Knowledge Paper on Construction Chemicals as Enabler for...

48
Knowledge and Strategy Partner National conference on 2015 th 8 May 2015 Federation House New Delhi 6 th th Knowledge Paper on Construction Chemicals as Enabler for Smart Cities

Transcript of Knowledge Paper on Construction Chemicals as Enabler for...

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Knowledge and Strategy Partner

National conference on

2015th8 May 2015

Federation House New Delhi66

thth

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

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Knowledge and Strategy Partner

National conference on

2015th8 May 2015

Federation House New Delhi66

thth

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

Page 3: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

Knowledge and Strategy Partner

National conference on

2015th8 May 2015

Federation House New Delhi66

thth

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

Page 4: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

Federation of Indian Chambersof Commerce and Industry

Federation HouseTansen MargNew Delhi - 110001

: +91 11 23738760 (11 Lines): +91 11 23320717 - 23721504: [email protected]

CIN : U99999DL 1956NPL002635

T F E www.ficci.com

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Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

Federation of Indian Chambersof Commerce and Industry

Federation HouseTansen MargNew Delhi - 110001

: +91 11 23738760 (11 Lines): +91 11 23320717 - 23721504: [email protected]

CIN : U99999DL 1956NPL002635

T F E www.ficci.com

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Federation of Indian Chambersof Commerce and Industry

Federation HouseTansen MargNew Delhi - 110001

: +91 11 2335 7364: +91 11 2332 9369: [email protected]

CIN : U99999DL 1956NPL002635

T F E [email protected],www.ficci.com

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Federation of Indian Chambersof Commerce and Industry

Federation HouseTansen MargNew Delhi - 110001

: +91 11 2335 7364: +91 11 2332 9369: [email protected]

CIN : U99999DL 1956NPL002635

T F E [email protected],www.ficci.com

Page 8: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

Table of Content

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

I. Introduction to Construction Chemicals. . . . . . . . . . . . . . . . . . . . . . 3

II. Indian Construction Chemicals Market. . . . . . . . . . . . . . . . . . . . . . . 5

1. Market size and past growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2. Construction chemicals segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.5.1 Sealants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.5.2 Grouts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.5.3 Tile adhesives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3. Major players . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

4. Key challenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

5. Growth drivers and Future Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

6. Key growth imperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

III. Special Focus: Construction Chemicals: An Enabler For

Smart Cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IV. Corros

V. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

VI. Annexure I: Major Players . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

VII. About Tata Strategic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

20

ion Mitigation in RCC – State of

The Art Effective Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

VIII. About FICCI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Manish PanchalPractice Head - Chemical & Energy

Tata Strategic Management Group

[email protected]

Charu Kapoor Principal - Chemicals

Tata Strategic Management Group

[email protected]

FICCI & TATA Strategic Management Group has had the opportunity to work with several

construction chemical companies on various strategic business issues. The same knowledge

and experience has facilitated preparation of this report.

The construction chemicals industry will have a key role to play in the sustainable evolution

of the smart cities in India. Even though construction chemicals increase the cost of the

project by 2-5%, their benefits are multi-fold for e.g. they help in achieving higher

performance with lower lifecycle cost, in optimizing energy consumption and in controlling

the menace of corrosion. This has special relevance in present context when significant

importance is being given to infrastructure development of the country.

Indian construction chemicals market is still at a nascent stage as usage levels are much

lower compared to other peer markets due to limited awareness about the products and

their benefits as well as price conscious customers. However, the industry has showcased

significant growth in the last 5 years with new and complex molecules enhancing properties

such as strength, reduced water requirement, increased resistance to abrasion and corrosion

etc. Significant presence of global construction chemical companies in Indian markets have

further intensified the competition and boosted the market growth.

In future, changing dynamics of Indian construction industry and the plan to build 100 smart

cities are expected to significantly impact the construction chemicals market. Adoption of

international standards and increase in high rise buildings in Tier I cities will drive the usage

of admixtures and related construction chemicals in concrete. Corrosion prevention and

control is another area which will drive the adoption of construction chemicals. Going

forward, the focus will be on price to performance ratio and not price alone. Through this

report, we have attempted to highlight the key growth imperatives for industry players as

well as the regulatory bodies.

We sincerely thank all industry leaders whose valuable inputs have helped in building this

report.

This collaborative effort of FICCI & TSMG has resulted in preparation of this Knowledge

Paper. As always it was an insightful experience for Tata Strategic Chemicals team to

materialize this report. We hope it acts as a guiding light both for the players and the

consumers of construction chemicals.

Foreword

P S SinghHead- Chemicals

FICCI

[email protected]

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

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Table of Content

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

I. Introduction to Construction Chemicals. . . . . . . . . . . . . . . . . . . . . . 3

II. Indian Construction Chemicals Market. . . . . . . . . . . . . . . . . . . . . . . 5

1. Market size and past growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2. Construction chemicals segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.5.1 Sealants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.5.2 Grouts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.5.3 Tile adhesives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3. Major players . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

4. Key challenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

5. Growth drivers and Future Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

6. Key growth imperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

III. Special Focus: Construction Chemicals: An Enabler For

Smart Cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IV. Corros

V. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

VI. Annexure I: Major Players . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

VII. About Tata Strategic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

20

ion Mitigation in RCC – State of

The Art Effective Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

VIII. About FICCI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Manish PanchalPractice Head - Chemical & Energy

Tata Strategic Management Group

[email protected]

Charu Kapoor Principal - Chemicals

Tata Strategic Management Group

[email protected]

FICCI & TATA Strategic Management Group has had the opportunity to work with several

construction chemical companies on various strategic business issues. The same knowledge

and experience has facilitated preparation of this report.

The construction chemicals industry will have a key role to play in the sustainable evolution

of the smart cities in India. Even though construction chemicals increase the cost of the

project by 2-5%, their benefits are multi-fold for e.g. they help in achieving higher

performance with lower lifecycle cost, in optimizing energy consumption and in controlling

the menace of corrosion. This has special relevance in present context when significant

importance is being given to infrastructure development of the country.

Indian construction chemicals market is still at a nascent stage as usage levels are much

lower compared to other peer markets due to limited awareness about the products and

their benefits as well as price conscious customers. However, the industry has showcased

significant growth in the last 5 years with new and complex molecules enhancing properties

such as strength, reduced water requirement, increased resistance to abrasion and corrosion

etc. Significant presence of global construction chemical companies in Indian markets have

further intensified the competition and boosted the market growth.

In future, changing dynamics of Indian construction industry and the plan to build 100 smart

cities are expected to significantly impact the construction chemicals market. Adoption of

international standards and increase in high rise buildings in Tier I cities will drive the usage

of admixtures and related construction chemicals in concrete. Corrosion prevention and

control is another area which will drive the adoption of construction chemicals. Going

forward, the focus will be on price to performance ratio and not price alone. Through this

report, we have attempted to highlight the key growth imperatives for industry players as

well as the regulatory bodies.

We sincerely thank all industry leaders whose valuable inputs have helped in building this

report.

This collaborative effort of FICCI & TSMG has resulted in preparation of this Knowledge

Paper. As always it was an insightful experience for Tata Strategic Chemicals team to

materialize this report. We hope it acts as a guiding light both for the players and the

consumers of construction chemicals.

Foreword

P S SinghHead- Chemicals

FICCI

[email protected]

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

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Figure 1: Categories of Construction Chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Figure 2: Indian Construction Chemical industry (INR Crores) . . . . . . . . . . . . . . 5

Figure 3: Indian Construction Chemical product share (%age). . . . . . . . . . . . . . 6

Figure 4: Cement consumption in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Figure 5: Construction industry in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Figure 6: Comparison of Per Capita Cement Consumption (Kg.) . . . . . . . . . . . 15

Figure 7: Indian Construction Chemical industry (INR Cr) . . . . . . . . . . . . . . . . . 17

LIST OF FIGURES

This report is developed by FICCI in association with Tata Strategic

Management Group as the knowledge paper for the "6th Conference on

Construction Chemicals, 2015".

Indian construction chemicals industry was valued at INR 3,500 Crores in FY 14 and

grew at 12% between FY 09 to FY 14. Admixtures constitute majority of the market

with 42% share. Flooring and waterproofing agents are the next leading segments

with 14% share each. Chemicals for repair and rehabilitation constitute another 12%

of the market while the remaining 18% is formed by adhesives & sealants. The share

of flooring chemicals is high in Indian market as compared to developed world while

India has a low share of tiling, sealants and waterproofing.

Overall market is fairly consolidated but there is considerable fragmentation of

individual products and application areas. A large number of global construction

companies have set up local manufacturing operations in India. The top 7 players

account for ~50% of the market; next 20 players ~25% and the remaining 25%

comprises of small and unorganized players.

Going forward, the industry is expected to maintain its growth momentum driven by

building up of Smart Cities, untapped potential of the market and expected growth

in construction industry over the next 5-7 years due to government's investment

plans in infrastructure.. The industry is expected to grow by 15% p.a. over the next 5

years to reach INR 7,000Crores by FY19. Also, increasing awareness amongst

industry players regarding compliance with international standards is expected to

promote the adoption of best practices in the industry. Ban on onsite mixing of

Executive summary

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

01

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

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Figure 1: Categories of Construction Chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Figure 2: Indian Construction Chemical industry (INR Crores) . . . . . . . . . . . . . . 5

Figure 3: Indian Construction Chemical product share (%age). . . . . . . . . . . . . . 6

Figure 4: Cement consumption in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Figure 5: Construction industry in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Figure 6: Comparison of Per Capita Cement Consumption (Kg.) . . . . . . . . . . . 15

Figure 7: Indian Construction Chemical industry (INR Cr) . . . . . . . . . . . . . . . . . 17

LIST OF FIGURES

This report is developed by FICCI in association with Tata Strategic

Management Group as the knowledge paper for the "6th Conference on

Construction Chemicals, 2015".

Indian construction chemicals industry was valued at INR 3,500 Crores in FY 14 and

grew at 12% between FY 09 to FY 14. Admixtures constitute majority of the market

with 42% share. Flooring and waterproofing agents are the next leading segments

with 14% share each. Chemicals for repair and rehabilitation constitute another 12%

of the market while the remaining 18% is formed by adhesives & sealants. The share

of flooring chemicals is high in Indian market as compared to developed world while

India has a low share of tiling, sealants and waterproofing.

Overall market is fairly consolidated but there is considerable fragmentation of

individual products and application areas. A large number of global construction

companies have set up local manufacturing operations in India. The top 7 players

account for ~50% of the market; next 20 players ~25% and the remaining 25%

comprises of small and unorganized players.

Going forward, the industry is expected to maintain its growth momentum driven by

building up of Smart Cities, untapped potential of the market and expected growth

in construction industry over the next 5-7 years due to government's investment

plans in infrastructure.. The industry is expected to grow by 15% p.a. over the next 5

years to reach INR 7,000Crores by FY19. Also, increasing awareness amongst

industry players regarding compliance with international standards is expected to

promote the adoption of best practices in the industry. Ban on onsite mixing of

Executive summary

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

01

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

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cement and compulsory usage of ready to mix cement in metros are the key

government regulations which could have significant impact on the industry

growth.

In spite of the strong growth drivers, the industry faces challenges in terms of

low awareness levels, lack of skilled labor and high price-sensitivity of

customers. Hence, it becomes imperative for construction chemicals

manufacturers to invest in effective marketing of products to make users

aware of their applications and benefits. Providing technical training to

workers about appropriate usage of chemicals in construction will also

ensure correct application and better results, reinforcing the customers'

belief in the utility of construction chemicals.

Going ahead, the construction chemicals industry should focus on

developing new processes and products with sustainability as the core

principle. This requires developing a collaborative platform in which the

academia, government and regulatory bodies, manufacturers and customers

come together and promote and execute strategies for implementing

judicious use of chemicals in the construction industry.

Construction Chemicals, as the name suggests, are the chemical

compounds used in construction activities, be it residential, non-

residential or non-building. These compounds belong to a niche

segment of the specialty chemical industry and can be used either in existing

construction projects to speed up the work or in new construction projects to

impart durability and strengthen the structures. Although Construction

Chemicals account for 2%-5% of the project cost, the benefits realised are far

more than the increase in the cost of the project Some of these chemical

products help in minimizing the quantities of cement and water used in the

construction. These compounds impart chemical as well as physical

properties in applications such as cross-linking or phase change (from liquid

to solid). Construction chemicals are essential for high quality concrete and

for promoting the improvement of concrete performance. They also increase

the life of construction work and impart additional protection from

environmental hazards. Based on end use applications, these compounds

can be broadly classified into five categories as shown in Figure 1.

