BANGALORE: India's real estate, construction and infrastructure industry, which is set for big investments over the next five years, faces a huge shortage of engineering, architectural and managerial talent.
The Royal Institution of Chartered Surveyors (RICS), a professional body which regulates property professionals and surveyors, in a recent report, spells out a big demand-supply gap for qualified professionals. Nearly 45 million core construction professionals are required to meet the demand between 2010 and 2020, but there is a cumulative demand-supply gap of 44 million core professionals over the decade.
This demand-supply gap could seriously hamper the growth of real estate, construction and infrastructure sectors in India. "By 2020, India will need over 5 million civil engineers, architects and planners, but will be able to produce less than 1 million," the report says.
"The projected shortage of various built-environment professionals becomes cause for concern as it threatens the sustainability of high growth sectors of real estate, construction and infrastructure," said Sachin Sandhir, MD, RICS South Asia.
With India's population estimated to increase to 1.38 billion, with 36% of this comprising the urban population, 95 billion s ft of real estate space across residential, commercial, industrial and civil amenities will be required by 2020. "To deliver potential real estate space and planned infrastructure, India would need nearly 4 millioncivil engineers, 3,96,000 architects and 1,19,000 planners on an average over the next decade. However, the corresponding average supply would only be 6,42,000 civil engineers, 65,000 architects and 18,000 planners," the report said.
While real estate and infrastructure projects have seen a big pump-in, lower salaries compared to other sectors results in a lack of interest among students, thus creatingshortage. Further, fewer colleges and shortage of trained faculty coupled with formalised incentive structures for construction professionals have added to the industry's woes..
Of the nearly 50 million working in the sector now, only 2 million are professionally qualified, with the rest being primarily unskilled workers.
"Over the last 3 years, while working on urban renewal issues, a challenge that has come to light is the lack of capacity at every level," said Isher Judge Ahluwalia, Chairperson, High Powered Committee on Urban Infrastructure, Ministry of Urban Development.
Success in my Habit
Sunday, December 4, 2011
Khana Khazana plans to operate 150 restaurants in three years
NEW DELHI: Celebrity chef and entrepreneur Sanjeev Kapoor is expanding operations of restaurant business with plans to operate 150 outlets under different brands in the next three years.
The chef, who is the promoter of Khana Khazana India Pvt Ltd, plans to launch three new bands of restaurants in different formats.
"Going ahead, in the next three years we would want to have 150 restaurants under various brands by way of joint ventures, franchise and company-owned outlets," Kapoor told PTI on the sidelines of Franchise India summit here.
Currently, the company operates 20 restaurants under two brand names -- Khazana and Yellow Chilli, most of which are franchise operated.
Asked about investments for the expansion, he said the total required would be around Rs 100 crore but did not provide the break-up of the portions to be made by the company and its partners.
Commenting on the new brands, he said a Chinese cuisine eating joint under the Pinyin Cafe brand will be first opened in Mumbai.
Another fine dining restaurant branded ' Signature by Sanjeev Kapoor' will be opened at a 5-Star hotel in Dubai in the next one month, he said.
A third one, 'Fure Vie', a lounge is also ready for soft launch in Delhi, Kapoor added.
He also said the firm, which is already running a food channel called 'Food Food', has got license for another channel and is at present working to launch it. He, however, did not share details.
The chef, who is the promoter of Khana Khazana India Pvt Ltd, plans to launch three new bands of restaurants in different formats.
"Going ahead, in the next three years we would want to have 150 restaurants under various brands by way of joint ventures, franchise and company-owned outlets," Kapoor told PTI on the sidelines of Franchise India summit here.
Currently, the company operates 20 restaurants under two brand names -- Khazana and Yellow Chilli, most of which are franchise operated.
Asked about investments for the expansion, he said the total required would be around Rs 100 crore but did not provide the break-up of the portions to be made by the company and its partners.
Commenting on the new brands, he said a Chinese cuisine eating joint under the Pinyin Cafe brand will be first opened in Mumbai.
Another fine dining restaurant branded ' Signature by Sanjeev Kapoor' will be opened at a 5-Star hotel in Dubai in the next one month, he said.
A third one, 'Fure Vie', a lounge is also ready for soft launch in Delhi, Kapoor added.
