5/2014 MAGNESITE SPINEL BRICKS JNP CHINA 592621.8 22172778.48 37.4
3/5/2014 REFRACTORIES BRICKS KOL AUSTRIA 442.6 32545492.49 73532.5
3/5/2014 REFRACTORY JNP GERMANY 636.86 784172.43 1231.31
3/6/2014 REFRACTORY CHN CHINA 484117.23 25508156.91 52.7
3/6/2014 REFRACTORY BRICK JNP AUSTRIA 3456 3461406.91 1001.56
3/6/2014 REFRACTORY BRICK JNP GERMANY 6177 316394.45 51.22
3/6/2014 REFRACTORY BRICK LUD CHINA 104057.6 2682077.84 25.8
3/8/2014 REFRACTORY BRICK AHM CHINA 50582.3 2119232.76 41.9
3/12/2014 REFRACTORY BRICK JNP CHINA 980109.3 74431278.71 75.9
3/12/2014 REFRACTORY - FLOATING PARTICLE BRICK KOL CHINA 881088.54 30853885.25 35.0
3/12/2014 REFRACTORY - SILICA BRICK KOL CHINA 343022.1 13748676.53 40.1
3/12/2014 REFRACTORY BRICKS JNP GERMANY 285337 24624769.78 86.3
3/12/2014 REFRACTORY BRICKS JNP CHINA 44779 2932854.13 65.5
3/16/2014 REFRACTORY BRICKS JNP AUSTRIA 7200 343291.68 47.68
3/16/2014 REFRACTORY BRICKS JNP AUSTRIA 2400 145348.13 60.56
3/18/2014 REFRACTORY BRICKS DAR GERMANY 14413 5981629.96 415.0
3/18/2014 REFRACTORY BRICKS DAR GERMANY 96209.9 8063839.46 83.8
3/18/2014 REFRACTORY BRICKS JNP CHINA 32120 1592894.8 49.6
3/18/2014 REFRACTORY BRICKS JNP ITALY 9734.4 2575304.51 264.56
3/18/2014 REFRACTORY BRICKS JNP ITALY 5880 1450099.15 246.62
3/18/2014 REFRACTORY CULLET CHN JAPAN 10000 1292064.63 129.21
3/18/2014 REFRACTORY FOR STEEL KOL JAPAN 93 10183.25 109.5
3/19/2014 REFRACTORY FOR STEEL MAKING POROUS KOL JAPAN 50 20367.21 407.34
3/20/2014 REFRACTORY MAGNESIA CARBON BRICKS KOL CHINA 4327577.96 217039532.9 50.2
3/27/2014 REFRACTORY MATERIAL JNP GERMANY 1800 717478.25 398.6
3/27/2014 REFRACTORY MATERIAL BRICKS GUR CHINA 497920 19461401.98 39.1
3/27/2014 REFRACTORY MATERIAL BRICKS GUR GERMANY 121449.98 5278690.79 43.5
3/27/2014 REFRACTORY MATERIAL BRICKS JNP CHINA 23970 1292302.58 53.9
3/27/2014 REFRACTORY MATERIAL MAGNESITE BRICKS JNP CHINA 95210 2899194.89 30.5
3/27/2014 REFRACTORY MATERIALS JNP U K 6000 95001.67 15.83
3/27/2014 REFRCTORY - EXPANDED PEARLITE BRICK KOL CHINA 11000 950180 86.38
3/27/2014 SPECIAL HIGH-ALUMINA BRICKS JNP SPAIN 20566 2286119.33 111.2
3/28/2014 TORPEDO LADLE BRICKS JNP CHINA 19101.3 1281110.03 67.1
Total 11175854.27 637621428.6 57.1
Other refractory ceramic goods
3/5/2014 BRICK MARK JNP CHINA 304997.56 13308135.41 43.6
3/5/2014 CERAMIC REFRACTORY JNP ITALY 2998.8 917628.25 306
3/5/2014 GRAPHITE CRUCIBLE JNP UAE 39 24981.14 640.54
3/5/2014 GRAPHITE POWDER CHN FRANCE 50 176371.25 3527.43
3/5/2014 REFRACTORIES JNP CHINA 5552 312451.77 56.28
3/5/2014 LADLE PURGING REFRACTORIES JNP AUSTRIA 2136 948131.44 443.9
3/5/2014 REFRACTORY MATERIALS KOL CHINA 3220 658761.77 204.6
3/8/2014 REFRACTORY MATERIALS KOL POLAND 1218 697337.58 572.53
3/8/2014 REFRACTORY MATERIALS KOL GERMANY 728 872420.72 1198.38011
3/8/2014 REFRACTORY MATERIALS KOL ITALY 2030 1153169.5 568.1
3/8/2014 REFRACTORY MATERIALS KOL CHINA 15871 3092113.43 194.8
3/8/2014 SPHERICAL CERAMIC SAND JNP JAPAN 40000 1964862.08 49.1
3/12/2014 SILICON CARBIDE JNP CHINA 183.15 180935.69 987.9
3/12/2014 REFRACTORY CERAMIC KOL CZECH. 1064 404764.01 380.42
3/12/2014 REFRACTORY CERAMIC GOODS KOL USA 711.07 1066221.87 1499.5
3/12/2014 REFRACTORY CERAMIC GOODS JNP GERMANY 2997 1658882.4 553.51
3/12/2014 REFRACTORY SHEETS MUM USA 30 610144.76 20338.16
3/14/2014 REFRACTORY MATERIALS KOL GERMANY 1967 534862.5 271.9
3/14/2014 SILICA (SAND) CHN USA 14550.36 366132.29 25.16
3/14/2014 CERAMIC FIBER JNP CHINA 56381 2146438.9 38.1
3/14/2014 CERAMIC FIBER KOL THAILAND 3.94 4192.71 1064.14
3/14/2014 REFRACTORY CERAMIC CHN CHINA 12846.5 1291174.65 100.5
3/14/2014 REFRACTORY MATERIAL JNP U K 2625 241764.57 92.1
3/14/2014 REFRACTORY MATERIAL KOL CHINA 11947.49 1127246.8 94.4
3/14/2014 REFRACTORY MATERIAL KOL GERMANY 2539 308271.41 121.41
3/14/2014 CASTABLES CHN JAPAN 10000 356855.95 35.69
3/14/2014 CERAMIC (REFRACTORY) JNP CZECH. 23110 8897810.64 385.0
3/14/2014 CERAMIC JNP GERMANY 975 402155.56 412.47
3/14/2014 CERAMIC JNP CHINA 9178 1886904.04 205.6
3/14/2014 CERAMIC FIBRE JNP U K 2496 744914.97 298.44
3/19/2014 REFRACTORY MATERIALS KOL AUSTRIA 1387 247268.53 178.3
3/19/2014 REFRACTORY MATERIAL VIZ GERMANY 21736 5992190.67 275.68
3/19/2014 REFRACTORY ITEMS MUM U K 166 177221.75 1067.6
3/19/2014 REFRACTORY CERAMIC GOODS JNP CHINA 1410 172412.54 122.28
3/19/2014 REFRACTORY CERAMIC GOODS JNP CHINA 1170 146043.6 124.82
3/19/2014 REFRACTORY CERAMIC GOODS KOL GERMANY 2157 1176956.11 545.64
3/19/2014 REFRACTORY CERAMIC GOODS JNP GERMANY 1803 870776.5 482.96
3/19/2014 REFRACTORY CERAMIC GOODS JNP CHINA 18696.4 3283090.64 175.6
3/19/2014 REFRACTORY CERAMIC GOODS TUG USA 26455.2 2523398.42 95.38
3/19/2014 REFRACTORY CERAMIC GOODS TUG USA 13227.6 1261699.22 95.38
3/19/2014 REFRACTORY CERAMIC GOODS KOL U K 247.3 182405.67 737.59
3/19/2014 REFRACTORY CERAMIC GOODS KOL U K 18.7 13792.3 737.56
3/19/2014 REFRACTORY CERAMIC GOODS KOL GERMANY 34397 8012893.89 232.95
Total 677455.07 76756318.77 113.3
Tiles
3/15/2014 ACOUSTIC CEILING TILES JNP USA 765 43423.62 56.76
3/15/2014 ACOUSTIC CEILING TILES JNP USA 108 61303.96 567.63
3/18/2014 CONNECTOR ROOF TILES JNP GERMANY 21185 531996.16 25.1
3/18/2014 MONIER PLANO TILES BAN MALAYSIA 53 4597.45 86.7
3/25/2014 RED VERTICAL RIGHT EDGE(ROOF TILE) JNP SPAIN 59215.95 975985.32 16.5
3/25/2014 ROOFING TILES JNP FRANCE 65853.6 2703353.69 41.1
3/25/2014 SPANISH TILE JNP USA 112860 2845597.71 25.2
3/25/2014 SPANISH TILE JNP USA 4248 148476.53 35.0
Total 264288.55 7314734.44 27.7
Tiles
3/12/2014 VITRIFIED TILES JNP CHINA 1009800 510276.22 0.5
3/20/2014 VITRIFIED TILES TUT ITALY 94 184849.34 1966.48
3/27/2014 CERAMIC TILES MUN SPAIN 104 1538.13 14.79
Total 1009998 696663.69 0.7
Ceramic wares
3/5/2014 CERAMIC MATERIAL JNP USA 226.8 106127.55 467.93
3/5/2014 CERAMIC CYLINDRICAL JNP GERMANY 574.9 2248107.49 3910.4
3/5/2014 FOAM CERAMIC FILTER JNP CHINA 94473.07 4467899.56 47.3
3/5/2014 SANITARY FITTING JNP THAILAND 0.02 653.33 32666.5
3/9/2014 CERAMIC BALLS JNP GERMANY 6600 489341.12 74.14
3/9/2014 CERAMIC POT JNP CHINA 5878 648512.43 110.3
3/10/2014 CERAMIC WARES MUM USA 6.8 7188.68 1057.16
3/10/2014 CERAMIC BEADS MUM JAPAN 40 503299.16 12582.48
3/10/2014 CERAMIC CUTTER BAN SINGAPORE 11.27 1391.24 123.45
3/10/2014 CERAMIC BALLS MUL DENMARK 15132.5 1908776.29 126.1
3/16/2014 SILICON CARBIDE JNP CHINA 171 172904.94 1011.14
3/16/2014 CERAMIC CARTRIDGE (SANITARY WARE) JNP SPAIN 259.84 392581.49 1510.86
3/16/2014 CERAMIC CARTRIDGE ( SANITARY WARE) JNP SPAIN 296.96 448664.56 1510.86
3/16/2014 CEARMIC WARE GUR CHINA 170755.94 6283976.2 36.8
3/16/2014 SETTLING SET FOR CERAMIC MEDIA DEL ITALY 10 6564.42 656.44
3/16/2014 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
