2024 Procurement Outlook for Structural Steel for CPOs of Infrastructure Project Developers in India

2024 Procurement Outlook for Structural Steel for CPOs of Infrastructure Project Developers in India

Picture this: In 2023, navigating the procurement of steel TMT bars was like steering through a financial maze. The prices varied significantly – 10mm GBR TMT bars were between Rs. 68,000 and Rs. 72,000 per tonne, while 8mm Tata TMT Bars stood around Rs. 56/kg. 

Forecasting TMT bar prices for the 2024 procurement outlook is difficult due to unpredictable changes in demand, supply dynamics, and global economic trends. However, projections suggest that there may be occasional price decreases in the upcoming months, although the market is anticipated to experience consistent growth until 2031. Let us cooperate to address these issues and make educated purchase decisions in 2024. 

Cost Drivers Affecting the Steel Supply Chain in 2024 

Raw Material Cost 

During 2024, the steel supply chain went through tough challenges. It was influenced by rising prices of raw materials like iron ore and scrap metal and geopolitical events such as the Ukraine War and trade sanctions. For 2024, we expect a 3.2% increase in raw material costs in the first five months. This scenario directly impacts steel production costs and final product prices.  

Electricity Cost  

Despite growing energy prices, particularly electricity, the World Steel Association predicts a moderate % growth rate of 2% in 2024 for TMT steel procurement in India. This challenge is offset by robust domestic and foreign demand. Government policies and initiatives will be instrumental in shaping the steel sector’s future.  

Coking Coal Cost 

Coking coal costs are poised to rise due to the Ukraine war and disruptions in Central Asia, impacting TMT steel production expenses.  

For the 2024 procurement outlook, Hard coal is anticipated to cost 202.6 USD/MT, while semi-soft coal will cost 144.1 USD/MT.  

The Ukraine situation may cause logistical issues that disrupt global steel demand and supply networks, resulting in shortages and higher prices.  

Additionally, imports, influenced by global trends and trade policies, will significantly shape TMT steel prices.  

Logistics Cost 

Logistics and fuel prices are key factors influencing final costs. Fluctuations in these areas, particularly fuel prices, significantly affect TMT rod production costs, as outlined by Captain TMT.  

Gasoline and diesel prices may fall before the 2024 Lok Sabha elections, alleviating this effect. The TMT steel bar business is also growing due to rising demand for inexpensive reinforcing bars.  

Project Finance Cost 

In 2024, project finance costs in India’s TMT steel sector are poised to rise due to increased interest rates, inflation, and currency fluctuations, impacting capital and operating expenses. This scenario could elevate TMT bar production costs, as IMARC Group and CivilSite highlighted. Various economic factors will influence loan terms from banks and financial institutions and will affect the steel sector’s cash flow and pricing strategies. Additionally, these costs will influence investment decisions, impacting the sector’s competitiveness and market share, as noted in Economic Times and Moneycontrol reports.  

Working Capital Cost 

In 2024, India’s TMT bar producers can expect reduced working capital costs. Driven by strong demand in infrastructure and realty, as noted in The Hans India, improved sales and cash flow will lessen reliance on external financing. Enhanced production capacities will reduce inventory costs, improving working capital efficiency. Government incentives and policies, detailed by IMARC Group and Economic Times, will further aid in easing financial constraints, bolstering the sector’s economic footing. 

Labour Cost 

In 2024, India’s TMT steel bar production faces potential cost increases due to rising labor costs, including wages and benefits. This surge could elevate production costs, squeezing profit margins and competitiveness. Additionally, a skilled labor shortage may impact productivity and innovation, influencing supply-demand dynamics in the procurement industry. Labor cost changes will also be crucial in the sector’s investment decisions and technology adoption. 

O&M Cost 

Operating and Maintenance (O&M) costs in India’s TMT steel bar sector are projected to rise in 2024 due to increasing energy prices, labor costs, and stringent environmental regulations. This increase could lead to higher production costs, impacting profit margins and competitiveness. Furthermore, efficiency issues in steel plants and equipment due to aging or technical challenges may affect productivity and market dynamics, influencing key decisions in technology adoption and investment strategies within the sector. 

