How has Kishore Infratech evolved in the last four years and what sets it apart from its peers?
Kishore Infratech was earlier off-loading its works to various vendors across India. It executed around 300 Sheds without even having its own fabrication work shop. Most of our customers and prospective customers insisted us to setup our own fabrication work shop. We started our own fabrication facility at Hyderabad with state of art modern machinery. Kishore Infratech is a family driven enterprise. I take care of marketing and rest of activities is been handled by my elder brother Balraj. Finalizations of the projects are usually dealt by me personally and execution by my brother which gives a personal attention to every project. This has become an USP for Kishore Infratech. As you are aware that in this digital open market world customers are more price centric. Kishore infratech approaches its customers with a transparent price algorithm. It declares the cost price for execution of the project and also declares its margins. This unique approach is been appreciated by most of its customers.
What is the current market size and growth rate of PEB industry? What would be the growth rate for the industry for the next three years?
Pre Engineered buildings market is taking a great leap as the steel prices are at more affordable league. This year the total Indian PEB sector size may reach to a tune of Rs. 6,000 Crores. Vigorous competition among Domestic PEB players is also complimenting the customers to get a remarkable price benefit. Pre Engineered buildings are now generic in adequacy especially for industrial and warehousing sector because of its faster completion, 100% Recyclability, modular ambience, Portability and no cost over-run. Few PEB players are also offering free value adds which includes supervision and structural designing for RCC foundations which in turn bypasses them to spend predominant money on Architectural and structural consultancy services. Although PEB buildings are re-locatable, at a worst even if the shed is sold as scrap after 20 to 30 years the amount invested can be realized. This advantage will not be there with conventional RCC buildings in fact it becomes debris.
Which all sectors will be the major growth drivers for the industry?
Perhaps PEB is now used at most of the Industrial and warehousing projects. Other than these there is huge gap in the market to address Prefab houses. Most of them would love to have a prefab house but by the time they compare its price with conventional brick mortar house the price looks the same or some time it crosses more than conventional type. Should strive hard to get the price down which will certainly be a new vertical for PEB sector all together.
How does price volatility in steel effects PEB project?
Steel price fluctuation is one the trepidation to the PEB business. Looking at competition the PEB companies take up projects calculating the current steel prices and pick up the orders. By the time it finishes its approval process and the customers concludes the site mobilization will take a reasonably good time. During this gap if the price of the steel shoots up, the cost price of the raw material will be higher than the calculated price. This will undoubtedly take the project in less profit or sometimes drags its losses. This is one of the biggest challenge a PEB company faces every now and then.
What are the policy changes and regulations required for the growth of PEB industry in India?
In present scenario the GST which is charged to the industries for the constructions, the customers cannot claim back or take inputs of the GST paid by them. It will be great if the customers can claim back the GST as other capital machinery products. 18% is a huge amount.
What are the logistic challenges faced by PEB players? How has GST benefitted/affected the PEB industry?
GST has set a flexibility in doing the business in any part of India with a simple billing system. We can procure from anywhere and sell to anyone to reduce the logistic cost and ultimately benefit the customer. The bitter side of GST effect: There is an increase of 20% in the price of raw material if we compare it all inclusive price. Import restrictions al this price increase.
What are your plans to increase your market share for the next three years?
In this digital world everyone wants the price of the products instantly. It’s a practice that if you want price of some product we Google it and we get the price of it through the shopping portals like Amazon, Flipkart, etc. This will help them to compare the price of the product and take instant decisions. As a matter of fact PEB sheds are not in fixed standard sizes it varies from site to site conditions, there are no such online price declaring system for PEB. Kishore Infratech is shortly launching an online application with around 3,000 pre designed sheds. Customers need to just click the desired sizes, instantly they can get the price along with proposal drawings. This system will surely help us to get more and more prospects. We are expecting our company to reach 10 folds more business in coming three years.
@EPC World Media