Building materials sector to expand and thrive in 2021

A number of ancillary industries of real estate are treading the path of recovery, while the construction and building materials sector is past this stage and posting growth numbers. The year 2021 is going to be a calendar year for the sector in terms of expansion and innovation driving new trends.

With the Coronavirus weighing heavily on economic activities and consumer sentiment in India, 2020 had been a year like never before. But the economy seems to be bouncing back. According to several forecasts with a lower base and lower labour costs, the construction industry is expected to post a sharp rebound and grow by at least 11.6 percent in 2022. This is especially highlighted by the Asian Development Bank, which states that India will make a strong rebound in the fiscal year 2021-22 with its Gross Domestic Product (GDP) surging by more than eight percent as mobility and business activities resume widely.

Subsequently, India’s ready-mix concrete market is expected to register a CAGR of more than eight percent during the forecast period. The major factors driving the growth include an increase in the investments and development activities in the construction sector and the growing consciousness to be more responsible for the environment. The use of ready-mix concrete in modern constructions is an environment-friendly choice. It provides building owners with energy-efficient buildings by combining isolation with high thermal mass and low air infiltration. In addition to these factors, the growth in the ready mix concrete is aided by the fact that India is expected to see a rise in Foreign Direct Investments, leading to an increase in construction activity and acting as an opportunity for the market the future.

Similarly, tiling is another building component that is expected to see some positive momentum this year. The need for increased construction and renovation of homes is driving the need for tiles. A considerable amount of growth in the floor and wall tiles market is due to the shift in the consumer preference towards vitrified tiles. The government’s push to housing for all by 2022 is also enabling a positive drive in the Indian tile market, alongside the boost from the ‘Make in India’ initiative.

In today’s times, convenience is the most important norm. Unplasticized Polyvinyl Chloride (uPVC) doors and windows are fast becoming the sought after purchase decision when it comes to building construction. These doors and windows do not require any repainting and extensive maintenance. In fact, the Indian uPVC window and door market was estimated at USD 1,071 million in 2018 and is predicted to reach around USD 1,810 million by the end of 2025, growing at a compound growth rate of 7.84 percent during 2019-2025.

While the above factors give a perspective on the industry’s potential, the industry and the companies in the sector to leverage the opportunities will require more strategic efforts at the organisational level. And hence one of the notable shift in 2021 will be internal. 2021 will witness organisations going all out to maintain positive sentiment amongst employees. Companies will have anot just to adopt new ways of work, they will have to be equally agile to what the future awaits. The pandemic has taught many traditional industries like manufacturing, and building materials to be accustomed to innovative and flexible ways of working and this learning is paving the way for the future of work.

This article is contributed by Mr. Ashwin Reddy, Managing Director, Aparna Enterprises Limited, for 99 acres.

Ashwin Reddy, Managing Director, Aparna Enterprises Limited Express His Views on the Current Budget

Resilience: The only recipe for business continuity

The pandemic has taught valuable lessons to us. It has sharpened the bend of mind towards resilience.

2020 will go down in history as a year of change. The year has brought about many changes right from the way we live to the way we study to the way we work and it is not just one set of people or one set of industry that has been impacted with the virus. All sectors and industries witnessed a shift in the way they operate and do business.

One of the sectors that witnessed a dramatic transformation was the building materials industry. However, as adapting to change is not a new phenomenon for the building material industry, it sprung back fast. Today, from a near nil situation the industry is rapidly regaining its lost ground. Not only has production resumed, the sales and revenue are moving fast to the pre-covid levels. The recovery wasn’t easy. It required a conscious shift in approach at all levels. The industry had to accept many changes.

The building materials industry in India was always traditional in its approach to employment and work. The need to work remotely was minimum to nil depending on the place of business as the industry primarily involves manufacturing of goods. However, the pandemic forced everyone to the safety of their homes, which in turn led companies to re-look at the way it functioned. They weighed different models of working to ensure business continuity. Some adopted Work from Home models faster. They tried and provided infrastructure like computers and laptops so that work wherever possible was not halted. With people working across cities and employees unfamiliar with the concept of WFH led to coordination issues in the initial phase. It was a steep learning curve for many but with the history of adaptability that the industry has, people stepped up to the work from home culture.