3/1/2014 SANITARYWARE & FITTINGS JNP GERMANY 396.01 358020.64 904.1
3/1/2014 SANITARYWARE JNP HUNGARY 713 207429.92 290.93
3/1/2014 SANITARYWARE JNP HUNGARY 1995 563035.81 282.22
3/1/2014 WHITE CERAMIC BASIN JNP CHINA 640 70461.02 110.1
3/1/2014 WHITE CERAMIC BASIN JNP CHINA 1586.86 200754.34 126.5
3/4/2014 PANACHE WASH BASIN JNP THAILAND 6429.16 731369.09 113.8
3/4/2014 IRON/ IMPRESSIONS JNP USA 134.57 33874.76 251.7
3/4/2014 CERAMIC BASIN JNP CHINA 100 7451.2 74.51
3/6/2014 TOILET W/SEAT JNP USA 1581.82 336549.06 212.76
3/6/2014 CERAMIC BASIN JNP THAILAND 533.6 80652.85 151.15
3/6/2014 CERAMIC BASIN JNP CHINA 102.5 8521.13 83.13
3/6/2014 WASHBASIN JNP USA 123.4 26952.35 218.41
3/10/2014 WASHBASIN JNP HUNGARY 1505.5 302438.69 200.9
3/10/2014 CERAMIC SANITARYWARE JNP CHINA 11333.9 1175234.95 103.7
3/10/2014 SANITARYWARE & FITTINGS JNP GERMANY 14 12041.36 860.1
3/10/2014 SANITARYWARE & FITTINGS JNP GERMANY 58 43369.99 747.76
3/11/2014 WHITE CERAMIC BASIN JNP CHINA 60 6846.44 114.11
3/11/2014 KATAGAMI JNP USA 12.73 40165.37 3155.17
3/11/2014 WASHBASIN JNP CHINA 23391.2 2497996.79 106.8
3/11/2014 COMPLETE SET TOILET WT-5 SET JNP THAILAND 283 71686.06 253.31
3/11/2014 COMPLETE SET TOILET WT-5 SET JNP THAILAND 452.8 115442.41 254.95
3/11/2014 TOTO SANITARY WARES & FITTINGS JNP INDONESIA 141 15741.04 111.64
3/11/2014 BASIN (CERAMIC) JNP CHINA 270 11529.5 42.7
3/11/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 4.17 1488.49 356.95
3/11/2014 CERAMIC SANITARY WARE BASIN JNP CHINA 37.6 5548.05 147.55
3/12/2014 CERAMIC SANITARYWARE JNP MALAYSIA 142 54794.3 385.88
3/12/2014 TOTO SANITARY WARES & FITTINGS JNP INDONESIA 21.2 1573.95 74.24
3/12/2014 TOTO SANITARY WARES & FITTINGS JNP THAILAND 3267 417057.58 127.66
3/12/2014 TOTO SANITARY WARES & FITIINGS JNP CHINA 4350 737480.91 169.54
3/13/2014 TOTO SANITARY WARE & FITTINGS JNP INDONESIA 25107.2 3095632.86 123.3
3/13/2014 TOTO SANITARY WARES & FITTINGS MUM JAPAN 52 187553.77 3606.8
3/15/2014 TOTO SANITARY WARES & FITTINGS JNP CHINA 24509.5 2407694.26 98.2
3/15/2014 WASH BASIN SANITARY WARE TUG CHINA 7040 499484.22 70.95
3/15/2014 WASH BASIN SANITARY WARE TUG CHINA 6160 591455.2 96.02
3/15/2014 TOTO SANITARY WARES & FITTINGS JNP VIETNAM 2220 249465.43 112.4
3/19/2014 TOTO SANITARY WARES & FITIINGS JNP CHINA 289.6 95552.87 329.95
3/19/2014 TOTO SANITARY WARES & FITIINGS JNP CHINA 616.5 110736.28 179.62
3/19/2014 TOTO SANITARY WARE & FITTINGS JNP INDONESIA 2507.4 487522.05 194.4
3/19/2014 SANITARY WARE JNP CHINA 76793.98 6262897.88 81.6
3/20/2014 SANITARY WARE AHM OMAN 7615 833243.76 109.4
3/20/2014 SANITARY WARE JNP ITALY 6000 2115161.66 352.5
3/22/2014 SANITARY WARE JNP GERMANY 2643 820351.65 310.4
3/22/2014 SANITARYWARE JNP CHINA 67253.95 4636525.7 68.9
3/22/2014 SANITARYWARE PRODUCTS JNP THAILAND 1440 122448.63 85.03
3/22/2014 SANITARYWARE PRODUCTS JNP THAILAND 0.6 329.59 549.32
3/22/2014 SANITARYWARE PRODUCTS JNP CHINA 63 8760.27 139.05
3/23/2014 SANITARYWARE AHM OMAN 693 77578.38 111.95
3/23/2014 SANITARYWARE AHM OMAN 4710 426420.51 90.54
3/23/2014 SANITARYWARE JNP THAILAND 477.44 41955.37 87.88
3/23/2014 SANITARYWARES AHM CHINA 37747.9 2220906.94 58.8
3/23/2014 SANITARYWARES AHM OMAN 37903 3777694.59 99.7
3/25/2014 SANITARYWARES: WASH BASIN AHM CHINA 499172.68 35905761.17 71.9
3/25/2014 SANITARY WARE JNP CHINA 5797 381984.71 65.9
3/27/2014 MADE OF CERAMICS JNP GERMANY 437 275557.3 630.57
3/27/2014 SANITARY WARE JNP CHINA 5775 481599.25 83.4
Total 1045725.59 91719658.82 87.7
Ceramic tableware
3/5/2014 CERAMIC BATHROOM SET JNP CHINA 55857.1 5952207.25 106.6
3/5/2014 CERAMIC PLATE JNP CHINA 112 6396.75 57.11
3/5/2014 BATH ROOM SET (CERAMIC) JNP CHINA 2764 186477.18 67.5
3/5/2014 CERAMIC WARE JNP CHINA 12347.5 948732.7 76.8
3/16/2014 SANITARYWARE WASH BASIN JNP ITALY 198 19615 99.07
3/27/2014 CERAMIC SNITARY WARE JNP THAILAND 12332.83 1517950.35 123.1
3/27/2014 CERAMIC BATH ROOM SETS JNP CHINA 39778.6 3764949.12 94.6
3/27/2014 CERAMIC CLAY FOR TILE JNP ITALY 82 7391.68 90.14
3/16/2014 CERAMIC SANITARY WARES JNP CHINA 54338.5 3400317.97 62.6
3/16/2014 CERAMIC WARE JNP THAILAND 1612.8 255830.02 158.6
3/16/2014 CERAMIC WARE JNP CHINA 6814 496760 72.9
Total 209997.71 17698801.92 84.3
Ceramic
3/3/2014 CERAMIC YARN KOL CHINA 9414 1146513.73 121.8
3/4/2014 CERAMIC GOODS JNP CZECH. 133.75 30588.64 228.7
3/4/2014 CERAMIC GOODS JNP CZECH. 160 39024.11 243.9
3/4/2014 GLAZED POTS HYD VIETNAM 24000 612816.15 25.53
3/6/2014 HIGH ALUMINA LINING BRICKS MUN CHINA 59200 3989839.73 67.4
3/6/2014 INSULATING STANDARD BRICKS JNP DENMARK 20144.86 1308054.77 64.93
3/10/2014 INSULATING STANDARD BRICKS JNP DENMARK 5215.58 513734.13 98.5
3/11/2014 CERAMIC GOODS JNP CZECH. 141.25 223772.17 1584.2
3/25/2014 CERAMIC GOODS MUM GERMANY 435 195404.02 449.2
3/25/2014 CERAMIC GOODS JNP SWEDEN 66 35327.88 535.27
3/25/2014 CERAMIC GOODS JNP USA 91854 2586842.87 28.16
3/25/2014 CERAMIC GOODS MUM CZECH. 115 116947.3 1016.93
3/25/2014 CERAMIC GOODS JNP CHINA 1100 244120.64 221.9
Total 211979.44 11042986.14 52.1
Articles of plaster
3/3/2014 GYPSUM DOMES & CEILING PANELS CHN MALAYSIA 68917.15 800664.65 11.6
3/4/2014 GYPSUM CHN S. ARABIA 158880 1408498.19 8.9
3/4/2014 GYPSUM BLOCK SIZE JNP IRAN 30238 327624.35 10.83
3/4/2014 GYPSUM BOARD HYD PAKISTAN 39375 317144.81 8.05
3/4/2014 PVC GYPSUM CEILING TILES JNP CHINA 131250 1703010.65 13.0
3/6/2014 GYPSUM BOARD CHN MALAYSIA 36000 458261.1 12.73
3/6/2014 PLASTER CORNER WHITE COC UAE 209681 2730419.7 13.0
3/6/2014 CEMENT PLASTER JNP JAPAN 1000 2914.87 2.91
3/6/2014 GYPSUM KOL MALAYSIA 33860.74 234960.74 6.9
3/17/2014 PVC FACE GYPSUM CEILING TILES ALUMINIUM JNP CHINA 21000 160547.16 7.65
3/17/2014 PVC FACE GYPSUM CEILING TILES ALUMINIUM JNP CHINA 21000 160547.16 7.65
3/17/2014 GYPSUM CEILING JNP CHINA 162729.5 1949163.73 12.0
3/17/2014 GYPSUM BOARD TUT PAKISTAN 202125 1761406.51 8.7
3/19/2014 GYPSUM TILES CHN THAILAND 37700.16 413524.33 10.97
3/19/2014 GYPSUM CHN THAILAND 361600 3160010.79 8.74
3/19/2014 GYPSUM JNP S. ARABIA 600000 4807162.67 8.0
3/19/2014 FLYASH JNP GERMANY 44280 2177015.83 49.2
3/25/2014 GYPSUM BLOCKS JNP IRAN 11450 40884.24 3.57
3/26/2014 TILES WALL KOL CHINA 232 318678.03 1373.61
3/29/2014 GYPSUM CENTRE PANELS CHN MALAYSIA 16212.8 257344.38 15.9
3/29/2014 CEMENT JNP SRI LANKA 63.42 3405.54 53.7
Total 2187594.77 23193189.43 10.6

IN PERSON June 16-22, 2014 3
‘By 2017, Indian elevator segment
will grow to 70,000 units’
From airports to shopping centres
and transit systems, Otis offers an
array of product options for both public
and commercial applications. The
company has a comprehensive line
of elevator choices designed to meet
vertical transportation needs of every
type and design.
