The present and future of ready mix concrete industry

by Ashwin Reddy, Managing Director, Aparna Enterprises

The Ready Mix Concrete market has undergone a journey of resilient growth over the past two years. Operations albeit were little slow, the industry has picked up pace particularly in the last couple of months. The scenario as compared to 2020 is completely different, and it is indeed a welcome change. According to industry reports, the ready mix concrete market is set to record a growth of around 11.6 % in 2022, and all players in the market are eagerly anticipating the complete comeback of the segment.

Thanks to the increasing residential projects, and strong government interventions, RMC in particular is a material that has seen a significant rise in demand. The COVID-19 pandemic solidified the importance of owning a home, in the minds of the consumers. Real estate activity has been steadily growing, and as an extension of it, so has the building materials/ construction segment. The biggest positive here is that the demand has started to match the pre-COVID levels; something that seemed to be an impossible feat a year ago. Government interventions are also central to the boosting of the demand, and the Indian government, in the wake of the pandemic has made efforts to improve the liquidity in the eco-system and even invest in development projects like the “Housing for all scheme” and the Smart Cities scheme to name a few. A significant portion of this demand is also expected to come from the construction of mega office spaces, a trend that has already started owing to the transition from work from home to work from office. COVID-19 has brought significant changes in the design of new developments in the seating layouts, additional facilities for the employees. Technology is also introduced in a significant way.

The future however doesn’t seem too bleak. There is hope and there is potential demand that is forecasted to provide a much needed boost to the RMC space. Things have actually started moving, and the industry is no longer in a slump. The launch of new projects from the Government’s side does give great expectations to the industry. However, the actual impact would become clear in future when these projects are rolled out and when the expected demand is actualised. Several projects that were stalled have been green-lit now, and the road to recovery is becoming a lot clearer. Perhaps the biggest silver lining currently is that the RMC industry is resilient in nature and takes very less time to resume the supply. The consistency, quality and the ease with which RMC can be delivered is unparalleled. As a bonus, it is also an environment friendly alternative, a critical quality, especially at a time when the environment is facing a global crisis. 2022 comes with a galore of opportunities and it becomes vital now more than ever for players to capitalise on this and strive to build an ideal economy.

While the scenario has been largely positive, there are a certain number of challenges that needs to be addressed. The lack of standardisation, overall in the industry is an issue that though is gradually being addressed, but there is still a long way to go. In order to achieve the process compliance and meet the quality checks, and the global industry standards, a unified system needs to be in place. The lack of entry barriers in the space is also a matter of concern. There is a need for uniform quality standards, to make mandatory and highest level of certifications for the plants and products such as ISO, ISI etc. which may help the industry to become more organized.India’s Ready-mix concrete (RMC) market is set to register a CAGR of more than eight percent during the forecast period of 2021-22.

RMC will continue to nurture capabilities towards infrastructural development

Fenestration is an integral part of any residential or commercial structure

Rising energy & material costs and sensitivity towards the environment have increased the importance of fenestration more than ever before, says Aparna Reddy, Director, Aparna Enterprises Pvt. Ltd.

Are the fenestration techniques of traditional Indian architecture useful in contemporary times?

The traditional Indian architecture involved fenestration to improve ventilation and lighting by letting the natural air and light inside any given space. However, the objective of fenestration has entirely changed in current times. Nowadays fenestration is aimed at increasing energy efficiency inside the space and reducing energy bills. While we still need the natural light to come inside the given space, we also need to maintain temperature inside the building/house. Advent of technology has enabled sustainable and green materials for this purpose which were not available in traditional times.

How has fenestration become an important factor in sustainable building design?

Fenestration has always been an integral part of any residential or commercial structure. Rising energy & material costs and sensitivity towards the environment have increased the importance of fenestration more than ever before. In addition to this, advancements in technology have facilitated materials which can help in reducing carbon emissions and increasing energy efficiency of the building, making it an important part of any construction.

What kind of fenestration is desired to reduce lighting and HVAC cost? What should be the corresponding R-value and U-value of the doors and windows being used?

