Chemicals paving construction
The demand for construction chemicals for renovation or new buildings has been on the rise with the spur in infrastructural development. EPC World reports.
The growth of Construction chemicals entails the growth of construction and infrastructure. Akin to the development of other sectors in India, the sector too has marked a steep growth. Owing to vast infrastructure development in the country, India rummages around for construction chemicals.
“New construction is mainly driven by infrastructure and housing needs of countries with strong migration movements of young populations into urban economic centers,” says Tilman Krauch, head of BASF‘s construction chemicals division.
The present Indian construction chemical industry is estimated at `2000 crore of which `1200 crore comprise organized sector while `800 crore is unorganized. The market is partially organized, especially in the industrial and infrastructure sectors. It is expected to touch `4000 crore by 2013 at a CAGR of 2.2%. Construction chemicals account for only 2% of the overall costs but benefits are in multiples. Growing areas such as 100% FDI in the real estate sector has given a major boost to the already fast growing construction industry.
Construction chemical has evolved to pave solution to cracks on roads and bridges, dampness in walls due to moisture accumulation. The application of construction chemical is at the weakening of building walls, roads and bridges etc due to their extensive usage.
“What we build brick-by-brick, may get destroyed by drop-by-drop seepage of water,” says Er. P. Srinivasa Reddy, Chief Executive Officer, Rehab Technologies.
In India there are a large number of buildings which are more than 40 to 50 years and which need renovation. The new laws provide for demolishing existing old structures and constructing new high rise buildings. Consequently, therefore the demand for construction chemicals for renovation of these existing buildings has been on the rise in the short term. Additionally, the tropical climate, and the inferior construction material used by builders also cause many of these building to need repairs much earlier. Substandard construction chemicals have been used in a large number of construction projects.
The two and three tier cities are the future of construction chemical market. With the awareness of the various benefits of speciality chemicals/construction chemicals used in construction, the chemicals will be accepted easily by these cities, thus increasing the usage of construction chemicals overall.
Trend in CC
India has come a long way after our Independence. Huts, bushy roofs, kutcha roads, wooden bridges etc have taken the back door. The newer and modernized technology have rightly replaced India’s infrastructure. The use of some of the most common construction materials, such as masonry and concrete, has increased, not only for housing but also for infrastructure.
“As the emphasis on sustainability increases and more pressure is applied on governments, we’ll see a shift towards the reduction in use of some raw materials common in construction chemicals,” says Colin Gouveia, commercial director, Dow Construction Chemicals, North America.
With 14.5% year-on-year growth, the construction chemicals industry in India outpaces the growth of the national cement industry by 5%, and yet the construction chemicals industry is worth much less than it should be. If, in the building of structures in India, construction chemicals were used together with cement in the same ratios as they are in developed countries such as the United States, it is estimated our industry would be worth `9,000 crores annually rather than `1,800 crores.
There is an increased emphasis on high quality construction requiring detailed designing, good workmanship and the selection of appropriate building materials. Consequently, therefore the demand for construction chemicals for renovation or building of these new and existing buildings has been on the rise in the short term.
With a view to enhance the service to the infrastructure sector, a US based silicone company, Dow Corning has launched several products with the latest one to come on floor is ‘Dow Corning 991’. The silicone is a high performance sealant which is designed for weather sealing distinctive building exteriors of granite, limestone, marble to create landmarks of modern design.
Waterproofing compound
Waterproofing compounds are another ailing solution to walls, floors, roofs, roads and bridges. It is a cold applied, solvent free, 100% solids, single component, waterproofing compound that cures by exposure to the atmospheric and or substrate moisture to form a continuous, tough, reinforced elastic waterproof seal.
Epoxy Flooring, Epoxy Coating, and General waterproofing form the types of waterproofing solutions provided during leakages. Epoxy is a two-part polymer which is formed by combining an epoxide resin with a polyamine hardener. When the two are mixed an epoxy resin is formed. Epoxy is used to seal, protect, and harden concrete floors, as well as other surfaces such as floorboards, as it has the tendency to become hard upon mixing and forms a rigid yet glossy appearing surface. The resistance of epoxy flooring to mold, fungal and bacterial attack is excellent.
Without appropriate technical guidance, speciality chemicals fail to perform upto the set benchmark. Inappropriate use or wrong application of construction chemicals, can lead to harrowing and dreadful problems such as leakages, cracking and weakening of structures etc.
The problem of water seepage in almost every household has helped in creating awareness of the waterproofing solutions offered by construction chemicals manufacturers, thus giving a boost to the waterproofing products in the market. The mixing compositions of the waterproofing products vary from product to product. We offer 2 types of waterproofing products, namely, single component and 2 components. The single component is the 100% acrylic waterproof coating (Blac Waterproofer) and Isoguard-WP (Single component polymer modified coating) and the 2 components are the cementations coatings for bathroom and tank waterproofing respectively.
PHYSICAL PROPERTY TYPICAL VALUE TEST METHOD Solids content By weight: 100% (ASTM D-1644) Solids content By colume: 100% (ASTM D-2697) Tensile strength: 95 psi (ASTM D-2370) Elongation: 350% (ASTM D-2370) Water vapor Transmission 0.06 perm inches (ASTM E-96) Shore a hardness 60-64 (ASTM D-2240)
The brickbat coba was the traditional method of waterproofing before. Now, the awareness of the problems caused due saving costs by not applying waterproof coatings has created an opportunity for us to develop various waterproofing solutions. We have waterproofing solutions that can be laid underneath the brick bat coba, or waterproof coatings to be applied over and above the IPS or any flooring done on terraces.
