15 October 2019

Table of Contents for Readymix Concrete & Equipment





Readymix Concrete Equipment

Ready to mix

 

With the emerging markets driving the global economic recovery, concrete has by far surfaced as a major constituent of any developing nation’s arsenal as it continues to push infrastructure development to manage rapid urbanisation and the demands of a growing population reports Shailaja Sharma

 

According to Grand View Research, Inc, the worldwide ready-mix concrete market is expected to reach $954.7 billion by 2024 withan expected CAGR of 7.6 per cent from 2016 to 2024.Asia-Pacific region has emerged as the largest regional market for concrete and cement, accounting for 62.5 per cent of the global market, followed by Europe and North America with respective shares of 12.8 per cent and 11.0 per cent .

 

In India the government push for infrastructure, emergence of Real Estate Investment Trusts (REITs), lowering of interest rates, development of smart cities, revival of 160 Indian airports and trend towards high rise towerscontinues to drive the growth. According to an IMF Working Paper India aims to advance spending on infrastructure construction to about 8.1 per cent of GDP by 2021-22.

 

Many companies are now taking the inorganic route to rapidly scale up operations. In July last year, Nirma Ltd., the Ahmedabad-based detergents and chemicals maker acquired Lafarge India's cement assets for about $1.4 billion, (Rs.9,400 crore), outbidding both JSW Cement and Piramal Enterprises. Prior to the acquisition, Nirma operated a 2 MTPA cement unit and this additional capacity is expected to help the company leverage the expected surge in infrastructure construction.

 

LafargeHolcim continues to operate in India through ACC Ltd. and Ambuja Cements Ltd. with a combined capacity of more than 60 million tonnes and a nationwide distribution network, making it the second-largest cement player in the country. The biggest player in the RMC market is UltraTech Cement, led by Kumar Mangalam Birla.

In the meanwhile, the Kolkata-headquartered Shree Cement doubled their capacity to 27.6 million tonnes (MT) in the past five years. In an interview to economic times, Hari Mohan Bangur, MD, Shree Cement said, “The focus is on ways to improve profitability. Selling at highest rate may not be the most profitable thing to do. There is an inverse correlation between volume growth and cement prices. If I increase cement prices, volume growth will come down. So, to find a sweet spot, we maintain a certain ratio of price and volume, which has yielded one of the highest margins in the industry. “On the construction equipment front, Schwing Stetter, one of the leading concrete equipment manufacturing companies in India is partnering with XCMG China, one of the world’s largest construction machinery makers’ to set up a new facility in India. XCMG will invest $150 million in the new facility aimed at manufacturing of construction and material handling machines. The output is aimed for both the domestic and export market.

 

Demonetisation dampener

In midst of all the positive sentiment, the governments’ surprise demonetizations move created a sort of a dampener, affecting several sectors. But though the move did severely impact growth in the real estate segment, it is expected to create fresh demand in the coming few months.

 

According to Ramesh Nair, COO – Business & International Director, JLL India, banks are right now flush with funds increased by a windfall gain from currency replacementpost demonetisation. In fact, the new year began with State Bank of India (SBI) dipping its one-year marginal cost of lending rate (MCLR) to 8 per cent from 8.9 per cent . A home loan of INR 75 lakh, which was earlier available at 9.1 per cent , is now available at 8.6 per cent . Several other banks such as Union Bank of India, IDBI Bank, Punjab National Bank had to follow suit to remain competitive and, subsequently reduced their home loan rates. Also the recent concessions on interest rates for low-cost housing loans announced under the Pradhan Mantri Aawas Yojana are expected to further bolster the demand for real estate and also attract investment from foreign pension funds and insurance companies. All these factors are expected to provide a fresh new thrust to the sector and consequently grow the market for RMC and RMC equipment.

 

“We need to understand that by housing segment, we usually refer to organized housing, which is not even 5 per cent of the real estate segment. It is present mainly in big cities such as Mumbai, Delhi, Hyderabad, Pune, Kolkata, and Chennai. A larger demand is in cities beyond metros in the form of individual houses. Rural housing also counts. These segments will continue to grow given the government's focus on providing homes for all. The impact of slowdown in housing segment will be largely on big builders in organized housing and not as much on individual housing.”, Hari Mohan Bangur, MD,  Shree Cement added.

 

Valuing the whole RMC business at around 12-14 thousand crores, Pralhad Mujumdar, CEO, ACC Readymix Concrete says, the outlook is quitebright. “Apart from infrastructure, the high and mid-range sectors likeaffordable housing and smart-cities, both seem promising. They are yet to happen but things are definitely looking up.”

