Page 39 - Built Expressions - Online Construction Magazine - November 2014 Issue

Cover Feature by several companies so that easy Though the Indian construction sq ft, which will be touching 10.15 purchase and delivery) equipment industry is a fraction of billion sq ft by 2020. Reports also • Country of origin. (If importing the global market, whose size is over state that the housing sector has a foreign exchange facility should be US$ 75 billion, it has been growing at requirement of 85% of potential space easily available) an average of 30% annually compared requirement, but faces a shortfall of • Unit cost of production – cost of to the global growth of 5%. India is 26 million units. This will lead to India running one among the top 10 markets for having a cumulative demand of 2.3 • Availability of spare parts and construction equipment and is one million units in next fve years, against selection of manufacturer. of the key international markets. The supply of one million units. • Availability of local labour for growth in this industry is expected operations. to be primarily due to investments The Adaptability factor in infrastructure, investments by the Experts indicate that “in the case of Current Status Government in the form of external metros and cosmopolitan towns, due The Indian Construction Equipment borrowings and internal accruals by to constraint of site and geographical sector has an estimated market size Public - Private - Partnerships (PPP) locations, customers are forced to use of US$ 2.4 – 2.6 billion for the year model. Indian frms are strengthening a variety of machinery to execute the 2007. The industry has been growing their existing operations for catering construction projects. But in case of due to the large investments made to the growing domestic demand and Tier III and IV cities, it is observed by the Government and the private are also planning to expand to tap that the mechanisation is related sector infrastructure developments. overseas markets. At the same time to mixing and lifting of concrete; The prospects of the construction international majors have ambitious placing and compaction has been equipment industry look attractive plans for India. done manually. Material lifting is with a projected investment of US$ As per data by industry reports, partly done manually and partly by 320 billion in the infrastructure India builds an average of 8.7 billion machine; bar-bending and cutting sector over the next few years. The sq ft of real estate space every year or in majority of locations has been Indian market is catered by about about 95 billion sq ft in the current done manually, but now is slowly 200 domestic manufacturers (small, decade from 2010-20. In 2010, the changing to machines due to speed medium & large). annual requirement stood at 7.3 billion and economy factors.” Vol: 3 Issue: 11 November 2014 Built Expressions PG 39