Wednesday, October 5, 2022

Table of Contents for Ticker Tape

Ticker Tape - Construction

PE investment inflows into the Indian real estate stands at $704 million in Q2 2022

Private equity investment inflows into the Indian real estate sector stood at $704 million (Rs.56 billion), according to the latest data by Savills India, a global property consulting firm.

The current macro-economic situation influenced in part by the global tensions, commodity constraints, resultant inflationary pressures and monetary tightening are yet to impact the real estate investment markets.

Due to the declining supply of structured credit into residential real estate, the mainstay of PE transactions has been leased office purchase which are high in volume and make the trend lumpier in certain quarters as is also evinced in the 32% QoQ decline.

Private equity investment inflows into the Indian real estate sector have been strong in the yield asset classes like office, warehousing and data centres. Life sciences is another sector which will emerge as a consolidated asset class in the coming years. The uptake in office leasing and steady performance of REITs further underpins the strength of this sector. We will also witness more global investor participation in the housing sector which will fill up the void created post the October 2018 crises.

As per the data, commercial office assets continued to claim the lion’s share, of the PE investment during Q2 2022. All the quarterly investment came from foreign institutional investors and was concentrated in core office assets across Mumbai, Chennai and the NCR.

Additionally, India’s life sciences sector holds huge potential for attracting PE funds in the current decade. This is owing to the availability of a large talent pool at significantly competitive cost making India a compelling destination for global research & development (R&D) and manufacturing. Betting big on this trend, global investment firm called Actis has invested USD 200 million (USD 16 billion) in Rx Propellant which is involved in development and marketing of life sciences real estate projects across Hyderabad and Bengaluru.

Similar to Q1 2022, commercial office assets remain the front runner garnering a major share of the investment pie. PE investment in the life sciences research and development real estate has picked up momentum since 2021 and we expect this sector to continue to grow aided by government policies, competitive costs, and growing talent pool among other factors.



Lodha to develop 1.1-million-sq-ft warehouse, distribution center for Skechers at Palava

Lodha Developers, listed as Macrotech Developers has entered into an agreement with global lifestyle, athletic footwear and apparel brand Skechers to develop a 1.1-million-sq-ft warehouse and distribution center at Lodha Industrial and Logistics Park (LILP), Palava near Mumbai.

The built-to-suit development will be undertaken by Palava Induslogic 2, where Lodha and an affiliate of Morgan Stanley Real Estate Investing have partnered for developing a warehouse park spread across 72 acres of land parcel.

The development of the new Skechers Distribution Centre will be undertaken in two phases, with the first phase being delivered in mid-2023. The state-of-the-art logistics centre will be the second largest national distribution center for Skechers in Asia and is also expected to be one of the tallest warehouse structures in India, constructed on a single plinth and rising to a height of 17 meters at the eaves.

In the last 12 months, Lodha Industrial and Logistics Park has completed 300 acres of plot sale and ‘built-to-suit’ leases. It counts global entities including FM Logistic, Flyjac Logistics, Aptar Pharma, Katerra, Swegon and others among its clients.

Following the implementation of the Goods & Services Tax (GST) and the emergence of ecommerce, the Indian logistics and warehousing sector is headed towards transformative growth.

The demand for warehousing space has stood out in the last few quarters led by penetration of e-commerce and growth of third-party logistics in the middle of the ongoing pandemic scenario.

A favourable regulatory backdrop along with the government’s support through policy and reforms are further expected to boost the infrastructure spend and in turn the overall demand for modern warehousing.


Metro projects to generate Rs.80,000 crore business opportunities for construction companies, says ICRA

The domestic metro rail projects will provide business opportunities worth Rs.80,000 crore for construction companies over the next five years, according to ICRA

In India, 15 cities have operational metro networks of about 746 km (many of which are undertaking expansion), the agency said adding another seven cities have under-implementation metro projects of about 640 km.

This is apart from 1,400 km of metro rail projects worth Rs.2 trillion in the approval/proposal stages, of which a 352-km of new metro network has been approved, with the balance being in the proposal stage.

Metro rail projects offer Rs.80,000 crore business opportunities to construction firms over the next five years, it said.