I. Introduction to Construction Chemicals

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

03

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

02

Page 13: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

cement and compulsory usage of ready to mix cement in metros are the key

government regulations which could have significant impact on the industry

growth.

In spite of the strong growth drivers, the industry faces challenges in terms of

low awareness levels, lack of skilled labor and high price-sensitivity of

customers. Hence, it becomes imperative for construction chemicals

manufacturers to invest in effective marketing of products to make users

aware of their applications and benefits. Providing technical training to

workers about appropriate usage of chemicals in construction will also

ensure correct application and better results, reinforcing the customers'

belief in the utility of construction chemicals.

Going ahead, the construction chemicals industry should focus on

developing new processes and products with sustainability as the core

principle. This requires developing a collaborative platform in which the

academia, government and regulatory bodies, manufacturers and customers

come together and promote and execute strategies for implementing

judicious use of chemicals in the construction industry.

Construction Chemicals, as the name suggests, are the chemical

compounds used in construction activities, be it residential, non-

residential or non-building. These compounds belong to a niche

segment of the specialty chemical industry and can be used either in existing

construction projects to speed up the work or in new construction projects to

impart durability and strengthen the structures. Although Construction

Chemicals account for 2%-5% of the project cost, the benefits realised are far

more than the increase in the cost of the project Some of these chemical

products help in minimizing the quantities of cement and water used in the

construction. These compounds impart chemical as well as physical

properties in applications such as cross-linking or phase change (from liquid

to solid). Construction chemicals are essential for high quality concrete and

for promoting the improvement of concrete performance. They also increase

the life of construction work and impart additional protection from

environmental hazards. Based on end use applications, these compounds

can be broadly classified into five categories as shown in Figure 1.

I. Introduction to Construction Chemicals

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

03

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

02

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*PCE: Polycarboxylic ether; SNF: Sodium Naphthalene Formaldehyde; SMF: Sulphonated Melamine Formaldehyde

A representative picture of the chemicals is as below:

The Indian construction chemical market is attracting lots of attention with

most of the global construction companies present with their full portfolio of

products in India. Increased focus on infrastructure investment by

Government, vertical Growth in metros, participation of overseas investors and

contracting companies, and Governments' plan to build 100 smart cities in India will

propel the construction chemicals segment in coming years and its future growth

look bright as detailed in the report later.

The construction chemicals market in India has grown from INR 1,900 Cr. in 2009 to

approx. INR 3,500 Cr. in 2014 and is expected to grow close to 14-16% p.a. for the

next five years. This will primarily be driven by improving awareness of usefulness of

construction chemicals, emphasis on infrastructure and the National Manufacturing

Policy which aims at increasing the share of manufacturing in GDP from present 16 %

to 25 % by 2022. Moreover, Government's plan of investing USD 1 Trillion on

infrastructure during the 12th five year plan and "Make in India" initiative would also

have a significant positive impact on demand of construction chemicals.

1. Market size and past growth

II. Indian Construction Chemicals Market

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

05

1,900

3,500

2009 2014

Source: Industry Reports, Tata Strategic Analysis

Figure 2 : Indian Construction Chemical industry (INR Crores)

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

04

CONSTRUCTION CHEMICALS

WATER PROOFINGCHEMICALS

CONCRETE ADMIXTURES

FLOORINGCOMPOUNDS

REPAIR AND REHABILITATION

MISCELLANEOUS

Ligno based Polyurethane based Epoxy & floor hardners

Cementitiousrepair mortars Sealants

*SNF & SMF based Bitumin basedPolyurethane

coatingsPolymer repair

mortarsGrouts

*PCE basedPolymer - SBR,

AcrylicPolyurea based Epoxy based

resin mortarsAdhesives

Figure 1: Categories of Construction Chemicals

Page 15: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

*PCE: Polycarboxylic ether; SNF: Sodium Naphthalene Formaldehyde; SMF: Sulphonated Melamine Formaldehyde

A representative picture of the chemicals is as below:

The Indian construction chemical market is attracting lots of attention with

most of the global construction companies present with their full portfolio of

products in India. Increased focus on infrastructure investment by

Government, vertical Growth in metros, participation of overseas investors and

contracting companies, and Governments' plan to build 100 smart cities in India will

propel the construction chemicals segment in coming years and its future growth

look bright as detailed in the report later.

The construction chemicals market in India has grown from INR 1,900 Cr. in 2009 to

approx. INR 3,500 Cr. in 2014 and is expected to grow close to 14-16% p.a. for the

next five years. This will primarily be driven by improving awareness of usefulness of

construction chemicals, emphasis on infrastructure and the National Manufacturing

Policy which aims at increasing the share of manufacturing in GDP from present 16 %

to 25 % by 2022. Moreover, Government's plan of investing USD 1 Trillion on

infrastructure during the 12th five year plan and "Make in India" initiative would also

have a significant positive impact on demand of construction chemicals.

1. Market size and past growth

II. Indian Construction Chemicals Market

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

05

1,900

3,500

2009 2014

Source: Industry Reports, Tata Strategic Analysis

Figure 2 : Indian Construction Chemical industry (INR Crores)

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

04

CONSTRUCTION CHEMICALS

WATER PROOFINGCHEMICALS

CONCRETE ADMIXTURES

FLOORINGCOMPOUNDS

REPAIR AND REHABILITATION

MISCELLANEOUS

Ligno based Polyurethane based Epoxy & floor hardners

Cementitiousrepair mortars Sealants

*SNF & SMF based Bitumin basedPolyurethane

coatingsPolymer repair

mortarsGrouts

*PCE basedPolymer - SBR,

AcrylicPolyurea based Epoxy based

resin mortarsAdhesives

Figure 1: Categories of Construction Chemicals

Page 16: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

2. Construction chemicals segments

Broadly, construction chemicals can be divided into five major segments The market

is largely driven by concrete admixtures, which accounted for 42% of the total

market in 2014. Flooring and waterproofing chemicals are the next big segments

with a share of 14% each. Other segments include sealants, grouts and adhesives

which together account for ~18% of the total construction chemicals market. The

share of flooring is high in Indian market as compared to developed world while

India have low share of Tiling, Sealants and waterproofing. Indian construction

chemical market has >80% business in new builds.

2.1Admixtures

Cement is a widely used as binding material in construction. For concreting,

cement is mixed with crushed rock, sand and water in specific proportion to

produce concrete. For getting better results, better workability, more

strength, and finishing, cement or mortar admixtures are used. Chemical

admixtures are added to the mix immediately before or during mixing.

Admixtures are primarily used

lTo reduce water content in concrete.

lTo increase compressive strength and durability parameter of concrete.

lTo enhance the workability and giving more transportation and placing

time.

Admixtures are used during the first stage of construction. The market in

India was valued ~INR 1,500 Cr (42%) in 2014. Ligno based, SNF (Sulfonated

Naphthalene Formaldehyde) & SMF (Sulfonated Melamine Formaldehyde)

based and PCE based are the three types of admixtures mostly prevalent in

the market -. Ligno based admixtures were the first generation admixtures

and gave lower performance compared to SNF and PCE based admixtures.

PCE based admixtures are the 3rd generation admixtures and are usually 3-4

times more expensive than SNF/ Ligno based admixtures. The raw materials

for manufacturing of PCE admixtures have not been easily available in India in

past years. Few companies have now started producing this them

domestically in the last year or so which will act as a catalyst to drive their

demand.

2.2 Flooring agents

Flooring compounds are mostly epoxy and polyurethane based. Industrial

flooring compounds are used to meet various industrial needs such as

abrasion, load impact, chemical attack, moisture penetration, strengthening

of damaged floors, as well as improving the aesthetic appeal of the floor.

They are also used to provide certain special features such as slip resistance,

static resistance, fire resistance, antibacterial properties, and so on.

Flooring compounds are largely used at the finishing stage of the

construction. Major commercial complexes and shopping malls prefer such

products. The market for such compounds in India is valued ~INR 500 Cr in

2014. Epoxy and floor hardeners constitute the major share of the market

followed by PU based flooring agents.

2.3 Waterproofing agents

Water proofing caters to various end use applications with products based on

Bitumen, PU and polymers like SBR & Acrylic. These compounds are available

in liquid, solid, slurry and two-component coating forms.

Figure 3 : Indian Construction Chemical product share (%)

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Admixtures42%

Flooring14%

Waterproofing14%

Repair &rehabilitation

12%

Misc18%

Product share of Construction Chemical India, 2014

Notes :1) Miscellaneous includes – Tiles, Sealants and Grouts

Source: Industry reports, Tata Strategic analysis

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2. Construction chemicals segments

Broadly, construction chemicals can be divided into five major segments The market

is largely driven by concrete admixtures, which accounted for 42% of the total

market in 2014. Flooring and waterproofing chemicals are the next big segments

with a share of 14% each. Other segments include sealants, grouts and adhesives

which together account for ~18% of the total construction chemicals market. The

share of flooring is high in Indian market as compared to developed world while

India have low share of Tiling, Sealants and waterproofing. Indian construction

chemical market has >80% business in new builds.

2.1Admixtures

Cement is a widely used as binding material in construction. For concreting,

cement is mixed with crushed rock, sand and water in specific proportion to

produce concrete. For getting better results, better workability, more

strength, and finishing, cement or mortar admixtures are used. Chemical

admixtures are added to the mix immediately before or during mixing.

Admixtures are primarily used

lTo reduce water content in concrete.

lTo increase compressive strength and durability parameter of concrete.

lTo enhance the workability and giving more transportation and placing

time.

Admixtures are used during the first stage of construction. The market in

India was valued ~INR 1,500 Cr (42%) in 2014. Ligno based, SNF (Sulfonated

Naphthalene Formaldehyde) & SMF (Sulfonated Melamine Formaldehyde)

based and PCE based are the three types of admixtures mostly prevalent in

the market -. Ligno based admixtures were the first generation admixtures

and gave lower performance compared to SNF and PCE based admixtures.

PCE based admixtures are the 3rd generation admixtures and are usually 3-4

times more expensive than SNF/ Ligno based admixtures. The raw materials

for manufacturing of PCE admixtures have not been easily available in India in

past years. Few companies have now started producing this them

domestically in the last year or so which will act as a catalyst to drive their

demand.

2.2 Flooring agents

Flooring compounds are mostly epoxy and polyurethane based. Industrial

flooring compounds are used to meet various industrial needs such as

abrasion, load impact, chemical attack, moisture penetration, strengthening

of damaged floors, as well as improving the aesthetic appeal of the floor.

They are also used to provide certain special features such as slip resistance,

static resistance, fire resistance, antibacterial properties, and so on.

Flooring compounds are largely used at the finishing stage of the

construction. Major commercial complexes and shopping malls prefer such

products. The market for such compounds in India is valued ~INR 500 Cr in

2014. Epoxy and floor hardeners constitute the major share of the market

followed by PU based flooring agents.

2.3 Waterproofing agents

Water proofing caters to various end use applications with products based on

Bitumen, PU and polymers like SBR & Acrylic. These compounds are available

in liquid, solid, slurry and two-component coating forms.

Figure 3 : Indian Construction Chemical product share (%)

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Admixtures42%

Flooring14%

Waterproofing14%

Repair &rehabilitation

12%

Misc18%

Product share of Construction Chemical India, 2014

Notes :1) Miscellaneous includes – Tiles, Sealants and Grouts

Source: Industry reports, Tata Strategic analysis

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Water proofing compounds are designed to stop water infiltration. These

compounds or membranes can be extremely effective when applied on the

exterior of a foundation system. Application of the water proofing

compounds can be done by implant treatments i.e. either dipping or

spraying or by low-pressure spraying on the surface.

Water proofing compounds are added during the construction as integral

water proofer during the construction, for waterproofing of concrete and

also post construction as a preventive and maintenance waterproofing

ingredients. The size of this segment is estimated ~INR 500 Cr in 2014. The

price of products varies depending on the raw material used. The industry is

moving away from bituminous compounds due to their lower performance

and non- eco-friendly nature.

2.4 Repair & Rehabilitation

The repair and rehabilitation is a highly unexplored and underdeveloped

market. Retrofitting is basically addition of new technology or features to

older systems and improving the structures with energy efficiency.

Rehabilitation is reconstruction of the structural components which were

damaged. These products include cementations repair mortars, epoxy based

mortars and other products like rust removers, anti-corrosion products etc.

The size of this segment is estimated ~INR 430 Cr in 2014. Cementitious

mortars are most frequently used due to their lower prices as well as the ease

of usage. Polymer based repair and rehabilitation products are widely used as

they are less expensive than epoxy based material and also comply with the

desired strength criteria. Epoxy based mortars are the growing segment and

skilled labour is required for most of the product applications.

