Steel Industry in India

Imposing higher tariffs on steel imports lead to restriction of trade deficit which can be considered as a good move with decline in exports, this means India still remains a net import of steel.

Demand of domestic finished steel remained healthy in July-August 2018, with increasing 6.5% over the year-ago period as given by Joint Plant Committee data. However the steel output grew by just 1%, the market was heavily supplied even if imports fell. Exports decreased considerably, since the industry appeared to be keen on domestic market. As the prices of steel remained the same the depreciation in the rupee versus US dollar would have given domestic companies the edge.

India is quite ahead at 9.5% as compared to China with a growth rate of 8.5% in Pre-engineered construction segment. Though private steel sector has done better, the decrease in steel output is the matter of concern.

As the demand of India steel grows, domestic output has to keep pace with it. Decrease in output tends to decrease volume sales growth with profitability being influenced by increase in price and product mix. Rise in interest rates with higher raw material and fuel cost impact the performance of steel companies as working capital requirement increases.

Indian steel industries appear to be in comfortable position with steel building manufacturer companies to grow at continuous rate of 33%. According to rating agency, India Rating and Research Ltd. It expects steel companies to grow by the end of FY19 with sustained profit margins.

Pre-engineered building manufacturer - Supertech India

Pre-engineered metal buildings have become more popular and well accepted substitute for conventional buildings as it is a combination of precast & prefabricated structures. Pre-engineered buildings are generally low rise buildings ideal for warehouse, offices, showrooms, hospitals etc. Although PEB constructions are extensively used worldwide, it is relatively a new concept in India. These buildings can be constructed in less than half time as compared to time taken by traditional construction. Pre-engineered buildings are fully fabricated in the factory after the design and then transported to the site where they are assembled and erected with nut-bolts, thereby reducing the time of completion.

Pre-engineered building concept includes frame geometry which matches the shape thus optimizing the material usage and reducing the total weight of the structure. In recent years, PEB concept in the design of structures has helped in design optimization. The concept of adopting PEB in place of conventional Building has resulted in many advantages, including economy and easier fabrication.

Furthermore, Pre-engineered building system focuses on using pre-determined material stock to fabricate and pre-designed connections to design, thus reducing the time, fabrication and installation. The use of steel is not only economical but also eco-friendly at the time when there is a threat of global warming. 

Some of the important features of PEB include:

• PEB system is computer assisted as structure is first designed on software for a specific use.
• In PEB system a superior corrosion protection of thin coating of resin is applied on the top of Aluminum Zinc.
• A clear organic acrylic resin coating is then applied and thermally cured.
• A colour coating is applied on the top surface to give a bright appearance as per the customer’s choice

Field of Applications of PEB:

• Warehouses
• Factories
• Workshops
• Offices
• Aircraft hangars
• Metro stations
• School

Overall, there is huge potential for PEB in India owing to robust economic growth, increased spending on infrastructure and change in mindset with regard to the use of PEB steel in building.

PEB industry in India

PEB industry in India

The speed with which the Pre-engineered building technology is making its impact in commercial and residential segment in India is well set to become major steel building manufacturer in the world. India is quite ahead at 9.5% as compared to China with a growth rate of 8.5% in PEB construction segment.

India in a short span of 7-8 years will be among the top 10 countries supplying steel building to world if the industry of Pre-engineered Metal Buildings continues to grow at the current 33% growth rate. PEB’s entered the Indian construction industry in the late 1990’s and since then it emerged as a strong alternative to conventional concrete construction in commercial segment.

The following factors have contributed to the growth of PEB’s:

• ·       Massive infrastructure development
• ·       Increase in popularity of PEB system in automotive, power and pharma sector
• ·       Increase emphasis on green building construction

Besides, due to increase awareness on green buildings, PEB’s are now taking over the conventional method of building due to advantages like recycled content and reduced greenhouse gas emission owing to energy-efficient method of steel production.

And, hence because of its eco-friendly construction benefit, PEB’s have become the preferred choice among architects, developers and industrialists particularly in the industrial, commercial and office building sectors including retail stores, warehouses, airports and defense.

Over the past seven years, top PEB builders in India have entered the PEB market and more are on the way. The Indian Pre-engineered building market is poised to grow at 11.63% CAGR and is estimated to reach USD 3.56 billion by 2020.