Technology Investment coupled with standardization can fast track RMC industry growth

Windows and doors: How does 2022 look?

An article by Mahesh Choudhary, CEO, uPVC division, Aparna Enterprises.

The building materials industry has become an example of resilience for withstanding the effects of the pandemic and bouncing back strongly. Today, the industry is valued at around $225 billion in terms of market size. The projected growth rate for this year is around 10%, and it is estimated to register a CAGR growth of 8% to 9% by 2027. With construction activities resuming in full swing, sub-segments within this industry like Ready-Mix-Concrete, uPVC, and Tiles are all gearing up for an exciting year, and are on their path to steady recovery.

Deep diving into the window and door market, it is no surprise that this division is directly affected by the trends in the building material segments’. Due to the increased demand for houses and commercial spaces, this segment is also picking up pace after a period of stagnation. Here are some key market trends that would drive the demand in the window and door market this year:

Commercial and residential activities to be the key drivers of the demand: The pandemic induced lockdowns and the hybrid/ remote models of work, has led consumers to invest in buying homes now more than ever. The residential segment is expected to be the highest driver of demand, with more consumers building/ renovating their homes. Commercial realty will also be key element determining the success of the segment. The migration back to office has led to increased work-space leasing and demand for more allied building materials products. Wider windows, sturdier doors, made with high quality materials, has been on high demand, as consumers no longer want to compromise on quality.
Government policies being in tandem with the industry’s market revival goals: The government has recognized infrastructure development as the key to economic recovery. The launch of new projects from the Government’s side provides a much needed boost to the industry. Several projects that were stalled have been green-lit again. Key projects like the “Housing for all scheme” and the Smart Cities scheme, are estimated to fuel the demand for windows, doors, tiles and other building materials
The increased demand for uPVC windows and doors: Consumers are in search of more sustainable and durable materials, and uPVC is fast becoming a popular choice. uPVC is water and pollution resistant, is recyclable and has insulation properties. It also has the capacity to withstand harsh weathers sound insulation, resistant to saltwater, and impact resistance, and has found to be useful in several other commercial applications. The residential sector in particular is increasingly warming up to using uPVC for windows and doors and there is a gradual increase in demand for these materials. The residential sector holds the key for the increased adoption of UPVC doors and windows. They are also a greener alternative, to traditional doors and windows, and they have very minimal maintenance. uPVC is hence becoming the favourite material for windows and doors, even in rural areas.

Overall 2022 looks very positive for the window and door market. However, even with positive demand forecasts and consumer sentiments, the growth of the segment can only be made effortless by putting more efforts into R&D and continuously innovating the product ranges. Supportive government policies, and interventions from related industry bodies is also critical. As the affordable housing segment has started picking up, provisions should be made policy-wise to maintain and fast track this growth. The pandemic saw the industry aggressively adopting technology in the business. Hence, for complete revival to happen there needs to be more product innovation. With automated windows and doors are already gaining traction in smart homes, more research needs to be done to understand the gaps in the market and tap into consumer pain points accordingly in terms of new technology innovations.

Ready-Mix Concrete is gaining prominence in retail construction sector

Home innovation trends to look out for in 2022

Practicality has taken over aesthetics on the home front in the last two years that have made hybrid work and study models the norm. Today, home innovation has taken the shape of a necessity. So, what are some trends that are here to stay, the ones you too should apply to your home to convert every nook and corner into an efficient one?

With the hybrid model of work and study becoming permanent, home innovation has become a necessity than a luxury. People today look for comfortable, multi-functional homes and the trends in this space reflect this sentiment. As an extension of this, the definition of home innovation is also broadening. In this article, we explore some of the trends that will take center stage in the months to come:

Focus on energy efficiency and environment-friendliness
There is a growing awareness and concern about the impact of climate crisis, prompting more and more people to take the sustainable way of living. They are seeking ways to reduce the energy consumption levels wherever required. The major ask from customers is how can they optimise the energy consumption irrespective of the changes in the weather. One of the most effective ways is opting for materials like Unplasticized Polyvinyl Chloride (uPVC) and aluminium, especially for windows and door systems. uPVC windows and doors have high insulation and can help maintain cooler indoor temperatures, while their aluminium counterpart has high thermal efficiency, thereby increasing energy efficiency. They are also an environment-friendly alternative due to their recyclable properties.

Another option that architects and builders are recommending these days is the usage of facades. This is an intelligent and cost-effective way to optimise natural light usage and make the structures more energy efficient and robust.