2.5 Miscellaneous

2.5.1 Sealants

Sealants are used to seal expansion joints, cracks, joints in concrete roads and

to fill gaps between concrete. Major types of sealants include the following:

lPolysulphide sealants: These are most commonly used in the construction

industry as expansion joints for concrete roads, structural joints and

others.

lPolyurethane sealants: These are used for high-end applications where

high flexibility and bonding strength are required.

lSilicone sealants: These are generally used where good bonding is

required between two dissimilar surfaces such as fixing of glass on metal

frame.

2.5.2 Grouts

Grouts are compounds used for giving extra strength for the foundations of

load-bearing structures. They are also used for repair and sealing of cracks

and gaps. Grouts have different chemistries depending on the applications

as discussed below:

lEpoxy-based liquid grouting compounds are mainly injected into the walls

to fill hairline cracks and gaps, thereby improving the strength of the

structure.

lCementitious grouts are used for imparting extra strength to machine

foundations, base plate or anchor bolts for machines or equipment and

others. They are also used for repair of building structures and in heavy

industries such as steel, power plants and ports.

lPolyester-based grouts are also available, which are used for anchoring to

impart strength to foundations that must be achieved in limited available

space. Grouts can also be made to have special characteristics such as fast

setting, free flow, on-shrink and others by addition of different additives as

per the end-user requirement.

2.5.3 Tile adhesives

Tile Adhesives are made using high quality material which enhances the

durability of the adhesive and its bonding span is increased. They are

primarily based on cement, epoxy and polymer formulation (mainly acrylic

polymer). Cementitious adhesives are most commonly used in India owing to

their lower price. They are used in a variety of applications as discussed

below:

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Water proofing compounds are designed to stop water infiltration. These

compounds or membranes can be extremely effective when applied on the

exterior of a foundation system. Application of the water proofing

compounds can be done by implant treatments i.e. either dipping or

spraying or by low-pressure spraying on the surface.

Water proofing compounds are added during the construction as integral

water proofer during the construction, for waterproofing of concrete and

also post construction as a preventive and maintenance waterproofing

ingredients. The size of this segment is estimated ~INR 500 Cr in 2014. The

price of products varies depending on the raw material used. The industry is

moving away from bituminous compounds due to their lower performance

and non- eco-friendly nature.

2.4 Repair & Rehabilitation

The repair and rehabilitation is a highly unexplored and underdeveloped

market. Retrofitting is basically addition of new technology or features to

older systems and improving the structures with energy efficiency.

Rehabilitation is reconstruction of the structural components which were

damaged. These products include cementations repair mortars, epoxy based

mortars and other products like rust removers, anti-corrosion products etc.

The size of this segment is estimated ~INR 430 Cr in 2014. Cementitious

mortars are most frequently used due to their lower prices as well as the ease

of usage. Polymer based repair and rehabilitation products are widely used as

they are less expensive than epoxy based material and also comply with the

desired strength criteria. Epoxy based mortars are the growing segment and

skilled labour is required for most of the product applications.

2.5 Miscellaneous

2.5.1 Sealants

Sealants are used to seal expansion joints, cracks, joints in concrete roads and

to fill gaps between concrete. Major types of sealants include the following:

lPolysulphide sealants: These are most commonly used in the construction

industry as expansion joints for concrete roads, structural joints and

others.

lPolyurethane sealants: These are used for high-end applications where

high flexibility and bonding strength are required.

lSilicone sealants: These are generally used where good bonding is

required between two dissimilar surfaces such as fixing of glass on metal

frame.

2.5.2 Grouts

Grouts are compounds used for giving extra strength for the foundations of

load-bearing structures. They are also used for repair and sealing of cracks

and gaps. Grouts have different chemistries depending on the applications

as discussed below:

lEpoxy-based liquid grouting compounds are mainly injected into the walls

to fill hairline cracks and gaps, thereby improving the strength of the

structure.

lCementitious grouts are used for imparting extra strength to machine

foundations, base plate or anchor bolts for machines or equipment and

others. They are also used for repair of building structures and in heavy

industries such as steel, power plants and ports.

lPolyester-based grouts are also available, which are used for anchoring to

impart strength to foundations that must be achieved in limited available

space. Grouts can also be made to have special characteristics such as fast

setting, free flow, on-shrink and others by addition of different additives as

per the end-user requirement.

2.5.3 Tile adhesives

Tile Adhesives are made using high quality material which enhances the

durability of the adhesive and its bonding span is increased. They are

primarily based on cement, epoxy and polymer formulation (mainly acrylic

polymer). Cementitious adhesives are most commonly used in India owing to

their lower price. They are used in a variety of applications as discussed

below:

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lCementitious adhesives: Cement based adhesives are largely used as wall

tile adhesives & ceramic floor tile adhesives. Water resistant cements and

polymer modified cements are suitable both for internal and external use.

lEpoxy adhesives: Epoxy resins are two component cold curing adhesives

which produce high strength durable bonds. These adhesives may be used

internally or externally and are resistant to oils, water, dilute acids, alkalis

and most solvents

lPolymer based adhesives are suitable for fixing wall tiles in damp and wet

conditions like domestic showers, swimming pools.

3. Major players

4. Key challenges

The overall market is fairly consolidated but there is considerable

fragmentation of individual products and application areas. There are a large

number of global construction companies who have set up local

manufacturing operations in India. The top 7 players account for ~50% of the

market; next 20 players ~25% and the remaining 25% comprises of small and

unorganized players. In the past there has been a considerable change in the

market share of companies due to which medium-sized and regional

manufacturers have gained considerable share of market. Based on revenues,

top 5 players are Pidilite, BASF, SIKA, FOSROC and SWC. There are many other

regional and smaller players as well. Approximately 300 companies are

estimated to be operating in this segment.

*Top 5 Player profiles are given in Annexure I.

The construction chemicals market in India is still under-developed when

compared to other countries, such as China, which accounted for 42% of the

global construction chemicals consumption in 2014. Consumer awareness is

very low regarding new chemical techniques and construction aids. Margins

are lower because most contractors prefer low-cost chemicals to reduce the

overall construction cost. High value products have limited demand and are

used only by premium construction houses. Some of the key challenges faced

by the industry are as follows:

lLow awareness: There is a lack of awareness regarding the positive

impacts of construction chemicals in increasing the durability of structure;

savings both in terms of time (and therefore) cost during construction. The

focus is not on total life-cycle cost.

lPrice sensitive market: Indian construction chemicals market is highly

cost-conscious. The customers are not willing to spend much on

construction chemicals. They are still not fully aware of the benefits of

various construction chemicals and hence tend to use low-cost substitutes.

Decisions are taken based on immediate cost and not on overall benefits

achieved from the usage of these materials.

lFragmented Industry: The construction chemicals market is comprised of

large MNCs as well as several local small-scale manufacturers. Due to low

entry barriers, competition is high and several low value products are being

sold in the market.

lRaw material availability: Contractors are not adequately aware about

the use of right type and quality of construction chemicals for durable

structures. The durability of material is not been studied extensively by the

manufacturer under Indian condition. The chemical protection and

maintenance is not well understood by the user. The application tools or

accessories need to be updated. The code provision or the user guide line

with product is missing

lUnskilled labourers: The practice of employing unskilled workers in

construction activity is still hampering the growth of the sector, as

construction chemicals are sensitive products and their use requires basic

technical expertise and training.

lLack of stringent regulations: The industry lacks in relevant consumer

standards for construction. Market participants are also frequently

challenged by the absence of quality standards for manufacture and

application of construction chemicals which leads to price wars. Knowledge and Strategy Partner

Knowledge Paper on

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lCementitious adhesives: Cement based adhesives are largely used as wall

tile adhesives & ceramic floor tile adhesives. Water resistant cements and

polymer modified cements are suitable both for internal and external use.

lEpoxy adhesives: Epoxy resins are two component cold curing adhesives

which produce high strength durable bonds. These adhesives may be used

internally or externally and are resistant to oils, water, dilute acids, alkalis

and most solvents

lPolymer based adhesives are suitable for fixing wall tiles in damp and wet

conditions like domestic showers, swimming pools.

3. Major players

4. Key challenges

The overall market is fairly consolidated but there is considerable

fragmentation of individual products and application areas. There are a large

number of global construction companies who have set up local

manufacturing operations in India. The top 7 players account for ~50% of the

market; next 20 players ~25% and the remaining 25% comprises of small and

unorganized players. In the past there has been a considerable change in the

market share of companies due to which medium-sized and regional

manufacturers have gained considerable share of market. Based on revenues,

top 5 players are Pidilite, BASF, SIKA, FOSROC and SWC. There are many other

regional and smaller players as well. Approximately 300 companies are

estimated to be operating in this segment.

*Top 5 Player profiles are given in Annexure I.

The construction chemicals market in India is still under-developed when

compared to other countries, such as China, which accounted for 42% of the

global construction chemicals consumption in 2014. Consumer awareness is

very low regarding new chemical techniques and construction aids. Margins

are lower because most contractors prefer low-cost chemicals to reduce the

overall construction cost. High value products have limited demand and are

used only by premium construction houses. Some of the key challenges faced

by the industry are as follows:

lLow awareness: There is a lack of awareness regarding the positive

impacts of construction chemicals in increasing the durability of structure;

savings both in terms of time (and therefore) cost during construction. The

focus is not on total life-cycle cost.

lPrice sensitive market: Indian construction chemicals market is highly

cost-conscious. The customers are not willing to spend much on

construction chemicals. They are still not fully aware of the benefits of

various construction chemicals and hence tend to use low-cost substitutes.

Decisions are taken based on immediate cost and not on overall benefits

achieved from the usage of these materials.

lFragmented Industry: The construction chemicals market is comprised of

large MNCs as well as several local small-scale manufacturers. Due to low

entry barriers, competition is high and several low value products are being

sold in the market.

lRaw material availability: Contractors are not adequately aware about

the use of right type and quality of construction chemicals for durable

structures. The durability of material is not been studied extensively by the

manufacturer under Indian condition. The chemical protection and

maintenance is not well understood by the user. The application tools or

accessories need to be updated. The code provision or the user guide line

with product is missing

lUnskilled labourers: The practice of employing unskilled workers in

construction activity is still hampering the growth of the sector, as

construction chemicals are sensitive products and their use requires basic

technical expertise and training.

lLack of stringent regulations: The industry lacks in relevant consumer

standards for construction. Market participants are also frequently

challenged by the absence of quality standards for manufacture and

application of construction chemicals which leads to price wars. Knowledge and Strategy Partner

Knowledge Paper on

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lBan on illegal sand mining in India: National green tribunal (NGT) banned

sand mining from river beds without an environmental clearance across

the country in August, 2013. Sand and bricks, apart from steel, cement and

aggregate, are the prime raw material that goes into construction. Due to

non-availability of natural sand, industry has started using crushed stone

sand and artificial sand. This is likely to impact the usage and requirements

of construction chemicals in the market as the quality specifications of the

concrete from artificial sand would be different than that of the natural

sand.

Construction chemicals market has a high growth potential due to the

expected growth in construction and manufacturing sector in India. With

growth primarily driven by increasing construction activities in both new

construction and repairs & rehabilitation technologies, demand for

construction chemicals has increased. Many newly developed products give

better performance and results. Hence, there is a shift in demand towards

products offering better performance value-added products such as silicon

caulks, specialty cement additives, polymer-based grouts and mortars etc.

Recent "100 Smart Cities" initiative rolled out by the new government will

provide a boost to the construction chemical industry as well. Other key

growth drivers for the construction chemicals market in India are as follows:

Housing for all by 2022

The commitment to have housing for all by 2022 is the vision of the new

government, and realizing this dream can be a step towards building a

brighter India. By 2022, India needs to develop about 11 Cr. housing units for

which investments of more than USD 2 trillion or about USD 250 to 260 billion

annual investment until 2022 will be needed. The focus will be on affordable

urban houses, which is 70 per cent of the total urban housing requirement.

This will act as an enabler for higher demand of construction chemicals in

India.

Cement consumption across India is projected to grow by a robust 7 per cent

CAGR over 2014-15 to 2018-19. It is driven by improvement in economic

5. Growth drivers and Future Outlook

growth, and better execution of housing and infrastructure projects. Over the

next five years, the housing sector would remain the largest end-user of

cement, followed by the infrastructure sector.Figure 4: Cement consumption in India

Growth in end-use market:

The Indian construction opportunity is expected to grow by 1.5 times over

the next 5 years.

