The India construction chemical industry witnessed robust growth, with revenues reaching approximately INR ~ Cr in FY’20, boasting a notable CAGR of 8.5% during FY’15-FY’20. Concrete admixtures emerged as the frontrunners in the market, closely followed by waterproofing, tile adhesives, and other key players. Intriguingly, the organized sector claimed dominance in the Indian construction chemical landscape.
Factors Shaping the Construction Industry: Regulatory Norms and Pandemic Impact
New regulatory norms and mandatory certifications, such as the Green Building Code, alongside the adoption of Ready-Mix Concrete in Metro Rail Projects across 20+ cities, have propelled the usage of construction chemicals. However, the industry faced a severe setback due to the COVID-19 pandemic, causing a financial crunch and halting construction activities. Despite these challenges, the market is set for an upswing, driven by increased demand for urban housing, infrastructure investments, and government spending.
Construction Market Major Players: A Competitive Landscape
The competition structure in India’s Construction Chemicals industry is marked by fragmentation, hosting a myriad of companies offering diverse product portfolios. Key players include Fosroc, Sika, Pidilite, STP Berger, MYK Laticrete, MBCC (BASF), Bostik, Jotun, Thermax, Mapei, Asian Paints, and others.
Construction Market Size and Growth: An In-Depth Analysis
By Type of Construction Market (Organized and Unorganized):
- Organized players, with annual revenue exceeding INR 50Cr, dominate the market. Attributes such as high product quality, international certifications, and brand image favor organized players.
By Type of Construction Chemicals:
- Concrete admixtures take the lead, fueled by the burgeoning residential and commercial construction sector.
By Concrete Admixtures Market (Organized and Unorganized):
- The unorganized sector dominates, driven by the prevalence of small players catering to the demand for cost-effective products.
By Waterproofing Market (Organized and Unorganized):
- Organized players thrive, driven by a higher preference for quality waterproofing products.
By Tile Adhesives Market (Organized and Unorganized):
- Organized players command the market, reflecting a demand for superior-quality tile adhesives.
By Flooring Market (Organized and Unorganized):
- Organized players dominate, owing to the complexity of manufacturing and applying flooring products.
By Repair and Rehabilitation Chemicals Market (Organized and Unorganized):
- Organized players, including MBCC (BASF), Sika, and Fosroc, lead the market.
By Sealants Market (Organized and Unorganized):
- Similar demand from both organized and unorganized players, with silicon sealants holding the largest share.
By Grouting Chemicals Market (Organized and Unorganized):
- Organized players dominate, especially in the cementitious grouts segment.
By Coatings Market (Organized and Unorganized):
- The organized segment prevails, featuring major players like STP, Fosroc, and Sika.
Construction Market Future Outlook: Projections and Opportunities
The construction chemicals market in India is poised for growth, with an anticipated revenue increase to approximately INR ~ Cr by FY’25, reflecting a CAGR of ~10.0%. The organized sector is expected to further encroach upon the market share of the unorganized segment.
Final Thoughts: Empowering Decision Makers
For business heads and decision-makers, understanding the nuances of India’s Construction Chemicals Market is paramount. The journey involves grasping market dynamics, navigating regulatory landscapes, and identifying opportunities amidst challenges. As the industry charts its course towards recovery and growth, strategic decisions will play a pivotal role in shaping success stories.
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