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JANUARY 02, 2012

An MMR, Braj Binani Group Publication


No. 16

JANUARY 02, 2012

Events that will shape the cement industry in 2012

For the Indian cement industry, the year 2012 starts on a promising note. The preceding year 2011 was full of achievements. During that year the industry witnessed major realignments which are going to shape the industry in 2012. To s t a r t w i t h , t h e p a n - I n d i a players ACC Ltd, Ambuja Cements and UltraTech Cement not only consolidated their markets but marched ahead with acquisitions and exports. Right through the year 2011, the industry was abuzz with the merger of Holcim-controlled ACC Ltd and Ambuja Cements. The year 2012 may see a likely merger of the Holcim-controlled cement companies in India. However, in the midst of these encouraging developments, Narotam Sekhsaria, the czar of the Indian cement industry, exited his stake from Ambuja Cements, which he once co-founded. The Aditya Birla Groups UltraTech Cement, in all probability, will emerge as the single largest cement producer in the country. Throughout the year UltraTech Cement was on the prowl. The company has set a corpus of Rs 11,000 crore to upgrade its manufacturing facilities and for expansions. The year 2012 will witness the merger of Century Textile, which has a cement capacity of 7.8 million tons, with UltraTech Cement. UltraTech Cement is also likely to acquire the cement business of Jaypee Group and Lafarges cement business in South Africa. The southern cement companies are vying for the national pie. India Cements has acquired major shares in Rajesthan-based Trinetra Cement. The overseas coal mines acquired by the company in Indonesia are expected to go on stream this month. Puneet Dalmia, Managing Director of South India-based Dalmia Cement, has set an ambitious target, which includes pan-India presence. Andhra Pradesh-based Bharathi Cement has launched their products in Mumbai, and other South players also consolidated their markets. Madras Cement placed its Bengal unit on block for sale to expand its market in the South. Amareswari Cements merged with Sagar Cements, while Rain Commodities acquired Birla Cement & Industries from the Yash Birla Group.

majority stake in the company. Both the deals fell through.

Deals that clicked

Deals that fell through

The South-based Shree Jayajothi Cements and the Meghalaya-based Cement Manufacturing Company Ltd were the most sought-after companies. Reliance Cementation was likely to purchase Shree Jayajothi Cements, while Cement Manufacturing Company Ltd, the manufacturer of Star Cement, was approached by Lafarge India for a

Jaypee Group purchased Andhra Cements, and Prism Cement acquired 50 per cent stake in Small Tiles, which will compliment its tiles business. Zuari Cement acquired 74 per cent equity capital of Gulbarga Cement, while Ambuja Cements acquired fly ash maker Dirk India and its subsidiary Dirk Pozzocrete (MP) Pvt Ltd. Ambuja Cement acquired 85 per cent stake in Nepal-based Dang Cement, and JK Lakshmi Cement acquired production facilities of Nihon Nirman Ltd from IDBI, while it dropped its plans to acquire a cement plant in Egypt. Gujaratbased Sanghi Cement has begun construction of a cement plant in Kenya. Rashtriya Ispat Nigam Ltd (RINL) announced its plan to enter the cement sector in a joint venture. Bellary-based Bharat Mines & Minerals plans to enter cement production, whereas Tamil Nadu Newsprint & Paper Ltd is constructing a 600-ton-a-day minicement plant. West Bengal remained the favourite destination for the Indian cement industry. After two decades, the industry-friendly policies of Chief Minister Mamta Banerjee have lured cement majors UltraTech Cement, ACC Ltd, Ambuja Cement, Reliance Cementation and others to flock to West Bengal.

Newest entrants

Favourite destination

Real estate sector to recover in 2012

Some of the key factors that impacted the real estate industry in 2011 included rising inflation, depreciating rupee value, decreasing Gross Domestic Product (GDP) numbers, thinning foreign investments, high commodity prices, ever-increasing interest rates and economic slowdown. Developers were highly reluctant to reduce prices due to the tight liquidity situation and increasing inflation that resulted in high cost of construction. They had to look out for alternate strategies including other funding sources -- private equity, sale of non-core assets, loan restructuring and quick selling plotted development to generate sufficient cash flows. However, industry players are of the view that 2012 certainly looks more productive and progressive in comparison to 2011. Builders may focus on execution and delivering the committed projects in 2012 rather than launching a slew of new projects to avoid insurmountable inventory overhang. Samir Jasuja, Founder & CEO, PropEquity, a real estate data, intelligence and analytics provider, said, Limited access to funds, increasing cost of debt and high construction costs remained a concern for developers. They had to brave regulatory bottlenecks such as delay in project approvals and land acquisition rigmarole. Given the liquidity crunch in 2011, builders had to go slow on execution of projects, resulting in construction delays and higher unsold inventories. He added, As on September 2011, Delhi-NCR had the maximum unsold inventory levels of residential real estate at 102,758 units, followed by the Mumbai Metropolitan Region (90,512 units), Bengaluru (46,596 units) and Pune (40,734 units). According to industry statistics, top 11 listed real estate companies accumulated a debt of over Rs 8,000 crore. As a result, many developers scaled down their projects and some even sold their non-core assets. There was also an increasing trend of cashstrapped developers pooling land, marketing and capital resources for joint projects to minimize risks. 5.76 million sq. ft. of inventory piled up in top six cities of NCR, the Mumbai Metropolitan Region, Bengaluru, Pune, Hyderabad and Chennai. The inventory pile-up by 10 listed companies amounted to over Rs 31,000 crore, informed an industry source. Commercial office real estate was also in stress due to a slowdown in demand and an oversupply situation. There was excess supply of nearly 166 million sq. ft. of ready and underconstruction commercial space across top seven cities of Mumbai, Delhi NCR, Bengaluru, Chennai, Hyderabad, Pune and Kolkata, he added. Affordability and increasing home loan interest rates were some of the major concerns for buyers in 2011. RBI announced key policy rate hikes 12 times aggregating 375 basis points since March 2010. The banks, in turn, responded with similar hikes in lending rates. Moreover, buyers were expecting a price correction which did not happen, delaying their buying decisions. However, David Walker, Executive Director, Sare Homes, is of the view that expectation of lowering of interest rates coupled with softening of construction cost is expected to boost the end-user demand for housing in 2012. Shailesh Puranik, MD, Puranik Builders Pvt. Ltd said, The Indian Real Estate sector will see relatively brighter days in 2012. There are tremendous growth prospects in this sector in the near future. There is an indication of RBI unlikely to increase the repo rates. Besides, the central bank is likely to announce a cut in CRR in the near future. Mayur Shah, MD, Marathon Group, is positive that the government is likely to be more supportive towards developers and is considering issues like delays in approval, increase in FSI rates and improvement in infrastructure. Shah said, Inflation and rise in repo rates are likely to be in control. Considering such factors, we are positive that the solutions will be out in the near future that will facilitate builders to provide better housing facilities for the potential buyers. The proposed infrastructure development is expected to boost the real estate sentiments. M a n o j J o h n , V P, C o r p o r a t e Planning & Strategy, RNA Corp, is

of the view that 2012 would be a litmus test for the real estate sector. It is important for the economy to break free of the vicious impact of inflationary pressures and countermeasures taken by RBI. Home loan rates need to ease out and home buyers should feel assured of a stable EMI outflow. There needs to be more funding options for the sector, he said. Ashutosh Limaye, Head (Research), Jones Lang LaSalle India, a real estate consultancy, believes that the first half of 2012 is likely to remain a buyers market, with continued discounts and freebies offered to them. Project-specific price increases can be expected across all sub-markets, especially in projects that are being delivered or are nearing completion, said Limaye. He continued, Project delays may continue as developers are still short on funds and increasing construction costs have affected their margins. Most developers are banking on project sales to generate funds. We will see a slowdown in construction activity for some time. However, as demand improves, better sales will benefit developers, who will focus on the execution of their ongoing project portfolios.


JANUARY 02, 2012

C ement P rices
Western Region

Northern Region

Southern Region


Pune Ahmedabad* Surat*

NA NA NA 250 250 250 250 250 250 250 250 250 258 258 258 NA NA NA



NA NA 265 NA NA 270 NA NA 273 NA NA 268 285 NA 285 NA NA 265

Chennai Hyderabad Bengaluru

ACC Ltd Grade 43 280 285 NA Grade 53 280 285 NA PPC 275 282 NA Ambuja Cement Grade 43 280 290 245 Grade 53 280 290 245 PPC 275 288 245 UltraTech Cement Grade 43 280 294 245 Grade 53 280 294 245 PPC 275 290 245 Saurashtra Cement Grade 43 265 NA 245 Grade 53 265 NA 245 PPC 270 NA 245 Binani Cement Grade 43 NA NA 250 Grade 53 275 NA 250 PPC NA NA 250 Vasvadatta Cement Grade 43 290 296 NA Grade 53 288 298 NA PPC 286 292 NA

ACC Ltd Grade 43 255 275 Grade 53 255 275 PPC 252 270 Ambuja Cement Grade 43 265 275 Grade 53 265 275 PPC 260 270 UltraTech Cement Grade 43 260 275 Grade 53 260 275 PPC 255 270 JK Lashmi Cement Grade 43 250 275 Grade 53 250 275 PPC 248 260 Binani Cement Grade 43 245 265 Grade 53 245 265 PPC 243 260 Shree Cement Grade 43 245 265 Grade 53 245 265 PPC 243 260

* The prices listed above are non-trade prices

Ramco Cement Grade 43 305 270 305 Grade 53 305 NA 305 PPC 300 265 300 Coromandel Grade 43 310 270 300 Grade 53 310 270 300 PPC 305 265 295 Dalmia Cement Grade 43 310 260 305 Grade 53 310 260 305 PPC 305 255 300 UltraTech Grade 43 310 283 315 Grade 53 310 283 315 PPC 305 278 310 ACC Grade 43 310 285 310 Grade 53 310 285 310 PPC 305 280 305 Zuari Cement Grade 43 305 265 305 Grade 53 305 265 305 PPC 300 260 300 The prices listed above are retail prices Disclaimer: The prices have been sourced from distributors

Date 9/7/2011 9/22/2011 9/29/2011 9/30/2011 9/4/2011 9/20/2011 9/27/2011 9/28/2011 9/12/2011 9/16/2011 9/23/2011 9/23/2011 9/24/2011 9/9/2011 9/23/2011 9/27/2011 9/1/2011 9/12/2011 9/19/2011 9/20/2011 9/26/2011 9/6/2011 9/30/2011 9/20/2011 9/30/2011 9/12/2011 9/14/2011 9/17/2011 9/19/2011 9/19/2011 9/26/2011 9/26/2011 9/29/2011 9/29/2011 9/30/2011 9/30/2011 9/5/2011 9/5/2011 9/14/2011 9/19/2011 9/19/2011 9/19/2011 9/20/2011 9/21/2011 9/29/2011 9/30/2011 9/14/2011 9/14/2011 9/16/2011 9/16/2011 9/16/2011 9/26/2011 9/26/2011 9/26/2011 9/27/2011 9/28/2011 9/29/2011 9/2/2011 9/3/2011 9/7/2011 9/19/2011 9/20/2011 9/21/2011 9/21/2011 9/23/2011 9/23/2011 9/23/2011 9/26/2011 9/27/2011 9/27/2011 9/28/2011 9/30/2011 9/30/2011 9/1/2011 9/2/2011 9/2/2011 9/13/2011 9/15/2011 9/16/2011 9/19/2011 9/20/2011 9/21/2011 9/23/2011 9/23/2011

