Telescopic View of Industry

India will be witnessing a steady rise in infrastructure industry as the real estate industry has grown from family based entities with focus on single products and having one market presence into corporate entities with multi-city presence having differentiated products. The strong growth in construction industry is fueled by higher spending on housing, road, ports, water supply, rail transport and airport development. Construction industry is viewed as development indicator of India.

The sector is labor-intensive and, including indirect jobs, provides employment to more than 35 million people. Because of the backward and forward linkages that this construction sector has with other sectors of the economy, it can be termed as major employment driver sector. About 250 ancillary industries such as cement, steel, brick, timber and building material are dependent on the construction industry. A unit increase in expenditure in this sector has a multiplier effect and the capacity to generate income as high as five times. The Indian real estate industry is likely to grow from Rs. 490.03 billion in 2005 to Rs. 4,060.24 billion by 2015.

Construction majors are currently experiencing liquidity constraints due to tightening funding norms being employed by institutional financers. The industry is also facing squeezing margins due to increasing commodity prices. There is a huge scope for foreign investment in the infrastructure and construction industry. Already, a number of international construction majors, including those from South East Asia, have entered the Indian market. However, high gestation periods and shrinking finances have tempered the sentiments somewhat.

Fore Vision:

The Indian economy has witnessed considerable progress in the past few decades. Most of the infrastructure development sectors moved forward, but not to the required extent of increasing growth rate up to the tune of 8 to 10 per cent. In the years ahead, the construction industry in India has to overcome various challenges with respect to housing, environment, transportation, power or natural hazards.

India offers a favorable business environment and a stable political system. The one and five-year risks of investing in the Indian infrastructure sector are less than the world average. The country's infrastructure sector presents lower risks than the other sectors of the economy.

Indian infrastructure and construction industry has grown exponentially, in part due to massive government impetus and in part due to high market sentiments. The country, which has initially targeted the low-hanging fruits, is now poised to take up more complex and technologically intense projects. The focus has moved from cost efficiency to time and competence. The Indian regulatory environment is expected to further boost the construction industry in order to provide the basic physical infrastructure for the nation. Careful selection of project, in-depth understanding of taxation structure, proper feasibility analysis and tie-up of funding would considerably smoothen the way forward.

Today, India is the second fastest growing economy in the world. The Indian construction industry is an integral part of the economy and a conduit for a substantial part of its development investment, is poised for growth on account of industrialization, urbanization, economic development and people's rising expectations for improved quality of living.

With the present emphasis on creating physical infrastructure, massive investment is planned in this sector. This requirement is of an immense magnitude. Better construction management is required for optimizing resources and maximizing productivity and efficiency. The outstanding performance under demanding situations in the past will stand in good stead and give confidence to the Indian construction industry to bring about an overall development in the infrastructure of the nation.

Segments of Construction at SIL
• Infrastructure development; including construction and maintenance of roads / highways, bridges, including projects on public private partnership (PPP) model, industrial parks, work-shops, hospitals, educational institutions.
• Civil construction including, Government staff quarters, hostel buildings and auditoriums.
• Residential and commercial real estate construction. As described earlier, the company being a ‘Class 1A contractor’ with the Public Works Department, Government of Maharashtra, can bid for a range of contracts without restriction on any cost parameters.
Feathers in SIL’s Cap (Projects):

• Construction of Multipurpose Indoor Hall (Stadium)', at Telegao, Goa
This stadium is designed for multiple types of events such as volleyball, basketball, table tennis, Badminton etc. The stadium provides facility to host any of above mentioned indoor games.

SIL Group - Structure