`Construction Chemicals` is a generic name assigned to describe a wide range of chemicals that are used in pre and post-construction stages. Construction chemicals are used as an additive to concrete/mortar or as an application on masonry surfaces. These chemicals modify and enhance the properties of concrete in fresh and hardened state. A large variety of formulations and chemistries are used for diverse applications during both pre and post-construction stages in order to impart special properties to concrete structures. For the sake of convenience, construction 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.
The Indian construction chemical industry, termed as a `sunrise industry`, is already showing colours but is yet to blossom fully. The construction chemical industry in India is growing at a rapid pace. Easy adaptability 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. Further, in case of several projects funded by multilateral agencies like the ADB and World Bank, the use of construction chemicals is mandatory. However, the practice of employing unskilled workers in construction activity is still hampering the growth of the sector, as construction chemicals are sensitive products and its use requires basic technical expertise.
The size of the industry is relatively small with an annual turnover of around Rs. 300 crore. There are far too many players in the sector with the unorganized sector contributing substantially.
The market for construction chemicals can be divided into buildings and infrastructure projects like roads, bridges and dams. In case of buildings there is new construction as well as renovation and rehabilitation of old buildings. This sector is mostly catered by the unorganized sector. Similarly, in case of infrastructure projects too there is repair and renovation of existing structures Challenges facing the industry are price sensitive markets cheap substitutes. The user awareness in the country is fairly low at present and the unskilled laborers are again a major restraint to the growth of the industry. But the upside of the story is that the demand for such products is typically linked up to new construction activities taking place and this is expected to drive the market in future.
If you handle the construction chemicals you must read this.