MARKET RESEARCH ON CONSTRUCTION INDUSTRY IN INDIA This chapter comprises of the following sections; 1. Introduction 2. Outlook of Construction Industry 3. Overview of the Construction Industry in India 4. SWOT Analysis on Construction Industries in India 5. Problems faced by Construction Industry 6. Leading Construction Companies in India 7. Conclusion
Introduction The construction industry is the second largest industry of the country after agriculture accounting for 11 percent of India’s GDP. Indian construction industry employs 32 million people and its total market size is estimated at Rs. 2,48,000 crores (35,640 million €). The level of a country’s development is reflected by its infrastructure and the desperate need for infrastructure development has increased the demand of the construction industry in India.
The activities of the construction industry include working on new structures as well as additions, alterations, and repairs to existing ones.
Segmentation of Construction Industry in India
o Residential, industrial, commercial, and other buildings. o Sewers, roads, highways, bridges, tunnels, and other projects. o Specialized activities such as carpentry, painting, plumbing, and electrical work.
Outlook for Indian construction industry
o Expected growth of wage and salary jobs in the construction industry will be about 15 percent through the year 2012.
Market Research in India
o The demand for residential construction is expected to continue to grow. o Construction of nursing homes, Old Age homes, and other extended care institutions also will increase due to aging population.
o Employment in heavy and civil engineering construction is projected to increase due to increase in highway, bridge, and street construction.
Overview of Construction Industry in India
o India is the second fastest growing economy in the world. o Construction is the second largest economic activity after agriculture. o Construction accounts for nearly 65 per cent of the total investment in infrastructure.
o Investment in construction accounts for nearly 11 per cent of India’s GDP. o €239.68 billion or Rs. 16,747.67 billion is likely to be invested in the infrastructure sector over the next 5 to 10 years.
o Investment into this sector could go up to €93.36 billion or Rs. 6,521.06 billion by FY 2010.
o The real estate and construction sectors received FDI of €216.53 million or Rs. 15.13 billion in the first half of the current fiscal year (2008).
Indian Real Estate Sector
o Real Estate is a €8 billion or Rs. 558.94 billion (by revenue) Industry in India. o It is projected to grow to €34 billion or Rs. 2,375.61 billion by 2010. o It is the second largest employing sector in India. o Real Estate is linked to about 250 ancillary industries like cement, brick and steel through backward and forward linkages.
o There will be a demand for over 24.3 million new dwellings for self-living in urban India alone by 2015.
o €16 billion or Rs. 1,118.06 billion investment will be required over the next five years in urban housing.
Market Research in India
Global Majors in India Due to significant investment opportunities emerging in this industry, a large number of international real estate players have entered the country. FDI inflows into this sector are estimated to be between €3 €3.50 billion or Rs. 244.50 billion. billion or Rs. 209.59 billion and
o Jones Lang LaSalle (JLL), the world's leading integrated global real estate services and money management firm, plans to invest around €646 million or Rs. 45.13 billion. o DAMAC Properties would invest up to €2.9 billion or Rs. 202.67 billion. o Merrill Lynch & Co has bought 49 per cent equity in seven mid-income housing projects of India's largest real estate developer DLF in Chennai, Bangalore, Kochi and Indore for €243 million or Rs. 16.99 billion....