Interviews

R Infra: Transparency and Technology ar...

Sudhir R Hoshing
For RInfra, budget 2014-15 offers many good initiatives to revive road sector and uplift investors' interest. Mr. Sudhir R Hoshing, CEO – Roads Business, Reliance Infrastructure Ltd. in an interview with S.A.Faridi wished to see that all the initiatives taken by the Government should see light of the day and have positive impact. To revive road sector and to uplift investors' interest, he has given several suggestions including involvement of government and NHAI to settle issues related to huge amount that stuck in dispute and whose settlement will bring equity back in the hands of developers. He desires to see progress on ground in policy, processes and more importantly in mind set of the bureaucracy. He believes that Transparency and Technology are keys to Government being able to achieve its targets.

How do you see the budget 2014-15 for infrastructure sector in general and Road & Highways sector in particular?
The Govt. had just been formed and expectations from it were realistically not high although there was euphoria. Budget allocation to roads of Rs.37,880cr is not high rather it is a normal allocation. However, there are good initiatives in the budget like:
  • Easier reserve requirement from banks for infra funding (no SLR for bond raised for infra) and long tenure loans for upto 20 – 25 years
  • Setting up Infrastructure investment trusts
  • Investment in port capacity augmentation
  • Setting up institutions like 3P India for looking into public private partnership issues & vision to set up national industrial corridors.
However, these are broad visions. We need to see that these initiatives see light of the day and have positive impact. Initiatives of previous government like take out finance, credit enhancements and Infra debt funds have hardly helped sector. Finally, private corporate and financial institutions should be comfortable committing equity in the sector.

The Finance Minister has proposed to award 8500 kms of roads in this fiscal. How confident are you about this proposal and how do you see the business opportunities for Reliance in coming years?
The target of 8500 kms as of now appears unrealistic. We are already nearing half year of completion. Getting back sentiment in road sector will take time. To kick start the cycle EPC has been proposed as the way forward given lack of equity. But EPC puts load on Govt. finances.

We are selectively looking at opportunities in state projects and we see good opportunity in secondary asset sale i.e. Mergers and Acquisitions (M&A) opportunities. We also have a decent order book of around Rs.2500 cr. construction works to go in our existing portfolio in next two years.

Hosur Krishnagiri NH-07

To revive road sector, what are the issues and policies which need to be resolved and fine-tuned to uplift investors' interests?
  1. Primarily, the National Highways Authority of India (NHAI) processes need to be streamlined. The decision making process is abysmally slow. A normal re-financial approval can take up to six months. Decisions on extension of time and change of scope are dealt with no sense of time even though processes are very clear cut. There is a need to bring in high degree of output and speed in the apex body of road sector. Once done, things like land acquisition and clearances will come in time automatically.
  2. Government and NHAI need to get into a mode where they agree that huge amount is stuck in disputes. If this is settled quickly and amicably, there will be equity back in hands of developers who will use it for further investment in the sector. Currently these disputes are lingering in arbitration and being challenged in courts.
  3. Banks' / financial institutions' faith in the road sector needs to be rebuilt. Projects like Delhi-Gurgaon, Delhi-Jaipur and other projects that had to be cancelled prior to commencements, have left a bad taste with banks.
  4. In the name of contractual requirement for major repairs and maintenance, capex is being forced on investors, who are already financially stressed. NHAI needs to look at maintenance more in spirit – is it really required and in which part of the project – rather than forcing to do major overlays for entire stretch. This will be an issue in next five years as many projects will hit the contractual maintenance requirement.
The hon'ble Minister for Road Transport, Highways, and Shipping Mr. Nitin Jairam Gadkari in his recent interview with NBM&CW has claimed to construct 30 kms of roads per day after resolving all issues within two years. What is your take on the same?
It can be done and would have a positive impact. However, for a two-year plan to succeed there has to be monthly progress on ground. We would love to share the optimism and vision of the new Govertment. However, we need to see progress on ground in policy, processes and more importantly in mindset of the bureaucracy. Technology and transparency are keys to government being able to achieve its targets.

For a successful project completion, mechanization with innovative equipment plays a vital role besides many other things such as planning, financing etc. How well equipped is your equipment bank and what are the selection criteria placed in your company while buying new and advanced equipment?
All companies today want to be asset light. Hence leasing, hiring and contracting of equipment are crucial. The selection criteria essentially are how old equipment is being used by the contractor and whether the equipment is environment friendly. Today banks are very stringent on environmental aspects. Hence our equipment should not just operate under stipulated environmental norms but also adhere to Global standards. In one of our projects, a development bank expects us to go beyond Indian regulations and follow global standards.

R Infra Hosur Krishnagiri NH-07

Lots of innovation is possible in materials being used and construction technology. Again government departments should be open to these innovations. Typically innovations help optimize cost – and government officials are apprehensive that by allowing cost optimization they are compromising on the contract. Government as a client should be concerned on quality of the road desired rather than the cost being incurred.

R-infra's 10 out of 11 road projects are now operational and revenue generating. Foreseeing opportunities in Road sector, what are Reliance's future plans? How many projects/length are you targeting? Are you keen on BoT or EPC projects?
Our targets are aligned to benchmark return expectations rather than order book. We are focused on bottom lines rather than increase top line at the cost of profitability. We are continuously on the lookout for opportunities in BoT space which meet our return expectations.

R-infra is renowned for sustainability, innovation, and safety and has been awarded for best project management for its IT application called ‘Simplify' which is first of its kind. Could you please describe the functioning of this application and also about R-infra's other innovative solutions which have got lots of recognitions?
Simplify is an integrated work flow management tool which interfaces online with project management tool – Primavera. It helps monitor project progress vis-a-vis the plan and brings transparency to the whole exercise of project management. It has brought in:
  • Ease in entry of data with availability of visual strip chart on the RFI screen.
  • Easy navigation within the applica- tion using web based menu
  • Anywhere anytime access – Simplify can be even accessed on Mobile platform to perform day-to-day field work using any smart phone.
Other technology initiatives we are having at our projects are:

- ERMS: Enterprise Road management system. It's an online tool that helps real time control of tolling and maintenance operations. Toll data patterns over the period are captured. Auditing and reporting happen online. State of road repairs can be monitored and fed online. Accident management can also be monitored online.