Exports of Cement & Cement Products

Product/Description Port Country Qty Value Petroleum coke, petroleum bitumen PETROLEUM COKE CALCINIDE MUN S. ARABIA 2,000 34,000 CALCINED PETROLEUM COKE JNP ISRAEL 18,000 599,554 Calcined Petroleum Coke JNP GHANA 16,000 387,960 RAW PETROLEUME COKE MUN TANZANIA 1,155,000 41,795,614 Natural barium sulphate (barytes); natural barium carbonate Natural barium sulphate (barytes) MICRONISED MINERAL POWDER MUN UAE 56,000 1,081,920 MICRONISED MINERAL POWDER MUN UAE 28,000 372,400 MINERAL POWDER FDBRTP30007 MICRON MUN S. ARABIA 14,000 72,324 BARYTES SSW 500 MESH JNP SRI LANKA 6,000 156,364 Siliceous fossil meals and similar siliceous earths FILTER AID (DIATOMITE) JNP UAE 20,500 381,374 DIATOMITE STANDARD SUPERCEL JNP SRI LANKA 1,907 98,077 FILTER AID (DIATOMITE) JNP UAE 9,000 171,288 DIATOMACEOUS EARTH KIESELGUHR/REA MUN S. ARABIA 1,020,000 12,796,920 ROASTED CLAY JNP KENYA 2,000 20,130 Emery, natural corundum, natural garnet and other natural abrasives POLISHED GARNET SMALL JNP GERMANY 28,249 705,626 CAPTAIN BRAND EMRY GRAINS MUN PHILIPPINES 27,000 123,930 EMERY GRAINS STG :0-3MM MUN SINGAPORE 26,000 155,480 Pebbles, gravel, broken or crushed stone Of marbleI GARDA SANDSTONE COBBLES MUN BELGIUM 27,900 46,705 FLINT GRIANS MUN DJIBOUTI 25,000 78,125 PEBBLES SNOW WHITE MUN BAHARAIN 27,000 44,346 Dolomite, whether or not calcined; dolomite roughly trimmed Dolomite not calcined MINERAL POWDER FDDOL MUN MALAYSIA 20,000 56,000 RAMMING MASS WITH BORICACID MUN OMAN 24,000 139,392 Natural magnesium carbonate; fused magnesia; dead-burned Natural magnesium carbonate (magnesite)-Others ROLLER ENGOBE R-20 JNP UAE 40,000 570,700 UN GROUND ENGOBE USED FOR COATING JNP S. ARABIA 60,000 1,125,450 Quicklime, slaked lime and hydraulic lime - Quicklime DESSICANT POWDER (COATED CALCIUM OXIDE ) JNP UAE 5,000 96,363 QUICK LIME FINES JNP GERMANY 903 47,937 Sulphur of all kinds, other than sublimed sulphur SULPHUR POWDER JNP NIGERIA 44,000 809,600 SULPHUR POWDER JNP UAE 14,000 389,249 KEMOLIT A-60 MUN USA 20,400 91,555 KEMOLIT S-4 MUN AUSTRALIA 107,450 4,329,563 KEMOLIT SV-44(WOLLASTONITE POWDER) MUN ITALY 26,400 185,391 SULPHUR POWDER JNP BANGLADESH 294,000 5,652,092 KEMOLIT KSV-51(WOLLASTONITE POWDER) MUN GERMANY 98,943 603,651 KEMOLIT A-60(QW)(WOLLASTONITE POWDER) MUN BELGIUM 2,653,600 56,826,250 KEMOLIT K-60 (WOLLASTONITE POWDER MUN JAPAN 258,000 2,705,400 KEMOLIT S-4(WOLLASTONITE POWDER) MUN AUSTRALIA 42,980 692,730 SLAG COAGULANT JNP S. ARABIA 48,000 326,871 Natural graphite In powder or in flakes ORGANIC RED PEPPER FLAKES JNP UAE 200 5,619 CARBOFOIL OF VARIOUS GRADES JNP U K 18,000 2,093,698 GRAPHITE FINE & MIX GRAPH JNP BAHARAIN 1,000 54,900 GRAPHITE POWDER MUN ZAIRE 2,000 4,200 GRAPHITE POWDER MUN ZAIRE 2,000 4,200 GRAPHITE PAINT THINNER BASED MUN DJIBOUTI 7,000 32,500 CARBOFOIL JNP GERMANY 18,000 2,609,798 NATURAL GRAPHITE FC 30-35% MUN DJIBOUTI 3,000 11,835 GRAPHITE POWEDER MUN NIGERIA 8,000 16,000 CARBURISERS - C (GRAPHITE GRANULES) JNP S. ARABIA 3,000 143,020 Natural sands of all kinds, whether or not coloured Silica sand and quartz sands (EPOXY RESIN) POLYURETHENE RESIN JNP GHANA 5,000 78,690 840 HDPE/ PP MUN KUWAIT 42,000 349,272 NATURAL STONE AQ RANDOM MUN AUSTRALIA 1,000 3,000 SILICA SAND -02 MUN MALAYSIA 75,000 601,875 SILICA RAMMING MASS MUN UGANDA 76,500 409,658 55.00MT OUT OF 625.6TONS OF QUARTZ SA MUN DJIBOUTI 1,113,700 14,703,609 QUARTZ SAND MUN NIGERIA 825,000 11,192,500 SILICA FLOUR-200 MESH MUN UAE 168,000 1,191,680 TUNDISH SUPPORT SAND PACKED IN JUMB MUN OMAN 100,000 1,250,000 RAW MATERIAL FOR PAINTS JNP SRI LANKA 600 11,789 QUARTZ SAND (0.7-1.2) MUN KOREA 180,000 2,104,000 Quartz (other than natural sands) Quartz QUARTZ LUMP MUN KUWAIT 130,000 1,326,650 QUARTZ POWDER 325 MESH MUN INDONESIA 27,000 80,919 SILICA RAMMING MASS MUN MOZAMBIQUE 102,000 1,040,400 QUARTZ POWDER SNOW WHITE 200# MUN MALAYSIA 135,000 565,704 QUARTZ POWDER 500MESH MUN THAILAND 25,000 125,000 SILICA QUARTZ POWDER 500 MESH SNOW MUN SURINAME 24,000 121,584 QUARTZ POWDER 0.5 TO 1MM MUN UAE 769,000 5,878,008 RAW MATERIALS FOR CERAMIC SANITARY MUN BANGLADESH 104,000 553,112 QUARTZ SAND FOR PROJECT ROLLING MI MUN NIGERIA 189,000 4,643,730 QUARTZ POWDER QZ 01 325 MESH PKD IN 5 MUN VIETNAM 941,000 17,331,250 QUARTZ GRITS LUMPS MUN ISRAEL 80,600 162,411 QUARTZ POWDER QZ 01 200MESH PKD IN 5 MUN EGYPT 52,000 419,120 QUARTZ POWDER QZ 01 200MESH PKD IN 5 MUN EGYPT 52,000 419,120 RAMMING MASS MUN KENYA 25,000 53,475 QUARTZ GRITS MUN ITALY 270,000 1,510,488 QUARTZ GRAINS MUN OMAN 330,000 3,886,300 Kaolin and other kaolinic clays, whether or not calcine MINERAL POWDER CALCINED KAOLIN FD MUN KENYA 17,000 119,935 KAOLIN LUMPS(HIND BODY LUMPS) MUN JORDAN 25,000 90,625 KAOLIN MUN ZAIRE 66,000 609,840 CALCINED KAOLIN MUN IRAN 23,200 223,370 125 MT KAOLIN MUN TAIWAN 250,000 3,406,250 CALCINED KAOLIN (KT-90 GRADE) MUN MALAYSIA 26,500 277,389 KAOLIN POWDER (MIXED FORM) MUN CHINA 4,000 8,000 MINERAL POWDER FDCLNP30018 HYPER PL MUN MAURITIUS 62,500 505,020 KAOLIN POWDER JNP IRAN 40,000 247,050 LIGHT KAOLIN IP . JNP NIGERIA 5,000 114,375 CHINA CLAY T-95 (650 HDPE BAGS) MUN SRI LANKA 52,000 267,696

FOB Rates 17.0 33.3 24.2 36.2 19.3 13.3 5.2 26.1 18.6 51.4 19.0 12.5 10.1 25.0 4.6 6.0 1.7 3.1 1.6 2.8 5.8 14.3 18.8 19.3 53.1 18.4 27.8 4.5 40.3 7.0 19.2 6.1 21.4 10.5 16.1 6.8 28.1 116.3 54.9 2.1 2.1 4.6 145.0 3.9 2.0 47.7 15.7 8.3 3.0 8.0 5.4 13.2 13.6 7.1 12.5 19.6 11.7 10.2 3.0 10.2 4.2 5.0 5.1 7.6 5.3 24.6 18.4 2.0 8.1 8.1 2.1 5.6 11.8 7.1 3.6 9.2 9.6 13.6 10.5 2.0 8.1 6.2 22.9 5.1

Date 9/24/2011 9/24/2011 9/25/2011 9/27/2011 9/27/2011 9/27/2011 9/28/2011 9/29/2011 9/29/2011 9/29/2011 9/30/2011 9/30/2011 9/2/2011 9/2/2011 9/3/2011 9/4/2011 9/5/2011 9/5/2011 9/9/2011 9/9/2011 9/9/2011 9/14/2011 9/15/2011 9/17/2011 9/17/2011 9/17/2011 9/20/2011 9/20/2011 9/21/2011 9/21/2011 9/21/2011 9/21/2011 9/22/2011 9/22/2011 9/23/2011 9/24/2011 9/24/2011 9/25/2011 9/26/2011 9/26/2011 9/26/2011 9/27/2011 9/27/2011 9/27/2011 9/28/2011 9/28/2011 9/28/2011 9/29/2011 9/29/2011 9/29/2011 9/29/2011 9/29/2011 9/30/2011 9/30/2011 9/30/2011 9/30/2011 9/30/2011 9/30/2011 9/5/2011 9/5/2011 9/5/2011 9/12/2011 9/13/2011 9/17/2011 9/21/2011 9/24/2011 9/26/2011 9/30/2011 9/30/2011 9/30/2011 9/2/2011 9/2/2011 9/6/2011 9/6/2011 9/6/2011 9/6/2011 9/7/2011 9/7/2011 9/12/2011 9/12/2011 9/13/2011 9/13/2011 9/15/2011 9/19/2011 9/19/2011 9/21/2011 9/21/2011 9/21/2011 9/21/2011 9/23/2011 9/23/2011 9/26/2011 9/26/2011 9/27/2011 9/29/2011 9/30/2011 9/30/2011






FOB Rates 9.0 7.6 4.8 6.1 7.5 7.4 8.4 5.9 14.4 6.3 5.4 4.8 9.8 5.1 6.2 9.9 3.8 8.0 2.5 5.0 8.0 5.5 3.6 28.9 11.5 5.3 2.5 13.3 5.4 8.3 6.9 5.1 15.8 3.1 8.4 2.6 16.5 10.3 1.2 14.0 5.2 15.1 2.7 6.7 15.4 4.8 11.1 14.6 11.9 8.0 15.4 13.9 13.0 9.8 10.0 16.5 5.9 4.8 30.0 24.4 23.0 24.4 40.0 15.8 14.7 9.2 2.1 8.9 17.8 48.0 32.9 17.0 2.2 18.2 45.2 25.2 2.6 0.5 7.4 3.2 73.5 8.2 77.8 1.4 1.4 75.9 75.9 2.5 0.8 65.9 13.2 6.6 19.4 2.7 20.2 9.9 45.6



JANUARY 02, 2012

Issues facing repairs in housing societies

If we want quality work we must quote proper rates and offer advance amount to contractors. But this generally does not happen with repair works of housing societies
The sector of civil engineering is poorly organised and needs proper attention of all concerned to achieve excellent results to enhance the life of RCC buildings. A project is controlled by a professional project manager who takes all decisions. In case of buildings there are many who have a say but are not professionals and their supervision is poor. This results in innumerable problems in smooth running of restoration work. ongoing sites of contractors in coordination with the consultant. This should take around one week or so. But some societies go on negotiating rates for months together and ask contractors to reduce the rates of individual items to the lowest from various tenders opened. Many a time a contractor reduces rates to such a level -- which are not workable, yet he wants the work at any cost -- because he has no work and needs a reason to shift his scaffolding and other materials. In such situations, after initial major work is complete, the balance work suffers as the contractor takes only a few workers and proceeds slow on the remaining work to control his losses. Payments are not made to the contractor regularly as per mutually agreed terms. This is delayed for one or the other petty problems, and the work suffers. At times big payments are held up for small problems without any justification. In such situations the work comes to a grinding halt. Terms are generally one-sided if penalty clause is included then there has to be a bonus clause also.

