With the right reforms, building material industry in India is expected to grow by 8%-10% in 2022 – States Mr Ashwin Reddy, Managing Director, Aparna Enterprises Limited

One of the industry having faced maximum impact of the pandemic in 2020, the building materials segment has displayed sheer resilience as it slowly bounced back in 2021. The industry regained its mojo at a steady pace. While initially in April & May, the second wave disrupted the momentum, from June onwards, the revival trajectory has been positive. This resurgence was further aided by the policy reforms like GST, RERA, REIT which were introduced to provide impetus to the sector. In 2022, provided the reforms like – Availability of housing loans to all segments (especially Affordable housing where the customer credit profiles may not meet standard financing norms), Long term funding support in case of long gestation projects and compulsory adherence to the contracts irrespective of political or policy changes, Continuation and further refinements in the tax sops available for housing industry and Recognizing Real Estate sector as part of Infrastructure, are introduced and financial impetus is provided to the industry, the sector is expected to show positive growth.

Today, the building material industry stands at around USD 225 Billion in terms of market size. The projected growth rate for 2022 is around 10%, and it is estimated to clock a CAGR growth of 8% to 9% in the next five years.  In fact, sub-segment within this industry like Ready-Mix-Concrete, uPVC, Tiles are all gearing up for an exciting 2022.

 The Ready-Mix-Concrete, uPVC and aluminium doors and windows, and the tiles segments are expected to recover and become stronger by gaining most of the pre-pandemic momentum back. The business and the demand looks promising. With people shifting to Work-from-Home/Hybrid working, and thus spending more time within the vicinity of their homes, there was an increase in the demand for building materials this year and this optimism will grow in 2022, where quality conscious customers will be further driving the demand and sales especially for high end products in these categories.

RMC demand in the retail segment is also expected to grow, given the increased construction of residential and commercial real estate projects. In the case of doors and windows, sliding & casement applications will continue to dominate the overall demand, given their superiority in terms of aesthetics, quality and functionality. Glazed Vitrified Tiles (GVT) are estimated to grow more in demand, due to their features like customisability and varied design options.

While demand forecasts and consumer buying trends look promising, this growth can only be made seamless by supportive government policies. There should be provisions to allow housing loans for all segments, irrespective of financial status. More often than not, affordable housing schemes and loans have to pass through tedious scrutiny because customer credit profiles may not meet standard financing norms. By introducing these provisions, surplus funds will be available in buyers’ hands thereby increasing demand. Developments in the housing sector directly impact the building materials industry, and by introducing norms that would enable greater investments and streamlining tax rates, the government would be bringing in a much needed relief for the segment. Giving real estate an infrastructure status will also boost the morale of the industry as a whole, and clearances will be faster. The scope for financial lending will also increase, thereby boosting completion of projects in the pipeline 2021 was also the year of aggressive technology adoption and incorporation. COVID-19 ushered in a lot of changes, both in work and home environments. From automating manual processes to leaning and incorporating new technology processes, the industry has undergone a huge paradigm shift. This is expected to strengthen further in 2022. Technology is going to continue playing a major role in 2022, especially with reference to home automation, and automation at work places. Innovations in building products like facial recognition, auto sensor lighting etc., are predicted to be some of the stand-out trends for 2022. Furthermore, products which intend to avoid human touch to prevent COVID spread, are anticipated to see an increase in demand.

The increasing cost of input materials is still impacting the overall demand and cash flow, the industry remains hopeful that the scenario will change and the coming year will see the prices and the situation stabilising.

Another key change the industry would witness is the shift to sustainability. With COP26 (26th UN Climate Change Conference of the Parties) making resolutions to fight the climate catastrophe, there  is an increased focus on using and producing environmentally sustainable products, especially in the case of this industry. In 2022, the industry should attempt to minimise impact and use 100% recyclable products or eco-friendly products etc. wherever possible, for a sustainable future.

