BUSINESS PROPOSAL PLAN

FOR PEB STRUCTURE

IN INDIA
Pre-engineered Building (PEB) System hit Indian construction market:-

Habeebur Rehman Mohammed

B.E.,M.B.A.,M.C.A. & M.Tech.(Structures)
Managing Director

India has the second fastest growing economy in the world and a lot of it, is attributed to
its construction industry which figures just next to agriculture in its economic contribution to the nation. In its
steadfast development, the construction industry has discovered, invented and developed a number of
technologies, systems and products; one of them being the concept of Pre-engineered Buildings (PEBs). As
opposed to being on-site fabricated, PEBs are delivered as a complete finished product to the site from a
single supplier with a basic structural steel framework with attached factory finished cladding and roofing
components. The structure is erected on the site by bolting the various building components together as per
specifications. PEBs are developed using potential design software. The onset of technological advancement
enabling 3d modelling and detailing of the proposed structure and coordination has revolutionised
conventional building construction.

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 PEBs have hit the construction market in a major way owing to the many benefits they possess. They
exemplify the rising global construction, technology and while they oppose the practice of conventional
building construction they simultaneously have taken it to a higher level too. Worldwide, they are a much used
concept with studies revealing that 60% of the non-residential low-rise building in USA are pre-engineered; for
India the concept has been gaining momentum and the scope of growth is guaranteed looking at India's huge
infrastructural requirements. Studies already validate that India has the fastest growing market in the PEB
construction segment. The scope of using PEBs ranges from showrooms, low height commercial complexes,
industrial building and workshops, stadiums, schools, bridges, fuel stations to aircraft hangers, exhibition
centres, railway stations and metro applications. While we are still to see PEBs being used in residences in
India, one can see their optimal use in warehouses, industrial sheds, sports facilities etc. The Delhi Airport and
the metro projects of Delhi, Bengaluru and Mumbai are also examples of PEB applications.

Pune based Tata BlueScope Building Solutions: a division of Tata BlueScope Steel Limited (an equal
joint-venture between Tata Steel and BlueScope Steel (Australia) supplies PEB solutions and takes single
source responsibility for their design, manufacture, shipment and erection. With developing structures
conforming to AISC, MBMA or IS standards, Mr Rohit Ranjan, General Manager, Marketing adds, "Steel
construction is evolving from boxlike steel structures to aesthetically pleasing designs. Initial acceptance of
metal building systems has been high in industrial applications, followed by infrastructure and commercial
structures. However as awareness is growing, metal buildings are being considered for residential applications
as well."

Interarch Building Products Pvt Ltd with headquarter in Noida is India's leading turnkey pre-engineered
metal building company and has myriad construction solutions including advanced Pre-engineered Steel
Buildings. Specialising in airport roofing and ceilings for over two decades, one of their coveted projects is
DIAL Terminal 3 (Terminal 3, IGI Airport at Delhi) with a seven-layer roof installed over 2,00,000sqm roof
area covering the entire airport. On the absence of PEB's in the residential sector in India, Mr Gautam Suri,
the firm's CTO & Founder Director notes, "In India, modular construction is still the preferred choice over PEB
systems for the residential sector which is mostly due to lack of awareness about the benefits of PEB with the
general perception being that they are expensive. Having said that, I would also like to mention that the PEB
industry is slowly and steadily gaining its hold in the commercial /residential sector and will certainly see
widespread application soon."

The PEB industry has evolved over the years. What started as a role limited to design and
manufacturing PEBs, has widened today to making firms responsible for the erection of the structures too.
Citing facts, Mr Ranjan estimates the PEB market in India to be around Rs.4,000 crores currently. "It has been
growing at over 15% for the last few years, and is expected to demonstrate a similar, if not better growth in
the years to come," he states.

A PEB system in totality consists of a structural system, sandwich panels, roofing, exterior facade and
accessories. The PEB concept based on a proper design usually involves a thorough project information data
including complete details like building parameters, grade of steel, secondary member details, paint coat on

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steel members, welding, anchor bolts steel grade, roof & wall liner / panel, insulation, sky light, gutters, facia,
mezzanine, ridge ventilation to name a few. Following this input, the drawings for general arrangement,
Anchor Bolt & Template Fabrication & Erection are prepared.

