Booming construction industry to boost growth in Indian construction chemicals marketsNovember 14th, 2007 - 8:07 am ICT by admin
New analysis from Frost and Sullivan (http://www.chemicals.frost.com), Indian Construction Chemicals Markets, finds that the market revenue was estimated to be Rs 10 billion in 2006 and is likely to reach Rs 40 billion by 2013.
“The Indian Government’s approval for allowing 100 percent FDI in the real estate sector has given a major boost to the already fast growing construction industry,” notes Frost and Sullivan Industry Analyst Dominic Britto. “Construction chemicals accounts for only 2 percent of overall construction costs, but the benefits are in multiples; rising awareness about such advantages coupled with the growth in the construction industry is set to drive the Indian market for construction chemicals.”
The construction industry is the key end user of construction chemicals that includes construction of infrastructure, industries, as well as commercial and residential buildings. Construction chemicals are also used for repair and maintenance of these structures and comprise around 11 per cent of the total demand. Rising awareness, changing lifestyles and, most importantly, the increasing spending power of end users will be the key drivers in the sustained expansion of the Indian construction chemicals market.
At present, the absence of quality standards for the manufacture as well as application of construction chemicals is a major challenge. This has the potential of leading to price wars at the cost of quality, thereby eroding margins to such an extent that new companies might be reluctant to enter this market. This is further likely to lead to highly unsatisfied end users getting substandard products and services and will have a major impact on the industry as a whole.
“To succeed in a situation where established quality standards are lacking, companies need to develop their own standards and build powerful brands that will not only promote awareness about the benefits of construction chemicals, but also set standards for the industry to follow,” advises Britto. “These companies can also take advantage of being first movers in the market.”
Indian Construction Chemicals Market is part of the Chemicals and Materials Growth Partnership Service programme. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. (ANI)
- Indian small and light commercial vehicles to log 18 percent growth - Jul 20, 2012
- 'Revised defence offsets policy will encourage Indian SME sector' - May 08, 2012
- Taiwanese, Chinese imports a threat for UPS makers - Feb 13, 2012
- Mobile number portability not much of a hit - Dec 04, 2011
- India formulating new air cargo promotion policy - Mar 14, 2012
- China sees threat from foreign surveillance products - Mar 28, 2012
- More global firms eye Indian construction equipment market - Nov 28, 2011
- Pranab asks banks to take belt tightening measures - Jan 06, 2012
- Ruling ends spectrum row for once and all: Experts - Feb 02, 2012
- Recall of retail FDI regressive, disappointing: India Inc (Roundup) - Dec 07, 2011
- Aluminium summit to explore investments, technology - Dec 05, 2011
- GVK BIO gets Frost & Sullivan best practices award - Nov 21, 2011
- Media, entertainment industry records 11 percent growth - Mar 21, 2011
- India's mobile phone users spoilt for choice - Jun 05, 2011
- Karnataka lags behind in attracting FDI: Assocham - Aug 28, 2012
Tags: annual growth rate, awareness, cagr, changing lifestyles, compound annual growth rate, construction activity, construction chemicals, construction industry, cost of quality, fdi, frost and sullivan, industry notes, infrastructure industries, nascent market, real estate sector, rs 40, spending power, www chemicals