He also said the firm, which is already running a food channel called 'Food Food', has got license for another channel and is at present working to launch it. He, however, did not share details.
ITC to build $300 million hotel in Lankan capital
COLOMBO: ITC Ltd of India is to invest USD 300 million to set up a luxury hotel in Colombo, the government here today said.
The government has approved a USD 300 million foreign direct investment enabling the hotel to be built on 5 acres of land in close proximity to military headquarters in Colombo's famous Galle Face landmark beachfront on a 99-year lease.
"ITCL is a reputed hotel investment group in India, with investments and hotel in India. The government hopes that its presence in Sri Lanka will be a significant contribution toward promoting FDI and the tourism industry in the country," the government information department said.
The Board of Investment of Sri Lanka is to enter a Memorandum of Understanding with ITCL enabling the firm to execute the project under concessionary tax terms with permitted exemptions on investments.
This block of land was earlier allocated to China Aviation Technology Import Export Corporation (CATIC) for USD 73.5 million for a similar project.
The Chinese firm later withdrew and the Sri Lankan government is in the process of reimbursing USD 54.4 million dollars already paid by CATIC for the lease of land.
The government has approved a USD 300 million foreign direct investment enabling the hotel to be built on 5 acres of land in close proximity to military headquarters in Colombo's famous Galle Face landmark beachfront on a 99-year lease.
"ITCL is a reputed hotel investment group in India, with investments and hotel in India. The government hopes that its presence in Sri Lanka will be a significant contribution toward promoting FDI and the tourism industry in the country," the government information department said.
The Board of Investment of Sri Lanka is to enter a Memorandum of Understanding with ITCL enabling the firm to execute the project under concessionary tax terms with permitted exemptions on investments.
This block of land was earlier allocated to China Aviation Technology Import Export Corporation (CATIC) for USD 73.5 million for a similar project.
The Chinese firm later withdrew and the Sri Lankan government is in the process of reimbursing USD 54.4 million dollars already paid by CATIC for the lease of land.
FDI in retail: India awaits world's biggest furniture manufacturer 'Ikea'
Sitting on the toilet seat, Edward Norton in the 1999 film Fight Club is browsing through the Ikea catalogue. In a narrator's voice he observes, "Like so many others, I had become a slave to the Ikea nesting instinct. If I saw something clever like a little coffee table in the shape of a yin-yang, I had to have it."
It's this feeling, the 'Ikea nesting instinct', that Indians haven't experienced till now. Simply because we don't have an Ikea here. And going by president and CEO of Ikea, the Scandinavian home products giant, Mikael Ohlsson's quiet visit last week, it will be some time before we know that feeling.
The moment the floodgates opened for 100% FDI in single-brand retail, all eyes were on Ikea, which has been playing the waiting game to launch its India operations for some years now.
On November 27, PTI reported that Ohlsson will be visiting India to "announce strategic initiative for Indian market". The furore over retail reforms has mainly been addressing the 51% FDI in multi-brand retail. The move to increase FDI to 100% in single-brand retail largely went unnoticed. Yet, Ohlsson, probably persuaded by the current political climate, came and went last week, without any "strategic" announcement.
An Ikea spokesperson said, "Ikea has decided to take some more time to plan its India strategy." Yet, Ikea is not exactly alien to India. How can it be? It's a brand that has 326 stores in 38 countries. And a catalogue print run that rivals Harry Potter books (197 million catalogues in 29 languages and 61 editions in 2010).
In 2009-10, it showed a profit of $23.1 billion, a 7.7% jump from the year before. Many Indians have managed to have Ikea furniture, ordering their local carpenter to copy iconic Lack tables, Billy bookcases or Malm dressers from the Ikea catalogue.
What's the Big Ikea?
In the West, Ikea has become the first furniture of any individual. The October 3, 2011, issue of The New Yorker had Lauren Collins dissect the brand, its philosophy and culture. Collins describes it as "Legos for grown ups, connecting the furniture of our adulthoods with the toys of our childhood." It's currently the world's biggest furniture and furnishing manufacturer and the third largest consumer of wood ahead of Walmart but behind Home Depot and Lowe's.
Did you know that one in 10 Europeans is conceived on an Ikea bed?