Smart homes and automation
It is impossible to talk about home innovation and not mention smart homes and automation. Today, it is no longer an excerpt from a science fiction tale, but a reality. Smart windows are amongst the most popular and the latest offerings in this segment. Smart windows let their users optimise the view in their homes and offices. These windows offer several controlling features such as opacity of the window, blinds etc., through a remote. Such systems provide convenience to the inhabitants.

Customisation
People today increasingly prefer products that allow them an opportunity to customise. They consider homes as a reflection of their personality, and as they are unique, so should be their homes. Further, they are also far more open to experimentation. With consumers’ growing interest and advancement in the building material industry, there is an increasing demand for customised building materials. Windows and doors today are available in a range of materials and colours. The possibilities of customisation are endless, even in the case of floor and wall tiles, thanks to digital printing technology.

Convenience and security
Today convenience is a crucial aspect that every homeowner is looking for. They are looking for homes that offer them a sense of comfort and calmness, which is also reflected in their choice of building materials. Customers now desire bigger and sleeker doors & windows as they allow more light to come inside the house. They are also looking for slide and fold doors because they consume less space and provide more room for movement. Another model that is gaining traction in the door segment is the zero threshold sliding door system. They make access and movement more convenient. These systems focus on providing convenience and are safe, as they are light yet sturdy. Additionally, these systems require significantly less maintenance.

Building or even renovating a home today entails using everything smart, from base materials to smart technology. Consumer preferences have shifted due to the pandemic, and building materials players are working towards fulfilling new demands and keeping up with upcoming trends.

Women’s Day: More women should venture into building material industry

“Growing up, I noticed a lack of women leaders in the real estate industry. It still is the same. The realisation that we don’t get to see many female leaders in this segment inspired me to learn and work more towards becoming one in the industry”, shares Aparna Reddy, Executive Director, Aparna Enterprises, in an exclusive interview with 99acres on the occasion of Women’s Day.

COVID-19 brought a setback for various industries and markets across the globe. For the management at Aparna Enterprises, internal and external customers have always been the utmost priority. During the pandemic also, providing their customers with world-class products and creating a growing atmosphere for their employees continued to be the focus. The last two years taught us the importance of a healthy workforce in any business environment. In such situations, regularly sensitising the workforce to prioritise personal hygiene proved critical for production and business continuity.

What inspired you to make a career in the building materials segment?
My biggest source of inspiration has always been my family. From a young age, I witnessed my father’s efforts to build Aparna Enterprises. He is a relentless learner and possesses sharp business skills. The efforts he took and the finesse with which he handled the business expansions motivated me to join the family business.

How has your professional journey been so far, and what delights you the most about your career?
It has been and is continuing to be an insightful journey. The work is exciting as the industry comes with its own set of challenges and benefits, which makes it very important for both – an individual and a corporation to stand firm on its core values. For second-generation leadership, adaptability and persistence play a vital role in shaping the future. Adaptability to understand the existing ecosystem first and persistence to stand afoot on the ground while required policy changes show its effect. Prioritising business & customers over everything else helps in keeping the focus intact.

What are the challenges you faced in the industry?
Every industry has some common and some unique set of challenges. I believe that these challenges help shape the company’s vision & future. The recent outbreak of COVID-19 pushed corporations across the globe and challenged their existence. It was nothing like we had ever seen before. We were challenged as both organisations and individuals. Organisations with firm core values and sensitivity towards their employees and customers overcame these challenges and sailed through such a difficult situation. Though the cascading effects of the global unrest are still troubling businesses, I am sure the economy will be back to its previous stage very soon.

What strategies did you adopt to tide over the crisis in the last two years?
We have always kept our customers as our top priority. We believe that if you present your customers with world-class products for their pressing needs and keep your employees focused, rest automatically falls in place. To achieve this proposition, we constantly upgrade our manufacturing capabilities to offer top quality products to the market. We also put constant effort into modifying the human resource (HR) policies. As we are a manufacturing organisation, taking care of our workforce is vital. This becomes more important as we are expanding our product manufacturing capabilities.

How do you maintain a work-life balance?
Personally, I believe that everyone has their unique way of maintaining a work-life balance, which suits their environment the best. Universally, it requires a lot of thoughtful efforts from any individual, such as taking breaks to be with family. Still, sometimes, it becomes all the more difficult for a woman for many reasons. De-stressing by indulging in a favourite pass time and staying away from work occasionally when possible can help everyone rejuvenate and come back with fresher perspectives and clearer minds. We all have our ways of managing tasks at home and work. The two aspects I consider most important are the constant prioritising of available short term and long term tasks and multi-tasking. I also enjoy spending quality time with family and my three kids.

