Road Ahead for CE Industry
ROADS & HIGHWAYS

Road Ahead for CE Industry

India’s road network has grown

59 per cent to become the second largest in the world in the last ten years. National highway construction in India increased at 9.3 per cent CAGR between FY16-FY24. With the government’s continued focus on infra-led growth, construction equipment (CE) industry is also witnessing robust demand. In fact, in FY24, the industry witnessed about 26 per cent growth compared to previous year.

Ranjan Sharma, Senior Director – Large Corporate Ratings, CareEdge Ratings, states, “There has been a significant focus of the Union government on infrastructure development in the country, as a result almost all segments like roads, ports, bridges, etc. are doing well. If one looks at performance of the top 18-20 listed EPC companies, their order books have been consistently growing YoY basis. Road construction pace in India in FY24 was one of the highest (i.e. 34 km per day compared to 28 km per day in the previous year), as large number of projects were awarded in the preceding two years. In FY24, the CE industry, which plays pivotal in infrastructure development, grew by 25 per cent (in terms of unit sold) led by earthmoving, material handling, as well as road CE.”

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India’s road network has grown59 per cent to become the second largest in the world in the last ten years. National highway construction in India increased at 9.3 per cent CAGR between FY16-FY24. With the government’s continued focus on infra-led growth, construction equipment (CE) industry is also witnessing robust demand. In fact, in FY24, the industry witnessed about 26 per cent growth compared to previous year.Ranjan Sharma, Senior Director – Large Corporate Ratings, CareEdge Ratings, states, “There has been a significant focus of the Union government on infrastructure development in the country, as a result almost all segments like roads, ports, bridges, etc. are doing well. If one looks at performance of the top 18-20 listed EPC companies, their order books have been consistently growing YoY basis. Road construction pace in India in FY24 was one of the highest (i.e. 34 km per day compared to 28 km per day in the previous year), as large number of projects were awarded in the preceding two years. In FY24, the CE industry, which plays pivotal in infrastructure development, grew by 25 per cent (in terms of unit sold) led by earthmoving, material handling, as well as road CE.”To read the full story Click Here

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Infrastructure Transport

Infrastructure Development

PPPs accelerate road growth“Over the past decade, India’s road sector has experienced a significant transformation, fuelled by strong government backing and a surge in private-sector investment,” according to Anshumali Srivastava, Chief General Manager – Tech, NHAI. Speaking about evolution of the sector since 2014, Srivastava highlighted how the shift from solely budgetary support to PPP models has been a gamechanger. Despite increased government spending, he said the sector still has an appetite for further investment, with private players stepping in to fill the gap.The reason ..

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Infrastructure Transport

Bidding Models

The evolution of road infrastructure models has become a focal point in discussions surrounding sustainable development and investment in India. Recent dialogues have highlighted the transformative shift from traditional EPC contracts to more dynamic frameworks such as BOT and HAM, underscoring the crucial role of the National Highways Authority of India (NHAI) in fostering PPPs that are vital for the country’s infrastructure growth. At this point in time, the Ministry of Road Transport & Highways (MoRTH) and NHAI had missed their national highway construction targets in six of the past ..

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Infrastructure Transport

Material Sustainability in Roads

As the demand for eco-friendly infrastructure grows, the road construction industry is adopting innovative methods to reduce emissions and embodied carbon in materials, addressing the global push towards sustainable development and setting a path for a more resource-efficient future in infrastructure.Embodied and operational carbon in the cement sector“While operational carbon – emissions during usage – gets much attention, embodied carbon, which accounts for emissions during construction, represents a significant portion, especially in highways where 50-60 per cent of carbon is embodied..

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