Given the government’s thrust for infrastructure development, the metro rail network is likely to witness 2.7 times expansion in the next five years.Typically, the metro rail development cost ranges between Rs.280-320 crore/km for elevated metro and the cost could be much higher in the case of an underground metro network.

Civil construction forms 35-45 per cent of the overall cost. Given the large size of the metro projects, this is likely to offer sizeable opportunities for construction companies over the next five years.



JSW Steel Group logs 5.88 million tonne Crude Steel Production in Q1FY23

JSW Steel Limited reported 5.88 million tonnes of combined crude steel production for Q1FY23, a 16% increase on a year-on-year basis, including production at jointly controlled entities.

JSW Steel Indian Operations reported a decline of 2% QoQ at 5.62 million tonne production in Q1FY23 as against 5.71 million tonnes in the quarter ended March 2022. Further, on a yoy basis, it registered a growth of 37% against Q1FY22 at 4.10 million tonnes.

Production of Indian Operations including Joint Control stood at 5.72 million tonnes in the quarter under review as against 5.88 million tonnes in the previous quarter, registering a decline of 3% QoQ, and a growth of 16% on yoy basis. Due to the preponement of certain scheduled shutdowns during the fiscal year 2022-23, crude steel production was lower sequentially.

JSW Steel is the flagship company of the $22 billion JSW Group. JSW Group, one of India’s leading business conglomerates, is also involved in energy, infrastructure, cement, paints, sports, and venture capital.



Lemon Tree Hotels signs a new hotel in Anjuna, Goa

Lemon Tree Hotels has announced its latest signing - Lemon Tree Hotel, Anjuna, Goa. This property is expected to be operational by March, 2023, and shall be managed by Carnation Hotels Private Limited, a subsidiary and the management arm of Lemon Tree Hotels Limited.

Located in North Goa, Anjuna is known for its trance parties held on its beach during the tourist season (October - April), as well as the famous flea markets that come alive every Wednesday and Saturday. It is well-connected with air and railway as the Thivim Railway Station is 16 km away while the Goa International Airport is at a distance of 44 km.

The area is known for the St. Michael’s Church, Anjuna, founded in 1595, which is dedicated to S. Miguel, and celebrates the feasts of S. Miguel and Nossa Senhora Advogada.

Located in Anjuna, this property will feature 51 well-appointed rooms, complemented by a restaurant, bar, spa, swimming pool and gym. It will also have a meeting room.



Brigade El Dorado wins prestigious PMAY Award

Brigade Group-led Brigade El Dorado, located in North Bengaluru has won the Pradhan Mantri Awas Yojna Award under the Affordable Housing projects developed in Partnership with Public & Private sectors category in the PMAY- Empowering India Awards 2022 held in New Delhi on July 08, 2022. The award was handed over by Shri Kaushal Kishore, Honorable Minister of State for Housing and Urban Affairs, Government of India.

The PMAY- Empowering India Awards 2022 seeks to recognize the sincere efforts and contributions of the Central and State Government Agencies and Private Developers in achieving Hon’ble Prime Minister’s dream of “Housing for All by 2022” through different PPP models and promoting affordable housing

Brigade El Dorado is a 50-acre integrated enclave thar offers apartments below 40 lakhs. With the kind of connectivity and features that Brigade El Dorado provides access to, it is one of the most well received projects in Bangalore.”

An eminent jury comprising high ranking officials from both Government and Private Sectors chose the winners.



Tata Steel logs production volume of 4.92 million tons in Q1FY23

Tata Steel India Limited reported crude steel production of 4.92 million tons in Q1FY23, registering a growth of 6% yoy.

Deliveries stood at 4.06 million tons, declining by 2% yoy due to moderation in exports following the imposition of 15% export duty. However, Domestic deliveries were ramped up leveraging the company’s strong marketing network & agile business model and clocked growth of 5% yoy. Tata Steel Europe steel production jumped 5% QoQ but was marginally lower on yoy basis. Total deliveries stood at 2.16 million tons and declined on yoy basis trailing the production. Tata Steel Aashiyana’s revenue during the quarter, an e-commerce platform for Individual Home builders, registered a growth of 77% yoy to Rs.457 crore.