 

A Banchhor, MD & CEO, RDC Concrete estimates the size of the market to be around 20 lakhs cubic metres of concrete, with 45 per cent being executed by national players and the rest by locals and unorganised players.

 

“We are expecting to look forward to the RMC demand to grow by around 18 per cent CAGR to reach a total market size of Rs.586 billion from 2012-13 to 2017-18. Housing construction is expected to account for about 76 percent of the demand while infrastructure and industrial segments are likely to constitute about 17 per cent and 7 per cent, respectively.”, said Mehernosh Pooniwalla, Head – Construction Materials, Godrej Construction.

 

New products leading the market

On the equipment side, the ability to serve domestic and international markets with competitive products is a critical determinant of success today.

 

“As a Concrete Equipment manufacturer, we have witnessed a growth of about 25 per cent in 2015-16. We expect that the continued thrust on Infrastructure projects by the Central and various State Governments will maintain the pace of growth in 2016-17 as well. Going forward, lowered interest rates and GST implementation along with the acceleration of Infra projects will further boost the growth of Construction Equipment Industry.”, Debasis Bhattacharya, Head – Sales, Marketing and Product Support, Ajax Fiori Engg (I) Pvt Ltd

 

It is no surprise that many RMC equipment manufacturers continue to launch anarray of new products, reiterating their confidence in the market.

 

Many of the products were geared towards meeting Indian market requirements of tough operating conditions, low maintenance cost, safety and high output and lot of them were showcased at the recently conducted Bauma Trade Fair.

 

KYB-Conmat, part of KYB Corporation of Japan introduced their concrete pump SCP75 and SCP45 which claim to have been specially designed for Indianconditions. “We have achieved this after rigorous quality norms, which were audited regularly for best results.”, says, Prem Raj K, MD, KYB Conmat.

 

While Ajax Fiori Engg (I) Pvt Ltd recently launched their new model JSP 50 StationaryConcrete Pump with a pumping capacity of 50 cu.m/hr. and also showcased their full range of Self Loading Concrete Mixers,specially designed toimprove consistency and reliability of the quality of weighing system.

 

Putzmeister launched their MT-1.0 batching plant with an output capacity of 60 m3/hr first in August 2015, followed by the MT 0.5., with an output capacity of 30 m3/hr. Both were exclusively designed for the Indian market and have proven their robustness and performance since their launch last year.

 

Schwing Stetter India launched 14 new products at Bauma Conexpo India 2016 including RVH18, a concrete distributor with a DN 125 pipeline used for spreading concrete more efficiently in construction and reducing labour dependence. They also introduced LW300FN – a 3 tonne Wheel Loader, with a BS III Tier turbo charged engine, which claims to delivers concrete with 20 per cent higher compressive strength. That comes from the engineered drum technology.

 

Amongst concrete equipment, concrete pumps (segmented into truck mounted, boom pumps, stationary pumps, and specialized pumps),are another category attracting a lot of customer attention. These pumps, capable of pumping concrete at a very high volume have gained significant market share and are estimated to grow at a stronger rate on back of good growth in metro projects, high-rise projects, power projects , flyovers and bridges.

 

Some of the leading players in this segment include Sany Group and Zoomlion Heavy Industry Science & Technology Co, XCMG Group., Liebherr, Putzmeister, Beston (Henan) Machinery Co., Ltd, RTK Engineering Co, Schwing Stetter, and Sebhsa.

 

The Indian concrete pump market is distinct from mature markets. “In mature markets like the USA, Europe and even China, truck mounted pumps are the main product lines. In India, however, stationary pumps with an hourly output of 40-90 m³ dominate the market,” says Wilfried A Theissen, MD, Putzmeister Concrete Machines India.

 

In, Bengaluru’s 5th largest building and the biggest luxury commercial property project, Putzmeister’s BSA 1408 HD stationery pump was used to pump M30 grade of concrete to a height of 130 m, giving rise to the target height of this project of 145 m.

 

“Automation in Putzmeister stationary and truck mounted boom pumps, allows operators to monitor the fuel consumption, hydraulic oil heat control, pressure, output, engine performance, etc.The ability to synchronise the engine output with the required pumping output introduces operational efficiencies, a growing consumer priority” says Theissen.

