Construction Industry In India

OUTLOOK OF INDUSTRY

Presented By:
Arun Pahuja
(17819103913)


PERFORMANCE OF CONSTRUCTION INDUSTRY
(FINANCIAL YEAR 2012)

In FY 2012-13 the overall GDP growth slowing down, the growth
in the construction industry dipped to 4.8%.

The 2012-13 budget the government double the financing limit of
financing infrastructure projects to Rs 600 bn.

FY2012-13 was a challenging year for the Indian real estate sector
marked by declining volumes, over supply (in certain pockets) and
lack of sustained economic activity.

On an overall basis, companies from the real estate and
construction sector faced issues related to higher interest costs
on the back of balance sheets.

The Reserve Bank of India kept the interest rates on the higher
side due to concerns over the high inflation levels.


OPPORTUNITIES & RISKS IN THE INDUSTRY
Opportunities:

Continuous private sector housing boom will create more
construction opportunities.

Public sector projects through Public Private-Partnerships will
bring further opportunities.

Financial supports like loan and insurance and growth in
income of people is in support of construction industry.

Developing supply chain through involvement in large
projects is likely to enhance the chances in construction.

Risks:

Current economic situation may have an adverse impact on
construction industry.

Natural abnormal casualties such as earth quake and floods
are uncertain and can prevent the construction boom

Lack of political willingness and support on promoting new
strategies.

Long term market instability and uncertainty may damage the
opportunities and prevent the expansion of training and
development facilities.

Infrastructure safety is a challenging task in construction
industry.

GROWTH POTENTIAL OF CONSTRUCTION INDUSTRY
Sufficient availability of raw material and natural resources in
the country is supportive for the industry.

Low cost well- educated and skilled labour force is now
widely available across the country

Employment and training opportunities in the field of
construction.


Government of I ndia has set up Construction I ndustry
Development Council (CI DC) to take up activities for the
development of the I ndian construction industry.
CAREER OPPORTUNITIES IN INDUSTRY

4 Major Career Option Categories are:

New Home Building and Renovation
Heavy Industrial Construction
Institutional and Commercial Construction
Civil Engineering Construction

There are more than 265,000 firms in the construction
industry. Of these firms, 150,000 are private trades
contractors. More than 68,000 operate in residential
construction
Construction industry suffers from capacity constraints.

Lack of trained manpower and managerial skills with
performance much below international level.

The industry is starved of finance.

Small and medium contractors do not have the wherewithal to
upgrade their capability.

Quality, safety, environment and social aspects are also not
being addressed appropriately.

CONSTRUCTION COMPANIES IN INDIA
Larsen & Turbo






DLF







Jaypee Group






GMR Group
Tata Projects





Gammon India
Hindustan Construction Company





Sobha Developers Ltd
GLOBAL MAJORS IN INDIA

Jones Lang LaSalle (JLL), the
world's leading integrated global real
estate services and money
management firm, plans to invest
around 646 million or Rs. 45.13
billion.
DAMAC Properties would invest up
to 2.9 billion or Rs. 202.67 billion.
DAMAC Properties is one of the
largest held luxury property
development companies in the
Middle East, based in Dubai, in the
United Arab Emirates
Merrill Lynch & Co has bought 49 per cent
equity in seven mid-income housing projects
of India's largest real estate developer DLF in
Chennai, Bangalore, Kochi and Indore for
243 million or Rs. 16.99 billion.
Rakindo Developers would invest well
over 3 billion or Rs. 209.59 billion over
the next five years. Rakindo Developers
Pvt Ltd, is a Joint Venture between
Rakeen, a Joint Stock Company,
promoted by the Govt. of Ras-Al-
Khaimah, UAE and the Trimex Group,
India.