Flooring Foreseeing a Focused Demand in India – Industry Analysis
The Indian flooring industry has been passing through an exciting period, thanks to the influx of newer materials, technology, and specialized machinery. Project scales, especially with respect to industrial and commercial flooring have increased dramatically in recent times. Time management assessment has one of the significant development of this sector. With the growing disposable income and expenditure of consumers on better quality products as well as aesthetically appealing ones, the booming rate of urbanization has created a significant momentum for the demand for tiles and another flooring across the world. “The swift rise in urbanization, as well as industrialization, has created a considerable increase in the rate of construction activities, consequently increasing the scope of growth for the global flooring market,” adds the analyst. The rapid infrastructural developments in developed economies have increased the demand for flooring products remarkably, boosting the overall market.
According to a research report released by Transparency Market Research the global flooring market was valued at US$247.56 bn in 2016. The analysts working on the report have predicted it to register a healthy CAGR of 6.40% between 2017 and 2025. The global flooring market is therefore expected to be evaluated at US$429.25 bn by the end of 2025. Currently, tiles are showing a higher demand than other product types the market. In accordance to region If we consider region specification according to transparencymarketresearch.com Asia Pacific, North America, the Middle East and Africa, Europe, and Latin America have emerged as the main regional markets for flooring components across the world. Compared to other regional markets, Asia Pacific has been reporting a higher demand for these components and accounted for more than 42% of the overall market in 2016. With a significant expansion in the construction industry in various Asian nations, thanks to the high economic growth, the Asia Pacific flooring market is anticipated to continue on the top over the next few years.
The new government in India at the helm of affairs has clearly pointed out to giving a massive push to infrastructure development and industrialization. The road maps for the development process have been unveiled. The prospects of the commercial realty sector too have been looking brighter by the day. Given all these positive sentiments, there is a sense of buoyancy in the flooring industry. The growth triggers in the case of the flooring industry have been similar to those of other segments of the construction industry.
The market overview: Opportunity of every kind
The experts from different from segments of the industry are finding scope and opportunities and each is different from other. Every type be it Epoxy Self Level Flooring or Floor Coating, be it Reinforced Industrial Flooring or Polished Concrete Flooring, be it Anti Static Flooring or simple Concrete Flooring. Not only these Flooring Treatment as as well as floor polishing machines are in high demand. Flooring contractor too are foreseeing a huge market opportunity.
Epoxy Self Level Flooring has always been dominant across the country. Self leveling epoxy is a type of epoxy floor coating that can be applied over concrete floors to create a durable, low maintenance flooring surface. Specifically, self leveling epoxy flooring can be applied over old cracked and damaged concrete floors to create a smooth, seamless surface. This is because during application the epoxy spreads out to fill cracks or chips in concrete floors.
Mr. Subrato Ghose,
Industrial Corrosion Controllers
Mr. Subrato Ghose, CEO, Industrial Corrosion Controllers, Epoxy Self Level Flooring expert believes that Driving Factor The main driving forces in the Asia-Pacific region include growth in spending capacity, rising urbanized population, and increase in industrialization. Improved living standards in developing economies would demand improved sanitation and hygiene requirements. Cities in the Asia-Pacific economies would hold 54% of the world’s urban population, thereby creating the largest workforce in the world. The emerging economies such as India and China have played a vital role in the rising growth rate of the industry.
Growing urbanization in emerging markets in India are expected to boost the spending for vital infrastructure sectors, such as hospitality, healthcare, transportation, and retail. Increasing residential applications in emerging markets are also expected to drive the growth of the flooring market.
Assistant General Manager (BD), POG (SI),
Similarly Kalinga Kotathattu, Assistant General Manager (BD), POG (SI), STP Ltd believes that Flooring products are mostly epoxy and polyurethane based. Industrial flooring system 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 products are largely used at the finishing stage of the construction. Major commercial complexes and shopping malls prefer such products. Flooring systems requires ease of maintenance with toughness and durability required in challenging industrial and commercial environment. He further elaborates that the Flooring is the big segments with a share of approximately 14% out of total construction chemical business. Flooring system market has >80% business in new built. The market for such flooring in India is valued approximately INR 600 Cr in 2017. Epoxy and floor hardeners constitute the major share of the market followed by PU based flooring system.
