Falling Steel Prices are Fuelling Growth of PEB Structures in both Telugu states

The Size of these structures in both Telugu States is put at Rs 300crore and nearly 1.5crore sft PEB structures are erected annually and growing at rate of 15 to 20% on par with the national average growth

Hyderabad, February 04, 2016……Time to invest in Steel Buildings is now. This is the significant market phase for investing in Steel Buildings said Ramraj Khatri, Managing Director of Kishore Infratech.

India's steel prices have fallen 20 percent in the past one year. Considered to be an all time low steel price of the decade. These reason cited by the industry is surplus production by China effected the global steel market. Indian steel giants reduced the prices to overcome the competition flooded from its neighboring country.

Pre Engineered Buildings(PEB) market has been taking a great leap as the steel prices are more affordable now than ever before.

According to Venugopal, Marketing Head, Zamil Steels  this year the total Indian PEB sector may Rs.6,000 Crore. Both Telugu States together will touch around 300 crore. The industry is growing a brisk pace at the rate of 15 to 20 per cent annually. It is expected to demonstrate a similar, if not better growth in the years to come," he states. The total quantum of market in both telugu states put togehter is considered to be roughly about 1.5crore  square foot area of PEB structure each year.

Kirby Building Solutions, Interarch Building Products, Tata Blue Scope Steel, Zamil Steel Buildings, Kishore Infratech, Everest Industries Ltd etc are some of the key players in the market

Another interesting dimension to the present situation, according to Ramraj Khatri is the competition.  The vigorous competition among Domestic PEB players is also complimenting the customers to get a remarkable price benefit. Pre Engineered buildings are now generic in adequacy especially for industrial and warehousing sector because of its faster completion, 100% Recyclability, modular ambience, Portability and no cost over-run.

Few PEB players are also offering free value adds which includes supervision and structural designing for RCC foundations which in turn bypasses them to spend predominant money on Architectural and structural consultancy services.

Although PEB buildings are re-locatable, at a worst even if the shed is sold as scrap after 20 to 30 years the amount invested can be realized. This advantage will not be there with conventional RCC buildings in fact it becomes debris said another industry insider who doesn’t want to be quoted.  Nearly 85 per cent of the investment made on the steel building may be recovered after even after 15years because of high appreciation he said. No doubt, this is the right time to invest.  People have also realized this fact and have been making steady progress on construction of these structures, he said.

Recently Kishan Rao of Adilabad, Telangana finalized a shed for his upcoming ceramic pipes manufacturing plant of 35,000 sft area for Rs.135/- per sft which includes erection and transportation. 1 year back he got quotes for the same at Rs.180/- per sft. He is very happy. Kishan  Rao is very happy because this will reduce his loan burden.

As opposed to being on-site fabricated, PEBs are delivered as a complete finished product to the site from a single supplier with a basic structural steel framework with attached factory finished cladding and roofing components. The structure is erected on the site by bolting the various building components together as per specifications.

It is a well known concept globally off late.  In countries like USA almost 6o per cent of commercial and low rise buildings are Pre-Engineered.  It is also fast catching up in India as well.

The scope of using PEBs ranges from Agri domains like Commercial Cold storages, Dairy farms and Poultry farms are also foraying towards PEB these days to handle the existing market challenges. The other include showrooms, commercial complexes, Play Arenas, stadiums, Schools, Colleges, bridges, fuel stations to aircraft hangers, exhibition centers, railway stations and metro applications.

While we are still to see PEBs being used in residences in India The Delhi Airport and the metro projects of Delhi, Bengaluru and Mumbai are some live examples of PEB applications.

Another big reasons for accepting steel structure today is they are constantly evolving. Steel construction is evolving from olden days boxlike steel structures to modern and aesthetically pleasing designs with unlimited choices.

Things are changing now. Accepting of metal buildings beyond industrial applications is a reality now.  Many Infrastructure and commercial structures have already come up. There is now more awareness now than before.  And adding strength to the concept is falling steel prices.  This has prompted people to even think of it for residential purposes.  It is widely reported that metal buildings are being considered for residential applications as well."

Ramraj can be reached on: 9440407852 and Venugopal, Marketing Head, Zamil Steels  can be reached on 9890037658