CONSTRUCTION INDUSTRY IS DIVIDED IN TO THE FOLLOWING THREE SECTORS -------------------------------------------------------------------------1) Contractors / Construction Companies

2) Construction Machinery Mfrs.

3) Construction Material Manufacturers a) Cement

b) Steel construction Grade

c) Glass construction Grade d) Marble, stone & Granite e) Ceramics & Sanitary ware f) Aluminum & Other metals g) Wood & related Production

BEST CONSTRUCTION COMPANIES AS PER :

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) L&T Jai Prakash Inds. IRCON International KEC International Gammon India Engineers India Hindustan Construction Skamska Cementation Simplex Concrete piles Thermax Dredging corpn. Of India NCC IVRCL Infrastructure & Projects Gannon Dunkerly & Co. Kalpataru Power Transmission Soma enterprise Unitech Constructions Patel Engg. Madhucon Projects Konkan Railway projects. 21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) JMC Projects (India) Subhash Projs & Makts. Ansal Properties & Industries Bhageeratha engg. Mulas Infrasts. B. Engg. Petron Engg. Construction Era constructions Ansal Housings & construction. Hindustan Dorr-oliver Valecha engg. DS Kulkarni Developers Ansal Build well Cimmco Birla Alacrity housing Mukand Engg. / Engts. Lok hoyuisng & construction KND Engg. Technologies JOG Eng.

PROFIT WISE BEST CONSTRUCTION COS.

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) L&T Dredging Corporation of India Jaiprakash Inds. IRCON International Engineers India Thermax Hindustan Construction Gammon India Ltd. Madhucon Projects NCC Patel Engg. IVRCL Infrastructure & Projects UniTech Ansal Properties & Industries Soma Enterprises Kalpataru Power Transmission Simplex Concrete piles (India) Gannon Dunkerly & Co. Valecha Engg. Ansal Housings & Construction 21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) Sanska Cementation India. Hindustan Dorr-oliver Era constructions Mytas Infrastructure JMC projects (India) Subhash Projects & Mktg. DS Kulkarni Developers Ansal Build well Dlacrity Housing Bhageeratha Engg. Petron Engg. Constructions Lok Housing & Construction Mukand Engineers UB Engg. KND Engg. Technologies KEC International JOB Engg. Cimmco Birla Konkan Railway Corporation

FASTEST GROWING ALUMINIUM CONSTRUCTION IN INDIA ------------------------------------------1) Man Industries (India) 2) National aluminium Comp. 3) Madras Aluminium Company 4) PG Foils

FASTEST GROWING STEEL COMPANIES IN INDIA -------------------------------------1) Welspun Gujarat Stali Rohren 2) TATA Metallics 3) Jindal Steel & Power 4) Kalyani Steels 5) Saw pipes 6) Monnet Ispat 7) Maharashtra Seamlers 8) Shah Alloys 9) Shivalik Bimetal Controls 10) Ratti Udyog 11) National Steel & Agro Indust. 12) Steico Strips.

5) Indian Aluminum Coy.

6) Associated profiles & Alumn. 7) Hind Co. Industries 8) India Foils

THE TOP 50 CONSTRUCTION CONTRACTORS IN THE WORLD :

1) 2) VINCI Rueil Malmaison cedex, France BOYGUES, saint Quentinen Yveliness codex, France

3)
4) 5) 6)

Skanska AB, Stockholm, Seden

Shimizu Corpn. Japan (Tokyo) Bechtel, San Francisco, Calif, USA Kajima Corpn., Tokyo, Japan

7)
8) 9) 10) 11) 12) 13) 14)

Taisei Copn., Tokyo, Japan

Obayashi Corpon., Tokyo, Japan Hoctief, Essen , Germany Grupo ACS, Madial, spain Centex, Dallas, Taxas, USA Takenaka Corpn. Osaka, Japan CSCEC, Beijing China Royal BAM Group, Bunnik, the Netherlands

Contd..2..

 2 ...
15) 16) 17) 18) 19) 20) 21) 22) 23) 24) 25) 26) 27) 28) 29) 30) China Railway Engg. Corpn. Beejing, China China Railway Construction Corpn. Beijing China KBR Housing, Texas, USA Fomento de Constra y. Contratas (FCC) madrid, Spain Fluor Coprn. Aliso Viejo, Calif, USA Ball holding strabag, spitta / Drau, Austria AMEC, London, UK Bilfinger Berger Manneheim, Germany. Ferrovial, Madrid, Spain Batfour Beatty, London, UK TECHNIP, Paris LA Defense, Cedox, France Sumitomo Mitsui Construction Coy, Tokyo, Japan Tida Corp. Tokyo, Japan China Metaallurgical Construction Corpn. Beijing, China Nishimatsu Construction Coy. Tokyo, Japan. Bonis land lease, haroow, middlesesc, UK

Contd..3..

