1. Presentation On SWOT Analysis of Construction Sector in India
Presented by:
Bhushan Shingade
Divyang Solanki
Jitendra S
Sudha Kumari
Pulak Tewary
Ravi Kr. Tiwary
Noopur Toshniwal
Ahad Ali Udaipurwala
Jeet Vadodaria

2. SWOT ANALYSIS :
SWOT Analysis is the foundation for developing tactics & strategies that become the road map for writing or planning business operating plans or strategies.
SWOT = Strengths + Weaknesses + Opportunities + Threats
Strength is defined as an internal asset, technology, motivation, finance business links etc. that can help to exploit opportunities and to fight off threats.
Weakness is an internal condition which hampers the competitive position or exploitation of opportunities.

3. SWOT ANALYSIS:
Opportunity is any external circumstance or characteristics which favors the demand of the system or where the system is enjoying a competitive advantage.
Threat is a challenge of an unfavorable trend or of any external circumstances which will unfavorably influence the position of the system.

4. Overview of Construction Sector in India:
Indian construction Sector consists of two major verticals :
Non-Residential Construction:
Residential Construction:
Construction sector is the second largest industry of the country after agriculture, accounting for around 11% of India’s GDP & employing 32 million people, 18 million people directly & 14 million indirectly.
Proposed investment by Planning Commission of India is of around US $ 1 Trillion in the 12th 5 year plan ( ) i.e. double that of 11th.

5. Indian construction Spending Outlook:
US $ 175 Billion was spent on construction in India in 2007 of which US $ 140 billion was spent on non residential & US $ 35 billion on residential, which is expected to increase to US $ 307 billion for non residential & US $ 63 Billion for residential & a total of US $ 370 Billion by the end of 2013.

6. Sectoral Composition of Construction Spending:
Non-residential construction forecast for India, including major sub-categories—transportation, public health, energy, office, commercial, institutional, and industrial is expected to rise at a CAGR of 13.9% during

7. Sectoral Composition of Construction Spending:

8. India’s Construction Growth relative to Asia:
Irrespective of current downturn & economic slowdown due to huge demand supply gap construction industry in India is quite stable and is growing at par or above the rate at which Asia’s construction industry is growing.

9. Key Points:
Supply: Past 4-5 years have seen a substantial increase in the number of contractors and builders, especially in the housing and road construction segment.
Demand: Demand exceeds supply by a large margin. Demand for quality infrastructure construction is mainly emanating from the housing, transportation and urban development segments.
Barriers: Low for road & housing construction. However, high working capital requirements can create growth problems for companies with weak financial muscle.

10. Key Points: Bargaining Power (Supplier): Bargaining Power (Customer):
Low. Due to the rapid increase in the number of contractors and construction service providers, margins have been stagnant despite strong growth in volumes.
Bargaining Power (Customer):
Low. The country still lacks adequate infrastructure facilities and citizens have to pay for using public services.
Competition:
Very high across segments like road construction, housing and urban infrastructure development. Relatively less in airport and port development.
Interdependency of Other Sector:
Very high due to chain of backward & forward linkages with About 250 ancillary industries such as cement, steel, brick, timber and building material etc.

11. STRENGTH
Employment and training opportunities in the field of construction.
Private sector housing boom and commercial building demands & construction of the multi building projects on the feasible locations in the country.
Good structured national network facilitates the boom of construction industry.
Low cost well- educated and skilled labour force is now widely available across the country.
Sufficient availability of raw material, manpower and natural resources in the country is supportive for the industry.

12. STRENGTH
Better growth rate as compared to neighboring market indicates better future scope in terms of new requirements and job stability. Hence a positive indicator of nations growth & development.
Increased FDI in construction sector shows the boosted confidence of investors in Indian Economy.

13. WEAKNESS
Distance between construction projects reduces business efficiency.
Training itself has become a challenge in today’s competitive environment.
Changing skills requirements and an ageing workforce may emphasize the skills gap.
Improvement in long-term career prospects is highly required to encourage staff retention and new entrants.
External allocation of large contract becomes difficult.
Lack of clearly defined processes and procedures for construction and its management lead to higher risk and uncertainty.
Huge amount of money needs to be invested in this industry.

14. OPPORTUNITY:
Continuous private sector housing boom will create more construction opportunities.
Public sector projects through Public Private Partnerships will bring further opportunities.
Developing supply chain through involvement in large projects is likely to enhance the chances in construction.
Renewable energy projects will offer opportunities to develop skills and capacity in new markets.
More flexible training delivery techniques are now available.
Financial supports like loan and insurance and growth in income of people is in support of construction industry.

15. OPPORTUNITY:
Huge demand supply gap in the construction industry leads to stability in terms of employment opportunities.
Flexible government Fiscal policies promoting FDI in Construction industry has boosted the sector a lot at the same time foreign investors grown up confidence in country’s economy.
In the 12th 5 year plan ( ) Planning Commission of India has proposed of investing US $ 1 trillion in the construction industry which is a huge boost to the industry.

16. THREAT:
Long term market instability and uncertainty may damage the opportunities and prevent the expansion of training and development facilities.
Current economic situation may have an adverse impact on construction industry.
Political and security conditions in the region and Late legislative enforcement measures are always threats to any industry in India.
Infrastructure safety is a challenging task in construction industry.
Lack of political willingness and support on promoting new strategies.
Natural abnormal casualties such as earth quake and floods are uncertain and can prevent the construction boom.

17. THREAT:
Inefficient accessibility in planning and concerning the infrastructure.
Competitors are emerging in the industry by leaps and bounds.

18. CONCLUSION: Problems faced by Construction Industry:
Indian Construction industry suffers from capacity constraints due to lack of trained manpower and managerial skills with performance much below international level.
The industry is starved of finance. Small and medium contractors do not have the wherewithal to upgrade their capability.
Quality, safety, environment and social aspects are also not being addressed appropriately and proper awareness is required in this regard.

19. CONCLUSION:
In the years ahead, the construction industry in India has to overcome various challenges with respect to housing, environment, transportation, power or natural resources and hazards associated.
Technocrats associated with the Indian construction industry need to employ innovative technologies and skilled project handling strategies to overcome these challenges.
The outstanding performance under demanding situations in the past will stand in good stead and give confidence to the Indian construction industry to bring about an overall development in the infrastructure of the nation.

20. THANK YOU