RIL ventures into construction business
Reliance Industries (RIL) will set up a Rs 450-crore pre-engineered building (PEB) facility in Gujarat.
By TNN |
MUMBAI: Reliance Industries (RIL) will set up a Rs 450-crore pre-engineered building (PEB) facility in Gujarat. RIL has roped in Dubai-based Mammut Group as a JV partner for the plant, which is likely to be commissioned by end-2008.
Pre-engineered buildings are products that are used for construction and can be molded according to project requirements. A computer-assisted design helps create a building for a specific use like a service station, retail outlet, manufacturing or office building.
The PEBs may be used for RIL’s in-house projects. RIL is setting up big infrastructure projects in special economic zones and a chain of retail outlets. The PEBs are likely to be used extensively in these projects.
This facility will have a production capacity of 1.2 lakh metric tonnes per annum (mtpa) of pre-engineered steel buildings and it will be integrated with a 1.8 million square metre pre-cast concrete building facility. It is believed that the plant will come up in Jamnagar. However, the exact location could not be confirmed.
The JV has thus targeted 100% capacity utilisation of both facilities from the second year of production, generating revenues of $262 million (Dh965 million) at full capacity, a Gulf newspaper reported on Thursday, quoting a company statement.
A source in the company said, “It would be first of its kind PEB facility in India. Most of this JV production is likely to used by RIL for its captive consumption.” The RIL spokesperson declined to comment on the issue. A mail sent to the company remained unanswered till the time of going to press.
The Mammut Group, promoted by the Ferdows family, has a strong presence in the Gulf with core strengths diversified into manufacture of pre-engineered steel buildings and polyurethane sandwich panels, porta cabins and pre-cast concrete panels.
PEBs are emerging as a cost-effective and time-saving technology in the infrastructure business, with several projects using it. PEBs are expected to boost steel consumption as domestic steel production had been growing at 7.3% during the last decade while the consumption stands at 6.32%.
Pre-engineered buildings are products that are used for construction and can be molded according to project requirements. A computer-assisted design helps create a building for a specific use like a service station, retail outlet, manufacturing or office building.
The PEBs may be used for RIL’s in-house projects. RIL is setting up big infrastructure projects in special economic zones and a chain of retail outlets. The PEBs are likely to be used extensively in these projects.
This facility will have a production capacity of 1.2 lakh metric tonnes per annum (mtpa) of pre-engineered steel buildings and it will be integrated with a 1.8 million square metre pre-cast concrete building facility. It is believed that the plant will come up in Jamnagar. However, the exact location could not be confirmed.
The JV has thus targeted 100% capacity utilisation of both facilities from the second year of production, generating revenues of $262 million (Dh965 million) at full capacity, a Gulf newspaper reported on Thursday, quoting a company statement.
A source in the company said, “It would be first of its kind PEB facility in India. Most of this JV production is likely to used by RIL for its captive consumption.” The RIL spokesperson declined to comment on the issue. A mail sent to the company remained unanswered till the time of going to press.
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The Mammut Group, promoted by the Ferdows family, has a strong presence in the Gulf with core strengths diversified into manufacture of pre-engineered steel buildings and polyurethane sandwich panels, porta cabins and pre-cast concrete panels.
PEBs are emerging as a cost-effective and time-saving technology in the infrastructure business, with several projects using it. PEBs are expected to boost steel consumption as domestic steel production had been growing at 7.3% during the last decade while the consumption stands at 6.32%.
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