This comprehensive analysis by Biltrax Construction Data delves into industrial construction trends in the South and Central Zone for FY 2023-24. Leveraging data from the BX-2 platform, the report highlights the manufacturing and warehousing segments of the sector. It explores significant trends and the leading players driving construction activities in these regions.
Introduction
India’s industrial landscape is characterized by its diverse regional contributions, with each zone offering unique strengths and driving factors. In this final segment of our ‘Zonal Analysis, Series: 2’, we explore the industrial development of the South and Central zones. The South Zone has made significant strides in high-tech manufacturing and logistics, with notable advancements in electronics and IT hardware, complemented by substantial investments and expansions. Concurrently, the Central Zone has shown considerable growth in manufacturing, particularly in the automotive and steel industries, alongside advancements in logistics infrastructure to support rising demand.
This analysis provides an extensive overview of the industrial trends in these zones during FY 2023-24. It further highlights key trends, investments, and the influence of regional policies on shaping the regions’ industrial trajectories.
Overview
During FY 2023-24, India’s South zone continued its legacy as a hub for IT and commercial infrastructure with Karnataka emerging as a major center for high-tech manufacturing. Significant investments led to new projects and expansions in electronics and IT hardware, especially in Bangalore and Mysore. The surge in e-commerce and retail drove the development of new logistics parks and distribution centers in Telangana and Andhra Pradesh, supported by tailored policies such as Tamil Nadu’s Industrial Policy 2023 and Karnataka’s Industrial Policy 2023-28.
In the Central zone, Madhya Pradesh and Chhattisgarh experienced notable industrial growth. Madhya Pradesh saw substantial investments in automotive and textile industries, leading to new plant establishments and expansions in Indore and Bhopal. Chhattisgarh focused on strengthening its industrial base with investments in steel and power sectors, including new steel plants and facility expansions. Both states advanced their warehousing and logistics infrastructure, addressing the growing demand from e-commerce and retail with the establishment of new logistics hubs and distribution centers. The Madhya Pradesh Industrial Policy 2023 and Chhattisgarh Industrial Policy 2023 played crucial roles in driving these developments by providing financial incentives and support for industrial growth.
Also Read: India’s Construction Industry in FY 2023-24: A Zone-Wise Analysis
Part A: South Zone
Construction Projects in the South Zone
In the last financial year, Biltrax Construction Data tracked nearly 1,024 industrial projects in the South Zone through its BX-2 platform. These projects cover more than 418 Million-SqFt, with an estimated investment cost of INR 296,646 Crore.
State-wise Construction Overview of the South Zone (Based on Project Value)
Of the total projects tracked on BX-2 in the South region during FY 2023-24, Karnataka leads in total project value. The state implemented 304 projects, spanning a total construction area of 167.94 Million-SqFt, valued at INR 111,796 Crore. This represents 37.69% of the total building project value in the South Zone. The state’s Industrial Policy 2023-28 has played a crucial role in this by offering targeted incentives, infrastructure development, and support for research & development. The Karnataka Global Investors Meet, held in early 2024, was a landmark event that showcased several large-scale manufacturing projects, securing a total investment commitment of approximately INR 3.5 Lakh-Crore (around USD 42 billion). Several large-scale manufacturing projects were unveiled, including advancements in the electronics, automotive, and consumer goods industries.
| Sr. No. | State | Project Nos. | Construction Area (Million-SqFt) | Project Value (INR-Crore) | % by Project Value |
| 1 | Karnataka | 304 | 167.94 | 111,796 | 37.69% |
| 2 | Tamil Nadu | 187 | 83.57 | 70,527 | 23.77% |
| 3 | Andhra Pradesh | 180 | 88.8 | 46,115 | 15.55% |
| 4 | Telangana | 236 | 72.05 | 43,249 | 14.58% |
| 5 | Kerala | 114 | 4.76 | 24,695 | 8.32% |
| 6 | Pondicherry | 3 | 1.06 | 264 | 0.09% |
| TOTAL | 1024 | 418.18 | 296,646 |
Meanwhile, Tamil Nadu ranked second in terms of project value, implementing 187 projects with a total estimated INR 70,527 Crore. The state’s emphasis on supporting a broad range of industries has led to a substantial number of projects and a high total project value. Tamil Nadu has developed dedicated industrial parks, logistics hubs, and technology centers during the said period. The state’s business-friendly policies, including regulatory reforms and streamlined processes, have created an attractive environment for investors.