Precautions during work

Individual flat owners, the society and the contractor have to take a number of precautions to ensure smooth running of up-gradation work without any disputes and misunderstanding during progress of the work. Generally, the contractor is given two sides of the building to start with. Because of the scaffolding

grills and weather sheds during the work. These may require modifications before re fixing which must be done by anticorrosive anchor fasteners. Many a time individual flat owners take up interior work when the repair work is in progress. Their contractors dump debris carelessly, which chokes the house drain or open up plumbing

Difference of opinions

Presently office bearers and members of the repair committee of housing societies -- who are employed -- look after the work of repairs. As they are busy they cannot give sufficient time and as there are many to decide and they are not experts in the subject, work suffers due to lack of professionalism. Due to difference of opinions on a particular item of the job, the contractor does not get quick clearance or clear instructions and thus work suffers and at times the contractor incurs loss. Besides this point, the committee meetings are kept late in the night. This is not at all convenient either to consultants or contractors, especially in Mumbai, as they stay far away from the place of work. Meetings must be arranged only during office hours. For this, the society should encourage housewives and senior citizens to be office bearers who will be available during day. To make the work of restoration easier, it is necessary to entrust the entire technical matter to consultants. There are varied problems different with each housing society. Some of them are as follows. If we want excellent work we must give advance amount and offer proper rates to contractors. But this generally does not happen with repair works of housing societies. After tenders are opened, two or three contractors are short-listed. The society has to select one by interviewing, negotiating and visiting

Bill of extra Items

Many a time the contractor is asked to do work which is not in the Bill of Quantities. Payments of such items extra items - generally get delayed even though the contractor submits the Rate Analysis along with the bill of extra items with the consultants verification. Even after the submission of extra items with the above procedure, societies go on negotiating, thus the contractor does not get payment on right time and the work is held up. Payments must be paid as per mutually agreed terms. Many contractors do not submit bills every 15 days or at least every month. They submit the first running bill after three to four months as the bill amount is not so large or the contractor is busy. But then once the bill is submitted, the society takes time to clear doubts and release payment. Hence, it is advisable for the contractor to submit bills every month irrespective of what the total amount is so that the entire system gets streamlined. Usually, the main reason for non-payment is leakage, and the main dispute between the society and the contractor for non payment is leakage. Generally repair works are not taken up in totality on the pretext of shortage of funds. Proper repair work is to attend to all the sources of leakage and to rehabilitate all RCC members which have deteriorated

Submission of bills

Rates and payments

due to leakage. Again, in many societies work is not done as per the latest scientific methodologies and specifications to cut on cost, which reflects on quality of work. Also, during progress of restoration work many flat owners replace their wooden window frames by aluminium sliding windows or fix tin weather shades by engaging other agency. Many times these are not fitted properly, with the result leakage takes place below the window and inside the room at the tin joint. In such circumstances if any leakage is noticed during the progress of work or at the end of work from locations not attended by the contractor the society does not pay for years and work comes to a grinding halt. In cases where leakage is noticed from locations where the contractor has worked and when he agrees to attend to it and requests the society to release 80 per cent of payment, if not 100 per cent -- but because one or a few members who object -- the entire payment is withheld when the society has earnest money and retention amount deducted from every running bill with them as security that of the contractor. In this situation also the work either slows down or totally stops.

Escalation in prices

There is no escalation clause in the repair contracts of society buildings. Since the year 2010 there have been a lot of problems due to abnormal increase in the price of sand. It will be better to include base prices for main materials like cement, sand in the contract and pay the contractor for any increase subsequently so that he does not lose and work proceeds smoothly. We have included escalation in recent contracts with full consent of societies.

Financial position of the client

It is learnt that a contractor in the USA finds out financial position of the client before entering into a contract with him. There is no such system in India. There are many examples where the contractor is asked to go ahead with speed when the society does not have funds and finally the contractor does not get paid, causing serious problems to the society and himself.

and the entire front faade is covered by sheets rooms against these will have no light and experience dust nuisance. Workers have also to enter these rooms for rehabilitation of RCC members. Individual flat owners must remove all valuables and furniture from these rooms or if removable of heavy furniture is not possible, these must be properly covered. Again, floor material must be protected properly either by plywood or by PoP . Every evening rooms must be cleaned by the contractor. It is better that valuables are removed from flats to bank lockers by all flat owners. At least they must be kept in proper lock and key. Whenever there is theft the first blame goes to workers of the contractor. Many a times it was found that the person who committed theft belonged to the society and not to the contractor. For re-plastering the prepared external surface of the wall, it has to be sprinkled with water. The water enters the inside face of the wall. The flat owner will thus experience some dampness inside and also paint may get peeled off. Again, curing water can enter inside the flats from open windows. Hence flat owners must keep windows closed, and they have to reconcile to the fact that there will be some damage to the interiors during repairs. It is better to remove all exterior fittings and ACs, etc, or cover them properly before commencement of the work. Cement and paint particles get carried away by the wind and fall on cars, people or children moving about in the compound. All car owners must cover their cars properly, simply moving away cars to other location from the work area may not help. People should avoid moving around in premises and loitering near the scaffolding as pieces of material regularly fall down in the compound. The individual flat owner must not take up his grievance directly with the contractors labourers, but write it in the suggestion book. It will be attended jointly by the contractors representative and the society engineer. It is necessary to remove safety

lines or mixes up with debris of the main contractor. Unfortunately, the main contractor is blamed for all these problems. This affects the work till it is resolved through meetings. At times the managing committee of the society changes in between, perhaps during progress of the work. No matter how the detailed the agreement is prepared, there are some points which lead to misunderstanding between the two parties, making it difficult to achieve the best results. There are occasions when new committee members make use of the contractor to settle differences with the earlier committee members resulting in slowing down the work or grinding it to a halt. This should be avoided by the society. Some members do not understand the scope of the work, that means what is involved in the repair work the methodologies and specifications, and are not aware of the precautions to be taken by them and responsibilities of the contractor, creating problems. There is no end to problems. However, every society must take precautions right at the start to ensure smooth running of the work in their own interest after studying the problems listed above. There are many matters to handle when a huge volume of restoration work is undertaken. The author feels that it is necessary to standardise methodologies and tender documents to bring in uniformity in the restoration work and reduce the burden of the contractor to read tender details of many consultants. A repair board is a good suggestion. It can take up innumerable issues faced by clients (societies) and contractors, and provide a simple solution for smooth completion of the project.

Jayakumar Jivraj Shah

The author is an expert on waterproofing, repairs, durability of RCC buildings, fixing leakage


JANUARY 02, 2012

Multilevel Car Parking Systems

Automated car parking systems have advantages like safety, saving of space, time and fuel
As we are about enter 2012, it would be good to pay attention to one of the most challenging problems confronting modern India -- the growing population of India, the fast rising number cars and finding space to park them in big metro cities such as Mumbai, Pune, Hyderabad, Bengaluru, Chennai, Delhi and Kolkata. Whats more, even the space on roads is falling short for running cars, buses, trucks, tankers, motorcycles, scooters and so on. However, the problem of parking space for vehicles, especially cars, is far more serious. Taking this shortcoming into consideration, builders are now providing ample space for car parking in large residential and commercial complexes. However, some builders and architects believe that India has not yet fully evolved and developed MLCP Multi-Level Car Parking System (MLCP). One way to subdue the difficulty is for the Centre and state governments to float public private partnerships for open parking lots. A leading manufacturer of multi-level car parking systems feels that at this stage parking technology is new to India and will take time for people to absorb and understand its benefits. There are a variety parking systems and potential customers are going through a learning process to find out the best possible for them. In India, the concept of automated parking is still restricted to only large cities. One of the problems in this system, as felt by the industry, is the absence of a regular body for monitoring their quality, lack of skilled labour to assemble them or factors like poor after-sales services and technical snags that limit its market growth. Top players: Klaus India, R. R . Pa r k o n , D e n t a l H y d r a u l i c s , Eros Elevators Pvt Ltd, Precision Automation and Robotics India Ltd. occupies the space of only three cars on the ground and can accommodate up to 40 cars. All the cars can be stored using access cards or password which reduces mischief and theft. Other advantages include a shorter construction time; no costly concrete repairs/maintenance and lower liability insurance. The driving of vehicles at only one level makes it preferable to be used in the automobile industry too. The entire system can be manually operated with individual controls. include saving land area, low noise, easy maintenance and protection of the middle and bottom level from dust, rain and theft.

The Future

With the rising population and the number of cars, the present problem can be curbed through devising

pre-fabricated which are assembled on site. As the system is operated automatically, added expenses of underground parking such as building structure, providing lighting and security are avoided. Low maintenance and operational cost: Operating cost is low since

Types of automated MLCPs

Automated Multilevel Car Parking Systems

Automated car parking systems have become fashionable trendsetters. It is a method of automatically parking and retrieving cars that typically use a system of

Dependent/Stack System: This system allows two passenger cars to be parked one above the other. Its single post offers flexibility and saves space. Along with a platform (curved at the ends to allow the car to roll on/roll off conveniently), there is an operating control pendant that can be located anywhere in the garage, basement and outdoor structure for operation from a safe distance. The system allows very fast parking-in and parking-out time, safety and security of the cars. Not only this, it also reduces air pollution, and needs little maintenance. The two-step stacker Type Parking System (a semi-automatic system) features a pallet that is lifted up once the car is parked and loaded, making additional parking space below the loaded pallet. This is possible in both outdoor and indoor spaces; these electromechanically or hydraulically operated systems are preferably valet parking systems. Horizontal Circulation Type: This type of system operates on the principle of a conveyor and thus used for parking cars in two to four levels in tight basements without any driveways. The cars are driven on to or off steel platforms at one entrance at ground level and parked cars circulate in the basement at different levels. Puzzle Car Parking Systems: Here the cars move vertically and horizontally like a puzzle, till the car required comes to the lower

Chess Parking System

Chess Parking System is considered as a futuristic parking system. It ensures maximum utilisation of the floor space without the need of driveways, and space for movement of mechanisms. This has floor mounted roller bed system which can allow the crisscross movement of the pallet and the car. It has separate lifts which act as entry & exit points. Preferably installed on RCC floors, it can be designed for 800 to 1,000 cars or even more and can be used in longitudinal and square areas. This system is like a mini merrygo-round in which 12 cars can be accommodated in a vertical height of 14 m and area of 30 sq. m. Operating like a merry-go-round, an empty pallet to park a car, or a loaded pallet with a parked car, is brought down to the ground level at the touch of a button; the average time taken after the button being pressed is 2-2.5 minutes. This one allows the cars direction to be easily changed by any angle to drive out as required. The system helps a car turn 360 degree and requires a space of just 5 meters to turn the car. It is available in either stand alone types or built-in types. Cart Type Parking System Preferably used in longitudinal parking areas, this fully automatic system has multiple entries and exits

Rotary Car Parking System

Turn Table System

more intelligent ways. Firstly, we need to ban parking in all central areas of roads and old areas of cities where there is no ample road width. Simultaneously, we have to provide for public parking lots and MLCPs at competitive prices. Tower parking systems is one of the best solutions in the present-day scenario for multi-storey buildings due to their unique feature of increasing the parking space by 17 times. Another advantage of this system is that the towers can be built in buildings, no extra space is required. The towers have user-friendly HMI (Human Machine Interface) systems which guide the user while storing and parking the cars. Since there is no dependency of cars, this solution is becoming more acceptable to customers. Looking towards the future in the immediate context, the automatic car parking systems would help ease

mechanical car parking system requires less energy to run. There is no need for energy-intensive ventilating systems as the cars are not being driven inside the parking lot. Cladding can be specially selected to match the buildings facade. Safety of vehicle: MLCPS provide complete safety to a vehicle as parked cars are not accessible to anyone else. Damages or a dent to the car is avoided while parking through narrow drive ways. Environment-friendly: One of the greatest benefits related to conventional underground or open space parking, is the saving of ground space. Outdoor space saved can be put to good use with gardens and landscaping or additional buildings. It also significantly reduces noise and other pollutants. Benefit to a driver: Car driving now can become a pleasant experience. Mechanical car parking systems

pallets and lifts and signaling devices for retrieval. They have advantages like safety, saving of space, time and fuel (since one does not have to drive around for locating parking space). These can be further categorised into fully automatic or semi-automatic systems. With less land available, parking is a growing concern in the Indian context, but there are various technological options and knowledge base available (automated parking systems, stack parking systems). Among these, the semi-automated car parking systems (with different options of stack parking, puzzle parking, etc) are rapidly catching up in demand. These seem to be easily accepted by Indian consumers since they are easy to install and operate, capital costs are relatively cheaper than fully automatic parking systems, and involve lesser consumption of electrical energy.

level where it is to be driven out. It can be installed in basements, rooftops, under stilts, open grounds, terraces, driveways, etc. The system is designed in the form of a matrix of rows and columns such as 2x2 or 2x3. To enable horizontal and vertical movement of the remaining spots, a certain number of spots are kept vacant. Available in the range of two to six levels, all the cars are independent of each other and the system can be installed in a phased manner.

and has an in-built mechanism called Cart which moves every parking floor. It can be designed with or without pallets and can be designed for 50 to 100 cars or even more.

