The roads as well as the metro sector in the country is seen growing at a fast pace, said Anand Sundaresan, Member, Excon 2017 and Chairman, Schwing Stetter Sales and Services Pvt Ltd. while talking to Infrabuddy.com
After 2009, the industry is back on its progress chart. Though India had bounced back in 2010 and 2011 after recession, the growth had gone down a bit again in 2015. The industry grew around 2016 but did not reach the desired levels. But I expect that in this year 2017-18, we will be crossing the desired levels by 17% growth. This peak is the same as we had in 2011 and going forward before the next elections in 2019, we expect more projects to be awarded. All ministers and bureaucrats in the Government, are expecting good growth now. And the progress is conspicuous going by the new national highway projects that have been announced. The roads sector is growing at a very good pace. Besides roads, the other sector that is growing is the metro rail project. Only in India, there are metro rail projects under implementation simultaneously in different parts of the country. Due to this development, the equipment market will also grow which can be noticed from the footfall in the stalls at EXCON which is much more compared to the last edition. Personally I feel this growth will continue for the next few years. For this progress, contractors should gear up themselves including the newcomers to execute the projects on time.
International professionals will not actually increase in numbers. They will work as an employee in or as a consultant to the existing constriction companies. Like some companies are already doing it viz. ESSAR, HCC etc. Companies hire experts who have experience in implementing mega / big projects abroad. They are hired mostly because they exactly know how to optimise the use of machines.
GDP growth index is an outcome of many other products and so cannot be an indicator of CE industry’s future. For the industry, we had conducted a survey and interviewed around 1000 different stake holders of this industry like policy makers, construction / equipment manufacturers, component manufacturers and the survey foresees a positive growth in the industry. Industry today will end up with about 4.2 billion USD in 2017-2018. This is likely to grow to 9 billion USD in 5 years.
On Real Estate
Affordable housing projects will again push the industry, but the unsold inventory will be difficult to sell. Expensive flats and projects are not offering good results as of now and it will take time to liquidate this stock.