Professional Documents
Culture Documents
Building Materials Sector in India
Building Materials Sector in India
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Contents
Building Materials :
• An overview
• Cement
• Tiles
• Sanitary ware
• Bathroom fittings & Accessories
• Paints
• Roofing Systems
• Glass
• Lighting
• Wood
• Steel
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Building Materials : Overview
• The combined market value of cement, bitumen, iron and steel, chemicals,
bricks, paints, tiles etc is estimated at INR 2,500 billion annually
– Use of burnt bricks, with cement plastering as the primary material for
walls
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Real Estate - Overview
• The Indian real estate market is Real estate market ( $ billion)
expected to reach $50 billion by 2009- 60
10 50
50
years
Real estate market : US$ 50 billion
– Office space: Five-fold increase in (2009-10)
office space over the next five
Retail
years 14%
• Growth in population, urbanisation and income have driven the demand for
non-slum houses across India
• Housing stock was estimated at 255 million units in 2007, and is expected to
reach 286 million units by 2011, at a CAGR of 3.0% per annum; to add an
average of 7.7 million residential units annually
• A planning commission survey report indicates a shortage of about 24.7
million houses in India in 2007
2007 2011
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Increase in Commercial Space
• By 2010, the IT-ITES sector will add more than a million people.
Consequently, creating office space demand of 100 million plus square feet
• The demand for office space is expected to go up to 500 million sq feet in the
next ten years
• The non-IT and manufacturing sectors are also migrating from legacy
buildings to Grade-A office spaces. This is expected to account for 30-40% of
India’s commercial real estate demand over the next decade
1200
1,000
1000
800
600
400
150
200
0
India UK
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Increase in Hotels
• Occupancy rates in Indian hotels is around 80%. The hotel industry is facing
an acute shortage of rooms
• To match the burgeoning demand for accommodation in business centers and
tourist attractions, a huge growth is expected in the hotel industry
• An estimated $ 11.5 billion investment is expected in this sector over the next
two years
• 40 international brands are likely to establish their presence in India by 2011
80000 70000
60000
36000
40000
20000 6500
0
India Seoul Hong Kong
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Cement : Contents
• Introduction
• Capacity & Production
• Raw Material & Fuel
• Cement Production : by type
• Consumption patterns
• Production &n Capacity Utilisation
• Process capacity : Large plants
• Capacity Utilisation : Select Players
• Sales & Distribution
• Major players & Market share
• Export & Import
• Cement Major users
• Cement Energy consumption
• Ready Mix Concrete (RMC)
• Competitive Scenario
• Recent developments
• Government policies
• Company Profile
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Cement Industry : Overview
• The Indian cement industry dates back to 1914, and the first unit was put up in
Porbunder, Gujarat
• India is the second largest producer of cement in the world, and has an
installed capacity of around 196 million tonnes per annum (2007-08)
• The per capita consumption of cement in India is at 135 kgs and is the lowest,
compared to the world average at 250 kgs, thus offering scope for future
growth
• The cement industry accounts for approximately 1.3% of the country’s GDP
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Installed Capacity & Production (2006-07)
Million Tonnes
• Production 162.0
– Large Plants 156.0
– Mini Plants 6.0
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Major User Segments
Infrastructure
and Industry
15%
Repair Work
Housing 20%
65%
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Export & Import Trends : (2001 – 2006)
• Threat of imports not very much - due to weight & bulk - transportation
problems
INR Million
Export Import
2001 - 02 4,512 92
2002 - 03 5,755 42
2003 - 04 8,460 93
2004 - 05 10,285 82
2005 - 06 11,153 139
2006 - 07 11,474 654
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Tiles : Contents
• Introduction
• Industry Structure
• Technology & Raw Materials
• Production
• Major Players & Market Shares
• Expansion plans
• Marketing & Distribution
• Import & Export
• Outlook
• Company Profiles
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Ceramic Tiles : Overview
• The ceramic tile industry is divided into organised and unorganised sector.