Stacker Type Parking System

Tower Parking System

A fully automatic system, this involves an automatic storage system and a car elevator which moves vertically with the cars in upward and downward direction and a transfer device (a shuttle) for horizontal movement. The retrieval time is less, cost is reachable to the common man and environment-friendly since it

T h i s fu l l y a u t o ma ti c s ys t em features a typical storage system and has a unique mechanism called Stacker. It moves centrally and has parking slots on either side. It has in-built robotic mechanism that pulls and pushes the car to and from the lift/parking bay. Preferably used in longitudinal parking areas, this can be designed for 100 to 300 cars or even more. This system consists of three spaces -- top, middle and bottom which are united and lifted together. While the middle and bottom spaces are underground in the pit, the top level is in the same line with the ground floor parking. Advantages

traffic congestion. However, future interventions need to be explored to minimise the involvement of human element for loading and unloading during parking process, involved in the semi-automated car parking systems.

Advantages of MLCPs

Pit Lifting Parking System

Optimal utilisation of space: Mechanical car parking system is a method of parking and retrieving cars by using pallets and lifts. It thus removes the need for lengthy driveways and ramps, accommodating maximum cars in minimum space. Constructed on minimum space: MLCPs are flexible enough to solve parking problems. It can be sited above or below the ground or a combination of both and designed to accommodate any number of cars. Lower construction cost: MLCPs a r e c o s t- e f f e c t i v e i n t e r m s o f construction cost. They are delivered

makes parking easier and less stressful as the driver does not have to drive through the entire parking lot looking for a place to park, nor do they have to attend the car when it is parked. Difficulty in parking in a tight corner is also eliminated. Benefit to builder: By using MLCPs, the floor area and the volume of the stilt/garage can be used much more efficiently. It reduces the space needed to park the same number of cars or allow car parking where previously there would have been no room. This in turn means more financial gains by saving precious real estate space.

Prachi Awasthi
The author is a Freelance Analyst


JANUARY 02, 2012

Safety culture on a project

It is better to leave the project safely than to risk being the victim, or perhaps cause of an accident
At Bechtel, we believe that every accident is preventable. This means that our target is always to achieve zero accidents on all our projects. Safety is one of our core values that hold true across our business, wherever we are operating around the world. Rather than a priority, we see safety as a value; priorities change whereas values tend to stay with us and grow stronger as we move through life. There is a simple reason why safety is so important to us: lives depend upon it. We also believe that it is important to share lessons learned across the construction industry. We all share a responsibility to help drive standards up for the sake of everyone who works in the sector. While we do not claim to have all the answers, we would therefore like to share here some perspectives of our experience and offer some safety tips based on what we have learned.

how to identify safety hazards for themselves. Bechtel operates around the world, working in many different cultures. We do not find culture to be a barrier in itself to the adoption of a safe working environment. In fact we value cultural differences and often learn new ways of communicating about safety as a result. As an example, we have worked with Imams across some of our projects to communicate safety messages to the workforce in ways that resonate more strongly by making a connection with peoples beliefs. We believe that people want to work safely and go home each night whichever country we operate in. Once we engage with people and understand each others interpretation of safety, we find that there is little if any resistance to introducing a safety culture on the project.

Safety as a value


follow the rules may risk being asked to leave the project. Whilst this may be seem harsh, it is a better result to leave the project safely than to risk being the victim, or perhaps cause of an accident.

Personal obligation

Processes and protocols

Processes have a key role to play in establishing a safety culture on a project. These are the basic tools which help to ensure that employees understand the safety rules that need to be followed. On Bechtel projects, all new employees are required to participate in safety induction training before they start work. Employees are asked to respect the rules and procedures and the consequences of not doing so are also made clear. Those people who do not wish to

But processes and protocols do not of themselves create a safe working environment. It is critical to create a culture whereby employees understand what behaviours are needed to be safe. To give an example, we ask employees to adopt a sense of personal responsibility towards themselves and their co-workers. What does this mean? It does not mean that we wish to abdicate our responsibility towards employees. What it does mean is that we ask people to set an example and adopt high safety standards for themselves. But it also means never walking past a potential safety hazard.

We encourage people to challenge their co-workers if they believe that they are adopting an unsafe practice. And we ask that those who have been challenged thank their coworker for looking after them. We have worked hard to create a culture whereby people will welcome being challenged, as they recognise the motivation comes from concern for their safety. This sense of personal and collective responsibility cannot be legislated, but comes as a result of a positive and transparent safety culture.

Safety training initiatives

Aside from policies and procedures, and creating a safety culture, there is a whole range of training initiatives and tools that can be employed. The key to teaching safety is leadership style. The importance of engaging with your co-workers

and helping them to understand why safety is important cannot be underestimated. For example, a good starting point may be to discuss the consequences of not acting safely, both from a professional and personal perspective. A worker with a family and dependents, who may be the sole provider for his or her family, will understand the consequences of an incident at work can have on their family. At many of our projects including the New Doha International Airport, we have developed a Hazard Training School. The school offers workers the opportunity to experience staged safety situations in a safe environment whereby they can witness a hazard in a situation similar to that in which they may experience on the project itself. By bringing workers into a real-life controlled situation, this provides invaluable experience in learning

Be open to new ideas. We can all learn from each other. It is important to align your objectives and goals with that of your customer. But the most important aspect is behaviour. If you can introduce safety as a value in your workers, then lasting change can occur. Workers need to hold safety as a value which cannot be ignored or compromised. Be a coach and use my mantra of more ask and less tell. All too often you see people being told only put your glasses on. Dont miss that vital opportunity to be a coach and have a conversation about why it is important to wear those glasses. People will remember longer when they understand why and particularly so if it is a positive conversation, which is more effective than just being shouted at. And finally, cultural challenges should be embraced as they afford us the opportunity to learn as well as develop and teach each other important skills and values.

Stephen Connell
The author is a Environmental Safety & Health Manager, Bechtel Ltd.

Emerging trends in construction technology

Let me first tell you about present construction scenario. In the construction industry, a lot of problems are being faced and one of the prominent problems is shortage of skilled labour force and very stringent time limit to finish a project. We find that conventional methods adopted for construction are now slowly getting obsolete and projects demand something different from the existing construction practices. So far we have built such structures with conventional materials like cement, re-bars, concrete blocks and cement plaster. This method of construction is labour-oriented and time- consuming. Also, quality of raw materials is not consistent and requires good storage spaces. Hence, in the market today dry construction technology is getting attention of various construction groups. Primarily there are many options of this type of construction system and the two important technologies coming up in market are as given below: 1. Engineered wood construction. 2. Dry partition walls with gypsum sheets and GI sections. 3. Readymade mortar. Now let us explore these technologies one at a time. Dry construction concept of wooden structure is very popular in USA. Hiranandani Group started the ball rolling by first introducing this for construction of one of our proposed buildings, namely a club house at Powai- Hiranandani Business park. The Hiranandani Engineering team started working on this innovative concept with quite a few apprehensions in mind. We finished the sub-structure up to plinth level and handed over the site to the vendor who brought work force team from abroad. Almost all components of wood structure were pre-fabricated or readymade and brought to the site. The same were fixed in position and in just under a weeks time, we found that a huge structure suddenly appeared in position (with the help of only a few skilled carpenters) which made everybody start wondering. Unlike the conventional site, this site is absolutely dry and no dirty debris was found scattered, neither any water was found spread all round. As such, this is the most important learning from this type of construction. For this kind of dry construction, we have to use special type of waterproofing for toilets/terrace and weatherproofing treatment techniques for exterior walls. The climatic conditions of Mumbai like rain and hot weather will certainly test this club house structure in time to come. This project is a symbol of our commitment to explore and implement innovative ideas which add value and beauty, and give a sense of doing something outstanding for our valued customers. Now lets talk about dry partition walls using gypsum sheets and GI sections. This is not a new technology, but nowadays getting popularity due to its time-saving construction techniques. Instead of using bricks, concrete blocks or cellular lightweight blocks, this technology uses GI studs and gypsum sheets/fibre cement boards to construct walls. This technology is suitable for internal walls presently. Also, infill options are available to make the inside hollow portion solid. For making temporary structures like marketing office and show flats this technology is widely used nowadays. Now these type of systems do reduce dead weight on structure and requires few skilled and trained workers for erection. But we have again constraint of sufficient agencies or vendors, including skilled technicians who can carry out such type of construction and being still in infant stage requires a lot of R&D work on this. Readymade mortar is now the need of the hour, especially in Mumbai where river sand supply has almost stopped, and we have only crushed sand available for block masonary and plaster which has a problem of cracks and hollow sound. Thus giving quality-related issues. Hence it is time that we encourage readymade mortar industry. The advantage of ready made mortar is its consistency and only water is to be added in dry mix which helps to reduce inventory on sites. There are few vendors who can supply ready-to-use mortar which does not require curing as they are not cement based. But presently these types of mortar are primarily designed for cellular lightweight blocks and we need to suitably modify the same to suit hollow/solid concrete blocks. Manufacturers should come out to meet these requirements and I am sure that in near future, construction industry will have option of ready mix mortar like we have ready mix concrete. Before I conclude, in summary, I can say that construction Industry is now looking for innovative ideas which can reduce time of construction significantly along with reduction in demand of skilled labour force by exploring labour-friendly materials and method study. Its time that we think out of box and encourage ideas, practices, materials and method study which takes care of quality, economy, speed and safety of construction.

Cyrus K Pithawalla
The author is a Director, Hiranandani Group


JANUARY 02, 2012

Bauxite residue as raw meal in cement

Projections are that by 2030 India will have cement production between 415 and 515 mt annually, whereas by 2050 the production will range from 615 to 730 mt annually
The utilisation of Bayers process bauxite residue, BR, aka red mud, takes place in a very small fraction worldwide. A success story in terms of industrial implementation is utilisation of BR as a raw material in cement production. The use of BR as a Pozzolanic material has also been reported, with promising results in laboratory scale. This work aims to present these cases by providing a critical overview of the ongoing research, focusing in particular on India. To facilitate transition from laboratory to industrial scale, a strengths, weaknesses, opportunities, threats (Swot) analysis is also provided for the case of BR addition in the raw meal. The approach taken follows both BR and cement producers, presenting the implications from the use of BR in cement production, market considerations, etc. It is demonstrated that tangible results can be achieved with present-day technology. Fig. 1. Projections are that by 2030 India will have cement production between 415 and 515 mt annually, whereas by 2050 the production will range from 615 to 730 mt annually [2]. In other words, by 2050 India is expected to contribute approximately 17 per cent of world production, almost on a par with China, having a three-fold (at least) increase in production rate compared to nowadays. Next to cement, bauxite residue, aka red mud, BR, is also increasing. BR is the main waste generated during the production of alumina by means of the Bayer cycle. It is produced during the digestion of bauxites, in a sodium hydroxide solution at elevated temperature and pressure, and leaves the cycle as a highly alkaline and of high ionic strength slurry. The global inventory of BR stored on land is currently estimated to be over 2.7 billion tons, with an annual growth rate of over 120 million tons [3]. India produced approximately 3.7 mt of alumina in 2009 [1] and approximately 4.5 mt of BR [4]. More recent numbers estimate the alumina production at 4.3 mt/y and BR production at 5.7 mt/y [5]. Like in cement, a major growth in the sector is expected in India, reaching an annual BR production well above 10 mt. Still, despite the high volumes produced, only a small fraction is being used in

production, as analysis later on will demonstrate. Still though, a number of factors need to be addressed.

Characterisation of bauxite residue

The solid portion of BR consists of the insoluble compounds present in bauxites along with compounds

large variation of TiO2, from 3.30 wt per cent for Nalcos BR to 28.00 wt per cent for Al. Corp, compensated mainly by differences in Fe2O3 level. This variation reflects differences between East Coast Bauxite and Central India Bauxite [4]. Data for Indian BR can be also found in other publications as well, such as [9]. BR is deposited as a slurry or after dewatering (65 to 70 wt per cent solids) in Indian plants. Relevant information can be retrieved elsewhere [9]. Obviously, a dewatering step is highly preferable as permits more efficient handling of BR in cement production, reduces transportation cost and minimises the water soluble Na2O content.

