Construction cos should rethink business models: CIDC-Accenture ...

Jul 17, 2012, 04:18PM IST

Delhi NCR

Volatility in today?s business environment is making it necessary for construction companies to rethink their business models. Building a robust order pipeline with forays into new markets and sectors is the top priority for the construction industry in order to achieve growth.

This is what was stressed on by industry stalwarts and dignitaries who gathered recently in the city to launch a report ? ?Achieving High Performance in the Construction and Infrastructure Industry?.? The study was conducted by Accenture in partnership with CIDC (Construction Industry Development Council) and The Economic Times (ET Now).

The meet stressed how infrastructure, especially construction, is vital for the growth of the Indian economy. Dr. P.R. Swarup, Director General, CIDC, addressing the meet, dwelt on how companies need to continuously focus on operational efficiencies to maintain margins. ?Project management, superior engineering and design, and efficient procurement of resources will be the essential levers for operational excellence. Adoption of best practices across areas including green construction technologies, health, safety and environment issues, is critical for Indian companies to match up to their global peers.?

According to the Twelfth Five Year Plan, infrastructure is slated to attract investments to the tune of US$1 trillion?double the US$0.5 trillion allotted in the Eleventh Five Year Plan. Infrastructure growth will have a positive impact on the overall Indian economy and also help in creating significant job opportunities. Over the next decade, India will continue to be among the fastest-growing countries in terms of construction output. While globally the construction market is expected to grow at 5.1 per cent and 4.7 per cent during 2010?15 and 2015?2020, respectively, in India it is expected to grow at 9.9 per cent and 7.6 per cent during the same periods.

By 2020, India is expected to emerge as the world?s third-largest construction market. Large infrastructure investments and growing urbanisation will fuel this. This, coupled with underinvestment in housing and urban infrastructure resulting in pent-up demand, is expected to drive growth in the construction industry.

But are we ready to take on such responsibilities? The study identifies the key priority areas, critical roadblocks and interventions expected from the government for the Indian construction industry to match up global standards.

?Indian construction sector is capable of executing large complex projects as there are companies with the required expertise in the market. The key to growth is an enabling environment,? says a project manager of a leading EPC company. This sums up the future of construction in India.

Indrani Rajkhowa Banerjee, MagicBricks.com Bureau

Source: http://content.magicbricks.com/construction-cos-should-rethink-business-models-cidc-accenture-study

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