The Indian construction chemicals market has shown a strong growth rate of ~17% p.a historically due to heavy construction activities in the country, esp. Related to infrastructure. The construction chemicals market in india has grown from INR1,400 cr in 2007 to approx. INR 3,600 cr in 2013 and is expected to grow close to 16% p.a for the next few years. This will primarily be driven by improving awareness of usefulness of construction chemicals, emphasis on infrastructure and the new 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 would also have a significant positive impact on demand of construction chemicals.
The industry's biggest challenges are low awareness regarding the benefits of construction chemicals,adequate knowledge on proper usage of these chemicals, lack of enforcement of quality standards on construction activities. About 85% of contractors and builders are not aware of the advantages of using construction chemicals and have limited knowledge on their proper application.