Bauxite residue, cement making

(I) (II) (III) (IV) (V)

Eastern Ghats Central India West Coast Gujarat Jammu & Kashmir

Figure 2. Bauxite deposits (I to IV) and alumina plants of India. Adapted from [8].


Todays annual global cement production has reached 2.8 billion tons, and is expected to increase to approximately 4 billion tons. Especially for India, recent figures (2009, [1]), suggest approximately 200 mt of cement production annually. Major growth is foreseen in China and India, as well as in regions like the Middle East and North Africa, see [2] and

high demand scenario low demand scenario

Canada and United States European Union 25 Other OECD Europe OECD Pacific

Production (Mt cement)



China India


Economies in transition Other developing Asia

few countries and specific industrial processes, the rest being stored. Such a process is cement production, with further possibilities not yet explored. These massive production rates definitely pose a challenge for the cement and alumina industry in terms of sustainable operation. An industrial symbiosis scheme (already practised in some cases as analysis will later on demonstrate) can positively contribute. If one considers that approximately 4 billion tons of raw materials are required for the annual 2.8 billion tons of cement production, it results that 120 mt of BR a year is merely 3 wt per cent. Coincidentally, 3 wt per cent of BR is a realistic figure to be added in the raw meal for cement clinker

introduced or formed during the Bayer process and a small percentage of not recovered alumina (oxy) hydroxides. Obviously, the characteristics of BR are determined by both the parent mineral (bauxite) and the processing conditions in the Bayer cycle. Post-processing, that is, washing, neutralisation and dewatering are also very important operations especially if one considers further use of BR. The chemical and mineralogical composition of BR can be very diverse. A thorough presentation can be retrieved elsewhere [6]. Indicative data for India are presented in Table 1 [7]. The plants mentioned in Table 1 are shown in Figure 2, along with the main bauxite deposits in India [8]. It is very interesting to note the

In principle, there are two methods of incorporating BR in cement production: either in the raw meal or in a later stage, as a hydraulic or Pozzolanic material. In the raw meal, BR is typically used as a source of Fe and Al and the final product may be Ordinary Portland Cement (OPC) or an alternative cement type. In hydraulic or Pozzolanic application, BR itself is a reactive component. In more detail, in the present context, a hydraulic material is defined as a substance that will react with water towards reaction products that can lead to setting and hardening of the cement paste. The chemical reactions taking place are generally more complex than simple conversions of anhydrous compounds into the corresponding hydrates [10], the most important hydration product being an amorphous or poorly crystalline calcium silicate hydrate, C-S-H. A pozzolanic material, typically rich in (alumino) silicates, does not react with water alone; however, it will react with calcium hydroxide (hydrated lime) and water to produce calcium (alumino) silicate hydrates, such as C-S-H, C-A-H (e.g. hydrogarnet) or C-A-S-H (e.g. stratlingite) or mono/ hemi carboaluminate hydrates, if carbonates are present. Certain implications arise from both choices, the first path currently being the only one known to have industrial implementation.
(continued in next issue)


Latin America Africa and Middle East

Y. Pontikes
Centre for High Temperature Processes and Sustainable Materials Management, Department of Metallurgy & Materials Engineering, Katholieke Universiteit Leuven, Kasteelpark Arenberg 44, B-3001, Leuven, Belgium

0 2006

high low

high low


Figure 1. Estimation of cement production rates per geographical regions and countries. Adapted from [2].

Table 1 Chemical analysis of various Indian BR; major oxides only, in wt per cent. Adapted from [7].
Al. Corp. MALCO HINDALCO BALCO NALCO Fe2O3 20.26 47.17 35.46 33.80 52.39 Al2O3 19.60 27.00 23.00 15.58 14.73 TiO2 28.00 5.12 17.20 22.50 3.30 SiO2 6.74 5.70 5.00 6.84 8.44 Na2O 8.09 3.64 4.58 5.20 4.00

G.N. Angelopoulos
Laboratory of Materials and Metallurgy, Dept. of Chemical Engineering, University of Patras, 26500 Rio, Greece

[1] United States Geological Survey Mineral Resources Program, http://minerals. [2] International Energy Agency, Cement roadmap targets, papers/2009/Cement_Roadmap_targets_viewing.pdf, in, 2009. [3] C. Klauber, M. Grfe, G. Power, Review of Bauxite Residue Re-use Options, in: CSIRO Minerals, Waterford, WA., 2009, pp. 1-77. [4] M.J. Chaddha, Industry Perspectives-an overview, Asia Pacific Partnership of clean development and climate, in: AluminiumTF/Bauxite_Workshop_Industry_Perspectives_Overview.pdf, 2009. [5] R. Den Hond, Alcor, Personal communication, 2011. [6] M. Grfe, G. Power, C. Klauber, Review of Bauxite Residue Alkalinity and Associated Chemistry, in: CSIRO Document DMR-3610, Project ATF-06-3: Management of Bauxite Residues, Department of Resources, Energy and Tourism (DRET), 2009. [7] R.K. Paramguru, P.C. Rath, V.N. Misra, Trends in red mud utilization-A review, Miner. Process. Extr. M., 26 (2005) 1-29. [8] A.K. Nandi, A.M. Kulkarni, Prospects of bauxite export from West Coast of India, in: 8th International Congress of ICSOBA: Energy and environment in aluminium industry, ICSOBA, Milan, Italy, 1997, pp. 528-540. [9] A. Agrawal, K.K. Sahu, B.D. Pandey, Solid waste management in non-ferrous industries in India, Resour. Conserv. Recy., 42 (2004) 99-120. [10] H.F.W. Taylor, Cement Chemistry, 2nd ed., 1997. The cement nomenclature is used in the text, i.e. C = CaO, S = SiO2, = SO3, A = Al2O3, F = Fe2O3, H = H2O.


JANUARY 02, 2012

Energy-saving upvc windows & doors

They reduce energy bill of air-conditioned space by about 20-30 per cent, and also provide noise attenuation
The window of applications in the plastic processing industry is very wide. One of the attractive projects that offer high value addition and returns is the upvc window/door profile project. Windows are no longer an object to fill openings in the building envelope. Todays windows are expected to perform various functions such as letting in light, keeping out heat or cold (as the case may be), noise attenuation, aesthetically attractive, lower maintenance and use of energysaving/efficient materials/processes in place of scarce, energy-efficient conventional materials. The upvc windows/door profiles are made from polyvinyl chloride resin, one of the most extensively used thermoplastics finding enduses in diverse sectors such as infrastructure, agriculture, etc. The profiles are extensively used abroad, but are at an early stage in India. Much needs to be done in marketing of these products by showcasing their advantages to builders, architects and the public, which includes the major advantage of energy-saving, that is, reduction in air-conditioning bills up to 20-30 per cent as well as saving of wood (and in turn forests) and energy-intensive materials like aluminium. being timber (in rural and upperend constructions), MS (in low-cost housing) and aluminium (in urban constructions). Out of approximately Rs 6,000 crore market for windows, about Rs 300 crore exists for upvc windows. These have gained popularity in all major countries of the world. PVC is available in abundance and its manufacture is also energyefficient. market penetration of 3 per cent, the estimated potential for PVC doors & windows would be 3,00,000 tpa. The supply of upvc windows and doors is 40,000 tpa. W ith so much happening on the building construction front, this is the most opportune time for entrepreneurs to get into upvc window/door profile extrusion & fabrication. In fact, considering the above as well as the size of the window/door market, there is space for four to five large companies to come into the sector. Moreover, this project will be synergistic for those entrepreneurs who are already in building/construction product business. Upvc window systems come with excellent hardware, various colours and finish, thus enhancing the beauty of our dwellings. These windows always look new and do not need any painting. The brighter the windows,

Global markets

Opportunities in plastic processing Industry

The Indian market size for windows & doors is approximately Rs 12,000 crore (Source: Long, Kenneth 2005. World Windows and Doors Study 1977. The Freedonia Group) with the predominant material for construction

Globally, this product has been well-accepted and a wide usage of these products is due to better aesthetics and excellent insulation characteristics. Needless to say, this product has achieved a higher and faster market penetration globally. Following the trend in the global market, India has started achieving more in this direction, but much needs to be done to replicate the success stories of other countries. Indian demand: The demand driver for polyvinyl chloride windows & doors is infrastructure and increasing population (India is the second most populous country after China), more prosperity, nuclear families, and migration from rural to urban areas. Urbanisation at fast pace: 300 million Indians in urban areas. India has the second largest urban population in the world. 30 per cent of total population. Contributes 60 per cent of GDP . Growth 31 per cent over the past decade Investment in infrastructure: The Planning Commission has estimated that the need for investment in infrastructure -- defined to broadly include road, rail, air and water transport, electric power, telecommunications, water supply and irrigation -- will be Rs 1450,000 crore or $320 billion during the 11th Plan period. Assuming the Indian population of 100 crore and an average of 5 persons per dwelling unit and an average weight of 44 kg of PVC doors & windows per dwelling unit with a

the brighter the homes. Furthermore, they provide noise attenuation and reduce energy bill of air-conditioned space by about 20-30 per cent.

Faster market penetration

The consumption of polyvinyl chloride doors & windows in India in 2007-08 was 40 kta. The entrepreneurs in the country need to look at option 1 -- extruding the upvc window/ door profiles; option 2 -- fabrication of these profiles and option 3 --

combination of both options 1 & 2. These entrepreneurs who possess a very good business acumen would be able to achieve a faster market penetration through dealers and agents. Faster market penetration with more entrepreneurs and high volume business would help the business grow. Entrepreneurs today are keen on investing in projects which have a very high market potential. Upvc windows and doors is a product which has a very high potential in the country with low competition. Competition is low and both types of processors exist -- one which manufactures highquality products and the other makes products for low-end market. Quality products become one of the very important elements in this business for which good tools are needed. Quality products would help entrepreneurs in fetching higher net profitability due to the higher selling price of the final product. Another important factor is that of a high volume business, hence extruders of high capacities selected would lead to a more viable business. Business means money and this project with quality products, coupled with high volume business, can make entrepreneurs earn more money. This in turn would make these entrepreneurs expand their business, leading to a higher net profit. High net profit also depends on the distribution pattern with inclusion of agents who could be involved in marketing these products. Marketing with a very good distribution network, be it commision agents, ones own marketing team or dealers, helps the processors in achieving higher net profit -- a key focus of any business. Wellestablished processors of plastic products in infrastructure can look at this product under their plan for diversification. For example, the existing processors of rotational moulded tanks, aluminium fabricators, roofing can look at PVC doors & window profiles which would help the processors to market this product which has a similar distribution pattern.

Building up of end-user contacts such as builders/architects makes it possible for end-users to fetch cost economic products which would be well accepted by the common man and would lead to benefits for builders/architects as well. Versatility of an extruder, which can produce more than a single product, would lead to a higher capacity utilisation, making it possible for entrepreneurs to fetch a higher net profit with more new investments. Research on acceptability of new products amongst builders as well as the common man will help entrepreneurs in achieving a higher market penetration of the plastic products, resulting in more business. Also, worldwide acceptance of a plastic product would help Indian entrepreneurs to attract more foreign investment in the country. One cannot doubt that India is on a par with other countries in technological advancement, modernisation, dexterity of manpower, business acumen as well as marketing skills.

Versatility of PVC doors & windows

Polyvinyl chloride, due to its versatility, has helped entrepreneurs to achieve more net profit by revolving around higher volumes of business in all major end-uses such as infrastructure, agriculture, potable water -- both in urban and rural areas. The horizon of the plastic processing industry is broad; what needs to be done is to look at products which have a high potential in the country; for example, PVC doors & windows. New products, new applications, new end-uses that contribute to the growth of the plastic processing industry need to be introduced.

Poorvi C. Desai
Senior ManagerBusiness DevelopmentPolymers, Reliance Industries Ltd.