The RMC market is on its path to a steady recovery, says Ashwin Reddy, Managing Director, Aparna Enterprises

How is the market for RMC shaping up in India?
The RMC market is on its path to a steady recovery after the tumultuous first and second waves of the pandemic. The first lock down resulted in the stalling of all ongoing projects, construction activities had come to a complete halt. The initial period where everyone struggled to find a foothold amidst the pandemic impacted the industry significantly. Businesses were able to overcome the situation only after the lockdown was lifted, which led to the resumption of economic and construction activities across regions, and the building materials industry also got back on its track gradually. The overall demand is seeing an increase thanks to the resumption of construction projects across regions. Other construction activities are also resuming gradually. Government’s thrust on infrastructure development has also resumed and is helping the industry to recover the lost ground.

Which are the RMCs you have introduced in the market in the recent past?  What is the USP of the RMCs?
RMC consists of cement as main ingredient with several other standard components – Aggregates, sand and water. What differentiates RMCs is different grades of RMC which is customised as per structure’s requirement. Aparna RMC offers concrete mix in different grades from M-05 to M-80. RMC is customised concrete mix which is ready to use at the construction site. RMC ensures constant ratio of various ingredients across different batches, to ensure uniform strength. For high rise buildings, the concrete mix is lifted through special pumps.

What are the innovations going on at your R&D to bring out strong and sustainable concrete?
We use state-of-the-art machinery to produce quality RMC across batches. Aparna RMC uses large storage bins to ensure uninterrupted supply. Aparna RMC uses Schwing Stetter equipment for production and batching. R&D is a constant activity to ensure usage of optimum cement quantity and other ingredients. A lot of research is done on a continuous basis for supplying self-compacting concrete used in high rise buildings

With stringent regulation in force for project completion, how are your RMC helping in faster completion of projects?
Continuous supply of RMC contributes majorly in timely completion of any project. We always map our production capacity with our customer’s requirements. RMC consumption has been increased at steady pace due to shift from traditional wall system (Bricks and Blocks) to concrete walls on account of increase in high rise buildings and strict timelines. RMC has various grades/design mixes which can cater to all the building concrete requirements. This is also one of the pull factor for RMC.

There are reports of building collapses during monsoon; being a leading RMC manufacturer what role RMC can play in protecting the building from collapse?
Building/structure collapse due to concrete mix is a very rare possibility. Building structure collapse happens due to faulty design of the foundation and unauthorized alterations to the structure.

How is the unorganized nature of the RMC industry affecting the organized players? Has the introduction of RERA and GST helped in expanding the organized players market share?
With the introduction of RERA and GST, majority of the project business is catered by organized RMC Players. However since the entry barrier is low, unorganized players are playing at considerably low product price for catering to the small & big projects.

How are you overcoming skilled manpower shortages?
One way of overcoming skilled manpower shortages is to up-skill the existing employees. The term however is not restricted to just technical skills, but it also includes skills like being mindful of safety, team work and mental health in the work place; everything that contributes to fostering a wholesome work environment. We continuously invest in training our staff on all important topics to increase their awareness.

What are the challenges faced by RMC players in India?
The pandemic brought about several disruptions in business continuity of building materials products. While business activities have resumed, certain factors continue to slow down the momentum and growth. A key factor that impacts the demand for RMC is the increase in the prices of raw materials. Fluctuation in cement prices is also a key factor impacting the industry. Rising fuel prices coupled with cost rise in the supply chain transportation are also aspects that influence the industry’s revenue and growth. Decline in availability of cash or cash flow also affects the demand-supply chain for commercial and residential constructions which has direct impact on the RMC industry.

Your take on the government policies and regulations and the tweaks required to propel the sector?
The building material industry is one of the largest employers in India. A key driver that enables the growth in this industry is the infrastructural development of the country. The government during its budget 2020-21, had proposed projects amounting to INR 105 lakh crores for the next five years, and had announced the fast-tracking of projects. However, there are certain pain points that require government attention, when it comes to infrastructural development in India. A few of them are; timely interventions and quicker clearances and approvals especially in terms of environmental clearances; adequate funding support from the banks and financial institutions. Long term funding support in case of long gestation projects and compulsory adherence to the contracts irrespective of political or policy changes; launch of projects like the Housing for All 2022 scheme, etc, will provide the much needed boost for the industry, as all these initiatives will need supplies of RMC.

