PEMBs, a total steel building package for Indian construction

The advantages for its easier, faster way of constructs and eco-friendliness have made PEMBs as a viable option for the future Indian construction.

Without exaggeration it can be averred (PEMBs) have created a revolution in the construction industry especially in the mega structures and massive infrastructure arena. The Indian PEMB market is experiencing robust growth fuelled by infrastructure development and the increasing popularity of PEMB systems in the industrial sector. Sectors such as automotive, power, logistics, pharma, FMCG, and capital goods provide huge growth opportunity for PEMB in the country.

An important factor that is triggering the success of PEMBs has been cost saving on overall project due to light structures and reduction in overall duration of the project. With latest technology in manufacturing and erection of steel structures, duration of project can be cut down drastically. The other key advantage is the flexibility in construction as PEMBs are easier to expand, erect, and relocate. Steel being highly durable, the life cycle cost of PEMBs is significantly low and easier to maintain.

Acceptance is slowly catching in

Yes, PEMBs bring in cost savings, return on investment, quicker delivery, faster installation, single source responsibility, low maintenance, flexibility in expansion, earthquake resistant and superior quality that have become vital for any type of project. Consequently, manufacturing sector has benefitted the usage of PEMBs in industrial construction and its usage has grown in construction projects across various verticals.

Frost & Sullivan, a marketing research firm that keeps a tab on the growth of PEMBs market and other relevant domains finds that the PEMB market earned revenues of Rs. 52,970 million in 2012 and estimates this to reach Rs. 1,36,120 million in 2016, growing at a compound annual growth rate (CAGR) of 26.6 percent.

Robust growth in the revenue and growing customer base by several companies in the PEMBs domain is a testimony to this escalation. Several leading PEMB firms in India have augmented both in terms of revenue and customer base.  A short time ago, PEMBS Pennar bagged orders from Renaissance Infra Realty, Mahindra Gears & Transmissions, SS Developers, RT Exports, Oriental Aromatics, Volvo India, Brattle Foods and other MES projects worth Rs. 50 Crore, for design, manufacture, supply and installation of pre-engineered buildings. “With these additions to the list of customers of PEMBS Pennar, it is proving itself as a trusted supplier of pre engineered buildings and is pacing towards the pinnacle in the PEMB industry,” says a spokesperson from Pennar Engineered Building Systems Ltd. 

Recently, Era Buildsys Limited has bagged a project from TBEA Energy in Gujrat requiring more than 8200MT steel scheduled for record completion in seven months from drawing approval to erection. The firm attributes growth to its domain knowledge coupled with IT adoption in the system like ERP system to integrate all functions of manufacturing the PEMB components resulting in shortest possible deliveries with quality and accuracy. "Innovative technology coupled with latest design software has been the driving factor for the growth.  As a result we are seeing innovative architectural views of  industrial and commercial buildings now possible in PEMBs and  drastic cut down in the completion time of complex PEMBs including high rise structures," says Amit Bharana, chief operating officer of Era Buildsys Limited. He further adds, "Also with more experience and exposure, we are able to do complex structures in PEMB which was once unthinkable of in India. We have a large talent pool of experienced design engineers and draftsmen, who are able to turn architectural ambitions into reality."

Awareness of PEMBs promoting the growth

In the past, usage of PEMBs was restricted and this was mainly due to the lack of awareness on the benefits of using PEMBs. The demand and awareness level of PEMBs have grown multifold over the last five years. The steel used for PEMB is light weight and recyclable leading to the best choice of material of construction. PEMB steel building are easier and faster to construct, are eco-friendly in nature when compared to conventional buildings.

  PEMB manufactures are now gearing to meet the growing demand by modernizing their facilities with high precision technologies and equipment. They also have the financial capability (to expand both in terms of geography and manufacturing capacity) as the customer's awareness is growing about the advantages of using sustainable solutions required for green buildings is on the rise.