Major Sub-segments
In FY 2023-24, the South region experienced significant developments across various industrial sub-segments, reflecting diverse and robust growth. BX-2 recorded 928 projects across major sub-segments of the manufacturing sector in this zone. These projects encompass a total area of 375.01 Million-SqFt with a total project value of INR 283,385 Crore. The steel sector led the region in terms of project value, accumulating nearly 14.05% of the total.
| Sr. No. | Sub-Segments | Project Nos. | Project Value (in INR-Cr) | % by Project Value |
| 1 | Steel | 34 | 39,822 | 14.05% |
| 2 | Electronics | 68 | 39,795 | 14.04% |
| 3 | Chemicals | 50 | 32,334 | 11.41% |
| 4 | Cement | 27 | 31,405 | 11.08% |
| 5 | Food Processing | 198 | 29,515 | 10.42% |
Karnataka emerged as the leading state in the steel sub-segment, with 16 projects totaling INR 34,064 Crore. By focusing on developing industrial parks and technology hubs, Karnataka has created an optimal environment for steel manufacturing. Its ongoing commitment to modernizing production facilities and expanding capacity has significantly boosted its competitiveness. Investments in advanced technologies, such as automation, AI-driven quality control systems, and energy-efficient production techniques, further contribute to the state’s pivotal role in the sector.
Key Stakeholders in the South Zone (Based on Project Value)
This section highlights the key stakeholders driving industrial construction activities in the South Zone during FY 2023-24. It focuses on major project owners, top contractors, and design engineering consultants leading significant developments across various sectors.
Major Project Owners
As of FY 2023-24, BX-2 monitored over 925 project owners in the South Zone. These are actively delivering more than 1024 industrial projects accounting for nearly INR 296,646 Crore. The top 10 project owners alone account for over 38% of the total project value. Key players include:
| Sr. No. | Company Name | Project Nos. | Construction Area (Million-SqFt) | Project Value (INR-Crore) | % by Project Value |
| 1 | Sembcorp Industries Limited | 1 | 2.5 | 25,366 | 8.55% |
| 2 | Agency of New & Renewable Energy Research & Technology (ANERT) | 1 | 2 | 24,000 | 8.09% |
| 3 | MSPL Limited | 1 | 2 | 14,383 | 4.85% |
| 4 | JSW Steel Limited | 2 | 5.74 | 12,555 | 4.23% |
| 5 | ACC Limited | 1 | 6.05 | 7,040 | 2.37% |
| 6 | International Battery Company India Private Limited (IBC) | 1 | 2 | 6,400 | 2.16% |
| 7 | Godi India Private Limited | 1 | 2 | 6,400 | 2.16% |
| 8 | Foxconn India Private Limited | 3 | 4.45 | 6,385 | 2.15% |
| 9 | OLA Electric Mobility Private Limited | 2 | 2.25 | 5,399 | 1.82% |
| 10 | Dalmia Cement (Bharat) Limited | 2 | 3.88 | 5,328 | 1.80% |
Top 5 General Turnkey/Civil Works Contractors
Among the 54 General turnkey/civil works companies monitored by BX-2 in the South zone, Larsen and Toubro Ltd leads, with projects worth INR 28,930 Crore. This represents nearly 34.64% of the total project value. The firm is actively developing a total of 6.48 Million-SqFt of the construction area. Minda Infrastructure LLP and Ahluwalia Contracts (India) Ltd follow in the second and third ranks, respectively. These firms are delivering projects worth INR 5,960 Crore and INR 5,600 Crore, respectively.
| Sr. No. | Company Name | Project Nos. | Construction Area (Million-SqFt) | Project Value (INR-Crore) | % by Project Value |
| 1 | Larsen and Toubro Limited | 3 | 6.48 | 28,930 | 34.64% |
| 2 | Minda Infrastructure LLP | 3 | 2.65 | 5,960 | 7.14% |
| 3 | Ahluwalia Contracts (India) Limited | 1 | 2 | 5,600 | 6.71% |
| 4 | Suroj Buildcon Private Limited | 1 | 2 | 5,600 | 6.71% |
| 5 | SRR Projects Private Limited | 1 | 2 | 5,600 | 6.71% |
Top 5 Design Engineering Consultants
Among 78 Design Engineering consultancy firms monitored by BX-2, MN Dastur & Company Pvt Ltd stands out with projects worth INR 14,383 Crore. They are delivering a significant project over 2 Million-SqFt, representing 20.47% of the total industrial projects in the South zone. Meanwhile, Jacobs CES Consulting Engineering Services India Pvt Ltd follow second in line. They manage projects covering 3.45 Million-SqFt with a total project cost of INR 6,052 Crore, representing 8.61% of the overall project value.
