Kirby expecting momentum in PEB market

“Though the industry growth has been subdued in the recent times due to current economic slowdown, we expect a positive growth momentum in PEB market in future,” emphasises D Raju, MD, Kirby Building Systems India
Kirby India has always been in the forefront of innovation by investing in new technologies and evaluating the performance through continuing product development. In an exclusive interview with ACE Update, D Raju shares how pre-engineering buildings are revolutionising construction industry today.
What is the status of PEB industry in India? Where do you see PEB industry in the coming years?Use of steel, especially PEB, is growing very rapidly in the Indian construction industry. In 2000 when Kirby started its operations in India, PEB concept was not well known. In the past decade, the industry has grown rapidly at an average of 15-20 per cent per annum. Though the industry growth has been subdued in the recent times due to current economic slowdown, we expect a positive growth momentum in PEB market in future, given improving investor sentiment and reforms announced by the government. Also, Indian Government has planned to invest $ 1 trillion in infrastructure segments in its 12th Five-Year Plan (2012-2017). PEB market is generally associated with investments and growth in the industrial and commercial sectors, but Kirby has ventured into new application areas like power plant structures, bridge girders, metro stations, shipyard structures etc. The upcoming national elections, where formation of stable government is expected, will also give a boost to the Indian economy.
Kirby India has always been in the forefront of innovation by investing in new technologies and evaluating the performance through continuing product development. Integrating the company’s strength and expertise along with innovation has helped the company lead the Indian PEB market. Apart from the functional requirements, the company has incorporated curved roof panels, wall claddings, flashings, Alucobond panels or other such features to improve the aesthetics of the building as the industry is witnessing a new trend with demand for structures that are different in all aspects.
In the developed markets, PEB is already being used for low-rise structures (G+5) such as offices, hospitals, retail malls, housing and resorts. In India, PEB is yet to venture in these areas. For instance, over the past 5 years, Kirby India has made technical improvements in product cost, construction time and aesthetic efficiency. The company has incorporated curved roof panels, wall claddings, flashings, Alucobond panels or other such features to improve the aesthetics of the building. These improvements allow much more pleasing aesthetics to be added to pre-engineered steel buildings.
The commercial building sector in India is estimated to reach a target of 20.44 billion square feet by 2030 from 7 billion square feet in 2010. It is expected that nearly 34 per cent of 2030 target had already been constructed and about 66 per cent of the building stock is yet to be constructed. Kirby is planning to venture into this segment as it is expected to provide very high volume of business in coming years, owing to the shortage of homes which is expected to grow at rapid pace due to increasing urbanisation with more than 40 per cent of Indian population expected to live in cities by 2030. Thus, PEB will emerge as one of the preferred building solutions for both residential and commercial segments in near future.
Pre-engineering buildings are revolutionising construction industry today. What are the driving factors for the industry?Indian construction industry has evolved from its initial preference toward conventional and RCC structures to the PEB in low-rise industrial buildings in the last decade mainly because of rapid economic growth, rising middle class and increasing disposable incomes. PEB concept is well established in North America and European countries as well as gaining popularity in India, making inroads in commercial, industrial as well as residential segment across rural and urban areas. It is 30-40 per cent faster than masonry construction and provides good insulation effect. It is also suitable for construction in remote and hilly areas. There are various advantages related to the PEB, and they can easily address India’s huge infrastructural requirements in housing, commercial, industrial, etc.
What are the challenges faced by PEB industry? Like many other precision industries in India, PEB industry is also facing many challenges. PEB concept gained impetus in the Indian markets in the early 2000. This concept was also accepted due to its promotion on large scale and opening up of the economy. New facilities by multinationals are also giving preference to metal buildings over conventional methods.
Changes in government regulations, industry friendly policies and promotion of India as preferred FDI destination also resulted in heavy FDI inflows, giving a further boost to the PEB technology. Over the last 7 years, many players have entered the PEB market. With more players in the scene, we will have more PEB buildings around, thereby increasing the visibility and demand for these buildings in the market.
One of the main challenges faced by the PEB industry in India include acceptance among the Indian corporate which is still moderate when compared to developed economies. But in the last decade, there has been increased acceptance of PEB due to rapidly expanding industrialisation in the country. The changing market environment has led to an increase in shift toward more advanced technologies with one of them being PEB due to increasing demand from customers for faster project completion which in turn will give faster returns on their investments. Thus, use of PEB is definitely expected to increase across the country, and the industry is expected to catch the growth curve in coming years.
But the current economic conditions has changed the dynamics of the industry with new investments or capex being virtually on hold due to demand slump in the domestics market, weak exports, low business and consumer confidence, rising current account deficit, weakening rupee, and many other internal and external factors. The PEB industry in India has experienced tremendous growth over the past 13 years which has increased the awareness among consultants and customers. In current scenario, anyone planning to put up a factory or a warehouse immediately thinks of a PEB as the industry is yet to achieve its true potential.
There is an increased emphasis on green buildings. What impact does it has on the PEB industry?The heightened emphasis on green building construction is also poised to push market expansion for eco-friendly buildings. Steel is the preferred material for all prefab structures and PEB use steel which is more than 90% recyclable. These buildings are cost effective, energy efficient and provide better quality environment as they are cooler in hot conditions due to the favourable roofing material and natural ventilation.
Kirby designs all its buildings in such a way that it can easily accommodate all the green building features which will help the customer in getting maximum points to obtain green building rating. The use of skylights and solar panels on rooftops will meet daylight and captive power requirements, while, at the same time, reducing emissions and gaining carbon credits under clean development mechanism. Effective usage of insulation material, louvers and other materials also help in making Kirby buildings as green buildings. All the materials used in making of Kirby buildings are recyclable and are not harmful to the environment. Kirby is always looking forward to be a part of eco-friendly products and the ongoing green revolution in the construction industry.

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