Figure 5: Construction industry in India

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Cement consumption in India

26

35

27

59

35

40

50

40

60

48

60

67

60

77

67

2009 2014 2019P

Notes : MMTPA- Million Metric Tones Per Annum

Source: Crisil, Industry reports, Tata Strategic analysis

North

South

East

West

Central

`232MMTPA

`301MMTPA

`169MMTPA

5.3%

7.1%

CACR

Source: Crisil, Industry reports, Tata Strategic analysis

18%

Rs. 12.9 Tn

Rs. 19.0 Tn

1.5x

89%

82%

2015-2019P2010-2014

11%

Construction Market Opportunity (Rs. Tn)

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lBan on illegal sand mining in India: National green tribunal (NGT) banned

sand mining from river beds without an environmental clearance across

the country in August, 2013. Sand and bricks, apart from steel, cement and

aggregate, are the prime raw material that goes into construction. Due to

non-availability of natural sand, industry has started using crushed stone

sand and artificial sand. This is likely to impact the usage and requirements

of construction chemicals in the market as the quality specifications of the

concrete from artificial sand would be different than that of the natural

sand.

Construction chemicals market has a high growth potential due to the

expected growth in construction and manufacturing sector in India. With

growth primarily driven by increasing construction activities in both new

construction and repairs & rehabilitation technologies, demand for

construction chemicals has increased. Many newly developed products give

better performance and results. Hence, there is a shift in demand towards

products offering better performance value-added products such as silicon

caulks, specialty cement additives, polymer-based grouts and mortars etc.

Recent "100 Smart Cities" initiative rolled out by the new government will

provide a boost to the construction chemical industry as well. Other key

growth drivers for the construction chemicals market in India are as follows:

Housing for all by 2022

The commitment to have housing for all by 2022 is the vision of the new

government, and realizing this dream can be a step towards building a

brighter India. By 2022, India needs to develop about 11 Cr. housing units for

which investments of more than USD 2 trillion or about USD 250 to 260 billion

annual investment until 2022 will be needed. The focus will be on affordable

urban houses, which is 70 per cent of the total urban housing requirement.

This will act as an enabler for higher demand of construction chemicals in

India.

Cement consumption across India is projected to grow by a robust 7 per cent

CAGR over 2014-15 to 2018-19. It is driven by improvement in economic

5. Growth drivers and Future Outlook

growth, and better execution of housing and infrastructure projects. Over the

next five years, the housing sector would remain the largest end-user of

cement, followed by the infrastructure sector.Figure 4: Cement consumption in India

Growth in end-use market:

The Indian construction opportunity is expected to grow by 1.5 times over

the next 5 years.

Figure 5: Construction industry in India

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Cement consumption in India

26

35

27

59

35

40

50

40

60

48

60

67

60

77

67

2009 2014 2019P

Notes : MMTPA- Million Metric Tones Per Annum

Source: Crisil, Industry reports, Tata Strategic analysis

North

South

East

West

Central

`232MMTPA

`301MMTPA

`169MMTPA

5.3%

7.1%

CACR

Source: Crisil, Industry reports, Tata Strategic analysis

18%

Rs. 12.9 Tn

Rs. 19.0 Tn

1.5x

89%

82%

2015-2019P2010-2014

11%

Construction Market Opportunity (Rs. Tn)

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This is mainly due to insufficient understanding of the benefits of these

compounds along with a lack of technical skills to use construction chemicals.

However, construction chemicals are finding increased usage driven by:

lIncrease in awareness about quality construction materials such as

performance-enhancing products among consumers and builders.

lIncreased construction activities triggered by urbanization and

development of rural areas which are still largely untapped markets

lThe use and access to foreign technology and the entry of foreign

companies in the construction chemicals sector has eventually resulted in

quicker growth of the construction chemical sector. Today several projects

funded by multilateral agencies like ADB and World Bank have made use of

good quality construction chemicals mandatory

lArchitects and consultants have realised the importance of quality

construction chemicals and they generally tend to specify trusted brands

of construction chemicals

lCCMA (Construction Chemical Manufacturers Association) India, is an

organized body working to promote the use of Construction Chemicals in

India". They conduct technical seminars and awareness programmes for

the benefit of construction industry.

This growth will be driven by investments in the infrastructure segment,

which are expected to reach Rs. 19 Trillion over the next 5 years. Government

spending has been one of the key drivers of the growth of the construction

industry. The financial constraint on the government has been reduced by

several public-private partnerships, hence increasing the focus on

development. Other growth drivers are as follows:

lNational Manufacturing Policy which aims at enhancing share of

manufacturing in national GDP from 16% to 25 % by 2022.

l"Make in India" (MII) initiative which covers 25 key sectors like automobiles,

chemicals, pharmaceuticals, textiles, ports, aviation, leather, railways,

construction, mining etc. encourages companies to manufacture products

locally. If implemented as envisaged, this scheme can boost to the

construction chemical industry to the new heights. Focus on infrastructure

development: Government of India's commitment to increase spend in

infrastructure to 10% of GDP in the 12th Five-Year Plan

lRising aspirations of large middle income group and changing

demographics driving demand for residential real estate

lIncreasing urbanisation: ~30% of Indian population is urban and

Urbanization to grow to 40% by 2030

l100% Foreign Direct Investment (FDI) in real estate to boost construction

activities

lIncreasing acceptability of ready mix concrete (RMC) is also leading to

increased demand for construction chemicals. Currently, the use of RMC in

construction is around 7% of domestic cement demand. This is expected to

rise to 20 to 25% over the next few years

Increasing penetration of construction chemical products:

The penetration level of construction material is currently very low in India as

compared to other countries.

Figure 6: Comparison of Per Capita Cement Consumption (Kg.)

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Per Capita Cement consumption (KG’s)

Source: Global Cement Report, IMF, Tata Strategic analysis

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This is mainly due to insufficient understanding of the benefits of these

compounds along with a lack of technical skills to use construction chemicals.

However, construction chemicals are finding increased usage driven by:

lIncrease in awareness about quality construction materials such as

performance-enhancing products among consumers and builders.

lIncreased construction activities triggered by urbanization and

development of rural areas which are still largely untapped markets

lThe use and access to foreign technology and the entry of foreign

companies in the construction chemicals sector has eventually resulted in

quicker growth of the construction chemical sector. Today several projects

funded by multilateral agencies like ADB and World Bank have made use of

good quality construction chemicals mandatory

lArchitects and consultants have realised the importance of quality

construction chemicals and they generally tend to specify trusted brands

of construction chemicals

lCCMA (Construction Chemical Manufacturers Association) India, is an

organized body working to promote the use of Construction Chemicals in

India". They conduct technical seminars and awareness programmes for

the benefit of construction industry.

This growth will be driven by investments in the infrastructure segment,

which are expected to reach Rs. 19 Trillion over the next 5 years. Government

spending has been one of the key drivers of the growth of the construction

industry. The financial constraint on the government has been reduced by

several public-private partnerships, hence increasing the focus on

development. Other growth drivers are as follows:

lNational Manufacturing Policy which aims at enhancing share of

manufacturing in national GDP from 16% to 25 % by 2022.

l"Make in India" (MII) initiative which covers 25 key sectors like automobiles,

chemicals, pharmaceuticals, textiles, ports, aviation, leather, railways,

construction, mining etc. encourages companies to manufacture products

locally. If implemented as envisaged, this scheme can boost to the

construction chemical industry to the new heights. Focus on infrastructure

development: Government of India's commitment to increase spend in

infrastructure to 10% of GDP in the 12th Five-Year Plan

lRising aspirations of large middle income group and changing

demographics driving demand for residential real estate

lIncreasing urbanisation: ~30% of Indian population is urban and

Urbanization to grow to 40% by 2030

l100% Foreign Direct Investment (FDI) in real estate to boost construction

activities

lIncreasing acceptability of ready mix concrete (RMC) is also leading to

increased demand for construction chemicals. Currently, the use of RMC in

construction is around 7% of domestic cement demand. This is expected to

rise to 20 to 25% over the next few years

Increasing penetration of construction chemical products:

The penetration level of construction material is currently very low in India as

compared to other countries.

Figure 6: Comparison of Per Capita Cement Consumption (Kg.)

Knowledge and Strategy Partner

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Per Capita Cement consumption (KG’s)

Source: Global Cement Report, IMF, Tata Strategic analysis

Page 26: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

lThe construction chemicals industry also provides technologies and

products to provide additional performance and endurance to structures

and hence reduce the impact of corrosion. Chemicals including surface

coatings, floorings, concrete admixtures, corrosion inhibitors, grouts and

sealants, repair mortars protect the surface from corrosion by restricting

the ingress of moisture and providing a 'sealed' structure.

With increasing awareness in the industry, the usage of construction

chemicals across all its product groups will improve in coming years.

Changing regulatory environment:

Current Government's focus on "Zero Effect and Zero Defect" to establish

India as an efficient manufacturing country will contribute in further

propelling the use of construction chemicals. Other regulatory aspects which

will drive the usage of construction chemicals are:

lCurrent and prospective regulatory guidelines incentivizing energy-

efficient and green buildings are expected to drive demand for suitable,

innovative protective coatings and safe chemicals.

lCompulsory usage of Ready Mix Concrete in Metros like Mumbai,

Bangalore etc. is a key regulatory change. Similar regulations in Tier-I &

other cities would be a key driver in increasing the usage of construction

chemicals.

lWith increased government focus on investments in infrastructure,

increase in usage of RMC in Govt, infrastructure projects would boost the

growth further

lGovernments' initiative to build 100 smart cities will require materials with

high performance levels. This will require advanced construction

chemicals.

Increasing compliance with international manufacturing standards:

Indian Construction industry is fast adopting the best practices from across

the world and implementing consumer standards matching with

international standards. This will help increase the current penetration levels

of construction chemicals. The following illustrations explain the upcoming

trends which are driving the usage of construction chemicals:

lBan on onsite mixing of concrete is aimed at reducing pollution levels and

in turn would generate demand for ready-mix concrete admixtures

lSelf-compacting concrete (SSC) is being preferred over normal-strength

concrete as SSC doesn't require external compaction and enhances

strength of structure. Increased usage of SSC would drive the growth of

special admixtures like plasticizers and retardants

lHigh rise buildings are being developed in cities owing to space

constraints. This trend is driving the growth of high performance concrete

and increased use of admixtures and related construction chemicals

The Indian construction chemicals market is expected to show high growth

rate of approx.. 15p.a., in the future. It is expected to reach ~INR 7,000Cr by

2019 mainly driven by the untapped potential of the market and steady

growth in the construction industry over the next 5 to 7 years.

Figure 7: Indian Construction Chemical industry (INR Cr)

6. Key growth imperatives

Construction chemicals industry has a good growth potential in the next 5

years. The industry needs initiatives from leading players, government,

regulatory bodies, as well as industry associations/ federations to for growth. Knowledge and Strategy Partner

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20192014

3,500

7,000

Source: Industry Reports, Tata Strategic Analysis

Construction Chemical Market India (Rs. Crores)

`15%

Page 27: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

lThe construction chemicals industry also provides technologies and

products to provide additional performance and endurance to structures

and hence reduce the impact of corrosion. Chemicals including surface

coatings, floorings, concrete admixtures, corrosion inhibitors, grouts and

sealants, repair mortars protect the surface from corrosion by restricting

the ingress of moisture and providing a 'sealed' structure.

With increasing awareness in the industry, the usage of construction

chemicals across all its product groups will improve in coming years.

Changing regulatory environment:

Current Government's focus on "Zero Effect and Zero Defect" to establish

India as an efficient manufacturing country will contribute in further

propelling the use of construction chemicals. Other regulatory aspects which

will drive the usage of construction chemicals are:

lCurrent and prospective regulatory guidelines incentivizing energy-

efficient and green buildings are expected to drive demand for suitable,

innovative protective coatings and safe chemicals.

lCompulsory usage of Ready Mix Concrete in Metros like Mumbai,

Bangalore etc. is a key regulatory change. Similar regulations in Tier-I &

other cities would be a key driver in increasing the usage of construction

chemicals.

lWith increased government focus on investments in infrastructure,

increase in usage of RMC in Govt, infrastructure projects would boost the

growth further

lGovernments' initiative to build 100 smart cities will require materials with

high performance levels. This will require advanced construction

chemicals.