Automotive & Special Products’ segment deliveries witnessed a growth of 22% yoy on a broad-based recovery across all sub-segments.

Tata Steel will continue to closely monitor the resurgence of COVID-19 cases and will take appropriate actions in accordance with the regulatory authorities while keeping in mind the health and safety of its employees and the community, as well as the interests of its customers and other stakeholders.



Tata Steel intends to reopen NINL steel plant in the next 3 months

According to Tata Steel’s CEO and MD T V Narendran, the company plans to restart the 1 million tonnes (MT) NINL steel plant within the next three months. Through its subsidiary business Tata Steel Long Products (TSLP), Tata Steel completed the acquisition of NINL on Monday for a price of Rs.12,000 crore. The facility in Odisha has been shut down for over two years.

When asked about the company’s future plan for the recently purchased steel factory, Narendran told PTI that Tata Steel’s next step would be to assume ownership of NINL and work hard with the company’s staff and other stakeholders to realize the asset’s full potential. “We are prepared to collaborate with current staff members to reopen the factory, which has been idle for over two years. The senior official stated, “We plan to begin production within the next three months and scale up to the rated capacity during the next twelve months.

The designs for the NINL capacity extension to 5 million tonnes will also be finalized during this period, and Tata Steel will get the necessary internal and external permissions. On January 31, Tata Steel announced that it had won the bid to purchase 93.71 percent of the stake in the steel manufacturer NINL in Odisha.

He said, “It took some time since there were many difficulties to be settled between the multiple shareholders of NINL and us,” when questioned about the cause of the purchase process’s delay. In addition to a 1 MT steel mill, NINL features an air separation facility that produces oxygen, nitrogen, and argon as well as a captive power plant to fulfill internal power needs.

Additionally, it has under construction captive iron ore mines of its own. Tata Steel needed to acquire NINL in order to construct a certain long-products complex.



Danish company LJM rents 50,000 sq ft of warehouse space from IndoSpace in Chennai

Lind Jensen Machinery (LJM), a manufacturer of hydraulic cylinders in Denmark, has leased 50,000 square feet of warehouse space from Chennai industrial park developer IndoSpace.

By adding LJM, IndoSpace has increased the number of tenants it has. According to a statement from IndoSpace, the business will establish its first facility in India at Oragadam II in Chennai, where it will make a hydraulic pitch, lock cylinders, and accumulators for the wind turbine sector.

Next month, the facility is anticipated to be operational. After China, it will be LJM’s second production facility in Asia, the company announced. LJM intends to provide components for the wind energy industry in order to serve both domestic and foreign markets. According to IndoSpace, the initiative has already attracted a 2 million euro investment.

IndoSpace is the largest developer and owner of Grade A industrial real estate and logistics parks in the nation. It is jointly marketed by Everstone Group LLP, GLP, and Realterm. With 15 Grade A industrial and logistics parks spread out throughout the primary industrial area, IndoSpace has a significant presence in Tamil Nadu.

Given the long-term potential, not just in the wind turbine segment but also in other sectors, we see a tremendous chance to set up the unit here. According to Martin Anderson, CEO of LJM, this is the ideal moment for us to be here and we are certain that India will eventually become a center for exports to places like North America, South America, and Europe. In 10 locations, IndoSpace has a network of 44 logistics parks totaling 49 million square feet in completed and ongoing construction.



Welspun Corp commissions new plant at Anjar, Gujarat

Welspun Corp Ltd has announced the commissioning of its state-of-the-art Blast Furnace and Sinter plant, and TMT Bars manufacturing facility at Anjar, Cujarat through its wholly owned subsidiaries.

Blast Furnace and Sinter Plant:

The Blast Furnace can produce ~500,000 MT of Hot Metal per annum. This will primarily be used for manufacturing Pig Iron and Ductile Iron (DI) Pipes. The trial production for DI pipes has also started and the facility has recently received BIS certification, the company said.

