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16|Feature Construction Chemicals

Construction chemicals industry reveals expansion and growth

Projects Info | 22 - 28 November | 2010

which provides market dynam- ics, trends, and viable growth strategies states that the key end user of construction chemicals is the construction industry, which includes infrastructure, industries, as well as commer- cial and residential buildings. In this research, Frost & Sullivan’s expert analysts thoroughly examine the following markets: It says the Indian construc- tion chemical market is highly competitive. There are a large number of global construc- tion companies who have their local manufacturing operations in India.The government sup- port for infrastructure plays an important role as growth in infrastructure directly drives the demand for construction lymer based, inorganic based, and epoxies.

The construction indus-

The Indian construction chemical market is highly competitive and with a large number of global construction companies making a foray into manufacturing operations in India. The industry is becoming more interesting and exciting showing an exponential growth. The size of the construction chemical industry in India is approximately slated at about Rs 1,600 crore. Projects Info explores further the various factors that surround and affect the growing industry.

onstruction chemicals comprise of a number of different products such as cement admixture, cold- applied products, hot-applied products, membranes, acrylic, epoxy, resin, and adhesives and sealants. Today reports indicate that organised players control about 70 per cent of the mar- ket share. Reports also indicate that the market for construc- tion chemicals is likely to grow at the rate of around 20 per cent annually in the next few years. Government support for infra- structure plays an important role as growth in infrastructure directly drives the demand for construction `Construction Chemicals` constitue a wide range of chemicals that are


used in pre and post-con- struction stages. Construction chemicals are used as an addi- tive to concrete/mortar or as an application on masonry sur- faces. These chemicals modify and enhance the properties of concrete in fresh and hard- ened state. A large variety of formulations and chemistries are used for diverse applica- tions during both pre and post- construction stages in order to impart special properties to concrete structures. For the sake of convenience, construc- tion chemical market can be segregated into, Admixtures, Flooring Compounds, Repair & Rehab and other products. (Examples are Grouts, Adhesive, and Substrate support, Water

Proofing Compounds etc.) The Indian construction chemical industry, termed as a `sunrise industry`, is growing at a rapid pace. The use and access to foreign technology and the entry of foreign companies in the construction sector have helped to change the mindset of the people that has eventually resulted in quicker growth of the construction chemicals sector. Today, several projects funded by multilateral agencies like the ADB and World Bank have made the use of good quality construction chemicals manda- tory. However, the practice of employing unskilled workers in construction activity is still hampering the growth of the sector, as construction chemi- cals are sensitive products and its use requires basic technical expertise. The size of the industry is

relatively small with far too many players in the sector with the unorganized sector contrib- uting substantially.The market for construction chemicals is typically divided into buildings and infrastructure projects like roads, bridges and dams. In case of buildings there is new con- struction as well as renovation and rehabilitation of old build- ings. The unorganised sector mostly caters to this segment. Similarly, in case of infrastruc- ture projects too there is repair and renovation of existing struc- tures. There are several challeng- es facing the industry. Price sen- sitive markets and cheap substi- tutes quite often rule the roost. The end user awareness in the country is low and the unskilled labourers are yet another stum- bling block to the growth of the industry. The positive side of the story is the demand for such products is typically linked up

to new construction activities - to the whooping constructiont industry in the country which is phenomenally growing , slated at at Rs 1000,000 crore and this is expected to drive the market in future.

The term ‘construction

chemicals’ covers a wide range of materials. It is commonly used to describe various products such as admixtures, waterproof- ing compounds, and flooring compounds among others. The construction chemicals industry in India is still in a nascent state with the per capita consump- tion of construction chemicals being low in comparison to

Some key players:

 Fosroc India  Sika India  BASF Construction Chemicals India  Pidilite  Asian Paints  Star Coatings & Membranes  M.J. Construction Chemicals  JBA Concrete Solutions  STP  CERACHEM  CICO Technolgies  Rossari Biotech  Chembond  Chowgule Koster  Choksi Chemicals  Dow Chemicals  Rheoplast Technology

countries from Europe, North America, and even Southeast Asia. The construction chemi- cals market has been delineated into various segments to quan- tify it as waterproofing, cement admixtures, repair and rehab chemicals, flooring compounds and so on. This Frost & Sullivan

research service titled Indian Construction Chemicals Market

for construction, infrastruc- tural work, repair, and mainte- nance. The Indian consumer is realizing that while the cost of construction chemicals is only 2 percent of the overall con- struction cost, the benefits are manifold. Marketing needs to be effective and product innova- tion also requires international standards which are keys to suc- cess in the Indian market, say

try indicates an approximate 15-20 percent year on year growth mainly on the strength of increased manufacturing activities, industrial growth, and heightened investments - espe- cially by the government - in infrastructure and real estate. Post recession, the real estate is showing again some signs of growth. Copupled to it is rise in disposable income in India whihc is accelerating interests in real estate projcts thus giving a fillip to the construction chem- icals market. PLus, awareness among cutomers and build- ing contractors has helped to realize the importance of using these products for better-qual- ity constructions. Expanding construction businesses in the largely untapped rural areas are also expected to provide a huge thrust to the construction chem- icals market. Moreover, the gov- ernment’s decision to give 100 percent foreign direct invest- ments (FDIs) in the real estate business has boosted construc- tion activities throughout India. This revival, along with foreign investors’ popular perception of India as a high-growth market, has given a shot in the arm for construction chemicals compa- nies.

Despite the inflow of funds,

the market is restrained by low end-user awareness. Consumers are only gradually beginning to understand the importance of using construction chemicals

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