While the industry managed to set its house in order, it had to face the challenge at the customer’s end. Building material industry heavily relies on the construction industry which itself was going through a manpower crisis after the lockdown was lifted. Adding to this was the logistics nightmare. It affected the sales and revenues badly. It even led to an increase in inventory affecting the work at the factories and affecting the morale of the people involved in the industry. The sector had to face the most difficult challenge that it never had experienced before – to keep the morale of the employees positive. Most of the companies in the sector stayed in touch with their employees continuously and assured positivity to the workforce. Companies adopted different formal or informal measures to constantly update their talent. With the gradual release of the lockdown, the factories began production in stages. As the organisations took required measures to ensure both liquidation of existing stocks and safety & security of workers, in no time the business and production started coming back to normal.

While lock down had presented a new set of challenges, unlock also was not a smooth sail. With the pandemic still in force, the confidence of the employees to return to work was still low. In fact, unlock was far more challenging for the management and HR teams. Apart from following the safety protocols many companies invested in improving the morale of the employees. They tried and ensured all safety protocols. In a nutshell, it made HR teams get deep into employee engagement and communication.

The pandemic has taught valuable lessons to us. It has sharpened the bend of mind towards resilience. It has further opened the doors to technological advances and hybrid mode of operation, but what stands out was the way the industry and its stakeholders stood for each other during these testing times and sailed forward successfully.

This article is contributed by Ms. Aparna Reddy, Executive Director, Aparna Enterprises Limited, for People Matters.

2021 Outlook for the building materials industry: Ashwin Reddy, Aparna Enterprises Ltd

Greater investment and fastening the infrastructure developments can bring the building materials industry back on the growth path states Mr. Ashwin Reddy, Managing Director Aparna Enterprises Ltd

Over the last decade, there have been many events that have impacted the global economy and industries at large, however, COVID 19 has been different. It has caused a spiral effect on all industries, especially the manufacturing segment. The outbreak of the pandemic and the resultant lockdown had paralysed the non-essential manufacturing segments like building materials also. In the building materials segment, companies faced numerous challenges like, disruption in the manufacturing process, manpower shortage due to reverse migration, growing gap between the demand and supply chain and logistical constraints.

However as economies are now opening, the sector has been on a revival path, recovering faster than expected. Despite the current challenges, the sector is poised to witness 5% to 10% growth in 2021 owing to planned infrastructural developments. However, for this positive optimism to convert, the need of the hour will be to assist the sector with financial impetus and regulatory reforms.

One of the major bottleneck that the industry has been facing is the complex policy structure. Government should introduce policies like single window clearance, uniform taxation, structured interest rates, quick implementation of schemes announced under “Atmanirbhar Bharat” programme, to make the regulatory system to be more proactive, time bound resolution of sectorial issues etc. to aid the revival of the sector. All of this will improve the overall ease of doing business in the segment and open new avenues of opportunities and cross-brand collaborations. Additionally, we must also ensure that all previously introduced reforms are implemented quickly and effectively.

Another crucial area that will need attention in 2021 is financial aid. Government should look at opening new financing channels both from regular banking routes, NBFCs and private equity. Financing alternatives should be made available for all tenures – short, medium and long term. Not just this, we need to ensure that the disbursement of Central and State government aids should be done within the stipulated timeline as then only it can be beneficial for all stakeholders.

From an immediate action point of view, the next government should take strong efforts in the upcoming budget. Considering the COVID19 Pandemic, Improving the health care infrastructure, Migrant Labour reforms, Logistics and supply chain, digitisation etc. should be taken into consideration. It should invest and fasten the infrastructure development projects. Additionally, reduction in income tax rates will increase consumer spending potential and this in turn can improve the growth prospectus of the industry.

While these reforms will help the sectors to revive faster than expected, for organisations, more strategic efforts are required to maintain positive sentiment amongst employees during the current times. Companies will have to not just adapt the new ways of work, they will have to be equally agile to what the future awaits. Pandemic has taught many traditional industries like manufacturing, specifically Building Materials to be accustom to innovative and flexible ways of working and these learning are paving the way for the future of work.