Type of fenestration depends on the role and objective, for reducing the heat admitted into the building, glass with a lower solar heat gain coefficient (SHGC) should be used. If heat reduction is primary, we have to compromise on light transmission. Hence it is a tradeoff between the two characteristics and it is difficult to specify a certain number or percentage.

For reduction of heat, reflective, tinted and thicker glasses will help. Reflective glasses control solar heat by reflecting it outside. Tinted and thicker glasses absorb more heat but subsequently reradiate the heat outside. U-value is a non-solar heat measure and is the heat transfer coefficient. If the window system has low U-value, it will transmit less non-solar heat. R-value is the reciprocal of U-value, and a high R-value indicates less heat transmittance. While specifying a frame material (aluminum/UPVC) or glass (SGU/IGU/Laminate), it becomes necessary to prioritize between lighting, heat gain and acoustics.

When it comes to choosing uPVC or Aluminum windows for mass consumption properties and individual properties, what are some of the pointers to be kept in mind?

Due to their robust and easy usability nature, both uPVC and Aluminum have come up as preferred material for window and door needs in current times. However, the production, extrusion and installation of both these materials includes many technical aspects which end users might not be aware of. These technical aspects though not visible from outside, have huge impact on the longevity of the end product, hence it becomes important that these materials are purchased from a trusted and reliable vendor. Opting for end-to-end system integrators brings peace of mind for end consumers as these vendors take care of extrusion and installation along with warranty for their work done. Since these windows are highly customizable and durable, the application and purpose of window or door should be well thought in advance. For e.g., if prevention from mosquitoes is important then a separate track or panel should be planned for mesh shutter, glass configuration should be thought of in advance based on required energy efficiency inside the space etc.

Technology adoption in Building materials industry by Mr T Chandra Sekhar, Director – Technical, Aparna Enterprises

For over a decade now, adoption of technology has been the core focus of industries all around the world. The million dollar question they face is “How to adopt technology practices that would suit their ecosystem?” Digitisation and automation are no longer futuristic concepts and have become imperative part of industries.

Even the building materials industry is no stranger to this paradigm shift. The industry which traditionally has been highly dependent on manual labour, has also been significantly adopting new age technologies to optimize production, maximize output and create seamless manufacturing process. Let’s take a look at some of the key areas where technology is re-defining the building materials industry:

Artificial Intelligence and Robotic Process Automation in the manufacturing and packing process of tiles:With artificial intelligence being incorporated into the production process, long repetitive tasks have been automated and the productivity has also improved. Many companies are completely automating the processes like mixing raw materials, cutting & polishing tiles and segmenting & packing tile units; all of which used to be manual once upon a time. This is not only efficient but it also ensures uniform quality across products. Introduction of digital printing technology in tiles has expanded the range of designs that can be produced. This advancement also leads to client satisfaction as this enables tile manufacturers to print designs their customers want, while retaining important features and properties of the given tile. The incorporation of nanotechnology in polishing has enabled tiles to look shinier, and has improved its surface consistency and durability.
The automation of the production process of Ready Mix Concrete (RMC):Cement mix is the foundation of any construction process; both literally and figuratively. Most RMC plants today are fully computerised, completely armed with precise and automatic processes to produce the highest quality cement mix in large amount of batches. Perhaps the most practical application of technology in this segment would be the customization of moisture ratio in the cement mix and transportation of RMC. In the past, mixing of cement and the transportation of this cement to the higher floors was a laborious and time consuming process. Thanks to the highly efficient pumping technology today, the transportation of the cement mixture is a productive, efficient and automated process.
Use of advanced German and Italian technologies to manufacture doors and windows Technological advancements are also slowly bringing international standards to the manufacturing process of raw materials. Especially in the case of uPVC and aluminium. uPVC and aluminium are the most sought after materials for windows and doors today. Not only are the windows and doors made of these materials totally recyclable, but they are also manufactured with absolute precision using advanced German and Italian technologies without a lot of human intervention. This brings in many benefits like more room for customisation, a more uniform finish in the look and feel of the products, enhanced durability and quality, the ability to experiment with designs and efficient locking systems.
Use of technology to improve the quality of raw materials:Good quality raw materials provide the base for every great product. Raw materials are the core, and hence their quality becomes critical. Adoption of technology and enabling of automation has made companies immensely improve the superiority of the raw materials that they use. An example of an efficient application of technology and automation would be the new machines equipped with automation technology that produce and sort Crushed Rock Fines and Manufactured Sand. Manufactured sand is a cost effective and efficient alternative to river sand. As an added bonus, it minimises environmental impact and saves the river beds; all the more reason to adopt new and efficient technology.