Steel TMT Bar Procurement Solutions for CPOs of Infrastructure Project Developers 

Spend Analytics for Cost Optimization 

Navigating the procurement of Steel TMT bars, crucial for infrastructure projects and accounting for a significant 40% of construction costs, requires strategic approaches for cost optimization. Spend analytics offers a comprehensive view of spending patterns, which is crucial for identifying cost variations and potential savings. Implementing this can lead to an average of 6% savings on total spending. 

Site Aggregation for JIT Supplies 

Site aggregation for Just-In-Time supplies is another effective strategy. Consolidating demands across sites not only reduces transportation and handling costs but also aligns with JIT principles, potentially saving up to 10% on logistics costs. 

Local Sourcing for Logistics Cost Reduction 

Lastly, local sourcing significantly reduces logistics expenses, supporting community relations and reducing environmental impact. As per a McKinsey study, this approach can reduce logistics costs by 15-20%. 


The 2024 procurement outlook for TMT steel bars presents a complex blend of challenges and opportunities. Strong demand and possible cost reductions in working capital and labor support the sector despite variable raw materials, electricity, coal, logistics, project finance, and O&M costs. These dynamics require strategic measures like expenditure analytics, site aggregation, and local sourcing to save money and increase efficiency. For competitive advantage, infrastructure project developers must react to these developments. Explore Moglix Business for TMT steel bar procurement solutions.

Top Sea Beaches in India with the Infrastructure for the Best Travel Experience

Top Sea Beaches in India with the Infrastructure for the Best Travel Experience

What makes India’s leading sea beaches not just beautiful but also infrastructurally sound for an exceptional travel experience? Let’s explore India’s premier sea beaches to uncover their unique infrastructural features that attract global travelers for convenience and comfort. 

Sea Beaches in Southern India with the Best Infrastructure 

Kovalam Beach, Kerala 

Kovalam Beach’s seamless connectivity includes efficient roads of the best quality bitumen and public transport like the nearby Trivandrum Airport and railway station. Kovalam is being developed as part of the Coastal Highway project. The highway connects with the existing bypass road to Kumarichantha. 

Rushikonda Beach, Visakhapatnam 

Rishikonda Beach benefits from the robust Visakhapatnam Airport and railway station. You can reach the beach from Visakhapatnam by well-developed Vizag-Srikakulam and Chennai-Kolkata Highways in under 50 minutes. 

Calangute Beach, Goa 

Famous Calangute Beach enjoys access through Goa International Airport and Thivim railway station. The fastest route to Calangute Beach from the airport is by NH66, other than NH748 and Hathkhamba-Goa road.  

Marina Beach, Chennai 

Marina Beach, one of the world’s longest urban beaches, leverages the efficient Chennai airport and railway station. The beach is well accessed by Chennai-Trichy Highway, Grand Southern Trunk Road, and Wallahjah Road. 

Mahabalipuram Beach, Chennai 

A short, scenic drive from Chennai along the acclaimed East Coast Road takes you to lovely Mahabalipuram Beach. The durable, corrosion-resistant steel used in construction ably resists corrosive air and offers protection.  

Sea Beaches in Eastern India with the Best Infrastructure 

Digha Beach, West Bengal 

Scenic Digha’s accessibility owes much to thoughtful planning. The well-connected Digha Flag Station Railway serves this popular beach town, while NH16 and NH16B exemplify the beach’s connectivity to the urban city. 

Shankarpur Beach, West Bengal 

Serene Shankarpur benefits greatly from Kolkata’s proximity and roads. Highways NH 116B and NH16 facilitate comfortable and swift travel from the airport. 

Gopalpur Beach, Odisha 

Gopalpur enjoys a major railway just 16 km away in Brahmapur for ease of access. Lined by lush greenery, the smooth NH16 roads create pleasant journeys to this beach destination from the capital city of Odisha, Bhubaneswar. 

Puri Beach, Odisha 

Renowned beach and spiritual destination Puri connects seamlessly through Bhubaneswar, one of the top smart cities in India with best urban infrastructure planning. The superbly maintained Bhubaneswar-Puri Highway deploys top quality bitumen as a model of quality infrastructure. 