As the Green Buildings trend is getting popular in major cities like Mumbai, NCR, Chennai, Bangalore, Hyderabad etc. focusing on the eco friendly buildings in industrial, residential and commercial sectors would assist the industry to earn new customers and thus better growth.

Undoubtedly, following the relevant codes those are necessary while designing PEMBs have also supported the intensification of PEMB domain. This helps firms to meet the industry standards. For instance, MBMA (American codes) codes are optimized thus providing light weight and economical building to the customer whereas IS codes are stringent and mostly followed by public sector clients in India.

Kirby's buildings are designed as per the international standards in norms with AISC, AISI, MBMA, BIS, AWS, IBC and BS as per the customer's requirements as all the buildings are totally customized. Software plays a crucial role integrating PEMB designs. For players such as Era Buildsys, it has all been possible due to cutting edge technology like ERP system to integrate all functions of manufacturing the PEMB components resulting in shortest possible deliveries with quality and accuracy. At PEMBS Pennar, the complete design and detailing process is carried out using the sophisticated software. Our software asset includes Auto CAD, STAAD Pro, MBS, Stru CAD, 3D Max, Tekla X-Steel. Whereas, Kirby uses specifically developed software packages for design and detailing of PEMB structures, in addition to the standard packages. This proprietary software ensures that the designing and detailing activity is totally computerized and customers can get an accurate and speedy response.

Skilled manpower may shadow the future growth

Even though India is witnessing a moderate growth, yet, a few hurdles are hobbling the future of PEMBs.  Fluctuating steel prices may not affect the growth of PEMB in India. Shortage of skilled manpower is one of the most significant problems that the industry is facing today, which may however be attribute to the low penetration levels of PEMB in the Indian market. This has compelled many PEMB companies to hire skilled workers from neighboring countries such as China, Malaysia and Indonesia. Another significant challenge the Indian PEMB companies confronting is the acceptance among the corporate segment which is still very low when compared to developed countries.

Undeniably, the penetration of PEMB in industrial sector is increasing fast and is in the advanced stages; however the usage of PEMB in power plants is yet to take wings. This is due to change as the increasing awareness and change in mindset of the customer from structural steel to PEMB steel and change in preference from on-site to workshop delivery model will propel its use, according to the Environment & Building Technologies Practice, Frost & Sullivan

Yet, opportunities at galore

The total structural steel buildings market in India was around 5.0 to 5.5 million MT in 2011, of which around 9.5-10 percent i.e. 537,176 MT accounted for the PEMB market in India. It is expected that the market in terms of volumes will reach 900,000 MT by 2016, growing at a CAGR of 11.1 percent, according to Frost & Sullivan. For such a huge growth the Government of India contributes to a greater extent as it has set a massive target for developing infrastructure in the 12^th FYP (2012-17) at an estimated cost of Rs. 40,900,000 million, of which nearly 33-34 percent have been allocated for the power sector, with an additional target of 90,000 MW. Currently the thermal power capacity stands at 140,976 MW, with the proposed capacity addition of 50,000 MW during the 12th FYP, it will provide huge growth opportunity for PEMB in this sector.

PEMB is the ideal solution for low-cost housing on a large scale basis mainly because of low cost, faster installation, earthquake resistance, aesthetically appealing, lighter sections, faster utilization and lesser manpower requirement as the availability of affordable housing in adequate numbers is one of the greatest necessities of urban India. Heavy engineering applications that include commercial building, high rise buildings, shopping malls, multiplexes, power plants and airport terminal buildings and residential buildings is another opportunity that will grow rapidly in the coming years. "In order to meet these requirements, Kirby has already come out with a separate strategy to give a special focus on these segments and make inroads into these unexplored territories by the PEMB industry similar to the way where Kirby explored many unknown areas and laid a foundation stone for other PEMB players to venture into those thereby enhancing the PEMB market and giving the industry a new lease of life which was beyond its barriers and was never heard in any part of the world," says a spokesperson from Kirby Building Systems India Ltd.

