Prefab construction reshapes real estate
A catalyst
Government regulation will be a key driver in accelerating adoption, especially for affordable housing and smart city developments. The Pradhan Mantri Awas Yojana (PMAY) is becoming increasingly reliant on prefab to deliver on time. To build 18.8 million urban housing units sounds overwhelming enough, but the rollout of 500 prefabricated toilets along Ayodhya's ghats demonstrates that there is a way to expedite projects incorporating modular construction through ready-to-assemble kits.
Prefab can ramp up execution speed while minimising waste, as well as enforce an overall reduction in resource consumption of 20%, enhance thermal efficiency with higher-grade insulation, and provide earthquake-resistant technology with lightweight steel frames. Not only does this align with India's sustainability performance goals but it has also attracted luxury developers offering customisable high-technology homes with premium finishes.
Although it shows great promise, prefab construction has barriers to overcome. Many prospective buyers still have doubts about durability and overall aesthetics or design flexibility; many developers are still fearful of logistics costs and design rigidity. Regulatory fragmentation and the limited supply of skilled workers also inhibit adoption.
New policy reforms
Nonetheless, new policy reforms, including the introduction of blockchain-based land records and new REIT structures, are increasing the transparency of land and returning informal land ownership to a more equitable outcome. Urbanisation is now continuing to Tier 2 and Tier 3 cities through India's Smart Cities Mission. In this context, it is clear that in terms of construction costs, prefab has the potential to be scaled to an entire industry.
The prefab industry is projected to grow to ₹1,904.8 billion by 2028 and is preparing the conditions for a revolution in the way we build in India. There are still prevailing market challenges to overcome, yet given prefab's fit with sustainability, the quick acceleration of urbanisation, and its other myriad functions in driving technologies, it is likely not just a hopeful alternative but the only path forward in the market for Indian real estate.
The writer is chairman of Goel Ganga Developments – Annuj Goel Group
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
12 minutes ago
- Economic Times
Eris Lifesciences eyes ‘good' share in semaglutide generics, says COO
Mr. Krishnakumar Vaidyanathan, Executive Director & Chief Operating Officer Eris Lifesciences looks to leverage its experience in integrated diabetes portfolio to take a lead among the first wave of generic semaglutide anti-diabetic and weight-loss drugs to hit the market early next year, a top official said. The company is looking at a 'good' share of the market, Krishnakumar Vaidyanathan, executive director and chief operating officer of Eris Lifesciences, told ET in an interaction. Semaglutide is the active ingredient in Novo Nordisk's blockbuster drugs Wegovy and Ozempic. Its patent in India will expire in March 2026. 'We are gearing up to be among the first to enter the market post loss of exclusivity,' Vaidyanathan said. 'We expect the overall market for GLP-1 at the end of the first 12 months (after the loss of exclusivity) to be at least 10 million units… And we expect to get a good share of the market.' Semaglutide is a glucagon-like peptide-1 (GLP-1) receptor agonist. Eris Lifesciences' existing diabetes portfolio includes orals, insulin and GLP-1 in the form of liraglutide. Its network of field representatives, patient connect and service platform in this space gives the firm an advantage over others, Vaidyanathan said. 'We do this day in and day out because of insulin. That gives us the confidence that we'll be able to step this up for GLP-1 as well.'Globally, the GLP-1 market is dominated by Eli Lilly and Novo Nordisk, which are also the two biggest insulin companies in the world. 'Being successful and big in the insulin market provides a huge tailwind when it comes to selling GLPs,' Vaidyanathan said. 'We have combined service with technology and product to create a winning combination in insulin and GLP therapy entry is not any different, which also requires a lot of patient education over and above the service on using the pens,' he said. 'We have an integrated diabetes portfolio because we currently sell GLP-1 in the form of liraglutide.' Dr Reddy's Labs, Sun Pharmaceutical Industries, Cipla, Mankind Pharma, Torrent Pharmaceuticals, and Zydus Lifesciences are also among Indian drugmakers readying to launch generic semaglutide next year. Eris Lifesciences launched liraglutide, a once-a-week GLP-1 product, last September. 'We have taken very good market shares in all the other LOE (loss of exclusivity) opportunities that we have seen in diabetes,' Vaidyanathan said. 'We have taken market ranks of 1 to 5 in each one without exception – vildagliptin, sitagliptin, linagliptin, dapagliflozin and empagliflozin. That gives us the confidence that we should be getting a fair share of the market.' Vishal Manchanda, pharma analyst at brokerage Systematix Group, said its full portfolio of anti-diabetes drugs to offer to diabetologist, spanning all oral and injectable options, should give Eris Lifesciences 'a strong positioning in a market where the large pharma majors like Sun, Lupin, Dr Reddy's, Cipla, Mankind and Zydus come in with their dominant brand presence.'
