The building materials industry is the second largest employer in the country. Not only does the sector employ a large number of people, but also contributes significantly to the nation’s economy. It accounts for 8% of India’s GDP and is valued at approximately $126 billion; industry reports forecast building materials to record a CAGR of 13% y-o-y to reach $750 billion by 2023. Major developments are expected in Infrastructure development sectors, Affordable Housing segment, Airport development, Port, solar park development, strengthening of logistics and warehousing segments and metro rail network expansion. hospitality, retail, entertainment, education, SEZs, FTWZs etc. have largely contributed to the growth.
The backbone for the overall economic development of the country has been our developing infrastructure market. Building infrastructure requires cement, ceramics, steel, aluminium & lot of other material materials which make the future of building material industry more promising. The launch of numerous ambitious building schemes in the recent past by the Indian government including industrial parks and corridors, smart cities, logistics networks, Housing for All 2022 scheme etc are strong contributing agents to the growth of the industry.
This will also increase the focus on industries like coal and steel, natural gas, windows, ceramics, crude oil, refinery products, fertilisers, water supply, cement, electricity and sanitation. which will, in turn, lead to the growth of the building materials. Framework for policy such as GST, RERA, Benami Act, REIT, steps to reduce approval delays Solutions for thermal proofing, water proofing, sound proofing, fire proofing, corrosion proofing, building automation including security, access regulation, climate control etc. are going to strengthen the future of the construction industry in India. The Order size would vary from project to project, the products are co-related and have demand.
Road Ahead
The major development in metros, Tier 2 & 3 cities would be visible going forward. Government spend would be key to the sector, we estimate Infra development in India is necessary and all major steps in this direction would reflect going forward.
BENEFICIARIES : SHANKARA BULIDING PRODUCTS, EVEREST IND, INDIAN HUME PIPES, ASTRAL, PRINCE PIPES, KAJARIA CERAMICS, HIL, JSW STEEL, TATA STEEL, ACC, AMBUJA
