Housing and infrastructure push to drive the growth of the construction chemicals market in India

 



In the Union Budget, the Indian government has announced increased spending on housing and infrastructure-related projects. For the Pradhan Mantri Awas Yojana (PMAY), for instance, the government has increased the allocation by 66% to INR 790 billion. The growing investment will not only increase the supply of affordable housing in the country but will also drive the growth of the construction chemicals market from the short to medium-term perspective.

Along with the housing sector, the Indian government has also announced higher spending on infrastructure development. For instance, the government has increased the allocation by 14% to the National Highways Authority of India. A total of INR 1.6 trillion has been allocated for the development of roadways and highways. Furthermore, the government also announced a record INR 2.4 trillion for the Ministry of Railways. The growing spending on infrastructure projects will again support the construction chemicals industry in India over the next 12 months.

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With the construction chemicals market projected to record strong growth over the next three to four years, on the back of growing housing and infrastructure development, industrial giants are also expanding their footprint in the segment.

·         In January 2023, JK Cement Paints & Coatings Limited, the subsidiary of JK Cement, announced that the firm had acquired a 60% stake in Acro Paints Limited. Notably, Acro Paints Limited is involved in the paint manufacturing and construction chemicals business, offering a range of waterproofing and other products. The transaction valued at INR 1.53 billion will enable JK Cement to have a commercial presence in the paint and construction chemicals business segment.

Other firms in the segment are also expanding their capacity to capitalize on the high-growth potential of the construction chemicals market in India over the next five years. Berger Paints, for instance, has announced an investment of INR 10.15 billion in Uttar Pradesh, where the firm plans to develop two new facilities for manufacturing construction chemicals.  The firm has already acquired 30 acres of land for one of the manufacturing facilities. In addition to this, the firm also has two more plants in West Bengal.

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Grasim, an Aditya Birla Group firm, is also entering the space and has announced an investment of approximately INR 10 billion. In 2021, JSW Cement also entered the construction chemicals market. The marked its entry into the category by launching a unique green product range in India. With the exponential growth seen in the category, the firm is targeting 10% of its total revenue from the construction chemicals market over the next two to three years.

Overall, the outlook for the construction chemicals market remains strong from the short to medium-term perspective. With the growing spending from the Indian government on the affordable housing segment and infrastructure construction projects, the demand for construction chemicals will remain robust. Consequently, ConsTrack360 expects more of these firms to increase their investment in the category over the next few quarters. Moreover, ConsTrack360 also expects more players to enter into the Indian construction chemicals industry from the short to medium-term perspective, thereby also driving the competitive landscape in the segment.

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In the global market as well, the recovery in the overall construction market is expected to drive the demand for construction chemicals industry from the short to medium-term perspective.

 europe construction chemical market report

Global construction chemical market research

asia pacific construction chemical market research

US Construction chemical market size


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