Furthermore, all recent policy reforms such as GST, RERA, REIT, etc, are all aligned to strengthen the future of construction industry in India. However, vision and investment alone would not be enough to turn around this infrastructure dream into a reality; there are many planning, technical and financial oriented issues that needs to be taken into account and handled immediately and efficiently.

Lastly, what are your growth plans for your organization for the next three years?
Our aim is to further strengthen our market share and presence in the RMC segment. We are looking at utilizing our production capabilities to the fullest and increase consumer base in both project and retail segments. We are also increasing the number of RMC plants to have greater coverage of the market.

Infrastructure development to boost demand for RMC

Sustainable building practices, aided by green building materials is imperative to tackle climate challenge

T Chandrasekhar, director-technical, Aparna Enterprises, wants to help the cause

The COP26 (26th UN Climate Change Conference of the Parties) saw key resolutions being made to fight the impending climate catastrophe that is looming over the world. To achieve the goal of cutting emissions by 50% by 2030 and reaching net zero by 2050, the building materials industry has to switch to greener alternatives, and the change has to happen now.

While the goals have always been clear, the big question was always “how”? For years, real estate, and particularly the building materials industry operated in a very traditional manner. In order to reduce emissions, and the damage it can create to the environment, the industry also has to reduce the wastage of the base raw materials. Reports indicate that developmental projects are responsible for almost 50% of raw materials consumed globally. For the industry to effectively aid in the decarbonisation mission, the key objective would be to switch to the immediate green alternative available and move upwards from there. While a complete, radical change seems far-fetched due to the current landscape of work, there are some steps that can be taken to aid this change:

*Efficient use of Exterior Façade: Big and small residential and commercial structures struggle with managing the energy efficiency of the building. A thoughtful use of exterior facade helps in managing both optimal heat transfer and sufficient natural light to manage energy efficiency inside the space and reduce energy bills. Building glazing can have different levels of tinting and reflectivity in order to deflect external heat and help improve the energy efficiency of the building.

*Switching to M-sand, from natural sand: River sand is an important part of the concrete mix as it helps in binding all the other elements in the cement mix. The construction process cannot be completed without the sand component. For years, illegal mining and excessive extraction of sand from the river beds has caused massive environmental damage. Manufactured sand (M-Sand) is a better alternative to river sand and is equally suitable for all construction activities. It is also cost-effective, so on one hand, it saves the environment and discourages the illegal trade of sand and on the other hand, it reduces the overall cost of construction

*Windows and doors made of Aluminium and uPVC: A critical step to aid in the process of de-carbonization is to cut down on the usage of wood. uPVC and Aluminium both are a greener alternative to traditional wood for windows and doors. They are completely recyclable, require less maintenance, and stay strong for years. Furthermore, uPVC and thermal break aluminium profiles do not conduct heat, so, when combined with proper glazing they can help in reducing heat transfer inside the space and in turn, increase the overall energy efficiency of the structure.

*Utilizing technology and available resources to transform manufacturing of building material: Just like the construction of a structure, much efforts are seen in revolutionizing the manufacturing process of building materials. For example the kilns which make beautiful tiles consume huge amount of energy to complete their task. Many organizations have switched to Natural Gas to fuel these kilns instead of traditional options.

*Adopting greener practices during the design process: Architects and designers today are mindful in their work and ensure that efficient use of natural resources like light, air, water and space are kept on priority. While these resources are getting scarcer by the day, their efficient utilization and conservation is pressing need of the hour. Concepts like rainwater harvesting, sewage water re-cycling for gardening, smart lighting, smart glass are widely used in projects now to make a structure friendly for both – its inhabitants and the environment.

There are still miles to go to reverse the harmful consequences of human actions on the environment. The immediate action point here would be to implement ways to limit the environmental impact during construction and other developmental projects. Quick sanctions by governments and regulatory bodies, usage of good quality materials, and a willingness to adopt emerging sustainable practices is the key to this. This decade is the most crucial to action out the plan to keep global temperatures in line with the agreement. All of us, right from the corporations to the government, to the people need to work together to build a resilient future for the generations to come.