Furniture industry insiders in India too are waiting for Ikea. The industry joke is that local carpenters will get new ideas to copy after Ikea comes in. More seriously, and as Manish Parekh. executive director of @home by Nilkamal, a furniture & furnishing retailer . says, Ikea's entry will help the segment grow more organised.
"Our study shows, wherever Ikea has opened a store, it has helped to grow the market and all players flourish." Launched in 2005, @home is now 19 stores across 13 cities, the brand achieved its break-even last year. "There is definitely a shift towards organised furniture retailing. Growth rate of organised retail is much higher than the overall furniture industry," he says, "But in India, we need Ikea to educate customers about readymade furniture."
It's this feeling, the 'Ikea nesting instinct', that Indians haven't experienced till now. Simply because we don't have an Ikea here. And going by president and CEO of Ikea, the Scandinavian home products giant, Mikael Ohlsson's quiet visit last week, it will be some time before we know that feeling.
The moment the floodgates opened for 100% FDI in single-brand retail, all eyes were on Ikea, which has been playing the waiting game to launch its India operations for some years now.
On November 27, PTI reported that Ohlsson will be visiting India to "announce strategic initiative for Indian market". The furore over retail reforms has mainly been addressing the 51% FDI in multi-brand retail. The move to increase FDI to 100% in single-brand retail largely went unnoticed. Yet, Ohlsson, probably persuaded by the current political climate, came and went last week, without any "strategic" announcement.
An Ikea spokesperson said, "Ikea has decided to take some more time to plan its India strategy." Yet, Ikea is not exactly alien to India. How can it be? It's a brand that has 326 stores in 38 countries. And a catalogue print run that rivals Harry Potter books (197 million catalogues in 29 languages and 61 editions in 2010).
In 2009-10, it showed a profit of $23.1 billion, a 7.7% jump from the year before. Many Indians have managed to have Ikea furniture, ordering their local carpenter to copy iconic Lack tables, Billy bookcases or Malm dressers from the Ikea catalogue.
What's the Big Ikea?
In the West, Ikea has become the first furniture of any individual. The October 3, 2011, issue of The New Yorker had Lauren Collins dissect the brand, its philosophy and culture. Collins describes it as "Legos for grown ups, connecting the furniture of our adulthoods with the toys of our childhood." It's currently the world's biggest furniture and furnishing manufacturer and the third largest consumer of wood ahead of Walmart but behind Home Depot and Lowe's.
Did you know that one in 10 Europeans is conceived on an Ikea bed?
Furniture industry insiders in India too are waiting for Ikea. The industry joke is that local carpenters will get new ideas to copy after Ikea comes in. More seriously, and as Manish Parekh. executive director of @home by Nilkamal, a furniture & furnishing retailer . says, Ikea's entry will help the segment grow more organised.
"Our study shows, wherever Ikea has opened a store, it has helped to grow the market and all players flourish." Launched in 2005, @home is now 19 stores across 13 cities, the brand achieved its break-even last year. "There is definitely a shift towards organised furniture retailing. Growth rate of organised retail is much higher than the overall furniture industry," he says, "But in India, we need Ikea to educate customers about readymade furniture."
NTIPL closes its Chennai unit, shifts to new facility in Goa
PANAJI: NETZSCH Technologies India Pvt Ltd (NTIPL), a subsidiary of a German firm, has shifted its pump manufacturing facility from Chennai to Goa's Verna Industrial estate, a senior official said today.
Vivek Norman, Managing Director, NTIPL, told reporters here that the company has closed the Chennai plant, which had capacity to manufacture 300 pumps per annum and has shifted in a new facility at Goa, with a capacity to produce 1500 units per year.
NTIPL is into progressing cavity pumps, industrial rotary lobe pumps, macerators and griders. It is the subsidiary of the German based NETZSCH Group of Companies, which has a global turnover of 400 million Euros.
Norman said that the India turnover is 2.5 million Euros and it will grow by more than 30 per cent for this Financial Year (FY) due to the Goa facility.
"The key factor for success is that we should be close to the local market," he said adding that 800 units per year is the Indian sale of the company, which could be achieved with the new plant.
Norman said the company in India enjoys a market share of 25 per cent with a compounded annual growth rate of 32 per cent. The company has its sales and service offices across eight towns in India.
Vivek Norman, Managing Director, NTIPL, told reporters here that the company has closed the Chennai plant, which had capacity to manufacture 300 pumps per annum and has shifted in a new facility at Goa, with a capacity to produce 1500 units per year.