The building materials industry is swiftly striving towards adopting more technology practices today. As the industry largely depends on manual work force, the disruption in operations due to ongoing pandemic served as an example and emphasised the need to be technologically adept and future ready. More and more companies today are realising that augmentation and automation are the way forward and these will soon become critical for business continuity for building materials segment.

Building Human Capital: The Upskilling Picture

It is important to note that upskilling does not just involve technical skills, but it also includes skills like safety, teamwork and mental health in the workplace; everything that contributes to building a holistic work environment that fosters growth

We are at the cusp of the second wave of the COVID 19 pandemic and the resultant partial lockdowns across states. However, the impact on industries has not been as adverse as the first wave which has caused a complete shutdown of operations. Last year was a learning experience for industries like the building materials segment, especially from a workforce point of view as this sector is fundamentally shy of virtual working or hybrid working and requires on-ground presence. The need of the hour thus was to ensure that the talent is up-skilled to stay relevant to the new world of work, especially w.r.t digital skills, niche domain expertise, managing teams virtually, behaviour skills, among others.

Today the industry is better prepared for unprecedented events, constantly innovating on all fronts. Up-skilling and reskilling has become an indispensable part of the sector’s work culture. Here are the four key areas where up-skilling efforts have been rampant:

Technology is the god of all skills today: Traditionally the skills used in building material industry involved manual labour extensively. The precise execution of a project relied on the dexterity of the workers, and it required large amounts of physical labour. However, today, this trend is going through a paradigm shift, and it is being replaced by employees who possess skills based on the accurate use of modern and growing technology. It has now become important for employees to learn how to implement and operate machines with advanced technology, and the only way to do that is through upskilling.

Staying relevant with changing times: The COVID-19 pandemic and the rules of social distancing that comes with it, has changed the way factories and manufacturing units operate. This shift is most likely to stay permanent even when the pandemic is over. Some of the job roles are also seeing some strategic shifts, especially from a digitization point of view. Upskilling and reskilling efforts have significantly increased on this front to better equip workers to stay ahead of the curve and stay relevant.

Behavioural skills and mental wellbeing is crucial as well: Today only digital and domain skills are not enough, companies are also focusing on hiring talent with behavioural skills like team management, soft skills, presentation skills, communication skills, managerial skills etc. This is also in the building materials industry. In the current scenario training people for mental wellbeing has also become important and many companies in this segment are empowering employees and workers to manage their work and mental wellbeing by introducing different programs and initiatives.

Hybrid workforce requires hybrid training methods: This sector employs both white-collar and blue collar workforce and hence one suit that fits all for up-skilling is not suitable to meet the requirements. It is important to identify and work on different training methods, tailored for different employees. There are differences in the training needs for a corporate employee and a factory employee. For instance, training on topics like fire safety, road safety are suitable for factory workers and RMC truck drivers, whereas training on topics like team work, emotional intelligence, conflict resolution sessions is advisable for corporate office employees, and on soft skills sessions for the sales teams. It is important to note that upskilling does not just involve technical skills, but it also includes skills like safety, team work and mental health in the work place; everything that contributes to building a holistic work environment that fosters growth. Setting up a round-the-year training calendar for employees is crucial to ensure that the right kind of skills are built through the year.

The building materials industry is estimated to record a CAGR of 15% and reach INR 29,782.2 billion by 2024. Owing to the COVID-19 pandemic, growth may have slowed down to some degree but with the right impetus like the boost to the affordable housing segment, government’s push towards infrastructural development, and the growing real estate segment, building materials industry is expected to bounce back with rigor in no time. To aid this recovery and growth, having the right skilled talent will be crucial for organizations. And thus, companies are likely to increase their efforts as well as investments into skilling their employees and building a strong human capital pipeline

(The given article is attributed to Aparna Reddy, Executive Director, Aparna Enterprises and solely created for BW People)

Post COVID-19: Key challenge before the building materials industry

Despite short term challenges such as demand volatility, labour migration and reducing profit margins, the building materials industry is trying to get back on the growth trajectory in the post-Coronavirus scenario.

