Steel Buildings
Engineered to Succeed:
PEB Industry Slated to Revolutionize Construction in India
Chaitanya Raj Goyal
W
e're careering headlong into
a new age of speed building
an era where, in some cities,
you could go away for the weekend
and return to find a brand new sky-
scraper at the end of your garden. Imag-
ine the relief when you suddenly realize
that you have been spared the unnerv-
ing, yearlong noises of truck horns,
pounding hammers, drilling machines
and screaming laborers. You don't
have to bother about road blocks either
70 The Masterbuilder - March 2013 · www.masterbuilder.co.in
because there are no heaps of sand,
piles of rods, & bricks that have been
dumped on your locality roads and you
can also keep your windows open be-
cause there are no dust clouds to raid
your home. And No! It's not an illusion.
Relieved and happy, witnessing the
construction of this miraculous build-
ing next door, you are reaping only its
complementary benefits. The major
advantages on the other hand are roll-
ing into considerable profits for the in-
vestors, contractors and environment.
We are talking about Pre-Engi-
neered or Pre-Fabricated Buildings a
sunrise industry which has already got
the world talking with the major impact
it has registered in the developed na-
tions and is now all set to revolutionize
the way India constructs!
Industry Overview: Technology and
Business
PEB, as pre-engineered buildings
 Steel Buildings

are known in the industry jargon, have

been around for a long time, but in India
they have taken off only over the last
few years. PEBs consist of a complete
steel framed building system, with com-
ponents pre-designed to fit together in
a vast variety of combinations, to meet
the unique requirements of specific
end-users.
PEB construction in factory enviro-
nment is considered to be much stron-
ger than the traditional structures thus
ensuring superior product quality. Pre-
fabricated structures also guarantee
time minimization, architectural flexibil-
ity, low maintenance and operating costs,
relatively low design and construction
costs, option of single-source respon- PEB Structures offer amazing architectural flexibility
sibility for building, etc.
Demand for these buildings com- 900,000 MT by 2016, growing at a structure sectors. The Union Govern-
prises warehouses, hospitals, facto- CAGR of 11.1% (Frost & Sullivan report). ment and other State Governments are
ries, logistics, schools, stadiums, rail- going full-ahead to set-up SEZs in
Growth Drivers: Opportunities are many
way sheds, airplane hangars, offices, exploring maximum opportunities from
show rooms and residential buildings. Growing Recognition: In light of the growing indus-trialization. Also the ther-
Across India, the manufacturing sector recent news that PEB has been gener- mal power ca-pacity which currently
especially has always preferred using ating - awareness about their use in al- stands at 140,976 MW is proposed to
PEBs in industrial construction. But over most all the structures is changing the be increased by 50,000 MW.
the time with turnaround period and mass mindset for acceptance of PEBs The commercial building sector in
scalability becoming important for con- over conventional buildings. India, too, is estimated to reach a target
struction across micro and macro pro- Rapid Infrastructural Growth: The of 20.44 billion square feet by 2030 from
jects for private, corporate and institu- government is working to attract invest- 7 billion square feet in 2010. It is ex-
tional use - the usage of PEBs has grown ments to the tune of $1 trillion as pla- pected that nearly 34% of 2030 target
in construction projects across various nned for the 12th FYP across key infra- had already been constructed and
other verticals as well.
This is well certified by the fact that Interior Side
Indian PEB market earned revenues of
INR 52,970 million in 2012 and the fig- Thermal break
ure is estimated to reach INR 136,120 Recycled-steel Framing
million by 2016, growing at a com-
pound annual growth rate (CAGR) of Waterproof membrane
26.6 percent (Frost & Sullivan report). Gypsumboard
Currently 33% of the Indian construc-
tion industry is based on PEB while the
remaining 67% is conventional con-
struction. While this figure is lower than
some European countries, it marks External cladding:
India's growing global market share at -Acoustic insulation
9.5%, a step ahead of China's 8.5%. -Ventilated Facade
Also, the structural steel buildings
market in India was around 5.0 to 5.5 Mechanical chase
million MT in 2011, of which around 9.5-
10% i.e. 537,176 MT accounted for the Exterior side
PEB market in India. It is expected that
the market in terms of volumes will reach A typical wall panel

www.masterbuilder.co.in · The Masterbuilder - March 2013 71

Steel Buildings
Massive investments in metro rail systems and other sectors will boost PEB industry
about 66% of the building stock is yet to
be constructed. With such huge invest-
ments planned over the next four years
in these and many other sectors like
realty, ports, logistics, metros, airports,
etc., PEB sector is witnessing a huge
opportunity.