Floor coating market is foreseeing a huge demand among consumers who wants their work done as fast as possible. Flooring coatings are durable and hardwearing solutions for both industrial and commercial flooring. The floors may be applied on top of concrete floors to offer a high performance and attractive flooring. This system could be used in commercial facilities, warehouses, manufacturing plants, laboratories and pharmaceutical manufacturing buildings among many others.
Dr. Subash Cipy,
Dr. Subash Cipy, Managing Director, Cipy Polyurethanes believes that the country’s economy is indeed booming, with the GST impact probably earning an additional 2 per cent GDP. The Make in India initiative by the Prime Minister has opened great vistas for industrial floorings. Epoxies are still ruling the flooring market, which is precisely due to the presence of many organised and unorganised players. Automobile companies still portray huge opportunities, followed by Pharma, while the new trend emerging is PU-Concrete floorings pushed by F&B manufacturers. He further elaborates that their company’s focus is on both, industrial and commercial floorings, aiming at a growth rate of 20 per cent. According to him, the global concrete floor coatings market is expected to touch $1.1 billion by 2020.
The Indian flooring market is closely around 300-400 Cr for resinous floorings, which exclude cementitious underlays and overlays. CAGR of the Indian flooring industry is around 12-15 % and the industry is highly ecstatic about the bright future ahead with a steady growth rate. I feel, epoxy floorings have overrun their shelf lives and Polyaspartics and PU will undeniably hold a future, as both are rapid curing systems with so many welcome features.
National Manager – Flooring,
M.S. Prashanth, National Manager – Flooring, Sika, believes that the potential of the flooring industry is about 800 -1000 Crores. According to him the Driving factors are Good Economic Growth fostering more Industries, Increasing awareness in the Industry for health, Hygiene and Safety standards, Expansion of existing Industrial plants to meet the growing demand and also to meet the export demand, Up gradation of existing facilities to meet international standards and certifications, Huge investment in E-commerce Warehouses, retail chains and malls.
Reinforced Industrial Flooring is also witnessing a huge round of innovation. The systems typical areas of application include – Industrial Ground Floor Slabs Warehouses, Factories, Aircraft Hangers, Roads, Bridge Decks, Parking Areas, Runways, Aprons and Taxiways, Commercial and Residential Slabs, Piling, Shotcrete, Tunnels, Dams and stabilisation.
Regional Sales Manager,
Arun Kamtekar, Regional Sales Manager, Bekaert Industries believes Flooring industry is seeing a swing towards more sustainable flooring solutions in the industry. Investors are looking for flooring that is durable, low maintenance, and cost efficient during contraction stage. Rapid industrialization, rising government expenditure on infrastructure and manufacturing facilities will positively influence industrial floor market growth. Driving factors are based on the flooring requirement. The modern connotation of a good Industrial Floor encompasses aesthetics, quick install ability, longevity, economy, slip resistance, quality, functionality, durability, eco-friendliness, and moisture resistance. He further elaborates that the Indian economy is booming, with rates of Gross Domestic Product (GDP) growth exceeding 6 – 7% percent every year. One of the world’s fastest growing economies and growth expected to continue at 7-7.5 percent despite the global downturn. India is one of the favorite destinations for investments. Construction is the second largest economic activity in India after agriculture, and has been growing rapidly.
‘Manufacturing has emerged as one of the high growth sectors in India. Prime Minister of India, Mr. Narendra Modi, had launched the ‘Make in India’ program to place India on the world map as a manufacturing hub and give global recognition to the Indian economy. India is expected to become the fifth largest manufacturing country in the world by the end of year 2020. According to experts, the Logistics, Warehousing, and Packaging Industries have also played vital roles in boosting the Industrial Flooring market upwards. Based on industry expert forecast, Warehousing space requirement to grow at a CAGR of 8% by 2020′, says, Arun Kamtekar, Regional Sales Manager, Bekaert Industries.
Kaushal Parikh Vice Chairman & CEO, Impact Floors India Pvt. Ltd.
Kaushal Parikh Vice Chairman & CEO, Impact Floors India Pvt. Ltd., Says, ‘The Indian flooring industry is now seeing an upward cycle after a brief slowdown during 2013 to 2015 years and is now beginning to grow at a quick pace. We expect the warehousing space to grow by CAGR of 10% to 12%. Independent reports by various research companies are pegging the CAGR of 10% This is a very good potential for growth. Even if 40 to 50% of this potential is recognising for better floors, this will result in very good volumes of work for flooring companies. We feel the next 5 years will be giving the growth for this industry not seen before. However, the government will need to make the business environment more friendly with ease in compliance and governance for inverstor confidence to be boosted and also for funding norms from banks that would need to eased’.