How has Otis pioneered innovative
technology over the years for
building and construction companies
in India?
At Otis, we are constantly looking
to develop innovative technology to
meet our customers’ requirements.
Otis products can help achieve
substantial energy savings and
facilitate environmental sustainability.
For example, our flagship product,
the Gen2 range of elevators, provides
both efficiency and environmentally
responsible features and benefits.
Some of the key components of the
Gen2 range are the coated steel
belt, the ReGen drive, the permanent
magnet machine and the Otis Pulse
bel t-moni tor ing system. When
combined, these components increase
the life, efficiency, safety and reliability
of the elevator.
The environmentally sustainable
elevator segment in India is strong, as
shown by the growing amount of Green
real estate space. There are 2 billion sq
ft of Green building footprint and more
than 2,400 buildings registered with the
Indian Green Building Council (IGBC).
The examples of Otis innovations
include:
Localized world-class technology:
Bui lding owners are aware of
technologies available all over the
world. Therefore, it is important to meet
the demand for the latest innovation
in a way that is specifically tailored for
the needs of the region. The recently
launched Gen2 Switch elevator is one
such product.
Gen2 Switch is easy to install
and features single-phase battery
operation that is designed to manage
power interruptions, such as those
experienced in parts of India. Under
normal running mode, the single-phase
power supply charges a pack of
batteries, which, in turn, supply power
to the elevator motor.
In the event of a power failure, the
battery pack continues to operate the
elevator up to 100 stops, reducing
the potential of an elevator stopping
because of a power loss. Gen2 Switch
is also simpler, as it uses a 230-volt,
single-phase power supply instead
of the conventional 400-volt, three-phase
power supply, thus making it
‘plug-and-go’. The environmentally-responsible
design, coupled with
compatibility with alternative energy
sources like solar panels, makes it
truly sustainable.
Tall technology: Our city structures
are growing vertically, so it is important
to innovate high-speed elevators
that can transport people to their
destinations safely in the shortest
range of operation-critical functions for
an elevator from any computer with an
Internet connection.
The EMS Panorama system offers
comprehensive, real-time data that
shows building managers the full
picture, enabling them to respond
quickly to passengers’ needs and
make informed decisions about
equipment operations with great
certainty.
Elite Service is a priority service that
goes beyond maintenance. Otis has
invested in an extensive technological
infrastructure to bring this new service
offering and unparalleled benefits
to customers. It offers customers
guaranteed uptime and faster
response times.
Dedicated Elite Service engineers
deliver enhanced service and help
ensure that service interruptions and
customer requests are responded to
promptly so that the amount of time
that the customer’s elevator is out of
service is kept to a minimum.
What are the newest trends in the
elevator market? Tell us about
sustainable solutions offered to
meet the country’s growing needs.
India’s demographics, rapid
urbani zat ion and real es tat e
development dr ive signi f icant
building occupants from intruders. The
web-based EMS Panorama system
(as described in answer 1) enables
building staff to monitor, control,
report on and manage a full range
of operation-critical functions for an
elevator from any computer with an
Internet connection.
Secure access technologies have
codes designated to particular floors.
For instance, when a passenger
inserts a valid card into the card reader,
he or she will be allowed to register
a call to a defined number of floors.
This helps ensure that only those
authorized are able to visit a particular
floor, increasing building security.
How have you performed in the
previous year? How does that
compare with the previous years
on a y-o-y basis? Looking at the
current economic situation, how do
you view the elevator and escalator
market in the country shaping up?
Otis has delivered consistent
results. Last year, Otis won two major
contracts: Hyderabad Metro Rail
Project by L&T Metro Rail (Hyderabad)
Ltd (LTMRHL) and Delhi Metro Rail
Corporation (DMRC).
India is currently the second-largest
segment in the world for elevators with
a demand of approximately 47,000
units per year. According to a report
from the McKinsey Global Institute, by
2008 India’s cities were already home
to 340 million people, roughly 30 per
cent of the country’s population.
By 2030 India’s cities are expected
to grow to 590 million people, or
40 per cent of the population. As
urbanization drives the increased need
for housing, the elevator industry will
play an important role in supporting
that growth. The Indian elevator
segment is expected to grow to 70,000
units by 2017.
Many international companies,
despi te the slowdown, have
introduced new technologies over
the year. Where have you seen your
growth coming from – infrastructure,
housing or office/retail?
Residential development is the
key sector driving growth for the
industry, accounting for the majority
of revenue. The commercial sector
is also a significant factor given the
urbanization trend that we see across
India.
Kamal Nath, Union Minister for
Urban Development & Parliamentary
Affairs, projects that India will spend $1
trillion on infrastructure development
in the country over the plan period
2012-17, with 40 per cent of that
development coming from the private
sector. Future cities and developing
economies hold a lot of potential for
infrastructure growth.
The government initiative on multi-brand
retail will spur the movement
of retail development, even in tier-
2/-3 cities. All this will lead to growth
potential for elevator service providers.
Also, states are now changing
regulations to include technological
upgrades for elevators. Over the past
five years, we have seen a few states
that have drawn out a regulatory
framework for elevators, which is a
step in the right direction.
“As urbanization drives the increased need for housing, the elevator
industry will play an important role in supporting that growth. Future
cities and developing economies hold a lot of potential for infrastructure
growth,” predicts, Sebi Joseph, Managing Director, Otis India, in this
interview with Remona Divekar. Excerpts:
amount of time. The tallest building
in the world, the Burj Khalifa in Dubai,
United Arab Emirates, uses the fastest
elevators, at 10 meters per second.
We supply high-speed elevators
to Kohinoor’s upcoming mixed-use
building in Mumbai, where the elevator
speed is being planned at about 6
mps. We also provided elevators
for the recently developed Center
of Excellence high-rise in Shanghai.
There is immense opportunity for
growth in this technology, especially in
Delhi, Mumbai and Bengaluru.
Over the past 100 years, Otis has
provided elevators to eight of the
world’s 10 tallest buildings, including
the Burj Khalifa in Dubai, the Shanghai
World Financial Center in China and
the iconic Empire State Building in
New York City.
Other technologies: Another
exciting Otis product is the Compass
Destination Management System.
Using Otis patented technology, the
system constantly evaluates real-time
passenger traffic to improve flow and
travel time in busy mid- and high-rise
buildings.
Instead of using standard hall call
buttons, passengers register their
specific floor in the lobby before they
enter the elevator. The system assigns
passengers traveling to nearby floors
to the same car, minimizing the number
of stops per trip and significantly
reducing car crowding, waiting and
travel times.
The technology has also been
adapted to respond to growing
security concerns across segments.
The optional compass seamless entry
is specifically designed to integrate
building security and elevator-despatch
systems, through various
access devices.
The web-based EMS Panorama
system enables building staff to monitor,
control, report on and manage a full
demand for energy-efficient building
products and services. According
to the Indian Green Building Council
(IGBC), India currently has 2 billion
sq ft of registered Green building
space, which comprises more than
2,400 buildings. While much progress
has been made, there has been an
increased demand for environmentally
responsible elevators.
Anticipating this demand, Otis
pioneered its flagship product line,
Gen2. Geared towards efficiency while
providing environmentally responsible
benefits, Gen2 offers many features
that are designed to increase the
elevator’s lifespan, efficiency, safety
and reliability. These key components
include the coated steel belt, ReGen
drive, permanent magnet machine and
pulse system.
In keeping with this need, Otis
recently introduced a new elevator
from the Gen2 range, titled the ‘Gen2
Switch.’
Otis offers an array of product options
for both public and commercial
applications. How do you address
the security issues in your projects
at crucial and unpredictable times
for safe and smooth functioning?
With today’s technology, an elevator
can also help to protect tenants or
Kohinoor Square, Mumbai

June 16-22, 2014 4
DMIC Trust to provide
`6,000 cr for Dholera
NBCC eyes Oman,
Botswana projects
The National Buildings Construction
Corporation Ltd (NBCC) is eyeing
business overseas and exploring
possibilities of projects in Oman,
Botswana and neighboring countries.
The company is opening office
branches in Botswana and Oman and
has tied up with a company in Oman
for development of an infrastructure
project that could hopefully book some
revenue in the last quarter this fiscal,”
said NBCC Chairman & Managing
Director Anoop Kumar Mittal.
NBCC also wants to focus on
redevelopment of government
proper t ies. Mi t tal said, “The
government has allotted us three
projects in the National capital —
Netaji Nagar, Kasturba Nagar and
Thyagraj Nagar — for redevelopment.
The state governments of Odisha and
Rajasthan have also assigned projects
to the NBCC.
The company i s cur r ent l y
engaged in redevelopment of East
Kidwai Nagar, New Delhi, which is
Rs 5,000-crore project. The mini
Ratna plans to develop housing
projects in Faridabad (Haryana),
Alwar (Rajasthan), Ghaziabad (Uttar
Pradesh) and Kolkata.
INFRASTRUCTURE
More VGF for Metros
to encourage PPPs
To encourage more private sector
participation in Metro and rapid rail
projects, the government intends to
make investments more remunerative
by providing viability gap funding
(VGF) of as much as 30-35 per
cent.
“The NDA government believes
a VGF of close to a third of the
total project cost would make it
more attractive for concessionaires
compared with the current quantum
of 20 per cent. A Cabinet note on
the enhanced VGF as also easier
rules for acquiring land and allowing
government-to-government pricing
for land is in the works,” said a senior
Urban Development Ministry official.
While there are several ongoing
public-private partnership (PPP)
projects in the Metro space, some
have seen costs escalate. For
instance, the Hyderabad Metro being
constructed by Larsen & Toubro
under PPP/build-operate-transfer
model, proposed to be completed in
2017, has seen a project escalation,
at current interest rates of RS 2,000
crore on an estimated project cost of
RS 16,000 crore. V B Gadgil, CEO &
MD, L&T Hyderabad Metro, confirmed
that costs have run up on the back of
higher interest rates, the depreciation
of the rupee and inflation.