NTIPL is into progressing cavity pumps, industrial rotary lobe pumps, macerators and griders. It is the subsidiary of the German based NETZSCH Group of Companies, which has a global turnover of 400 million Euros.
Norman said that the India turnover is 2.5 million Euros and it will grow by more than 30 per cent for this Financial Year (FY) due to the Goa facility.
"The key factor for success is that we should be close to the local market," he said adding that 800 units per year is the Indian sale of the company, which could be achieved with the new plant.
Norman said the company in India enjoys a market share of 25 per cent with a compounded annual growth rate of 32 per cent. The company has its sales and service offices across eight towns in India.
KEC International wins new orders worth Rs 147 crore in water, railway businesses
MUMBAI: KEC International (KEC), the flagship company of the RPG Group, today said it has won new orders worth Rs 147 crore in its emerging businesses - water and railways.
In the water business, the company has secured three new orders for construction of canals for irrigation projects in Gujarat and Madhya Pradesh worth Rs 98 crore, the global infrastructure engineering, procurement and construction ( EPC) major said in a release issued here.
With this addition, the order book of this business has increased to Rs 178 crore.
In the railway business, the company secured an order for supply of railway track materials, tools and railway signalling equipment worth Rs 49 crore from the Kenya Railway Corporation. With this, the order book of this business has touched Rs 400 crore.
"We are delighted to secure these orders in our emerging businesses - water and railways. We see large opportunities in both these businesses. We started our Water business early this year and today we have total order book of Rs 178 crore," KEC International Managing Director and CEO Ramesh Chandak said in a release issued here.
In addition to this, the company is leveraging its strong international presence in T&D business for its emerging businesses, he said.
"This is the second international order in the railway business. Last year, we secured a railway order from Malaysia," he said.
In the water business, the company has secured three new orders for construction of canals for irrigation projects in Gujarat and Madhya Pradesh worth Rs 98 crore, the global infrastructure engineering, procurement and construction ( EPC) major said in a release issued here.
With this addition, the order book of this business has increased to Rs 178 crore.
In the railway business, the company secured an order for supply of railway track materials, tools and railway signalling equipment worth Rs 49 crore from the Kenya Railway Corporation. With this, the order book of this business has touched Rs 400 crore.
"We are delighted to secure these orders in our emerging businesses - water and railways. We see large opportunities in both these businesses. We started our Water business early this year and today we have total order book of Rs 178 crore," KEC International Managing Director and CEO Ramesh Chandak said in a release issued here.
In addition to this, the company is leveraging its strong international presence in T&D business for its emerging businesses, he said.
"This is the second international order in the railway business. Last year, we secured a railway order from Malaysia," he said.
BHEL bags ArcelorMittal equipment contract for Ukraine plant
NEW DELHI: State-run BHEL today said it has bagged a Rs 40 crore contract to supply equipment for a captive power plant being set up at global steel giant ArcelorMittal's plant in Ukraine.
BHEL has bagged the contract for supplying the steam turbine generator (STG) package for the captive power project at ArcelorMittal Group's steel plant at Kryviy Rih, in Ukraine, an official statement said.
BHEL's scope of work under this contract involves design, engineering, manufacture, supply and supervision of the erection and commissioning of the 27-MW steam turbine & generator package, including controls and instrumentation (C&I).
The project is to be executed by BHEL within a contractual completion deadline of 18 months. The steam turbine generators and C&I systems are to be manufactured at BHEL's Hyderabad plant and its electronics division in Bangalore, respectively.
Up to June, 2011, BHEL had installed generation equipment with a cumulative capacity of over 8,500 MW in 21 countries outside India, while another 5,200 MW of power generation capacity was under various stages of execution in 19 countries.
BHEL has also set up a marketing office at Almaty, in Kazakhstan. The company has executed many contracts for various products and services in Russia, Azerbaijan, Kazakhstan and Tajikistan.
Presently, the company is executing a gas turbine-based combined heat and power plant project in Belarus.
BHEL has bagged the contract for supplying the steam turbine generator (STG) package for the captive power project at ArcelorMittal Group's steel plant at Kryviy Rih, in Ukraine, an official statement said.