 3 ...
31) 32) 33) 34) 35) 36) 37) 38) 39) 40) 41) 42) 43) 44) 45) 46) 47) 48) 49) Hyundai Engg. & Construction Coy. Seanl., S.Korea Maeda Corpn. Tokyo, Japan Kandenko Coy. Tokyo, Japan Leiglstion Holdings, st. leonards, NSW, Australia Kinden corpn. Osaka, Japan Peter Kiewitsons, Omaha, Nebraska, USA NECSO Entrecanales Cubiertas, Madrial, Spain. IMPREGILO, Milan, Italy. China Garbour Engg. Coy. Beiljing, China Shanghai construction General Coy., Shanghali, china Obrascon Huarte Lain (OHL), Madrid, spain. Daweood E & C coy. Seoul, S.Korea Sanmprogetti, Milan, Italy Foster wheeler, chinton, NJ, USA JGC Corpn. Yokohama, Japan Penta-ocean construction coy. Tokyo, Japan The Show group baton Rouge, La, USA The clark construction group, Bethesda, Md, USA Kier Group, Sandy, Bedfordshire, U.K

IMFL:
1) A Specialized Agency of the UN System set up by a treaty in 1945 to promote the health of global economy with HRs at Washington DC by 45 representative countries. 2) AIMA: a) b) Preventing Crisis A Centrailised instn.

c)
d)

A Fund to face members BOP problems

Promoting the balanced expansion of i) World Trade, ii) Stability of exch. Rates,

iii) Avoidance of competitive currency devalnations, iv) Orderly correction of A countrys BOPs. e) f) Monitoring Economic & Fin. Developments Fending policy advice in technical form also.

3) Structure
184 Members Internationally Rectd. Staff. DMD-1 M.D. DMD-2 DMD-3

IMF

EB Governors

4) Sources :

IMFs refources coneform the qunta subscriptions that

tconntries pay when they join the IMF or following periodic reviews in which quotas are increased.
5) SDRs : i) The SDR is an international reserve asset introduced by the IMF in

ii)

1969 out of concern among IMF members that the current stock & prospective growth of Interational reserves might not be sufficient to support the expanision of the world trade. SDRs some times kown as Paper gold although they have no physical form have been alldated to member countries as a% of their quotes.

IMF SURVELANCE:
1) 2) The Principles of survillance were set out in 1977 as pr the general economic situation & policy strategy of each member conutry. Policies covered by surveillance: a) Exchange rate monetory & fiscal policies b) Strucural policies on intl trade, labour mkt. Issues & Power sector reform c) Financial sector issues (1999) like: Finanical Sector Assessment Programme (FSAP) d) Institutional issues

e) Assessment of cisks & Vulnerabilities.

3) IMF lending:i) Low Income countries may borrow at a concessional interst rate through the povverty reduction & Grow the Facility (PRGF)

ii) Non concessional loans by

a) Stand by Arrangements (SBA) b) Extended fund facility (EFF) c) Supplemental Reserve Facility (SRF) d) Contingment credit lines (CCL) e) Compensatory Financeing Facility (CFF)

4) IMF Facilities & Emerancy Assistance (3-5 years) (Technical Assistance coreareas)
FISCAL POLICY:a) Tax policy, b) Tax & sutoms admn., c) Expenditure policy, d) Budgeting & Public Exp. Mgt., e) Fiscal mgt., f) Fiscal federalism. ii) MONETARY POLICY a) Central banking & currency arrangments. b) Monetary & Exchnage policy operations public debt management. c) Financial mkt. Development, focussing particularly on money, Govt. debt & Foreign exchange markets. d) Exchange systems & currency convertibility. e) Payment systems. f) Bank supervision & regulation. g) Bank restructuring & banking safety nets. h) Implementation of international standards. 5) STATISTICS a) Multi sector statistical issues. b) BOPs & external debit statistics. c) Govt. finance statistics. d) Monetary & Financial statistics. e) National accounts & price statistics. f) Data dissemination standards. i)

IBRD:
a) IBRD provides important support for poverty reduction by providing its middle income client countries access to capital in larger volumes, on good terms, with longer meturities, and in a more sustainable manner than the market provides. b) FUNCTIONS: i) Supports LT human & social development.

ii)

Preserves borrowers financial strength.

iii) Uses the leverage of finance to promote key policy institutional reforms.

iv) Catalyses private capital by helping create a favourable

investment climate. v) Provides financial support for global public goods.

C. ELEMENTS OF IBRDS FINANCIAL STRATEGY.

i) ii) iii) iv) Preserving AAA-rate financial strength. To maintain income generating capacity. Capital commitments of 184 sovereign share holders. Strong record of repayment by borrowers, reflecting priority given to IBRD debt. v) vi) vii) Conservative financial mgt. Substantial liquidity Conservative capital structure.

viii) Risk minimising lending policies.

ix)
x) xi)

Achieving efficient inter mediation.