Besides a 400,000 MT per annum capacity DI pipe plant, this facility is equipped with the latest cutting-edge technology, and will include Blast Furnace, Sinter Plant, PCI and Oxygen Plant Coke Oven.

TMT Bars manufacturing facility:

The present TMT bar manufacturing facility has a capacity of around 350,000 MT per annum. The Company has an existing manufacturing set-up of BIS Certified Steel Billets and Direct Reduced Iron which will be used as inputs for the manufacture of TMT bars.



UP RERA registers 125 new projects in the first half of 2022

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has registered 125 new project in the first half of 2022, 25% increase in new project registration in comparison to H1 2021.

About 66% of these applications belong to non-NCR districts and 34% belong to NCR districts. Residential category has the highest share of new project registration applications, about 75% and the applications of commercial and mixed-land used projects are in the remaining 25 %.

More project registration in non-NCR districts indicated the growing demand of housing units as well as growth of the real estate sector across the state.

In the first half of 2021, about 100 applications of new project registration had been received. Presently, more than 3200 real estate projects are registered in UP.

Lucknow, Kanpur, Varanasi, Bareilly, Prayagraj, Agra, Mathura are top districts of non-NCR districts in new project registration. Apart from these popular locations, applications have been received from Amroha, Shahjahanpur, Gonda, Bahraich, Sultanpur, Firozabad, Lalitpur districts that show an upward trend of group housing and rising impact of real estate regulation among promoters of these districts. In NCR, Gautam Budh Nagar, Ghaziabad and Meerut are top in project registration.

UP RERA has received more than 60 applications of new project registration per quarter in last 6 months that reflects rapid growth of the real estate sector in the state.

After the implementation of RERA Act 2016, if an under-construction property is part of notified planning area and construction on land is upto or more than 500 square meters (5382 square feet) and total number of units are 8 or above then, it is mandatory to register it on the website of UP RERA.



Ashiana Housing gets RERA registration for ‘Ashiana Malhar’ project at Pune

Ashiana Housing Ltd announced to the exchanges that it has obtained RERA registration (ie. registration under the Real Estate Regulation and Development Act, 2016) of Phase 1 of “Ashiana Malhar” project at Pune (Maharashtra).

The management has opened this project for expression of interest of customers. The project is set to be launched for booking (conversion from expression of interest to booking) from August 27, 2022. According to the filing, “Ashiana Malhar” project is a residential project and has total saleable area of 2.68 lakhs sq. ft. approx. The project consists of 2 BHK and 3 BHK units and is located at village Marunji Taluka Mulshi, Pune 411057 (Maharashtra), the company said.



Central Vista: DEC Infrastructure emerges as lowest bidder for construction of Executive Enclave

Hyderabad-based construction firm DEC Infrastructure has emerged as the lowest bidder for the construction of the Executive Enclave that will house the Prime Minister’s Office (PMO), the Cabinet Secretariat, the India House and the National Security Council Secretariat, according to an official document.

DEC Infrastructure and Projects (India) Private Limited had quoted an amount of around Rs.1,189 crore, 10.44 per cent less than the Rs.1,328-crore cost estimated by the Central Works Department (CPWD), which has been executing the Narendra Modi government’s ambitious Central Vista Redevelopment project.

The estimated cost also includes maintenance and housekeeping for five years.

Tata Projects Limited, which is constructing a new Parliament building, quoted Rs.1,407 crore, which is 5.97 per cent more than the estimated project cost.

Larsen and Toubro Limited had quoted a bid amount of around Rs.1,424 crore, according to the document.

Apart from the PMO, the Executive Enclave will house the Cabinet Secretariat, the India House and the National Security Council Secretariat (NSCS). The India House will be used as a conference facility like the Hyderabad House where high-level talks, especially with top visiting leaders of various countries, are currently held.

The new PMO will have three floors with a floor height of 4.75 metres, in addition to the basement and the ground floor, and the new Cabinet Secretariat and the NSCS will have the same building structure.

The Executive Enclave will come up on the south side of the South Block in plot number 36/38 in the high-security Lutyens’ Delhi.