BHEL's scope of work under this contract involves design, engineering, manufacture, supply and supervision of the erection and commissioning of the 27-MW steam turbine & generator package, including controls and instrumentation (C&I).
The project is to be executed by BHEL within a contractual completion deadline of 18 months. The steam turbine generators and C&I systems are to be manufactured at BHEL's Hyderabad plant and its electronics division in Bangalore, respectively.
Up to June, 2011, BHEL had installed generation equipment with a cumulative capacity of over 8,500 MW in 21 countries outside India, while another 5,200 MW of power generation capacity was under various stages of execution in 19 countries.
BHEL has also set up a marketing office at Almaty, in Kazakhstan. The company has executed many contracts for various products and services in Russia, Azerbaijan, Kazakhstan and Tajikistan.
Presently, the company is executing a gas turbine-based combined heat and power plant project in Belarus.
Anil Ambani-promoted Reliance Infrastructure can collect toll at 10 projects by March
NEW DELHI: Anil Ambani-promoted Reliance Infrastructure can start toll collection at its 10 road projects, which are being implemented at an estimated investment of Rs 10,000 crore, by the end of this fiscal.
"Six projects of Reliance Infrastructure would become revenue operational by March, 2012, four have already started generating revenues," a source said.
The company is executing these projects of the National Highways Authority of India under the public-private- partnership model and would earn revenue from toll collected from traffic.
In these six-laning projects, tolling can be commenced parallel to the commencement of construction from the day financial closure is achieved.
These projects include six-laning of NH 4 between Pune and Satara of length 140 km in Maharashtra, six-laning of NH 7 between Hosur and Krishnagiri of length 60 km in Tamil Nadu, six-laning of NH 2 between Delhi and Agra of length 180 km in Haryana and Uttar Pradesh.
Once these projects are completed, they are likely to generate a revenue of Rs 1,200-1,400 crore per annum.
Reliance Infrastructure plans to bag more highway projects in the future.
"Themega road projects...whenever they are bid out RInfra would been keen to develop them....only one mega road project has been bid out so far," sources said.
The 10 projects would be fully-commissioned by 2014. Reliance Infrastructure has 25 infrastructure projects totalling Rs 40,000 crore in hand, including these 10 projects.
The company had posted a net profit of Rs 362 crore in the quarter ended September 30, 2011.
"Six projects of Reliance Infrastructure would become revenue operational by March, 2012, four have already started generating revenues," a source said.
The company is executing these projects of the National Highways Authority of India under the public-private- partnership model and would earn revenue from toll collected from traffic.
In these six-laning projects, tolling can be commenced parallel to the commencement of construction from the day financial closure is achieved.
These projects include six-laning of NH 4 between Pune and Satara of length 140 km in Maharashtra, six-laning of NH 7 between Hosur and Krishnagiri of length 60 km in Tamil Nadu, six-laning of NH 2 between Delhi and Agra of length 180 km in Haryana and Uttar Pradesh.
Once these projects are completed, they are likely to generate a revenue of Rs 1,200-1,400 crore per annum.
Reliance Infrastructure plans to bag more highway projects in the future.
"Themega road projects...whenever they are bid out RInfra would been keen to develop them....only one mega road project has been bid out so far," sources said.
The 10 projects would be fully-commissioned by 2014. Reliance Infrastructure has 25 infrastructure projects totalling Rs 40,000 crore in hand, including these 10 projects.
The company had posted a net profit of Rs 362 crore in the quarter ended September 30, 2011.
GMR infra may face lawsuit over male airport user fee
BANGALORE: GMR Infrastructure, which is building Maldives' largest airport, the Male International Airport, could face a funding shortage of $25 million annually, after reports emerged that a local political party - Dhivehi Qaumee Party (DQP) - may file a case against the Bangalore-based company for collecting airport development charges (ADC).
GMR Infrastructure plans to charge $25 per passenger from the annual departing passenger count of one million, and wants to introduce a $2 insurance charge at the check-in counters starting January to offset the costs incurred in building the airport.
"The local opposition party is alleging that the ADC should be removed. However, GMR has mentioned that as per the terms of the airport agreement, it will be allowed. The company is looking to fund $25 million per annum for its capex plan of $511 million," said a person close to the development.
The company had earlier tried to include ADC within the airline ticket price itself, but the International Air Transport Association (IATA) didn't allow it.
