Pre-Engineered Buildings: Industry Report
Indian PEB Industry:
Economic and Environmental Sustainability
Factors Ensure Continued Rapid Growth
M.K. Prabhakar, Associate Editor
I
ndia has emerged as one of the key
global markets for pre-engineered
buildings (PEB). A lot of this growth
has got to do with the way how percep-
tions towards metal buildings have been
changing in the country. Among the
major reasons earlier for the slow pace
of growth of the metal buildings indus-
try was the lack of awareness, lack of
availability of specialized manpower and
the dearth of an organized supply chain.
All this has changed thanks to the rise
of the PEB industry. The entry of global
players facilitated the influx of latest tech-
78 The Masterbuilder - May 2014 · www.masterbuilder.co.in
nologies and there has been no looking
back since then. Today the scene is such
that PEBs are estimated to about 30%
of market share in the construction in-
dustry. The PEB industry pegged currently
at about ` 4000 crore has set a scorch-
ing pace and is estimated to be grow-
ing at 20%-25% in the recent past. Rapid
industrialization, along with the rise of
the warehousing and retail sector has
been factors enabling this growth rate.
The growth of the metal building in-
dustry in India makes for interesting
reading. It all started with the onsite fab-
rication model. This was during the
time when almost all the large infra-
structure projects were under the con-
trol of governmental agencies. With the
opening up of the economy in the
1990s though, things began to change.
Adherence to strict project completion
deadlines was important for private
players. This was the trigger for predo-
minantly “factory built” buildings and
rise in the might of the PEB industry.
The “Green” Factor
The rising emphasis on sustainable
 Pre-Engineered Buildings: Industry Report

The PEB bug has caught on in India

building strategies has been another one conditions, ranging from heavy snow- faster than in the case of conventional
of the key reasons behind the rise of the fall to high winds or heat, a factor that steel buildings. Moreover, it also needs
PEB industry in recent times. Today, has made them a favorite for industrial to be remembered that in the case of
whether it is residential, commercial or and commercial buildings, with demand PEBs the basic designs can be used over
industrial construction, going green seems picking up on the residential side too, in and over again, leading to cost savings.
is the trend. While it is well known that recent times. The earlier misconception that PEBs
PEBs are inherently green, so far as The technology also enables lower meant dull and drab industrial sheds is
environmental sustainability is concer- lifecycle cost, as compared to conven- also gone. There has been increasing
ned, they are also economically sus- tional methods of construction, a fact that realization that outstanding architectural
tainable, as compared to conventional is not lost on the modern day Indian designs can also be achieved using
construction methods. This is because in contractor. The foundation for one is eas- PEBs. This apart, PEB systems can also
their case, precise estimations based ier to construct, being lightweight and be designed keeping in mind future
on computer generated models are consisting of standard sections and con- expansion plans. Another important thing
used. The resulting calculations lead to nections. This saves erection cost and to remember with PEBs is that since a
no or very little material wastage. The time. Erection is typically around 20% single supplier can coordinate all fac-
labor cost on PEBs is also less as most
of the building comes partially con-
structed. In the case of industrial and
commercial projects, prefabrication
allows, minimization of onsite workload,
since a vast majority of the work is car-
ried out offsite, eliminating most of the
onsite works such as welding and bolt-
ing of connections, pre-assembling of
smaller components and also a reduc-
tion in the number of onsite lifting re-
quirements. All these lead to a signifi-
cant savings in project costs to devel-
opers, factor that has become crucial in
these days and times of economic tur-
bulence. PEBs enable all this without any
compromise on the quality front. PEBs
are extremely durable, strong enough PEB and metal building technology is now finding an increasing number of takers in the commercial
to withstanding every kind of climatic buildings market segment