The building materials industry has become a symbol of resilience in terms of recovery and growth during the COVID 19 pandemic. While the initial days of the lockdown pressed for some challenges in the sector, the industry has been able to withstand most of the upheaval during the first and second waves.

Currently, the sector is regaining its mojo, especially powered by a boost in infrastructural development. In the current scenario and for a stronger post COVID world, some of the key challenges that companies in this sector will have to overcome in order to sustain their growth are:

Bringing back the migrant workforce:

Migrant labourers form a large part of the industry’s workforce. Many chose to return to their hometowns during the pandemic due to the nationwide lockdown last year, followed by the partial lockdowns this year.

The reverse migration of labourers both during the first and the second wave has significantly impacted the industry. The result is a temporary shortage of labour which has interrupted production capabilities. One of the major tasks for companies in the sector will be to get the workforce back on track so that operations can continue seamlessly.

A volatile demand cycle:

Another main challenge is that demand has been very unprecedented in the last few months. Due to the pandemic, retail customers have become a lot more sceptical of engaging with sales teams. Even from the real estate industry, the demand cycle has been abrupt as most players had to pause construction activities due to the pandemic.

Extension of sales cycles:

Like all sectors, the changes in the ecosystem has impacted the building materials industry. The economic uncertainty that the pandemic has brought about, and the temporary scarcity of manpower, have led to a delay in the decision making, especially at customers’ end. Apart from this, several new project launches have been delayed due to the intermittent lockdowns that are being imposed in states. What this means for the building materials industry is that the overall sales cycle duration has increased.

An adverse impact on profits and ROI:

The pandemic has also exacerbated inflation due to the fluctuating demand-supply cycle. As a result, the cost of input materials such as cement, petrol, diesel, to mention a few, has been on a constant increase, especially during periods of lockdown.

The scenario becomes such that, post lockdown, resuming the supply of finished material to projects at pre-agreed rates is becoming tough. The revenue from a project is also stuck if the project gets stalled, and this impacts overall profits and ROI.

Across all industries, it is becoming clear that we await a whole new world once we reach the post COVID stage. The building materials industry is currently estimated to record a CAGR of 15 percent and reach Rs 29,782 bn by 2024, a figure that may have slowed down due to the current pandemic.

However, things look good for the industry despite these challenges, as factors like the boost to the affordable housing segment, Government’s push towards infrastructural development will become key to the sector’s recovery. As infrastructure development is an important catalyst to economic recovery, companies in this sector are on the road to bounce back in no time. Further, making certain foresighted strategic approaches can also go a long way in helping the industry to get its agility back.

This article is contributed by Mr. Ashwin Reddy, Managing Director, Aparna Enterprises Limited.

Why uPVC windows and doors work best for South Indian homes

Mahesh Choudhary, CEO, uPVC division, Aparna Enterprises, lets us in on a few facts

Picking out the right windows and doors for your ideal home might look like a herculean task, given the vast choices that are available in the market today. While windows and doors are the central accessories to any home, it is important to consider factors like compatibility of the material with the climatic conditions of the region and the quality, along with its aesthetic appeal. In India, not only culture varies from region to region but the climatic conditions also are different in several regions, and hence the materials that work in each region also differs.

South India, in particular, is a tropical region with intense summers and heavy rainfalls. In such weather conditions windows and doors made of uPVC (unplasticised polyvinyl chloride) would work better compared to traditional materials, as they are sturdy and can withstand intense temperatures and different climatic conditions. Investing in uPVC is highly recommended, as it is not only durable and requires least maintenance but it also provides great insulation from heat, sound and air pollution.

Using uPVC windows for homes in South India is power packed with a bunch of positives like:

*As you like it: The best thing about uPVC windows and doors is that they are not restricted to one specific shape, color or size. They can be customized according to personal preferences. The choice is entirely with the customer.