Konark Beach, Odisha 

Konark’s accessibility via roads from Bhubaneswar displays the best urban roads with leading infrastructure standards. For instance, the use of premium bitumen in Pipli – Konark Rd ensures smooth drives reflecting the region’s excellent planning. 


Interested to know how efficient construction raw material procurement and well-planned infrastructure supply chain solutions can make infrastructures highly sought-after? Explore Moglix’s infrastructure solutions to learn more about construction raw material procurement. 

All Roads Lead Cricket Fans to the Narendra Modi Stadium: The ICC Men`s World Cup 2023 Final

All Roads Lead Cricket Fans to the Narendra Modi Stadium: The ICC Men`s World Cup 2023 Final

Mark your calendars for an electrifying spectacle in the world of cricket as the grand finale of the ICC Men’s World Cup 2023 Final is set to light up the Narendra Modi Stadium in Ahmedabad on Thursday, November 19. This guide details how to reach Ahmedabad and the stadium seamlessly and also explores the city’s rich tapestry of cuisine, history, and shopping. 

How Cricket Fans Can Reach Ahmedabad and Return to Their Base? 

Having set the stage for what awaits in Ahmedabad during the cricket World Cup final, let us guide you through the practicalities of your journey. From the moment you land in this bustling city, the avenues to reach your cricket destination are manifold and well-facilitated.  

Read on to discover the most efficient modes of transport to enhance your World Cup experience.  

Sardar Vallabhbhai Patel International Airport 

Visitors attending the ICC Men’s World Cup 2023 at the Narendra Modi Stadium in Ahmedabad, boasting a capacity of 132,000, can expect seamless travel via the Sardar Vallabhbhai Patel International Airport (SVPI), which accommodated over 10 million passengers and managed upwards of 80,000 aircraft movements in the 2022-23 fiscal year. As the seventh-busiest airport in India, SVPI offers an array of domestic and international flights, ensuring a convenient journey for cricket fans.  

With all seats likely to be filled for the final, a full house will enjoy the facilities and services of this airport, located just 8.4 km from the stadium—a short 17-minute drive along the Gandhinagar-Ahmedabad Road. 

Ahmedabad Railway Station 

Ahmedabad Railway Station connects travelers directly to the excitement of cricket matches. Efficiently linking major Indian cities such as Mumbai, Delhi, Jaipur and Udaipur, the station has essential services and helpful staff to ensure a smooth and pleasant journey for all cricket fans. 

Road: National Expressway 1 

For fans driving to the matches, National Expressway 1 offers a quick link between Ahmedabad and Vadodara, cutting down travel time and ensuring a fast track to the cricketing action. 

How Can Cricket Fans Reach the Narendra Modi Stadium? 

The final leg to the Narendra Modi Stadium is straightforward. Opt for a quick taxi ride, use the local metro service with a stop close to the stadium, or hop on the Bus Rapid Transport System (BRTS) for a direct route. These convenient options ensure that fans can reach the excitement of the match with ease. 

For those arriving by air or train, Ahmedabad Metro connects key points like the airport and railway station to the stadium area, ensuring no fan misses the opening toss. With the Gujarat State Road Transport Corporation (GSRTC) providing extensive bus services and a plethora of taxis and rickshaws on standby, accessing the stadium from any part of the city is convenient and efficient. Whether you prefer the independence of a private car or the local flavor of a bus ride, reaching the cricketing action is straightforward and hassle-free. 

For cricket fans planning to witness the electrifying atmosphere at Narendra Modi Stadium, here’s how to get there by local means like metro railway networks in India:  

Metro Rail 
The closest metro stop is the Motera Metro Station, a mere 1.5 kilometers from the stadium. A short taxi or auto-rickshaw ride can bridge the gap with ease. 

Road: Bus/Cab 
Indiranagar, the nearest bus stand, offers frequent services, while taxis or app-based cabs provide a more direct route to the stadium. 

What to Explore in Ahmedabad? 

Ahmedabad offers a cornucopia of experiences for visitors, from delectable culinary delights to sports tourism and vibrant markets for the ultimate shopping experience. 