| Sr. No. | Company Name | Project Nos. | Construction Area (Million-SqFt) | Project Value (INR-Crore) | % by Project Value |
| 1 | MN Dastur & Company Private Limited | 1 | 2 | 14,383 | 20.47% |
| 2 | Jacobs CES Consulting Engineering Services India Private Limited | 3 | 3.45 | 6,052 | 8.61% |
| 3 | Tata Consulting Engineers Limited | 5 | 5.7 | 4,320 | 6.15% |
| 4 | SPB Projects & Consultancy Limited | 2 | 1.77 | 4,000 | 5.69% |
| 5 | Arnish Engineering | 1 | 0.6 | 3,712 | 5.28% |
Also Read: Navigating Building Construction Trends in India’s South Zone: FY 2023-24
Part B: Central Zone
Construction Projects in the Central Zone
In the last financial year, Biltrax Construction Data tracked 250 industrial projects in the Central Zone through its BX-2 platform. These projects cover nearly 82.32 Million-SqFt, with an estimated investment cost of INR 51,485 Crore.
State-wise Construction Overview of the Central Zone (Based on Project Value)
Of the total projects tracked on BX-2 in the Central region during FY 2023-24, Chhattisgarh leads in terms of total project value. The state implemented 184 projects, spanning a total construction area of 65.01 Million-SqFt, valued at INR 29,975 Crore. This represents almost 58.22% of the total project value in the Central Zone. Several factors contributed to this growth, including the state’s strategic emphasis on enhancing infrastructure. Chhattisgarh invested heavily in developing industrial parks, enhancing transport networks, and upgrading logistics facilities. These infrastructure developments have created a more conducive environment for industrial projects, encouraging both new investments and expansions. Additionally, the Chhattisgarh Industrial Expo 2024 played a pivotal role in showcasing the state’s industrial potential, attracting nearly INR 72,000 Crore worth of investments.
| Sr. No. | State | Project Nos. | Construction Area (Million-SqFt) | Project Value (INR-Crore) | % by Project Value |
| 1 | Chhattisgarh | 184 | 65.01 | 29,975 | 58.22% |
| 2 | Madhya Pradesh | 66 | 17.31 | 21,510 | 41.78% |
| TOTAL | 250 | 82.32 | 51,485 |
Major Sub-segments
In FY 2023-24, the Central region experienced significant developments across various industrial sub-segments, reflecting a diverse and robust growth. BX-2 recorded 242 projects across major sub-segments of the manufacturing sector in this zone. These projects encompass a total area of 81.87 Million-SqFt with a total project value of INR 51,418 Crore. The steel sector led the region in terms of project value, accumulating nearly 35.64% of the total. Chhattisgarh’s rich natural resources, particularly in iron ore and coal, have made it a key player in the steel and power industries. The rising demand for steel and power products, both domestically and internationally, has spurred investments in these sectors. Chhattisgarh’s focus on meeting this demand through new projects and expansions has contributed to the steel sector emerging as the dominant force in the central zone.