*No heat trapped: Summers can be intense in these regions, not to mention all the humidity and heat. Stuffy homes due to heat being trapped indoors is the last thing anyone would need on days like those. Thanks to their composition and build, uPVC windows and doors are eco-friendly and energy efficient. They have high insulation and hence can help maintain cooler indoor temperatures. As an added bonus, this also greatly reduces energy consumption and cuts down electricity bills up to 30%.

*Say no to water seepage with uPVC windows and doors: The monsoons, while scenic can be very heavy in South India. Water seepage through windows that are made of traditional materials would contribute to their decay and develop fungus on walls, and an overall damp environment in the long run. uPVC windows and doors provide protection against this. These windows and doors are built to prevent water seepage, as they come with shutters that have in-built drainage systems. This prevents water stagnation. This protects not just the windows, but also the elegant walls inside.

*Adding a mosquito mesh to uPVC windows and doors: It is impossible to talk about monsoons and not talk about the mosquitoes that come with it. With uPVC windows and doors being customizable, a mosquito mesh can be included and mosquitoes and other insects can be kept at bay, while retaining the refreshing monsoon winds.

*Wind-resistance: South India is home to bustling metro cities with tall buildings and also quaint coastal areas. uPVC windows and doors are wind-resistant thus making it suitable for high velocity winds irrespective of the type of the building or where is it located, tall buildings or coastal area. This also helps in avoiding rattling or whistling noises. Certain brands in the uPVC segment also offer windows that come with hurricane bars for added strength.

*Noise-resistance: The life in cities in the south is fast paced, complete with ample noise from traffic and the everyday hustle. For homes that are in the middle of all the hustle, high performance uPVC window and door systems would be the best choice. These help cut out outside noise considerably, thus ensuring that the indoors remain considerably picturesque and calmer.

*Corrosion proof: The materials used in uPVC windows and doors makes them durable. As a result, they do not decay or lose their original properties even after several years. uPVC windows and doors dos not chip or corrode and as a result, last for years without the outside peeling off or the material drying out. They have the ability to withstand damage from winds that carry sand and salt, which erode other traditional materials like timber, and wrought iron.

*Safe and sturdy: uPVC windows and doors provide strong security to one’s home. These windows and doors are airtight, hence they improve air and noise insulation indoors. They have single or multi-point high-security locks that are attached to the window frame which offers a good deal of security. The presence of the strong layer of galvanized steel, makes it very hard for them to break into.

The other best part of uPVC is the eco-friendliness and the recyclability of the material. They can be recycled for up to 10 times. These doors and windows live for decades due to their sturdiness and durability and last for 40-80 years, and are made from recyclable materials that don’t harm the environment. The demand for uPVC will only go upwards from here and it is fast becoming the builder’s choice. Look no further if you want a beautiful, secure home; uPVC windows and doors would be the safest bet for you.

Aparna Enterprises to Invest 100 Crores inAlteza Brand in Next 4 Years

Leading building materials player, Aparna Enterprises Limited today announced their plans to invest INR 100 crores towards building its aluminum window and door system brand Alteza in next 4 years. The investments will be used for strengthening its product portfolio as well as manufacturing facility, marketing and retailing. The occasion also witnessed launch of their latest range of slim aluminum sliding door system – ACA M-19 Series. The system works on very narrow sightlines and is the slimmest aluminium sliding door system that Alteza offers to its customers. This unique system is based on minimalistic design, which offers 19 mm of thin aluminium profile throughout the door opening including the interlock, and the system can be used for corner openings as well.

Commenting on the plans for Alteza, Mr. Ashwin Reddy, Managing Director, Aparna Enterprises Limited, said, “Aluminum window and door system market in India is close to INR 20,000 crores and it is growing at a CAGR of 7.9%.  There is a growing demand for quality products as well as services and we are gearing up to address this demand. From the 100 crores, 60 percent of the funds will be directed towards strengthening the manufacturing capacity and the rest towards research & development and building our dealership network. To complement this growth vision, we are also planning to strengthen our team. We plan to hire more than 100 people by the end of 2021 and majority of this will be in Telangana. We are optimistic that Alteza will capture 8-10% of the organized aluminum door and window market by 2025.”