For Foodies: 

Manek Chowk Food Court in Ahmedabad: It’s home to a wide variety of street food vendors, serving up everything from dabeli to dhokla to jalebi. The atmosphere is electric, and the food is delicious and affordable.  

Agashiye restaurant in Ahmedabad: This rooftop restaurant offers stunning views of the city and serves up some of the best Gujarati thalis in Ahmedabad. 

Vishalla restaurant in Ahmedabad: This popular restaurant is known for its authentic Gujarati cuisine. The menu features a wide variety of dishes, from Gujarati specialties like dhokla and khaman to more traditional Indian dishes like butter chicken and biryani.  

Swati Snacks restaurant in Ahmedabad: This vegetarian snack shop is a popular spot for a quick bite. The menu features a variety of snacks, from samosas to dahi puri to sev puri. 

House of MG restaurant in Ahmedabad: This restaurant is located in a 1920s-era mansion and serves up some of the best fine dining in Ahmedabad.  

For History Buffs: 
History enthusiasts can delve into India’s heritage at the Sabarmati Ashram, the tranquil abode of Mahatma Gandhi, and wander through the ancient Bhadra Fort. Kankaria Lake offers picturesque views, and the intricate carvings of Adalaj Stepwell are a testament to the architectural prowess of bygone eras. 

For Shoppers: 
Shoppers can revel in the bustling Lal Darwaja and Sindhi markets for textiles and handicrafts. Dhalgarwad’s traditional attire and Law Garden Night Market’s vibrant atmosphere offer a treasure trove for those seeking the essence of Gujarati craft and apparel. These markets present an array of items reflecting Gujarat’s rich tapestry of culture. 

As the final of the ICC Men’s Cricket World Cup draws near there will be a surge in the number of fans heading to Narendra Modi Stadium in Ahmedabad. Businesses across the city need to step up their game and make sure they have supplies for hospitality, and urban transport infrastructure. With railway stations, roads and top airports in India expected to experience an influx of people it is crucial to have seamless coordination and sufficient materials to manage crowds efficiently and ensure everyone’s safety. 

In this scenario, Moglix stands out as a specialist in procurement. They are well equipped to offer a range of supplies and infrastructure supply chain solutions that will help businesses meet the demands of this exciting sporting event with the utmost efficiency. If you want information about how Moglix can assist with construction raw materials procurement solutions, visit the website

The Road to Eden Gardens, Kolkata: How Cricket Fans Can Maximize Semi Final 2, ICC Men`s World Cup 2023

The Road to Eden Gardens, Kolkata: How Cricket Fans Can Maximize Semi Final 2, ICC Men`s World Cup 2023

ICC Men’s World Cup 2023 Semi-Final 2 is set to occur at the Eden Gardens on November 16, 2023, and is expected to burst at the seams despite its capacity to accommodate 66,000 spectators. 

Read along as we talk about how you can reach Eden Gardens during what we can call is going to be one of the most nail-biting cricket matches.  

How Cricket Fans Can Reach Kolkata and Return to Their Base?  

To reach Kolkata during the ICC Men’s World Cup 2023, you can choose from any of the following options: 

By Air 

Netaji Subhash Chandra Bose International Airport is one of the top airports in India, connected to major cities worldwide. While it is 20 km from Eden Gardens, you can easily flag a cab or bus. 

By Rail  

While Kolkata has a large railway network, the major railway stations are Howrah and Sealdah, which connect with all major cities of India. Remember that Howrah is India’s busiest railway station, with 600 trains passing daily. So, take care of yourselves and the luggage. 

By Road 

If you want a road trip adventure, take the National Highway (NH) 19 route. Part of the Golden Quadrilateral, NH 19 connects Kolkata to three major metropolitan cities — Delhi, Mumbai, and Chennai. Moreover, NH 19 is also a part of the Grand Trunk Road—Asia’s oldest and longest road—that connects Kolkata and Agra. 

How Cricket Fans Can Reach the Eden Gardens? 

Now that you’ve reached Kolkata, here’s how to reach Eden Gardens: 


Kolkata metro is not only India’s first metro rail network but is also the first underground metro railway network in India.  