The Delhi Mumbai Industrial
Corridor (DMIC) Trust will provide Rs
3,000 crore each for the launch of
trunk infrastructure in two industrial
cities of Dholera and Shendra-Bidkin
this year as momentum picks up for
the planned mega development.
“We will launch two cities this year
and give Rs 3,000 crore each for the
development of trunk infrastructure
in two cities -- Dholera, Gujarat and
Shendra-Bidkin, Maharashtra,” said
Talleen Kumar, CEO & Managing
Director, DMIC Development Corp Ltd,
on the sidelines of the World Cities
Summit in Singapore.
Construction work on the Dholera
“We have already indicated to the
government that some help might
be required in the form of additional
VGF,” Gadgil said. He pointed out
that it would not be possible to revise
the fares too much since it was a
public utility.
Special Investment Region, Gujarat
and Shendra-Bidkin Industrial Park,
Maharashtra will start early next
year, he said. Work at Dholera would
begin from a 22 sq km activation
zone to expand the industrial region
development as part of DMIC in
Gujarat, while 32 sq. km of land
has already been acquired for the
Shendra-Bidkin development, he
said.
Additional 8 sq. km of land was in
the process of acquiring for Shendra-
Bidkin, giving 40 sq km start for the
Mega Park near Aurangabad. Master
planning for almost all the cities has
been completed, he added.
Assocham proposes infusion
of $3 t in railways
India Inc bats for removal of Mat
on Sez developers, units
Corporate India has urged Finance
Minister Arun Jaitley to exempt special
economic zones (Sezs) developers
and units from the levy of minimum
alternate tax (Mat). After being unable
to get their way in recent years for
removal of this levy, India Inc is once
again making efforts to get this duty
out of the income tax law in respect
of Sez developers and units.
A regime change at the Centre and
new guard at the Finance Ministry has
raised hopes among Sez developers
that the Mat levy would go in the
upcoming budget.
“We have requested that Mat be
totally removed for Sez developers
and units. For others, our suggestion
is that the Mat rate should be scaled
down to say 10 per cent,” said a
senior industry representative who
attended the pre-Budget meeting
with Jaitley recently. This demand is
seen as a big task on Jaitley who may
not deliver a populist Budget given
the fiscal situation.
Industry body Assocham proposed
an infusion of $2.5 trillion to $3
trillion into the Railways for capacity
enhancement with high-speed freight
and passenger service corridors to
drive the country’s economy. In its
report ‘Gearing Indian Railway for
a 7 trillion dollar economy by 2030’
Assocham has outlined a series of
measures and policy initiatives which
can be executed for the coming 15
years, helping the Railways to build
a capacity to handle 50 per cent of
the freight movement. The report was
presented to Railway Minister D V
Sadananda Gowda.
“We have suggested the new
Railway Minister a mega plan
comprising seven corridor high-speed
freight network for transporting goods
back and forth from manufacturing to
consumption centres and from all
major ports within specified time-frame
of 36 hours,” said Assocham
Chairman A K Agarwal, who led the
chamber’s delegation along with
Secretary General D S Rawat.
He said the plan envisages
capacity enhancements with required
investments worth $ 2.5-3 trillion,
thereby making the Indian Railways
an engine of growth by creating jobs
across the board at various levels,
boost demand for construction,
steel, cement, equipment, etc.
Road Ministry
wants inter-ministerial
group scrapped
The Ministry of Road Transport &
Highways wants an inter-ministerial
group (IMG) for awarding of road
projects to be scrapped. Since the
NDA government is focusing on
hastening of projects, the minister is
broadly in agreement with officers,
said a senior official. Instead of an
IMG, the issues can be resolved within
the ministry.
Last week, while scrapping
the system of groups of ministers
handling various things, Prime Minister
Narendra Modi asked ministries and
departments to resolve disputes
themselves. Currently, the IMG for
roads also has members from the
Planning Commission and the Finance
Ministry.
“Mos t t imes , the Planning
Commission has different views, which
lead to delay in projects. If a proposal
gets stuck in an IMG, it has to go to
the Cabinet, again a lengthy process.
We want to eliminate the reasons for
delays in revival of the road sector,”
says another official.
The ministry is also in the process
of making a list of projects stuck due
to various issues. It will mention the
point from where the delay started
and at which level. It will then take
up the issue with the other ministries
concerned, said the official.
Due to economic slowdown over
recent years, the award of projects
in roads and highways has slowed,
beside issues related to environment
and forest clearances, along with land
acquisition problems. During 2010-
2012, developers had bid aggressively
when the government awarded a
record 147 road projects worth Rs
1.47 lakh crore.
At the time, India’s economic
growth was much higher; it has
slowed since and input and inflationary
costs have gone up. Currently, road
projects worth Rs 83,000 crore are
pending completion. Since 2009, the
government recorded the completion
of only three projects, adding only
315 km to the existing highways’
network. Many projects are stalled by
developers running short of cash and
the government has allowed them to
reschedule the payment of premiums
under a new policy.

INFARRSTUCERTU June 16-22, 2014 5
Game-changer for transport, realty
The PPP Metro initiative
has all the hallmarks
of a game-changer for
Mumbai’s transportation
and realty landscape
Several years after New Delhi, the
country’s political capital, witnessed
a transformation with implementation
of the Delhi Metro, the financial capital
of Mumbai experienced a similar
phenomenon with the commissioning
of the Versova-Andheri-Ghatkopar
(VAG) corridor of the Mumbai Metro on
Sunday, June 8, 2014 by Maharashtra
Chief Minister Prithviraj Chavan.
With equity participation from
Reliance Infra and Veolia (a French
transportation major), this PPP initiative
has all the hallmarks of a game-changer
for the city’s transportation
and realty landscape.
Positive impact
Many facts about the VAG have
already been well documented : A
project investment of $720 million,
a fleet of 16 rakes with 4 fully air-conditioned
coaches with an individual
capacity of 375 passengers, travel
time reduced to 21 minutes from the
current 90 minutes between Versova
and Ghatkopar -- and of course,
improved east-west connectivity.
However, the impact on the Mumbai
realty market is likely to be far more
pronounced.
Transportation infrastructure
economics have historically proven
to have a positive impact on real estate
values in a city like Mumbai – residential
and commercial properties located
close to transportation infrastructure
tend to command a premium.
Independent analyses of pricing
reveal that proximity to a Metro station
can single-handedly account for a 22
per cent variation in land values, the
other factors being location, distance
of the land from the central point and
income groups.
Effect on realty
On the back of the execution of a
string of surface transport infrastructure
projects – viz the Jogeshwari-Vikhroli
Link Road (JVLR), the Santacruz-
Chembur Link Road (SCLR) and the
Wadala-Chembur monorail -- the VAG
corridor will further stoke the already
buoyant Mumbai realty market.
Each of these transportation
infrastructure initiatives have had a
tonic effect on the adjoining realty
micro markets – for example the
expected implementation of the
monorail had pumped up property
prices in Chembur and Wadala by
more than 100 per cent in a short span
of four to five years.
This also applies to the SCLR, with
which the Chembur micro-market
again witnessed a perceptible price
rise due.
The areas which will benefit from
Metro connectivity have already seen
price rises of 400 per cent over the
past eight years, and this trend is set to
continue with this imminent launch. A
more detailed impact analysis follows
below.
Boom in price hikes
Developers’ interest in projects
near the Metro has been increasing
since the start of construction. With
the commencement of the project,
the surrounding region will definitely
experience a certain boom in terms of
new offerings and price hikes.
Rates on both the commercial and
residential market will increase, as the
properties of northern SBD, BKC and
SBD central are the most preferred
locations for investors.
Fast & convenient
Intra and inter-connectivity in SBD
north and the eastern suburbs will
increase tremendously, given the
capacity of 7 lakh passengers per
day added by the Metro. Concurrently,
east-west connectivity will benefit the
maximum by this project, which will
reduce the burden on JVLR and SCLR
Absorption and prices will remain
steady.
SBD North: The maximum positive
effect will be seen in SBD north, as
the Metro runs across its entire width,
covering practically all the important
destinations. Absorption and supply
are set to increase rapidly along
with capital and rental values. The
residential market in certain key areas
will see a boost in activity, especially
in Andheri west.
Western suburbs: The Metro will
also have a positive impact on the
western suburbs due to the faster
connectivity to the eastern suburbs.
Absorption rates and supply will
increase marginally. Residential
markets will also take off in areas
closer to the Metro.
Eastern suburbs: Besides SBD
north, this micro-market is going to
see the maximum impact from the
Metro. Rental and capital values are
set to increase as absorption rates
move up. The residential market in
areas like Ghatkopar will derive the
maximum benefit.
Thane-Navi Mumbai: If at all,
Thane and Navi Mumbai will see
only a marginal positive impact, as
commuting to the western suburbs
and SBD north and back becomes
faster. Otherwise, these markets are
will remain largely unaffected.
The commissioning of the VAG
corridor of the Metro is likely to
transform the dynamics of Mumbai
transportation, as well as its realty
market. In conjunction with the SCLR
and the monorail, the Metro is certainly
poised to become a major game-changer
for realty investments in
Mumbai.
(the current east-west corridors).
Travelling to the eastern suburbs
and Navi Mumbai from the western
suburbs and SBD north and back will
become faster and more convenient.
Among the series of mega projects
such as the Eastern Freeway, SCLR
and monorail in the past one year, the
Metro is the biggest so far.
The combined effect reflects
positively on Mumbai’s real estate
market -- the residential and retail
markets in Andheri, Jogeshwari and
Ghatkopar will witness tremendous
growth, especially those near the
Metro stations.
Long-term value capture would be
possible through increase in FSI. If the
proposal of granting FSI of 4 to areas
near the Metro is approved, it will have
a far-reaching impact and potentially
transform the entire landscape of
areas surrounding the Metro.
Micro-market wise influence
CBD: Already losing out to BKC
and SBD central, SBD north will now
also pose a strong contender as a
business destination alternative to
CBD. Absorption could reduce due
to the trend of shifting away from
CBD, which will lead to a correction
in prices.
SBD Central: SBD north might not
be able to compete with BKC, but it
will pose a challenge to SBD Central.
Residential and commercial spaces
in SBD north may start becoming
preferred over SBD central, especially
when favourable prices are found in
SBD north.