- E tolling: We have systems in place where city based users can recharge monthly passes online through net banking / credit cards. Also SMS reminders are sent to them when their pass is nearing expiry.

Road Infrastructure

What are the systems placed within the company to ensure that the Group's technical and managerial prowess is kept abreast with global development through training, and retraining which would also ward off the the challenges of obsolescence?
Training is a strong focus area for us. While we keep tab on global developments, we focus on internal knowledge transfers – eg. lessons learnt in implementation of best practices of tolling operations in one project need to be transferred to other projects in other states.

Also, cross functional training is another focus area. We are BoT developers hence we ensure our technical staff appreciates accounting and financial aspects of business – in terms of financial returns, risks and compliances.

These assets have been in use for 20 – 30 years but employee average tenure is 5 - 6 years. We strive to have good document management systems so that work flow is not affected when there is change in personnel. IT tools and ISO systems play a big part in this.

NBMCW September 2014

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Maitreya Realtors: A Success Story of W...

Varsha Satpalkar
Founded by late Madhusudan Satpalkar, Maitreya group's mission revolves around values of true friendship. It aims to empower lives and collectively build value, create wealth and deliver satisfaction. In an interview with Maria R, Ms. Varsha Satpalkar, CMD, Maitreya group of companies narrated the group's eventual journey saying, "My husband late Madhusudan Satpalkar had a dream to provide employment to unemployed youth and to turn his dream into reality, he had to struggle a lot as neither he was financially sound nor technically skilled. But with his strong will power and firm determination, he overcame all hindrances and since then Maitreya group started growing at a steady pace with 6-7 business ventures. But in 2003, again a major setback came and I lost my husband to a cruel stroke of destiny. Till then, all our business verticals were in nascent stage. And apart from dealing with a big personal loss, I had a challenge to turn his dream of Maitreya into reality. So, I took over from where he had left. And eventually, I learnt that strategy of selling is almost same everywhere. You will have to have marketing skills to make business successful. I acted accordingly and then a success story by name Maitreya was written."

Please introduce Maitreya Group to our readers, its various business verticals, and vision. How eventful has the company's journey been so far to come to the current stature?
Maitreya group was founded by my husband, late Mr Madhusudan Satpalkar who had a dream and passion to provide employment to unemployed youth. Our group's mission revolves around values of true friendship, and aims to empower lives to collectively build value, create wealth, and deliver satisfaction.

Maitreya Group has 10 business verticals, right from plotting to realtors and hospitality industry to publication and mass media. C.S.R. activities are also undertaken by Maitreya foundation. Mr Madhusudan Satpalkar had a strong belief for the upliftment of the society and so since then we have been working relentlessly towards that goal through our Maitreya foundation.

In any business, journey is always eventful...In our case, it was more eventful for many reasons – firstly my late husband, Mr Madhusudan Satpalkar, who founded this group, had vision, and marketing experience but he came from a very middle class background, so neither did he have money nor any godfather. Also, he didn't have any proper business education. But he had a dream to follow for that he struggled a lot. He overcame all the hindrances. His dream started turning into reality, we were all happy to see Maitreya grow at a steady pace. But in 2003, we got a major setback. I lost my husband to a cruel stroke of destiny. Till then, he had started 6-7 business ventures. They were all in nascent stage. And apart from dealing with a big personal loss, I had a challenge to turn his dream of Maitreya into reality.

Till my husband's death I was a mere housewife, who was busy looking after my 5 years old daughter. I didn't have knowledge of any business. I didn't have any business education, I didn't know about markets, but wanted to fulfill my husband's dream. So I took over from where he had left. And eventually, I learnt that strategy of selling is same everywhere. You have to have marketing skills to make business successful. I acted accordingly and a success story by name Maitreya was written. So in all it was a very eventful journey, which has taught me many things.

What is the core competency of your group's business to give customer utmost satisfaction?
High level of commitment, no compromise on quality and trust are the basic business ethics that we follow for customer satisfaction. Timely completion and delivery is the key to our success. At the same time, we keep a track of what is new in every sector that we are in. We adapt to the changes, we go with the new, and most importantly, keeping in view or rather visualizing the problems that may raise their head 10-20 years down the line.

Maitreya Greens Nashik

A word about Maitreya Realtors and its notable commercial, residential, and hospitality projects and their USPs.
Maitreya Realtors is a construction arm of Maitreya group of companies. It mainly focuses on construction and real estate development of commercial, residential, retail, and hospitality properties across the state of Maharashtra and neighboring states like Gujarat and Karnataka.

Our notable residential projects are Maitreya Pandav Van, Maitreya Sankul and Maitreya Greens in Nasik, and Maitreya Sunrise in Sangli.

Pandav Van is a bungalow project at the base of Pandav Leni in Nasik, Maitreya Sankul is a 60-flats project for basically middle income group and Maitreya Greens is a township project. This project is the first project in Nashik which has clearance from Ministry of Environment and Forests (MOEF), pre-recertified Gold rating from IGBC. Maitreya Greens is a Gold Pre-certified Green Building Multi storeyed Residential tower Township having configuration of 2BHK to 4BHK apartments. The project has more than 25% open areas Ample Parking provision and provision of Club House with health club, swimming pool, indoor games, Kids play area, Senior Citizens Park.

The other prestigious project is Maitreya Sunrise in Sangli. The project is located on the main Sangli – Miraj road opposite to Bharti Vidyapeeth. The project is spread over 1.5 acres of land and it comprises of 73 commercial and 62 residential units.