The closest metro stations to Eden Gardens are: 

  • Esplanade 
  • Chandi Chowk 
  • Park Street 


Get a bus to Eden Gardens or a yellow taxi to Babughat to get to Eden Gardens. You can quickly board these from the Howrah Bridge (Rabindra Setu) or the second Hooghly Bridge (Vivekananda Setu).  

You can also get a cab directly to Eden Gardens. 


Eden Gardens has its railway station called the Eden Gardens Circular Railway Station. You can ask any local about Chakra Rail for more information. 

What to Explore in Kolkata? 

Along with enjoying the Semi-Finals 2 in Eden Gardens, here are some other things that you can do in Kolkata: 

For Foodies 

Every food lover’s paradise, Kolkata, has shops that offer the most delicious food. Some restaurants that you cannot miss out on are: 

  • Street food (Esplanade) 
  • Girish Chandra Dey & Nakur Chandra Nandi (near Bethune College) 
  • Sen Mahasay (Shibdas Bhaduri Street near Mohun Bagan Lane) 

For History Buffs 

Kolkata has a rich history, and some tourist places that you can visit to experience are: 

  • Netaji Bhavan (Bose’s birthplace) 
  • Jorasanko Thakurbari (Tagore’s birthplace) 
  • 105 Vivekananda Road (Vivekananda’s Birthplace) 
  • Belvedere Road (Ray’s birthplace) 
  • Gurudwara Bara Sikh Sangat (Guru Nanak Dev Ji stayed here for a brief period) 

For Shoppers 

Kolkata is a shopper’s paradise, and there are so many street shops that sell a variety of products, from clothes and jewellery to electronics and handicrafts. Some areas you should visit for street shopping are: 

  • Gariahat 
  • New Market 
  • Shyam Bazaar 

The ICC World Cup contributes significantly to the country’s economy; sports tourism benefits the local economy with the footfall rising by 5–10%. Similarly, raw materials procurement benefits the local economy as well, as seen by how the construction of the Golden Quadrilateral resulted in a 43% increase in manufacturing activities and increased employment. 

At Moglix, we help improve India’s urban transport infrastructure by streamlining the accessibility and affordability of construction raw materials procurement for building various India’s infrastructure projects. Contact us at info@moglixbusiness.com to learn how we can help you enhance your infrastructure initiatives. 

The Road to Wankhede, Mumbai: How Cricket Fans Can Maximize Semi Final 1, ICC Men`s World Cup 2023

The Road to Wankhede, Mumbai: How Cricket Fans Can Maximize Semi Final 1, ICC Men`s World Cup 2023

On November 15, 2023, Wankhede Stadium, Mumbai will host the first semi-final of the ICC Men’s World Cup 2023. Wankhede Stadium has a capacity of 33,000 and has seen some historic performances, including India’s legendary victory in the ICC Cricket World Cup 2011 final against Sri Lanka.  

Keep reading to discover how you can travel to Wankhede Stadium, Mumbai to witness what could be another legendary victory. 

Reaching Mumbai 

It’s ICC Men’s World Cup 2023 Semi-Final 1, so expect high travel-ticket prices, but you still have options to choose from: 


Chhatrapati Shivaji International Airport, one of the top airports in India, has an average footfall of 140,000 passengers across more than 880 flights. It is also the second busiest; pre-book your cabs to avoid rushing. 


The Mumbai metro railway network in India carries about 7 million commuters daily, making it the world’s busiest railway system. For easy commuting, the National High-Speed Rail Corporation Limited is working on its bullet train project, connecting Mumbai and Ahmedabad. 


You can use the National Highway (NH) 48, part of the Golden Quadrilateral, to reach Mumbai by road. While the highway connects Mumbai to Delhi and Chennai, it passes through cities like Ahmedabad, Pune, Jaipur, and Bhubaneswar. 

The traffic congestion on the highway could ease up, as in 2022, Nitin Gadkari—Transport Minister—laid the foundation for 19 projects worth ₹1,000 crore to prevent traffic and accidents on the NH 48. 

