The year 2024 will present a series of dynamic and transformative growth opportunities for EPC project developers in India. The center is fusing Rs 143 lakh crore into modernized railway infra, clean energy, power, and defense sectors. Thus, EPC project heads should prepare to be a part of this sustainable development for reshaping India’s industrial future. In this regard, let’s look at some key events that EPC project heads should consider as their golden ticket to big growth and transformation.
Events in 2024 That Project Heads of EPC Project Developers Should Watch Out For
Four essential 2024 fabrication outlook agendas for EPC project heads:
Railway Infrastructure Spending
India plans a massive upgrade of its railway infrastructure through significant investments and technology improvements. The proposed purchase of 8 high-speed bullet trains promises enhanced connectivity and reduced travel times. Additionally, the redevelopment of over 1,300 stations aims to improve passenger experience while enabling infrastructure growth. Along the same line, the government has ambitious plans to invest in 400 Vande Bharat trains and 3000 new passenger trains in 5 years to demonstrate a commitment to expanding and upgrading the railway network. These projects offer EPC firms ample contracts and tenders for civil construction, signaling, electrification, and rolling stock.
Clean Energy for Mobility
India’s clean mobility sector holds promising growth potential. The goal to command 30% of the global clean mobility market by 2030 reflects an aggressive sustainable transportation push. This entails ₹30 lakh crore investments, with ₹8 lakh crore for green hydrogen development to revolutionize car fuels in years to come. This could be a great opportunity for EPC heads to prepare for addressing concerned manufacturing, charging infrastructure, and energy storage solutions.
Power and Energy
India’s power sector will likely undergo rapid expansion. With power consumption projected to reach 4 trillion units by 2030, growing at 13% CAGR, the sector’s total addressable market is estimated at ₹24 lakh crore. This trajectory offers renewable energy, grid modernization, and energy efficiency prospects.
Defense Sector Spending
India’s defense sector, already the 4th highest global spender, offers emerging EPC potential. Exports to 84 countries and 20% CAGR in defense exports showcase robust expansion. The sector eyes ₹1.75 lakh crore turnover by 2025, presenting infrastructure, manufacturing and maintenance opportunities.
Fabrication Solutions that Project Heads of EPC Project Developers Should Adopt in 2024
Invest in Plant Capacity Expansion and Geographical Diversification
How can your company handle big projects without capacity and service upgrades? It’s crucial. Expanding plant capacity and upgrading machinery and technology is crucial for meeting rising project demand and complexity. Geographical diversification reduces logistics challenges and costs while positioning firms closer to project sites and raw materials, enabling faster, more efficient execution.
Control OPEX Costs & Outsource Auxiliary Works
Almost 27% of organizations outsource to reduce operational costs. Outsourcing non-core activities like painting, fabrication, and welding to specialized subcontractors can significantly reduce operational expenditures. This allows focusing on core competencies while leveraging efficiencies of scale and expertise.
Develop Captive Suppliers with JIT and VMI Capabilities
Imagine the peace of eliminating inventory while accessing materials on-demand from vendors with fast delivery. Establishing captive suppliers with Just-In-Time and Vendor Managed Inventory capabilities can do the same to streamline supply chains. This approach reduces inventory costs and ensures timely material availability, minimizing delays and cost overruns.
Onboard Suppliers onto the Digital Platform
Nearly 83% of CPOs consider digitizing the procurement for enhanced efficiency. Integrating suppliers into a digital project management platform enhances communication, transparency, and real-time tracking of material and progress with ease.
Explore Early Supplier Payment for Bottlenecks
Around 71% of companies feel raw material costs are one of the major supply chain threats. Therefore, EPC firms should consider early payment for bottleneck items to ensure all essential construction materials are available to handle dynamic project requirements and to build strong relationships with suppliers.
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