To ensoure cost effective funding for development uses. Wide access to markets.

Contd..2..

.. 2 ..
xii) 50 years of capital market innovation.

xiii) Leadership in new products, structural finance, emerging market in insurance. xiv) Wide underenfiter partnership

xv)

Diversified global investor base

xvi) Ample Treasury liquidity xvii) Active ALM xviii) Adapting to borrower needs

xix) Ensuring flexibility & innovation in client needs

xx) Product innovations to help clients manage their financial debt, and crises strategies. xxi) Wide borrower choice in loan types.

xxii) Increasing currency & interest rate choice

xxiii) Flexible guarantees, both to help private sector financing & to support reforms xxiv) Interested choice of lending terms

ASIAN DEVELOPMENT BANK (ADB)

1) 2) ADB in one of the regional banks established by World Bank in Asia like Latin American and African regions. ADB is the result of the recommendation made by the economic commission for Asia and Far Easte (ECAFE) in 1965-1966.

OBJECTIVES & FUNCTIONS

1) 2) 3) 4) 5) 6) To realise the objective of Asian region development To promote investment of public & private capital for economic development of Asian countries. To channelise invisible funds of the ADB for the implementation of these imp. Sectors in economics. To render assistance to member countries in coordinating their policies & Programmes. To promote technical assistance to execute the projects. To mobilise funds for economic development of member countries.

MEMBERSHIP
1) Membership is open to all the counting is Asia. 2) Developed countries of other regions for funds procurement were also admitted. EG: US, UK, Westgermany, Canada, Japan.

LENDING OPERATIONS OF ADB:

1) Larger potions of ADB loans should be given to relatively poorer among developing countries in Asia 2) The Govt. of the borrowing country has approved the loan by ADB being given to the Pvt. Or public sector companies. 3) The chairman of ADB has received a detailed report of the project for which the ADB is to provide loan. 4) The ADB while giving loan also takes in to consideration prospects of loans which the applicant may receive from other than ADB source. 5) Generally, the ADB loans are to be used within the markets of member countries for purchase of essential goods etc. 6) The ADB will function strictly keeping in view the sound principles of banking.

UNCTAD
1) Estd. In 1964, aims at the development friendly integration of developing countries in to the world economy. 2) UNCTAD is the focal pint within the UN for the integrated treatment of trade and development and the inter related issues in the areas of finance, technology, investment and sustainable development. 3) It is a forum for inter governmental discussions and deliberations, supported by discussions with experts and exchanges of experience, aimed at consensus building. 4) It undertakes research, policy analysis and data collection in order to provide substantive inputs for the discussions of exports and government representatives.

MAJOR ISSUES ADDRESSED

1) 2) 3) 4) 5) Issues related international trade Investment enterprise & Technology promotion Promoting Globalisation & encouraging inter dependence & development. Boost to services infrastructure for development trade efficiency and HRD. Least developed, land locked and small island developing countries assistance. 6) Technical cooperation activities for logistics & SCM of financial assistance.

THE INTERNATIONAL TRADE CENTRE (ITC)

The ITC was created by GATT in 1964 & since 1968 has been operated jointly by GATT.

KEY AREAS OF ITC OPERATIONS

1) Product & Market development.

2) Development of trade support services.

3) Trade information. 4) Human resource Development. 5) International purchasing & supply mgt.

6) Needs assessment & programme design for trade promotion.

ITCs GOALS
1) 2) Facilitate the integration of its clients into the world trading systems. Support national efforts to implement trade development strategies.

3)
4) 5)

Strengthen key trade support services, both public and private.

Improve export performance in sectors of critical importance & opportunity. Foster international competitiveness of SMEs.

EMERGING TRENDS IN IB
1) Strategic Alliance, 2) International sourcing, 3) De-Integration 6) Joint ventures

4) Foreign Investments 5) Mergers & Acquisitions

7) Economic Integration & Trade pacts. (T. Block to T. Block) 8) Globalisation 9)Counter Trade practices. 10) Licensing practices.

TRADE BLOCKS (OR) MULTILATERAL INSTITUTIONS

a) The EEC is also known as european common market consisting countries, viz. France, Germany, Italy, Belgium, Netherlands and Luxembourg, U.K., Ireland, Denmark, Greece, Portugal, Spain, Austria, Finland, Sweden.

b)

CONDITIONS FOR JOINING IN EEC:i) The country must be European country and ii) It must be a democratic country.

c) ACTIVITIES OF THE EEC

i. Elimination of custom duties, quantitative restrictions with regards to exports & imports of goods among member countries. ii. Formulation of OC common customs tariff and common commercial policy with regards to non-member countries. iii. Abolition of all obstacles for movement of persons, services and capital among member countries. iv. Formulation of common policy in the area of agriculture. v. Formulation of a common policy in the area of transport vi. Establishment of a system which would ensure competition along member countries. vii. Application of the procedures & programmes to control the disequilibium in the BOP of member countries. viii. Application of programmes in order to coordinate the economic policies of the member countries. ix. Approximation of legislation of the member govts. To the extent required for the proper functioning of the common market. x. Establishment of European Social Fund with a view to enhance the employment opportunities for workers & to improve their std. of living. Xi. Establishment of European Invt. Bank & promote association of foreign countries.