Navigating the City to Reach Wankhede Stadium 

Once you’ve reached Mumbai, it won’t be long before you experience its infamous traffic. Here are some tips to avoid getting stuck: 


Mumbai Metro operates a line between Ghatkopar and Versova from 5:30 am to 11:20 pm. It stops on the following major points: 

  • Ghatkopar 
  • Jagrutinagar 
  • Asalpha 
  • Saki Naka 
  • Marol Naka 


Flag a cab or auto or board a bus for travelling to and from Wankhede Stadium. Some key transit points that you can follow when travelling by road are: 

  • Vashi bus and metro station 
  • Apna Bazar Vashi Sector 17 
  • Vashi Highway 

You could also take the Mumbai Trans Harbor Link, India’s longest sea link bridge, as it connects the stadium to Navi Mumbai. 

Local Train 

Take any train to Churchgate Railway Station, just 600 m from the stadium. 

Places You Cannot Miss in Mumbai 

Just because you’re here to see India win the Semi-Final 1 doesn’t mean you cannot explore Mumbai. Mumbai has something for everyone: 

For Foodies 

Some iconic spots you should try are: 

  • Muhammad Ali Road (kebabs) 
  • Cafe Madras Matunga (South Indian) 
  • Gaylord Marine Drive (fine dining) 
  • Sahibaan Worli (North Indian) 
  • Martin’s Colaba (Goan food) 
  • Sarvi Nagpada (Mughlai food) 

For History Buffs 

Visit the following historic tourist spots: 

  • Elephanta Caves 
  • Gateway of India 
  • Kanheri Caves 
  • Ajanta Caves 

For Shoppers 

Mumbai is known for its colorful markets; some you could try are: 

  • Zaveri Bazaar (jewelry) 
  • Lokhandwala Market (branded clothes and accessories) 
  • Crawford Market (dry fruits and spices) 
  • Mangaldas Market (textiles) 
  • Linking Road (Fashion) 
  • Hill Road (street shopping) 
  • Chor Bazaar (antiques) 

Sporting events such as the ICC World Cup increase consumer spending across industries such as hospitality. For example, in the IPL 2023 (Q2), customers spent 1.5% more than other quarters.  

Besides sports tourism, the procurement of construction raw materials also contributes to the local economy. For example, the bullet train project has created over 90,000 jobs.  

At Moglix, we streamline the infrastructure for first mile and mid-mile logistics, contributing to India’s urban transport infrastructure. To understand how we can facilitate your infrastructure projects, email us at info@moglixbusiness.com.

5 Ways CEOs of Infrastructure Construction Project Developers in India Can Improve EBITDA

5 Ways CEOs of Infrastructure Construction Project Developers in India Can Improve EBITDA

CEOs of infrastructure construction project developers in India face many hurdles in running their businesses, including cost escalation, quality issues, project delays, and regulatory hurdles. This can severely impact the company’s EBITDA (earnings before interest, taxes, depreciation, and amortization), a key profitability and efficiency indicator.  

This article will discuss five ways CEOs can optimize their procurement processes to improve their EBITDA margins further. 

5 Strategies to Boost EBITDA for Construction Project Developers in India 

A higher EBITDA signals a better capacity to generate operational profits and cash flows and can be improved through the following methods: 

Vendor Consolidation 

Reducing and consolidating the supplier base available for procurement of construction raw materials, such as TMT bars, structural steel, fabrication, and ductile iron pipes, can help achieve economies of scale. This translates into lower logistics expenses without compromising the supply’s quality, leading to better profitability margins and a simplified contract management system.  

Digital Project Management 

Implementing digital project management tools like a RACI (Responsible, Accountable, Consulted, and Informed) matrix can facilitate better construction schedule mapping and reduce task redundancy, stemming cost overruns. Using the matrix; the project developers can distinctly define the roles and responsibilities of their suppliers, establishing clear communication, transparency, and accountability among all the stakeholders.  

Supplier Capability Mapping 

Thoroughly assessing India’s top construction raw material suppliers and their capacities before awarding the project is another way to improve EBITDA margins. Supplier mapping involves a comprehensive evaluation of the vendor’s competence, delivery timelines, quality standards, and compliance records, which enables improved decision-making and risk management. By further defining the credit terms and payment cycles, developers can minimize supplier disputes and cash flow problems.  

