Construction chemicals are essential for high quality concrete and for the improvement of concrete performance – they account for nearly 2 per cent-5 per cent of the project cost but the benefits realised are far more than the increase in the cost of the project.
India’s construction chemicals industry was valued at Rs 3,500 crore in the year 2014 and grew from Rs 1,900 crore since 2009. It is expected to grow close to 14-16 per cent per annum for the next five years. Admixtures constitute the majority of the market with 42 per cent share. Flooring and waterproofing agents are the next leading segments with 14 per cent share each. Chemicals for repair and rehabilitation constitute another 12 per cent of the market while the remaining 18 per cent is formed by adhesives & sealants. The share of flooring chemicals is high in the Indian market as compared to the developed world while India has a low share of tiling, sealants and waterproofing. Refer to Figure 1.
The use of construction chemicals not only depends on the quality of materials used but equally depends on proper application. Quite often the desired results are not obtained due to improper application. The manufacturers will have to invest in developing the right kind of agencies with adequate tools and equipments as applicators. A large number of multinational (MNC) players along with local manufacturers are present in India. MNCs are trying to set up manufacturing facilities here in India. The top 7 players account for ~50 per cent of the market; next 20 players ~25 per cent and the remaining 25 per cent comprises small and unorganised players.
Construction chemicals account for nearly 2 per cent-5 per cent of the project cost but the benefits realised are far more than the increase in the cost of the project. Some of these chemical products help in minimising the quantities of cement and water used in the construction. Construction chemicals are essential for high quality concrete and for promoting the improvement of concrete performance.
Construction chemical segments
As stated above, construction chemicals can be divided into six major segments. Refer Figure 2.The market is largely driven by concrete admixtures. Refer to Figure 1.
Admixtures
Generally admixtures are used for getting better workability, more strength and finishing. Chemical admixtures are added to the mix immediately before or during mixing. Admixtures are primarily used to reduce water content in concrete or to keep the concrete in flowing condition for longer time. In the market there are three types of admixtures. Ligno based, SNF (Sulfonated Naphthalene Formaldehyde) & SMF (Sulfonated Melamine Formaldehyde) based and PCE (Polycarboxylate ether) based. The raw materials for manufacturing of PCE admixtures have not been easily available in India. But a few companies have now started producing them domestically in the recent past.
Flooring agents
The construction chemicals for flooring are mostly epoxy and polyurethane based. Industrial flooring is expected to meet specific demands such as abrasion, load impact, chemical attack, moisture penetration, strengthening of damaged floors as well as improving the aesthetic appeal of the floor. Some time they are used to provide certain features such as slip resistance, static resistance, fire resistance, antibacterial properties, and so on. Flooring compounds are largely used at the finishing stage of the construction. Major commercial complexes, shopping malls and hospitals prefer such products. Epoxy and floor hardeners constitute the major share of the market followed by PU based flooring agents.
Waterproofing agents
Waterproofing caters to various end-use applications with products based on PU, polymers like SBR & Acrylic. These compounds are available in liquid, solid, slurry and two-component coating forms. Waterproofing compounds are designed to make the concrete layer watertight. These compounds or membranes can be very effective when applied on the exterior surface. Waterproofing compounds are also added during the construction as integral water-proofer while mixing of concrete or mortar. Post-construction it is a preventive and maintenance waterproofing ingredient.
Repair & Rehabilitation
Repair and rehabilitation is a highly unexplored and under-developed market. Rehabilitation is reconstruction of the structural components which are damaged. The products include cement based repair mortars, epoxy based mortars and other products like rust removers, anti-corrosion products etc.
Cementitious mortars are most frequently used due to their lower prices as well as the ease of usage. Polymer-based repair and rehabilitation products are widely used as they are less expensive than epoxy-based material and also comply with the desired strength criteria. Epoxy-based mortars are a growing segment and skilled labour is required for most of the product applications.
Subcategories
Tile adhesives: This is one such market segment which is highly undervalued due to lack of knowledge. Even many engineers today feel that cement is a better binder for fixing tiles. On many occasions when wrong grade of cement is used, the users can land up in serious problems. Tile fixing mortars are suitable materials for such use. Epoxy adhesives: Epoxy resins are two component cold curing adhesives which produce high strength durable bonds. These adhesives may be used internally or externally and are resistant to oils, water, dilute acids, alkalis and most solvents. Sealants: Sealants are used to seal expansion joints, cracks, joints in concrete roads and to fill gaps between concrete members. Major types of sealants include- Polysulphide sealants: These are most commonly used in the construction industry as expansion joints for concrete roads, structural joints and Others: Polyurethane sealants: These are used for high-end applications where high flexibility and bonding strength are required.