www.masterbuilder.co.in · The Masterbuilder - May 2014 79

 Pre-Engineered Buildings: Industry Report
Contrary to popular perceptions the PEB technology allow for myriad architectural expressions
ets including, design, erection, and in-
stallation, superior after sales service
support is virtually assured in case of
PEBs, a factor that has again, contrib-
uted to their rising popularity.
Retailing Demand
The buzz around PEBs has been on
the rise in the recent past. For instance,
take the case of the retail sector. This is
one sector that has embraced PEBs in
a major way in the western world and it
could be the same in the case of India.
Apart from the boom in the retail sector
in the metros, a huge untapped lies
Low rise retail structures on the lines of those in the west hold excellent potential in rural retailing in India
80 The Masterbuilder - May 2014 · www.masterbuilder.co.in
located in the hinterlands of the coun-
try. Rural retailing is an area that offers
immense scope of growth for the PEB
industry. A few sporadic steps have been
taken by some of the leading players to
tap this vast market and it could well
prove the trigger for bigger things in the
future.
Warehousing Sector
The warehousing sector has been
one of the key demand drivers for the PEB
industry in India over the last decade.
The good old concept of “godowns” has
been all but buried in India. There has
been growing realization that a ware-
house is much more than a place to
stock goods. It is sometimes special-
ized to store certain type of goods, for
e., cold storage units that are typically a
part of the pharmaceutical and food &
beverage industry. It can also be a place
where the final customer sorting takes
place in this day and age of e-commerce,
where customers can order products
online. It is also a place in certain types
of industries where even the final fabri-
cation takes place. All these factors have
increased focus on specialized solutions
and this is where the PEB suppliers with
their readymade solutions have stepped
in. Warehouses, along with industrial
buildings presently constitute a huge
market share of PEBs in India.
Intense Competition
With the increase in demand for the
technology, it is not surprising to find
competition intensifying among major
suppliers in the market. Offering a com-
prehensive “package” which includes
“hand holding” assistance right from the
project conceptualization stage to the
final execution stage is the strategy being
 Pre-Engineered Buildings: Industry Report
MHE have enabled contractors to stick to strict project execution schedules
adopted by almost every leading player
in the market. A good example for a
company that offers comprehensive
PEB solutions is available in the form of
PEBS Pennar. The company has exe-
cuted several landmark PEB projects.
Kirby India is another top player in the
field with its wide range of PEB solu-
Economies of scale in the long run may see increased use of PEB technology for smaller
structures including residences
82 The Masterbuilder - May 2014 · www.masterbuilder.co.in
tions. Zamil Steel, Interarch, Multicolor
Steel, Loya and Tata Bluescope Steel
are some other top names in fray.
Opportunity Beckons
There is virtually no stopping the
growth of the PEB industry in the near
future. The growth impetus is being pro-
vided by the rapid industrialization pro-
cess. The various industrial corridor pro-
jects augur well for the industry. Initia-
tives such as Special Economic Zones
(SEZs) and the National Investment and
Manufacturing Zones (NIMZs) are fur-
ther expected to pick up speed, post the
general elections and drive demand for
PEBs. The push would also come from
the food processing industry, which is on
the threshold of a revolution in India.
Warehouses are pegged to grow in
numbers at a mind-boggling pace in
the next five years by industry experts.
So too would be the demand from the
retail sector. The healthcare sector is
another area where PEBs have the po-
tential to make a difference. India could
well do to follow the lead of several other
countries where PEBs have enabled
spread healthcare facilities even in the
most remote corners.
There are also indications that the
sustained efforts of PEB suppliers for
tapping the huge residential market avai-
lable in India are gradually bearing fruit
too. There has been a spurt in PEBs in
the residential sector, especially in the
form of farm houses, the kind of which
can now be found frequently bordering
the metros. The relatively easy availabi-
lity of light-gauge steel is behind their
gradual growth in numbers in the resi-
dential market. Their gradual increase
in numbers could also lead to a situa-
tion where policy makers can seriously
take a look at using the PEB technology
as a solution for providing affordable
housing, given the fact that with the ris-
ing popularity of PEBs, the economies
of scale could bring down costs in the
long run. The acute shortage of skilled
manpower could also actually be a
blessing in disguise for the PEB industry,
especially with respect to affordable
housing projects. The shortage, coupled
with the lack of availability of adequate
amounts of sand could well force the
government authorities to increase focus
on the technology for providing the
country's teeming millions with a roof
over their head. With all these factors
going for it, it is not surprising that the
PEB industry in India is all set for a period
of rapid growth in the near future.