PRESENTED BY,GROUP 1

INDUSTRY ANALYSIS

On

CONSTRUCTION INDUSTRY

HISTORY

• 1950 to mid 60’s- govt. Play an important role in

development

• Construction activities carried by state owned enterprises

and supported by govt. Departments

• First professional consultancy company – NIDC (1953)

• Design engineering and construction companies were set up

in the public sector

• The Indian construction industry comprises 200 firms in the

corporate sector.

• In addition to these firms, there are about 120,000 class A

contractors registered with various government construction

bodies.

• There are thousands of small contractors, which compete

for small jobs or work as sub-contractors of prime or other

contractors.

CHARACTERISTICS

• Differentiated from other industries by its organization and

products, its stakeholders, its projects, its processes, and its

operating environment.

• National statistical data divide the construction industry into

three subsectors:

• construction of buildings

• heavy and civil engineering construction

• specialty trade contractors

GDP CONTRIBUTION

• In India Construction has accounted for around 40 per cent

of the development investment during the past 50 years.

• Around 16 per cent of the nation's working population

depends on construction for its livelihood.

• The Indian construction industry employs over 30 million

people and creates assets worth over 200 billion.

• It contributes more than 5 per cent to the nation's GDP and

78 per cent to the gross capital formation.

• In the 21st century, there has been an increase in the share of

the construction sector in GDP and capital formation.

• The main reason for this is the increasing emphasis on

involving the private sector infrastructure development

through

• public-private partnerships and mechanisms like build-

operate-transfer (BOT),

• private sector investment has not reached the expected

levels.

LEADING PLAYERS

•Larsen &Toubro (L&T)

•Punj Lloyd Group

LARSEN &TOUBRO (L&T)

• Larsen &Toubro (L&T) remains the undisputed

number one infrastructure company in India.

• Today, L&T continues to build on its reputation by

maintaining an all round growth across the

infrastructure segments where it operates.

• The recently concluded fiscal has been quite good

for the company.

• The Profit after Tax for the year at Rs.5451 crore

grew by 44% as compared to the previous year.

• Subsidiaries and associate companies together contributed

Rs613 crore to the Group's profits

• The Group’s total income registered Rs. 43970 crore vis-a-vis

Rs40511 crore for the previous year.

• The huge order book gives ample visibility to the company’s

continued leadership position.

• L&T is well poised to take advantage of the opportunities

presented by India's amazing infrastructure development.

• L&T has considerable presence and capabilities in the

international markets.

PUNJ LLOYD GROUP

• Punj Lloyd Group's consolidated total income for

FY2010 stood at Rs10,539 crore

• Quite pleased at the financial performance of the

Group

• Some of our large wins include India’s largest solar-

based EPC contract as well as two projects from

Mangalore Refinery.

• The results of our initiatives enhance confidence in

our capabilities and strengths.

• This year, the Group also won its first project in

Thailand.

CONCLUSION

• The Indian economy has witnessed considerable progress in the

past few decades.

• Most of the infrastructure development sectors moved forward,

but not to the required extent of increasing growth rate up to the

tune of 8 to 10 per cent.

• With the present emphasis on creating physical infrastructure,

massive investment is planned in this sector.

• Public Private Partnerships (PPP) approach is best suited for

finding the resources.

• Better construction management is required for optimizing

resources and maximizing productivity and efficiency.