Advantages
Ideal for construction in remote and hilly areas, PEBs offer a complete building system of energy
efficient, optimum weight and cost customised fitted requirement. They can be customised as per the
climate/design requirements at the site. Since only the bolting needs to be done on the site a quicker
construction speed compared to conventional construction is possible. The flexibility of PEBs to be casted even
while the foundation is being laid also leads to saving on time. PEBs don't require curing time like concrete and
mortar and boast of an immediate occupancy. The quality of the structure being controlled in the factory is
superior to that achieved in masonry construction. The time savings lead to cost savings too, which also get
enhanced by the lower operating and maintenance costs.

Citing cost and time as the most significant advantages of PEBs, Mr Ranjan avers, "A PEB can be erected
considerably faster than conventional buildings, and at a lower investment. This means building owners can
start generating profits from their operations in a shorter time frame. Contemporary erection practices
adopted by some PEB manufacturers, like the use of boom lifts instead of scaffolding, make PEBs a safer
option as well." From the safety point of view, steel buildings are also resistant to earthquakes and cyclones.

In times when the crusade for green buildings is on with much vigour, PEB structures come to the
forefront with a high proportion of recycled content, being environment-friendly and energy efficient. With
several building owners asking for LEED certifications to demonstrate their contribution to reducing Carbon
Footprint, Tata BlueScope Building Solutions is currently offering a solution for installing Photo-voltaic systems
on their MR-24® Standing Seam roof panel. Noida based Supertech (India) Pvt Ltd, a leading steel building
solution provider and a manufacturer of PEBs complying to ISO 9001-2008 certification have come out with
their new product - Standing Seam Roofing System with different types of insulation that help in conservation
of energy and reducing noise pollution. Mr. Puneet Khanna, founder of the company adds, "We are providing
transparent sheets on the roof to provide natural lights and turbo vents to control air pressure & temperature
of the PEB."

Lloyd Insulations (India) limited, a 54+ years company engaged in the field of design, manufacturing,
fabrication, engineering & contracting works entered the pre-engineered building construction in mid 90s and
built one of the first Pre-engineered steel buildings in 1997 for Delphi Automotive, Greater Noida. Lloyd's
commitment to energy conservation has been well-known. Mr. K K Mitra, Vice President (Mktg & Tech) says,
"We have insulated prefabricated sandwich panels of PUF/PIR/RW, which can be used on roof and wall of PEB
for energy conservation. Similarly, we have got specialized grade non-combustible, Water Repellant Grade
Rockwool Slab, which can be used below the metal profile sheet roofing as insulation for preventing heat from
coming inside the PEB building." Lloyd is now coming up with application of solar panels over metal sheet &
sandwich panel roofing as a composite system. Hence they will offer PEB with insulated roofing and Solar

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panels fitted on to it. "We are thus offering Energy Conservation as well as Energy Generation – A unique
combination," adds Mr Mitra.

PEBs are much lighter in weight than normal steel buildings owing to their high proportion of recycled
content. Interarch Building Products Pvt Ltd, though catering to the heavy steel and industrial building market
have recently introduced a light building system that is more efficient and a lighter system of construction
catering to economical buildings, housing systems, light weight homes, villas, and light weight construction in
remote locations.
PEBs can also prove to be a good bet for affordable housing owing to their speed of construction and
low cost, thus helping in rural development projects in India. Their design flexibility is also a plus with wide
ranges of available wall and roof sheeting (granite, stone cladding, brickwork, ACP's etc) and interface details
between steel and other materials. PEBs are low maintenance structures requiring only periodic cleaning of
roofs, painting and annual washing of eave gutters. The ease of construction makes them hassle free and
bestows cleaner sites since the self-supporting components don't require shuttering or scaffolding. Future
extensions/modifications or dismantling/relocating can be accommodated easily. Mr Mitra explains, "Usually on
the PEB structure, flanges or punched holes are provided so that for addition of any future building elements,
these flanges can be utilized and welding can be avoided."

PEBs offer large clear spans in buildings (up to 90m) – the reason why they are suitable for structures
like aircraft hangars and sports facilities. Unlike traditional construction, they don't get affected by weather
elements like wind, rain etc. PEB structures are an outcome of a single responsibility as opposed to multiple
responsibilities in traditional constructions, leading to better organisation and less confusion.

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Challenges
The application of PEB's is economical and speedy for low rise buildings only (with the maximum eave
heights ranging between 25-30 metres). Special care needs to be given to the joining of pre-fabricated
sections and to the packing of such sections which involve huge transportation costs. There are challenges
with the joinery details which can lead to leakage. But in some cases like the 'FM Approved' MR-24 Standing
Seam Roof System (offered by Tata BlueScope Building Solutions), there is one of a kind's 360o Pittsburgh
Double Lock seam which assures leak-proof performance.