Real estate

JANUARY 02, 2012

Commercial property to re-emerge as favoured asset class

India is still well placed in terms of risk v/s reward situation
Contracting industrial output, rising inflation rates and slowing GDP growth Indias growth story currently seems threatened due to weak macro-economic fundamentals and the free-fall of the Indian rupee has added another dimension to Indias woes. Industrial output contracted by 5.1 per cent y-on-y last October, and the governments forecast for 2011 GDP growth has also been scaled down to 7.25-7.75 per cent from 8.0 per cent a while earlier and 9.0 per cent before that. Meanwhile, inflation soars high at approximately 10 per cent. The proxy for investment rate, the Gross Fixed Capital Formation (GFCF), has exhibited a severe decline in growth. India today finds itself precariously balancing over a stagflation rut. Where do property contractors stand in the midst of all this mayhem? Property contractors have had to face challenges such as escalating material costs and transportation charges due to rising crude prices, rising costs of imported materials due to the depreciating rupee, as well as fewer project sanctions and diminishing source of finance from banks and other non-banking financial institutions. The contraction in industrial output, coupled with a higher interest rate regime, has also made the cost of borrowing steeper. The question on everyones mind now seems to be where is India heading from here? A skeptic might say that the current situation may still worsen in the coming quarters. However, let us take a look at the new realities that exist today, because India is currently undergoing some significant changes. At the offset, it must be borne in mind that these different macroeconomic fundamentals are closely linked, not only with each other but also with those forces that shape global commerce. Where India is concerned, we see that initially global investors were pouring capital into nascent markets on the basis of the theory of decoupling, and the idea that these emerging economies are capable of withstanding weaknesses in developed countries. This theory has not proved to be wholly accurate. It has also demonstrated that these nascent economies sometimes take a bigger hit because their basic underlying fundamentals are not as resilient. On that note, we see that it is not just the INR but currencies worldwide have been affected as investors fret over the health of European countries. That being said, the Indian government has undertaken a number of policy initiatives to set right the current scheme of things. The RBI has put into practice various measures to bolster the rupee such as dropping the net amount of U.S. dollar-versus-rupee trade that sanctioned foreign-exchange dealers can hold. Another measure is to limit the amount of currency hedging by importers, especially those who typically buy dollars. Within the purview of the Indian real estate industry, new projects, in all probability, would be stalled for a while as most contractors would turn their attention towards the successful completion of existing projects. Added to this, Indian banks are now approaching project financing more cautiously than ever before. Even if the lender is willing, the terms are now onerous.

Supporting documents are now called for in advance as banks try to ensure that the money goes into the right hands. There is a stringent verification process in place including cross verification of documents with local authorities. In the midst of wavering macro-economic fundamentals, the risk associated with the property market has also gone up and, in general, cash has emerged as the definite preference. The volatility and uncertainty that pervades the investment climate has made investors seek a safe haven in cash. However, commercial property will re-emerge as a favoured asset class once India weathers this quasidownturn. Lastly, India is still well placed in terms of risk v/s reward situation compared with the mature economies and other emerging economies. Furthermore, in spite of its fluctuating fundamentals, Indias status quo would seem attractive to foreign investors on the hunt for bargains. The author is the Senior Analyst, Research & Real Estate Intelligence Service for Jones Lang LaSalle in India, Kolkata

Ankita Satnaliwala

2012 outlook for retail

Another 15-17 million sq. ft. of retail space is expected to get operational by end-2012
The year 2011 was a winning year for retail real estate with respect to its growth in terms of demand and supply of new retail space across cities. Retail space saw an increase of about 14 million sq. ft, led by NCRDelhi which has added 4.0 million sq. ft. followed by Mumbai which has seen a completion of about 3.5 million sq. ft. This happened after widespread distress in the sector during 2009 and 2010. High absorption of close to 10 million sq. ft. of retail space was forecast for 2011, out of which 7.1 million sq. ft. were already absorbed by 3Q11 and 1.1 million sq. ft. is pre-committed in malls were scheduled to become operational during 4Q11. Retailers in cities like Hyderabad, Chennai and Bengaluru continued to actively lease at high streets due to the unavailability of new upcoming operational malls and low vacancy in operational ones. Pan-India vacancy was recorded at 21.4 per cent in 3Q11 falling 60 bps from 22.0 per cent in 2Q11. Several luxury international brands such as Zara, Vero Moda, Mango and others continued to expand their footprints in the suburban districts of Tier-1 cities of Mumbai and Delhi. For example, Zara opened two stores in Inifiniti mall, Malad and Market City, Kurla, during 2011 while KidZania, an international fun and entertainment brand, made its first entry in the country with its flagship store at R-City, Ghatkopar. Besides, various brands from Future Group, Reliance and TataTrent expanded significantly in 2011. Future Group launched a premium food chain called Food Hall which opened its first store in High Street Phoenix at Lower Parel, Prime South. Food Hall, which brought the finest food items of international and domestic categories under one roof, leased 13,000 sq. ft. in the mall. Although a demand revival was seen in the countrys retail sector backed by strong absorption in past two-three quarters, retailers are keen on taking space in bettermanaged malls in strategic locations, continuing the polarisation of demand in several cities. Going forward, this polarisation is expected to remain, resulting in structural vacancies which will raise the natural vacancy rate of the markets in the medium term. Another 15-17 million sq. ft. of retail space is expected to get operational by end-2012. The major contributor is likely to be Delhi, followed by Mumbai. Other cities such as Bengaluru, Chennai and Pune are likely to add increased retail spaces in coming years. The 100 per cent FDI in multi-brand retail being permitted for multi-brand retailing remains a high possibility in 2012. However, due to the associated beliefs of negative effects to unorganised retail, it will be hard to have the proposition accepted unanimously, and we expect certain conditions being imposed for the same. A total 146 malls opened in seven cities of Mumbai, Delhi, Bengaluru, Chennai, Pune, Hyderabad and Kolkata. If 100 per cent FDI in multibrand retail is allowed, the sector might see a significant growth in supply of quality retail space. Besides, the sector is expecting to grow steadily with the increasing demographic and growing consumerism in the country.

PE stakes in real estate

PE investments in real estate have penetrated deep into the industry
Over the past decade, the real estate industry in India has grown and transformed more than it ever has. Among other factors, a wider participation of institutional private equity (PE) investors in the capitalintensive business beyond the traditional lenders has played a critical role in this change. PE investments in real estate have penetrated deep into the industry, with both domestic and foreign funds the fund managers in the next round of fund raising and also bring the spotlight on investment grade developers. It is an opportune moment to reflect on the experience of various stakeholders in the real estate private equity industry to try and identify the track record so far and possibly the direction this sector is headed in. The report Reaping the Returns: Decoding Private Equity Real Estate

Ashutosh Limaye

Head Research & Real Estate Intelligence Services, Jones Lang LaSalle India

fueling the rapid growth of real estate construction in cities. The opening up of the real estate (RE) sector for Foreign Direct Investment (FDI) in 2005 resulted in transformation of the investment sentiment in the country. Multiple investment transactions by both domestic and foreign funds happened in the 2005-2008 period. With most of the PE funds structured with a fund life of five to seven years, coinciding with a typical project lifecycle, the industry is in a phase that needs monetisation of the investments. The first round of fund-raising after 2005 took place on the basis of Indias macro-economic growth story in a world operating differently from before the global financial crisis. Many of the blue-chip global real estate investors then have shut offices now and many smaller, homegrown investors have become key investors in the market. The ability to successfully recover invested capital and returns will differentiate

Exits in India aims to gain and share a perspective on a PE funds exit proposition. The aim is to understand the PE involvement in the Indian realty space. This thought piece touches upon the Who, Where, When, Why and How of the investment and exit strategies of the PE funds as empirically observed over the past six years. As advisors to domestic, foreign and listed private equity funds, LPs, lenders and developers, and having successfully completed multiple private equity exits, Jones Lang LaSalle Capital Markets have tried to incorporate experiences and learning of the various stakeholders in the industry in this report.

Shobhit Agarwal

Joint Managing Director Capital Markets, Jones Lang LaSalle India

in person

JANUARY 02, 2012

Weigh On Board -- the best way to weigh!

We would like to know about the genesis of Weighload Technologies Pvt Ltd, and your concept. Weighload Technologies Pvt Ltd started in the year 2004. We were one of the first companies in India to introduce the Weigh as you move concept. Internationally many companies use On-Board weighing to make their operations more efficient and cost-effective. We at Weighload really believe that the same concept can greatly benefit a growing country like India. Since this is a new concept, it has taken some time for people to realise its benefits. But customers who have used our products really appreciate the concept. We have over 350 systems working in India now and the growth looks really promising. What are the products offered by the company? How useful are they for the construction industry? We i g h l o a d i s p r i m a r i l y i n t o We i g h i n g S y s t e m s a n d S a f e t y Systems. We have safety camera systems for heavy equipment which we source from Orlaco B.V in the Netherlands. These cameras are world-class and comply with the ISO 5006 standards. With an increasing importance being given to safety in the construction industry, this product is really useful and important. Our other ranges of products are weighing-related products. We have On-Board Weighing systems for Wheel Loaders, Excavators and Conveyor Belts. In a lot of places in India, new regulations have come up regarding the amount of material (weight) the construction equipment and vehicles are required to carry on roads.

Also, the construction companies are becoming more cautious about avoiding overloading of their equipment to reduce maintenance costs and avoiding under-loading the equipment to avoid underutilisation. This is where our products can really help them. Would you like to elaborate on the Weigh as you move concept? The concept of weighbridge is very popular in India. The vehicle after loading has to go to the weighbridge to get weighed. If it is found to be overloaded or under-loaded it is sent back to the loading point for corrections. This wastes a lot of time and is expensive for companies. If they avoid the correction, it could lead to equipment damage due to overloading or equipment underutilisation due to under-loading or even paying penalties to RTO for running overloaded vehicles on highways and roads. The Weigh as you move concept eliminates this problem. The weighing system is directly put on the loading equipment which is being used to

Harish Ghai, Managing Director, Weighload Technologies

Pvt Ltd /Excel Combine, shares with A. Mohankumar the companys concept, and the pitfalls for overloaded or under-loaded vehicles

equipment weighing systems and SEG (Sweden) for Conveyor Belt Scales. What plans does the company have for the future? We believe that in India the best product has to come with the right technology and at the right price. We are working hard with our principals to develop India-specific products. We are also working hard to ensure that the customer is extremely satisfied with our service because a great product without great service support will not benefit the customer. The Right Product, the Right Price and the Excellent Support are what we are focusing on. Some of the milestones reached and the awards received by Weighload Technologies Pvt Ltd. One of the products PKV Pro Wheel Loader scales was approved by the Weights and Measures Department in India. This is really an important achievement for us as this proves the quality of our products and its acceptance by the Indian authorities.

load the material. The weighing happens dynamically while the material is being handled without any stoppage of work. This makes sure that you are loading the right amount of material in the first go itself. Our system also collects real time data which can be used to monitor and improve the processes and operations of our customers. How are the data collected, transferred, tracked and navigated? How useful is this for the enduser? There are various ways of data collection from our systems, depending on customer requirements. Data can be transferred from the

system using USB Drives, SD Cards and also via the Internet using mobile GPRS. Once the data is collected, it can be used to help improve the efficiency of the operations. Have you had any foreign tie-ups and technical collaborations? We at Weighload believe in bringing the best and world-class technologies from around the globe to our customers. We do a lot of research and find the best products in the international markets before sourcing them for India. We have tie-ups with well reputed companies like Orlaco B.V (Netherlands) for safety camera solutions, Tamtron O.Y (Finland) for

Sany launches excavator series

Sany Group, a leading global major in the construction machinery industry, officially launched their excavator series, SY75, SY135, SY215 and SY 235, by announcing the dealership of Mumbais Aditya Motors, who are handling the region of Mumbai, Thane, Konkan and Goa. Sany, with their first manufacturing facility in Pune, has a presence in over 150 countries with 30 overseas subsidiaries, and a turnover of $4.5 billion. The new facility underpins Sany Groups commitment to developing its operations in India business. The state-of-the-art manufacturing facility has been set up in Chakan MIDC, Pune, on an area of 3,30,000 sq. meters and has a built-up area of 37,000 sq. meters. The Pune manufacturing facility is the largest outside of China for the Asia Pacific region. The new facility will include a comprehensive manufacturing set-up, product design and customisation centre, sales, renting, service, storage, logistics and full-fledged R&D centre. The India centre will manufacture excavators along with other products like trailermounted concrete pump, truckmounted concrete pump, concrete mixer truck, concrete batching plant and motor grader and cranes. Sany first entered India in 2003 and has since then been involved in supply of construction machinery to large-scale infrastructure projects in India, including Imperial Twin To w e r s , M u m b a i ; A d a n i Po w e r Plant, Mumbai International Airport Expansion, Brahmaputra Rail Bridge Project, Delhi Metro project and Indira Gandhi International Airport project. Between 2004 and 2007, Indias earthmoving and construction equipment industrys revenue has grown at over 40 per cent each year, reaching $2.3 billion in 2007. This figure is expected to reach $12-13 billion in 2015. Sany already enjoys a 25 per cent market share across products. On July 1, 2011, the UK-based Financial Times released its 2011 Global 500 table, in which Sany Heavy Industry is ranked 431st with its $21.584 billion (Rs 1,15,000 crore) market value, and became the Global 500 company. Sany officials present on this launch were Richard Deng, MD, Sany India; Mr. Samson, Sales Director, Sany Excavator Division, India; Mr. Gao, VP (Service), Sany India and Mr. Johnson, GM, Dealership Development of Sany Excavator, India. Till date in Mumbai region, three machines are sold, according to M. Azmat Khan, GM (operations), Aditya Motors, Mumbai. On the occasion customers were also felicitated. One of the customers, Mr. Khot, expressed his satisfaction at the performance of the Sany Excavator 215, and was joined by other customers, too. Currently, Sany Indias network boasts of 12 offices, 6 inventory stores and 7 dealerships. Sany India plans to expand its network to include 15 dealerships. With this growth strategy, the group expects to reach revenues worth $1.5 billion by 2015.

