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:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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
To Know More Information on the
publication:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