Increasing compliance with international manufacturing standards:

Indian Construction industry is fast adopting the best practices from across

the world and implementing consumer standards matching with

international standards. This will help increase the current penetration levels

of construction chemicals. The following illustrations explain the upcoming

trends which are driving the usage of construction chemicals:

lBan on onsite mixing of concrete is aimed at reducing pollution levels and

in turn would generate demand for ready-mix concrete admixtures

lSelf-compacting concrete (SSC) is being preferred over normal-strength

concrete as SSC doesn't require external compaction and enhances

strength of structure. Increased usage of SSC would drive the growth of

special admixtures like plasticizers and retardants

lHigh rise buildings are being developed in cities owing to space

constraints. This trend is driving the growth of high performance concrete

and increased use of admixtures and related construction chemicals

The Indian construction chemicals market is expected to show high growth

rate of approx.. 15p.a., in the future. It is expected to reach ~INR 7,000Cr by

2019 mainly driven by the untapped potential of the market and steady

growth in the construction industry over the next 5 to 7 years.

Figure 7: Indian Construction Chemical industry (INR Cr)

6. Key growth imperatives

Construction chemicals industry has a good growth potential in the next 5

years. The industry needs initiatives from leading players, government,

regulatory bodies, as well as industry associations/ federations to for growth. Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

17

Knowledge and Strategy Partner

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20192014

3,500

7,000

Source: Industry Reports, Tata Strategic Analysis

Construction Chemical Market India (Rs. Crores)

`15%

Page 28: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

Key growth imperatives for industry players could be highlighted as:

lStrong marketing and increased customer awareness: Effective

marketing of products is essential to make users aware of their applications

and benefits. Manufacturers could consider investing in programmes to

educate construction contractors about the benefits of using superior

construction chemicals, in terms of lower project completion time and ease

of usage. It is imperative to maintain long-term relationships with

customers and exert influence over channel partners to retain foothold in

the industry.

lSkill development among workers: Providing technical training to

workers about appropriate usage of these chemicals in construction will

ensure correct application and better results, reinforcing the customers'

belief in the utility of construction chemicals. Industry and academia could

tie-up to provide dedicated courses/ training on construction chemicals in

engineering institutes as well as ITIs.

lProduct innovation: Product innovation requires international standards.

Focus on sustainability / green aspects, corrosion issues (which takes

almost 3% of national GDP) will require innovation. Construction chemical

manufacturers must focus on development and marketing of innovative

products (e.g. silicon-based sealants) which are expected to outgrow

traditional products.

lRight value proposition: Companies with products providing right value

proposition are likely to capture significant share of the market. Given the

low awareness and price sensitive nature of the market, it will be

challenging to get consumers to accept more expensive products. Thus

product innovation must also focus on creating products with wide

applications.

lAdoption of modern techniques of delivery: Construction chemical

companies could focus on adopting modern techniques of delivery such as

on-site mixing of concrete and energy consumption in buildings by

effectively liasoning with the government and the construction industry.

The ability to deliver the product at the consumer's doorstep would be key

to success for construction chemicals players.

Government and regulatory bodies could play an important role in driving

the growth of industry by focusing along the following lines:

lIncrease infrastructural investments: Government's initiatives towards

infrastructural development are one of the major factors driving the

growth of construction chemicals industry. The construction industry is

witnessing support from World Bank and ADB and all the projects funded

by these organizations necessitate the use of construction chemicals.

100% FDI in real estate sector would also significantly drive the growth of

construction chemicals

lPolicies for promotion of construction chemicals: Indian government's

initiative towards favourable policies like National Building Code and

Green Building is estimated to boost the growth in construction chemicals

market.

lDefine quality standards: Government and regulatory bodies could

come together to define set quality standards for the industry. This would

dampen the growth of low quality, cheap construction chemicals and

incentivise players to invest in the industry. Organizations such as CCMA

(Construction Chemical Manufacturers Association) India, can promote

the use of Construction Chemicals in India by conducting technical

seminars and awareness programmes for the benefit of construction

industry.

Knowledge and Strategy Partner

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Page 29: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

Key growth imperatives for industry players could be highlighted as:

lStrong marketing and increased customer awareness: Effective

marketing of products is essential to make users aware of their applications

and benefits. Manufacturers could consider investing in programmes to

educate construction contractors about the benefits of using superior

construction chemicals, in terms of lower project completion time and ease

of usage. It is imperative to maintain long-term relationships with

customers and exert influence over channel partners to retain foothold in

the industry.

lSkill development among workers: Providing technical training to

workers about appropriate usage of these chemicals in construction will

ensure correct application and better results, reinforcing the customers'

belief in the utility of construction chemicals. Industry and academia could

tie-up to provide dedicated courses/ training on construction chemicals in

engineering institutes as well as ITIs.

lProduct innovation: Product innovation requires international standards.

Focus on sustainability / green aspects, corrosion issues (which takes

almost 3% of national GDP) will require innovation. Construction chemical

manufacturers must focus on development and marketing of innovative

products (e.g. silicon-based sealants) which are expected to outgrow

traditional products.

lRight value proposition: Companies with products providing right value

proposition are likely to capture significant share of the market. Given the

low awareness and price sensitive nature of the market, it will be

challenging to get consumers to accept more expensive products. Thus

product innovation must also focus on creating products with wide

applications.

lAdoption of modern techniques of delivery: Construction chemical

companies could focus on adopting modern techniques of delivery such as

on-site mixing of concrete and energy consumption in buildings by

effectively liasoning with the government and the construction industry.

The ability to deliver the product at the consumer's doorstep would be key

to success for construction chemicals players.

Government and regulatory bodies could play an important role in driving

the growth of industry by focusing along the following lines:

lIncrease infrastructural investments: Government's initiatives towards

infrastructural development are one of the major factors driving the

growth of construction chemicals industry. The construction industry is

witnessing support from World Bank and ADB and all the projects funded

by these organizations necessitate the use of construction chemicals.

100% FDI in real estate sector would also significantly drive the growth of

construction chemicals

lPolicies for promotion of construction chemicals: Indian government's

initiative towards favourable policies like National Building Code and

Green Building is estimated to boost the growth in construction chemicals

market.

lDefine quality standards: Government and regulatory bodies could

come together to define set quality standards for the industry. This would

dampen the growth of low quality, cheap construction chemicals and

incentivise players to invest in the industry. Organizations such as CCMA

(Construction Chemical Manufacturers Association) India, can promote

the use of Construction Chemicals in India by conducting technical

seminars and awareness programmes for the benefit of construction

industry.

Knowledge and Strategy Partner

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These smart cities involve the participation of multiple stakeholders from

overseas governments, agencies, multinational companies and society. The

government is committed towards the development of smart cities. As of

now GOI has signed deals with various developed countries to build eight

cities - three with Germany, three with the United States, and one each with

Spain and Singapore.

Energy efficiency is one of the cornerstones of the smart communities.

Construction Chemical industry can provide smart solutions in the building

construction sector. Government along with other stakeholders needs to

realize the role chemical innovation can play in Smart Cities. To understand it

further the European Technology Platform for Sustainable Chemistry

(SusChem) published a new report outlining some of the benefits of chemical

innovation. 'Innovative Chemistry for Energy Efficiency of Buildings in Smart

Cities'. Some of the innovations where chemistry can make a huge difference

are summarized as follow.

III. Special Focus: Construction Chemicals:

An Enabler For Smart Cities

Recently, the Indian Government outlined the plan for development of

100 smart cities. A sum of ~Rs. 7,000 Crores was allocated for

developing these as satellite towns of larger cities and by

modernizing existing mid-sized cities. The major focus of the scheme is to

develop such cities which will rely on utilizes latest technology to run

transport, utilities, housing, healthcare, safety and other municipal services.

This plan has been introduced to address the issue of increasing migration of

people and burgeoning population (According to reports, India's population

is expected to reach 1.45 billion, passing China around 2028). A smart city is

characterized by efficient infrastructure network and excellent delivery of

services. This encompasses various fronts like telecommunications, logistics,

water and gas supply through methods such as smart meters, sensors and

global positioning systems. There would be a phase-wise development of

100 Smart Cities in India.

NO. CHEMISTRY POTENTIAL BENEFITS

1 High Reflectance

Indoor Coatings light (increased perceived light up to 20%) and can help

keep sunshine heat inside the building in wintertime.

2 High Performance lReduce energy heating costs from 30% up to 80%. Their

Insulation Foams insulation performance is almost three times higher than

and Panels conventional insulation materials

lThese coatings optimize the use of natural and artificial

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Page 31: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

These smart cities involve the participation of multiple stakeholders from

overseas governments, agencies, multinational companies and society. The

government is committed towards the development of smart cities. As of

now GOI has signed deals with various developed countries to build eight

cities - three with Germany, three with the United States, and one each with

Spain and Singapore.

Energy efficiency is one of the cornerstones of the smart communities.

Construction Chemical industry can provide smart solutions in the building

construction sector. Government along with other stakeholders needs to

realize the role chemical innovation can play in Smart Cities. To understand it

further the European Technology Platform for Sustainable Chemistry

(SusChem) published a new report outlining some of the benefits of chemical

innovation. 'Innovative Chemistry for Energy Efficiency of Buildings in Smart

Cities'. Some of the innovations where chemistry can make a huge difference

are summarized as follow.

III. Special Focus: Construction Chemicals:

An Enabler For Smart Cities

Recently, the Indian Government outlined the plan for development of

100 smart cities. A sum of ~Rs. 7,000 Crores was allocated for

developing these as satellite towns of larger cities and by

modernizing existing mid-sized cities. The major focus of the scheme is to

develop such cities which will rely on utilizes latest technology to run

transport, utilities, housing, healthcare, safety and other municipal services.

This plan has been introduced to address the issue of increasing migration of

people and burgeoning population (According to reports, India's population

is expected to reach 1.45 billion, passing China around 2028). A smart city is

characterized by efficient infrastructure network and excellent delivery of

services. This encompasses various fronts like telecommunications, logistics,

water and gas supply through methods such as smart meters, sensors and

global positioning systems. There would be a phase-wise development of

100 Smart Cities in India.

NO. CHEMISTRY POTENTIAL BENEFITS

1 High Reflectance

Indoor Coatings light (increased perceived light up to 20%) and can help

keep sunshine heat inside the building in wintertime.

2 High Performance lReduce energy heating costs from 30% up to 80%. Their

Insulation Foams insulation performance is almost three times higher than

and Panels conventional insulation materials

lThese coatings optimize the use of natural and artificial

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NO. CHEMISTRY POTENTIAL BENEFITS

3 Phase Change

Materials (PCM) during the day and release it at night, providing energy

efficiency on heating and cooling.

4 High reflectance lReflect radiation from sunlight and reduce roof and wall

and durable temperatures, leading to energy savings on cooling.

outdoor coatings Such coatings can save up to 15% of air conditioning

energy consumption while also allowing for smaller and

more effective conditioning systems.

lEnable walls and ceilings to absorb and store excess heat

Chemicals can help to bring efficiency in the various facets of the smart cities

Water Management Systems, Infrastructure, Transportation and so on.

Construction chemical can contribute towards the development of durable

and energy efficient buildings and home. Some of the areas-wise

applications and benefits have been tabulated below:

Areas Application Benefits

lDesalination of sea water

lSustainable water treatment solutions

lRecycling, water discharge facilities and providing a 24x7

water supply

lPhase Change Materials (PCM) enables savings of energy

on heating and cooling processes.

lHigh reflectance and durable outdoor coatings can lead to

energy savings in cooling

lFormaldehyde abatement and ammonia-free paints can

reduce volatile organic compound (VOC)

lLight-weighting vehicles using composite polymers

lSpecial elastomers can reduce vibrations and enable noise-

free transportation

lGreater energy efficiency, higher safety norms and lower

exhaust emissions

lPolyurethanes can offer excellent structural strength,

durability and adhesion to laminates and liner materials at a

cheap price

lAdvanced heat transfer fluids offer stable replacement to

the refrigerant gases bringing down pollution.

Areas Application Benefits

l

improving cost efficiencies of energy solutions

lSewage treatment plant (STP), using ultrafiltration

(UF) and reverse osmosis (RO) technologies can save

huge amount of water

lTreated water can then be utilized for other activities

such as air-conditioning cooling, horticulture,

construction, etc.

Effective chemical alternatives can significantly

Water Management

Systems

Infrastructure

Transportation

Energy

Waste Management

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NO. CHEMISTRY POTENTIAL BENEFITS

3 Phase Change

Materials (PCM) during the day and release it at night, providing energy

efficiency on heating and cooling.