SBD BKC: BKC will remain largely
unaffected -- even factoring in the
effect of the Metro on SBD north, the
advantages that BKC already has
will keep it firmly in the No 1 position. Ramesh Nair
COO, Business, JLL

PROJECST UPADET June 16-22, 2014 6
CM Chavan flags off
Mumbai Metro One
In a major turnaround, Maharashtra
Chief Minister Prithviraj Chavan
flagged off the 11.4-km Versova-
Andheri-Ghatkopar Metro rail service
on Sunday June 8. Chavan had earlier
said he would skip the inauguration
function unless Mumbai Metro One
Pvt Ltd (MMOPL) stuck to the original
fares proposed in the tender, at Rs 9,
Rs 11 and Rs 13.
In its capacity as the Metro
administrator empowered under
the Metro Act, 2002, MMOPL had
announced promotional fare of Rs 10
for a month and thereafter fixed fares
of Rs 10, Rs 20, Rs 30 and Rs 40. It
did not roll back these fares despite
Chavan’s demand.
MMOPL is a joint venture company
comprising Anil Ambani’s Reliance
Infrastructure, Veolia Transport and
the Mumbai Metropolitan Region
Development Authority (MMRDA)
which holds 26 per cent equity in
the project.
Chavan said the launch of
Metro services in Mumbai would
revolutionize the way residents of
Mumbai travel. The journey on the
Versova-Andheri-Ghatkopar stretch
will be covered in 21 minutes flat,
which otherwise takes around one-and-
a-half hour by road.
MMOPL will operate 270-280
services a day, carrying 1.1 million to
1.5 million passengers. Every coach
can carry 375 passengers, while
the entire train can transport 1,500
commuters.
Centre draws blueprint to upgrade
infrastructure
Smal l ai rpor ts, a Diamond
Quadrilateral of high-speed trains
and ‘Sagar Mala’ project to connect
ports to the hinterland would be the
focus areas of the new government as
part of efforts to upgrade the country’s
much-needed infrastructure.
“Lack of robust infrastructure is
one of India’s major impediments.
The government will chalk out an
ambitious infrastructure development
programme to be implemented in
the next 10 years,” said President
Pranab Mukherjee in his address to
the Joint Sitting of Parliament recently
which outlined the vision of the new
government of Narendra Modi.
A “fast-track, investment-friendly
and predictable” public private
partnership mechanism would be
put in place for this purpose, with
modernization and revamping of
the Railways being on top of the
infrastructure agenda.
The President said low-cost airports
would be developed to promote air
connectivity to smaller towns. He
promised that government would
modernize existing ports on one hand
and develop new world-class ports
on the other. “Stringing together the
Sagar Mala project we will connect the
ports with the hinterland through road
and rail. Inland and coastal waterways
will be developed as major transport
routes,” he said.
Maha may shell out `300 cr
to developers for toll plazas
Around 26 per cent of the total toll
plazas belonging to the Maharashtra
government will be shut. These are
mainly small projects, with values
ranging from Rs 2 crore to Rs 14
crore. The state government on June
9 announced that 44 toll booths across
the state will be shut. But the users will
have to wait before it becomes a reality,
as the state government will have to
issue notifications announcing the
cancellation of tolls.
The announcement by Maharashtra
Deputy Chief Minister Ajit Pawar to
this effect follows growing resistance
against paying tolls for even the
smallest of facilities. It comes as the
Congress-NCP government readies for
the Assembly elections in the state after
facing defeat in the Lok Sabha polls.
Most of the 44 toll booths that
will be shut are those with small
stretches of roads, bridges and over-bridges.
To take over the toll plazas,
the government will compensate
all developers by paying them over
Rs 300 crore. The amount is pre-defined
for each developer in the
concession agreement or the contract
between the road developer and state
government.
“The concession agreement had a
clause that allowed us to take back the
project from the developer by paying
the net present value of the cash flow
that would have accrued to developers
in the remaining part of the concession
period. We will use this clause,” said a
senior state government official.
Maharashtra has 166 operational
toll plazas, of which 40 are on national
highways. Of the remaining 126,
some 77 are under the State Public
Works Department and 34 under the
Maharashtra State Road Development
Corporation (MSRDC). Of the 44 toll
plazas that will be shut, 34 are under
PWD and 10 under the MSRDC.
Centre to review
`6.5 lakh cr projects
cleared by UPA
The Narendra Modi government
has decided to review the progress
of all projects worth Rs 6.5 lakh
crore cleared by the outgoing UPA
government’s Cabinet Committee on
Investments (CCI), which was set up
to revive the investment cycle and
shore up the economy by resolving
red-tape hurdles facing big-ticket
projects.
The Namo mantra for spurring the
economy back to higher growth -- part
of the key message he conveyed to his
council of ministers recently -- is to go
beyond facilitating clearances for such
investments and focus on making
them operational on the ground.
With the CCI having cleared
projects worth Rs 6.5 lakh crore
since January 2013, the government
has now written to all those project
promoters to ascertain if they have
started production yet and if not,
why. Such monitoring is expected to
be the norm for all other projects that
the government manages to rescue
from red tape in coming months.
In order to ascertain the situation,
ministries have been asked to seek
details from project proponents on
the actual activity on the ground after
they secured the clearances they
had sought help with, and report the
status to the Cabinet secretariat.
Paradip Port to raise capacity
to 270 mt over 10 years
State-run Paradip Port said it
will be investing Rs 16,000 crore
in multiple projects over the next
decade, which will more than double
its existing capacity to over 270
million tons.
“We will be seeing investments of
around Rs 16,000 crore to take our
total capacity to over 270 million tons
per annum,” said the port Chairman
S S Mishra, addressing an investor
roadshow.
The 52-year old port’s current
capacity stands at 108 mt and it is
the sixth biggest bulk handling port
in the world. The projects include an
investment of up to Rs 6,500 crore
for the upcoming western dock, said
Mishra.
Other major investments will
include Rs 1,357.02 crore outgo on
the mechanization of the container
quays 1 and 2, Rs 5,600-crore
investment for an LNG terminal in
two phases and Rs 1,651.09-crore
towards other mechanization of the
eastern quays 1, 2, and 3, he said.
Additionally, investments have also
been lined up for dredging works,
setting up a warehousing facility,
truck terminal, a coal berth and a new
iron ore berth, Mishra said. Majority
of the works will be carried out
through the public private partnership
route. They are in different stages of
development at present, right from
technical studies to finalization in
some projects, he said.
Golden Quadrilateral
rail project on anvil
The Central government on June
9 unveiled an ambitious plan to
modernize and speed up railways.
President Pranab Mukherjee, in his
address to the joint session of both
the Houses of Parliament, listed the
Golden Quadrilateral project to link
four Metro with high-speed trains as
the top priority of the government.
“Modernization and revamping of
railways is on top of the infrastructure
agenda of my government, which
includes a Diamond Quadrilateral
project of high-speed trains,” said
Mukherjee in his address. The
Railways, under the new government
led by Prime Minister Narendra Modi,
is pushing the bullet train project.
The feasibi l i ty study of the
Ahmedabad-Mumbai i s being
undertaken jointly by India and Japan
and in a few months the report would
be ready, which will cover all aspects,
including costs and revenue model.
The railways is also mulling to go
ahead with the New Delhi-Patna bullet
train project, while five more such
proposals are under consideration of
the Rail Board.
Howrah-Haldia and Hyderabad-
Chennai are also rail lines on which
the Railways is mulling running bullet
trains.
The Ahmedabad-Mumbai high
speed rail corridor, which is about
543 km long, would cost the Railways
Rs 60,000 crore, which would be
executed under the public-private-partnership
mode.
While the high speed trains run at
over 300 kmph, the Railways is also
actively considering the proposal to
raise the speed of trains on existing
tracks in semi-high speed mode,
which could be 200 kmph without
requiring separate corridors.

CEEMNT June 16-22, 2014 7
From commodity to customized product
With consumers using
different grade and
quality based on usage,
it will lead to customized
product
(Part 3)
The recent developments in the
cement industry will require cement
suppliers to take into account the
following factors and adapt as
necessary.
Change in customer
behaviour
The needs and expectations of
institutional customers are very different
than those of retail customers. Retail
customers look for a trust¬worthy
brand; institutional buyers seek long-term
relationships and technical
competency.
Retai l cus tomer s prefer a
standardized commodity product;
institutional buyers seek more
customization and want cement
companies to be solution providers.
Retail customers are highly cost-conscious
and seek ready availability
at the dealer level; institutional buyers
want value for money, transparent and
standardized credit and commercial
terms, and consistent and timely
delivery to job sites.
In future, cement companies
will need to develop multiple new
capabilities to serve the changing
customer base effectively.
Shift in product preference
Large institutional buyers and RMC
players prefer to buy OPC and do in-house
blending, as it cuts costs. As
the share of such buyers increases,
the demand for OPC is also expected
to rise.
A similar trend has been witnessed
in the European Union, where the
construction industry uses close to 48
per cent of the total fly ash production,
of which almost 40 per cent is used
for blending in concrete rather than
cement.
This increasing trend of in-house
blending has resulted in high demand
for OPC in developed countries such
as Italy and the United States. Although
the demand for OPC from residential
and commercial sectors is expected
to increase, the demand from the
infrastructure sector is likely to fall.
Because agencies such as the
National Highways Authority of India
(NHAI), public works depart-ments
(PWDs), and the Ministry of Water
Resources will revise the infrastructure
project specifica-tions to allow for
the use of blended cement for some
projects. However, we still expect the
share of OPC to rise from the current
level of 28 per cent.
Evolving market
As the Indian market evolves,
cement will undergo transfor¬mation
from a commodity to a customized
product. Currently, cement is marketed
and used largely as a commodity,
with companies achieving limited
differentiation based on service and
delivery and most using similar types
and qualities of cement regardless of
the use or necessary strength.
This is expected to change, however,
with consumers using different grade
and quality based on usage, it will
lead to customized products that
can create differen¬tiation based on
technical expertise.
For instance, certain value-added
concrete products already
launched in the market differentiate
by achieving greater strength in
less time, being more decorative,
being more environmentally friendly,
having improved permeability, or
providing thermal comforts. Some
of these products have specialized
moisture-resistant packaging or free
services for customers such as testing
of ingredients, site visits, or slab
supervision. These products and
services will likely proliferate, allowing
cement companies to differentiate
themselves from peers.
In-house blending
Demand for OPC cement is
expected to increase consumption
split by product (% million tons). The
rise of in-house blending could, without
adequate regulatory mechanisms and
enforcement, lead to inconsistent and
inaccurate blending on site, which in
turn would impact the overall strength
of the structure in the long term.