| Sr. No. | Sub-Segments | Project Nos. | Project Value(in INR-Cr) | % by Project Value |
| 1 | Steel | 29 | 18,324 | 35.64% |
| 2 | Metal | 76 | 10,603 | 20.62% |
| 3 | Cement | 13 | 10,352 | 20.13% |
| 4 | Chemicals | 21 | 6,533 | 12.71% |
Key Stakeholders in the Central Zone (Based on Project Value)
Major Project Owners
As of FY 2023-24, BX-2 monitored over 244 project owners in the Central Zone. These are actively delivering more than 250 industrial projects accounting for an estimated INR 51,485 Crore. The top 10 project owners alone account for nearly 61% of the total project value. Key players include:
| Sr. No. | Company Name | Project Nos. | Construction Area (Million-SqFt) | Project Value (INR-Crore) | % by Project Value |
| 1 | Nr Iron And Power Private Limited | 1 | 17.12 | 6,630 | 12.88% |
| 2 | Asian Paints Limited | 2 | 0.72 | 3,200 | 6.22% |
| 3 | JK Cement Limited | 1 | 0.38 | 2,300 | 4.47% |
| 4 | Springway Mining Private Limited | 1 | 2.3 | 2,300 | 4.47% |
| 5 | UltraTech Cement Limited | 2 | 4.19 | 2,150 | 4.18% |
| 6 | Rama Metal & Energy Private Limited | 2 | 2.6 | 2,033 | 3.95% |
| 7 | TACC Limited | 1 | 1.88 | 1,800 | 3.50% |
| 8 | Dalmia Cement (Bharat) Limited | 1 | 4.22 | 1,800 | 3.50% |
| 9 | Crest Steel & Power Private Limited | 1 | 0.96 | 1,684 | 3.27% |
| 10 | KJS Cement Private Limited | 1 | 0.08 | 1,600 | 3.11% |
Top 5 General Turnkey/Civil Works Contractors
Among the 11 General turnkey/civil works companies monitored by BX-2 in the Central zone, Hajee A.P. Bava Co. Constructions Pvt Ltd (Hapbco) leads, with a project worth INR 2,300 Crore. This represents nearly 57.98% of the total project value. Praj Industries Ltd and SRR Projects Pvt Ltd follow in the second and third ranks, respectively. These firms are delivering projects worth INR 404 Crore and INR 275 Crore, respectively.
| Sr. No. | Company Name | Project Nos. | Construction Area (Million-SqFt) | Project Value (INR-Crore) | % by Project Value |
| 1 | Hajee A.P. Bava Co. Constructions Private Limited (Hapbco) | 1 | 0.38 | 2,300 | 57.98% |
| 2 | Praj Industries Limited | 2 | 0.88 | 404 | 10.18% |
| 3 | SRR Projects Private Limited | 1 | 0.23 | 275 | 6.93% |
| 4 | Abhinav Infrabuild Private Limited (Sureka India) | 2 | 0.22 | 222 | 5.60% |
| 5 | Raj Process Equipment And Systems Private Limited | 1 | 0.55 | 200 | 5.04% |
Top 5 Design Engineering Consultants
Among 33 Design Engineering consultancy firms monitored by BX-2, EICS Technology Pvt Ltd stands out with projects worth INR 7,284 Crore. They are delivering projects over 18.83 Million-SqFt, representing 29.87% of the total industrial projects in the Central zone. Meanwhile, the Vaastu Group of Engineers follows second in line. They manage projects covering 3.66 Million-SqFt, at an estimated project cost of INR 3,178 Crore.
| Sr. No. | Company Name | Project Nos. | Construction Area (Million-SqFt) | Project Value (INR-Crore) | % by Project Value |
| 1 | EICS Technology Private Limited | 2 | 18.83 | 7,284 | 29.87% |
| 2 | Vaastu Group of Engineers | 6 | 3.66 | 3,178 | 13.03% |
| 3 | SecMec Consultants Private Limited | 1 | 0.38 | 2,300 | 9.43% |
| 4 | Mott MacDonald | 1 | 1.88 | 1,800 | 7.38% |
| 5 | Maa Gayatri Consultants Private Limited | 5 | 5.96 | 1,673 | 6.86% |
Also Read: Navigating Building Construction Trends in India’s Central Zone: FY 2023-24
In summary, zonal analytics play a pivotal role in deciphering these regional dynamics. Consequently, it offers insights that are essential for stakeholders to navigate the complex construction landscape. By leveraging data from Biltrax Construction Data, industry players gain access to detailed, real-time information on construction projects across India. Moreover, with Biltrax’s robust analytics and detailed reporting, stakeholders can effectively plan and execute their projects, ensuring they are aligned with regional demands and opportunities. This approach not only enhances efficiency but also drives sustainable growth in India’s dynamic construction sector.
With this final article, we conclude our ‘Zonal Analysis, Series: 2’. Thank you for following along with our in-depth analysis of each zone’s industrial trends and developments. Stay tuned for our upcoming series, where we will explore the construction trends in India’s roads & highways and water supply & distribution sector.
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