Tata Projects Limited is constructing a new Parliament building. In October last year, Larsen and Toubro Limited was awarded the contract for the construction and maintenance of the first three buildings of the common Central Secretariat. Shapoorji Pallonji and Company Limited is executing the redevelopment work of the Central Vista Avenue stretching from Vijay Chowk to India Gate.

The redevelopment of the Central Vista, the country’s power corridor, envisages a new Parliament building, a common Central Secretariat, revamping of the three-kilometre Rajpath from the Rashtrapati Bhavan to India Gate, a new office and residence of the prime minister, and a new vice-president’s enclave.


Sree Kailas Group to set up Rs.150 crore warehousing unit at Sunguvarchatram near Chennai

Sree Kailas Group, a developer of logistics parks, on Thursday announced that it is setting up a warehousing and industrial space with an estimated investment of Rs.150 cr at Sunguvarchatram near Sriperumbudur, off Bangalore Highway.

The 6 lakh sq ft project is coming up in 30-acre of industrial plot and the Group will implement it in a joint venture with Indospace, it said in a press release.

Group chairman S Rajkumar said the project would be completed in 18 months. Sunguvarchatram, he said, will be the next industrial and logistics hub of South India. It is already the largest electronic cluster in India, he added.

The presence of industry giants in mobile phones and electronics, manufacturing, and proximity to Oragadam — the auto hub of India — makes Sunguvarchatram one of the most sought-after areas for commercial and residential real estate properties.



L&T Realty inks pact to develop project worth Rs.8,000 crore in prime locations of MMR

L&T Realty, Larsen & Toubro’s real-estate development arm, announced its expansion plans in the Mumbai market to drive growth. The company has entered into a binding agreement to jointly develop projects worth Rs.8,000 crore in South Mumbai, Western Suburbs, and Thane, with a development potential of 4.4 million square feet. This is part of the company’s larger plan to expand its footprint in major cities by adding approximately 5 million square feet per year over the next five years.

The South Mumbai project will be built on a five-acre plot of land with a clear harbor view and good connectivity to the rest of Mumbai. This residential complex will feature twin 50-story towers with luxury amenities and retail space.

The project in Western Suburb is located in the prime area of Andheri. This will be L&T Realty’s first project in the Western Suburbs, and the company further envisages building a modern gated residential complex with 20 towers and a modern shopping complex. The Thane project will be built on a 6-acre plot of land in the heart of the city. These high-rise residential towers will stand tall in Thane’s skyline, surrounded by good social infrastructure and ample amenities on-site.

L&T Realty has a 70 million square foot portfolio of Residential, Commercial, and Retail developments and is currently present in Mumbai, Navi Mumbai, Bengaluru, Chennai, and, to a lesser extent, NCR and Hyderabad.



Over Rs.8,700 Cr worth properties registered in Hyderabad in Q2 2022

Hyderabad witnessed residential property registrations of 5,408 units in June 2022. Sales registration dipped 25% YoY in June 2022 as the market took a breather after observing a continuous upswing.

Despite the moderation in sales in June 2022, Hyderabad’s overall outlook remains positive as 17,074 properties were registered in Hyderabad in Q2 2022, a 9.1% YoY increase. The total value of properties transacted in Q2 2022 stood at Rs.8,685 crore, a 25% y-o-y rise indicating towards the fact that while lesser number of homes were registered, the average value of homes registered in June was higher than its corresponding period last year.

The end-users in the Hyderabad market continue to be drawn to home purchases encouraged by factors such as stable economic environment, rising household income and amenable home-loan interest rates. While the rising construction cost has had an impact on the more price sensitive categories, its influence on the upper segments was limited, keeping the market robust. Hyderabad remains in the affordable zone despite the rise in home loan rates.”

The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.



Realty platform Joyville Shapoorji Housing to invest Rs.700 crore in land acquisition

Realty platform Joyville Shapoorji Housing will invest Rs.700 crore in land acquisition even as its promoters explore options for the next round of funds, its managing director, Sriram Mahadevan, told ET.

The Rs.1,240-crore platform was established by Shapoorji Pallonji, Actis, International Finance Corporation (an arm of the World Bank) and Asian Development Bank for the development of housing projects. The company is looking to take the project count to 17–18 in the next 18 months from 11 now.

