Indian Bituminous Waterproofing Membranes Market, 2017

Indian Bituminous Waterproofing Membranes Market

The Indian construction space is set to grow on the back of huge investments. India has among the lowest penetration rates in the preventive waterproofing space with majority of the builders still using crude, traditional waterproofing solutions. Bituminous waterproofing with its relatively cheap price has potential to tap into the growing waterproofing segment - primarily to convert non-users to users of waterproofing. Among Bituminous waterproofing types, APP and SBS modified membranes have the highest price to performance ratio and are expected to be the key drivers of growth for this segment. However, along with opportunities, certain challenges like lack of consumer awareness and threat of polymer substitutes are also present.

  • Frost & Sullivan - Introduction
  • Key Takeaways
    • Atactic Polypropylene and Styrene Butadiene Styrene modified membranes to be key growth focus for companies in bituminous waterproofing
    • Despite stiff competition from polymer-based waterproofing solutions, Bituminous formats to grow in line with construction industry growth
    • Market Penetration (vis-à -vis competition) and Market Development remain key pivots for strategy development
  • Scope & Limitations
  • Macroeconomic Trends
    • The Indian construction space is set to see rapid growth driven by urbanization and large infrastructure investments
    • India's urbanization will be complemented by large infrastructure projects especially for connectivity and energy
    • Rising population and an undersized residential construction market provide scope for high growth in the residential construction space also
    • A stable government and multiple investment initiatives set to aid growth in industrial construction and warehousing
  • Market outlook: India
    • The Indian Market for Waterproofing is characterized by low penetration and low spending power (hindered by low cost of construction)
    • Growth in construction chemicals results in growing waterproofing market; bituminous solutions, especially, seeing increasing adoption rates
    • Domestic production constitutes 92% of the market while imports constitute just 8%, majorly through APP and SBS
    • The top three players in the market command 50% of the total sales, indicating high degree of concentration
    • APP and SBS are growth drivers in the Indian bituminous waterproofing market
    • Infrastructure which dominates bituminous waterproofing due to greater penetration may see sustained growth with large govt. initiatives
    • Although infrastructure is the biggest target, industrial, house and building segments also provide opportunities due to ease of access and execution
    • With channel sales accounting for only 25%, commercials offered to intermediate decision makers like contractors key to growth…
    • Especially in Infra-BOT and House & Building Tier 1 segments, which have high premiumization potential
    • Aside from product specifics, consultants, applicators, and channel partners are key influencers in the waterproofing product space
    • However, it is imperative that the manufacturer maintain relationships with all stakeholders across the purchase process
    • Even with best price to performance ratios among bituminous products, APP and SBS face potential substitution from polymeric counterparts
    • SBS, which warrants higher margins could substitute APP in many applications if product awareness and availability is increased
  • Annexure: Our Services
    • Maximize opportunities from existing products and markets; systematically explore new products, markets, including inorganic Opportunities
    • Our Growth Consulting Canvas

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