This article is contributed by Mr. Ashwin Reddy, Managing Director, Aparna Enterprises Limited.

Aparna Enterprises brings Italy’s faucet brand Paffoni to India

Aparna Enterprises Limited, a leading player in manufacturing and trading of a range of building materials, today announced their partnership with Paffoni, a renowned faucet manufacturing brand from Italy.

Established in 1953, Paffoni is a leading Italian brand primarily involved in manufacturing of extensive range of bathroom products. Through this association, Aparna Enterprises will be bringing Paffoni to India for the first time, as their Master Distributor.

The products will be marketed under the brand’s retail division Aparna Unispace. The Association is expected to grow Aparna Unispace division’s revenues by 20% in FY 2021-2022

Commenting on the venture,Ashwin Reddy, Managing Director, Aparna Enterprises, said, “Powered by strong R&D, advanced technology, superior quality and continuous process innovation; Paffoni has created a niche for itself in the European & Asian markets. We are delighted to partner with the brand and offer Indian customers an opportunity to own the state-of-the-art faucet systems. The branded faucet market is witnessing a steady y-o-y growth and we are hopeful that this association will help us to leverage the growth potential in the market. While initially we will be selling Paffoni product through our retail division Aparna Unispace, we plan to spread distribution of these products across India through retail partners.”

Under the new Paffoni range, Aparna Unispace will be introducing range of several products across categories like Diverters, Thermostats, Shower mixers, Sink Mixers, Basin Mixers, Health Faucets, Spouts and Body Jets. Selected products will be available for display at Aparna Unispace showroom in Hyderabad.

“Paffoni is one of the key players in the European & Asian markets, in fact, it is the leading faucet brand in Italy. As an extension of Aparna Enterprises’ vision to provide customers with high quality value driven products, we are optimistic that our partnership with Paffoni will further augment Aparna Unispace’s portfolio. We are currently launching few products under the Paffoni segment and we plan to add more products to this category in 2021”, added Mr Satish Bhargav, Chief Executive Officer, Aparna Unispace.

Launched in 2012, Aparna Unispace offers innovative and technologically advanced products for luxury Bath Spaces and elegant Kitchens, from leading European brands like – Nolte, Catalano, Fantini, Stern Hagen, Armani Roca, Tece, Effegibi, Grohe, Paffoni, StiebelEltron, Giacomini, Roca, Duravit and Schell.

Aparna Enterprises brings Italy’s faucet

Aparna Enterprises Ltd. is conferred with the Most Preferred Brand award

Aparna Enterprises Ltd., one of India’s most innovative and respected building materials manufacturers, was awarded the “Most preferred brand by Construction & Real Estate Sector (Building Material)” in the Telangana Building & Construction Material Leadership Awards 2020. This award is another feather in the cap for the company, which prides itself on quality, integrity, and trust, from its very inception over 30 years ago.

These awards recognize Leaders of Industry who have contributed immense value in their respective sectors, and have created impactful change – Leaders who believe that there is a MAD approach to their work (Make A Difference). This approach is driven by a passion & commitment towards positive social change.

Aparna Enterprises Ltd. recognized as the Dream Employer of the Year

A happy workplace is a productive workplace. Aparna Enterprises Ltd., an organization that has put employee happiness at the forefront from their very inception, have been awarded the “Dream employer of the year” award in the Telangana Best Employer Brand Awards 2020.

Aparna Enterprises Ltd. recognized as the Dream Employer of the Year 2

How the frame you choose impacts energy efficiency – Ashwin Reddy, MD, Aparna Enterprises Ltd. in conversation with ACE Magazine

Aparna Enterprises wins mandate to supply tiles for Airports Authority of India project

One of the leading players in the building materials segment, Aparna Enterprises Limited has been awarded a prestigious contract to provide Double Charged Tiles for Airports Authority of India residential quarters being constructed at Trichy and Coimbatore. The contract is received through Teemage Builders Pvt. Ltd. The approximate tender value for this project is INR 60.38 Lakhs.