We are also in the plotted development with our projects in Vadodara known as Maitreya Paridiso – we have initially launched 5.00 lac sq.ft area with all modern amenities and of various plot sizes from 800 sq.ft to 3000 sq.ft. Our other upcoming projects in the plotted development are in Bhuj (Kutch) / Vikramgadh Near Manor.

In the residential sector, we are looking to expand in Nagpur and Aurangabad where the projects are in planning stage. In MMR region, we have a high end residential project coming up in Khar and a large scale development in Ghokhivare (Vasai), which are in the approval stage.

Maitreya Pandav van

Greenness is very much in vogue and has rather become a necessity. But, the cost of building a green structure is high and it pushes the overall project cost upwards, which in turn is passed on to the buyers. How are you synergizing these two aspects?
This is a wrong notion. Though you may find that cost high initially. In long term, it proves to be cost-effective. So, I don't subscribe to such negative publicity. In fact, I think that looking at the future, and keeping in mind the erosion of green cover, we need to turn to green building concept, green architecture for safeguarding our future generations.

A green building is one which uses less water, optimizes energy efficiency, conserves natural resources, generates less waste and provides healthier spaces for occupants, as compared to a conventional building. Essentially it's a matter of calculating the holistic lifecycle cost which for a green building will always be lower.

How do transparency and ethical business practices (right from conceptualization of a project to selling) help builders and end-users?
Transparency and ethical business practices help a lot to both builders as well as customers because they bring an element of trust in their relationship. That is our experience. Right from conceptualization, we follow that. Before getting 7/12, we don't go for planning. Before getting all permissions, we don't move forward. We follow DCR, all rules, so in our case, questions of legal as well as liasioning never arise. We always ensure that we have all the statutory and regulatory compliance in place for each stage of the project.

Maitreya Sankul

In the current financial crunch, banks are quite reluctant to finance projects. How are you managing your operations in such a scenario?
We take private funding or support from our group companies.

In your constant endeavor to broaden horizons and excel your selves; is your group planning to spread its wings in other cities or states?
Yes, we have already spread our wings to our neighboring states like Gujarat, Madhya Pradesh, and Karnataka.

How do you see the growth of real estate sector in general and your housing & construction business in particular after the formation of new government? What are your expectations from the govt.?
This government is very new, but I liked their policy of developing small townships on the outskirts of main cities. Houses for poor are a very noble scheme. This policy of developing small city like establishments will ease stress on big cities, especially on their infrastructure. Secondly, developing such small cities means developing infrastructure there. This will utilize land to the maximum and at the same time, will generate employment for many. This will help the economy. Though it is now at planning stage, we will be able to see its coming on ground later. It is Modiji's expertise. If we talk about our company, we have land banks in most of these cities. So we will be active participants in this. And where we don't have land banks, we will enter in J.V. and work on that.

NBMCW September 2014

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Preparations in Full Swing for the 3rd ...

Igor Palka
"The preparations have picked up pace for bC India as it is coming closer in big steps. We expect around 700 companies to participate at the 3rd edition of bC India 2014. We will be again welcoming exhibitors from more than 30 countries worldwide including national pavilions from China, Germany, Italy, Korea, Spain, U.K. and the USA. With theme 'Quality makes the Difference' in mind, I would like to underline that bC India has developed into one of the most important business to business trade fairs for construction machinery, building material machines, mining machines and construction vehicles in the Middle East and India after just two editions," says Mr. Igor Palka, Chief Executive Officer, bC India, in an interview with S.A.Faridi.

After feeling the heat of economic slowdown in the last few years, there is a hope of new dawn in India's market growth with the formation of new government at the centre. What is your take on this?
Post Budget 2014 presented by the new government, there is definitely a boost in the market sentiments. Apart from other sectors, the Indian Infrastructure and Infrastructure development sector too are pegged for growth. In fact, NDA's manifesto had mentioned the word 'infrastructure' many times and the 41-page-long document promised to give the sector a required boost. Perhaps the biggest focus of the budget is in reviving the infrastructure sector. The finance minister has approached this issue from a number of angles. By extending the 80 IA tax benefit by three years, government has provided tax incentive for investment in the sector. Such steps will only help the sector grow and display its true potential while making way for the growth of other sectors such as manufacturing, logistics, and housing while providing a boost to job creation.

bC India is coming at a time when the industry's sentiments are firming up due to new government's commitments toward infrastructure construction which is clearly reflected in the first budget of this government; how do you see this positivity for construction equipment market in India in general and bC India in particular?
There has been an increase in investment in the Infrastructure sector by Indian companies in view of an expected growth in the Indian economy, plans of executing larger public works and removing road blocks for Infrastructure development in the country. The encouraging signs for Industry and the message from the government seem to be having a positive effect for those participating in the bCIndia 2014 edition to be held in Delhi this December.

bC India

What has been the consideration in relocating bC to Delhi? How are you visualizing and anticipating its positive impact on the participation and business?
Delhi in winter is pleasant and will provide the perfect ambience for the event. The city boasts of good infrastructure, the metro to Noida and the expressway makes it accessible from all pick up points. Airports, Railways and the Metro keep the venue easily accessible. The fact that it's the Capital thus the hub for all policy- makers, decision-makers, government bodies and bureaucratic community. Hence see a great opportunity for the Construction Equipment sector to come in full strength to be seen and recognized for their true potential. bCIndia expects that 2015 will usher in the true scale of Indian Infrastructure and Construction Industry, one more reason why to be present at bC India by the end of this year.

How are the preparations of the show going on and what are the innovative steps being taken this year to make the show notable by bringing unexpected opportunities and opening new business vistas for the participants?
The preparations definitely picked up in pace and the event is coming closer in big steps. The new target group of North India will certainly add value, as well as the modern exhibition centre in Greater Noida. In addition to its favorable climate, Delhi is easily accessible from abroad as well as from within India. More highlights will be added by our exhibitors who will again show their newest product developments and new machinery launches along with a fantastic and broad accompanying program.

