Asia Summer School: India Materials

Research evidence excerpt

Asia Summer School: India Materials

FoundationM

Building Materials: Multiple structural drivers support medium-term industry demand growth

Estimated Medium-term

Segment Key Demand Drivers Industry Dynamics Medium-term Growth Outlook

TAM (Rs Bn) Positioning

Industry volumes likely to be the strongest among major building-material

Housing, w ater infrastructure, irrigation, Consolidating market; CPVC market categories, supported by housing, w ater infrastructure, irrigation and replacement

Pipes & Plumbing ~550-600

sanitation, replacement demand, urbanization relatively organized demand. Profitability should remain healthy once resin prices stabilize, although

inventory effects can create quarterly volatility.

Low -double-digit volume grow th supported by penetration, renovation,

Housing completions, renovation, Highly fragmented; organized

Consumer Adhesives & w aterproofing and greater use of specialized products. Strong product

~350-400 w aterproofing, modular furniture, tile fixing, players continue to gain market

Construction Chemicals differentiation and relatively resilient pricing support the most resilient profitability

premiumization share

profile.

Furniture, modular kitchens, w ardrobes, High-single to low -double-digit volume grow th, led by MDF and organized furniture

Fragmented w ith increasing

Plyw ood & Panels ~500-600 interior fit-outs, renovation activity and production. Profitability remains healthy in plyw ood, w hile MDF margins could

organized share

premium housing remain cyclical as new capacity is absorbed.

High-single-digit volume grow th supported by housing completions, renovation

Housing completions, urbanization, bathroom and premiumization. Profitability is relatively stable, although demand is more