Through this partnership, Aparna Enterprises will be delivering tiles for area spreading over 1.48 lakh square feet over the course of the next three months. This contract was awarded post excellent performance of Vitero Double Charged tiles in International arrival terminal of Chennai airport. Earlier this year Vitero Double Charged tiles were used in Chennai airport International Terminal (T3). These tiles passed all quality tests and their performance was well appreciated. Based on this performance, Vitero tiles was chosen for the AAI residential quarters in Trichy and Coimbatore.

Speaking on the recently awarded projects, Mr. Ashwin Reddy, Managing Director, Aparna Enterprises Ltd. said “At Aparna Enterprises, we have always been dedicated towards providing quality products and services to our clients and partners. We take pride in being recognized as a trusted building material provider for important government projects. Over the years, we have been successfully delivering to various government undertakings and this partnership is testament to our commitment & hard work. In the past we have catered to many projects by reputed builders and government departments in several cities and we look forward to servicing more entities across the country.”

“Government sector is key focus area for us. The increased focus by the government towards infrastructure development is a positive move and we are confident that it will help us to further strengthen our business in the sector.” added Mr. Ashwin Reddy.

The company has been associated with key government projects for enterprises like Karnataka Railways, Kempegowda International Airport and the DRDO. More demand is expected for various building materials in the recently awarded projects in the coming months as well.

Fast-tracking infrastructure projects will boost the demand for building materials

Having said that, timely clearances and approvals especially environment clearances and necessary funding and support from the banks and financial institutions is necessary says Ashwin Reddy, Managing Director, Aparna Enterprises.

How do you see Atmanirbhar Bharat to impact your sector?
It is a very good initiative by the Central Government to promote domestic goods. There will be an increased demand for domestic goods. However, the key is the scale and quality of goods which can be visible only over a while.

What kind of disruption, if any, did you witness in your supply chain owing to the pandemic?
The demand had reduced owing to the lockdown, however, construction activities are resuming gradually. We did not face much obstruction in our supply chain as we manufacture most of the raw materials for our products in house.

In terms of current market dynamics, what will be the new normal for the use of RMC after 2020?
Considering the monsoon would be over and labourers would have returned from their native places, we expect normal demand to resume from October 2020.

As an industry stakeholder do you feel the impact of digitization, if yes, to what degree?
The industry is slowly moving towards digitization and started using technologies such as Google Maps, vehicle tracking devices. But the significant progress is yet to be made in this regard as the industry is predominantly dominated by the small players.

What kind of infrastructure building initiatives should the government focus on to reinvigorate the construction sector?
The government during its 2020-21 union budget had proposed infrastructure projects worth Rs 105 lakh crore for the next five years. Fast-tracking the projects will boost the demand for raw materials, thus assisting the growth of building materials industry. However, there are certain concerns which need to be addressed to ensure the revival of the building material industry

The primary ones are

Timely clearances and approvals especially environment clearances.
Necessary funding and support from the banks and financial institutions, especially long term funding support in case of long gestation projects and adherence to the contracts (i.e. once it is awarded it shall not be cancelled unless the default is from the developer).

The government had recently announced a six-month ‘no-cost-extension’ for government-affiliated contractors dealing with railways and roadways. While this is a welcome move, it would be far more impactful if this is also extended to all aspects of infrastructural development. Greater investment by both state and central governments towards infrastructural development is another aspect that will boost the demand for raw materials like ready-mix concrete, cement, tiles, uPVC etc.

In their recent proposal, the government opened six more airports for auction under the PPP model and also announced more investments for creating world class facilities in twelve airports across the country. More sanctions like these for roadways, railways, airports, smart cities, community developments etc. is what is needed right now for a stronger revival. The government should also quickly take up stalled residential projects, ensure availability of adequate funds and resolve the interstate logistics issue.

What steps can be taken to utilise an RMC plant especially on sites surrounded by residential areas so that air pollution is minimized?
Measures such as covering the entire plant with GI sheets and a frequent sprinkling of water on the aggregates and laying of proper approach roads, Use of latest BS compliant vehicles for the transportation of both raw materials and Ready Mix Concrete, maintaining of greenery in plant surroundings will help in minimizing the air pollution.