Any tips for women venturing into the building materials segment?
The building materials industry is often dubbed to be unconventional for a woman. However, I believe that women should actively venture into the field and hold leadership positions. Women should always hold their heads high and prepare themselves to face the challenges life throws at them. Some women underestimate themselves, which keeps them from exploring their potential. We have to learn to break free of the stereotypes and perceptions and strive. While learning and expertise can be accumulated, we must first cultivate a fearless mind. Fearlessness coupled with a clear focus can pave the path for a bright future in any field of life.

What have you enjoyed most about your career?
It has been an exciting and insightful journey so far. Observing the organisation grow and contribute to the country’s economy has been the best outcome for me. There is always a sense of pride when we look at how far the company has come. Serving numerous customers within the country and across the globe with a quality product made in India always makes me feel proud. Being able to help and take care of our people and giving back to society makes you feel satisfied. There will be challenges, but the confidence that this organisation and the people around me have given will drive me to face them head-on.

With the right reforms, building material industry in India is expected to grow by 8%-10% in 2022 – States Mr Ashwin Reddy, Managing Director, Aparna Enterprises Limited

One of the industry having faced maximum impact of the pandemic in 2020, the building materials segment has displayed sheer resilience as it slowly bounced back in 2021. The industry regained its mojo at a steady pace. While initially in April & May, the second wave disrupted the momentum, from June onwards, the revival trajectory has been positive. This resurgence was further aided by the policy reforms like GST, RERA, REIT which were introduced to provide impetus to the sector. In 2022, provided the reforms like – Availability of housing loans to all segments (especially Affordable housing where the customer credit profiles may not meet standard financing norms), Long term funding support in case of long gestation projects and compulsory adherence to the contracts irrespective of political or policy changes, Continuation and further refinements in the tax sops available for housing industry and Recognizing Real Estate sector as part of Infrastructure, are introduced and financial impetus is provided to the industry, the sector is expected to show positive growth.

Today, the building material industry stands at around USD 225 Billion in terms of market size. The projected growth rate for 2022 is around 10%, and it is estimated to clock a CAGR growth of 8% to 9% in the next five years. In fact, sub-segment within this industry like Ready-Mix-Concrete, uPVC, Tiles are all gearing up for an exciting 2022.

The Ready-Mix-Concrete, uPVC and aluminium doors and windows, and the tiles segments are expected to recover and become stronger by gaining most of the pre-pandemic momentum back. The business and the demand looks promising. With people shifting to Work-from-Home/Hybrid working, and thus spending more time within the vicinity of their homes, there was an increase in the demand for building materials this year and this optimism will grow in 2022, where quality conscious customers will be further driving the demand and sales especially for high end products in these categories.

RMC demand in the retail segment is also expected to grow, given the increased construction of residential and commercial real estate projects. In the case of doors and windows, sliding & casement applications will continue to dominate the overall demand, given their superiority in terms of aesthetics, quality and functionality. Glazed Vitrified Tiles (GVT) are estimated to grow more in demand, due to their features like customisability and varied design options.

While demand forecasts and consumer buying trends look promising, this growth can only be made seamless by supportive government policies. There should be provisions to allow housing loans for all segments, irrespective of financial status. More often than not, affordable housing schemes and loans have to pass through tedious scrutiny because customer credit profiles may not meet standard financing norms. By introducing these provisions, surplus funds will be available in buyers’ hands thereby increasing demand. Developments in the housing sector directly impact the building materials industry, and by introducing norms that would enable greater investments and streamlining tax rates, the government would be bringing in a much needed relief for the segment. Giving real estate an infrastructure status will also boost the morale of the industry as a whole, and clearances will be faster. The scope for financial lending will also increase, thereby boosting completion of projects in the pipeline 2021 was also the year of aggressive technology adoption and incorporation. COVID-19 ushered in a lot of changes, both in work and home environments. From automating manual processes to leaning and incorporating new technology processes, the industry has undergone a huge paradigm shift. This is expected to strengthen further in 2022. Technology is going to continue playing a major role in 2022, especially with reference to home automation, and automation at work places. Innovations in building products like facial recognition, auto sensor lighting etc., are predicted to be some of the stand-out trends for 2022. Furthermore, products which intend to avoid human touch to prevent COVID spread, are anticipated to see an increase in demand.

