Nippon Paints announced its strategic expansion into the Construction Chemicals market. In line with its Global vision, Nippon Paint India is expanding its portfolio beyond the paint and coatings product range. As a part of its expansion plans, the brand is all set to offer products and solutions under the broad categories - dry mix, repair and maintenance, construction chemicals, and waterproofing. The products will be focusing on three key market segments: During construction: Concrete admixtures & membranes. Post Construction (New buildings): Concrete repair, Water proofing, Hybrid sealants, and Adhesives. Repair & Maintenance: Protective Coating, Sealants, and Water proofing.
The increasing number of residential and commercial building constructions, innovation in architectural design and engineering, affordable homes, and the growing trend of Urbanization are expected to drive this category. The technology behind these products is either the brainchild of Nippon’s in-house research team or results of recent mergers & acquisitions that have taken place in this sector globally. Liquid-based products will be manufactured in the Chennai unit, aerosol-based products will be supplied by acquired companies and volume/powder-based products to be manufactured by strategic manufacturing partners. Through this expansion strategy, Nippon Paint will make its products available across various segments.
Through this venture, Nippon establishes itself as a key player in the overall construction chemicals market, and the provider of products that encompass protecting buildings at each stage of construction, ensuring longevity of the structures. While there is a potential to expand dealer network from paint dealers to tile fixers and hardware suppliers across tier 2 & tier 3 cities, the focus will also shift towards training different sets of people to become expert solution providers: Painters will be trained in water proofing segment. Tile laying team will be trained on adhesive solutions. Small-scale contractors, masons and other allied teams would be trained in using concrete admixtures and other chemicals.
Highlighting the opportunities available in this segment and the need for such technology, Mahesh Anand, President, Nippon Paint India (Decorative) said, “We are happy to expand into the Construction chemical solutions market. Pegged at being an INR 12,500 Cr market, this segment provides ample opportunities for growth and innovation. Given the promising outlook and low penetration in this segment, we anticipate high demand for quality construction chemical solutions. Furthermore, with Nippon’s strong presence, market know-how and distribution strength, we are positioned perfectly to ace this segment. This also provides an opportunity to grow our ecosystem of dealers, workers, and vendors.”
The construction industry has started focusing more on its construction chemicals segment where the focus has shifted from the repair and maintenance segment alone to other stages involved in construction like pre-construction and during construction. In 2021, the housing sales in India had increased by more than 51% compared to 2020. Though awareness is still very low in this huge market segment, research reports project a CAGR of over 10.4 % in the next 3 years. This is expected to increase the present per capita consumption by 2X.