Another segment that is gaining momentum is Anti Static Flooring. It is a specially formulated coating material which is applied on the floor, tabletops, cupboards, etc. on which Electrostatic Discharge Sensitive Devices (E.S.D) are manufactured or used.
B M Nagarajan, Director, Neocrete Technologies Pvt Ltd.
B M Nagarajan, Director, Neocrete Technologies Pvt Ltd. says, ‘When we talk about floorings, it is important to categorize them into cast-in-situ flooring systems, soft coverings such as vinyl, carpet, wood etc and natural stone floorings. Though there will be overlap in a few applications, we have to look at the markets separately. The main driving factors for cast-in-situ flooring systems such as epoxy, PU etc are their ability to provide jointless, seamless systems with superior chemical and abrasion resistance. Increased awareness over use of environment-friendly materials that are renewable over time has started assuming bigger impact on decisions concerning flooring not only in various part of the world but in India as well’.
In regard to Market Potential he says, ‘Here again, we have to look at the market potential of cast-in-situ floorings separately, as they are predominantly being used in industrial sectors. But with increasing use of epoxy terrazzo floorings and coloured cement micro-toppings in commercial and residential sectors, the market potential of these floorings are expected to increase and give a competition to natural and engineered stone flooring markets. It is very difficult to assign a number for the flooring market, but I would hazard a guess as about 1000 cr INR’.
Another demanding market is that of 3D Epoxy Floors. 3D Epoxy floors have become the rage of the social media. From bathrooms to living rooms, lobbies to bedrooms, swimming pools to Jacuzzis, 3D floorings have captured the imagination of the general public as well as designers.
‘Needless to mention, 3D floors are not 3D (three-dimensional), but a simple two-dimensional floor. However, it is possible to create a three-dimensional effect depending on where from you are looking at, the type of image, colours and the method of application as well as the lighting effect’, says Mr. B M Nagarajan. He further recommends, ‘it is suggestive that laying of the 3D flooring is best left to be executed by skilled and experienced professionals to get the best effect as well as durability desired. Some of the critical aspects such as the transparency, toughness, abrasion resistance and clarity of the top coat, method, direction and alignment of 3D image vis-à-vis the room angle and lighting, quality of material used for the 3D image as well as other materials pertaining to epoxy flooring- all these play a vital part in the outcome of the finished floor’.
Concrete and flooring always had a synonymous relationship and with growing innovation around. Concrete is the most basic flooring material. However modern advancements have given flooring professionals a variety of design options that are allowing them to completely reinvent this basic building material. Today concrete floors can be polished smooth, or textured to provide traction. They can also be painted or stained with a variety of techniques that allow you to replicate the look of natural materials, or embed the floor with complex printed designs.
Mr. M. Premnath, Managing Partner, Minitech Floors
Mr. M. Premnath, Managing Partner, Minitech Floors believes, discerning Indian customers today need a good quality, durable and of course at competitive prices. With many new emerging projects such as airports and metro railways, the quality has to be maintained with very minimum to zero maintenance costs. To complete many landmark projects with client’s high precision requirements and achieving the fine standards in the very natal stages is our passion in rendering our core services. Customer satisfaction being the primary goal is nevertheless an undeniable driving factor. He further says, ‘India is the one of the world’s emerging country economically and is named as a young nation. With all the developed and budding entrepreneurs, the market potential is huge and unbeatable. Awareness is spread among the end users that they shouldn’t encourage poor concrete flooring hindering their production in later stages. Durable and reliable engineered concrete flooring with maximum operational years meets our customer requirements. As the Indian government is also keen in developing the infrastructure for the nation’s and public interests, the flooring industry has a vast scope in capturing the market potential and solidify the services in the sparkle of nation development’.
Sanjay Tekale, CMD, STA Concrete Flooring Solutions
Sanjay Tekale, CMD, STA Concrete Flooring Solutions also believes India is changing fast & it is seen as the growth engine for global economy. The government policies like Make in India. GST implementation will grow the warehousing sector as movement of goods & vehicle will be easy across the country. Creating freight & logistics corridors will boost the new construction of facilities. As India is growing in terms of infrastructure, Warehousing & manufacturing there are unprecedented opportunities of growth. The 1.4 Billion population & required infrastructure is the real growth of flooring sector.