Also very large prefabricated sections can only be placed on the site by making use of cranes. A PEB
structure due to its assembly of various parts requires a painstaking attention to detailing requiring high
skilled workers – the shortage of skilled labour proving to be one of the lesser disadvantages that they have
over traditional masonry construction.

Steel has a lower fire resistance as compared to concrete and other construction materials. It also
faces issues of buckling, stability and corrosion. Indian Codes still need to be developed which PEB
manufacturers can adopt unanimously. "Steel is a more versatile material than concrete and can cater to a
wider range of applications. However, it needs architects to visualize how to work with the engineering and
systems that allow steel to be effective. Although now most architects in the commercial and industrial spaces
are well versed with steel, the introduction of new improved steel codes catering to pre-engineered
construction are still restrictive as they are still not utilizing the maximum efficiency of steel. Due to the
conservative criteria laid down in previous codes, the current updated versions are also not as efficient as
other steel design guidelines used around the world," adds Mr Suri.

Mr Khanna while maintaining that PEBs are the fastest growing segment in the low-rise construction
industry with a substantial role in the development of infrastructure projects adds, "The major challenge in the
sector is that people are still looking at conventional method of construction and not considering the speed &
long-term benefits of metal buildings. For this, we are planning to expand the marketing network and project
offices throughout the country to serve our clients in a better way."

Making the sector organised will also yield positive results. The supply incase of PEBs has been seen to
be much more than the demand since many unorganised segments are supplying them at very low costs,
compromising on their quality and adopting codes according to their wishes.

Transportation costs are a challenge in PEBs but companies are taking care of the same. Noida
headquartered Era Buildsys Ltd (EBL) is an ISO 9001:2000, ISO 14001:2004 and OHSAS 18001:2007 certified
company and comes with a strong experience of pre-engineered buildings. Mr Amit Bharana, President, EBL
mentions that in order to manage the costs regarding the material and transportation, EBL ensures full
utilization of the capacity of the vehicle. Also, different transporters & vendors are approached for different
locations to get the best price. For maintenance of the material, the firm ensures one time planning for
procurement, proper cutting plan and less rework.

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 Mr Mitra points out that since the product transportation is related to its dimension and usually
transported on trailers, hence the approach road condition is very important. Citing transportation as an
important component in PEBs he emphasizes on proper transportation linkage and their loading and unloading
factors and elucidates, "Transportation needs to be properly planned in terms of the product loading and also
one needs to pay heed to the systematic selection of the component as to which one has to reach first."

Government's Role
The government could do well with reducing the tax on PEBs to facilitate their easy acceptance by all.
A code for PEB application becomes mandatory to recognise the concepts of advanced steel design, which will
also lead to PEB becoming recognised as a separate entity.

Accepting that the Government is taking major steps to promote the PEB industry, Mr Amit adds, "As
per the government's projection of 1$ trillion investment in infrastructure segment during the 12th five year
plan, the expected economic growth would be approximately 8.5% which may even rise to 9%. This is surely
very crucial for the infrastructure segment as growth in the infrastructure investment is expected with this
projection of the government. Although, the fluctuation of prices affects the availability of the capital goods,
tax structures etc, the SEZ tax benefits and excise holiday zones encourage more constructors to invest into
this sector. Closely looking at the sectors of investment pre-engineered buildings will have an advantage in the
construction industry."

Mr Mitra is of the view that the government should take steps like removal or minimisation of excise
duty components in PEB manufacturing. He explains, "The latest budget has witnessed the increase of excise
duty from 10.3% to 12.36%. The government should notify Industry owners and Government agencies to
promote the steel building concept especially for residential building construction. All constructions in remote
areas should be made mandatory with steel construction methodology. Benefits like fast construction and
green features in a building should be highlighted."

Mr Khanna opines that the controlling of the high fluctuations on the steel prices would be good for PEB
structures.

Conclusion
PEBs have a lot of advantages and some challenges that are being confronted successfully. It is
important to realise that in their case whatever can be done in advance should be done in advance. Efforts
should be made to reduce the number of parts and material and use light weight elements to save on the
transportations costs. However, the most important step is to increase the awareness amongst people so that
there can be a shift from conventional structures to PEBs. Firms like Tata BlueScope Building Solutions are
focusing on training and development of their partners and vendors as well – the industry is hoping to see a
wider application of PEBs.

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