PEB can be made even more affordable by value engineering in terms of design, says Priyank Patel, Director, Alpha Nippon Innovatives Ltd in an interaction with EPC World
The market of India is cost sensitive and the initial higher cost barrier is one of the reasons for lower uptake of prefab technology. Do you think PEB construction can be made more affordable?
Affordability is a relative term. PEB will be cheaper when we take into account the early Return on Investment because of faster completion of PEB as compared to RCC. Currently prefab structures are less priced because of recent trend of drop in steel prices. PEB is a volume based business. When the volume of project is large, the economy of scale works and gives a cheaper production rate. This leads to a more affordable rates.
PEB can be made even more affordable by value engineering in terms of Design. Design optimization will lead to less consumption of steel and ultimately reduce the PEB cost. We use Corrugated beam technology (sinusoidal web) which is much beneficial to bring down the cost of PEB when the clear span of the building is more than 30m. In our case, robotic welding and “No scrap” concept gives a fast production and again helps in bringing down production cost.
The new Government is putting lot of emphasis on infrastructure projects. Against this backdrop, how do you visualize industrial PEB market in India?
We anticipate that PEB market is likely to grow at much higher pace. Currently also we see that there is surge in number of inquiries having large size PEB projects. All levels of PEB companies whether small or large, are able to get sufficient business today if they are ready to meet deadlines. We feel that Government giving clearance to infrastructure projects gives business opportunity to all levels of PEB companies. Large PEB companies which are overloaded now a days sublet their work to small players.
PEBs market in India is now experiencing a demand shift to new applications like airport, metro station etc. What it means for PEBs market? What are your latest value additions in this?
Not all PEB companies intend to work for applications like Airport, metro etc. Such projects require key resources starting from design, detailing, production of special members, etc. which cannot be catered by all PEB players at competitive prices. Such projects amount only few percentage of total PEB market. Also execution of such projects required higher liquidity in the hands of PEB supplier owing to weaker payment terms of tender. Such projects are specifically targeted by very large scale PEB companies.
With regards to safety and eco-friendly features, how does PEB compare with conventional building materials?
Steel is lighter in weight compared to RCC and hence draws less earthquake forces. Steel is safer and also recyclable.
What are the key challenges in the industrial PEBs market of India?
Key challenges include shortage of skilled manpower and intense competition with site fabricators. With so many PEB companies in the market, It is difficult to find welders as well as erectors. This leads to delay in completion of projects and ultimately hits profit margin of PEB supplier due to delay penalties.
Could you tell us some of your recent projects?
We have successfully completed 4 exhibitions sheds in Vibrant Gujarat project all together 2 Lac square feet area. All were made from Sin beams (Corrugated web). We also bagged an order for supply and erection of 10 lac square feet logistics warehouse proposed in Kheda, Gujarat. This will be also with Sin beam rafters.
What is your future strategy?
Today we are the only company in India to manufacture Sin Beams. Our key strategy is to become a distinct player in Indian PEB industry who can offer a light weight PEB by using Sin beams.
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