4 High reflectance lReflect radiation from sunlight and reduce roof and wall

and durable temperatures, leading to energy savings on cooling.

outdoor coatings Such coatings can save up to 15% of air conditioning

energy consumption while also allowing for smaller and

more effective conditioning systems.

lEnable walls and ceilings to absorb and store excess heat

Chemicals can help to bring efficiency in the various facets of the smart cities

Water Management Systems, Infrastructure, Transportation and so on.

Construction chemical can contribute towards the development of durable

and energy efficient buildings and home. Some of the areas-wise

applications and benefits have been tabulated below:

Areas Application Benefits

lDesalination of sea water

lSustainable water treatment solutions

lRecycling, water discharge facilities and providing a 24x7

water supply

lPhase Change Materials (PCM) enables savings of energy

on heating and cooling processes.

lHigh reflectance and durable outdoor coatings can lead to

energy savings in cooling

lFormaldehyde abatement and ammonia-free paints can

reduce volatile organic compound (VOC)

lLight-weighting vehicles using composite polymers

lSpecial elastomers can reduce vibrations and enable noise-

free transportation

lGreater energy efficiency, higher safety norms and lower

exhaust emissions

lPolyurethanes can offer excellent structural strength,

durability and adhesion to laminates and liner materials at a

cheap price

lAdvanced heat transfer fluids offer stable replacement to

the refrigerant gases bringing down pollution.

Areas Application Benefits

l

improving cost efficiencies of energy solutions

lSewage treatment plant (STP), using ultrafiltration

(UF) and reverse osmosis (RO) technologies can save

huge amount of water

lTreated water can then be utilized for other activities

such as air-conditioning cooling, horticulture,

construction, etc.

Effective chemical alternatives can significantly

Water Management

Systems

Infrastructure

Transportation

Energy

Waste Management

Knowledge and Strategy Partner

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Construction Chemicals as Enabler for Smart Cities

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IV. Corrosion Mitigation in RCC – State of The Art Effective Solutions

Abstract -

India loses INR 2 trillion (USD 40 billion) which is roughly about 4% of our

national GDP every year due to corrosion of infrastructure, industrial

equipment and other vital installations, according to last estimates from

Corrosion Management Committee of CII. In addition to causing severe

damage and threat to public safety, corrosion disrupts operations and

requires extensive repair and replacement of failed assets. This is likely the

single biggest opportunity to save costs due to corrosion and enhance the

life cycle and sustainability of civil structures.

The corrosion of metals especially reinforcing steel has been receiving

increasing attention because of its widespread occurrence and the high cost

of repairing these structures. Concrete normally provides reinforcing steel

with excellent corrosion protection. The highly alkaline environment in

concrete creates a tightly adhering film that passivates the steel and protects

it from corrosion. However, corrosion can occur if the concrete is unable to

resist the ingress of corrosion causing substances, the structure was not

properly designed for the service environment, or the environment is not as

anticipated or changes during the service life of the structure.

Exposure of steel to chloride ions is the major cause of premature corrosion of

steel reinforcement. In some circumstances corrosion of steel reinforcement

takes place in the absence of chloride ions as well such, for example due to

carbonation of the concrete. Other factors that affect the rate and level of

corrosion are heterogeneity in the concrete and reinforcing steel, pH of the

concrete pore water, carbonation of the cement paste, cracks in the concrete,

stray currents and galvanic effects due to contact between dissimilar metals.

Research on corrosion has not produced a carbon steel or other type of

reinforcement that will not corrode when used in concrete and which is both

economically and technically feasible.

In addition to ensuring good quality concrete, careful design and good

construction practices this paper will outline the various state of the art Knowledge and Strategy Partner

Knowledge Paper on

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Construction Chemicals as Enabler for Smart Cities

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technologies - physical barriers, chemical and electrochemical, that are being

deployed with varying degrees of success and in various permutations and

combinations to help combat this gross national loss. Specifically this paper

will seek to briefly explain the causes and mechanism of failure of concrete

structures due to corrosion and then outline corrosion management and

prevention technologies including Corrosion Mitigation Admixtures,

Protective Coatings, Galvanic Systems and Impressed Current based systems.

All metals except gold and platinum are thermodynamically unstable under

normal atmospheric conditions and will eventually revert to their oxides (or

other compounds). Therefore the information of importance to the engineer

who would use the metal is not whether the metal will corrode but how fast

the corrosion will occur.

Introduction

1 2 3 4Dr. S. K. Manjrekar , Sourabh Manjrekar , Dr. R.S. Manjrekar and Ishita Manjrekar

Figure 1 : Friends of Corrosion

Corrosion Control Methods:

Research on corrosion has not produced carbon steel or other type of

reinforcement that will not corrode when used in concrete and which is both

economically and technically feasible.

In addition to ensuring good quality concrete, careful design and good

construction practices this paper will outline the various state of the art

technologies - physical barriers, chemical and electrochemical, that are being

deployed with varying degrees of success and in various permutations and

combinations to help combat this gross national loss. Specifically this paper

will seek to outline corrosion management and prevention technologies

Page 35: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

IV. Corrosion Mitigation in RCC – State of The Art Effective Solutions

Abstract -

India loses INR 2 trillion (USD 40 billion) which is roughly about 4% of our

national GDP every year due to corrosion of infrastructure, industrial

equipment and other vital installations, according to last estimates from

Corrosion Management Committee of CII. In addition to causing severe

damage and threat to public safety, corrosion disrupts operations and

requires extensive repair and replacement of failed assets. This is likely the

single biggest opportunity to save costs due to corrosion and enhance the

life cycle and sustainability of civil structures.

The corrosion of metals especially reinforcing steel has been receiving

increasing attention because of its widespread occurrence and the high cost

of repairing these structures. Concrete normally provides reinforcing steel

with excellent corrosion protection. The highly alkaline environment in

concrete creates a tightly adhering film that passivates the steel and protects

it from corrosion. However, corrosion can occur if the concrete is unable to

resist the ingress of corrosion causing substances, the structure was not

properly designed for the service environment, or the environment is not as

anticipated or changes during the service life of the structure.

Exposure of steel to chloride ions is the major cause of premature corrosion of

steel reinforcement. In some circumstances corrosion of steel reinforcement

takes place in the absence of chloride ions as well such, for example due to

carbonation of the concrete. Other factors that affect the rate and level of

corrosion are heterogeneity in the concrete and reinforcing steel, pH of the

concrete pore water, carbonation of the cement paste, cracks in the concrete,

stray currents and galvanic effects due to contact between dissimilar metals.

Research on corrosion has not produced a carbon steel or other type of

reinforcement that will not corrode when used in concrete and which is both

economically and technically feasible.

In addition to ensuring good quality concrete, careful design and good

construction practices this paper will outline the various state of the art Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

24

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

25

technologies - physical barriers, chemical and electrochemical, that are being

deployed with varying degrees of success and in various permutations and

combinations to help combat this gross national loss. Specifically this paper

will seek to briefly explain the causes and mechanism of failure of concrete

structures due to corrosion and then outline corrosion management and

prevention technologies including Corrosion Mitigation Admixtures,

Protective Coatings, Galvanic Systems and Impressed Current based systems.

All metals except gold and platinum are thermodynamically unstable under

normal atmospheric conditions and will eventually revert to their oxides (or

other compounds). Therefore the information of importance to the engineer

who would use the metal is not whether the metal will corrode but how fast

the corrosion will occur.

Introduction

1 2 3 4Dr. S. K. Manjrekar , Sourabh Manjrekar , Dr. R.S. Manjrekar and Ishita Manjrekar

Figure 1 : Friends of Corrosion

Corrosion Control Methods:

Research on corrosion has not produced carbon steel or other type of

reinforcement that will not corrode when used in concrete and which is both

economically and technically feasible.

In addition to ensuring good quality concrete, careful design and good

construction practices this paper will outline the various state of the art

technologies - physical barriers, chemical and electrochemical, that are being

deployed with varying degrees of success and in various permutations and

combinations to help combat this gross national loss. Specifically this paper

will seek to outline corrosion management and prevention technologies

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including CorrosionMitigation Admixtures, Protective Coatings, Galvanic

Systems and Impressed Current based systems.

Metallic coatings for steel reinforcement fall into two categories: sacrificial

and noble (non-sacrificial). In general metals with a more negative corrosion

potential (less noble) than steel such as zinc and cadmium give sacrificial

protection to steel. Results of the performance of galvanized reinforcement 2 3

bars have been conflicting. Marine studies and accelerated field studies

have shown that galvanizing will delay the onset of delaminations and spalls

but will not prevent them. In general it appears that only a slight increase in 4

service life will e obtained in severe chloride environements.

5, 6, 7, 8,Numerous non-metallic coatings for steel have been evaluated but only

fusion bonded epoxy powder coatings are produced commercially and

widely used. The epoxy coating isolates the steel from contact with oxygen,

moisture and chlorides and inhibits the passage of electrochemically

produced current.

The chief difficulty in using epoxy coated bars has been preventing damage

to the coating in transportation and handling. Specifically damage can result

from poor storage methods, rough installation, impact from hand tools and

contact with immersion vibrators. Cracking of the coating has also been

observed during fabrication of pre-coated bars where there has been

inadequate cleaning of the bar before coating or the thickness of the coating

has been outside specified tolerances.

Additional studies have demonstrated that epoxy coated reinforcing bars

embedded in concrete can have reduced bond strengths with the concrete as

compared with uncoated bars.

A corrosion inhibitor is an admixture that will either extend the time to

corrosioninitiation or significantly reduce the corrosion rate of embedded

steel or both in concrete containing chlorides in excess of the accepted

corrosion threshold value for the steel in untreated concrete.

A.Protective Coatings:

9B.Corrosion Mitigating Chemical Inhibitors

Knowledge and Strategy Partner

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Figure 2 : Effect of admixing Migratory Corrosion Inhibiting Admixture “POLYALK CP

293 of SUNANDA make”. Bottle 1 shows heavy corrosion, Bottle 2 shows almost no

corrosion, Bottle 3 shows much reduced corrosion in the presence of heavy chloride

concentration

Corrosion inhibitors have been used for the protection of steel in process

industries to great effect for over 50 years. Since the1980s, this technology

began to be transferred to the protection of steel reinforcement with varying

degrees of success. These chemical admixtures have been used to protect

steel reinforcement in concrete structures in the USA since 1983 and in the UK

since 1987.

An important Long Term Testing Program - The Strategic Highway Research

Program (SHRP) instituted in 1983 by the United States Congress yields

interesting findings. The study is based on ASTM G 109 - Standard Test

Method for Determining Effects of Chemical Admixtures on Corrosion of

Embedded Steel Reinforcement in Concrete Exposed to Chloride

Environments. The results of this program conclude that concrete treated

with Migratory Corrosion Inhibiting Admixtures has an average service life of

35 years as compared to PMM which has an average service life of 20 years.

This method becomes easy to use, since a 100% effective admixture that is

simple admixed into the concrete. Large areas completed per day since

individual treatment of steel reinforcement is eliminated. It is also noted to be

one of the most cost effective methods to increase the durability of a

reinforced concrete structure.

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including CorrosionMitigation Admixtures, Protective Coatings, Galvanic

Systems and Impressed Current based systems.

Metallic coatings for steel reinforcement fall into two categories: sacrificial

and noble (non-sacrificial). In general metals with a more negative corrosion

potential (less noble) than steel such as zinc and cadmium give sacrificial

protection to steel. Results of the performance of galvanized reinforcement 2 3

bars have been conflicting. Marine studies and accelerated field studies

have shown that galvanizing will delay the onset of delaminations and spalls

but will not prevent them. In general it appears that only a slight increase in 4

service life will e obtained in severe chloride environements.

5, 6, 7, 8,Numerous non-metallic coatings for steel have been evaluated but only

fusion bonded epoxy powder coatings are produced commercially and

widely used. The epoxy coating isolates the steel from contact with oxygen,

moisture and chlorides and inhibits the passage of electrochemically

produced current.

The chief difficulty in using epoxy coated bars has been preventing damage

to the coating in transportation and handling. Specifically damage can result

from poor storage methods, rough installation, impact from hand tools and

contact with immersion vibrators. Cracking of the coating has also been

observed during fabrication of pre-coated bars where there has been

inadequate cleaning of the bar before coating or the thickness of the coating

has been outside specified tolerances.

Additional studies have demonstrated that epoxy coated reinforcing bars

embedded in concrete can have reduced bond strengths with the concrete as

compared with uncoated bars.

A corrosion inhibitor is an admixture that will either extend the time to

corrosioninitiation or significantly reduce the corrosion rate of embedded

steel or both in concrete containing chlorides in excess of the accepted

corrosion threshold value for the steel in untreated concrete.