In addition, since the margin on
blended cement is typically higher
than OPC due to a more efficient
cost structure, a shift from blended to
OPC can impact industry profitability.
To maintain the share of blended
cement at current levels, the following
actions would be required from key
stakeholders:
Industry and influencers work
together to increase awareness and
promote the use of blended cement.
Blended cement becomes more
economically competitive to allow
the buyer to share in the economic
gains.
Infrastructure project specifications
are revised to allow usage of blended
cement wherever possible.
The tax structure and policy for
blending components are revised to
prevent double taxation for buyers.
Blended cement, RMC
Hence, depending on what steps
the industry and government take, the
demand for blended cement can vary
between 30 and 40 per cent. Increase
in demand for RMC and bulk cement.
countries, the ratio of bulk cement
is typically more than 70 per cent,
and other emerging economies
also have much higher ratios than
India, including Brazil, Indonesia,
and China, all of which are above
35 per cent.
RMC, bulk cement
Inf rast ructure and logist ics
constraints have limited the rise of
RMC and bulk cement in India, due
to road infrastructure challenges and
the need for bulk terminals and bulk
handling capabilities, both with the
cement companies and end-users. .
The bulk terminals will need to be
built as close to the grinding units as
possible to optimize logistics costs.
Alternatively, the industry will need
to invest in special purpose vehicles
for managing bulk logistics wherever
bulk delivery terminals are not close to
grinding units.
Cement companies would need to
invest and significantly improve bulk
handling capabilities in order to cater
to the increased bulk demand in the
future. Investment will be required
in creating an adequate number of
warehouses with sufficient space and
equipped with the technology that
can automate the loading-unloading
processes.
Need for change in RMC
supply landscape
Large buyers procuring RMC need
consistency in quality and delivery,
and the supply landscape will have
to evolve if the market is to meet this
demand.
The RMC supply market currently
has few large, organized players and
is dominated by small, local players
that are unable to meet the quality
and delivery requirements of large
buyers.
To meet the expected RMC demand
in 2025, large and technically strong
RMC players will need to emerge amid
expanded capacity. Government will
also need to regulate the aggregates
market and the smaller RMC players in
order to provide a level playing field to
Over the past six years, however,
India has added almost 100 per cent
capacity ahead of demand, resulting
in underuse, so the present need to
increase capacity will be low (around
20 per cent, or 65 million tons) over
the next four to five years. However,
after that, overall capacity will need
to almost double to 650 to 700 mtpa
by 2025.
Two factors can enable India’s
ability to add capacity in the near
future:
Healthy returns on investments:
The ability to generate suitable
returns from current investments is an
important factor in making investment
decisions about additional capacity.
Reasonable returns will also make
the cement industry attractive from
the standpoint of foreign investments.
The industry needs to optimize costs
continually to ensure healthy Ebitda
levels.
Since cement is one of the highest-taxed
commodities, government
incentives in the form of tax relief by
providing ‘infrastructure’ status to the
cement industry or amendments to
the tax structure (to bring it closer to
other commodities) will help contain
cement prices.
Simple regulations for Greenfield
capacity: The government needs to
take steps to streamline the process
of setting up a new plant. For instance,
land acquisition is currently a complex
process. Often, land records with
state authorities are inaccurate or
incomplete, leading to delays and
disputes over ownership and land
plot size.
Updating and computerizing land
records supported through land
surveys is essential, as the process of
land acquisition has become a major
bottleneck in setting up a new plant.
Environmental and forest clearances
are other examples of processes that
would benefit from streamlining.
Raw material requirements:
The primary raw materials used to
produce the major types of cement are
limestone, gypsum, and fly ash. Over
and technological advances that might
reduce the limestone consumption per
ton of cement produced.
That said, there will be specific
regions where limestone availability
will become a crucial bottleneck much
earlier. In addition, the extraction of
limestone from the already insufficient
resources is being hindered by the
increasing administrative delays in the
procurement of prospecting licenses
and mining leases.
Gypsum
Industry demand for gypsum is
expected to reach 250 million tons
cumulatively by 2025. The usable
reserves of gypsum in India currently
amount to 140 to 150 million tons,
of which about 125 million tons are
available to the industry.
This domestic supply will be
enough to support the industry
for the next seven to eight years,
beyond which the sector will need to
rely on imports. However, because
gypsum production across the world
is abundant, importing gypsum is
not expected to be a challenge. In
addition, a few alternatives may arise,
including using synthetic gypsum
or exploring deep-seated mining in
search of additional reserves.
Fly ash
The cement industry can absorb
much of the fly ash generated by other
sectors in an ecologically beneficial
manner. In 2025, demand will reach
100 mtpa, with the cumulative amount
of fly ash consumed in that time
reaching 870 million tons.
Currently, only about 56 per cent of
the fly ash produced in India is used,
with the cement industry accounting
for almost 27 per cent of the total
production. Continued low usage
and expected power industry growth,
which will produce 650 million tons
of fly ash in 2025, ensures that the
cement industry’s fly ash requirements
are met through 2025.
(Continued in next issue)
(Courtesy: AT Kearney-CII)
Large real estate and infrastructure
players increasingly prefer RMC, and
as larger players continue to emerge,
the demand for RMC will also rise.
RMC’s share of the market will likely
grow from less than 10 per cent of total
cement demand today to as high as 25
per cent by 2025. The increased use
of RMC will also increase the demand
for bulk cement, which is expected to
reach up to 20 per cent of total cement
demand by 2025.
Comparing India’s current and
expected bulk usage ratios with other
economies reveals that India lags
behind most other countries, but it is
moving up the curve. In developed
all and allow large, organized players
to operate profitably and improve
emerging economies, but it is moving
up the curve.
The projected growth in cement
production will require considerable
new capacity and a sharp rise in
resource requirements, which will pose
several challenges for the industry.
Large investments to meet
growing demand
Cement demand in 2025 is
estimated to be between 550 and 600
mtpa, which means India will need 330
to 380 mtpa more capacity for cement
and 240 to 270 mtpa more capacity for
clinker by 2025.
the next 12 years, while fly ash will be
plentiful, the availability of domestic
gypsum could present a challenge
at a national level, while there may
be a shortfall in limestone in specific
regions.
Limestone
The cement industry will need
roughly 5.5 billion tons of limestone
by 2025. According to the Indian
Bureau of Mines, total cement-grade
limestone resources equal roughly 125
billion tons, of which about 90 billion
tons can be used.
These resources are expected to
last for another 55 to 60 years given the
expected growth in cement production
The share of cement used for infrastructure expected to rise
Demand by construction sector (% million tons)
Expected CAGR
221 290-295 395-405 550-590
2012 2016e 2020e 2025e
Note: Commercial demand includes industrial demand
Demand for OPC cement expected to rise
Consumption split by product (% million tons)
221 550-590
2012 2025e Philippines Italy United States
India
Source: Crisil, Cement Manufacturers’ Association of the Philippines, Fredonia Group British Cement Association, AT Kearney analysis

PRODUCST June 16-22, 2014 8
Leed-certified Bayer India HQ with high-performance
polycarbonate sheet for lighting applications
Kone to supply high-speed
elevators to Mumbai residential
skyscraper
Makrolon polycarbonate sheets from Bayer MaterialScience have been favourably used in the
new headquarters of Bayer India in Thane. They can be found in state-of-the-art lighting fixtures
in the offices as well as in the security glazing.
‘BIM sols can help construction
sector in cost optimisation’
Employees in the recently opened
Bayer India headquarters in Thane in
Maharashtra need not worry about
working in a well-lit room even when
burning the midnight oil. Lighting
fixtures made with Makrolon Lumen XT
polycarbonate sheets offer high light
diffusion, transmission and optimal
clarity.
They are based on the most up-to-date
forward scattering technology,
offering high luminance uniformity
and high light output at the same time.
Hence they are ideally suited for an
office environment.
The 50,000 sq ft (15,300 sq meters)
Bayer House in Thane will bring roughly
800 employees across all Bayer India
business subgroups together under
one roof. “This building is a reward
for an organization that has grown
sustainably,” says Richard van der
Merwe, Senior Country Representative
in South Asia.
“The office was built foremost to
provide a home for a fast-growing
business organization, and the
impressive and beautiful Bayer
headquarters is a symbol for the
strengths of the company as well,”
he said.
As a Leed (Leadership in Energy &
Environmental Design) Gold certified
building, the Bayer House fulfills all
stipulations for energy-saving and
conservation to make it a sustainable
building. In addition to Makrolon Lumen
XT products, the use of Makrolon
AR2 clear polycarbonate sheet for
security glazing also contributed to
Leed certification. This grade offers
high abrasion resistance, surface
hardness, impact resistance, strength
and clarity.
At the beginning of 2011, Bayer
opened its first emissions-neutral
office building in India, which later
received the top – Platinum – ranking
in the Leed rating system.
The zero-energy building needs
approximately 50 per cent less power
than comparable buidlings in the
region. Both projects provide strong
evidence of Bayer´s commitment to
energy-efficient construction and show
that sustainability can also work very
well in emerging countries.
With 2013 sales of EUR 11.2 billion,
Bayer MaterialScience is among the
world’s largest polymer companies.
Business activities are focused on
the manufacture of high-tech polymer
materials and the development of
innovative solutions for products used
in many areas of daily life.
The main segments served are the
automotive, electrical and electronics,
construction and the sports and leisure
industries. At the end of 2013, Bayer
MaterialScience had 30 production
sites and employed approximately
14,300 people around the globe. Bayer
MaterialScience is a Bayer Group
company.
Building Information Modelling
(BIM) solutions can help reduce the
capital cost and carbon footprint by
over 20 per cent in the construction
sector, says a study conducted by
KPMG and RICS School of Built
Environment at Amity University and
commissioned by 3D designing
software maker Autodesk. The study
states project delays, cost overruns
and liquidity constraints continue to
trouble the real estate and construction
sectors.
As per the report, while a number of
developed countries across the world
have already adopted BIM to reduce
project delays and cost overruns,
Indian firms are fast adopting BIM.
“BIM has the potential to provide
significant benefits to the Indian built
environment sector. But implementation
of BIM requires a change in the mindset
of all stakeholders, as managements
of most organizations are reluctant to
adopt,” said Autodesk India and Saarc
Managing Director Pradeep Nair.
To promote BIM, it is highly
essential that government agencies
and clients lay stress on the usage of
BIM in their procurement processes
and contracts, he added.