The increasing cost of input materials is still impacting the overall demand and cash flow, the industry remains hopeful that the scenario will change and the coming year will see the prices and the situation stabilising.

Another key change the industry would witness is the shift to sustainability. With COP26 (26th UN Climate Change Conference of the Parties) making resolutions to fight the climate catastrophe, there is an increased focus on using and producing environmentally sustainable products, especially in the case of this industry. In 2022, the industry should attempt to minimise impact and use 100% recyclable products or eco-friendly products etc. wherever possible, for a sustainable future.

The RMC market is on its path to a steady recovery, says Ashwin Reddy, Managing Director, Aparna Enterprises

How is the market for RMC shaping up in India?
The RMC market is on its path to a steady recovery after the tumultuous first and second waves of the pandemic. The first lock down resulted in the stalling of all ongoing projects, construction activities had come to a complete halt. The initial period where everyone struggled to find a foothold amidst the pandemic impacted the industry significantly. Businesses were able to overcome the situation only after the lockdown was lifted, which led to the resumption of economic and construction activities across regions, and the building materials industry also got back on its track gradually. The overall demand is seeing an increase thanks to the resumption of construction projects across regions. Other construction activities are also resuming gradually. Government’s thrust on infrastructure development has also resumed and is helping the industry to recover the lost ground.

Which are the RMCs you have introduced in the market in the recent past? What is the USP of the RMCs?
RMC consists of cement as main ingredient with several other standard components – Aggregates, sand and water. What differentiates RMCs is different grades of RMC which is customised as per structure’s requirement. Aparna RMC offers concrete mix in different grades from M-05 to M-80. RMC is customised concrete mix which is ready to use at the construction site. RMC ensures constant ratio of various ingredients across different batches, to ensure uniform strength. For high rise buildings, the concrete mix is lifted through special pumps.

What are the innovations going on at your R&D to bring out strong and sustainable concrete?
We use state-of-the-art machinery to produce quality RMC across batches. Aparna RMC uses large storage bins to ensure uninterrupted supply. Aparna RMC uses Schwing Stetter equipment for production and batching. R&D is a constant activity to ensure usage of optimum cement quantity and other ingredients. A lot of research is done on a continuous basis for supplying self-compacting concrete used in high rise buildings

With stringent regulation in force for project completion, how are your RMC helping in faster completion of projects?
Continuous supply of RMC contributes majorly in timely completion of any project. We always map our production capacity with our customer’s requirements. RMC consumption has been increased at steady pace due to shift from traditional wall system (Bricks and Blocks) to concrete walls on account of increase in high rise buildings and strict timelines. RMC has various grades/design mixes which can cater to all the building concrete requirements. This is also one of the pull factor for RMC.

There are reports of building collapses during monsoon; being a leading RMC manufacturer what role RMC can play in protecting the building from collapse?
Building/structure collapse due to concrete mix is a very rare possibility. Building structure collapse happens due to faulty design of the foundation and unauthorized alterations to the structure.

How is the unorganized nature of the RMC industry affecting the organized players? Has the introduction of RERA and GST helped in expanding the organized players market share?
With the introduction of RERA and GST, majority of the project business is catered by organized RMC Players. However since the entry barrier is low, unorganized players are playing at considerably low product price for catering to the small & big projects.

How are you overcoming skilled manpower shortages?
One way of overcoming skilled manpower shortages is to up-skill the existing employees. The term however is not restricted to just technical skills, but it also includes skills like being mindful of safety, team work and mental health in the work place; everything that contributes to fostering a wholesome work environment. We continuously invest in training our staff on all important topics to increase their awareness.

What are the challenges faced by RMC players in India?
The pandemic brought about several disruptions in business continuity of building materials products. While business activities have resumed, certain factors continue to slow down the momentum and growth. A key factor that impacts the demand for RMC is the increase in the prices of raw materials. Fluctuation in cement prices is also a key factor impacting the industry. Rising fuel prices coupled with cost rise in the supply chain transportation are also aspects that influence the industry’s revenue and growth. Decline in availability of cash or cash flow also affects the demand-supply chain for commercial and residential constructions which has direct impact on the RMC industry.