Could you please share the expected number of exhibitors and visitors, space earmarked for the show, countries' pavilions' participation, and other related information with us? What about the confirmed participation you have received so far?
We expect for bC India in December 2014 around 700 companies to participate. Looking at the ratio of our past events, we have welcomed 40% Indian headquartered companies and 60% foreign headquartered companies. This year, we will be again welcoming exhibitors from more than 30 countries worldwide including national pavilions from China, Germany, Italy, Korea, Spain, U.K., and the USA.

How are you promoting the show to attract visitorship from all over the country especially from South where most bigwigs have their hubs? Are you also planning to attract the visitors from South Asian countries?
We are promoting our show wherever we can, at domestic as well as at international shows like bauma, bauma China in Shanghai or the CONEXPO-CON/AGG in Las Vegas.

bC India 2014

Moreover, we will conduct road shows all across India in the upcoming months to raise even more awareness of our event. The interaction with the media and press will definitely play a very important role to convey our key messages and attract more visitors to Greater Noida, where we of course will provide a convenient shuttle service for all the attendees. Last but not the least we will increase our presence online and contact new exhibitors and visitors through the new modern channels.

What is the theme of this year show and related coinciding events like conferences and CE industry meets etc?
Keeping our theme 'Quality makes the Difference' in mind, I would like to underline that bC India has developed into one of the most important business to business trade fairs for construction machinery, building material machines, mining machines and construction vehicles in the Middle East and India after just two editions.

The full range of products will be exhibited at bC India 2014, the main categories will be: All around construction sites, mining, extraction and processing of raw materials, production of building materials and component and service suppliers. These generally cover all sections for the equipment segment and will be presented by numerous international as well as domestic key players of the industry.

How does event like bC India help in bringing and disseminating the information of the advanced and innovative products and technologies at one platform, thus raising the technological status of the CE industry?
We plan to increase the quality of the show by not only adding a high quality supporting program with different kind of presentations, panel discussions and training sessions, like for example health-and-safety workshops or training sessions but also talking about emerging markets and how the innovative products of our exhibitors can be beneficial for other markets. I am sure that our supportive associations will again contribute and hold interesting and well-casted seminars parallel to our exhibition wherein the technological status will be discussed in detail, whereas the exhibiting companies will display their newest product launches.

For the success of mega exhibition like bC India, support of local agencies is very essential for things like security arrangements, smooth regulation of traffic flow, effective transportation, accommodation, etc. How are you getting the support from Delhi local agencies to ensure these arrangements?
So far the support is very good. All bodies with whom we speak are very open to support and help us with our event. Some associations will support us in the events program, some with a joint pavilion, and some by promoting the exhibition. The local agencies and authorities know about the size and importance of our event and help us wherever they can. You can convince yourself by the end of this year !

NBMCW August 2014

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RMCL: A Master in Cleaning Equipment Ma...

U K Arun
"The cleaning machines made by RMCL are designed and manufactured, keeping the Indian environment, dirt level and the operator's mindset in mind. Our machines are robust, durable, serviceable and user-friendly. Apart from manufacturing a spectrum of Cleaning Equipment, we are also importing Cleaning Equipment from leading international brands like Hako, Germany, Powerboss and Minuteman from the US, Delfin, TTS and Soteco from Italy. As the specialized cleaning equipment market in India is growing steadily with the new government's top agenda on 'cleanliness & Sanitation' for sustainable growth, we are confident to have a huge market share which will help us to continue to be the market leader," says Mr. U.K.Arun, General Manager - Sales, Roots Multiclean Ltd in an interview with Maria R.

Roots Multiclean Limited (RMCL) is today known as the largest manufacturer and exporter of cleaning equipment in India. Can you please brief us on RMCL growth story by touching upon important milestones to reach the position where the company stands today?
Roots Multiclean Limited was founded in the year 1992 by one of Coimbatore's Leading Enterprenuers, Mr.K. Ramasamy. Mechanized Cleaning was not heard of at that point of time when Mr.K. Ramasamy had the vision to start a company to manufacture Mechanised Cleaning Equipment. RMCL joined hands with Hako Werke of Germany and the products manufactured by RMCL were sold under the brand Roots Hako. The market for cleaning machines was very limited and it was tough going for many years in the beginning. The cleaning industry was highly labour oriented and housekeeping activities were handled by the industries, institutions and corporate houses themselves. Later the concept of outsourcing and the mechanisation emerged in India, bringing in a new recognition for Roots Multiclean Limited.

RMCL Wizard
Flipper was the first machine that was developed by RMCL and all the other machines were imported from M/s Hako, Germany and sold. Slowly and steadily RMCL started manufacturing various types of Sweepers and Scrubbers. Today, RMCL manufactures almost 25 models for the local market and 10 models for export market.

The following are the milestones in RMCL Exports:
  • 1994 – Flipper was exported to Australia
  • 1995 – E-430 exports began to Germany
  • 1999 – Wizzard exports started to UK
  • 2002 – E 350 Scrubber drier exports started.
RMCL started to establish its branch network in the year 1997. Today it has 13 branches and 6 dealers covering the whole Indian market. RMCL has a strong service team attached to each of its branches on a pan India basis.

What are the complete range of cleaning solutions in your basket and the industrial segments being catered to by Roots Equipment in India?
RMCL FLIPPER
Roots Multiclean Limited manufactures Mops, Walk behind Floor Sweepers, Walk behind Floor Scrubber Driers, Ride on Scrubbers Driers, Ride on Sweepers, Carpet Care machines and Road Sweeper machines. They also import and sell Cold and Hot Water High Pressure Jet Cleaners, Steam Cleaners, Professional Vacuum, Industrial Vacuum Cleaners and Janitorial Tools.