 Inspiring women of India

 The present and future of ready mix concrete industry

by Ashwin Reddy, Managing Director, Aparna Enterprises

The Ready Mix Concrete market has undergone a journey of resilient growth over the past two years. Operations albeit were little slow, the industry has picked up pace particularly in the last couple of months. The scenario as compared to 2020 is completely different, and it is indeed a welcome change. According to industry reports, the ready mix concrete market is set to record a growth of around 11.6 % in 2022, and all players in the market are eagerly anticipating the complete comeback of the segment.

Thanks to the increasing residential projects, and strong government interventions, RMC in particular is a material that has seen a significant rise in demand. The COVID-19 pandemic solidified the importance of owning a home, in the minds of the consumers. Real estate activity has been steadily growing, and as an extension of it, so has the building materials/ construction segment. The biggest positive here is that the demand has started to match the pre-COVID levels; something that seemed to be an impossible feat a year ago. Government interventions are also central to the boosting of the demand, and the Indian government, in the wake of the pandemic has made efforts to improve the liquidity in the eco-system and even invest in development projects like the “Housing for all scheme” and the Smart Cities scheme to name a few. A significant portion of this demand is also expected to come from the construction of mega office spaces, a trend that has already started owing to the transition from work from home to work from office. COVID-19 has brought significant changes in the design of new developments in the seating layouts, additional facilities for the employees. Technology is also introduced in a significant way.

The future however doesn’t seem too bleak. There is hope and there is potential demand that is forecasted to provide a much needed boost to the RMC space. Things have actually started moving, and the industry is no longer in a slump. The launch of new projects from the Government’s side does give great expectations to the industry. However, the actual impact would become clear in future when these projects are rolled out and when the expected demand is actualised. Several projects that were stalled have been green-lit now, and the road to recovery is becoming a lot clearer. Perhaps the biggest silver lining currently is that the RMC industry is resilient in nature and takes very less time to resume the supply. The consistency, quality and the ease with which RMC can be delivered is unparalleled. As a bonus, it is also an environment friendly alternative, a critical quality, especially at a time when the environment is facing a global crisis. 2022 comes with a galore of opportunities and it becomes vital now more than ever for players to capitalise on this and strive to build an ideal economy.

While the scenario has been largely positive, there are a certain number of challenges that needs to be addressed. The lack of standardisation, overall in the industry is an issue that though is gradually being addressed, but there is still a long way to go. In order to achieve the process compliance and meet the quality checks, and the global industry standards, a unified system needs to be in place. The lack of entry barriers in the space is also a matter of concern. There is a need for uniform quality standards, to make mandatory and highest level of certifications for the plants and products such as ISO, ISI etc. which may help the industry to become more organized.India’s Ready-mix concrete (RMC) market is set to register a CAGR of more than eight percent during the forecast period of 2021-22.

RMC will continue to nurture capabilities towards infrastructural development

Fenestration is an integral part of any residential or commercial structure

Rising energy & material costs and sensitivity towards the environment have increased the importance of fenestration more than ever before, says Aparna Reddy, Director, Aparna Enterprises Pvt. Ltd.

Are the fenestration techniques of traditional Indian architecture useful in contemporary times?

The traditional Indian architecture involved fenestration to improve ventilation and lighting by letting the natural air and light inside any given space. However, the objective of fenestration has entirely changed in current times. Nowadays fenestration is aimed at increasing energy efficiency inside the space and reducing energy bills. While we still need the natural light to come inside the given space, we also need to maintain temperature inside the building/house. Advent of technology has enabled sustainable and green materials for this purpose which were not available in traditional times.

How has fenestration become an important factor in sustainable building design?

Fenestration has always been an integral part of any residential or commercial structure. Rising energy & material costs and sensitivity towards the environment have increased the importance of fenestration more than ever before. In addition to this, advancements in technology have facilitated materials which can help in reducing carbon emissions and increasing energy efficiency of the building, making it an important part of any construction.

What kind of fenestration is desired to reduce lighting and HVAC cost? What should be the corresponding R-value and U-value of the doors and windows being used?

Type of fenestration depends on the role and objective, for reducing the heat admitted into the building, glass with a lower solar heat gain coefficient (SHGC) should be used. If heat reduction is primary, we have to compromise on light transmission. Hence it is a tradeoff between the two characteristics and it is difficult to specify a certain number or percentage.