Hans India
14 minutes ago
- Hans India
Vedanta continues winning street confidence: Brokerages forecast strong earnings ahead
New Delhi: Major global and Indian brokerages remain optimistic on Vedanta Ltd's performance for FY26, citing stronger LME pricing trends, cost discipline, deleveraging, and a resilient aluminium business among the key growth drivers. These firms have also taken note of the several growth projects scheduled for commissioning or completion in the next few quarters. JP Morgan noted that Vedanta's first quarter consolidated EBITDA was largely in line with estimates, with key segments such as aluminium, oil and gas, and power faring better than its expectations, leading to an overall segmental EBITDA beat. On the earnings trajectory for the current and next fiscal, the firm expects various ongoing initiatives at Vedanta to aid growth. "Vedanta's capacity expansion journey in the aluminium business as well as vertical integration should bring cost advantages. LME prices have also bottomed out and should continue to move higher into FY26-27, likely aiding earnings growth." Echoing similar views on LME prices and its potential benefit, Citi Research cited that Vedanta's parent (Vedanta Resources) leverage is at comfortable levels. It listed potential upside in medium-term aluminium LME prices, lower cost, and the demerger as another positive for Vedanta, while adding that aluminium globally has a limited supply growth. Mumbai-based Nuvama Institutional Equities expects Vedanta to deliver quarter-on-quarter EBITDA growth in Q2. "Q2FY26 EBITDA is likely to increase 10 per cent-plus quarter-on-quarter on the back of higher prices and lower aluminium cost of production. Major aluminium projects are likely to be commissioned in Q2FY26. We reckon net debt/EBITDA ex-Hindustan Zinc shall fall to 1.7x by FY26-end, compared to 2.7x in FY25. Demerger of the business is likely to be concluded in Q4FY26," the firm said in its report. The brokerage expects Vedanta's all major projects except coal blocks to be likely commissioned in the current fiscal, providing volume growth and cost reduction visibility for the company. UK-based Investec stated in its post-earnings report that Vedanta is a key beneficiary of depreciation in the Indian Rupee. Other near-term positives listed by the firm include declining alumina prices and the company offering attractive yields. The firm has retained its buy recommendation on Vedanta. Research firms like Kotak Institutional Equities and IIFL have cited factors like cost efficiencies and deleveraging at both Vedanta Ltd and its parent Vedanta Resources as beneficial factors. Vedanta's adjusted profit after tax jumped 13 per cent year-on-year to Rs 5,000 crore. The company clocked its highest-ever first-quarter EBITDA of Rs 10,746 crore, which was up 5 per cent year-on-year.