The machines manufactured and marketed by RMCL are operated in various types of industries including Automobiles, Steel Plants, Process Industries, Electronics Industries, Hospital, Hotels, Shopping malls, Community housing areas etc to name a few.

What is Roots technological edge over competitors? Also please tell us about the quality control systems placed at RMCL to ensure that products don't belie the expectations of users.
The strength of Roots is its core competency in Engineering Design. The Cleaning machines made by Roots are designed and manufactured, keeping the Indian environment, dirt level and the operator's mindset in mind. The machines are robust, durable, serviceable and user-friendly. After Sales Service and Spares support are the company's USPs. The material used for the manufacture of parts and the components used in the assembly are of the highest quality standard and undergo strict quality control checks before being issued to the Assembly. The company is certified for ISO 9001:2000, ISO 14001 : 2004, ISO 18001 : 1999. The machines so manufactured are subject to rigorous endurance test before being allowed to be shipped to the customers.

Please brief us about your joint venture arrangement with Hako Werke, Germany.
Roots Multiclean Limited has a Joint Venture with Hako Werke, Germany and Hako Werke has a 26% equity stake in the company.

After spreading its wings across the country, RMCL partners with several global well–known specialized manufacturers of cleaning equipment and represents their brands in India. Please tell us about your all partnership and their offerings catering the Indian market.
Cleaning Machine
Apart from manufacturing a spectrum of Cleaning Equipment, RMCL also imports and markets Cleaning Equipment from leading international brands like Hako, Germany, Powerboss and Minuteman from the US, Delfin, TTS and Soteco from Italy. Under sales and distribution agreements from these companies, RMCL offers high-end Walk behind and Ride On Sweepers and Scrubber Driers, High Pressure Cold and Hot Water Jet Cleaners, Steam Cleaners, Commercial, Industrial and Centralised Vacuum Systems to the Indian Market.

A word about your marketing and after-sales service network that enabled the company to deliver optimum solutions for customer's cleaning needs.
Cleaning Equipment
The Marketing organization of RMCL has a clear hierarchy with a smooth and practical operational protocol. The Marketing network of RMCL is divided into 4 Zones and handled by efficient Zonal Heads reporting to General Manager – Sales and General Manager – Service for Sales and Service respectively. RMCL has trained, knowledgeable Sales and Service team capable of meeting varying customer expectation and offers appropriate solution in time to all the customer needs. All its branches work on committed delivery dates and with a clear escalation matrix to ensure that commitments given by the company's branches for machines as well as spares are honoured at all times.

How do you look at the specialized cleaning equipment market in India in general and for your products in particular?
magicline
The specialized cleaning equipment market in India is growing steadily and the awareness on cleaning and usage of machines will help us to continue the growth.

With the new Government at the Centre proclaiming "Cleanliness and Sanitation," at the top of their agenda for sustainable growth, we expect the market for specialised machines will also grow in the emerging states in the years to come so that we will benefit out of it as well.

What are the growth drivers, which according to you will trigger demand for these equipment in coming years?
The key factors for the demand are:
  1. The clear vision of the Central Government and State Governments on Health and Hygiene and the priority for cleanliness.
  2. Awareness in the minds of Corporates, Civic Bodies and the Public and the need of Clean environment.
  3. Industrial growth.
  4. Demand for quality workplaces.
  5. Reduced manpower availability.
As the market is going in the upward direction, the cleaning industry will continue to blossom. As far as RMCL is concerned, being the largest and integrated cleaning machinery manufacturer in India, we are confident that we will have a huge market share and will continue to be the market leader.

NBMCW August 2014

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Shell: We co-engineer with Customers fo...

Nitin Prasad
Shell India Market Pvt Limited is the fully owned subsidiary of US downstream oil major Shell. The company is looking forward to leverage its business presence in off- highway construction and mining sector in the country. Mr.Nitin Prasad, Managing Director, Shell Lubricants, Shell India in an interview with P.P. Basistha spells out the details on the company's positioning to cater to volume and value based demand by product support. Excerpts:

How do you foresee the demand of lubricants (greases, hydraulic oils, engine, transmission oils) from the construction equipment and mining sector in the country? Do you find the demand both value and volume driven?
The Earthmoving and Construction Equipment (ECE) industry grew at a robust pace over the past few years (19% CAGR during 2009-2012), however, it de-grew by 12% in 2012-13. In the last year equipment sales dropped owing to a slowdown in investments, amid weak demand, and delays in execution of infrastructure projects because of land acquisition and clearance issues. But this year, we have positive news in store for the sector; an investment of `37,880 crore has been parked for roads which is up by 13% YoY, NH allocation up by 20% YoY and state road up by 12% YoY.

On the construction side, infrastructure projects are going to be the major contributor. Overall, during the five-year period from 2013-14 to 2017-18, construction investments are expected to grow at a CAGR of about 8 percent. In the industrial segment, growth in construction spends is expected to be slower, as capacity expansions in sectors such as oil and gas, metals, cement and automobiles will remain sluggish over the next 5 years.

On the volume side, as per a recent study conducted by IECIAL and CII along with Accenture, Indian CE industry has the potential to grow six to seven times—from total revenues of US$3.3 billion in 2010 to US$22.7 billion in 2020 with multiple benefits to the economy. Hence, equipment sales volume is expected to increase from over 60,000 units in 2010 to 330,000 in 2020.

Meanwhile the Mining industry witnessed a decline in growth during 2012–2013, due to lack of new projects. Due to the cancellation of the allotted mining blocks, the industry witnessed a downward momentum. However, with the ban on iron-ore mining having been lifted and firms obtaining relevant clearances and resuming production, the mining industry is likely to show an upward momentum. CRISIL foresees that in 2014-15, the GDP growth is expected to pick-up to 6.0 per cent, leading to recovery in industry on the back of higher external demand. Kline projects that total lubricant consumption in the Indian mining sector will grow from 31.2 kilotonnes in 2013 to 32.1 kilotonnes in 2018, a CAGR of 0.6%.

