Indian construction chemical market size expected to expand significantly over the next five years
After the effects of the pandemic outbreak started to
subside, the Indian construction market has posted a strong growth recovery.
The trend has further continued in H1 2023 on the back of higher government
spending and housing construction activities. This growth in the broader construction market
has also aided the growth of other construction-related industries, including
construction chemical market. Firms in the segment, including those operating
in the decorative paints category have showcased positive performance in terms
of sales and volume growth in Q1 2023.
The positive performance during the quarter has been
largely driven by factors such as premium product offerings, distribution
expansion, and new launches. Furthermore, the ease in prices of raw materials
have also aided margin expansion for players in the decorative paints market in
India.
·
Asian
Paints, the leading firm in the Indian decorative paints market, reported a 44%
rise in Q1 2023 profits. The quarterly profit reached INR 12.58 billion
compared to INR 8.74 billion last year. Revenue from operations reached INR
87.87 billion compared to INR 78.92 billion in the same quarter last year. This
represents a growth of 11.3% during the period.
·
Kansai
Nerolac Paints, another player in the decorative paints market, also reported a
robust set of numbers in Q1 2023. The consolidated net profit for the firm
reached INR 960.24 million in Q1 2023 compared to 190.17 million in Q1 2022. This
represents a growth of 401.56% year over year.
·
Berger
Paints, on the other hand, reported a decline of 15.8% in its quarterly profit
during the period. The profits came in at INR 1.85 billion in Q1 2023 compared
to INR 2.2 billion in Q1 2022. While the profits were down, the revenue surged
11.7% during the quarter. The firm posted a revenue of INR 24.43 billion
compared to INR 21.87 billion in the last year.
In the coming future, volume growth for Berger Paints
is expected to be driven by dealer expansion, new product launches, and
capacity expansion. The firm is planning
to increase its production capacity from 620 million liters to 1.1 billion
liters. Kansai Nerolac Paints, on the other hand, has also announced an
investment of INR 2.9 billion to increase the capacity to 600 million liters.
Asian Paints has also announced a capital expenditure
of INR 80 billion to expand its production capacity. Currently, Asian Paints
has a capacity of 1.75 billion liters, which, post-expansion, will increase to
2.63 billion liters. For Asian Paints, Q1 2023, growth was driven by
initiatives such as influencer outreach, digital interventions, and new product
launches, among other things. Although the entry of Grasim Industries is
expected to impact the growth of smaller players in the decorative paints
category, ConsTrack360 expects the
growth momentum for Asian Paints to continue in H2 2023.
Read More - Aggressive growth strategy adopted by paint businesses
may hit sector profits in India
The Indian construction chemical industry is expected
to further grow in H2 2023 and H1 2024. This is clearly indicated in the
strategy adopted by many players in the segment, who are seeking to tap into
the growing market opportunity.
·
Kamdhenu
Ventures, the decorative paint business of Kamdhenu Group, revealed that the
firm is eyeing a four-fold growth in revenue by fiscal 2027 – 28. To accelerate
its growth, the firm is planning to launch new and innovative products in the
market, which will also enable Kamdhenu Ventures to enhance its market share in
the southern and western part of the country. In the northern and eastern
market of India, the firm is planning to increase its distribution and dealer
network. The strategy of the firm is to increase its market share in Tier II
and III cities going forward.
Overall, the outlook for the Indian construction chemical
market remains robust, and this will also aid the growth of the regional
market, as reported in the Asia Pacific construction chemical market research
report by ConsTrack360. In addition to the Indian construction chemical market
size, the US construction chemical market size is also projected to grow
significantly over the next five years.
Read More - Foreign players are setting up construction chemical
manufacturing bases in India in 2023
In Europe as well, the market is poised to record
accelerated growth over the next five
years. Factors such as retail expansion and mergers and acquisition
deals will drive the competitive landscape, as per the Europe construction
chemical market report from ConsTrack360. While the global construction
chemical market research report from ConsTrack360 indicates that the industry
is expected to grow from US$81.49 billion in 2023 to reach US$120.39 billion by
2027.
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