Market Watch- India’s construction chemical Industry

India’s construction chemical market is still in its developing stage with huge potential in real-estate sector. In recent past, usage of construction chemical has increased, as the construction industry has grown on sustainable basis. Huge investments are taking place in the country’s infrastructure market giving push to the construction market, leads to rapidly increase in demand of construction chemical products. The three major categories in which construction chemical market finds application include infrastructural, industrial or commercial, and residential sectors. Of these, infrastructural sector is anticipated to continue its dominance in the upcoming years.

Construction chemical market in India has registered a constant growth since past few years and it has a huge potential in realty sector especially across tier-2 and tier-3 cities. An increase in government’s focus on vigorous development in infra sector has triggered the growth of construction chemical market. The Indian construction chemicals market is believed to be majorly dominated by companies such as BASF India limited, Sika India private limited, Fosroc Chemicals India private limited, and Pidilite Industries limited. Other companies are also anticipated to expand vigorously in India’s construction chemical market.

Construction chemical market is segmented into concrete admixture, waterproofing compound, flooring compound, repair and rehabilitation, and others. Of these, concrete admixture has accounted for the highest revenue share, following by water proofing compound and others. Concrete admixture consumption is directly linked to consumption of cement. The admixture business mainly target customers from the ready mix, precast, underground construction, real-estate developers and cement producing companies. The admixture demand is always reported to be highest in those sectors. Also, upsurge in demand of waterproofing chemicals has been recorded. The waterproofing industry in India has undergone a sea change in the past decade. Several players entered the market with both imported and indigenous technologies. Water proofing is mostly applicable to basement buildings, water tanks, bathrooms, swimming pools and external walls. While the demand for flooring compound comes from manufacturing sector and organized real estate to make the flooring hard and dust proof especially in area like business parks, malls, theatres and club houses. Concrete maintenance and repair is a relatively young and fast growing field with dynamic advancements of knowledge and technology. So, majority of demand for repair and rehabilitation chemicals is generated from aging infrastructure or traditional monumental buildings, which require frequent maintenance.

In recent years the demand for luxury housing projects is growing exponentially also led to surge in sales for construction chemicals. During the construction of luxury homes, quality is given utmost importance. These chemical are specialty products, added ‘pre’ or ‘post’ construction stages, to give special properties to the concrete structure, thus, providing additional stability and protection to new structures. The major factors that are driving the market are the increase in foreign investment, government regulations, urbanization and rise in housing demand as well as growing preference for ready-mix concrete. With global construction and manufacturing players entering the market, the awareness and the demand for internationally proven products and solutions are set to increase.

Latest market trends suggest that Concrete admixture will continue to dominate the construction chemical market in India in the coming years as concrete and cement production are expected to rise in demand. Due to environmental concern, a ban on unauthorized sand mining will increase the demand for concrete admixture as they will be required to mix with alternative for sand to produce same level of concrete stability. Water proofing chemicals is set to accelerate its growth as realty sector flourishing in India due to rise in malls, skyscrapers and other housing projects. Water proofing chemical demand will also be increased as more underground rail and road network and tunnels are likely to get developed in India. Similarly demand for repair and rehabilitation, and flooring chemicals are expected to rise as government’s plan of investing heavily on infrastructure is further anticipated to boost the demand for construction chemicals.