However, apart from the sector volume growth trends, equally important is a growing trend to focus on the total cost of ownership as companies look to increase competitiveness through higher productivity of equipment and reduced downtime for maintenance. This is also leading a shift of demand towards the more value oriented areas of the lubricants portfolio including services that can help deliver these benefits. Hence, we foresee both a growing demand of lubricants and also a shift towards higher quality lubricants and greases that reduce the overall cost.

To address both the requirements, especially the second one based on the fact that the modern engines are electronic in their entity have higher drain out intervals, enhanced combustion and lesser carbon deposits, ensuring higher availability of machines, how are you strengthening your R&D support and collaboration with the original equipment manufacturers manufacturing construction equipments? Please provide details of your engine condition monitoring support initiatives.
Taloja Plant
Shell Lubricants invests heavily in lubricant R&D which has allowed us to be the 'first to market' with a number of lubricants innovations and value-added services. We work closely with the customers to provide solutions in long-term partnerships and pride ourselves on finding practical solutions to the challenges they face. Shell delivers customer benefits through better technology which results from our 4D process: Define, Design, Develop, and Demonstrate. This systematic approach to product development combines a deep understanding of the customer challenge with applied fundamental science and an innovative approach to component selection. It invests heavily in the development of lubricants that will deliver improved energy efficiency for our customers without compromising protection in accordance with the requirements of OEMs that focuses on minimisation of total operation costs during the lifecycle of the equipment.

Shell Lubricants engages with the customers at the initial stage of product evaluation and works together towards co-engineering the best lubricant & services suiting their requirements so that optimal performance can be obtained. When a new equipment is launched either due to environmental norms or technological changes, it enforces the equipment requirements to change & Shell Lubricants works with OEMs to develop lubricants to address these.

For providing the best customized solutions to our customers, we have a host of services that we offer for example, our oil experts - Shell Lubricants Technical Advisors can make a thorough assessment of equipment and oil usage at a customer's site to recommend the right products from Shell Lubricants portfolio for maximum benefits to save on total cost of lubrication. This service is called LubeAnalyst service which identifies potential failures before they become critical. Shell's laboratories analyse samples of the lubricant taken from the machines to identify signs of increased wear, the presence of unwanted contaminants and increased rates of degradation. It helps to monitor, benchmark, improve and save costs owing to frequent breakdown of machinery. Shell LubeAnalyst then generates a report to provide a detailed analysis of the equipment. Along with the test results, it also provides a diagnosis which explains the different values and gives advice specifically tailored for the machinery. We also offer LubeVideoCheck service which inspects customer's engines and suggests on the need for overhaul/maintenance etc.

What are the new value proposition/ offerings in your lubricants for the construction and mining equipment? What are your present brand of lubricants for the construction and mining equipment sector in India? How will the value proposition minimize the total operating costs of the equipment?
Shell Lubricants
Shell Lubricants offers a wide range of products and services designed to reduce the process and equipment-ownership costs across sectors.

Apart from these, few examples of cobranded products for the construction and mining sector include Shell Putz Premium HO 68 with Putzmeister and Tellus 2HF 68 SS with Schwing Stetter. We also have a GPO with Komatsu by the name of Komatsu genuine oil.

Lubricants can have a big impact on the operations of customer's business by lowering the total cost of ownership. Choosing, using and managing them correctly can bring significant rewards in terms of improved efficiency and profitability. One of the areas where we work closely with our customers is to demonstrate to them the benefits they can achieve.

There are several other benefits that Shell Lubricants offers. To be brief they add savings on maintenance cost and savings on overhauling cost. They help to extend Oil and Equipment Life and also reduce operating costs.

What are the drain out intervals of your lubricants (engine, hydraulic oils and greases) for the construction and mining equipment?
The construction equipment sector needs engine oil, hydraulic oil, transmission oil and grease. These are the four categories of lubricants that are used in construction equipment. Traditionally, people have been using products made according to the industry standards and specification but might not be getting the desired performance.

Customers are now demanding lubricants, across all categories, with enhanced Oil Drain Interval (ODI) and fuel efficiency, due to increasing costs, hence reducing the cost of ownership.

When it comes to defining ODI's it is very subjective. Oil Drain Intervals & Re-greasing Intervals are determined by OEMs based on the specific needs of their hardware, the duty cycle and the operating environment (dust, temperature etc) amongst other things. However drain intervals can be optimized based on how these variables affect the fleet of a particular customer. This is where lubricant experts from Shell work closely with the construction and mining customers understanding and monitoring their fleet operations by a combination of specialized services such as Shell LubeAnalyst (Shell Lubricants' unique oil and equipment monitoring service) and Shell LubeVideoCheck (engine inspection service from Shell Lubricants).

To address the volume based requirements, are you adding capacities of your blending facilities. Where are your blending facilities located presently for lubricants along with the storage facilities and depots?
We have a state-of-the-art lubricant oil blending plant in Taloja near Mumbai which was established in 1997 and is spread over an area of 16 acres. The plant feeds into regional distribution centers (RDCs) to distribute to 12 depots which cater to respective geography for direct customers and channel partners. We also have third party blending facilities and a wide network of blend plants across the globe from where we source product. What is more important than the number or the location is the quality of service and reliability as a supplier that we provide. Our performance indicates that we deliver >99% of the products on time and in full (OTIF) and our monthly feedback survey indicates very satisfied customers which gives an indication that we are leading the industry in service provided.

