 "\"India should take a lead in construction chemicals research\"")
Construction chemicals are key inputs for any construction activity – be it housing, roads, industrial complex, etc – to give strength and other characteristics to the structure increasing its lifespan. Though niche, the construction chemicals market is witnessing rapid growth with the construction industry gaining momentum due to increased urbanisation and focus of the government on infrastructure development. Meeting the needs of the evolving construction industry is the Mumbai-based Perma Construction Aids Pvt Ltd, which has been in this industry for the last 18 years, with its innovative range of construction chemicals.
In this freewheeling interview with Rakesh Rao, A J Charles and M A Waheed, the Directors and Founders of Perma Construction Aids, throw some light on the trends in the construction chemicals industry and its importance for developing countries, such as India.
Could you please take us through the history of Perma Construction Aids?
A J Charles (AJC): We started this company in 1996. We thought to leverage on our experience of working in construction chemicals industry since 1986 to build a business which can serve the construction industry. Today, we supply our products not only in India, but also to neighbouring countries.
We operate through distributor-driven model that helps us to focus on our core competency of manufacturing and developing market-relevant products. Today, we produce more than 100 products, which are available in packs of 100 ml to 200 kg. Hence, we are able to cater to a wide range of customers. In addition, Perma Construction offers custom-made products to meet the specific requirements of the end-users.
ALSO READ: Adding a touch of modernity to waterproofing for leak-proof results
Has the slowdown affected your business?
AJC: In spite of economic downturn in the last couple of years, we have been able to register 20% year-on-year (YoY) growth because our business model is different.
What is the current status of construction chemicals industry?
AJC: Today, the construction chemicals industry is estimated to be about Rs 5,000 crore, which is projected to grow to Rs 20,000 crore in the next 15 years. Hence, there is a huge potential. However, this industry constitutes a very small percentage of the overall chemical industry. It is a misnomer that construction chemicals are a part of chemical industry. It should be ideally clubbed under infrastructure and housing sector. We are, through the association, trying to convince the government to bring construction chemicals under infrastructure and housing sector since these chemicals provide a lot of value-additions to this sector.
For sustainable development, construction and housing sector is gearing up to adopt new techniques and raw materials for construction. Against this background, innovations in construction chemicals will play a big role.
Compared to developed countries, how is the demand for construction chemicals in India?
While construction chemicals account for about 5% of the total cost of construction in Europe, it is less than 1% in India. So there is still a long way to go for the construction chemicals industry in India.
What is driving this market?
MAW: It is a necessity driven market. Builders/constructors are using these chemicals to solve their construction-related challenges. Housing projects are investment intensive and any damage or short-comings may drive the buyer away, thus incurring loss.
In developed markets, architect and structure engineer work closely for construction projects. Structural engineer recommends the type of chemicals/treatments required for the structure after taking into account the construction technique, design, climatic conditions and raw materials used for the construction.
Unfortunately, in India, nobody specifies this. Hence, we need norms and codes for the usage of chemicals in construction and housing industry.
Please throw some light on the standards being followed by the industry.
MAW: Research for construction materials is carried out in developed countries that have established codes for various types of construction chemicals based on the conditions prevailing in their countries. Some of these codes have been adopted in India as well. However, India needs to develop its own standards and codes depending upon the environmental conditions, materials and methods of constructions in the country.
The related-government body is aware of this and is taking all the necessary steps in this regard. However, this is a long-drawn procedure which will require continuous consultation between the government body and all other stakeholders of the industry.
ALSO READ: Top tips to optimally use conventional waterproofing techniques
Will the entry of big corporates in housing sector help construction chemicals industry?
MAW: With big corporates entering the construction arena, we believe things will change for better. These corporates have a vast knowledge pool and are well organised. They would also like to maintain their brand reputation and, hence, will use quality materials and methods for construction.
What are the challenges faced by this industry?
There is also a need to have standards and codes which can match the requirements of today’s construction activities. Though there are some norms available, they are either too old or have been derived from international standards. We will have to look at modifying these standards and bring them in line with the Indian conditions.
Construction workers in India lack soft skills, which are quintessential for the development of the industry. These workers normally take up the job without any formal education or training. If we are able to train them or provide certified courses, there will be a quantum leap in the quality of work. Industry and government institutes can join hands for this purpose.
As more skilled workers join the workforce, the consumption of construction chemicals will go up.
ALSO READ: Construction chemicals providing strength to construction industry
Are Indian companies investing in research?
MAW: In developed countries, construction activity (housing and infrastructure) is slowing down as population is shrinking. However, in India, population is increasing with people moving to cities. Hence, India should take a lead in developing innovative construction materials and chemicals to meet the growing demands of rising construction activities due to increased urbanisation.
What needs to be done to give a boost to this industry?
MAW: Steps should be taken to increase collaboration between all the stakeholders - architect, structural engineers and government bodies –to establish right guidelines/codes for construction materials/chemicals. Structural engineers should have the knowledge of alternatives available and their proper utility. Structural engineers and construction chemical manufacturers can join forces to develop better products and techniques for construction.
Is Perma Construction planning for any expansion?
AJC: All the Perma Construction products are manufactured at its two manufacturing units at Sarigam in Gujarat. Construction chemicals business is highly regional. Hence, we are looking to expand our manufacturing footprint in other regions as this will bring down the logistics cost and increase the demand for our products.
What are growth plans for Perma Construction?
MAW: We have been one of the pioneers in construction chemicals in India. The company has been focusing on introducing new products from time to time to meet the changing demands of our customers. We would continue to do it and expand our business further.