The Hindu
14 minutes ago
- The Hindu
The lessons IT companies, employees, HEIs and students need to learn from the recent wave of job cuts
The IT sector has been hit by big job cuts across the world, India included. For instance, the Tata Consultancy Services (TCS) has announced plans to lay off 12,000 employees. The news sent shock waves across all the sections of the country, ringing warning bells on the shape of things to come. This article makes an analysis of the root causes of these job cuts and the lessons they hold for IT companies, employees, students and higher education institutions so they are prepared to address the challenges that lie ahead. It also offers suggestions to avoid such a situation in future. Massive layoffs by IT MNCs in the last two years In the last two years, there have been a large number of layoffs across the global technology sector, with the same trend continuing into 2025. In the first half of 2025 alone, over one lakh jobs were reported to have been eliminated, which exceeds the corresponding numbers in both 2023 and 2024. Intel has announced plans for over 25,000 job cuts in 2025, constituting about 25% of its total workforce, which comes after the wave of 15,000 layoffs in 2024. After declaring a record profit in the quarter ending March 2025, Microsoft announced its plans to cut about 9,000 jobs, about 4% of its global work force, after cutting 1% of its headcount in January 2025 based on performance. Other large MNCs that joined this league include Amazon, Google, and Meta. Situation in India TCS, a part of the Tata Group known for its employee-friendly HR policies, reporting job cuts has come as a shocker signalling a 'significant reset' in the IT industry. The top five Indian IT companies together added only 4,787 employees in the first quarter of 2025-26, a sharp decline from previous years, with some of them even reporting net reductions in their workforce during this period. Besides, there have been reported delays in onboarding of new employees by large companies. Nasscom, the apex industry body of the IT sector in India, has cautioned on more workforce rationalisation, leading to job cuts in the coming months. The Indian IT services industry employed over 54 lakh people in 2024 with over $280 billion revenues during 2024-25. It has traditionally offered the most sought-after career path for India's legions of engineering graduates. The drastic reduction in fresher recruitments coupled with the job losses anticipated in the next one year amounting to over a lakh people is likely to have a significant ripple effect on India's economy. Layoff trends in the last three years An analysis of the layoffs in the last few years highlights an evolving trend in the nature of tech job cuts globally. Large job cuts during 2022-23 were attributed to the mid-course corrections for post-pandemic over hiring, whereas the workforce reductions in 2025 are primarily driven by the imperative to restructure and refocus on building deep skills in contemporary technologies such as AI. This indicates that the current wave of layoffs is not simply a cyclical response to the economic downturns, but a proactive, long-term strategic move to re-engineer the workforce and the business model, driven by the digital transformation. The traditional bench system, which allowed companies to maintain a pool of readily available employees, is becoming unsustainable, as companies prioritize ready allocation of resources on billable projects, leading to layoffs of non-deployable talent. Profiles of employees affected and implications In the past, job cuts were influenced by sub-par performance of individual employees, whereas the recent wave of layoffs has significantly impacted specific segments of the IT workforce. While the younger and less experienced employees have the relevant skills and are often able to be more easily placed on projects, senior resources face distinct challenges. So, the people most affected by the job cuts are middle-level executives whose roles are deemed redundant due to reasons such as automation, non-deployability on billable projects, skill mismatch, cost considerations and structural changes by way of reduction of layers in the organisation. This creates a paradox wherein years of accumulated experience, traditionally considered to be a valuable asset, becomes a weakness due to non-alignment with evolving project demands. This trend poses a significant challenge for a large segment of the established IT workforce, signalling a shift in the traditional career progression model, where career mobility and growth solely depend on skill relevance on a continuous basis rather than tenure. Experienced professionals face the challenge of upgrading their skills quickly or seek opportunities in other industries or geographies. In some companies, entry-level employees, including trainees who did not meet the new, tougher assessment norms were affected. In some cases, the job roles cut relate to technical support functions due to automation. Non-customer-facing and administrative non-revenue generating roles have been affected. How companies have been affected While the job cuts will result in short-term gains to the companies in terms of cost savings and improved operational efficiencies, they dent the image and result in loss of goodwill built over time. They will affect the ability of the companies to attract good talent in future. The departure of experienced employees will result in loss of valuable insights and institutional knowledge essential for fostering creativity and innovation. These pervasive psychological impacts on both the laid-off and surviving employees reveal significant hidden costs, which may be termed the 'invisible cost' of layoffs. Impact on morale The recent layoff wave has caused immense financial hardship and damaged the morale of the affected employees who have a lot of family obligations. Unlike in the West, the affected employees in India do not have access to social security