To support the requirements of construction equipment and mining sector, how are you placed in your distribution network and strategic stock points for providing the lubricants? Are you expanding your network? What are the initiatives being taken to strengthen your brand so as to ensure brand recall.
Shell Lubricants has a very strong distribution network with a manufacturing plant at Taloja, near Mumbai which is feeding to 4 regional distribution centers (RDCs) to distribute to 12 depots catering to respective geographies for direct customers and distributors. Our distributors are well placed to cater to the consumers through retail counters. Also, the distributor network is ever evolving to reach out to more and more geographies and customers.

Shell Lubricants undertakes several initiatives to strengthen their brand in the B2B space. We organise big events at number of occasions centered around operational level implications of technology, challenges that customers are facing and how can our products provide suitable solutions to overcome these issues. For example, following the success of the first two editions of Shell's Global Lecture Series at Imperial College, London, and Tsinghua University, Beijing, Shell brought together automotive industry experts at the third edition of the Shell Lubricants Technology Lecture today in India at the Indian Institute of Technology (IIT) Madras, Chennai. Here speakers emphasised cross-industry co-engineering as the fastest route to optimising fuel efficiency in lubricants for vehicles. The event was attended by leading automotive and engineering experts in India as well as IIT Madras faculty and students.

We participate in various technology/trade exhibitions such as Excon to showcase our technologically superior product ranges and solutions. We also engage in PR activities regularly to keep the industry apprised of our new endeavors and achievements. Our other initiatives also include, Metal Technology Forum, Technology Seminars with OEMs, National Synthetics Lubricants Seminar etc.

NBMCW August 2014

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Delhi Metro Phase–III Focus on Green...

Mangu Singh
"A number of technological changes have been made in the present phase of construction by us. We thoroughly analyzed our experience in the previous phases and have tried to incorporate the changes. All the upcoming Metro stations under the Delhi Metro's third phase of expansion will be designed and constructed as 'green buildings' with specific provisions for the conservation of energy, water saving and waste management arrangements. As part of Phase III, which will be completed by 2016, the station buildings are being designed and constructed with lot of innovation focusing on eco-friendly techniques," says Mr. Mangu Singh, Managing Director, DMRC, in an interview with S.A.Faridi & Maria R.

After the successful commissioning and operations of metro Phase I and phase II, DMRC's Phase III is slated to be fully operational by 2016, how is the progress going on and will the DMRC meet its deadline?
The progress so far has been satisfactory. We have commenced work on all the proposed corridors. The three kilometre long Central Secretariat – Mandi House portion of the Central Secretariat – Kashmere Gate section was opened to public on the 26th of June, four months ahead of schedule. We are hopeful of completing all works of the Faridabad extension as well as the Jahangirpuri – Badli section by the end of this year. On all the other corridors also, progress of construction work is at peak. As of today more than 15 Tunnel Boring Machines (TBMs) and around 10 Launching Girders are operational across the National Capital Region (NCR). Work on two new bridges over the river Yamuna is going on with one of the bridges at Nizamuddin nearing completion. However, there are still some issues regarding the availability of land on certain stretches, but we are confident of completing all the work by 2016. In Phase III so far, viaducts over 30 kms have been completed and 15 kms of tunneling has been done, which is equivalent to the entire civil work of Phase I. We are absolutely as per schedule for completing Phase III on time.

It is reported that DMRC is going green and all its upcoming 90 stations under Phase III will be designed as green buildings. Please briefly elaborate that how DMRC will take the environmental journey and what green features will be incorporated in the stations?
All the upcoming Metro stations under the Delhi Metro's third phase of expansion will be designed and constructed as 'green buildings' with specific provisions for the conservation of energy, water saving and waste management arrangements. As part of Phase III, which will be completed by 2016, the station buildings are being designed and constructed keeping the following provisions in mind:
  • Reduced Heat Island Effect Heat Island Effect contributes in increasing temperature of the microclimate of the building and reducing energy efficiency of a building. To reduce this effect, the roofs of the stations will be either finished with high reflective materials or landscaped with vegetation.
  • Landscape Plant Species The plant species used for the landscaping of the stations (wherever possible) will be either native or adaptive. These consume less water and help in water efficiency of the building.
  • Insulated Building Envelope To reduce heat gains in the stations and improve energy efficiency, the walls, roof and windows in the building will be insulated. Insulated building envelope also helps in improving indoor thermal comfort for occupants.
  • Adequate Fresh Air To prevent Sick Building Syndrome and other adverse health effects, the Metro stations are being designed to provide adequate fresh air as per ASHRAE 62.1-2004 through ventilation system. Fresh air also improves productivity of the occupants in the building.
  • Water Efficient Fixtures Low water consuming fixtures like Dual-flush WC, low flow taps etc will be installed at the stations. These fixtures help reduce water consumption in the building without compromising the occupants' water requirements.
Delhi Metro Phase III

DMRC has created history by constructing an elevated track segment hovering over another operational elevated segment at a record height of 21 meter which is first of its kind in India. What does this achievement meant to you and how did DMRC manage to successfully complete this challenging task?
The construction work of crossing over the Metro viaduct at the existing Karkarduma Metro station was never an easy task for the Metro engineers. It posed numerous challenges to the civil engineers throughout the project as this is one of the highest crossings of the Delhi Metro network. The new Metro line (Majlis Park – Shiv Vihar) is crossing the existing (Vaishali- Dwarka) elevated line at 21 m above the ground and is 10 m above the existing Metro line. The work was done without disrupting the normal daily Metro train/passenger services for even a single day.

We crossed the existing Metro line at such a height in a very safe and systematic manner with all safety precautions in place. The launching of girder and erection of span was carried out in a very watchful manner with extra precautions. Extensive round the clock CCTV monitoring was done adjacent to the rail track to avoid any signs of electrocution and fall of material during crossing. The monitoring consisted of earthing provided to the launching girder, pre-stressing beam, erected segments or any other loose items kept on span. The work was carried out during the shadow block of the existing system during non-operating hours after getting all the clearances from the competent authorities. This achievement certainly means a lot to all of us. In this phase, we are crossing over existing viaducts at four more locations.