BIM, that offers digital representation
of the project during its lifecycle, right
from planning to execution of the
project, is gradually picking up among
Indian firms. BIM solutions allow users
Lighting fixtures in the offices of the new Bayer building in India are based on Makrolon Lumen
XT sheets. The polycarbonate sheets ensure for optimal lighting conditions.
Kone has won an order to deliver
29 elevators for a high-rise residential
project in the Worli district of Mumbai.
The real estate project will create
200 luxury homes in Worli Tower B.
Rising to a height of 358 meters,
and once completed, the tower will
offer residents spectacular views of
the city.
The order includes 24 Kone
MiniSpace and 5 KONE MonoSpace
elevators which feature a glass
encased scenic elevator, as well as
service elevators and an elevator for
vehicles.
Twelve of the Kone MiniSpace
elevators will be running at speeds
of 8m/s taking residents quickly and
smoothly to the top floors of the tower.
Residents will access the elevators
with an RFID card which is connected
to the Kone Access solution to improve
security and offer personalized elevator
calls. The equipment is also integrated
to Kone E-Link monitoring solution
to provide real-time view of elevator
status and ensure high availability.
“I am delighted that the customer
has chosen Kone basing their decision
on both unique product offering
and execution capability. We are
proud to offer solutions that meet
the high quality demands of this
prestigious project,” says Neeraj
Sharma, Managing Director for Kone
India.
The Worli Mixed-Use Development
has been designed by Kohn
Pederson Fox Associates and is
being constructed by Samsung C&T
Corporation. The owner is Oasis
Realty, a joint venture between Sahana
and Oberoi Realty. Installation of the
elevators is expected to be completed
at the end of 2015.
APPOINTMENTS
Harish Badami
as ACC’s new MD & CEO
ACC Ltd has appointed Harish
Badami as Managing Director &
Chief Executive Officer, with effect
from August 1, 2014. Badami would
succeed current CEO & MD Kuldip
Kaura, who will continue to be
associated with the company in the
capacity of Advisor to the Board.
Badami is a B Tech from IIT Mumbai
and an MBA from IIM Kolkata. He
has over 25 years’ experience in
the chemical industry with leading
multinational companies like ICI,
Rohm & Haas/Dow Chemicals and
Celanese India. He was President &
Managing Director of Dow Chemicals
during the period 2009-11 and till
recently the MD of Celanese India.
Expressing the sentiment of the
Board, N S Sekhsaria, Chairman, ACC
Ltd, said, “We are indeed very pleased
to have Harish Badami on board and
I am sure with his background and
rich experience he will lead ACC in
the new phase of growth. I would
like to thank Kuldip who steered
ACC admirably through the last few
years when we were going through
a low growth phase in the economy.
His ‘Institutionalizing Excellence’
programme energized the organization
with its focus on cost competitiveness,
logistics and customer excellence. All
these learning and improvements in
the past few years will continue to give
sustainable advantage to ACC.”
On the occasion, Kaura said,
“I must thank the ACC Board for
making me reboot and giving me the
opportunity to lead ACC. It has been a
rewarding four years and we were able
to focus on operational excellence
and building organisational health in
terms of leadership pipeline, capability
development and bring in a new sense
of innovation, pride and vitality in the
organization. With Jamul expansion
coming on stream next year, ACC is
now well poised to serve the Indian
market which is on the threshold of
rapid growth. I thank the ACC Parivar
and the company’s leadership team
for giving me their unstinted support
and trust.”
Badami said, “I am happy to
be a part of an organization which
commands so much respect, which
has such a rich heritage, value
system and an outstanding brand
that I admire. At this juncture, with the
economy showing positive signs, I
look forward to the exciting opportunity
to participate in its growth.”
to construct ‘smart’ and ‘computable’
three-dimensional (3D) model of
the project to enhance its design,
construction and operation.
As the awareness for BIM is
increasing within the architecture,
engineering and construction (AEC)
sectors, around 22 per cent of the
firms have already started using BIM;
and over 78 per cent firms would
adopt the technology in coming years,
according to the findings.
BIM is used most extensively in
real estate sector, mostly in design
development and construction stage.
Most users who are using BIM fall
in the residential segment, building
housing projects, etc.

EQIUPEMNT June 16-22, 2014 9
SDLG machines assist concrete
production at Shaanxi Province
Potain tower cranes building
Europe’s largest mall in Russia
A team of 11 Potain tower cranes
is building the largest shopping mall
in Europe. Covering an area the size
of 65 f football fields (463,000 m2),
Avia Park will be an entertainment
and shopping complex in the heart of
Moscow. The Potain cranes will spend
two years lifting general construction
materials at the city centre job site.
The Potain cranes, which are a mix
of different top-slewing models, were
supplied by Moscow-based crane
rental company Rentakran to main
contractor Renaissance.
Potain cranes were chosen for
the landmark project because of
their reputation for quality and the
wide variety of capabilities that its
range has to offer, as Serhan Arpaci
at Rentakran explains, “The project
needed efficient cranes that can be
individually configured and work for
long hours without stoppages.
We immediately thought of Potain,
which continues to build its reputation
for producing the best quality tower
cranes available in Russia. We are
confident that this project will run
smoothly with these cranes,” he said.
Building work at Avia Park began in
November 2012 and the Potain cranes
were erected at the job site in March
2013, where they will remain until the
project nears completion towards the
end of 2014.
The Potain cranes are operating
at varying heights between 45 m and
66 m, and are rigged with 45 m to 70
m jibs.
T h e c r a n e s a r e u s e d f o r
a huge variety of tasks including
lifting formwork, rebar, structural
components, scaffolding and façade
materials.
The cranes in use at the project
offer capacities of up to 16 t. The full
list of cranes at the site includes three
MC 235 Bs, two MDT 178s, two MC
310 Cs, two MD 265 Bs, an MD 310 C
and an MD 285 C.
US construction
machinery exports
decline 18.8 pc in Q1
The total US construction machinery
exports for first quarter 2014 totaled
$4.292 billion compared to $5.287
billion in in the first quarter of 2013
– a drop of 18.8 per cent, according
to the Association of Equipment
Manufacturers (AEM), citing US
Department of Commerce data.
The AEM off-road equipment
manufacturing trade group produces
global trends reports using Commerce
Department information to assist
members’ business planning. Nearly
all world regions recorded high single-digit
or double-digit declines, except
Africa, which experienced double-digit
growth in exports.
In Q1 of 2014, as compared
to same period in 2013, the US
construction equipment exports to
regions like Canada declined 8.5 per
cent, for a total $1.577 billion; South
America declined 33.9 per cent, for a
total $652.1 million; Asia decreased
An army of SDLG wheel
loaders is working at a
concrete manufacturing
facility in Shaanxi
Province, west China,
close to the site of the
famous Terracotta Army
Lintong, a rural settlement 35 km
to the east of Xi’An, western China,
is famous for being the birthplace of
the Terracotta Army, a collection of
terracotta figurines depicting the army
of Qin Shi Huang, China’s first-ever
Emperor. Today in Lintong, a fleet of
SDLG wheel loaders is busy loading
gravel from the nearby river plains for
Jinsheng Concrete Co Ltd, which sits
on the 800-km Wei River, facing the
Qin Mountain Range.
‘Go West’ for success
The concrete production facility
is making the most of opportunities
in the construction industry following
the launch of China’s ‘Go West’
policy, launched just before the
country’s entry into the World Trade
Organization in 2001.
The government scheme is aimed
at promoting economic development
in the remote western fringes – areas
that have previously been ignored in
favour of the big cities of Shanghai
and Beijing in the east. The policy
has promoted the construction of new
housing and infrastructure, making
Lintong the ideal place to produce
concrete.
Long-term partner
On site, four SDLG wheel loaders
navigate piles of gravel and sand
interspersed with large water pits
(which create thick mud). The
aggregate material is mixed with finer
sand to produce concrete. In some
parts of the site, the wheel loaders
have to scrape down to the river bed
to dig out the course material before
transporting it to the crushing machine
for processing into concrete.
“The terrain where the machines are
working is very muddy and machines
have to be tough to handle it,”
comments Gao Weidong, Managing
Director of Jinsheng Concrete.
“Western China has a climate of
extremes. In the wintertime it can drop
to -10°C while remaining extremely
dry – conditions that can be difficult
for some machinery to handle.”
Gao’s fleet includes an SDLG
LG953A1 wheel loader, an LG953
that he has owned for two years and
an LG953N – a model renowned
for its fuel-saving mode – plus an
older version of this model. For
Jinsheng Concrete to meet increasing
customer demand, machine uptime
and reliability are hugely important to
keep the job site running.
“We like SDLG machines because
they are straightforward, easy to
maintain and easy to operate,” says
Gao. SDLG machines are designed
for maximum reliability – and by
simplifying what goes on underneath
the hood, operators can easily
maintain the machine themselves.
Easy to operate
One operator, Hao Hongbo, who
operates one of the wheel loaders for
10 hours a day said, “The ergonomic
layout of controls makes the SDLG
wheel loaders easy to operate. I have
a great time driving around whether it’s
on top of the gravel pile or in a water
pit, because it’s easy to drive on any
terrain. When in the cab, I appreciate
the climate control system that keeps
me comfortable at any temperature
from the 38°C scorching heat to below
freezing temperatures.”
The LG953 wheel loader has
other features to improve operations,
including better visibility from the cab,
a rear-view camera and an improved
bucket design for longer uptime.
“We want the dr i ver to be
comfortable at work to keep the staff
turnover rate to a minimum. It costs a
lot to train a new operator – so our aim
is to keep our existing ones happy so
they stay with us,” Gao said.
Jinsheng Concrete was founded
just three years ago, but its annual
turnover is already in excess of $33
million. While there are reports of
a slowdown in China, for Jinsheng
Concrete the opposite is true. With
pre-orders of more than 400,000 m3
of concrete already on its books for
2014, the company will be looking to
its SDLG machines to continue their
workload, handling as much as 2,000
m3 of gravel and sand during every
10-hour day.
Shandong Lingong Construction
Machinery Co Ltd, (known as
Lingong) is one of China’s leading
manufacturers of construction
equipment, which it produces under
the SDLG brand. It is also one of the
world’s leading suppliers (by volume)
of wheel loaders. The company’s
headquarters are in Linyi, China and
it has an additional manufacturing
facility in Pederneiras, Brazil.
A team from Rentakran will manage
the scheduled maintenance and
service of the 11 cranes in conjunction
with Manitowoc Crane Care, to ensure
they continue to work at optimum
efficiency.
