As I stumbled across the news about India’s fastest-built structure—a factory unit completed in a jaw-dropping 150 hours—I felt a spark of excitement. This 1.51 lakh square feet marvel, constructed at a cost of Rs 19 million, signals a seismic shift in how we perceive construction timelines. Just as instant noodles and grocery deliveries have redefined convenience, the construction industry is on the brink of a revolution with rapid project delivery. The prospect of customized homes being delivered as easily as your next online order is tantalizing.
The driving force behind this transformation is modular construction technology. Think precast, prefabricated, and pre-engineered structures that can turn building time from months into mere hours or days. In the precast method, concrete structures are fabricated in a controlled environment, transported, and then assembled on-site. Prefabrication takes it a step further, allowing entire modules to be constructed off-site and delivered ready for assembly. Pre-engineered buildings, often made of steel, follow a similar concept, with components fabricated in factories and then assembled at their final location.
While these methods have gained traction in countries like China, India has lagged. But with rapid urbanization, increasing investments in infrastructure, housing, e-commerce, and manufacturing, the tide is turning. The benefits are clear: reduced construction time, lower labor costs, scalability through automation, and a smaller environmental footprint. In a country where the demand for efficient building solutions is skyrocketing, this could very well be the moment that modular construction takes root.
Take the hub and spoke model for warehousing, for instance. It has already spurred demand for pre-engineered buildings (PEB). The construction industry is expected to grow at a robust 11-12% over the next five years, with several players leading the charge. Interarch Building Products Ltd stands out as a key player in the PEB space. With a manufacturing capacity of 161,000 MT per annum, it caters to heavyweights like Amazon and Tata Group. The company is eyeing a revenue doubling in the next three to four years, targeting a 15-20% profit growth for FY25. Recently, it raised capital through an IPO, positioning itself for expansion while maintaining a lean balance sheet.
Other notable players include Pennar Industries and Everest Industries, with pre-engineered buildings contributing significantly to their revenue. Pennar, with an international footprint and a capacity of 90,000 MT, is focused on high-margin segments, particularly in the U.S. market. Everest Industries, meanwhile, is diversifying within conventional building products while also tapping into the PEB sector.
In the precast arena, companies like PSP Projects and Ganesh Housing Corporation are making waves, employing advanced construction technologies to enhance efficiency. Purvankara is also in the mix, utilizing offsite construction methods through its tech-enabled subsidiary.
As we witness this tech transition in the construction sector, it’s clear that massive wealth creation is on the horizon. Staying attuned to these developments and the firms at the forefront will be crucial for anyone looking to navigate this evolving landscape. The construction industry is poised for a renaissance, and it’s high time we pay attention to the changes unfolding before our eyes.
