How is the market for PEB shaping up in India? How has your organization performed in Post Pandemic, in Covid-19 and after relaxation in lockdown?
PEB market in India is evolving very fast now days. Demand is increasing and at the same time clients are expecting more customization, faster delivery and execution. Nowadays we are receiving contracts from mid or smaller organization for mid and small size PEB projects.
During lockdown production decreased substantially due to lack of availability of manpower. Raw material supply was also disrupted. However, as soon as lockdown was relaxed production and execution was ramped up and surpassed the level of post pandemic.
What are the emerging trends in the PEB sector?
There is overall uplift in basic specification like minimum heights and spans. Requirement of accessories like insulation is a minimum norm now. Faster delivery and stiffer customization are in trend now.
What is your Outlook for the PEB industry in 2022? Which are the sectors that will contribute maximum revenue to the PEB players?
Growth of PEB industry shall continue in 2022. The growth shall be fuelled by logistics & warehousing followed by engineering, packaging and food industry. Other industry such as paint, plywood, automobiles and others will also contribute to the growth.
How does the volatility in steel prices affect PEB projects?
Volatility in steel price is posing a severe threat for PEB industry. The industry is still finding it tough to find a way as already operating margins are too low, which can be wiped out in case steel prices increases substantially even pushing the company on negative margins. Steel price volatility is also a major reason for disputes in contracts.
What are the challenges faced by PEB players in India?
The primary challenges facing the industry are volatility in steel prices and reduction in margins
Which are your recently executed projects? Please share with us a few features of the project?
We are doing mix of projects in various industry segments like in warehouse, logistics, engineering, food, process plants, automobile, etc. Some of key projects are FootPrint Warehousing, Ashwika Warehousing, Shakti infra, ABB, Endurance technologies, Natural storage solutions, etc.
Please take us through your manufacturing units?
We are having state-of-the-art manufacturing unit situated in Ahmedabad. This manufacturing facility is equipped with all the modern machinery required for highest level of automation for faster and error less production. We are having all the machines like CNC plasma, H-BEAM, shearing machine, profiling machines, shot blasting machines, CNC punching, CNC drilling, etc.
How are you overcoming the shortage of skilled manpower? What are the skill nurturing training you provide?
Shortage of manpower is one of the key challenges. To overcome the issue of shortage of skilled manpower we are trying to increase automation as much as possible. We are conducting regular training session for project, design and sales team regularly. We are using internal as well external resources for training purpose to refresh and improve the skills of our team.
How can the government hand-hold the industry to propel the sector in this Pandemic period?
We expect government to keep interest rates lower to reduce cost of finance and easiness, faster disbursal of working capital facilities.
How do you see the economy, opportunities and challenges in this pandemic situation and please give us a brief idea about the strategies outlined to tap in the future potentials? We strongly believe in India success stories and feel there shall be tremendous growth in infrastructure hence opportunities for every segment shall be there. The ongoing Pandemic is presenting a lot of challenges and one of the most critical in them is uncertainty. Uncertainty in terms of prices of steel, man power, fund flow and project continuity.
We are very much focussed on customization and personalized services in our projects. To check in raw material supply we are focussed to keep minimum inventory at higher level although this is increasing the cost of doing business but we are keeping the time frame of project intact. To keep the momentum we are increasing our geographical presence in north and south India as well. Freight is the one of the key factory in today competitive edge. Our new plant is being planned to reduce the freight cost for out of the Gujarat project.
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