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Constructing Sustainability

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Nikhil Bothra, Director, EPACK Polymers, brings to fore the environmental advantages of prefab building and how current challenges can be turned into opportunities.

In the face of escalating environmental challenges posed by conventional construction methods, exacerbated by factors such as the recent construction ban in Delhi due to severe air quality concerns, the imperative for a sustainable shift in building practices becomes more evident than ever. The construction industry’s significant energy consumption, substantial waste production, and contribution to CO2 emissions demand a re-evaluation of traditional approaches.
India, grappling with a staggering annual production of approximately 150 million tonnes of construction waste, shoulders a substantial burden, accounting for a substantial 35-40 per cent of the global Construction and Demolition (C&D) waste each year. This challenge is bound to intensify further with a growing population and an ever-increasing demand for housing and infrastructure in the country.
Enter prefabricated construction, often referred to as Pre-Engineered Buildings (PEBs), as a transformative solution aligning with India’s sustainable development goals. Prefabrication not only addresses environmental concerns but also presents an efficient alternative amidst the challenges posed by construction bans. As Delhi grapples with a temporary halt in construction activities to curb air pollution, the delayed project timelines underscore the urgency for resilient, eco-conscious building practices. Let us explore how PEBs can turn the current environmental challenge into an opportunity for sustainable development.
Water conservation: Traditional construction practices, deeply rooted in history, have historically often come at an environmental cost that is both significant and concerning. Traditional construction methods consume vast amounts of water for mixing concrete, curing, and other essential processes. In contrast, prefabricated construction is a game-changer as it utilises a remarkable zero per cent water during the construction phase. This is particularly significant in regions facing water scarcity, remote hilly regions where every drop counts. By eliminating water-intensive practices, PEBs help preserve this precious resource and contribute to a sustainable future.
Lower carbon emissions: One of the most compelling reasons to embrace prefabricated engineered structures is their significantly lower carbon
footprint. Traditional construction projects churn out massive waste, including surplus materials, excess packaging, and discarded debris. This waste not only strains landfills but also exacerbates environmental degradation. However, PEBs are environmentally friendly, emitting 60 per cent less carbon pollution during the construction process compared to conventional construction. This substantial reduction in emissions is achieved by streamlining the manufacturing process in a controlled environment, reducing energy consumption and minimising waste.
Shorter construction time: Time is money in the construction industry, and shorter construction periods are a win-win for both builders and the environment. Prefabricated solutions can reduce construction time by more than 50% compared to traditional construction methods. The efficiency of assembling building components in a factory
setting and transporting them to the construction site accelerates project timelines. This not only reduces the disruption caused by lengthy construction activities but also curtails associated energy and resource use.
Energy efficiency: PEBs are designed with energy efficiency in mind. The materials used in prefab construction provide superior insulation, maintaining a consistent interior temperature, regardless of external weather conditions. Also, India’s diverse climate can pose a significant challenge to the on-site construction process. Harsh weather conditions, including scorching heat, heavy rains, and extreme cold, can disrupt construction schedules, and expose a substantial energy drain by excessive heating or cooling. Prefabricated construction eliminates this issue by shifting most of the work to a controlled indoor environment. By offering enhanced insulation, PEBs contribute to significant energy savings and promote energy-efficient living by using renewable energy sources, such as solar panels or wind turbines.
Reduced material waste: The controlled environment of a factory setting ensures that PEBs have fewer defects and require fewer repairs and replacements. In contrast, traditional construction often generates considerable material waste due to on-site errors and over-ordering. PEBs’ streamlined manufacturing process significantly reduces material waste, making them a more sustainable choice. This also aligns with the global push towards responsible resource management and conservation.
Recyclability: Sustainability goes beyond the construction phase and extends to the life cycle of a building. In India, out of 150 million tonnes of construction waste every year only a mere 1% of this colossal waste is recycled, as projected by the Centre for Science and Environment (CSE). Such practices undermine the collective efforts towards a greener future and leave a lasting mark on the planet. When a building reaches the end of its life, PEBs can be dismantled, and their components can be repurposed or recycled as they are designed for disassembly and reuse. This cradle-to-cradle approach minimises a lot of waste and adds to the overall sustainability of PEBs.
Improved resource management: Prefabrication optimises resource allocation within the factory. Materials and resources are efficiently managed, reducing over-ordering and minimising resource wastage. This results in a more efficient use of resources, promoting sustainable practices and responsible resource management.
As we aim to build a greener tomorrow, embracing PEBs and sustainable practices is the first crucial step toward a responsible and eco-conscious construction industry. The choice is pretty clear, prefabricated construction paves the way for a more sustainable and efficient construction industry that safeguards our planet for generations to come.

ABOUT THE AUTHOR:
Nikhil Bothra, Director, EPACK Polymers
, heads the business development of the conglomerate. He carries on the legacy of the family business. He has taken the responsibility of spearheading the company’s expansion into the prefab segment by launching a brand-new domain of infrastructure development.

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

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The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

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Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

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Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

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Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

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UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

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