A.Protective Coatings:

9B.Corrosion Mitigating Chemical Inhibitors

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

26

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Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

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Figure 2 : Effect of admixing Migratory Corrosion Inhibiting Admixture “POLYALK CP

293 of SUNANDA make”. Bottle 1 shows heavy corrosion, Bottle 2 shows almost no

corrosion, Bottle 3 shows much reduced corrosion in the presence of heavy chloride

concentration

Corrosion inhibitors have been used for the protection of steel in process

industries to great effect for over 50 years. Since the1980s, this technology

began to be transferred to the protection of steel reinforcement with varying

degrees of success. These chemical admixtures have been used to protect

steel reinforcement in concrete structures in the USA since 1983 and in the UK

since 1987.

An important Long Term Testing Program - The Strategic Highway Research

Program (SHRP) instituted in 1983 by the United States Congress yields

interesting findings. The study is based on ASTM G 109 - Standard Test

Method for Determining Effects of Chemical Admixtures on Corrosion of

Embedded Steel Reinforcement in Concrete Exposed to Chloride

Environments. The results of this program conclude that concrete treated

with Migratory Corrosion Inhibiting Admixtures has an average service life of

35 years as compared to PMM which has an average service life of 20 years.

This method becomes easy to use, since a 100% effective admixture that is

simple admixed into the concrete. Large areas completed per day since

individual treatment of steel reinforcement is eliminated. It is also noted to be

one of the most cost effective methods to increase the durability of a

reinforced concrete structure.

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To describe the mechanism of protection in the most general terms these

chemical molecules bind to a central metal atom to form a complex. Once

these complexes are formed on the steel surface, it is unavailable to

participate in corrosion. Since then this material has undergone many

iterations of improvement and continues to do so to this day.

Knowledge and Strategy Partner

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Current state of the are chemical corrosion inhibitor molecules migrate

towards the steel to form a monomolecular protective layer by formation of

the Steel – inhibitor complexes are the most thermodynamically favourable

state for steel to exist in. Consequently the reaction of oxygen and water at

the cathodic and anodic sites on reinforcement steel is inhibited. The p

Figure 3 : First Generation chemical inhibitors

Figure 4 : Second Generation Corrosion Inhibitors for Steel Reinforcement

with hydrophobic long chain tails

Figure 5 : Third Generation Corrosion Inhibitors for Steel Reinforcement

with polydentate binding mechanism

Figure 6 : Fourth Generation Migratory Corrosion Inhibitors for Steel Reinforcement

Figure 7: Third Party Test Results carried out at VJTI laboratory on the effectiveness of

Migratory Corrosion Inhibiting Admixture of SUNANDA make

C.Cathodic Protection

The basis of cathodic protection is to reduce the potential of the steel

structure which is to be proteted. There are two ways of achieving this

reduction in potential.

One is to use an external direct current source (impressed current cathodic

protection) and an auxiliary anode.

The other is to connect the structure to a metal such as aluminium,

magnesium or zinc or alloys which take up more negative potential than steel

and which will naturally corrode to provide cathodic protection current.

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To describe the mechanism of protection in the most general terms these

chemical molecules bind to a central metal atom to form a complex. Once

these complexes are formed on the steel surface, it is unavailable to

participate in corrosion. Since then this material has undergone many

iterations of improvement and continues to do so to this day.

Knowledge and Strategy Partner

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Construction Chemicals as Enabler for Smart Cities

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Knowledge Paper on

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Current state of the are chemical corrosion inhibitor molecules migrate

towards the steel to form a monomolecular protective layer by formation of

the Steel – inhibitor complexes are the most thermodynamically favourable

state for steel to exist in. Consequently the reaction of oxygen and water at

the cathodic and anodic sites on reinforcement steel is inhibited. The p

Figure 3 : First Generation chemical inhibitors

Figure 4 : Second Generation Corrosion Inhibitors for Steel Reinforcement

with hydrophobic long chain tails

Figure 5 : Third Generation Corrosion Inhibitors for Steel Reinforcement

with polydentate binding mechanism

Figure 6 : Fourth Generation Migratory Corrosion Inhibitors for Steel Reinforcement

Figure 7: Third Party Test Results carried out at VJTI laboratory on the effectiveness of

Migratory Corrosion Inhibiting Admixture of SUNANDA make

C.Cathodic Protection

The basis of cathodic protection is to reduce the potential of the steel

structure which is to be proteted. There are two ways of achieving this

reduction in potential.

One is to use an external direct current source (impressed current cathodic

protection) and an auxiliary anode.

The other is to connect the structure to a metal such as aluminium,

magnesium or zinc or alloys which take up more negative potential than steel

and which will naturally corrode to provide cathodic protection current.

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Knowledge Paper on

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31

protected should be continuous throughout or should be configured o that

discrete zones can be identified within the cathodic protection system.

Where electrical discontinuity is found or suspected, bonding or connection

by cable can be provided to ensure electrical connectivity throughout. The

consequences of discontinuity in the reinforcing steel are that some areas

would not receive adequate cathodic protection and may experience an

increase in corrosion activity due to the effects of stray currents.

In addition to ensuring good quality concrete, careful design and good

construction practices this paper outlines the various state of the art

technologies – physical barriers, chemical and electrochemical, that are being

deployed with varying degrees of success and in various permutations and

combinations to help combat the gross national loss of corrosion. We have

sought to explain the causes and mechanism of failure of concrete structures

due to corrosion and then outline corrosion management and prevention

technologies including Corrosion Mitigation Admixtures, Protective

Coatings, Galvanic Systems and Impressed Current based systems.

It is generally observed and reported that age old methods such as

galvanization and fusion bonded epoxy coatings on steel are being steadily

replaced by user friendly effective methods like Migratory Corrosion

Inhibiting Admixtures and cathodic protection methods due to their ease of

use, effectiveness and lower overall cost of ownership over the life cycle of the

asset.

1. 2.Sopler, B., “Corrosion of Reinforcement in Concrete – Part Series D,” Report No.

FCB 73-4, Norwegian Institute of Technology, University of Trondheim, 1973

3. Arnold, C.J., “ Galvanized Steel Reinforced Concrete Bridge Decks: Progress Report,”

Report No. FHWA-MI-78-R1033, Federal Highway Administration, Washington DC,

1976

4. Clear, K.C., “Time-to-Corrosion of Reinforcing Steel in Concrete Slabs, V.$:

Galvanized Reinforcing Steel,” Report No. FHWA-RD-82-028, Federal Highway

Administration, Washington DC, 1981

5. Castleberry, J.R., “ Corrosion Prevention for Concrete and Metal Reinforcing in the

Construction Industry,” Materials Protection, V.7, No. 3, Mar. 1968, pp. 21-28

Conclusion:

References:

Knowledge and Strategy Partner

Knowledge Paper on

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Figure8 : Galvanic Series of Metals from most reactive to least reactive

Cathodic protection has been applied to many types of structures including

bridge decks and substructures, parking facilities, wharves and chemical

facilities. The technology is applicable to both in situ and precast concrete.

The vast majority of systems to date have been installed to mitigate further

corrosion of existing structures.

Figure 9 : Installation of Sacrificial Anodes on Steel Reinforcement in Concrete

In order for cathodic systems to be effective certain physical requirements

pertaining to the structure are necessary. One of these is the electrical

continuity of the steel reinforcement network. The areas of the structure to be

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Knowledge Paper on

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31

protected should be continuous throughout or should be configured o that

discrete zones can be identified within the cathodic protection system.

Where electrical discontinuity is found or suspected, bonding or connection

by cable can be provided to ensure electrical connectivity throughout. The

consequences of discontinuity in the reinforcing steel are that some areas

would not receive adequate cathodic protection and may experience an

increase in corrosion activity due to the effects of stray currents.

In addition to ensuring good quality concrete, careful design and good

construction practices this paper outlines the various state of the art

technologies – physical barriers, chemical and electrochemical, that are being

deployed with varying degrees of success and in various permutations and

combinations to help combat the gross national loss of corrosion. We have

sought to explain the causes and mechanism of failure of concrete structures

due to corrosion and then outline corrosion management and prevention

technologies including Corrosion Mitigation Admixtures, Protective

Coatings, Galvanic Systems and Impressed Current based systems.

It is generally observed and reported that age old methods such as

galvanization and fusion bonded epoxy coatings on steel are being steadily

replaced by user friendly effective methods like Migratory Corrosion

Inhibiting Admixtures and cathodic protection methods due to their ease of

use, effectiveness and lower overall cost of ownership over the life cycle of the

asset.

1. 2.Sopler, B., “Corrosion of Reinforcement in Concrete – Part Series D,” Report No.

FCB 73-4, Norwegian Institute of Technology, University of Trondheim, 1973

3. Arnold, C.J., “ Galvanized Steel Reinforced Concrete Bridge Decks: Progress Report,”

Report No. FHWA-MI-78-R1033, Federal Highway Administration, Washington DC,

1976

4. Clear, K.C., “Time-to-Corrosion of Reinforcing Steel in Concrete Slabs, V.$:

Galvanized Reinforcing Steel,” Report No. FHWA-RD-82-028, Federal Highway

Administration, Washington DC, 1981

5. Castleberry, J.R., “ Corrosion Prevention for Concrete and Metal Reinforcing in the

Construction Industry,” Materials Protection, V.7, No. 3, Mar. 1968, pp. 21-28

Conclusion:

References:

Knowledge and Strategy Partner

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Construction Chemicals as Enabler for Smart Cities

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Figure8 : Galvanic Series of Metals from most reactive to least reactive

Cathodic protection has been applied to many types of structures including

bridge decks and substructures, parking facilities, wharves and chemical

facilities. The technology is applicable to both in situ and precast concrete.

The vast majority of systems to date have been installed to mitigate further

corrosion of existing structures.

Figure 9 : Installation of Sacrificial Anodes on Steel Reinforcement in Concrete

In order for cathodic systems to be effective certain physical requirements

pertaining to the structure are necessary. One of these is the electrical

continuity of the steel reinforcement network. The areas of the structure to be

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Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

33

IV. Conclusion

Construction chemical industry, a Rs. 3,500 Crore industry has

contributed significantly to the development of infrastructure for the

nation. Though it is not getting required recognition for its long term

value and tangible benefits, it has been providing innovative solutions and

redefining the construction industry consistently.

Going forward too, construction chemical industry is expected to change the

dynamics of Indian construction industry in a positive manner. Forecasted to

grow at a robust rate of ~15%, the future of the industry looks bright. The

adoption of international standards, increase in high rise buildings in Tier I

cities and smart cities would drive the usage of admixtures and related

construction chemicals in India.

However, to consistently grow in long term, market players need to focus on

strong marketing to continuously increase customer awareness, building

technical skill among construction workers and on providing innovative

products with right value proposition.

Government and regulatory bodies need to focus on providing a smooth and

conducive ecosystem under its ambitious Make in India initiative which will

enable higher penetration of construction chemicals.

Construction chemicals can act as an enabler of smart cities in coming years

as such cities will require advanced materials. Various smart city requirements

like smart water management, green infrastructure, efficient transportation

and clean energy & waste management can be effectively addressed by

using advanced construction chemicals. The industry in consultation with the

sector experts can develop solutions which will enable meeting the above

mentioned requirements. be in line with the overall vision of the smart city

concept.

Construction chemical industry is expected to grow at ~15% per annum till

2019 to reach approx. Rs. 7,000 Cr and it could reach higher levels if

penetration increases and smart cities vision is realizedKnowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

32

6. Clifton, J.R., Beeghley, H.F.; and Mathey R.G., “ Nonmetallic Coatings for Concrete

Reinforcing Bars,” Report No. FHWA-RD-74-18, Federal Highway Administration,

Washington, D.C., 1974, 87 pp

7. Backstrom, T.E., “Use of Coatings on Steel Embedded in Concrete, SP – 49, L. Pepper,

R. G. Pike, and J.A. Willen, eds., American Concrete Institute, Farmington Hills, Mich.,

1975, pp 103 – 113.

8. Pike, R.G. ; Hay R.E.; Clifton, J. R.; Beeghly, H. F.; and Mathey R.G. , “Nonmetallic

Protective Coatings for Concrete Reinforcing Steel,” Transportation Research

Record No. 500, Transportation Research Board, 1974, pp 36 – 44.