Silicone sealants: These are generally used where good bonding is required between two dissimilar surfaces such as fixing of glass on metal frame.
Grouts: Grouts are ready-to-use mixes for giving extra strength for the foundations or any other concrete structural member. They are also used for repair and sometimes even for new construction or sealing of cracks or gaps. These can be injectable materials. Epoxy-based liquid grouting compounds are mainly injected into the walls to fill hairline cracks and gaps, thereby improving the strength of the structure. Cementitious grouts are used for imparting extra strength to machine foundations, base plate or anchor bolts for machines or equipment and others. They are also used for repair of building structures and in heavy industries such as steel, power plants and ports. Polyester-based grouts are also available, which are used for anchoring to impart strength to foundations that must be achieved in limited available space. Grouts can also be made to have special characteristics such as fast setting, free flow, on-shrink and others by addition of different additives as per the end-user requirement.
Curing compounds
These are chemicals which are applied over the surface of concrete so that one does not need water for curing concrete. These chemicals have great potential in a country like India where ambient temperature during summer is quite high. High rise buildings and inaccessible locations provide great opportunity. Even otherwise for conservation of water, these compounds will have good business potential in the years to come. But in today’s scenario these products have not been doing enough business. The reasons attributed can be lack of awareness.
Major players
There are a large number of global construction companies who have set up local manufacturing operations in India. The top 7 players account for ~50 per cent of the market; next 20 players ~25 per cent and the remaining 25 per cent comprises small and unorganised players. Based on revenues, top 5 players are Pidilite, BASF, Sika, Fosroc and Chryso (formerly SWC). The key strength of Pidlite is its penetration in the retail segment while that of BASF is the institutional segment. Chryso, after takeover of SWC has increased its footprint in India.
Challenges
The industry faces many challenges in spite of the strong growth rates. The low awareness levels, lack of skilled labour and high price-sensitivity of customers are a few. Hence, it becomes imperative for construction chemical manufacturers to invest in effective marketing and distribution of products to make users aware of their applications and benefits. Providing technical training to workers about appropriate usage of chemicals in construction will also ensure correct application and better results, reinforcing the customers’ belief in the utility of construction chemicals. The market of construction chemicals in India is still underdeveloped when compared to other countries, such as China, which accounted for 42 per cent of the global construction chemicals consumption in 2014. User awareness is very low regarding chemical techniques and construction aids. Raw material availability The durability of material has not been studied extensively by manu-facturers under Indian conditions. The chemical protection and maintenance is not well understood by the user. The application tools or accessories need to be updated. The code provision or the user guideline with product is missing.
The industry lacks in relevant consumer standards for construction. Market participants are also frequently challenged by the absence of quality standards for manufacture and application of construction chemicals which leads to price wars. The industry is expected to reach Rs 7,000 crore by the year 2019. Also, increasing awareness amongst industry players regarding compliance with international standards is expected to promote the adoption of best practices in the industry. Ban on onsite mixing of concrete and compulsory usage of ready-to-mix cement in metros are the key govern-ment regulations which could have significant impact on industry growth. Sand and bricks, apart from steel, cement and aggregate are the prime raw materials that go into construction. Due to non-availability of natural sand, the industry has started using crushed stone sand and artificial sand. This is likely to impact the usage and requirements of construction chemicals in the market as the quality specifications of the concrete from artificial sand would be different than that of the natural sand. The Indian Construction Industry is fast adopting the best practices from across the world and implementing consumer standards matching international standards. This will help increase the current penetration levels of construction chemicals. Few of the recent developments can forecast the upcoming trends in the usage of construction chemicals. Ban on on-site mixing of concrete is aimed at reducing pollution levels and in turn would generate demand for ready-mix concrete admixtures. Self-compacting concrete (SSC) is being preferred over normal-strength concrete as SSC doesn’t require external compaction and enhances strength of structure. Increased usage of SSC would drive the growth of special admixtures like plasticizers and retardants. High rise buildings are being developed in cities owing to space constraints. This trend is driving the growth of high performance concrete and increased use of admixtures and related construction chemicals.
Corrosion Mitigation
Corrosion is a common property exhibited by all the metals except gold and platinum. Hence the chemicals which are used to control the corrosion process gain importance. While repairing old structures there are different kind of chemicals used and for fresh concrete, in order to restrict the rate of corrosion, different type of chemicals are used. This is another sector which is set to grow.
Reference: 6th National Conference on Construction Chemicals by FICCI, New Delhi. Knowledge Paper on Construction Chemicals as Enabler for Smart Cities.