Launched in 2019 Alteza has wide range of aluminium window, door and railing systems. With Alteza ACA M-19, the brand will be further strengthening its foothold in the growing premium aluminum window and door systems market. The new system ACA M-19 is the slimmest sliding door system from the house of Aparna Enterprises. The system comes with a slimmer interlock and reverse interlock of just 19 mm as compared with 40 mm in standard sliding door systems. The ACA M-19 system can manage single panel of 6.72 M2 dimension and can manage single panel weight of 300 kg. The elegant system with thin profiles will enable consumers to have more light that can come inside the home and views of the outside are less inhibited. Slimmer interlocks are also considered attractive and show resemblance to a contemporary appearance.

The Indian building materials industry is evolving

Today the building materials segment in India is pegged as a USD 225 billion industry. Industry experts predict a strong recovery rate for the construction and building materials sector through FY2021-22, buoyed by the Centre’s focus on expediting infrastructure development.

The building materials industry is one of the few expected to regain momentum in leaps and bounds through the ongoing financial cycle. It has the potential to witness a growth rate of around five percent to 10 percent by 2022. Even the Ready-mix Concrete (RMC) sector, a critical part of the building materials industry, is expected to register a Compound Annual Growth Rate (CAGR) of more than eight percent in the next two years. Much of the growth will be fuelled by the industry’s focused push towards supporting infrastructural development.

A lot has changed in the sector in the past decade, which has supported the segment’s resilient growth trajectory. Here are some of the significant shifts that have impacted the industry positively and are worth taking note of:

Increased adoption of technology across verticals

The sector fundamentally has been very mechanical and workforce dependent. However, over the last few years, there is an increased shift towards the adoption of technology to improve quality, product shelf life, employee productivity and overall output. From a quality point of view, the concrete mix used in construction has heavily adopted technology, especially for automatic mixing of RMC (instead of traditional manual mixing), pumping RMC to high-rise building structures, maintaining durability via the use of mixers.

Even for the tile manufacturing segment, technology has taken the front seat, especially with the introduction of digital printing on tiles which has opened new avenues and choices for consumers. Additionally, in the uPVC segment, technology has been extensively used to increase the production capacity while enhancing product quality and finish.

Becoming more environment-conscious

Sustainable building practices is the need of the hour, given the turmoil that our environment is going through. The industry has become more sensitive and is adopting better practices for manufacturing building materials. One of the major developments in the shift towards the use of manufactured sand in construction instead of organic sand to avoid further depletion of river beds.

Policy changes driving a positive change for the sector

Over the last five years, the eco-system has witnessed multiple policy reforms like the introduction of RERA, affordable housing and Make in India, which in turn has boosted the demand for building materials providing the industry with the needed impetus for growth.

Increased focus on infrastructural development

Taking a closer look at the major budget allocation over the last decade, it is evident that infrastructure development has been the focus of the government as well as the industry. The dedicated push towards PMAY, affordable housing projects, road, railways and airport infrastructure development have all been contributing to increasing demand and will continue to do so in the near future.

Setting new benchmarks during the global crisis

One of the most striking shifts in this industry is the way it has managed the workforce over the last year during the COVID-19 global pandemic. Nearly 100 percent of this industry is used to the traditional methods of working and workplace policies, but the lockdown pushed the sector to relook at workplace strategy and enable a more hybrid form of working overnight. The resilience that the sector has shown requires will set the tone for defining the future of the workforce in this industry.

Despite the ongoing challenges, days ahead for the industry look very promising, provided organizations address the pandemic challenges most effectively and appropriately, keep up the workforce’s morale, and continue adopting best practices to optimize growth, quality, and brand value.

This article was contributed by Ashwin Reddy, Managing Director, Aparna Enterprises Ltd.

TekTalk with Mr. T Chandra Sekhar, Director-Technical, Aparna Enterprises Ltd

TekTalk with Mr. T Chandra Sekhar, Director-Technical, Aparna Enterprises Ltd, on the growing demand of uPVC windows & Doors profiles in the market. He also spoke about the various building-material products that Aparna Enterprises offers to its consumers. , Mr Chandra sekhar enforces on delivering high quality products to the customers as a long term strategy.

Watch the full interview at https://www.youtube.com/watch?v=VYGHURXSY8k