“The first platform capital would have been exhausted by the end of 2022. All the investors are now jointly talking and we have decided to expand this platform further,” said Mahadevan.

The company has deployed close to Rs.1,000 crore and the balance of Rs.240 crore will also be deployed in Pune, where it is in advance talks for an acquisition.

Funds from this platform are used only for land acquisition and construction, and have been backed up by either construction finance, which it has raised, or by the customer advances the company receives.

“Our topmost priority will be Delhi-NCR. We would like to expand in the region because our first project on the Dwarka Expressway has been a super success,” said Mahadevan. “The expansion in the NCR will be followed by Mumbai and Bengaluru. We are already heavily invested in Pune and, though it still remains in focus, it will be relatively less after the next acquisition.”

In NCR, the platform is looking at Gurgaon and Noida to expand and is open to opportunistic places like Faridabad, or the outskirts of Delhi.

“We intend to close at least two transactions in Delhi by the end of the year. We are scouting for land in Mumbai and evaluating a few options,” Mahadevan said. “We are certainly looking at Bengaluru, as it is the market we would like to be present.”

Joyville has launched six housing projects in four major cities. In Pune, the group offers aspirational addresses such as Joyville Hinjewadi, Joyville Hadapsar Annexe and Joyville Sensorium. It also has presence near Mumbai (Joyville Virar), near Kolkata (Joyville Howrah), and in Haryana (Joyville Gurugram).

The platform is exploring multiple options for funds.

“As of now, we have not yet decided whether it will be a fund or another platform for growth capital. We also have the option of redeploying the existing surpluses,” Mahadevan said. “So we are at that stage where we have not yet decided firmly through which route we will expand. Creating a new platform is certainly an option, as is redeploying our existing platform surplus.”

He said getting more investors is also an option. “I think by the end of September we should be in a firm position to close. As more and more projects get added to the platform, the better the platform returns will be,” said Mahadevan.

The company said that young Indians have now started buying property, which has led to growth in sales. “Millennials have realised it is very important to own their own home. The flexibility given by a lot of companies to work from home eliminates travel. So now they want to buy their own place, “Mahadevan said.

The impact of an increase in home loan rates may not be much on people’s realty investment plans as they realise that the rates are only likely to increase further, so the faster they invest the better.

“That still remains positive as far as the real estate sector goes, and we at Joyville also have got the benefit of this trend,” the executive said.

Joyville recently acquired another land parcel in Pune, which it will take to the market sometime by the third quarter of this year.



IISER New Campus built by renowned infrastructure developers - NKG Infrastructure Ltd

Permanent campus of Indian institute of Science and Education Research (IISER), Berhampur (Odisha) will soon have its 1st batch of students residing in campus as Honourable Education Minister Shri Dharmendra Pradhan Ji, Inaugurated the Boys hostel building on 10th July 2022.

The Indian Institute of Science Education and Research Berhampur, established by the Ministry of Human Resource Development, Government of India is a centre of excellence dedicated to teaching and research in basic sciences. IISER Berhampur aims to be a University of the highest calibre devoted to both high quality teaching and state-of-the-art research. IISER plans to develop advanced teaching and research laboratories where students will have the opportunity to perform experiments as well as pursue advanced research under the mentorship of world-class faculty.

The campus has an academic building, auditorium, residential quarters for teaching and non teaching staff, hostel for students, sport facilities, commercial centre etc. The buildings are constructed to withstand high cyclonic wind speeds as the campus is in a cyclone prone area. Central Public Works Department (CPWD) awarded the 694 Crore construction work (under Central Education ministry) to NKG Infrastructure Ltd.

NKG Infrastructure Limited, a New Delhi Based firm which has over 33 years’ experience in construction of roads, airport buildings, hospital buildings, educational/university campuses, electrification works, flyovers, underpasses, sewage treatment parks etc.

By developing one of the larger IISER campuses in the country NKG further consolidates its position as Contributor to the country’s infrastructure sector.