The Green Touch: The environ-
mentally friendly aspects of prefab
structures - they create less waste, for
example, they are often made from re-
cycled materials (steel especially) and
are highly energy efficient - continue to
attract green-minded folks around the
country.
To increase energy-efficiency, many
PEB manufacturers have developed
high efficiency windows and insulation
for roofs, walls, ceilings & floors. The use
of sky lights and solar panels on roof-
tops will meet daylight and captive power
requirements, while, at the same time,
reducing emissions and gaining carbon
credits under clean development mech-
anism.
Technological innovations: The
technology being used in modern con-
struction has come a long way. BIM
helps in organizing effective communi-
72 The Masterbuilder - March 2013 · www.masterbuilder.co.in
cation between Client, Architect, Engi-
neer, Manufacturer and Erector. This
technology is more economic, reduces
error, and takes minimum time in con-
ceptualizing and accomplishing any
PEB project.
Rise of Steel Sector: The Indian
steel industry has made rapid progress
over the past few years driven by the
strong demand from manufacturing,
housing and infrastructure sectors. The
Indian steel industry's performance this
year is regarded as one the best when
pitted against global peers. While global
steel production grew by a mere 0.9%
in the first 11 months of 2012 and Chi-
nese production rose by 2.9%, the
Indian steel industry posted an impres-
sive 4.2% growth. Easy availability of
steel is going to smoother the growth
drive for PEB sector.
Affordable housing is need of the
hour: India offers a huge market, (over
$ 6 Billion for two million units), for
affordable housing, which is highly cor-
related with the government's progra-
mmes for slum rehabilitation, for e.g.
'Rajiv Gandhi Aawas Yojana'.
This market has a good latent de-
mand and offers a unique opportunity
for prefab technology to reach masses.
It is very clear therefore that large pri-
vate sector developers who are eyeing
this segment would resort to prefab
technology, to ensure that there are
faster returns on investment and that
the project is completed within an eco-
nomic cycle.
The United Nations Population Divi-
sion Report of 2007 predicted that the
number of mega cities (those with over
10 million or more people) climbed from
five in 1975 to 14 in 1995 and is pro-
jected to reach 26 by 2015. Naturally,
the demand for affordable housing will
leapfrog and this in turn will impact the
growth of the PEB industry.
Growth in Automobile Industry:
The Auto industry in India is also on a
growth ride and PEB manufacturers are
getting enormous business opportuni-
ties in setting-up of automobile and auto
ancillary facilities.
Safe and Efficient: Deeper insight into
PEB technology
A PEB system in totality consists of
a structural system, sandwich panels,
Steel Buildings
'Instacon' was erected in 48 hours in Mohali, Punjab
roofing, exterior facade and accesso-
ries. The PEB concept based on a
proper design usually involves a thor-
ough project information data including
complete details like building parame-
ters, grade of steel, secondary mem-
ber details, paint coat on steel mem-
bers, welding, anchor bolts steel grade,
roof & wall liner/ panel, insulation, sky
light, gutters, facia, mezzanine, ridge
ventilation to name a few. Following this
input, the drawings for general arran-
gement, Anchor Bolt & Template Fabri-
cation & Erection are prepared.
Recently, a 10 storey residential
building “Instacon”, was erected in a
record shattering 48 hours from ground
zero, in Mohali, Punjab by Synergy
Thrislington. The walls of Instacon are
made from polyurethane foaming
(PUF) panels cast in a factory and
screwed together at the site. 70% of the
building was pre-fab-ricated and 30%
was done at the site of construction.
In China too, a succession of tall
buildings are being erected in a flash. A
Chinese company - Broad claims that it
can prefabricate an incredible 93 %. It
raised a 15-storey hotel in its home city
of Changsha in six days last year and a
$17m, 30-storey hotel, just outside
Changsha in two weeks.
But can a block of flats built in cou-
74 The Masterbuilder - March 2013 · www.masterbuilder.co.in
systems, Sintex Industries, Pennar EBSL,
Era Buildsys, Tata BlueScope Steel,
Interarch Building Products, Tiger Steel
Engineering, Phenix Varco Pruden,
Everest Industries, Zamil Steel, etc.
Also, the sector is going interna-
tional as companies move to tie up with
multinationals for upgrading offerings
to their customers. Technical associa-
tion and JV's with leading PEB compa-
nies in Europe, USA and Middle-east are
proving quite useful in terms of engi-
neering excellence, product quality and
superior products range for Indian firms.