The unorganised sector accounts for 55% of the total Industry
• The industry turnover was estimated at INR 65.0 billion in 2006-07 & INR 86.0
billion in 2007-08
• Domestic production of ceramic tiles was estimated at 340 million sq. meters
in 2006-07, compared to the Global production at 6.9 billion sq. meters
• Per capita ceramic tile consumption in India is 0.30 sq. m per annum as
compared to 2 sq. m. per annum in China and 5 to 6 sq. m. per annum in
European countries and 2.5sq.m per annum in brazil(2006-07)
• The industry is witnessing a growth rate of 15% per annum compared to the
Global growth rate at 6%
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Tiles : Industry Structure
• There are around 16 players in the organised sector, and around 200 in the
unorganised sector (70% based in Gujarat region)
• Industry divided broadly into Wall tiles & Floor tiles Vitrified tile and Porcelain
tile segments:
Vitrified /
Porcelian
12%
Wall tiles
35%
Floor tiles
53%
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Tiles Industry : Production (2006-07)
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Vitrified
Floor Tiles Wall Tiles Procelian Total
Tiles
Organised 13.8 12.0 2.4 1.8 30.0
Unorganised 12.2 20.0 2.1 0.7 35.0
Total 26.0 32.0 4.5 2.5 65.0
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Sanitaryware : Contents
• Introduction
• Industry Structure
• Major Players & Market Shares
• Production
• Import & Export
• Competitive Scenario
• Outlook
• Company Profiles
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Overview
• India’s production for the year 2006-07 was 22 million pieces, while the
global production stood at 300 million pieces
• The branded segment is growing at 15% per annum, while the non-branded
segment is witnessing a lower growth rate of 8-9% per annum
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Key Statistics (2006-07)
No. of units: 9
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Industry Structure : Major Products
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Bathroom Fittings & Accessories : Contents
• Introduction
• Major Products: Bath Fittings
• Major Products: Bathroom Accessories
• Raw Materials & Surface Coatings
• Major Players
• Competitive Scenario
• Outlook
• Company Profile
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Overview
• Almost all the manufacturers of bathroom fittings are located in North India.
Manufacturing clusters are located in:
• Delhi
• Chandigarh
• Mathura, UP
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Major Products : Bath Fittings
• Introduction
• Industry Structure
• Technology & Raw Materials
• Major Categories
• Production
• Major Players & Market Shares
• Technical Collaboration
• Decorative Paints : Overview
• Industrial Paints : Overview
• Recent Developments
• Outlook
• Duty Structure
• Company Profiles
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Overview
• The organised sector accounts for 70% of the market while the unorganised
(small scale units) account for rest of the market
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Major Categories
Cement paints
14%
Distemper Automotive
Emulsions
18% 6%
4%
Others
4%
Industrial
Enamels /
Varnishes General
47% Industries
7%
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Technology & Raw Materials
• Raw material costs account for 60 % of the total cost
– Titanium oxide is the important raw material for paint; of the production
60% is consumed for the paint production
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Production Trends (2000 – 2006)
000 tonnes
800 774
700 727
637
650 667
645
600
550
500
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
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Glass : Contents
• Introduction
• Major Players
• Major Players & Market shares
• Flat Glass Production
• Import & Export
• Glass in building Industry
• Outlook
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Overview
• The country currently has a total flat glass manufacturing capacity of 950,000
tonnes per annum. Float glass has larger share of the capacity at 80%
compared to sheet glass at 20%
• The production of flat glass during 2006-07 was estimated at 667,000 tonnes
per annum
• India’s per capita consumption of float / sheet glass is the lowest in the
world, only 0.8 kg compared to other countries such as Thailand (5.2 kg),
China (3.5 kg), Malaysia (2 kg) and Indonesia (2.5 kg)
1400
1200
1104
1000
883
800
740 723
660 736
600
400
200
0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
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Export & Import (2001 – 2006)
INR Bn.
5.0
4.4
4.0
3.8
3.0
2.0 2.4
2.6
2.0 2.4
1.5
1.4
1.5 1.9 1.4
0.0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Import Export
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Lighting : Contents
• Luminaries
• Outlook
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Overview
• The lighting industry in India is growing at 20% per annum over the last two
to three years
• The market for luminaires was estimated at INR10.0 billion in 2006-07, and
includes products such as Lourves, Reflectors, Chokes and Ballasts etc.
• Major players in this sector are Bajaj, GE India, Crompton Greaves and
Philips
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Production (2006)
Organized Total
Category SS Sector
Sector 2006
*SS Sector for CFL also includes import as well assembled CFL
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Steel : Contents
• Introduction
• Industry Structure
• Capacity & Production
• Category wise production
• Steel Products : Total production
• Major Players & Production
• Steel Duty Structure
• Outlook
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Overview
• The birth of the Indian steel industry and commencement of large scale steel
production can be dated back to 1907, when Tata Iron and Steel Company
(TISCO) set up their steel plant at Jamshedpur
• Steel industry was delicensed and decontrolled in 1991 & 1992 respectively
• India is the 7th largest producer of steel in the world and the 4th largest
producer of iron ore
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Industry Structure
• Flat products : Hot Rolled (HR) Coils, Cold Rolled (CR) Coils,
Plates etc.
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Capacity & Production : (2006-07)
Capacity
– Primary Sector : 51 MTPA (2006-07)
2006-07
Steel ( Mn tonnes )
Exports : 6.8
Imports : 6.8
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Madras Consultancy Group
1A, Ananya, No.41/17,
I Avenue, Indira Nagar, Adyar,
Chennai 600 020, India.
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