international news

JANUARY 02, 2012


Lafarge Wapco to set-up cement plant

Lafarge Wapco held a ground breaking ceremony for setting up a new 2.5m metric tons cement plant in Nigeria, which was presided over by Nigerian President Goodluck Jonathan. The plant is located in Ogun state and known as Lakatabu or Ewekoro II. W ith the commisionisng of this plant the total output will be increased to 4.5 million tons. The total cost of constructing the plant would be N75 billion (approximately). Addressing the staff of Lafarge Wapco, media personnel and thousands of well-wishers at the plant before the commissioning, President Jonathan congratulated

Cement majors flock to Settat

Settat province in Morocco is fast becoming the cement manufacturing hub of the country as cement majors such as Lafarge, Holcim and Atlas Cement have set up cement manufacturing facilities in the province. In the past Atlas Cement and Lafarge have each built facilities in the Ben Ahmed area while Holcim built facilities in Sidi Hajjaj and Tamdrost. There are more companies eyeing this province as the country embarks on a huge spend in housing and infrastructure. The cement industry has maintained a growth of 7.2 per cent for 2011 and expects to increase the consumption of cement and it is eyeing the neighbouring countries for export.

Terex Bid-Well opens plant in Canton

the company and stated the this plant will generate employment and in the long run would consolidate the government effort in building houses

and infrastructure for the country. Further, he stated the new cement plant would inject N8 billion into the economy annually.

Saudi Yanbu Cement restarts units

Saudi Yanbu Cement Company has restarted three of four production lines almost two months after a fuel shortage forced the firm to halt operations. The required fuel was to be supplied by Saudi Aramco, but due to no agreement between the two companies, Saudi Aramco discontinued the supply. This forced the shutdown of the unit. Saudi Aramco had not responded to our requests for additional fuel needed to commission the plants fifth new production line. This caused the firm to divert fuel from its old units to test the new production line, said the company. The company further informed that halting the old production lines resulted in a loss of around 14.2 million riyals. Saudi Aramco said it continues to supply all the fuel oil contracted by Yanbu Cement and no agreement was concluded in advance to secure additional supplies for the new line, which absolved Aramco from responsibility.

The Terex Corporations Bid-Well concrete paving equipment business has officially opened a new 80,000 sq. ft, state-of-the-art manufacturing facility in Canton. The $5 million facility is located at Canton Industrial Park. Terex Bid-Wells product line includes bridge deck pavers and overlay machines, road and airport pavers, texturing/curing machines, work bridges and specialised pavers and graders for slope and canal paving. The new manufacturing plant is designed for an efficient flow of materials and increased productivity, with 85 per cent of the building made from recycled materials, said Ron DeFeo, Chief Executive Officer, Chairman and CEO, Terex Corporation. Nigeria-based Lafarge Cement Wapco has unveiled a new look pack and new logo for the 50-year-old cement company. It introduced an active looking dark coloured elephant as logo against the former green elephant. The new elephant logo is super-imposed on the green and grey designed popular cement bag and the Supaset brand bag. Supaset brand is special cement for block moulders because when it is used for block moulding, it thickens quickly and gives the moulders the freedom to pack the blocks. The new elephant looks active and energetic with a lively trunk. President Mahmoud Ahmadinejad of Iran has inaugurated a one-millionton capacity cement plant in the central province of Qom. The $130 million plant is funded by Irans Bank Melli and the Foreign Currency Reserve Fund. During the inauguration, Ahmadinejad said, Today our country has become a main exporter of cement. By launching the second phase of Orumieh cement factory, Irans cement production capacity increased by one million tons. HeidelbergCement plans to construct a cement terminal in the Voronezh region, Russia. The company has still not finalised the location or investment for the terminal. The companys spokesperson said that it will depend on market conditions and other factors. It is yet to decide specific design parameters. Cement analysts from the region are of the opinion that the terminal will be constructed on the basis of the Voronezh Mining Administration. Sinoma International has recently signed a contract with Palanca Cimentos for a 5,000 tpd project and supporting EPC contract. The deal is valued at $257,400,000. The project is located near the southeastern Angola port of Lobito. The terms of the contracts ranges from limestone crushing to cement, a complete package shipped 5,000 tpd cement production line and supporting the engineering design, procurement, construction, installation, commissioning etc. As per the contract the project has to be completed in 31.5 months. President Goodluck Jonathan of Nigeria announced his plans to make his country self-sufficient in cement. He said that by the first quarter of 2012 the country will stop import of cement as Lafarge begins production of 2.5 million metric tons of cement per annum at its new Ewekoro plant in Ogun State. With the assurance given at the recent meeting with cement manufacturers, before the end of first quarter of next year, the country will become self-sufficent in local production, as more manufacturers in the country are expected to begin production in their various expansion projects, he said. Lafarge is seeking buyers for its cement operations in South Africa. The company expects $700 million to $800 million. This sell-out will be one of the series of sellouts by Lafarge to reduce its debt. Lafarge had sold more than half of its gypsum business to buyers including Etex Group and divested some cement and ready-mix plants in the US to Cementos Argos SA. Its net debt was 14.3 billion euros at the end of the third quarter, compared with 14.7 billion euros a year earlier. Bruno Lafont, Chairman & CEO, has sold assets to help meet a goal of cutting debt by about 2 billion euros ($2.63 billion) this year. He aims to reduce debt further in 2012 and bolster profit by raising prices, stepping up savings and divesting more assets. The company may find it difficulty in restoring profitability because of rising raw material prices, political turmoil in the Middle East and a construction slump in countries such as the U.S., Spain and Greece. China Tianrui Group Cement has raised $124 million in an initial public offering in Hong Kong. The company, based in Henan province in eastern China, priced roughly 401 million new shares at HK$2.41 each, putting the deal at HK$966.17 million ($124.12 million). China Tianrui is backed by three pre-IPO investors including KKR Asia Fund, J.P . Morgans private equity fund and Wan Qi, owned by the companys non-executive director Tang Ming Chien. The three investors will hold 17 per cent, eight percent and one percent stake, respectively. The controlling shareholder, Chairman Li Liufa, will own about 40 per cent. Ninety-five per cent of the proceeds will be used to repay loans from the International Finance Corporation and the JPM facility on a pro rata basis, according to their respective outstanding principal amounts at $33.2 million and 911.7 million renminbi respectively as of end of October. The rest will be used for general working capital.

Lafarge Wapco unveils new look pack

Iran President opens cement plant

HeidelbergCement to build terminal in Voronez

Sinoma signs contract for Angola plant

Nigeria to be self-sufficient in cement

Lafarge seek buyers for SA business

China Tianrui Group Cement raises $124m in IPO

projects update

JANUARY 02, 2012


Top honours for Bentleys GenerativeComponents, STAAD.Pro

Bentley Systems Incorporated, the leading company dedicated to providing comprehensive software solutions for sustaining infrastructure, announced that its GenerativeComponents and its STAAD.Pro V8i with Advanced Analysis received top honors at the Construction Computing Awards 2011 (also known as The Hammers). The awards ceremony was held in London. GenerativeComponents was named Editors Choice and STAAD. Pro won in the Structural Analysis Product of the Year category. In addition, Bentley was named runnerup in the Construction Computing Superbrand of 2011 category, and its Bentley Navigator V8i was named runner-up in the Collaboration Product of the Year category. The Construction Computing Awards showcase and acknowledge technology, tools, and solutions for the effective design, construction, maintenance, and modification of commercial buildings, residential and social housing, and civil engineering projects of all sizes. The winners are selected by Construction Computing magazines readership, which includes IT professionals in construction, product, project design and service companies, and a panel of influential industry experts that judge the project categories. David Chadwick, Editor, CAD User and Construction Computing, UK, said, Throughout the year, certain products, projects, and organisations stand out as candidates for the Editors Choice award, and this year I selected GenerativeComponents. Bentleys unique parametric design software has inspired architecture professionals to design a wide range of building projects in a way that was once thought unimaginable. One example is the Sir Francis Crick Institute the GBP625 million biomedical research centre designed by HOK and PLP Architecture thats being erected behind the British Library in London. I also congratulate Bentley on winning the Structural Analysis Product of the Year award and being runner-up in two other categories. Its clear that our readers recognise Bentleys contribution to infrastructure technology, and its entire team should be lauded for this well-deserved recognition. Commenting on the awards, Huw Roberts, Bentley global marketing director, said, On behalf of my colleagues at Bentley, I want to say what an honor it is to have GenerativeComponents among the Construction Computing Awards winners for a second straight year. And the additional recognition of STAAD.Pro as Product of the Year makes us doubly proud and more convinced than ever that our strategy of working closely with our users is the key to successful product development. I sincerely thank the readers who voted for our software, and wish to recognize the tremendous service Construction Computing and its talented team provide to construction professionals through highly informative editorial content that helps drive best practices. Bentley is the global leader dedicated to providing architects, engineers, geospatial professionals, constructors, and owner-operators with comprehensive software solutions for sustaining infrastructure. Bentleys mission is to empower its users to leverage information modeling through integrated projects for high-performing intelligent infrastructure. Its solutions encompass the MicroStation platform for infrastructure design and modeling, the ProjectWise platform for infrastructure project team collaboration and work sharing, and the AssetWise platform for infrastructure asset operations all supporting a broad portfolio of interoperable applications and complemented by worldwide professional services.

NHAI to go EPC way for road projects

The state-owned National Highways Authority of India (NHAI) plans to adopt the engineering, pr o cur ement a nd c ons tr uction (EPC) mode of road bidding. The authority has been entrusted with the management of a road network of 70,934 km. J. N. Singh, member finance, NHAI, said that the authority plans to adopt the EPC mode mainly for double-laning projects. NHAI has set a target of 20,000 km in the next three years and plans to award contracts for 6,000-7,000 km every year, said Singh. The Planning Commission had earlier suggested the road ministry to revive the EPC mode of road bidding whereby projects will be awarded outright. NHAI proposes to award contracts for 21,900 km of roads during the next three financial years.

Sin g h wa s s p ea kin g o n th e sidelines of the launch of NHAIs maiden tax-free bond issue of Rs 10,000 crore with a face value of Rs 1,000. These bonds are being offered across three categories -- retail investors, high net worth investors and institutional investors. The proceeds from the issue would be utilised for making frontend payments for roads to be built on EPC contracts, acquisition of land for building of new roads and expressways, Singh said. NHAI has issued the bonds in two series - - Tranche 1 Series 1 and Tranche 1 Series 2 having tenure of 10 years and 15 years respectively. The coupon rate for the Tranche 1 Series 1 and Tranche 1 Series 2 would be 8.20 per cent per annum and 8.30 per cent per annum respectively. The interest is payable annually on October 1st of every year.

Mitsubishi to license shipbuilding technology to L&T

Mitsubishi Heavy Industries Ltd. (MHI), Japan, will sign a technological collaboration agreement with L&T Shipbuilding Ltd (LTSB), the shipbuilding arm of Larsen & Toubro conglomerate. As per the agreement, MHI would provide licensing and technological support for the construction of commercial vessels. MHI has been promoting development of its engineering business while L&T Shipbuilding has been strengthening its shipbuilding business through the introduction of technology. As per the agreement, MHI would provide support for an initial period of three years, training in ship construction and quality control. MHI would also facilitate expansion of L&Ts shipbuilding facilities in the future and also overseas procurement of shipbuilding materials. MHI will impart training to engineers at the companys Nagasaki Shipyard & Machinery Works and the Shimonoseki Shipyard & Machinery Works in Yamaguchi Prefecture. In addition, MHI will depute experts in design, ship construction and quality control from its shipyards to India to impart training.