Construction equipment sales to breach the 2018 peak next year

Construction equipment sales, a barometer of economic activity, should breach the 2018 peak of around 100,000 units next year, paced by increased government spending on infrastructure projects. “Next year (2023) will be an important year. Execution of projects will all be very high, starting later this year to next year,” says Dimitrov Krishnan, Head, Volvo Construction Equipment, “There might be a little bit of a disturbance in the macro environment, which to a large extent is not just in the government’s hands. It’s also driven by global economic factors. But I do believe 2023 should be the next peak.”

Krishnan said that rising demand for power, coupled with the government’s focus on infrastructure investment to increase economic activity, would help boost the demand for construction equipment.

“We expect to see a growth of roughly 10% this year, on the total market side. The growth is largely driven from segments like coal mining and handling,” Krishnan said.

“The need for power is driving demand for coal production as well as import of coal. At the same time, we have seen a lot of focus on infrastructure,” said Krishnan on the sidelines of the launch of the EC 550 excavator last week.

The Centre has budgeted a 36% increase in its capital spending to a record Rs.7.5 lakh crore this fiscal year, with a focus on infrastructure development to spur growth.

Despite the pandemic, road construction activity also has been strong - both in FY21 and FY22. Last year, the construction activity reached close to 29 kilometers per day. With an increase in tendering activity, Krishnan expects road construction to grow further this year.

Overall, the market is poised for growth in the next few years and is expected to become the second largest in the world for construction equipment by the end of the decade.

“It’s a market that has huge potential. Our estimate is that the Indian market will grow by 2-3 times by 2030. Not only that, with the direction that the government has set when it comes to sustainable power solutions as relates to the electrification or use of alternative fuels, India will lead the way,” Krishnan said.

India is currently the third largest for the industry, after the US and China.

To cash in on the potential, Volvo CE is investing heavily in developing products tailored to suit the local market, and aims to treble sales to about 6,000 units in the next five years.

“So, our focus toward serving the Indian customer is both by localization of product and also doing a lot of engineering work out of India. We have so far developed road compactors and pavers with local R&D teams. Going forward, we will be investing in R&D work for hydraulic excavators, which are the bigger markets,” said Krishnan. Volvo will invest in R&D for the diesel engines products, and also in future for sustainable power solutions driven options.

Apart from local sales, Volvo CE is also working at growing exports out of India. The company currently exports about 15-20% of its production out of India to markets in Southeast Asia, African, Latin America and neighboring countries like Nepal, Bhutan, Bangladesh and Sri Lanka. It has the capacity to produce 3,500 units per annum at its manufacturing facility, with utilisation levels in the range of 60-70%.



Lancor launches ‘Harmonia’ townships for co-living of senior citizens with other age groups

Harmonia townships are coming up in three places—Sriperumbudur, Guduvanchery and Sholinganallur—near Chennai

Lancor Holdings Ltd, a leading Chennai-based realty player, has launched new vertical “Harmonia” residences, described by the company as the country’s first ‘Blue Circle’ townships built for senior citizens yet providing the opportunity to live amongst the younger generation. Harmonia townships are coming up in three places—Sriperumbudur, Guduvanchery and Sholinganallur—near Chennai.  The population of senior citizens is expected to increase manifold and there will be a huge gap to fill their housing needs. There are more than 12 players in the country addressing the needs now.

The multi-locational Harmonia residences comprise villas and apartments designed for senior citizens with customised features offering independence, privacy and comfort.

In Sriperumbudur, the company offers 1 BHK, 2 BHK and 3 BHK houses. The cost of 2 BHK villas with a built-up area of 900 sq ft on a land area of 1700 sq ft will be Rs.63 lakh.

In Guduvanchery, the cost of a 2 BHK house will be in the range of Rs.30 to Rs.48 lakh. Harmonia at Sholinganallur comprising 2 and 3 BHK will cost Rs.62.50 lakhs onwards. About 85 houses will be made available for senior citizens in this location.

The senior-friendly amenities at Harmonia “Blue Circle” for senior residences include a clubhouse, parks, swimming pool, gym, kitchen and restaurant, medical support, lounge, library, tennis court, badminton court, temple and convenience store.

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