Major names that have linked up
abroad are Tata BlueScope, Reliance
Industries tie up with Mammut Group
and JSW Building Systems bonding
with Severfield Reeve Structures of UK,
as also Phenix Varco Pruden, a JV bet-
ween Gujarat's MB Group and Varco
ple of days really be safe? Many ques- Pruden Buildings, USA. In such a com-
tions are raised worldwide on the safety petitive scenario, the ability of a com-
and efficiency of these structures pri- pany to retain its market share without
marily safety. It may be noted that these any deterioration in its financial risk pro-
buildings are tested at some of the larg- file will prove critical in progress.
est earthquake-testing platforms for
Magnitude 9 seismic resistance. The
economy safety tradeoff provided by
PEBs is thus unparalleled and far better
than conventional structures.
Strategic Management: Existing Mar-
ket players
Started in 1999-2000 with a meager
volume of less than 10,000 tons per
annum, PEB construction is catching up
fast. But despite good demand and
due to excessive supply, the market
scenario of PEB sector is changing.
Suppliers from the unorganized seg-
ment of PEB are supplying material
and services at an amazing low cost.
This is ultimately reflected as a high
compromise in quality and services.
This is where the organized sector plays
a crucial role in the form of technical
competence and background because
clients are always ready to pay good
prices for quality jobs and big ticket pro-
jects.
The existent Indian PEB segment is
highly competitive with presence of A 30 floor PEB building undergoing seismic
established players like Kirby Building testing in China
 Steel Buildings
Volatile nature of Steel Prices poses a huge challenge to the PEB industry
Preferred Alternative: Prefab vs. Con-
ventional Construction
Ideal for construction in remote and
hilly areas, PEBs offer a complete buil-
ding system of energy efficient, optimum
weight and cost customized fitted re-
quirement. They can be customized as
per the climate/design requirements at
the site. Since only the bolting needs to
be done on the site a quicker construc-
tion speed compared to conventional
construction is possible.
The flexibility of PEBs to be casted
even while the foundation is being laid
also leads to saving on time. PEBs don't
require curing time like concrete and
mortar and boast of an immediate
occupancy. The quality of the structure
being controlled in the factory is supe-
rior to that achieved in masonry con-
struction.
They are much lighter in weight than
normal steel buildings owing to their
high proportion of recycled content.
Their design flexibility is also a plus with
wide ranges of available wall and roof
sheeting (granite, stone cladding, brick-
work, ACP's etc) and interface details
between steel and other materials.
These are low maintenance struc-
tures requiring only periodic cleaning of
roofs, painting and annual washing of
eave gutters. The ease of construction
makes them hassle free and bestows
76 The Masterbuilder - March 2013 · www.masterbuilder.co.in
cleaner sites since the self-supporting
components don't require shuttering or
scaffolding. Future extensions/modifi-
cations or dismantling/relocating can
also be accommodated easily.
The Steel Saga: Impact of Fluctuating
Price
The usage of steel and especially in
pre-engineered buildings is growing
very rapidly in the Indian construction
industry. Steel accounts for 65-75 % of
the total raw material cost of a PEB.
Thus availability and pricing of steel
does make lot of difference to organized
sector of PEB suppliers. The steel prices
are volatile in nature and the same are
driven by the global prices and are also
dominated by the demand supply sce-
nario prevailing on a particular day.
Hence, profitability of the company
can be impacted with adverse move-
ment in raw material prices which it may
not be able to pass on entirely to its cli-
ents, owing to competition pressure
and lack of escalation clause in its con-
tracts with clients.
Off late, fluctuating steel prices has
become a matter of concern which
could affect the overall industry growth.
Long-term rate contract is only possi-
ble if the steel purchaser is a very huge
player. This is because the margins are
higher in larger purchases with huge
players, so the steel manufacturer does
not mind having long-term rate con-
tracts. On the other hand, if the margins
are slim, no steel manufacturer wants to
enter into long-term contracts. Thus avai-
lability of steel in an affordable price is a
big challenge.
Speed Breakers and Way forward
India is fast turning out to be a fertile
ground for PEBs as the country is wit-
nessing a boom in the construction sec-
tor. But there are still quite a few issues
pertaining to the sector which are hold-
ing it back from exploiting its full poten-
tial. The lack of availability of international
quality materials like quality fittings,
insulation materials, wall claddings etc.
is hampering growth because it makes
the designers hesitant about opting for
PEB structures.
An Indian PEB manufactures asso-
ciation code of practice and PEB design
institute need to be initiated. Such efforts
will promote the merits and usage of
PEBs in the country. To be competitive,
this industry should look at investing
into training of workmanship, R&D,
manufacturing processes and also into
latest software to optimize the design.
It is essential that the industry focuses
on these areas in coming times - to
emerge as world players and to see a
wider application of PEBs in India.