Sustainability has also become an important criterion for manufactures. Sustainable flooring is produced from sustainable materials (and by a sustainable process) that reduces demands on ecosystems during its life-cycle. This includes harvest, production, use and disposal. It is thought that sustainable flooring creates safer and healthier buildings and guarantees a future for traditional producers of renewable resources that many communities depend on.
Mr. Amol Mulajkar, Technology & Business Development , Soujanya Color Pvt. Ltd.
Mr. Amol Mulajkar, Technology & Business Development , Soujanya Color Pvt. Ltd. He believes that India’s construction industry will continue to expand over the forecast period (2016-2020), with investments in residential, infrastructure and energy projects continuing to drive growth. Various government flagship programs including 100 Smart Cities Mission, Housing for All, Atal Mission for Urban Rejuvenation and Transformation (AMRUT), Make in India and Power for All . will be the growth drivers.
‘The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 5.65% over the forecast period; up from 2.95% during the review period (2011-2015). There are certain challenges associated with India’s construction industry outlook. Limited funding, slow policy reforms and a weak currency are factors that will continue to limit the growth potential during the early part of the forecast period. Due to industrialization, urbanization, a rise in disposable income and population growth the demand for construction services is set to rise. Government efforts to improve the country’s residential and transport infrastructure will also support growth’, says Mr. Amol Mulajkar.
Not only these Flooring Treatment as as well as floor polishing machines are in high demand. Flooring contractor too are foreseeing a huge market opportunity.
Ajay Singam, Director Avcon Technics Pvt. Ltd
Ajay Singam, Director Avcon Technics Pvt. Ltd, Floor treatment Specialist believes that most of the flooring comes under civil contractor’s scope.’ Floor finishing process is termed as flooring. A very small segment of this industry works on total floorings, which is otherwise a norm in other international markets’ he further adds. Markets driving this matured form of flooring business are international industries, international specifications, retail, warehousing companies, consolidation of warehousing industry from smaller spaces to larger spaces with vertical stacking, demanding durable low maintenance floors. In regard to flooring industry market potential he believes it is Minimum 50% of PEB market size. In terms of area 3-4 Million sq mt. He further states that with events like CII conference on Industrial floorings generating huge interest in Investors, Specifiers, stakeholders of flooring industry working aggressively on awareness drive, a tangible shift from disorganized, fragmented flooring to more organized, structured will evolve and generate good business.
Sachin Surie, CEO, Surie Polex
Sachin Surie, CEO, Surie Polex, believes that The boom in ecommerce is creating huge demand for warehouse flooring. And the growth of manufacturing spurred by Make in India is another big contributor to demand for quality industrial flooring.
‘From here on the potential is limitless. As India’s growth story continues the need for good quality concrete flooring is going to boom. In fact, capacities will have to be increased to cater to the new demand’, he further states.
Rajesh Bonde, International Business of BTC
Rajesh Bonde, International Business of BTC a specialised Concreting Finishing equipment is of the opinion that Indian flooring industry is not yet graduated to the mark. It’s not a combined efforts by the end user to contractors. The big variation found between the theoretical designing of floor vs actual execution. And of course, it not yet organized. So even though there is a demand, Indian flooring industry not yet into driving mode.
‘Indian flooring industry still has a lot of challenges. It is largely an unorganized sector even today and hence difficult to predict. There are no combined efforts between end users, Architect and contractors during designing stage. This results in a huge gap between the theoretical designing of floor vs actual execution. So even though there is a demand, the full potential of Indian flooring industry has not yet been explored. However, with the influx of newer technology and materials there is a visible positive change happening. End-users are becoming more aware and expecting better quality. In turn, companies in flooring industry in India are also becoming more vigilant and strict about adhering to quality, delivering within deadlines and offering budget friendly solutions’, says Rajesh Bonde.
Pradeep Lamba, Director Lamba Techno
Pradeep Lamba, Director Lamba Techno, Flooring Solutions, a Flooring Contractor says,’Our main business is casting warehouse floors. Warehousing is facing a significant gap between demand and supply in India due to lack of modernization. Large logistic companies are expected to tap into the potential of the sector, as logistic hubs emerge around major urban centers. warehousing, which is estimated to grow @ 25-30% with increasing emphasis on automation, modernization and efficiency through modern systems such as ASRS, Robotics, etc leading to demand for improved flooring systems. Definitely there is a huge market potential for warehouse flooring in India but in case of other sectors like Industry the floors are still casted in the conventional manner and there is a long way to go’.