Inventory Optimization 

Another way to enhance profitability is to optimize the inventory levels of the construction raw materials and semi-finished goods and reduce their holding costs by fully utilizing the limited storage space. Inventory management techniques like just-in-time (JIT) for pipes, electricals, and cables can reduce wastage and product obsolescence by closely matching the inventory levels to the production schedule, supplier capacity, and product demand, eliminating the risk of stock-outs that can delay the project’s completion. 

Pre-Engineered Buildings (PEBs) 

Unlike conventional buildings, PEBs are factory-made, standardized structures assembled on-site, sometimes shortening the project schedule by almost 10-15 weeks. Using them can result in significant cost savings, better quality control, and higher energy efficiencies, crucial in raising construction EBITDA by a colossal 10-15%

Achieve Operational Excellence with Moglix 

Adopting the outlined strategies, including supplier mapping, inventory optimization, and digital management, can aid infrastructure construction companies in improving their business performance.  

However, an easier way to gain a competitive edge is to implement Moglix’s EPC solution, which end-to-end automates and streamlines your supply chains, enables vendor consolidation and catalog-based buying, and centralizes all procure-to-pay processes on a unified platform. 

Write to us at info@moglixbusiness.com to learn how we can take your business to new heights.

Ideas for Building India`s National Infrastructure Pipeline for Healthcare and Education

Ideas for Building India`s National Infrastructure Pipeline for Healthcare and Education

What Has Been the Progress in Building India’s Healthcare and Education Infrastructure till Now in 2023?  

 Healthcare, education, and human capital formation form a triangle. Two achievements speak volumes about the progress in building India’s healthcare and education sectors. First, is India’s major success in its vaccination against COVID19. Second, is the unraveling of the National Education Policy in 2020.   

India has made significant strides in healthcare and education. In healthcare, the country has improved access to medical services and witnessed a decline in certain communicable diseases through widespread vaccination campaigns and disease control programs.   

Additionally, the government’s efforts to strengthen healthcare infrastructure and expand insurance coverage have positively impacted millions of people.   

In education, there has been an increased emphasis on primary education, with a notable rise in enrollment rates and improvements in learning outcomes. The adoption of technology in education has also played a pivotal role in enhancing access to quality education for many, especially in remote areas.  

These success stories in healthcare and education have been and will continue to be shaped by the supply chain powering India’s National Infrastructure Pipeline.  

What Are the Major Opportunities for EPC Infrastructure Companies in Healthcare and Education Infrastructure Construction?    

Opportunities for EPC Infrastructure Companies in Healthcare Infrastructure 

There are 57 projects worth INR 31964 crores under conceptualization in India’s healthcare infrastructure sector. Further, there are 33 projects worth INR 17550 crores which are under development and another 326 projects worth INR 131000 crores which are under implementation.   

Opportunities for EPC Infrastructure Companies in Education Infrastructure  

In the education sector, there are 72 projects worth INR 43157 crores under conceptualization. Another 75 projects worth INR 52119 crores are under development. Moreover, 252 projects worth INR 112000 crores are under implementation.   

What Supply Chain Solutions Do EPC Infrastructure Companies Need to Leverage Opportunities in the Healthcare and Education Sectors?    

Pre-Engineered Building (PEB) Construction Technology Using Steel and RCC  

PEB construction technology can be the answer to India’s requirements of fast healthcare and education infrastructure construction and project completion. 

Pre-engineered buildings are structures designed and fabricated off-site, using computer-aided tools and advanced materials. They are highly versatile, cost-effective, and time-efficient solutions for various construction needs.   

Components are manufactured to precise specifications, enabling easy assembly on-site, reducing construction time significantly. These buildings offer excellent strength, durability, and can be customized to meet specific requirements.   

They find applications in warehouses, factories, commercial spaces, and more. With their sustainable approach, rapid construction, and flexibility, pre-engineered buildings have become a preferred choice for modern construction projects, offering a practical and efficient solution for various industries and applications.  