ORGANISATION STRUCTURE OF THE EEC

European Council Sect. Committee of Permanent Representatives

Court of justices Agriculture Social security Competition policy

Court of Aviators EEC Budget Monitoring Expenditure

European commission Commissioner s & Assets

European parliament Consultation Approvals

Advisory Committees Economic Social Coal Steel & Industry

NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)

1) NAFTA came in to being on Jan. 1, 1994.

The most affluent nations of the world i.e., USA, Canada, along with
mexico a developing country joined together to form a trade block. 2) A free trade agreement was signed by USA and Canada in 1989. This was extended to Mexico in 1994. 3) NAFTA is expected to eliminate all tariffs and trade barriers among these countries by 2009. However, internal tariffs on a large no. of

product categories were removed at ready.

4) NAFTA has a population of 363 million and hence it is one of the significant particularly in MEXICO.

OBJECTIVES :
1) 2) To create new business opportunities particularly in MEXICO. To enhance the competitive advantage of the companies operating in USA, Canada and Mexico in Wider international markets.

3)
4)

To reduce the prices of the products and services by enhancing the competition.
To enhance the industrial development and there employment through out the region.

5)
6)

To provide stable and predictable political environment for the investors.

To develop industries in mexico in order to create employment and to reduce mistration from mexico to USA.

7)
8)

To assist Mexico in earning additional foreign exchange to meet its foreign debt burden.
To improve and candidate political relationship among member countries.

MEASURES :
1) Opening up of govt. procurement markets in each member country of NAFTA. 2) Residents of NAFTA countries can invest in any other NAFTA countries freely. 3) Protection of IPR of NAFTA member countries 4) Simplification and harmonization of product standards in al the member countries of NAFTA. 5) Free flow of employees and business people from one member country to another. Prevention of non-mexican firms assembling goods in Mexico. 6) Avoidance of re-export of the products imported by any member country from the third party. 7) Pollution control along the USA mexico border

CRITICISM :
1) Most of the US industries will shift to Mexico as Mexico has less stringent norms of enviornmental health & safety lands. 2) NAFTA agreement is implemented without prior preparation. Therefore, mexican economy may face adjustment & assimilation problems than USA and Canada.

THE ASSOCIATION OF SOUTH EAST ASIAN NATIONS CASEAN

1) A group of six countries, Viz., Singapore, Brunei, Malaise,

Philippines, Thailand and Indonesia agreed in Jan., 1992 to

establish a common effective preferential tariffs (CEPT) plan. 2) This plan helped to create an association of South East Asian Nations (ASEAN) free trade area in 15 years with effect from Jan., 1993. The CEPT allows fortariffs cut ranging from 0.50 percent to 20 percent beginning with 15 products. 3) ASEAN countries have close cohesiveness, share their

economic and human resources and achieve synergy in the

development of agricultural sector, industrial sector and services sector.

ASEAN FREE TRADE AREA (AFTA)

1) The ASEAN countries are vigilant of the developments in the international environment like the formation of NAFTA, SAARC and the introduction of EURO. AFTA was formed in September, 1994. AFTA initially set 10 years in order to develop inter ASEAN trade.

2)

Objectives of the AFTA:

a) To encourage in flow of foreign investment in to the surgeon. b) To establish free trade area in the ember countries.

c) To reduce tariff of the products produced in ASEAN countries.

40% value addition in the ASEAN countries to the product value is treated as manufactured in ASEAN countries.

BUY SUB CONTRACTING IN CONSTRUCTION INDUSTRY

Constructing in the construction industry has been well documented. Management faces uncertainty and risk in competitive building and tendering in this sector where sub contracting is widely used to give the main contractor the flexibility needed to complete on site, customised project. Thus the risks are spread among the sub contractors but the main contractor still has to tackle the problem of control, particularly the quality of bought in components and systems. Where safeguarding production quality is especially critical the main contractor has to either do more of the work in house or exercise tighter and systematic control over the sub contractors. Studies have found that in general terms the level of sub contracting by the construction firm is an outcome of firms strategic orientation and the managements choices with regard to structural elaboration and technology as they respond to the volume and nature of work faced by the organisation. It appears to be the interplay between these variables that determine the level of sub contracting by the firm.