Project Exports.powerpoint (21)

PROJECT EXPORTS

The Term Project Exports From India Means Export Of Turnkey Projects , Civil Projects, Construction Prjects, Engineering Projects and Consultancy sevices From India To Abroad.

Overseas Construction Council of India  Civil construction

(Structures/Infrastructure) Turnkey  Process and Engineering Consultancy

Services Project construction items (Excluding steel

and cement)/project goods

Introduction

SAARC Region Asia [South/East/West (Afghanistan)] Africa Middle East Russia & CIS Countries Latin American Countries

The following regions continue to be potential markets for Project Export Sector:

In the global market India ranks 12th and accounts for 1.75% of the $3.4 trillion global market as far as construction sector is concerned. The construction sector, in India, accounting for 5% of the GDP, is the second highest employer after agriculture, employing directly or indirectly 32 million workers. The construction sector accounts for a gross annual business volume of Rs. 230,000 crores.

Global Composition

• 1. Import-Export code certificate• 2. Annual Turnover• 3.For Manufacturer

a . Granted by State Directorate of Industries

orb . Any documentary Evidence

Membership Process

GPO (Global Project Opportunities). Organizing buyer-seller meets in India and abroad. Offering technical, marketing & export assistance to Indian

exporters. Focus on overall growth and development of the Indian

project exports sector. Encourage Indian companies to jointly bid for mega projects.

Joint Venture arrangements. Capability of companies

Activities and Services

(a)  Construction engineering products (b)  Construction equipments & accessories (c)  A variety of materials and supplies

including Builders' Hardware , sanitary , wood , timber etc…

Except steel and cement

Project Construction Items

INDIAN COMPANIES HAVE SUCCESSFULLYIMPLEMENTED PROJECTS IN

VARIETY OF SECTORS� DIVERSIFIED MARKETS� HOWEVER, FEW COMPANIES� FEW MARKETS�

CREATING AN ENABLING ENVIRONMENTWILL HELP ACHIEVE QUANTUMINCREASE IN PROJECT EXPORTS

Indian Project Exports – Background

BRAND IMAGE OF INDIA AS A SIGNIFICANT PROJECT EXPORTER YET TO BE ESTABLISHED MULTI-PRONGED COORDINATED APPROACH YET TO BE DEVELOPED WITH PRO-ACTIVE INSTITUTIONAL SUPPORT INADEQUATE INFORMATION ACCESS AND DISSEMINATION SYSTEMS NEED FOR INDIAN CONSULTANTS TO HAVE ENHANCED PRESENCE IN THRUST MARKETS INABILITY TO OFFER FINANCIAL PACKAGES AT FINE RATES OVER EXTENDED PERIODS LIMITED RISK TAKING CAPABILITY.

Constraints faced by Project Exporters

Exim India has conducted an analysis of project export bids submitted to Exim India/ Working Group (for Project exports) for clearance, and contracts secured through such bids, during the period 1990-2010.

PERFORMANCE OF INDIAN PROJECT EXPORTS

During the decade (1990-2010), 1268 export bids valued at Rs. 102,694 crores were submitted. Out of the 1268 bids, 418 bids valued at Rs. 18,033 crores

were secured with an aggregate success rate of 34% by number and 20% by value.

PROJECT EXPORTS SCENARIO (1990-2010)

Name of the project exporter

Permission No

Date Of Issue

Country Of Project

No Of Workers

Duration Form Date Of Issue

Extension Granted Or Not

D.S. Construction PVT. LTD. NEW DELHI

List of current project exporters

a. Agriculture & Natural ResourcesFisheriesIrrigation & Rural DevelopmentAgro IndustriesCommercial Farming

b. Energy Electric Thermal Natural Gas & Oil

c. Environment Non conventional sources

d. Industry Metals & Minerals Chemicals/ Petrochemicals fuels, fertilisers, pharmaceuticals�

Sectors

e. Social Infrastructure Education Urban Development Housing Health & Population Water Supply & Sanitation

f. Transport & Communication Roads & Road Transport Ports & Shipping Railways

g. Consultancy

h. Multisector

CONTD.

Trends in Project Exports from India

Market Development Assistance (MDA) given by the Department of Commerce to Export Promotion Bodies / Individual Exporters to undertake various export promotional and developmental activities as prescribed in the MDA Code has been revised to make it more exporter-friendly. Reserve Bank of India (RBI) has revised the Project Exports Manual (PEM) thereby simplifying export procedures to promote project exports.

Promotional Measures and incentives 

Experience gained by Indian firms through participation in domestic projects of a diverse variety is relevant to the needs of other developing countries. Scope exists to initiate our presence in new markets, and cover new sectors. The recent trends observed in the pattern of bidding by Indian project exporters are encouraging particularly for project opportunities in neighboring and other developing countries. Indian project exporters' technical and managerial capabilities are of the highest order in the world market. Indian project exporters are hopeful of penetrating new overseas markets to secure increased share in project exports.

FUTURE PROSPECTS

2000-01 2001-02 2002-03 2003-040

1000

2000

3000

4000

5000

6000

7000

8000

1833

4162

65317543

Recent Trends in Project Exports from India supported by Exim Bank

On an average during the decade, bids were made by 42 exporters.

The highest number of bids were submitted by the following companies. IRCON International Limited (IRCON) - 150� Larsen & Toubro Limited (L&T) - 119� KEC International Limited (KEC) – 115�

The top five exporters accounted for 46% of the total bids.

They are: Bharat Heavy Electricals Limited (BHEL)- Rs. 15,202 crores� Larsen & Toubro Ltd. (L&T) - Rs. 13,478 crores� Telecommunications Consultants India Limited (TCIL) Rs.� 11,568 crores IRCON International Limited (IRCON) Rs. 10,827 Crores� � KEC International Limited (KEC) Rs. 10,137 Crores� �

The top five exporters accounted for 60% of the total bids.

EXPORTERWISE ANALYSIS

665

293

200

110

total bids:1268

TurnkeyConstructionConsultancySupply

ACTIVITYWISE ANALYSIS

Construction contracts involve civil work, steel structural works as also associated equipment supply, erection and commissioning.

293 construction bids valued at Rs. 22,548 crores accounted for 23% by number and 22% by value.

Out of the 293 bids, 60 bids valued at Rs. 4,126 crores were secured with an aggregate success rate of 20% number wise and 18% value wise during the decade.

Construction Contracts

Consultancy contracts involve deployment of personnel, furnishing of know-how/skills operation and maintenance services and management contracts.

200 consultancy bids valued at Rs. 6345 crores were submitted, accounting for 16% by number and 6% by value of the total bids submitted during the period.

Out of these, 120 bids valued at Rs. 2988 crores were secured with an aggregate success rate of 60% by number and 47% by value during the decade.

Consultancy Contracts

Such contracts involve supply of equipment, along with related services like design, detailed engineering, civil construction, erection and commissioning of plant.

665 bids valued at Rs. 70,666 crores were submitted, which accounted for 52% by number and 69% by value of the total bids submitted during the decade.

Out of the 665 bids submitted, 173 bids valued at Rs. 9,257 crores were secured, which represented a success rate of 26% number wise and 13% value wise.

Turnkey Contracts

Supply contracts involve export of capital goods and industrial manufactures.

110 bids valued at Rs. 3135 crores were submitted, which constituted 9% by number and 3% by value of the total bids submitted.

Out of the 110 bids submitted, 65 contracts aggregating Rs. 1,662 crores were secured, which represents a success rate of 59% by number and 53% by value.

Supply Contracts