The construction chemicals industry is expected to grow by 16 per cent annually over the next five years to reach Rs 8,000 crore by 2017-18, following a growth in the construction sector due to the government's investment plans, according to a report.
"The industry is expected to maintain its growth momentum driven by untapped potential of the market and expected growth in construction industry over the next 5-7 years due to government's investment plans.
"The industry is expected to grow by 15-16 per cent per annum over the next five years and reach Rs 7,000-8,000 by FY18," according to the knowledge paper on 'Indian Construction Chemicals Industry Imperatives of Growth'.
However, the report said, despite strong growth drivers the industry is facing challenges like low awareness levels, lack of skilled labour and high price-sensitivity of customers.
The knowledge paper is developed by Tata Strategic Management Group and FICCI.
Currently, the construction chemicals industry stands at Rs 3,600 crore, with admixtures constituting 42 per cent of the share, followed by flooring and waterproofing agents 14 per cent, chemicals for rehabilitation 12 per cent and adhesives and sealants 18 per cent.
The penetration of level of construction chemicals is currently very low in India compared to other countries like China, which accounts for 42 per cent of the global consumption in 2012, the report pointed out.
The industry also lacks relevant consumer standards for construction.
Even as usage of construction chemicals increase the cost of a project by 2-5 per cent, it increases the life of the end product with improved performance, it added.