For reduction of heat, reflective, tinted and thicker glasses will help. Reflective glasses control solar heat by reflecting it outside. Tinted and thicker glasses absorb more heat but subsequently reradiate the heat outside. U-value is a non-solar heat measure and is the heat transfer coefficient. If the window system has low U-value, it will transmit less non-solar heat. R-value is the reciprocal of U-value, and a high R-value indicates less heat transmittance. While specifying a frame material (aluminum/UPVC) or glass (SGU/IGU/Laminate), it becomes necessary to prioritize between lighting, heat gain and acoustics.

When it comes to choosing uPVC or Aluminum windows for mass consumption properties and individual properties, what are some of the pointers to be kept in mind?

Due to their robust and easy usability nature, both uPVC and Aluminum have come up as preferred material for window and door needs in current times. However, the production, extrusion and installation of both these materials includes many technical aspects which end users might not be aware of. These technical aspects though not visible from outside, have huge impact on the longevity of the end product, hence it becomes important that these materials are purchased from a trusted and reliable vendor. Opting for end-to-end system integrators brings peace of mind for end consumers as these vendors take care of extrusion and installation along with warranty for their work done. Since these windows are highly customizable and durable, the application and purpose of window or door should be well thought in advance. For e.g., if prevention from mosquitoes is important then a separate track or panel should be planned for mesh shutter, glass configuration should be thought of in advance based on required energy efficiency inside the space etc.

Technology adoption in Building materials industry by Mr T Chandra Sekhar, Director – Technical, Aparna Enterprises

For over a decade now, adoption of technology has been the core focus of industries all around the world. The million dollar question they face is “How to adopt technology practices that would suit their ecosystem?” Digitisation and automation are no longer futuristic concepts and have become imperative part of industries.

Even the building materials industry is no stranger to this paradigm shift. The industry which traditionally has been highly dependent on manual labour, has also been significantly adopting new age technologies to optimize production, maximize output and create seamless manufacturing process. Let’s take a look at some of the key areas where technology is re-defining the building materials industry:

• Artificial Intelligence and Robotic Process Automation in the manufacturing and packing process of tiles:With artificial intelligence being incorporated into the production process, long repetitive tasks have been automated and the productivity has also improved. Many companies are completely automating the processes like mixing raw materials, cutting & polishing tiles and segmenting & packing tile units; all of which used to be manual once upon a time. This is not only efficient but it also ensures uniform quality across products. Introduction of digital printing technology in tiles has expanded the range of designs that can be produced. This advancement also leads to client satisfaction as this enables tile manufacturers to print designs their customers want, while retaining important features and properties of the given tile. The incorporation of nanotechnology in polishing has enabled tiles to look shinier, and has improved its surface consistency and durability.
• The automation of the production process of Ready Mix Concrete (RMC):Cement mix is the foundation of any construction process; both literally and figuratively. Most RMC plants today are fully computerised, completely armed with precise and automatic processes to produce the highest quality cement mix in large amount of batches. Perhaps the most practical application of technology in this segment would be the customization of moisture ratio in the cement mix and transportation of RMC. In the past, mixing of cement and the transportation of this cement to the higher floors was a laborious and time consuming process. Thanks to the highly efficient pumping technology today, the transportation of the cement mixture is a productive, efficient and automated process.
• Use of advanced German and Italian technologies to manufacture doors and windows Technological advancements are also slowly bringing international standards to the manufacturing process of raw materials. Especially in the case of uPVC and aluminium. uPVC and aluminium are the most sought after materials for windows and doors today. Not only are the windows and doors made of these materials totally recyclable, but they are also manufactured with absolute precision using advanced German and Italian technologies without a lot of human intervention. This brings in many benefits like more room for customisation, a more uniform finish in the look and feel of the products, enhanced durability and quality, the ability to experiment with designs and efficient locking systems.
• Use of technology to improve the quality of raw materials:Good quality raw materials provide the base for every great product. Raw materials are the core, and hence their quality becomes critical. Adoption of technology and enabling of automation has made companies immensely improve the superiority of the raw materials that they use. An example of an efficient application of technology and automation would be the new machines equipped with automation technology that produce and sort Crushed Rock Fines and Manufactured Sand. Manufactured sand is a cost effective and efficient alternative to river sand. As an added bonus, it minimises environmental impact and saves the river beds; all the more reason to adopt new and efficient technology.

