OIL & GAS
The petrochemical industry is among the fastest growing in India. The country has petroleum refining-capacity of over 194 million tonnes per annum (mtpa) and the world's largest grassroot refinery (capacity of 32 mtpa) is located in India at RIL, Jamnagar, Gujarat. Furthermore, India has over 25 oil refineries with new and expansion projects expected by major players such as RIL, BPCL and Indian Oil. In every aspect of Refinery work, from construction of new ones or maintenance of existing ones Cranes are essential. As an example the ongoing construction of the Reliance J3, Project in Jamnagar, Gujarat there are over 2,500 Cranes present!
The Indian government has also planned to lay 13,000 kilometers of new national highways and 1,58,000 kilometers of new roads in rural areas. Environment clearance has also been recieved for 5700 kms of National Highways. Because of this there will be a requirement of large truck mounted Mobile Cranes for building of the 1000’s of new bridges that will be needed to connect the newly built highways.
Metro Rail has also been a major source of deployment to the Crane Industry. With the expansion of the Delhi Metro to Faridabad and the announcement and start of construction of Metro’s in Lucknow, Chennai, Kochi and Bangalore there is a steady demand of Crane till 2025 just in these existing cities. Additionally with MetroRail playing a key factor in the Smart Cities initiative launched by the government there will be an additional requirement of Cranes in this sector.
The Indian automotive industry is one of the largest in the world and accounts for ~22% of india's GDP. India produced 21.48 million vehicles during the FY 2013-14. Driven by an expanding middle class and increasing interest in rural markets are a couple of the key drivers poised to maintain India as a global leader in the automotive industry.
India is the second largest cement producer in the world and by the year 2025 is expected to reach a market size of 550-600 million tonnes per annum (mtpa). The cement industry is driven by the housing sector and infrastructure industries. With the Indian government’s recent foray into developing 100 smart cities in the country, the cement industry is expected to see considerable growth in the coming years. Building of new Cement Plants or expansion of existing ones require Cranes for essential construction. Also typically the hire period of Cranes when building a new plant is sometimes as long as 24 months.
India’s wind capacity in 2014 was 22 GW and is estimated to double to 47 GW by 2020. Thus, approximately 25,000 individual installations of towers are expected to be executed. Large Crawler Cranes are essential to install the Wind Turbines. The wind energy sector is a steady source of business for the Crane industry.
The rapid development of the power sector will play an important role in India’s economic development. India’s per capita electricity utilization at only 900 kWh is significantly lower than that of Europe (7,000 kWh) and the US (14,000 kWh). The electricity generation capacity is expected to grow at a CAGR of ~6% and is projected to reach 700 GW by the year 2032. This necessitates an investment amount of more than $ 500 billion over the next 20 years. Thus, India will see the commencement of new power projects along with the up-gradation of current facilities. This will lead to a sustained demand for large Crawler and Mobile Cranes over the next decade or so.
REAL ESTATE INDUSTRY
The Indian Brand Equity foundation estimates that the Indian real estate market is expected to reach US$ 180 billion by the year 2020. During the period FY08-20, the market size of this sector is expected to increase at a CAGR of 11.2 per cent. Though the housing sector alone contributes 5-6 per cent to the country's Gross Domestic Product (GDP), retail, hospitality and commercial real estate are also growing significantly.