Mr Shashidhar K.S. Director, Gaea Engineers & Contractors (P) Ltd.
Mr Shashidhar K.S. Director, Gaea Engineers & Contractors (P) Ltd., SAYS, ‘As we see, there are lot many areas which are still to open up like the warehousing and government infrastructure like the cold chains for transportation of perishables food products, food processing units, Agriproducts etc., Besides active manufacturing, favorable industrial growth & the ever expanding commercial and residential segments offer strong hope & great potential for the flooring industry.
Another significant development over time has Laser Screed technology. It modulates the flooring thereby saving time and extra cost.
Sudarshan Singh, Director Sales – India & South Asia Somero India Pvt Ltd.
‘Today the industry using Laser Screed machines is limited to Manufacturing, warehousing industry in selected projects, which is likely to move as demand for faster project completion, Quality floors catches up. Apart from this, we believe that Real estate in Commercial segment should be the next vertical to grow in a rising economy. As per CII flooring conference of 2016, Size of industry is app. 36M Sq.m out of which Laser Screed floor market was 2M Sq.M which is 6% share. We expect this to double in next 3 years to 4 Sq.m’, says Sudarshan Singh, Director Sales – India & South Asia Somero India Pvt Ltd.
Mr .Vinayak Hardikar, Director, Aquarius Technologies Private Limited.
Mr .Vinayak Hardikar, Director, Aquarius Technologies Private Limited. believes that With the advent of better communication and improved logistics through highways, most businesses viz. factories, warehouses are spreading out more and more geographically. This phenomenon is fuelling growth in business and hence residential establishments in newly developed areas. Overall growth potential hence will be enormous in the coming years. He further states that there are several factors impacting the flooring industry. Some of them are- Reduced project time frames available for floor laying result in demand for high output machines, Mechanised in-plant movement thru Pallet Trucks / Automatic Retrieval / Forklifts coupled with vertical storage result in demand for Flat and Level floors with close tolerances, Low floor maintenance demand results in reduced joints or joint less floors and Demand for superior aesthetics coupled with low maintenance results in Floors with exposed aggregates thru grinding & polishing process.
- Vivekanandan, Managing Director, Flowrete India Pvt. Ltd.
- Vivekanandan, Managing Director, Flowrete India Pvt. Ltd. says that the market potential of the industry has grown multifold in the past years. Increasing new construction activities particularly in industrial and commercial sector coupled with renovation & repair of deficient buildings will positively influence flooring product demand. The future of the Indian flooring market looks good with opportunities in the industrial and commercial segments and is forecast to grow at a CAGR of 10-15%. Flooring market is estimated to be valued as around 450 -500 crores in 2017.
New specifications like car park deck coating for multi level car parking areas, shopping complexes and high end residential car park areas has opened up newer avenues for the flooring industry.
With hygiene being the key element of Food and Beverage industry to ensure the food safety, the usage of Polyurethane concrete has drastically gone up high. The governments ’’Make in India’’ initiative directly has improved the scope of the industrial market particularly in manufacturing sectors like defense, Pharma and Food and beverage. Government intention to develop industrial corridors and smart cities to provide infrastructure based on state-of-the-art technology helps to propel the growth of the industry providing a huge potential for large floor area to be covered.
The Indian market has emerged as a key global market for flooring market is not hidden from anyone. With the new government spelling out its intent to aggressively go forward with its infrastructure development spree; all eyes are now riveted on the Indian flooring industry. The market is all set for a period of huge growth, given the huge untapped potential.
The modern pre-requisite of a good Industrial Floor encompasses aesthetics, quick installability, longevity, economy, slip resistance, quality, functionality, durability, eco-friendliness, and moisture resistance. With modernization in every industry and the growing concern for sustainability, people have become more discerning and don’t look at floors as just floors! They seek much more, and no wonder, before devising a flooring solution, an expert will take into account various factors such as the movement of people / machinery in a premise, the ambient environment, nature of activities taking place within the building and much more. There are various permutations and combinations, and there can be different floors for different departments in a single industry these days. The companies are constantly upgrading their offerings to meet the growing demand in various segments such as airports, Metro-Rail projects, shopping malls, IT parks, and SEZs. For now future looks compelling.