Your take on the government policies and regulations and the tweaks required to propel the sector?
The building material industry is one of the largest employers in India. A key driver that enables the growth in this industry is the infrastructural development of the country. The government during its budget 2020-21, had proposed projects amounting to INR 105 lakh crores for the next five years, and had announced the fast-tracking of projects. However, there are certain pain points that require government attention, when it comes to infrastructural development in India. A few of them are; timely interventions and quicker clearances and approvals especially in terms of environmental clearances; adequate funding support from the banks and financial institutions. Long term funding support in case of long gestation projects and compulsory adherence to the contracts irrespective of political or policy changes; launch of projects like the Housing for All 2022 scheme, etc, will provide the much needed boost for the industry, as all these initiatives will need supplies of RMC.

Furthermore, all recent policy reforms such as GST, RERA, REIT, etc, are all aligned to strengthen the future of construction industry in India. However, vision and investment alone would not be enough to turn around this infrastructure dream into a reality; there are many planning, technical and financial oriented issues that needs to be taken into account and handled immediately and efficiently.

Lastly, what are your growth plans for your organization for the next three years?
Our aim is to further strengthen our market share and presence in the RMC segment. We are looking at utilizing our production capabilities to the fullest and increase consumer base in both project and retail segments. We are also increasing the number of RMC plants to have greater coverage of the market.

Infrastructure development to boost demand for RMC

Sustainable building practices, aided by green building materials is imperative to tackle climate challenge

T Chandrasekhar, director-technical, Aparna Enterprises, wants to help the cause

The COP26 (26th UN Climate Change Conference of the Parties) saw key resolutions being made to fight the impending climate catastrophe that is looming over the world. To achieve the goal of cutting emissions by 50% by 2030 and reaching net zero by 2050, the building materials industry has to switch to greener alternatives, and the change has to happen now.

While the goals have always been clear, the big question was always “how”? For years, real estate, and particularly the building materials industry operated in a very traditional manner. In order to reduce emissions, and the damage it can create to the environment, the industry also has to reduce the wastage of the base raw materials. Reports indicate that developmental projects are responsible for almost 50% of raw materials consumed globally. For the industry to effectively aid in the decarbonisation mission, the key objective would be to switch to the immediate green alternative available and move upwards from there. While a complete, radical change seems far-fetched due to the current landscape of work, there are some steps that can be taken to aid this change:

*Efficient use of Exterior Façade: Big and small residential and commercial structures struggle with managing the energy efficiency of the building. A thoughtful use of exterior facade helps in managing both optimal heat transfer and sufficient natural light to manage energy efficiency inside the space and reduce energy bills. Building glazing can have different levels of tinting and reflectivity in order to deflect external heat and help improve the energy efficiency of the building.

*Switching to M-sand, from natural sand: River sand is an important part of the concrete mix as it helps in binding all the other elements in the cement mix. The construction process cannot be completed without the sand component. For years, illegal mining and excessive extraction of sand from the river beds has caused massive environmental damage. Manufactured sand (M-Sand) is a better alternative to river sand and is equally suitable for all construction activities. It is also cost-effective, so on one hand, it saves the environment and discourages the illegal trade of sand and on the other hand, it reduces the overall cost of construction

*Windows and doors made of Aluminium and uPVC: A critical step to aid in the process of de-carbonization is to cut down on the usage of wood. uPVC and Aluminium both are a greener alternative to traditional wood for windows and doors. They are completely recyclable, require less maintenance, and stay strong for years. Furthermore, uPVC and thermal break aluminium profiles do not conduct heat, so, when combined with proper glazing they can help in reducing heat transfer inside the space and in turn, increase the overall energy efficiency of the structure.

*Utilizing technology and available resources to transform manufacturing of building material: Just like the construction of a structure, much efforts are seen in revolutionizing the manufacturing process of building materials. For example the kilns which make beautiful tiles consume huge amount of energy to complete their task. Many organizations have switched to Natural Gas to fuel these kilns instead of traditional options.

*Adopting greener practices during the design process: Architects and designers today are mindful in their work and ensure that efficient use of natural resources like light, air, water and space are kept on priority. While these resources are getting scarcer by the day, their efficient utilization and conservation is pressing need of the hour. Concepts like rainwater harvesting, sewage water re-cycling for gardening, smart lighting, smart glass are widely used in projects now to make a structure friendly for both – its inhabitants and the environment.

There are still miles to go to reverse the harmful consequences of human actions on the environment. The immediate action point here would be to implement ways to limit the environmental impact during construction and other developmental projects. Quick sanctions by governments and regulatory bodies, usage of good quality materials, and a willingness to adopt emerging sustainable practices is the key to this. This decade is the most crucial to action out the plan to keep global temperatures in line with the agreement. All of us, right from the corporations to the government, to the people need to work together to build a resilient future for the generations to come.

Category: Media