In this freewheeling interview with Rakesh Rao, A J Charles and M A Waheed, the Directors and Founders of Perma Construction Aids, throw some light on the trends in the construction chemicals industry and its importance for developing countries, such as India.
Could you please take us through the history of Perma Construction Aids?
A J Charles (AJC): We started this company in 1996. We thought to leverage on our experience of working in construction chemicals industry since 1986 to build a business which can serve the construction industry. Today, we supply our products not only in India, but also to neighbouring countries.
We operate through distributor-driven model that helps us to focus on our core competency of manufacturing and developing market-relevant products. Today, we produce more than 100 products, which are available in packs of 100 ml to 200 kg. Hence, we are able to cater to a wide range of customers. In addition, Perma Construction offers custom-made products to meet the specific requirements of the end-users.
ALSO READ: Adding a touch of modernity to waterproofing for leak-proof results
Has the slowdown affected your business?
AJC: In spite of economic downturn in the last couple of years, we have been able to register 20% year-on-year (YoY) growth because our business model is different.
What is the current status of construction chemicals industry?
AJC: Today, the construction chemicals industry is estimated to be about Rs 5,000 crore, which is projected to grow to Rs 20,000 crore in the next 15 years. Hence, there is a huge potential. However, this industry constitutes a very small percentage of the overall chemical industry. It is a misnomer that construction chemicals are a part of chemical industry. It should be ideally clubbed under infrastructure and housing sector. We are, through the association, trying to convince the government to bring construction chemicals under infrastructure and housing sector since these chemicals provide a lot of value-additions to this sector.
For sustainable development, construction and housing sector is gearing up to adopt new techniques and raw materials for construction. Against this background, innovations in construction chemicals will play a big role.
Compared to developed countries, how is the demand for construction chemicals in India?
M A Waheed, Director, Perma Construction Aids
M A Waheed (MAW): Demand for chemicals/aids from construction industry has always been there. However, the technology of construction has undergone a sea change which has led to high demand for innovative construction chemicals compared to the conventionally used methods. Still the market is miniscule compared to developed countries.While construction chemicals account for about 5% of the total cost of construction in Europe, it is less than 1% in India. So there is still a long way to go for the construction chemicals industry in India.
What is driving this market?
MAW: It is a necessity driven market. Builders/constructors are using these chemicals to solve their construction-related challenges. Housing projects are investment intensive and any damage or short-comings may drive the buyer away, thus incurring loss.
In developed markets, architect and structure engineer work closely for construction projects. Structural engineer recommends the type of chemicals/treatments required for the structure after taking into account the construction technique, design, climatic conditions and raw materials used for the construction.
Unfortunately, in India, nobody specifies this. Hence, we need norms and codes for the usage of chemicals in construction and housing industry.
Please throw some light on the standards being followed by the industry.
MAW: Research for construction materials is carried out in developed countries that have established codes for various types of construction chemicals based on the conditions prevailing in their countries. Some of these codes have been adopted in India as well. However, India needs to develop its own standards and codes depending upon the environmental conditions, materials and methods of constructions in the country.
The related-government body is aware of this and is taking all the necessary steps in this regard. However, this is a long-drawn procedure which will require continuous consultation between the government body and all other stakeholders of the industry.
ALSO READ: Top tips to optimally use conventional waterproofing techniques
Will the entry of big corporates in housing sector help construction chemicals industry?
MAW: With big corporates entering the construction arena, we believe things will change for better. These corporates have a vast knowledge pool and are well organised. They would also like to maintain their brand reputation and, hence, will use quality materials and methods for construction.
What are the challenges faced by this industry?
A J Charles, Director, Perma Construction Aids
AJC: We are still using old techniques for construction. Increased urbanisation has resulted in rapid rise in the speed of construction. Material of construction and techniques, which need to be adopted, should be in sync with the new challenges. Construction chemicals can deliver desired results to architects and builders who in turn can meet requirements of the customers. Scientific usage of materials is imperative for structures to last for generations.There is also a need to have standards and codes which can match the requirements of today’s construction activities. Though there are some norms available, they are either too old or have been derived from international standards. We will have to look at modifying these standards and bring them in line with the Indian conditions.
Construction workers in India lack soft skills, which are quintessential for the development of the industry. These workers normally take up the job without any formal education or training. If we are able to train them or provide certified courses, there will be a quantum leap in the quality of work. Industry and government institutes can join hands for this purpose.
As more skilled workers join the workforce, the consumption of construction chemicals will go up.
ALSO READ: Construction chemicals providing strength to construction industry
Are Indian companies investing in research?
MAW: In developed countries, construction activity (housing and infrastructure) is slowing down as population is shrinking. However, in India, population is increasing with people moving to cities. Hence, India should take a lead in developing innovative construction materials and chemicals to meet the growing demands of rising construction activities due to increased urbanisation.
What needs to be done to give a boost to this industry?
MAW: Steps should be taken to increase collaboration between all the stakeholders - architect, structural engineers and government bodies –to establish right guidelines/codes for construction materials/chemicals. Structural engineers should have the knowledge of alternatives available and their proper utility. Structural engineers and construction chemical manufacturers can join forces to develop better products and techniques for construction.
Is Perma Construction planning for any expansion?
AJC: All the Perma Construction products are manufactured at its two manufacturing units at Sarigam in Gujarat. Construction chemicals business is highly regional. Hence, we are looking to expand our manufacturing footprint in other regions as this will bring down the logistics cost and increase the demand for our products.
What are growth plans for Perma Construction?
MAW: We have been one of the pioneers in construction chemicals in India. The company has been focusing on introducing new products from time to time to meet the changing demands of our customers. We would continue to do it and expand our business further.