DQP vice-president Imad Solih has already submitted a separate civil case, questioning the legitimacy of the charge, and has requested the court to take action against the country's finance ministry, according to a report by Haaveru Online, a local website.
"ADC at Ibrahim Nasir International Airport, Male, is a charge approved by the Government of Maldives and we will implement the same in due course of time. As of now, we have no official intimation of the same and thus, would not like to comment on speculative news," a GMR spokesperson said.
In June last year, the GMR-led consortium won a bid to build, operate, modernise and expand the Male airport for a period of 25 years, from the Maldives government. The Bangalore-based company holds a 77% stake in the international airport through a joint venture between GMR and Malaysia Airports Holdings Berhad.
Once upgraded, Male airport is expected to handle traffic of over 3 million passengers by 2014, and thereby increasing traffic by a further 2 million in the recent future. Currently, the airport handles 2.6 million passengers annually.
GMR has raised debt of $358 million from Axis Bank, Singapore branch, the sole underwriter and mandated lead arranger for the entire debt facility. The debt has a door-todoor tenure of 12 years with ballooning repayments over seven years, commencing from June 2015.
GMR Infrastructure plans to charge $25 per passenger from the annual departing passenger count of one million, and wants to introduce a $2 insurance charge at the check-in counters starting January to offset the costs incurred in building the airport.
"The local opposition party is alleging that the ADC should be removed. However, GMR has mentioned that as per the terms of the airport agreement, it will be allowed. The company is looking to fund $25 million per annum for its capex plan of $511 million," said a person close to the development.
The company had earlier tried to include ADC within the airline ticket price itself, but the International Air Transport Association (IATA) didn't allow it.
DQP vice-president Imad Solih has already submitted a separate civil case, questioning the legitimacy of the charge, and has requested the court to take action against the country's finance ministry, according to a report by Haaveru Online, a local website.
"ADC at Ibrahim Nasir International Airport, Male, is a charge approved by the Government of Maldives and we will implement the same in due course of time. As of now, we have no official intimation of the same and thus, would not like to comment on speculative news," a GMR spokesperson said.
In June last year, the GMR-led consortium won a bid to build, operate, modernise and expand the Male airport for a period of 25 years, from the Maldives government. The Bangalore-based company holds a 77% stake in the international airport through a joint venture between GMR and Malaysia Airports Holdings Berhad.
Once upgraded, Male airport is expected to handle traffic of over 3 million passengers by 2014, and thereby increasing traffic by a further 2 million in the recent future. Currently, the airport handles 2.6 million passengers annually.
GMR has raised debt of $358 million from Axis Bank, Singapore branch, the sole underwriter and mandated lead arranger for the entire debt facility. The debt has a door-todoor tenure of 12 years with ballooning repayments over seven years, commencing from June 2015.
Ramky Infrastructure bags two road projects worth Rs.2,240.65 crore
MUMBAI: Ramky Infrastructure Thursday said it has bagged two road projects worth Rs.2,240.65 crore from the National Highways Authority of India (NHAI).
The first project is for six-laning of the Agra-Etawah bypass section of National Highway (NH)-2 under the National Highways Development Project (NHDP) Phase V in Uttar Pradesh, the company said in a regulatory filing.
The second project is for four-laning of the Hospet-Chitradurga section of NH-3 in Karnataka under NHDP Phase III, it added.
The estimated costs of the projects are Rs.1,207.00 crore and Rs.1,033.65 crore, respectively. The concession period for the first project is 30 years and for the second 25 years. Both the projects include a construction period of 910 days each.
At the Bombay Stock Exchange, the shares of the company closed 4.75 per cent up at Rs.215.
The first project is for six-laning of the Agra-Etawah bypass section of National Highway (NH)-2 under the National Highways Development Project (NHDP) Phase V in Uttar Pradesh, the company said in a regulatory filing.
The second project is for four-laning of the Hospet-Chitradurga section of NH-3 in Karnataka under NHDP Phase III, it added.
The estimated costs of the projects are Rs.1,207.00 crore and Rs.1,033.65 crore, respectively. The concession period for the first project is 30 years and for the second 25 years. Both the projects include a construction period of 910 days each.
At the Bombay Stock Exchange, the shares of the company closed 4.75 per cent up at Rs.215.
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