The construction chemical market in India is expected to grow significantly over the next five years. The construction chemical market in India will be largely driven by the increasing demand for high-quality infrastructure from the short to medium-term perspective. India is one of the fastest-growing economies in the world, and the government's focus on developing world-class infrastructure has led to a surge in demand for construction chemicals.
The government's push for affordable housing has also led to a rise in the construction of affordable homes, further boosting the demand for construction chemicals. To meet the growing demand for construction chemicals, companies are expanding their product portfolio through mergers and acquisitions.
· In April 2023, Indigo Paints, one of the leading paints manufacturers in India, announced that the firm had acquired a 51% stake in construction chemical firm Apple Chemie. With the majority of the shares acquired by Indigo Paints, Apple Chemie will become a subsidiary of the paint firm. This will enable Indigo Paints to further expand its presence and product portfolio in the construction chemical space.
· Apple Chemie has posted strong growth over the last few years in the construction chemicals market. In FY 2022, the firm recorded sales of INR 3.2 billion and is projected to clock over INR 4.1 billion in FY 2023. The addition of Apple Chemie to its core business will, therefore, aid the revenue growth for Indigo Paints from the short to medium-term perspective.
In March 2023, Indigo Paints announced that the firm is foraying into the construction chemical and waterproofing product category. Furthermore, to compete with industry leaders such as Asian Paints and Pidilite, the firm also announced that it plans to expand its distribution network and reach into Tier II and III cities across India.
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Apart from Indigo Paints, many other businesses in the segment are also expected to invest heavily in capital expenditure to expand their production capacities and improve their distribution networks from the short to medium-term perspective. This will keep driving innovation and a competitive landscape in the Indian construction chemicals industry over the next three to four years.
The increasing demand for construction chemicals in the infrastructure sector, the growing trend of green building construction, and the rising demand for high-quality construction materials will also lead to the entry of new players in the sector from the short to medium-term perspective. Alongside domestic firms, ConsTrack360 also expects foreign players to expand their presence in the Indian market through strategic collaborations and mergers and acquisition deals.
Overall, the construction chemical market in India is poised for significant growth over the next five years, driven by the booming construction industry and infrastructure development projects.