Firms are gung-ho with new plans

With its outlook for the PEMBs market, Frost & Sullivan states that the commercial building sector in India is estimated to reach a target of 20.44 billion square feet by 2030 from 7 billion square feet in 2010. It is expected that nearly 34 percent of 2030 target had already been constructed and about 66 percent of the building stock is yet to be constructed. With manufacturing activity increasing in the last few years, logistics has gained equal importance in order to provide better goods at lesser cost. It is also observed that India has around 7500 cold storage facilities with a capacity of 35.0 million tons. The addition in capacity to the cold store and warehousing would also trigger the PEMB market in India.

Exploring new opportunities to maintain its sustainability and growth is a key factor. In this kind of scenario, PEMBS Pennar is entering into new segments, finding new opportunities, developing new products and surveying new geographies. Pennar Engineered Building system is diversifying itself into new markets such as high rise buildings, cold form structures, industrial racking systems and solar structures, according to Mr. Harsha.

To meet the escalating demand both in residential and commercial spaces, construction of high rise buildings is the only viable option. In this scenario, Kirby is planning to venture into this segment in near future as it is expected to provide very high volume of business in coming years owing to the shortage of homes which is expected to grow at rapid pace. Due to increasing urbanization with a considerable Indian population expected to live in cities in the coming years. Thus, PEMB will emerge as one of the preferred building solutions for both residential and commercial segments in near future.

Metro rail systems to run PEMB market

Opportunities are likely to be amplified from the infrastructure sector as a result of several projects such as modernization of railway stations at key cities and metro rail projects. With the onset and speedy progress of the Metro rail system in the next 10 years, the scope of PEMB is immense. Increase in technical competence plays a crucial role, and many market participants have introduced high-grade steel conforming to ASTM Grade 50 steel (light weight and recyclable) without compromising on the product quality, which attracted many customers to pay high prices for quality jobs. The heightened emphasis on green building construction is also poised to push market expansion. For instance, to increase energy-efficiency, many PEMB manufacturers have developed high efficiency windows and insulation for roofs, walls, ceilings & floors. The use of sky lights and solar panels on rooftops will meet daylight and captive power requirements, while, at the same time, reducing emissions and gaining carbon credits under clean development mechanism (CDM).

PEMBs, a viable construction solution

PEMBs form a unique position in the construction industry in light of their suitability to the needs of modern Engineering Industry.  It would be the only solution for large industrial enclosures having thermal and acoustical features.  The major advantage of metal building is the high speed of design and construction for buildings of various categories.

"Overall project cost for high rise PEMBs is much lower compared to conventional RCC technology due to light weight structure resulting in light foundation. There is also cost saving due to reduced project duration vis a vis RCC structure. Fluctuation in cement, bricks prices also add to the uncertainty of RCC project cost compared to PEMB project," adds Mr. Bharana. PEMB is a total steel building package that is delivered to site from a single source as a completed product and is ideal for fast and cost effective growth of infrastructure in India where increasing number of sectors are looking at PEMB as a viable construction solution. Thus, usage of PEMB is definitely expected to increase across the country and the industry is expected to flourish in the coming years.

EOM

Box item: Salient features of PEMBs

Low Project cost due to the reduction material and labour cost. Faster construction by prefabricated panels. All structural components are precisely pre-manufactured and simply assembled on site. Easiness in erection due to light weight. Chances of Progressive collapse are marginal. Quality of construction is guaranteed as PEMBs do not expand or contract with moisture content, nor shrink, creep. Enhanced Thermal & Acoustic insulation with Boarding/Expanded Polystyrene (EPS) /Rockwool/Vapour Barrier. Reducing HVAC load by up to 10 percent. PEMBs are friendly with Indian Climatic conditions. Minimum Impact on natural resources i.e. Wood, water etc. Lesser carbon foot print for pre & post construction

Source:  Sales & Marketing Department, Structural Steel Division (SSD) of Jindal Steel & Power