Building Products Buzz by ValueNotes

Logo June 2016
Issue #1
Building Products Buzz by ValueNotes
ValueNotes Editorial

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The Indian economy is plagued by over-capacity, which is impeding investment demand. However, this does not seem to apply to building material/product companies. A wide variety of construction input suppliers ranging from tiles, elecrticals, paints, sanitary ware, doors as well as elevators have planned capacity expansions in anticipation of future demand.

The planned capacity expansions come in light of the strong Q4 results posted by most building material companies across all the segments. We believe that an increase in adoption of new technologies and materials which have been introduced by these companies in new constructions along with a demand for high value materials in the form of replacement demand is driving the growth for these companies.

Q4 results in the cement and concrete sector have been better; we believe that the revival of stalled infrastructure projects, increase in government efforts to boost rural incomes and amendments to the MMDR Act will help bring about a turn around in this sector.

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Industry News
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Despite slowdown in real estate, building material companies gung-ho about growth - capacity expansions planned across various segments

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Strong Q4 results witnessed across most building material companies

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State governments take steps to curb air pollution from traditional brick kilns; fly ash bricks the suggested greener alternative

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Green shoots seen in the cement sector due to rising demand from infrastructure and rural housing and favorable policies

Insight
The Indian waterproofing products (non-traditional) market is currently valued at
~INR 2,600 crore and is expected to grow at a CAGR of 20% over the next 4 years. Our infographic this month details out the waterproofing products market split by urban and rural housing in India.
Click here to view the infographic >>
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Case study

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A leading Spanish manufacturer of clay roof tiles had heard of the rising opportunities in India. In order to explore the opportunity, they wanted to get a detailed understanding of the roof tiles

market in India and identify potential and premium distributors interested in partnering with them. They found virtually no information on the roof tiles market in the country through secondary sources.

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Industry events
Upcoming events:
  • DICE (Design, Interiors, Construction and Engineering) Exhibition 2016, Mangalore, 11th-12th June 2016
  • OSH (Occupational Safety & Health India Exhibition and Conference) India Exhibition and Conference, Chennai, 9 & 10th June 2016
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