Wednesday, September 20, 2017

FEATURE: WATERPROOFING

Construction chemical industry to see a positive upswing

 

India’s infrastructure programme will translate into tremendous growth for the country’s construction chemical industry in the coming days, says SAMIR SURLAKER, PRESIDENT, CONSTRUCTION CHEMICAL MANUFACTURERS ASSOCIATION in his response to CONSTRUCTION OPPORTUNITIES queries.

 

What are the key policy changes you expect or anticipate pre-budget which could favor the construction chemicals industry?

 

Considering the current scenario and the recognition our industry is gaining, key policy changes with respect to the construction chemicals industry in the pre-budget quarter is not anticipated. This is also an excellent motivation for us to work toward growing the industry positively and increasing our recognition as a key partner in the construction industry.

 

Do you expect any major reforms soon which could bring cheer to the industry?

 

The wheels are in motion to interest our government in accepting construction chemicals as a recognised industry segment and back us with incentives and rationalisation of government taxes, duties and levies. Tax breaks in VAT for the construction chemicals industry would be a big boost for us, since India is still a cost sensitive market for construction chemicals. Getting materials to the end users at lower cost with a lesser burden on manufacturers will boost the growth of the industry as a whole. It would also help boost performance and quality in construction. In this regard, we plan to communicate the views of construction chemicals manufacturers and end users to central and state governments by taking help of FICCI, CII etc.

 

In terms of the ease of doing business how do you expect 2014 to pan out?

 

As per recent studies, the market size of construction chemicals industry is roughly pegged at Rs. 2000 crore and it has a potential to grow its size to Rs 5000 crore over the next few years if we promote ourselves professionally and increase the level of awareness within the construction industry. The construction industry should be convinced that usage of construction chemicals is a benefit and not undue cost. For the past five years the growth rate for the industry is between 20-25 per cent. The projected growth rate for this sector could be a CAGR of over 20 per cent, from 2011 -2014. The growth was affected due to the recessionary slump but now the trend is positive.

All old structures when due for repairs will have to use construction chemicals. Construction chemicals engulf a large range of products for every industry in India. With growing infrastructure, construction chemicals are used in concrete and this would mean the usage would be tremendous in roads, irrigation projects, power sector, railways etc. The field of waterproofing, flooring, industrial construction too is seeing a positive upswing. Therefore as the rehabilitation and construction growth accelerates, the demand for construction chemicals will go up augmenting sales and turnover.




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