benefits nor adequate job opportunities, thereby making the situation more stressful. The retained employees will face enormous stress due to fears of job insecurity and possibility of additional workload due to reduced staff, which may also lead to burnout and poor mental health. Lessons for IT companies Historically, Indian IT firms competed in the global market, by leveraging their large, cost-effective workforce, wherein the growth was driven by headcount additions and utilization rates. Over the last decade (2014-2024), the top four Indian IT players collectively saw a 187% increase in revenue, followed by 206% increase in employee cost, which as a percentage of revenue has increased from 48% in 2014 to 57% in 2024, implying that manpower productivity has been relatively stagnant. This model is susceptible to global macroeconomic uncertainties, with the clients pushing for significant price reductions (20-30%) and cutting down on discretionary IT spending, impacting revenue growth. A fundamental shift in the IT services business model seems to be imminent by decoupling headcount growth from corresponding revenue contributions. The new driver of the future growth of the industry will be increased manpower productivity, enabled by automation and AI. While it is imperative for the IT companies to adopt multifaceted strategies to remain competitive and capitalize on the opportunities presented by AI and related technologies, companies that invested in strategic workforce planning and effective upskilling programs saw better alignment between talent supply and demand and faster redeployment of at-risk staff in emerging roles. Companies should proactively rotate and redeploy the resources across functions/projects so as to provide contemporary hands-on project skills to all employees. They may also consider flexi-resourcing models, which may include part-time, gig and consulting options, to the affected employees before resorting to job cuts. Impact of reskilling initiatives As per the recent annual reports of the large IT companies, over 90% of the employees went through upskilling programs in the last three years. In this context, concerns are expressed with regard to the level of effectiveness of the current practice of self-learning based upskilling programs and their impact on internal redeployment of the trained persons so that job cuts could have been avoided. Experts are of the opinion that unless the training programs are designed combining role-specific learning pathways with project-based hands-on skilling, they will not be effective. Companies that integrated classroom training with mentorship, project shadowing, career coaching, and internal job support enabled the employees to successfully transition to the new roles rather than face redundancy. Industry analysts also point out the need for more effective and universally adopted reskilling frameworks tailored to the profiles of individual employees, leveraging the power of AI. HEIs should focus on skills The industry's pivot from volume-based to value-based services and the explicit demand for niche, high-value AI and data analysis skills suggest the imperative to focus on skills, as the traditional academic degrees alone are no longer sufficient for career success. This is all the more important as the industry expects fresh graduates to be 'ready-to-deploy' resources and the traditional traditional structured training to freshers has been dispensed with. In view of the large shortage of industry experienced teachers, Higher Educational Institutions can leverage the availability of displaced industry professionals to engage them as Professors of Practice to impart students with the industry-ready skills. Lessons for students, employees In an environment of increased job insecurity, employees need to take ownership of their careers, which includes actively seeking internal mobility opportunities, exploring new roles within the company, and being prepared for new role transition and relocation if necessary. The concept of lifelong learning has transitioned from a desirable attribute to an absolute necessity to stay employed. Continuous upskilling and reskilling in contemporary technologies is now a 'must' and is no longer an option. Micro-credentials, which are compact, skill-focused courses, are emerging as a vital bridge between academia and industry. A recent study reveals that 93% of Indian employers have hired candidates with micro-credentials and found them to be more job-ready, significantly reducing ramp-up time for new hires. Role of industry associations and government Addressing the current challenges and preventing similar situations in the future requires a collaborative and multi-pronged approach, involving industry associations, academia and the Government of India. Industry associations like Nasscom can play a crucial role in tracking industry trends globally and provide foresight so as to enable the companies to put together strategic resourcing and reskilling plans. The government may collaborate with industry and academia for launching nationwide reskilling drives, especially targeting mid-career professionals and fresh graduates. The Ministry of Education and Ministry of Information Technology may collaborate with industry and HEIs to offer teacher training programs for displaced people interested in teaching so that they can transition smoothly into their second careers. Way ahead The Indian IT industry is going through a massive reset due to the unprecedented disruption driven by digital transformation, which is bound to cause a lot of stress all around. The path forward requires concerted and co-ordinated efforts from the industry and academia, duly supported by the government, so as to navigate the current turbulence deftly, mitigate the adverse impacts of workforce transformation, and position themselves for sustainable growth in the challenging future ahead. (Prof O. R. S. Rao is the Chancellor of the ICFAI University, Sikkim. Views are personal)
