“As the construction industry in India on a free–run with the increasing activities; the construction chemicals industry is gradually making its space. Currently the size of construction chemicals market is Rs. 1700 crores and expected to reach Rs. 10000 crore mark in the next 5-8 years”, writes Subhajit Roy.
Generally, the term ‘construction chemicals’ is assigned to describe the chemical products that are used for pre and post construction of buildings. The products include admixtures, flooring compounds, waterproofing compounds, and repair & rehab chemicals. Construction chemicals are used to strengthening, enhancing and modifying the properties of concrete.
The construction chemicals industry in India is still in a nascent stage as the per capita consumption is far below than that of the developed countries. As the construction industry in India on a free–run with the increasing activities; the construction chemicals industry is gradually making its space. 100% FDI in the real estate sector has given a major boost to the fast growing construction industry and would play a significant role in the growth of construction chemicals industry.
According to Gangadharan Manari, Managing Director, Cera–Chem Pvt. Ltd, “The construction chemical industry is identified as a sunrise industry in India. This industry grows at a much higher percentage than the construction industry itself. There are more than 100 companies manufacturing construction chemicals in India”.
Currently the market size of construction chemicals is Rs. 1700 Cr and expected to reach Rs. 10000 Cr marks in the next 5–8 years. “Despite the recession construction chemical industry’s growth was about 15% with turnover of about Rs. 1700 Cr in 2009–10 and with Governments thrust on Infrastructure, Roads, Bridges etc. the Industry is expected to reach to Rs. 10000 Cr in the next 5–8 years”, said Ankur Choksey, MD, Choksey Chemicals.
The growth of this segment is directly proportional to the development in construction activities. Hence, infrastructure, industrial and real estate developments around the country are the major growth drivers for construction chemicals industry.
MA Waheed, Chairman, Perma Construction Aids says, “As there is continuous need for food so also there always is need for better shelter and infrastructure. This keeps putting pressure on the construction industry. Construction industry looks for solutions to these growing problems in construction chemicals. Construction chemicals manufacturers keep discovering and providing those solutions to the construction industry regularly. Growth of this segment is tied up with the growth of construction industry itself.
As the country experiences infra boom and government spends more money on infrastructural development, the demand for construction chemicals bound to grow. However, lack of awareness on the usages of new chemical and construction aids is one of the major constraints in the growth of this segment.
Today, more than 80% of the contractors and builders lack awareness of the advantages of this kind of products and its usages.
“Since construction chemicals is niche market every demand needs to be created by way of awareness not just amongst the consumers but also among the architects, consultants, contractors, Govt. bodies etc.”, Mr. Choksey adds.
Secondly, as the industry is not much organized and still in its infancy; players from unorganized sector create roadblocks. According to Mr. Choksey, “The unorganized sector comprising of local manufacturers at regional levels continue to pose a threat with cheaper materials with least or no quality adherence”.