DMRC Project

You are associated to DMRC since its inception, how over the years have you seen changes in its project management and decision-making skills on newer construction methods and technologies?
When the Delhi Metro had started its journey, we were a small team of a few engineers and officials. Over the years, the family has grown enormously with 8,000 people working today. Keeping pace with the expansion of the network as well as the responsibility of bringing new areas under Metro connectivity, we have also brought changes in our work culture. However, right since the beginning, we have tried to keep official red tapism at bay and have focused on quick decision making. On the construction front also, the effort has been to adopt the latest technologies to make Metro construction safe as well as qualitatively better.

Would you please comment on the latest technologies being adopted by DMRC for the faster and smoother construction of metro projects?
A number of technological changes have been made in the present phase of construction by us. We thoroughly analyzed our experience in the previous phases and have tried to incorporate the changes.
  • U Girders These have been used on the Badarpur – YMCA Chowk section in Faridabad. These girders are about 22 to 27 mtrs in length and their use has saved a lot of time. Due to the use of this technology, we have almost finished the viaduct construction on this 14 km long corridor. Similar girders were also used during the construction of the Airport Express Link. However, the erection of these girders requires a large amount of working space and equipment. A specialized casting yard also had to be constructed for the casting of these girders. However, these are very effective in ensuring fast construction.
  • Mass Spring System Another major step that is being taken to further improve our underground tunnels is the installation of Mass Spring Systems (MSS) on the tracks to prevent any kind of vibration from reaching the structures above these tunnels. MSS is the solution which helps in mitigating vibrations generated by the passing trains at the source itself. MSS elastically separates the tracks slabs in the tunnels or on the viaducts from the supporting structure. The material used for isolation is a microcellular Polyurethane Elastomer (e.g.- Sylomer from Getzner- Austria). Use of MSS helps in minimizing the transmission of vibrations (structure-borne noise) to the surrounding establishments in the vicinity of tracks. In addition, MSS also effectively reduces the development of audible secondary airborne noise, which is caused by the vibration of buildings and other infrastructure components.
  • Box Pushing Technology: Many subways being constructed by the Delhi Metro are using the Box Pushing technology, with which vertical excavation or large scale digging is not required. This method is much faster than the conventional cut and cover technology used generally for the construction of subways. For most of these subways, had DMRC opted for the conventional cut and cover technology, then it would have had to excavate the road above causing great inconvenience to the movement of traffic.
Would you please elaborate on your initiative for opening Tunnel Training School?
DMRC has tied up with the Tunnel Training Academy in Kualalumpur to train its engineers on the latest techniques and skills needed for doing underground tunnelling works using Tunnel Boring Machines (TBM). This training is aimed at increasing the levels of skills of the DMRC engineers in Underground Tunnelling as about 53 km of the total length of Delhi Metro's Phase III is being constructed underground and 35 TBMs are going to be used to achieve this target. The first batch of engineers has already obtained training from this institute.

The metro engineers are now getting hands on training in a classroom underground tunnel environment using audio-visual 3-dimensional tools to erect tunnelling segments using wireless controls in the Malaysian Academy. In addition, they can also construct Tunnel Archs using Concreting (Shotcrete) in the training laboratories. The trainees are also being exposed to working TBM models and the use of cutting tools such as Disk Cutter & Cutting Knives which are used to cut through soil and rocks encountered by the TBMs during underground tunnelling operations. As part of the module, emphasis is given on ensuring that metro engineers make sure that there is no movement and surface settlement in the buildings above under which metro tunnelling takes place. In the future, we also plan to open our own tunnelling training school as a large number of Indian cities are now planning or implementing Metro systems. Our training facility at Shastri Park is already providing training to the Operations and Maintenance staff of a number of the Metro systems in India.

DMRC has been asked by Lt-Governor to "look beyond" and "conceptualize" itself as a global entity. How do you look at this opportunity? What are the international contracts currently you have in hands or are discussing on?
We are already exploring opportunities to establish DMRC as a globally reputed organization with expertise in providing consultancy as well as construction solutions to upcoming Metro projects across the world. In 2012, DMRC was engaged jointly with Japanese Consultancy Co for the work of 'Management Consulting Services' for the first phase of the Jakarta Mass Rapid Transit System. We have also signed an agreement with the Dhaka Mass Rapid Transit (MRT-6) in Bangladesh along with four other international and one local Bangladeshi firm for implementation of the prestigious Dhaka MRT-6 project. Discussions are in progress with some other countries as well.

As DMRC has already completed the detailed project report (DPR) for the proposed Phase IV corridors (115.94km). Could you please give a detailed overview of the Metro Phase IV?
Phase IV plans are being finalized and will be sent for the consideration and approval of the government. However, we will try to bring Metro connectivity to many more areas of Delhi and the surrounding areas. Some of the proposed corridors may be as under subject to approval/ modifications by the government.

R.K. Puram – Janakpuri (West); Inderlok – Delhi Gate – Indraprastha; Aerocity – Saket – Tughlakabad; Lajpat Nagar – Chirag Delhi – Saket G Block; Mukundpur – Burari – Maujpur; Rithala – Bawana – Narela.

The Opening of Mandi House Station

Mandi House Metro Station

The first section of Delhi Metro's phase III from Central Secretariat to Mandi House has been thrown open to the public. The opening of this station is a landmark moment for the Delhi Metro. It is the first section to become operational on the most extensive phase of Delhi Metro. Total track on this route is 6.1 km, with depth varying from 15 m to 28 m from the ground level. It consumed 55,467 metric tones of cement, 156,700 mt of steel, 1,27,000 cum concrete and excavated 3,93,556 cum muck and earth.

NBMCW August 2014

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