 

Schwing Stetter also recently introduced their heavy-duty stationary pump SP 4507. SP 4507, a new development, is capable of handling high grade concrete mixes and is primarily aimed at the high rise segment, where the sector presently faces the challenge of pumping the mix with stiff consistencies at a faster rate to around 300m vertical. Some of their other products for the RMC sector showcased at Bauma included Transit mixer with pump TMP 32.6, Batching plant M30Z with Inline Silo., Recycling plant RA20, Flat top tower crane XGT T80.

 

The dawn of concrete recycling

Since the launch of government initiatives like Swachh Bharat, Ganga cleaning and the Smart Cities project, previously lesser-used product categories within the concrete equipment industry are becoming more relevant. One such instance is the concrete recycling plant. As construction activity rises and the threat of pollution grows, concrete recycling plants are emerging as an effective solution to prevent pollution caused by wastage of concrete.

 

Almost all developed countries now mandate treatment and reuse of leftover concrete. However in India the chief practice so far has been to either dump the concrete. Besides unused concrete, vacant land or water bodies also often become targets of people dumping debris from the construction and demolition (C&D), both polluting land and water resources.

 

But the situation is gradually improving with heightened awareness and regulatory support to create more environment friendly construction practices.

 

Recently the Bruhat Bengaluru Mahanagara Palike (BBMP) decided to set up plants to process and recycle the C&D waste. BBMP is planning to install three construction waste and debris recycling plants on the outskirts of the city which will be able to process almost 750 tonnes of C&D each per day, totaling to a total capacity of 2250 tonnes per day. The project follows the June 2012 guidelines from the Urban Development Department (UDD), Union of India, for all cities above the population of 10 lakh, to set up C&D waste processing plants. Currently only New Delhi has a functional network of such plants and there is one coming up in Pune. As per the tender notification, those who manage the plants would also be responsible for collecting the construction waste from the site within 48 hours of the developer or builder booking a slot, either online or over the phone. To enable this, the builders will have to submit the debris management plans beforehand.

 

Speaking in an interview, Subodh Yadav, Special Commissioner, (solid waste management) of the BBMP, said, “While in many cases, C&D waste is reused at the site to refill pits and level land, the bulk generators are either free to give the waste to the recycle plants or dump them in the six stone quarry pits that will be notified soon,”

 

Recently the Maharashtra government has come out with a pollution control notification that states that any ready mix concrete plant in Maharashtra cannot work without a concrete recycling plant. So soon Mumbai will see this in practice at all RMC sites.

 

Other states like NCR and UP have also said that pollution should be minimum and the industry is hopeful that soon regulations will follow, which can create more demand for concrete recycling products.

 

According to Anand Sundaresan,  Vice-Chairman & MD, Schwing Stetter India., Concrete recycling plants can be installed at RMC plants whose overall concrete production is above 10000m3 per month. “Generally whenever a truck delivers the required concrete at a site, there is always some residual concrete left. So here, a little water is added to the truck mixer to keep the concrete from solidifying and it is brought back to the recycling plant at the RMC site. The recycling plant breaks it down back into aggregate, cement and water slurry, which can be all reused in the manufacture of the next batch of concrete. Plus the water slurry acts like a good binding agent and imparts added strength and life to the concrete.”

 

“In some countries where they have too much slurry, they also employ a method called filter press where they filter the excess cement particles out and reuse the water. So with this system, you not only eliminate the problem of effluents, but also save precious resources like water and other raw materials. Also as manpower becomes more expensive, reliance on machines like these will be more profitable in the future. Because they are not only more efficient and safe, they also waste less and pollute less compared to the their human counterparts.”, V.G.Sakthi Kumar, MD, Schwing Stetter Sales and Services Pvt Ltd added.

 

Companies like Ultratech and Birla Shakti have already been setting up concrete recycling plants at their RMC plants for some time now. Other like JK Lakhsmi and Godrej are following suit. Also all green building ratings especially ISO ratings now insist on installation of concrete recycling plants at the RMC plants.

 

Conclusion

Besides the growth in real estate and infrastructure the market is fast maturing to understand and appreciate the benefits of going in for RMC. Efficiency in production, waste reduction, savings in both time and costs and low inventory requirement is reducing the total project expenditure and with time more and more developers are now insisting on RMC.

 

The future looks bright!

 

 

 

RMC PLAYERS

  • ACC
  • Godrej Construction
  • Lafarge
  • Larsen & Toubro
  • RDC Concrete
  • Putzmeister Concrete Machines
  • RMC Readymix India
  • Schwing Stetter
  • UltraTech Concrete



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