Increasing infrastructure investments and industrial production have bolstered the Indian Engineering, Procurement and Construction (EPC) sector. Growth in the Engineering sector is expected to scale up in order to meet our infrastructure requirements in the coming years. The engineering sector is interlinked with the manufacturing and infrastructure sector and hence of prime importance to India’s economy. The Make in India campaign is on full swing at the moment with the aim of making India a global manufacturing hub and boosting our exports. It is also likely to give a strong boost to the construction sector which constitutes 10% of India’s GDP. The government is pitching for investors to invest in building hotels and townships in the country. The PM has promised creation of 100 smart cities by 2020. The FDI rules in the construction sector have been eased with 100 % FDI permitted for creation of these townships. In order to fuel the manufacturing industry, the government has relaxed the excise duties on factory gate tax, vehicles, consumer durables and capital goods.
The EPC industry has finally caught the world’s attention with big conglomerates and global companies showing interest. There is demand for our Engineering exports in the Europe, Gulf and US and this year the engineering exports are expected to touch the US$ 70 billion mark, which would be a growth of 15% from last year. Engineering goods constitute about 60% of our total exports. The idea of Digital India has helped us take momentous strides towards the development of its engineering sector. Due to digitization of all the operational systems of government sectors, many foreign players are keeping a look at the e-tendering and e-procurement opportunities in this sector.
The key highlights of the Indian EPC sector are:
• Inorganic route to venture into international markets
• Global construction giants eying India’s growth story.
• The sector is supposed to achieve the major share of the proposed infrastructure investments in Twelfth Five Year Plan (2012-17).
• The urban infrastructure and telecommunications sectors are also expected to witness enhanced investment.
• Reforms are awaited for the unbundling of the railways sector.
Challenges faced by the EPC Sector
The sector has witnessed many consistent changes over the past few years,
• Constant fluctuating prices of materials and shortage of skilled manpower.
• Shortage of machinery and materials
• Most of the infrastructure projects get delayed. Alleviating time is a big concern.
• There is a constant increase in project sizes, scale and market maturity leading to cost overruns.
• Excessive tendering crippled with limited scope
• Dearth of geological supply of raw material and new technologies in the auction bid.
• High procurement cycle time
• Increase in production, transportation and investment costs
• Difficult operations while reverse auction
• Vendor Identification & Screening
How C1 India adds value?
We, at C1 India, understand the variety, needs and the changing demands of the industry. We help you harness the untapped potential in the e-procurement, e-tendering and e-auctioning segment. We help EPC companies to transform, innovate and optimize the procurement space to build tomorrow’s enterprises. We provide customized solutions which are in tune with the EPC industry’s unique requirements and help address challenges around optimizing efficiency in the procurement process.
Key solutions that we offer for the EPC Industry:
• Web RFx System – An online RFx System, allow teams to work through globe with open vendor participation.
• Reverse Auctions – A tested solution where cost reduction is primary objective.
• Forward auction for the disposal of scrap material and machinery.
• Contract Management – System for track & control Green field project progress.
• Sourcing of Vendors & Vendor’s Database
• With a customer oriented approach, our team always aims to deliver more than expected and value-add to our customers’ growth and development.
• Visibility and control of the supply chain.
• Risk management.
We give you leading edge results, enhanced business transformation capability, and immense business satisfaction with cost-efficient e-procurement, e-tendering, reverse e-auctioning and forward e-auctioning segments.
We have worked with who’s who of the EPC sector such as Engineers India Limited, RITES, Ultratech Cement, Ambuja Cement, Birla White and many other multinational organizations.
Birla White, which has a strong global presence in the developed European and fast-growing Asian markets registered 8% savings on the opening price in procuring 4 million PP Laminated Bags of different sizes for White Cement beyond other benefits such as, reduced time to procure and increased market outreach.