Steel fabrication and PEB industry will play a major role in the growth of the Indian economy.
PV Mohan,
What are the latest demand trends of PEBs in the current construction market scenario?
The demand for Pre-Engineered Steel Buildings (PEBs) is rapidly increasing during the current phase of construction market, mostly driven by many key trends and factors. Some of these factors/trends include Sustainability and Efficiency because of increasing green building initiatives; Technological Advancements such as Building Information Modeling (BIM), automation, Artificial Intelligence (AI), drone, 3D printing; Labour shortages as PEBs require less manual labour; Cost Management as PEBs offer a cost-effective solution with lower construction and maintenance costs and reduces construction time and on-site labour costs; Increased demand in specific sectors such as industrial, commercial, and infrastructure projects; and many more trends. Moreover, PEBs are making inroads across various other sectors which were still not explored with demand for buildings which are new and innovative & tailored to specific industry needs and provide highly customizable PEB solutions to cater to unique project requirements and provide more value to clients.
These trends including increasing demand for PEBs across commercial high rises, data centers, bridge girders, railway stations, airport terminal buildings, etc. suggest that the popularity of PEBs will continue to grow, supported by advancements in technology, the push for sustainable construction, and the need to address labour shortages and cost challenges in the industry.
How is the role of PEBs growing in the infrastructure development projects in the country?
The role of Pre-Engineered Steel Buildings in infrastructure development projects is expanding significantly, driven by their numerous advantages and alignment with current industry trends. Some of the key factors contributing to the growth of PEBs in infrastructure development include Speed and Efficiency; Quick Construction; Reduced Labour Requirements; Cost-effectiveness; Lower costs due to reduced construction time, minimal wastage, and efficient use of materials. This makes them an attractive option for large-scale infrastructure projects.
Steel buildings have lower maintenance and high durability, sustainability and environmental impact because of energy efficiency, reduction in waste, savings in natural resources, steel as a material having versatility and adaptability to meet diverse applications for a wide range of industry segments, highly customizable with flexibility in design and functionality, etc. All these add up for their growing demand in the infrastructure development projects across India.
Overall, the increasing adoption of PEBs in infrastructure projects reflects their significant advantages in terms of speed, cost, sustainability, and versatility. As the construction industry continues to evolve, PEBs are likely to play an even more prominent role in meeting the demands of modern infrastructure development.
What are the key solutions from the company for PEB and allied segments?
Kirby is involved in the PEB and allied segments often encompassing a wide range of products and services designed to meet diverse construction needs. Some of the key solutions typically offered are Design and Engineering Services - custom design for any type of structure, drafting & detailing; Manufacturing and Fabrication with high-quality materials having precision by usage of automation & robotics; Construction and Erection - efficient construction techniques with high quality workmanship & safety thereby offering comprehensive services from initial design through to final construction, providing a seamless and integrated project delivery.
Other services also include energy-efficient designs that lead to sustainability and green buildings; project management & after sales support; etc.
Kirby leverages its expertise, technological advancements, and comprehensive service offerings to meet the growing demand for efficient, sustainable, and versatile PEB solutions in the construction industry.
What are the key challenges in steel and other raw materials for PEB structures?
In the context of PEBs, the demand-supply scenario of steel and other materials presents several challenges that can impact project timelines, costs, and overall feasibility. Some of the key challenges are fluctuating steel prices because of global economic conditions, raw materials costs; supply chain disruptions because of logistics issues & other global factors; Quality and standards such as maintaining consistency in quality of steel and complying to regulatory practices both local & international; Demand-supply imbalance because of high demand during economic boom, large infrastructure projects, competition from other sectors; Environmental and sustainability concerns; etc.
Some of these challenges can be mitigated to a certain extent by diversified sourcing; long-term contracts with steel suppliers; inventory management; advanced planning, etc.
What kind of growth are you expecting for your business in the PEB segment?
PEB industry has got immense potential to grow in the coming years as the PLI scheme would bring in huge investments in the manufacturing sector thereby leading to increase in demand for large scale Grade A warehouses. Other projects such as Atmanirbhar Bharat, Make in India, Industrial Corridors, National Investment & Manufacturing Zones, Gati Shakti Plan, Freight Corridors, etc. will attract huge investments thereby increasing the demand for PEBs. This is phenomenal and it will drive the overall economy as there is a huge growth potential in India over the next few years where PEB industry will dominate and create its own space in this growing construction segment. Kirby India being a leader will continue to achieve excellence and create new benchmarks for the industry as a whole.
How is the demand growing for your products and solutions? What are your expansion plans to meet the market demand?
The demand for PEBs is experiencing significant growth. Construction with steel is yet to penetrate in many areas of the country while traditional construction using cement continues to dominate. As the penetration is very low, there is huge scope for steel construction in future. The good news is that the mindset about steel buildings is slowly changing and hence see a good opportunity in next few years. Steel construction has already made an impact on new segments like airports, sea ports, complex factory building, large warehouses, cold rooms, data centers, and more. Thus, steel fabrication/PEB industry will play a major role in the growth of the Indian economy in coming years and Kirby India being a market leader and innovator, is well-positioned to lead the PEB sector in coming future.
We have set up our third factory in Halol, Gujarat which commenced operations from January 2023. This has taken our total capacity to more than 250,000 MT per annum with state-of-the-art facilities strategically located in South, North and West to meet the customer demands within that regions. Furthermore, we are also expanding our Halol facility with addition of another 50,000 MT thereby taking the total capacity of Kirby India to 3 lakh MT per annum by Q4 2024.
