A number of ancillary industries of real estate are treading the path of recovery, while the construction and building materials sector is past this stage and posting growth numbers. The year 2021 is going to be a calendar year for the sector in terms of expansion and innovation driving new trends.
With the Coronavirus weighing heavily on economic activities and consumer sentiment in India, 2020 had been a year like never before. But the economy seems to be bouncing back. According to several forecasts with a lower base and lower labour costs, the construction industry is expected to post a sharp rebound and grow by at least 11.6 percent in 2022. This is especially highlighted by the Asian Development Bank, which states that India will make a strong rebound in the fiscal year 2021-22 with its Gross Domestic Product (GDP) surging by more than eight percent as mobility and business activities resume widely.
Subsequently, India’s ready-mix concrete market is expected to register a CAGR of more than eight percent during the forecast period. The major factors driving the growth include an increase in the investments and development activities in the construction sector and the growing consciousness to be more responsible for the environment. The use of ready-mix concrete in modern constructions is an environment-friendly choice. It provides building owners with energy-efficient buildings by combining isolation with high thermal mass and low air infiltration. In addition to these factors, the growth in the ready mix concrete is aided by the fact that India is expected to see a rise in Foreign Direct Investments, leading to an increase in construction activity and acting as an opportunity for the market the future.
Similarly, tiling is another building component that is expected to see some positive momentum this year. The need for increased construction and renovation of homes is driving the need for tiles. A considerable amount of growth in the floor and wall tiles market is due to the shift in the consumer preference towards vitrified tiles. The government’s push to housing for all by 2022 is also enabling a positive drive in the Indian tile market, alongside the boost from the ‘Make in India’ initiative.
In today’s times, convenience is the most important norm. Unplasticized Polyvinyl Chloride (uPVC) doors and windows are fast becoming the sought after purchase decision when it comes to building construction. These doors and windows do not require any repainting and extensive maintenance. In fact, the Indian uPVC window and door market was estimated at USD 1,071 million in 2018 and is predicted to reach around USD 1,810 million by the end of 2025, growing at a compound growth rate of 7.84 percent during 2019-2025.
While the above factors give a perspective on the industry’s potential, the industry and the companies in the sector to leverage the opportunities will require more strategic efforts at the organisational level. And hence one of the notable shift in 2021 will be internal. 2021 will witness organisations going all out to maintain positive sentiment amongst employees. Companies will have anot just to adopt new ways of work, they will have to be equally agile to what the future awaits. The pandemic has taught many traditional industries like manufacturing, and building materials to be accustomed to innovative and flexible ways of working and this learning is paving the way for the future of work.
This article is contributed by Mr. Ashwin Reddy, Managing Director, Aparna Enterprises Limited, for 99 acres.