Waterproofing membrane market in India witnessed a double digit CAGR growth during FY’14-FY’19 despite downfall in construction market due to demonetization and GST implementations by the current government. Rising supply of housing units and commercial office space in the market has provided strong growth to waterproofing membrane market. Adoption of modern building construction methods, green building materials & increase in waterproofing product awareness has surged the demand for modern waterproofing products in construction market of India. It is expected that rising infrastructure & construction activities in the country and increasing shift from traditional to modern waterproofing systems to avoid leakage, seepage & dampness issues in the construction projects will boost the demand for waterproofing products in next 5 years.
In conversation with Mr. Sukanta Mallik, Vice President, CICO Technologies Limited, we attempted to seek his opinion and understand his side of story to ‘Waterproofing Membrane Industry in India’.
Here are some excerpts of the interview:
How over the years waterproofing membrane market of India has evolved?
In India, major shift from traditional waterproofing techniques to modern waterproofing techniques have been observed. Also, growing demand for high-end and better quality products for various real estate and infrastructure projects. Over the years expenditure for real estate projects has increased which has positively impacted waterproofing market. In last five years during FY’14-19, construction chemical market has observed a CAGR of ~15% due to rising construction activities whereas waterproofing market has grown with double digit CAGR in Indian market.
Currently, which end user industry in India generates highest demand for waterproofing products?
Even though government funded infrastructure projects have the highest demand for construction chemicals such as admixture. For, waterproofing the highest demand in generated from Real Estate & Industrial sectors which includes building structures requiring waterproofing membrane products. Hospitality sector which includes hotels, restaurants, resorts & others have majorly created demand for high-end premium waterproofing products.
Which type of liquid applied membrane has high demand in Indian Market?
Currently, acrylic polymers are highly used in comparison to SBR polymers, whereas cementitious polymers are generally preferred in sunken portions, roof, and underground tanks & others. In the latest versions of liquid membranes such as Polyurethane & Polyurea which are technically advanced & premium priced in India.
How demand for Liquid Waterproofing Membrane has grown over time?
Application of sheet membranes in offset areas finds installation difficulties which leads to time consuming activities & also requires highly skilled waterproofing applicators. Whereas, liquid applied membranes are comparatively easy to apply & easy to mould in offset areas.
Also, in modern building having solar panels, central air cooling systems & cooling towers, water tanks, and other ancillary are installed on rooftops which make sheet membrane application difficult & time consuming whereas, LAM can be easily applied through rollers or sprays & either horizontal coating or vertical coating is comparatively easier. In current market scenario, preformed membrane & liquid membranes have ~50-50% market share in terms of manufacturer’s revenue.
How waterproofing products have performed in retail segment business in Indian market for last 5 years till FY’2019?
Retail segment of waterproofing provides huge opportunities for waterproofing companies, as only few players are majorly focusing in this segment. During last 5 years with increasing product awareness & small builders, house owners starting to pay attention towards waterproofing which was not the situation in earlier days. Growing awareness and entry of new players during FY’2014-19 such as Asian Paints, Burger Paints & others with strong retail networks in Indian market has increased waterproofing products sales for retail segment. Currently, retail sale or bazaar sale contributes around ~30-32% of market share, whereas project sales contributes ~68-70% market share in FY’19.
How government has played role in waterproofing membrane market of India?
Government has not played any direct role in promoting waterproofing products in India. Even though government initiative in usage of green building materials and other government projects. Similarly, government focus on construction & infrastructure activities, also schemes such as Housing for All by 2022, Smart Cities Projects and others have created demand for waterproofing products indirectly.
How the performance or demand for waterproofing has been seen in Tier 1, Tier 2 & Tier 3 cities of India?
As major infrastructure & construction activities are concentrated in Tier 1 cities which has seen waterproofing product penetration of ~50-55%, followed by Tier 2 & Tier 3 cities which have started to adopt waterproofing products in building construction.
However, in coming future major demand for waterproofing products will be observed in Tier 2 & Tier 3 cities of India with growing infrastructure & construction activities.
What is your recommendation for new entrants in waterproofing market of India?
Majorly focus on steady growth, product technology, quality manpower, product services & quality to build customer base with loyal clients for long term business, instead of getting into price wars and provide lower quality products which will not lead to long term growth in the Indian market.
“Demand for High-End & Better Quality Waterproofing Product along with Growing Waterproofing Awareness & Entry of New Players (Regional & Local) will lead to further growth in the India Waterproofing Membrane Market”
For feedback and queries, reach out to the Ken Research Team at ankur@kenresearch.com
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