9. Concrete Repair Manual, 2nd Edition, Vol 2, Jointly published by American Concrete

Institute, Concrete Society, ICRI and BRE

10. Migratory Corrosion Inhibiting Admixture POLYALK CP 293 and sacrificial anode

system of SUNANDA make were used during testing.

vChairman & Managing Director – Sunanda Speciality Coatings Pvt. Ltd., Mumbai1

vSourabh Manjrekar – Senior Associate – Sunanda Speciality Coatings Pvt. Ltd.,

Mumbai 2

vDirector - Sunanda Speciality Coatings Pvt. Ltd., Mumbai3

vDirector - Sunanda Speciality Coatings Pvt. Ltd., Mumbai4

Authors Details :

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Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

33

IV. Conclusion

Construction chemical industry, a Rs. 3,500 Crore industry has

contributed significantly to the development of infrastructure for the

nation. Though it is not getting required recognition for its long term

value and tangible benefits, it has been providing innovative solutions and

redefining the construction industry consistently.

Going forward too, construction chemical industry is expected to change the

dynamics of Indian construction industry in a positive manner. Forecasted to

grow at a robust rate of ~15%, the future of the industry looks bright. The

adoption of international standards, increase in high rise buildings in Tier I

cities and smart cities would drive the usage of admixtures and related

construction chemicals in India.

However, to consistently grow in long term, market players need to focus on

strong marketing to continuously increase customer awareness, building

technical skill among construction workers and on providing innovative

products with right value proposition.

Government and regulatory bodies need to focus on providing a smooth and

conducive ecosystem under its ambitious Make in India initiative which will

enable higher penetration of construction chemicals.

Construction chemicals can act as an enabler of smart cities in coming years

as such cities will require advanced materials. Various smart city requirements

like smart water management, green infrastructure, efficient transportation

and clean energy & waste management can be effectively addressed by

using advanced construction chemicals. The industry in consultation with the

sector experts can develop solutions which will enable meeting the above

mentioned requirements. be in line with the overall vision of the smart city

concept.

Construction chemical industry is expected to grow at ~15% per annum till

2019 to reach approx. Rs. 7,000 Cr and it could reach higher levels if

penetration increases and smart cities vision is realizedKnowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

32

6. Clifton, J.R., Beeghley, H.F.; and Mathey R.G., “ Nonmetallic Coatings for Concrete

Reinforcing Bars,” Report No. FHWA-RD-74-18, Federal Highway Administration,

Washington, D.C., 1974, 87 pp

7. Backstrom, T.E., “Use of Coatings on Steel Embedded in Concrete, SP – 49, L. Pepper,

R. G. Pike, and J.A. Willen, eds., American Concrete Institute, Farmington Hills, Mich.,

1975, pp 103 – 113.

8. Pike, R.G. ; Hay R.E.; Clifton, J. R.; Beeghly, H. F.; and Mathey R.G. , “Nonmetallic

Protective Coatings for Concrete Reinforcing Steel,” Transportation Research

Record No. 500, Transportation Research Board, 1974, pp 36 – 44.

9. Concrete Repair Manual, 2nd Edition, Vol 2, Jointly published by American Concrete

Institute, Concrete Society, ICRI and BRE

10. Migratory Corrosion Inhibiting Admixture POLYALK CP 293 and sacrificial anode

system of SUNANDA make were used during testing.

vChairman & Managing Director – Sunanda Speciality Coatings Pvt. Ltd., Mumbai1

vSourabh Manjrekar – Senior Associate – Sunanda Speciality Coatings Pvt. Ltd.,

Mumbai 2

vDirector - Sunanda Speciality Coatings Pvt. Ltd., Mumbai3

vDirector - Sunanda Speciality Coatings Pvt. Ltd., Mumbai4

Authors Details :

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Knowledge and Strategy Partner

Knowledge Paper on

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Brief profile: Fosroc India

Company overview·Wholly owned subsidiary of Fosroc International

Key products·Admixtures, joint sealants, surface treatments

Manufacturing

locations

·Bangalore

·Ankleshwar

·Rudrapur

Brief profile: SWC

Company overview

·Established in 1930

Key products·Concrete admixtures, waterproofing and cement grinding aid

Manufacturing

locations

·Mumbai (Vapi)

·Kolkata (Salt Lake)

·New Delhi (Noida)

·Chennai (Ambattur)

Other key domestic players in Indian market space include:

V. Annexure I: Major Players

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Brief profile: Pidilite

Company overview

·

Started operations in 1959, a pioneer in consumer and

specialties chemicals in India

Key products ·Adhesives and sealants

Manufacturing

locations

·Himachal Pradesh

·Maharashtra

·Gujarat

Pidilite

www.pidilite.com

Brief profile: BASF Construction Chemicals Division

Company overview

·

Wholly owned by the BASF group

Key products

·

aConcrete dmixtures, joint sealants, and

Manufacturing

locations ·Turbhe, Navi Mumbai

SIKA India

www.sika.in

Company overview ·Convened India operations in 1987

·Subsidiary of Switzerland -based parent company

Key products·

·

·Sealing: SikaBoom

Manufacturing

locations

·Kalyani, West Bengal

·Goa

·Jaipur

·Blending units in Mumbai and Chennai

Brief profile: SIKA India

BASF Construction Chemicals Division

www.basf-cc.co.in

Fosroc India

www.fosroc.com

Limited (SWC)

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Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

35

Brief profile: Fosroc India

Company overview·Wholly owned subsidiary of Fosroc International

Key products·Admixtures, joint sealants, surface treatments

Manufacturing

locations

·Bangalore

·Ankleshwar

·Rudrapur

Brief profile: SWC

Company overview

·Established in 1930

Key products·Concrete admixtures, waterproofing and cement grinding aid

Manufacturing

locations

·Mumbai (Vapi)

·Kolkata (Salt Lake)

·New Delhi (Noida)

·Chennai (Ambattur)

Other key domestic players in Indian market space include:

V. Annexure I: Major Players

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

34

Brief profile: Pidilite

Company overview

·

Started operations in 1959, a pioneer in consumer and

specialties chemicals in India

Key products ·Adhesives and sealants

Manufacturing

locations

·Himachal Pradesh

·Maharashtra

·Gujarat

Pidilite

www.pidilite.com

Brief profile: BASF Construction Chemicals Division

Company overview

·

Wholly owned by the BASF group

Key products

·

aConcrete dmixtures, joint sealants, and

Manufacturing

locations ·Turbhe, Navi Mumbai

SIKA India

www.sika.in

Company overview ·Convened India operations in 1987

·Subsidiary of Switzerland -based parent company

Key products·

·

·Sealing: SikaBoom

Manufacturing

locations

·Kalyani, West Bengal

·Goa

·Jaipur

·Blending units in Mumbai and Chennai

Brief profile: SIKA India

BASF Construction Chemicals Division

www.basf-cc.co.in

Fosroc India

www.fosroc.com

Limited (SWC)

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Manish Panchal

Practice Head - Chemicals, Logistics and Energy

Mobile: +91-9820520303

E-mail: [email protected]

Phone: +91-22-66376713

Charu Kapoor

Principal - Chemicals

Mobile: +91-9821806071

E-mail: [email protected]

Phone: +91-22-66376756

Tata Strategic Contacts

This report has been authored by:

Manish Panchal ([email protected]), Charu Kapoor ([email protected])

and Manan Agrawal ([email protected])

Our Expertise Areas

• How do I make existing businesses effective – sales & distribution strategy, pricing strategy etc.?

• How do I reduce costs (material, conversion, overheads, manpower), reduce risks, & improve productivity?

• What should be my logistics and supply chain strategies? How do I optimize costs and services?

• How can I grow – portfolio optimization, new products, new technologies, new geographies?

Typical

Client

Concerns Tata Strategic Expertise

• Functional strategies

• Integrated cost reduction ; OPTIC/ OSMIC

• Strategic Risk Management

• Procurement, logistics and supply chain optimization

• What should be the levers of growth – organic vs. inorganic growth, strategic alliances etc.?

• Growth/ entry strategy

• Business due diligence

• Target Identification and Valuation for M&A

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Founded in 1991 as a

division of Tata Industries

L t d , Ta t a S t r a t e g i c

Management Group is the

l a r g e s t I n d i a n o w n

management consulting

firm. Its strong consulting

team is supported by a panel

of domain experts. Tata

Strategic has undertaken

1000+ engagements, with

over 300 clients, across

countries and sectors.

It has a growing client base

outside India with increasing

presence outside the Tata

Group. A major i ty of

revenues now come from

About Tata Strategic

Drive Implementation & Change

Results and Benefits*

lRevenue

lMarket Share

lProfit

lLead Time

lCost

lThroughput

lKey Milestones

Our Offerings

lOrganization Structure

lWork force Optimization

lTalent Management

lCulture & HR

Transformation

lGo to Market

lMarket Share Gain

lRural Expansion

lAlternate Channels

lSupply Chain

lDelivery

lCost

Reduction

Organization Sales & Marketing OperationslCompetitive Strategy:

Entry/Growth

lIndia Entry

lM & A support

lAlliances

Develop Solutions for Strategic PrioritiesFormulate Strategy

outside the group and more than 20% revenues from clients outside India.

Tata Strategic offers a comprehensive range of solutions covering Direction

Setting, Driving Strategic Initiatives and Implementation Support

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

36

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Manish Panchal

Practice Head - Chemicals, Logistics and Energy

Mobile: +91-9820520303

E-mail: [email protected]

Phone: +91-22-66376713

Charu Kapoor

Principal - Chemicals

Mobile: +91-9821806071

E-mail: [email protected]

Phone: +91-22-66376756

Tata Strategic Contacts

This report has been authored by:

Manish Panchal ([email protected]), Charu Kapoor ([email protected])

and Manan Agrawal ([email protected])

Our Expertise Areas

• How do I make existing businesses effective – sales & distribution strategy, pricing strategy etc.?

• How do I reduce costs (material, conversion, overheads, manpower), reduce risks, & improve productivity?

• What should be my logistics and supply chain strategies? How do I optimize costs and services?

• How can I grow – portfolio optimization, new products, new technologies, new geographies?

Typical

Client

Concerns Tata Strategic Expertise

• Functional strategies

• Integrated cost reduction ; OPTIC/ OSMIC

• Strategic Risk Management

• Procurement, logistics and supply chain optimization

• What should be the levers of growth – organic vs. inorganic growth, strategic alliances etc.?

• Growth/ entry strategy

• Business due diligence

• Target Identification and Valuation for M&A

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

37

Founded in 1991 as a

division of Tata Industries

L t d , Ta t a S t r a t e g i c

Management Group is the

l a r g e s t I n d i a n o w n

management consulting

firm. Its strong consulting

team is supported by a panel

of domain experts. Tata

Strategic has undertaken

1000+ engagements, with

over 300 clients, across

countries and sectors.

It has a growing client base

outside India with increasing

presence outside the Tata

Group. A major i ty of

revenues now come from

About Tata Strategic

Drive Implementation & Change

Results and Benefits*

lRevenue

lMarket Share

lProfit

lLead Time

lCost

lThroughput

lKey Milestones

Our Offerings

lOrganization Structure

lWork force Optimization

lTalent Management

lCulture & HR

Transformation

lGo to Market

lMarket Share Gain

lRural Expansion

lAlternate Channels

lSupply Chain

lDelivery

lCost

Reduction

Organization Sales & Marketing OperationslCompetitive Strategy:

Entry/Growth

lIndia Entry

lM & A support

lAlliances

Develop Solutions for Strategic PrioritiesFormulate Strategy

outside the group and more than 20% revenues from clients outside India.

Tata Strategic offers a comprehensive range of solutions covering Direction

Setting, Driving Strategic Initiatives and Implementation Support

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

36

Page 48: Knowledge Paper on Construction Chemicals as Enabler for ...ficci.in/spdocument/20575/Kowledge-Paper-chem-may2015.pdf · Knowledge and Strategy Partner National conference on 8th

About FICCI (Federation of Indian Chamber

of Commerce and Industry)

Knowledge and Strategy Partner

Knowledge Paper on

Construction Chemicals as Enabler for Smart Cities

38

FICCI is the voice of India's business and industry. Established in 1927, it is

India's oldest and largest apex business organization. It serves its members

from the Indian private and public corporate sectors and multinational

companies, drawing its strength from diverse regional chambers of

commerce and industry across states, reaching out to over 2,50,000

companies.

FICCI Contacts

Mr. P.S. Singh

Head

Chemicals & Petrochemicals Division

FICCI

Federation House,1 TansenMarg, New Delhi -110001

Tel: +91-11-2331 6540

EPBX: +91-11-23738760-70 (Extn 395)

Email: [email protected]

Charu Smita

Assistant Director

Chemicals and Petrochemicals

FICCI

Industry's Voice for Policy Change

Federation House, TansenMarg, New Delhi 110 001

T: +91-11-2335 7350, M: +91-9873976208

W: www.ficci.com