Prefabricated buildings or pre-engineered buildings are custom manufactured as per the engineering drawing. These can be built either with structural steel or reinforced concrete cement (RCC). Once built these can be carried to the project site and deployed quickly.   

Exactly how quick? There is a recorded instance wherein a 33-storey apartment with 8 flats of 1000 sq.ft built area each, has been deployed in 12 days sharp.   

Imagine the speed of execution of medical healthcare and education infrastructure during crises when we say we need a hospital in no time.   

Vendor Consolidation Across Fabrication, Construction Raw Materials, and Indirect Procurement  

A significant speed breaker in the construction schedule of medical and educational infrastructure is the fragmented supplier base. A project developer may have to rely on diverse suppliers for construction raw materials, fabrication, electricals & cables, drainage systems, pipeline networks and plumbing.   

There are strategic interdependencies among these tasks that call for resource mapping and task mapping. When project developers and sub-contractors work with multiple suppliers, there is a high probability of failures including:  

  • Product failure  
  • Process failure  
  • Systems failure  
  • Design failure  

In the absence of a centralized data governance model, it is difficult for the CTO to map business intelligence. It is difficult for the CPO to track spend analytics. The opacity also impedes the ability of the COO to harmonize these activities as per the critical path method.   

This is where vendor consolidation can help EPC project developers act with agility at scale and complete medical and educational infrastructure projects on time.   

Vendor consolidation works when a project developer relies on a procurement outsourcing model to manage all its suppliers. There are multiple layers in the full-stack vendor consolidation model for infrastructure projects.   

First is systems integration across data sets, devices, and departments. Second, is process integration and collaborative planning. A great example of such collaborative planning is the PM Gati Shakti policy. Third is the creation of a single procurement supply chain analytics dashboard as a single source of truth for the CPO, CTO, COO, and the CFO.   

An example of a vendor consolidation success story in healthcare and education infrastructure is that of the Phulbani Medical College in Odisha.   

Solar Rooftop Installations for Self Sufficiency in Renewable Energy Production  

We have all had our share of lessons in public healthcare from the COVID19 pandemic. One of the lessons learned is the importance of hospitals, nursing homes, and diagnostics centers being self-sufficient for energy.  

There are several ways for medical infrastructure projects to tap into renewable energy production. One of the easiest and most affordable ways is to have solar roof top installations.  

The Ministry of Renewable Energy, Government of India under its new solar energy policy has rolled out a substantial subsidy to partly finance solar roof top installations. Further, OEMs and component manufacturers are responding to the clarion calls of “Vocal for Local” and “Make in India” with CAPEX investments for the manufacturing of solar PV cells, wafers, and module mounting structures.   

Solar rooftop installations can enable medical and educational institutions to become self-reliant in energy production. Schools, colleges, medical colleges, hospitals and universities will be better equipped to provide uninterrupted services, if they are able to solve the problem of intermittent power cuts.   

ARC Led Model for Preventive and Breakdown Maintenance  

A pain point that continues to plague India’s education and public healthcare sectors is the lack of preventive and breakdown maintenance of infrastructure assets.   

Such infrastructure assets include drainage systems, sewage systems, drinking water pipelines, electrical wiring, medical beds, and signages that users may need to navigate from one point to another within the college or hospital premises.   

It is in this context that public-private partnership (PPP) models of infrastructure construction can help. PPP models like build-own-operate (BOO) and build-own-operate-transfer (BOOT) can help resolve the challenges of student-dropout in schools and help improve medical outcomes in hospitals.   

An annual rate contract led model for indirect procurement can solve the pain points of infrastructure maintenance. An ARC model can bring much needed transparency to line item wise spend analytics and enable on-time replenishment of MRO items as per pre-defined buffer stocks and reordering inventory levels.   

The Catalog for EPC Project Developers and Sub-Contractors That Are Building India’s Utilities Infrastructure    

Moglix offers a comprehensive catalog of construction raw materials procurement, indirect procurement, and custom manufacturing solutions to EPC project developers and sub-contractors.   

To know more about opportunities in the education and healthcare sub-sectors in India’s National Infrastructure Pipeline, download our e-book “Building India: The Infrastructure We Aspire for and the Supply Chain We Need, Second Edition.”