Punj Lloyd forays into Kenya

Punj Lloyd Group, a leading en g i neeri ng , pro cu rem ent a n d construction (EPC) conglomerate, forays into Kenya for the Rs 285 crore Loruk-Barpelo road project. Punj Lloyd has entered into a joint venture agreement with Intex Construction Limited, a local construction company in Kenya for execution of the project. The project has been awarded by the Kenya Highways Authority. The Loruk-Barpelo road project entails construction of 62 km road and is located at a distance of 300 km north of Nairobi. The project is expected to be completed in 30 months. S. S. Raju, CEO, Infrastructure, Punj Lloyd Ltd, said, Highways segment is going to be the companys core business of growth in ensuing years. Our knowledge coupled with the expertise to deliver complex projects on time will complement Kenyas ambitious plans to spur infrastructure growth and will consolidate the groups highways and road construction portfolio across the globe. Raju further said that the company will continue rational bidding with an aim to create a portfolio of infrastructure development projects in Africa. He said the construction industry in Africa is poised to grow multifold in years to come. This apart, Punj Lloyd has also bagged its maiden SEZ project in Gurgaon.

Srei to issue tax-saving long term infra bonds

Srei Infrastructure Finance Limited (SIFL) has announced a Public Issue of Long Term Infrastructure Bonds with a face value of Rs 1,000 each in the form of Secured Redeemable Non-Convertible Debentures, to be issued in one or more tranches not exceeding Rs 500 crore for the Fiscal 2011-12 (Shelf Limit), having benefits under Section 80CCF of the Income Tax Act, 1961 (issue). Issue date and listing: The first tranche of the bonds (Tranche 1 Bonds) issue (Tranche 1 Issue) opened for subscription on December 31, 2011 and closes on January 31, 2012 or earlier, as may be decided by the Board of the Company. The bonds issued under Prospectus Tranche-I would be for an amount not exceeding Rs 300 crore and are proposed to be listed on the BSE Ltd (BSE). Ratings: The bonds proposed to be issued have been rated CARE AA by Care. The rating of the bonds by Care indicates high degree of safety with regards to timely servicing of financial obligations. Issue structure: The Issue would be in one or more tranches, for an amount not exceeding the Shelf Limit. The amount raised in the subsequent tranches will not exceed the difference between the Shelf Limit and the aggregate amount raised by issue of bonds under the previous tranches. The minimum number of bonds per applicant is 1 bond and in multiples of 1 bond thereafter for resident individuals as well as for Hindu Undivided Family (HUF). An applicant may choose to apply for the Tranche 1 Bonds across the same series or different series. The mode of allotment for these Tranche 1 Bonds would be in dematerialised form; however, the applicant may hold in the bonds in physical or dematerialised form. These bonds are being issued in four series with interest rate of 8.90 per cent per annum for Series 1 and Series 2 and 9.15 per cent per annum for Series 3 and Series 4. The interest under Series 1 and Series 3 will be payable annually and the interest under Series 2 and Series 4 will be payable cumulatively (compounded annually). All series of bonds will have a buyback option at the end of 5 years. The bonds have a maturity period of 10 years and 15 years and will have a lock-in period of 5 years and can be traded thereafter on BSE. The face value per bond is Rs 1,000. 80CCF benefit: The bonds have

been classified as Long Term Infrastructure Bonds as per the terms of Section 80CCF of the Income Tax Act. As notified under Section 80CCF, an amount not exceeding Rs 20,000 per annum, paid or deposited as subscription to Long Term Infrastructure Bonds during the previous year and relevant to the assessment year beginning April 01, 2012, will be deducted in computing the taxable income of a resident individual or HUF. In the event that any applicant applies for bonds exceeding Rs 20,000 per annum, the aforesaid tax benefit will be available to such applicant only to the extent of Rs 20,000 per annum. The funds raised through the issue of the Tranche 1 Bonds will be utilised towards Infrastructure Lending as defined by the Reserve Bank of India (the RBI) in the regulations issued by it from time to time, after meeting the expenditures of, and related to the Tranche 1 Issue. The lead managers to the Tranche 1 Issue are ICICI Securities Ltd, Karvy Investor Services Ltd, RR Investors Capital Services Pvt Ltd and Srei Capital Markets Ltd (a whollyowned subsidiary of the company to be engaged only in marketing of the Tranche 1 Issue). The co-lead managers to the Issue are SMC Capitals Ltd and Bajaj Capital Ltd whilst Axis Trustee Services Ltd is the Debenture Trustee to the Tranche 1 Issue.

MMRDA proposes Rs 1500-crore road network in 2012

The Mumbai Metropolitan Region Development Authority (MMRDA) has proposed 26-km road network worth Rs 1,512 crore in 2012. The network includes three flyovers, one rail over bridge, one elevated road and the Eastern freeway. This is a part of the Mumbai Urban Infrastructure Project (MUIP) to improve road connectivity and also provide eastwest connectivity. MMRDA project director, Dilip Kawathkar, said that the network is being developed keeping in view the future demand of vehicular movement in the Mumbai Metropolitan Region (MMR). The project has been funded under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) with 35 per cent and 15 per cent of the project cost contributed by the central and state government respectively. I n c i d e n t a l l y, M M R D A i s t h e first agency to erect this type of construction in railway property, said Kawathkar.


JANUARY 02, 2012


HP at loggerheads with cement producers

The Himachal Pradesh government has decided to get tough with cement manufacturers for not lowering the prices of cement. After a futile meeting with manufacturers, the government has decided that if prices are not brought down it will withdraw various incentives offered to manufacturers. The state government is also contemplating moves to include cement in the list of essential commodities. For this Himachal Pradesh Chief Minister Prem Kumar Dhumal has asked the Central government to include cement in the list of essential commodities to check its rising prices. State Industries Minister Kishan Kapoor said, The price of a cement bag in the state is at least Rs 30 more than in the neighbouring states. The companies make huge profits by selling cement at high prices. The incentives offered by the state government to cement companies amount to Rs 350 crore per year. The government is considering withdrawing transport and power subsidy among other incentives . In December, cement companies had agreed to reduce the prices by Rs 10 per bag .This offer was rejected by the government saying the price must be reduced by at least Rs 30 a bag . On their part, cement companies maintain that cement is a deregulated item and so the government cannot force them to bring down the prices.

JK Board orders closure of cement factories

The Jammu and Kashmir State Pollution Control Board has ordered closure of two cement factories in Pulwama district for violating pollution control norms. The two cement factories are a unit of JK Cements and Ittefaq Cements. The SPCB found that these two units have not installed adequate pollution control devices. The order was passed by SPCB Kashmir Regional Director Ali Muhammad Dar during an inspection of the units, located at Khrew area.

MYF appeals SC on limestone mining issue

Meghalaya Youth Federation (MYF) has approached the Supreme Court to stop cement companies from extracting limestone resources in Jaintia Hills district, claiming the area is a forest land. Meghalaya is having an estimated reserve of more than 4,000 million tons of limestone, and till date the proven reserves are more than 500 million tons. In Jaintia Hills alone, an estimate of 1149.85 million tons of limestone is available out of which eight cement companies feed on the rich quality limestone available at Nongkhlieh ridge and Lumshnong area. Birla Corporation Ltd, the flagship company of MP Birla Group, has been granted partial relief by the Rajasthan High Court. The company can now remove 70,000 tons of already excavated limestone from the mining area at its Chanderia unit in Rajasthan. The court has, however, directed the Indian Bureau of Mines to conduct inspection and various tests with regard to the mining activities and its effect on the Chittorgarh Fort and submit a report within one month. The matter will be listed for hearing in January 2012, the company said in its notification to the BSE. Earlier, in August 2011, the High Court stopped mining within 10 km of the Chittorgarh Fort. Following the court order Birla Corporation had suspended limestone mining at Chittorgarh. The mining of limestone at the Chanderia plant had to be suspended following the order of the Rajasthan High Court. The matter was heard on December 19, 2011 and the court has granted partial relief by allowing the company to remove 70,000 tons of already excavated limestone from the mining area, informed the companys notification to the BSE. ACC Ltd plans to increase its export as the rupee has depreciated to over 15 per cent in the past couple of months. Added to the woes is the sluggish demand the cement industry is witnessing. To tide over the uncertainty, ACC is planning to sell its cement in the South Asian market.

HC allows Birla Corp to remove limestone

Sanghi gets nod for cement project in Kenya

Sanghi Industries has informed that it has received environment clearance for its proposed mining and cement project in Kenya. The clearance will help the company to speed up its plans to build a cement plant of 6 lakh tons per annum capacity costing Rs 400 crore. The company is also entering into an agreement with local railway authorities in Kenya to transport cement from the proposed plant to the market. The company has also acquired rights to mine limestone in 2,000 acre of land in Kenya, which will support its cement operations.

ACC plans to sell cement in South Asia

Constro Pune
College of Agriculture Grounds, Pune

12th Jan - 15th Jan 2012

The focus of this exhibition will be on the latest equipment available for construction industry. During the exhibition, seminar and conference will be help to apprise the visitors about the developments that are taking place in the world of construction. Contact: Pune Construction Engineering Research Foundation Tel: 020-2544 7356, 2544 7748 Fax: 020-2544 7848 Email: Website:

Palace Grounds, Bengaluru

27th Jan - 29th Jan 2012

This exhibition is an innovative exhibition and conference dedicated to building and construction industry. It will bring immense networking and trading opportunities closer to the various Indian traders who will get to meet some of the big business tycoons from around the globe. Besides the exhibition the event will also feature an informative and educating conference that will deal with current industry issues. Contact: Asian Business Exhibitions & Conferences Ltd Tel: 022-4050 4900 Fax: 022-2636 7676 Email: Website:

Compack Bangalore 2012

Palace Ground, Bengaluru

27th Jan - 29th Jan 2012

This exhibition will serve as a major platform for the exhibitors to demonstrate the cutting-edge developments in packaging machines, material handling and logistics, and packaging materials, to the targeted industry consumers. The participants will have an opportunity to evaluate the Indian packaging market for their products, and develop long-lasting trade links. Contact: Smart Expos Tel: 044-2860 3086 Mob: 097890 95247 Email: Website:

Tall Buildings India

J W Marriott, Mumbai

30th Jan - 31st Jan 2012

Tall Buildings India will focus on the latest trends, challenges and opportunities in the design, construction and operation of high-rise structures in India. The event will showcase case studies on some of the most interesting and challenging projects in the region and across the globe. Contact: IQPC Middle East Tel: 0971-4-364 2975 Fax: 0971-4-363 1938 Email: Website:

16th Feb - 18th Feb 2012 International Elevator & Escalator Expo
Bombay Exhibition Center, Mumbai
This exhibition will highlight the most topical, trend defined developments of the vertical transportation industry. It is envisioned on the theme of Vertical transportation solutions that high-rise designs call for-almost entirely specialist in nature, ranging from rapid movement set in ultra comfortable transit to cutting edge technology powered safety standards, multi-level access control and intuitive traffic management systems. Contact: Virgo Communications and Exhibitions Tel: 080-2556 7028/29 Fax: 080-4149 3996/97 Email: Website:
Printed & published by Bina Verma on behalf of Asian Industry & Information Services Pvt. Ltd., and printed at Amruta Print Arts, 205, Tantia Industrial Estate, J. R. Boricha Marg, Lower Parel, Mumbai 400 011 and published at Feltham House,1st Floor, 10, J. N. Heredia Marg, Ballard Estate, Mumbai 400 001, INDIA. Tel. :022-2266 0623 / 4710 / 6428 Editor : Bina Verma Assistant Editor : Dilip Phansalkar, A Mohankumar Editorial Team : Pramod Shinde, Lucas DSouza, Paresh Parmar Columnists : Jayakumar Jivraj Shah, Ganesh Kamat, Professor Subhash M. Patil, Parul Sama Mobile : 9820904795 / 9820904931 Fax. No. 022-2266 0632 E-mail: Marketing : Shantanu Baraskar, Ravish Chitrigmath Design : Rajen Mistry (All rights reserved. No part of the contents of this newspaper may be reproduced in any form without the written permission of the Editor.) The views expressed in Konstruction Review either by way of an article or an advertisement are not necessarily those of the newspaper.