India at bench with China
India runs at pace matching the growth of China in construction chemical and waterproofing sector. However, the mode and method of application has demarcated the technology of China with India.
“As with China and Indian market, both are emerging and developing geographies for us. We have investments in both the markets,” says Diane Kelly, President India Region, Dow Corning.
The products that have sought greater demand in China are Caulks and Adhesives which account for nearly 40% of total industry sales. Besides this, there are scopes for fenestration products and plumbing fixtures per structure in China as well as by the use of high-performing adhesives in place of mechanical fasteners. Cement and asphalt additives will be the second-largest product category in China in 2012, with sales benefiting from increasing paved surface and high-rise building construction. Protective coatings and sealers will be the fastest-growing major product segment, with advances primarily deriving from improvements in the quality of construction in China.
This can be observed especially in China where urbanization has quickly reached a level of 40% and will further grow to 60% as in other mature societies.
It was estimated that demand for construction chemical products used in on-site applications in China is forecast to approach 40 billion yuan in 2012, expanding 10.1% per annum from 2007 whereas demand for chemical products used in non-residential building construction will reach 8.7 billion yuan in 2012.
Trend forecast
The industry has much potentiality to grow at a faster rate on the back of the end users awareness benefits of these construction chemicals. Easy adaptability to foreign technology and the entry of foreign companies in the construction sector have helped to change the mindset of the people that has eventually resulted in the growth in this sector. The new construction projects market is also expected to increase the demand for construction chemicals. Apart from this, growth will also be primarily driven by increasing construction expenditures in improvement and repair projects. The construction market is expected to grow at more than 30% per annum for the next few years. This industry has got a huge potential to grow.
Sustainability concerns have increased building practices and products that improve energy efficiency, as well as increased efforts to reduce the carbon footprint of materials such as cement. The environment is certainly changing, and companies with an emphasis on innovation will be in the best position to support these trends going forward,” says Gouveia. Meeting these needs in a sustainable manner will require innovation in the construction industry in turn can only be achieved with a broader use of construction chemical solutions.
This market is likely to grow at the rate of around 10 – 15% p.a. in the next few years. Most companies tend to be highly specialized in serving their specific market segment. They generally supply a few product types of different technology/application methods, quality and price to solve specific construction needs such as waterproofing, leakages or fireproofing. In general, the distribution of each particular product involves installation/application and most importantly a warranty on product performance. As a result, it is necessary that distributors of construction chemicals specialize in solutions to specific construction needs. A variety of construction chemicals are used in most large-scale construction projects as well as projects of special design and engineering, depending on their specific needs.
Demand Overseas
Growth will be driven by an increase in new construction, as well as more improvement and repair projects. These advances will, in turn, be fueled by continuing industrialization and urbanization in China.
“The demand for construction chemicals internationally is excellent where construction is in similar pace to India. Our percentage of exports as of now is 10% of the total sales of construction chemicals,” Vidyut Acharya, Director of Associated Chemicals
A focus on improving the general quality of construction will also boost gains by increasing the volume of chemicals used in construction applications, as well as spurring demand for higher-priced, value-added types. Production cost increases will contribute to growth in value terms, although competition within the industry will prevent suppliers from fully passing these effects through to end users. A slowdown in urban real estate markets in China will result in a deceleration in construction expenditure gains and associated chemical product sales from levels seen over the past decade.
Gains will be driven by sustained government investment in institutional buildings and foreign investment in manufacturing facilities, as well as by the use of high-end products in many of these applications. Residential building consumption of construction chemicals will be spurred by continuing urbanization in China, and by rising income levels and living standards leading to higher consumer expectations of housing quality. Non-building construction chemical demand will benefit from sustained high levels of government investment in transportation infrastructure.
Challenges
Alongside the growth and well development, the CC and waterproofing industry has also seen several short-comings and challenges on its way. The industry holds its stand strong against all the odds and tragic situations accruing in a regular time frame.
Among the numerous challenges faced by the industry, the most common to hinder the growth of CC and waterproofing sector are unskilled labours, frequent shortage of raw material leading to price hike.
“Consistent shortages of key high performance raw materials along with increasing costs are a big worry in the short term. Lack of standards in application of products and the unchecked entry of inferior quality product manufacturers is tarnishing the image of the industry. While awareness on the use of construction chemicals is now high, lack of specific education infrastructure for users and applicators is another challenge,” says Swapnil Deshmukh, Marketing Manager, Chembond Chemicals Ltd.
According to R Mukudan, co-chairman of the National Chemicals Committee, FICCI, a staggering 85% of industry players are not fully aware of the benefits of construction chemicals. Crystalline waterproofing admixtures, for example, can reduce jobsite waste, speed up construction processes and eliminate the reliance on traditional waterproofing products that are tough on the environment.
Another huge challenge is how, as an industry, we can align construction chemicals with sustainable development. Although there are green products on the market, such as Kryton’s Krystol Internal Membrane, surprisingly few companies have developed sustainable options for infrastructure and construction projects. Many speakers tackled this idea by exploring the conference’s theme, “Durable Construction Using Construction Chemicals,” with the concepts of recyclable concrete and ‘cradle to cradle construction’ generating the most buzz.
Remedial close
“Durability through the use of sustainable products, generating awareness of the benefits of construction chemicals, and educating a new generation of skilled tradesmen in the use of construction chemicals will ensure our rapid growth, and help our industry remain durable and sustainable well into the future,” says Akhil Kakkar, General Manager – Marketing & Business Development, Kryton Buildmat Co Pvt Ltd.
While the construction chemical industry in India also faces challenges that require more long-term solutions, including a shortage of natural resources and pollution, there are many that, as an industry, we can unite to overcome.
EPC WORLD NEWS BUREAU
