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GUEST ARTICLE INDUSTRY WATCH

A Case for Indian EPC Industry to Apply the Balanced
Score Card (BSC) and Become World Class

Dr. Mona N. Shah, is an India Infrastructure Investment Scenario The Engineering, Procurement and
expert and thought leader India’s infrastructure investment targets for the Construction (EPC) project companies would
in the field of education creation of world-class assets are ambitious. be the ones to help achieve the goal.
That’s because the country’s economic
and research. Her work development targets are ambitious. To The Domestic Indian Construction Industry
in the built environment reach the goal of becoming a $ 5 trillion The Indian construction market has its own
has been considered economy, $1.4 trillion alone, is required as an peculiarities. Despite opening up to several
noteworthy in providing investment in the creation of physical assets. large international players, domestically,
thought leadership to In the year 2022, India would need USD 646 it remains highly competitive, and hugely
the sector. The built billion of which 70 percent is needed in aggressive. Medium and small players
power, roads, and urban infrastructure. The
enter the arena, urged by the sustained
environment is vast Indian construction sector is forecasted to government investment in the sector,
covering practically the grow at the rate of 6 percent between the making the overall market attractive. When
whole gamut of human years 2019 to 2024 (Mordor, 2016). Therefore, compared with other sectors such as
activities. As Founder India needs to spend 7-8 percent of its GDP manufacturing, IT, and Services, the Indian
and Director of Vayati on infrastructure construction every year, to construction industry faces flak when it comes
Systems and Research, be able to grow the overall economy at the to the adoption and propagation of world-
rate of over 8-9 percent. Refer Fig 1.
class standards. It is found in study after study
she leads initiatives in that the domestic industry’s predominant
leadership, education, Fig. 1 operating style remains short-sighted and
Growth of Indian
employability based skills Construction Market transactional. Low margins, lack of trained
training and research in 2019-2024 CAGR: 6% human resource, scant use of technology by
projects, infrastructure, real the small contractors continue to hold back
estate sector and related the growth of the industry. In the international
arena, this could act as a road block where
industries. companies from mature industrial countries,
having world class practices, lead because
of their strategic and long-term perspective.
Competition intensifies organically due to
high domestic potential and low barriers
to market entry. Subsequent competition in
2019 2024 the local markets (within India), likely further
Source: Mordor Intelligence intensifies, resulting in an uneven industry

56 CONSTRUCTION OPPORTUNITIES|JULY 2022