Established in 1996, Rentakran
represents both Grove mobile cranes
and Potain tower cranes in Russia, and
operates a fleet of 200 cranes, which
it supplies to projects in Moscow and
the surrounding region.
Avia Park will be one of the world’s
leading entertainment and shopping
destinations.
Located in the centre of Moscow
city, the huge four-level complex
will contain 262,000 m2 of leasable
space and 7,000 parking spaces. The
site aims to secure a large portion of
Moscow’s lucrative retail sales, which
currently total around $112 billion a
year, making it one of Europe’s leading
shopping destinations.
7.2 per cent, for a total $544.2 million;
Europe dropped 34 per cent, for a
total $463.7 million; Central America
decreased 26.7 per cent, for a total
$451.6 millon; Australia/Oceania
declined 41 per cent to $232.5 million;
and Africa increased 32.9 per cent to
$370.3 million.
The top countries buying the most
US-made construction machinery
during the first quarter of 2014 were:
Canada $1.577 billion (down 8.5 per
cent); Mexico $369.9 million (down
27.2 per cent); South Africa $241.5
million (up 103.8 per cent); Australia
$217.1 million (down 42.4 per cent);
Chile $197.1 million (down 19.1 per
cent); Brazil $159.9 million (down
48.1 per cent); Peru $147.1 million
(down 24.2 per cent); Saudi Arabia
$113 million (up 32.2 per cent); China
$107.2 million (down 11.3 per cent);
and Belgium $98.1 million (down 45.5
per cent).
11 Potain tower cranes are building the largest shopping mall in Moscow

AELR AEESTT June 16-22, 2014 10
Housing complexes vs
small homes
Complexes are a
superior option for
buyers, but small
buildings offer
individuals better
prospects for socialising
(MMR), we closely compare three
types of residential asset classes
(viz complexes, ultra-small buildings
and small buildings) to ascertain their
performances and level of preferences
amongst buyers and developers. We
define complexes as projects with
more than 60 apartments.
Lifestyle matters
A residential complex is a type of
project which offers multiple high-rise
towers with apartments of various
configurations and sizes. This type of
a structure can accommodate many
amenities such as gymnasium, sports
complex, large parking space, gardens
or open areas, along with good safety
and security features. A complex can
be seen as a city within a city, offering
convenience in terms of accessibility
to all the basic residential amenities.
Residential property in India has
evolved into an asset which individuals
hold for multiple purposes, not merely
self-occupancy. Individuals now seek
homes either for investment purpose,
or for weekend stays and ‘lifestyle
accommodation’. It is therefore apt to
look at residential projects on the basis
of the profile of individual buyers.
In an upcoming research note by
JLL which covers over 1,200 projects
in the Mumbai Metropolitan Region
In Mumbai, a common perception is
that living in complexes means having
to live in the suburbs or peripheral
locations. However, in recent times
land been unlocked near city centres,
and home buyers now have the option
of living in complexes within Mumbai’s
city limits.
On the flip-side, living in complexes
does not come cheap. Prices in
complexes are usually higher than a
small (30-60 units) or ultra-small (less
than 30 units) building in the same
vicinity, largely due to the provision of
better amenities in the former.
T h e b e n e f i t s o f l i v i n g i n
complexes include the availability
of a predominantly cosmopolitan
culture. However, this also means a
relatively apathetic neighbourhood
when compared to living in small and
ultra-small buildings.
Small and ultra-small buildings
offer individuals better prospects for
socialising with like-minded people
when compared to complexes. Thus,
residential complexes are best suited
for individuals or families who value
lifestyle more than other factors.
Often, families with young children
display a higher preference for living
in a complex.
Superior investment option
Complexes are also a superior
option for buyers who look at property
purchase f rom an investment
perspective. As the forthcoming study
by JLL shows, residential complexes
have enjoyed better annualised price
appreciation between project launch
and completion during the last four-year
period. Two key reasons have
emerged for this type of market
behaviour:
With more units to sell, developers
usually give discounts to early buyers
at the launch stage.
As construction progresses and
bookings increase in a complex, the
location becomes more attractive to
other developers, retail entrepreneurs,
etc, thereby raising the overall
attractiveness of the site location.
In other words, the duration for
holding onto an investment in a
residential complex has a direct
relation to the rate of returns that
investors could expect.
With a higher number of units to
sell when compared to small and ultra-small
projects, the bargaining power
of developers reduces to some extent.
Developers of residential complexes
see such projects as a volume rather
than value game. It is primarily large
developers that enter into the business
of constructing complexes, largely due
to the scale of operation.
Over the last few years since 2009,
close to 60 per cent of the projects
launched in the Mumbai Metropolitan
Region were residential complexes,
with the maximum incidence evident
in the Thane, east-suburban and west-suburban
sub-markets.
Option of choice
Residential complexes should be
the option of choice for buyers with
a penchant for lifestyle living and a
willingness to forego a certain degree
of local community. Young couples
with children prefer complexes over
others form of residential development
despite the higher prices.
While investors find it lucrative
to buy apartments in complexes, it
has been observed that those with a
longer investment horizon benefit from
a better rate of return when compared
to those with shorter investment
horizons.
Ashutosh
Limaye
Head - Research &
REIS, JLL India
B Sridhar
Senior Consultant,
Strategic Consulting
(Education,
Healthcare & Senior
Living), JLL India
Senior living projects
Delivery models have to
be carefully designed to
attract maximum end-users
to the project
years, wherein active adults are able to
take care of themselves, and generally
do not have serious health issues.
Assisted Living (AL), on the other
hand, pertains to adults aged 65
and above. Typically, AL caters to
individuals who need assistance with
daily activities, but do not require
nursing home care. IL would see
greater market movement and supply.
The market is yet to mature for services
offered in the AL, Skilled Nursing
(SN) and Continuing Care Retirement
Communities (CCRC) segments.
To cater to the needs of senior
citizen is definitely very important. The
sheer number of people who are used
to a certain standard of nuclear living
and are interested in maintaining the
same standards are significant.
India vs developed countries
Indian companies need to learn a
lot from developed markets in terms
of service delivery. On the other hand,
given that Indians have an affinity
towards real estate, the delivery
models have to be carefully designed
to attract maximum end-users to the
The entry by a major developer and
a healthcare operator into the senior
and assisted living sector has caught
everyone’s attention, which has been
one of the factors for renewed industry
focus. Besides, the product offerings
have also matured – earlier, these were
being seen as housing solutions, and
now they are more services-oriented.
Percentage-wise, the senior living
sector has a long way to go before
numbers can be discussed at a level
significant within the purview of the
real estate market. However, given
the country’s demographic profile,
demand is certainly expected to grow
significantly over the next 5 to 10 years.
More real estate developers will explore
this segment as part of their larger
integrated township developments.
Cities which have traditionally been
retirement destinations will see the
launch of significantly more projects
than in other parts of the country.
Catching up in tier-1 cities
Originally concentrated more in
tier-2 and tier-3 cities, senior living
is now catching up in tier-1 cities,
as well. However, a lot will depend
on the acceptance of key projects
which have already been launched
in the market, as and when they
get delivered. Traditional retirement
locations, regardless of whether they
are tier-2 or tier-3, are expected to see
further growth.
Senior living, or technically,
Independent Living (IL) as the name
suggests, is typically a concept
pertaining to the age bracket 50+
project. This makes the segment
unique to the Indian context in certain
ways.
Typical residential units (both
apartment and villas) that are being
offered in senior living projects range
from 1 BHK to 3 BHK, with the only real
difference between these units and
normal developed homes being the
design/architecture aspects.
When it comes to costs, however,
there are significant differences. Apart
from the real estate costs, there is a
recurring monthly cost for the services
offered. Pricing may vary depending
on the location, size and project
positioning. For example, at least one
project which is at the ultra-luxury
level, while other projects are at the
mid-luxury level.
Locations & models
Also, senior living projects do
not need to be in central locations.
By definition, there are certain
requirements for a senior living site;
for instance, it should be located near
a healthcare facility, cater to the social
needs of the resident seniors and
should offer adequate security.
These projects have been offered
on various delivery models, but the
primary ones are Sale Model, Lease
Model and Deposit Model. Besides
these real estate agreements, there is
usually a separate agreement for the
specialized services.
The typical buyers are generally
seniors aged over 55 year who are
well travelled, are accustomed to a
certain degree of quality services
(such as retired corporate, armed
forces and civil service personnel) and,
sometimes, have their dependents
living abroad. NRIs who wish to
return or individuals with a business
background who wish to buy a second
home are also considering such
projects.
Credai seeks lower borrowing
cost for housing sector
The address of the President
of India, Pranab Mukherjee, to the
joint session of Parliament on June
9 focused on housing for all within
75 years of independence. “The
government will build 100 cities
focused on specialized domains and
equipped with world-class amenities.
By the time the nation completes
75 years of its independence, every
family will have a pucca house with
water connection, toilet facilities, 24x7
electricity supply and access,” he said
in his speech.
Unable to make much progress due
to high construction costs and lower
margins, developers have demanded
lower borrowing cost and taxes to
promote affordable housing. According
to realty experts, low profit margin is
one of the reasons why developers
find the sector unattractive.
“Every time the market slows down,
developers reduce the ticket size,
lowering the prices of smaller units,
while retaining the amenities that
usually go with high-end projects. So it
becomes affordable,” said an analyst.
Shortage of affordable homes has
resulted in illegal construction and
building collapses in many parts of the
country. According to reports, there is
a shortage of 18 million homes, both
for the economically weaker section
and the lower income group.
The President’s address highlighted
the fact that growing urbanization is an
opportunity rather than a challenge,
said Urban Development Minister M
Venkaiah Naidu.
Cr eda i , r e a l t y de v e l ope r s
association, in its recommendations
to Naidu has sought lower borrowing
cost for the housing sector through
a mix of interest subvention for low-income
borrowers and greater access
to finance by developers. It has also
asked for the removal of the minimum
requirement of 50,000 sq m and
capital requirement of $5 million for
foreign direct investment in case of
affordable housing, automatic external
commercial borrowing and higher
refinance from National Housing Bank
to housing finance companies.
At 35 per cent of the cost of a
completed unit, housing also faces a
disproportionate incidence of taxes.
“This can be partially alleviated by
giving the tax treatment of special
economic zones to affordable housing
projects and increasing threshold
limits of deduction on interest to Rs 5
lakh on housing,” stated Credai.
Representation only
Representation only

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