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Construction chemical is one of the niche segments from the specialty chemical segment of the chemical industry. Construction Chemicals are specialty products that are used in structures to increase their life, and also to impart additional protection from environmental hazards. Construction chemicals are essential for high quality concrete and for promoting the improvement of concrete performance. In the overall growth of the construction industry, construction chemicals play a vital role. There is an increased emphasis on high quality construction requiring detailed designing, good workmanship and the selection of appropriate building materials. Consequently, therefore the demand for construction chemicals for renovation or building of these new and existing buildings has been on the rise in the short term.

Construction chemicals comprises of a number of different products such as cementation, cement admixture, cold applied products, hot applied products, membranes, acrylic, epoxy, resin, and sealant adhesive.

The present Indian construction chemical industry is estimated at Rs 2000 crore of which Rs 1200 crore comprise organized sector while Rs 800 crore is unorganized. The market is partially organized, especially in the industrial and infrastructure sectors. It is expected to touch Rs 4000 crore by 2013 at a CAGR of 2.2%. Construction chemicals account for only 2% of the overall costs but benefits are in multiples. Growing areas such as 100% FDI in the real estate sector has given a major boost to the already fast growing construction industry.

There are total 352 companies including many key and niche players worldwide such as Antas Chemical Co. Ltd., BASF SE, Bostik Inc, Elotex AG, Franklin International Inc, The Tremco Group etc.

The industry has much potentiality to grow at a faster rate on the back of the end users awareness benefits of these construction chemicals. Easy adaptability to foreign technology and the entry of foreign companies in the construction sector have helped to change the mindset of the people that has eventually resulted in the growth in this sector. The new construction projects market is also expected to increase the demand for construction chemicals. Apart from this, growth will also be primarily driven by increasing construction expenditures in improvement and repair projects. The construction market is expected to grow at more than 30% per annum for the next few years. This industry has got a huge potential to grow.

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