The building materials industry is swiftly striving towards adopting more technology practices today. As the industry largely depends on manual work force, the disruption in operations due to ongoing pandemic served as an example and emphasised the need to be technologically adept and future ready. More and more companies today are realising that augmentation and automation are the way forward and these will soon become critical for business continuity for building materials segment.

Building Human Capital: The Upskilling Picture

It is important to note that upskilling does not just involve technical skills, but it also includes skills like safety, teamwork and mental health in the workplace; everything that contributes to building a holistic work environment that fosters growth

We are at the cusp of the second wave of the COVID 19 pandemic and the resultant partial lockdowns across states. However, the impact on industries has not been as adverse as the first wave which has caused a complete shutdown of operations. Last year was a learning experience for industries like the building materials segment, especially from a workforce point of view as this sector is fundamentally shy of virtual working or hybrid working and requires on-ground presence. The need of the hour thus was to ensure that the talent is up-skilled to stay relevant to the new world of work, especially w.r.t digital skills, niche domain expertise, managing teams virtually, behaviour skills, among others.

Today the industry is better prepared for unprecedented events, constantly innovating on all fronts. Up-skilling and reskilling has become an indispensable part of the sector’s work culture. Here are the four key areas where up-skilling efforts have been rampant:

Technology is the god of all skills today: Traditionally the skills used in building material industry involved manual labour extensively. The precise execution of a project relied on the dexterity of the workers, and it required large amounts of physical labour. However, today, this trend is going through a paradigm shift, and it is being replaced by employees who possess skills based on the accurate use of modern and growing technology. It has now become important for employees to learn how to implement and operate machines with advanced technology, and the only way to do that is through upskilling.

Staying relevant with changing times: The COVID-19 pandemic and the rules of social distancing that comes with it, has changed the way factories and manufacturing units operate. This shift is most likely to stay permanent even when the pandemic is over. Some of the job roles are also seeing some strategic shifts, especially from a digitization point of view. Upskilling and reskilling efforts have significantly increased on this front to better equip workers to stay ahead of the curve and stay relevant.

Behavioural skills and mental wellbeing is crucial as well: Today only digital and domain skills are not enough, companies are also focusing on hiring talent with behavioural skills like team management, soft skills, presentation skills, communication skills, managerial skills etc. This is also in the building materials industry. In the current scenario training people for mental wellbeing has also become important and many companies in this segment are empowering employees and workers to manage their work and mental wellbeing by introducing different programs and initiatives.

Hybrid workforce requires hybrid training methods: This sector employs both white-collar and blue collar workforce and hence one suit that fits all for up-skilling is not suitable to meet the requirements. It is important to identify and work on different training methods, tailored for different employees. There are differences in the training needs for a corporate employee and a factory employee. For instance, training on topics like fire safety, road safety are suitable for factory workers and RMC truck drivers, whereas training on topics like team work, emotional intelligence, conflict resolution sessions is advisable for corporate office employees, and on soft skills sessions for the sales teams. It is important to note that upskilling does not just involve technical skills, but it also includes skills like safety, team work and mental health in the work place; everything that contributes to building a holistic work environment that fosters growth. Setting up a round-the-year training calendar for employees is crucial to ensure that the right kind of skills are built through the year.

The building materials industry is estimated to record a CAGR of 15% and reach INR 29,782.2 billion by 2024. Owing to the COVID-19 pandemic, growth may have slowed down to some degree but with the right impetus like the boost to the affordable housing segment, government’s push towards infrastructural development, and the growing real estate segment, building materials industry is expected to bounce back with rigor in no time. To aid this recovery and growth, having the right skilled talent will be crucial for organizations. And thus, companies are likely to increase their efforts as well as investments into skilling their employees and building a strong human capital pipeline

(The given article is attributed to Aparna Reddy, Executive Director, Aparna Enterprises and solely created for BW People)