Nippon Paint expands into the INR 12,500 Cr. Construction Chemicals market
Plans to increase their dealer touch points by 50%
Chennai, February 28th, 2023 : Nippon Paint (India) Private Limited (Decorative Division), Asia Pacific’s leading p aint manufacturer, today announced its strategic expansion into the Construction Chemicals market. In line with its Global vision, Nippon Paint India is expanding its portfolio beyond the paint and coatings product range. As a part of its expansion plans, the brand is all set to offer products and solutions under the broad categories – Dry m ix, Repair and maintenance, Construction chemicals, and Waterproofing.
The products will be focusing on three key market segments:
- During construction: Concrete admixtures & Membranes
- Post Construction (New buildings): Concrete repair, Water proofing, Hybrid sealants, and Adhesives
- Repair & Maintenance: Protective Coating, Sealants, and Water proofing.
The increasing number of residential and commercial building constructions, innovation in architectural design and engineering, affordable homes, and the growing trend of Urbanization are expected to drive this category. T he technology behind these products is either the brainchild of Nippon’s in-house research team or results of rec ent Mergers & Acquisitions that have taken place in this sector globally. Liquid-based products will be manufact ured in the Chennai unit, aerosol-based products will be supplied by acquired companies and volume/powder-ba sed products to be manufactured by Strategic Manufacturing Partners. Through this expansion strategy, Nippon Paint will make its products available across various segments.
Through this venture, Nippon establishes itself as a key player in the overall Construction chemicals market, and the provider of products that encompass protecting buildings at each stage of construction, ensuring longevity o f the structures.
While there is a potential to expand dealer network from paint dealers to tile fixers and hardware suppliers across tier 2 & tier 3 cities, the focus will also shift towards training different sets of people to become expert solution providers :
- Painters will be trained in water proofing segment
- Tile laying team will be trained on adhesive solutions
- Small-scale contractors, Masons and other allied teams would be trained in using concrete admixtures and other chemicals.
Highlighting the opportunities available in this segment and the need for such technology, Mr. Mahesh Anand, President, Nippon Paint India (Decorative) said, “We are happy to expand into the Construction chemical solutions m arket. Pegged at being an INR 12,500 Cr market, this segment provides ample opportunities for growth and innovat ion. Given the promising outlook and low penetration in this segment, we anticipate high demand for quality construc tion chemical solutions. Furthermore, with Nippon’s strong presence, market know-how and distribution strength, we are po sitioned perfectly to ace this segment. This also provides an opportunity to grow our ecosystem of dealers, workers, and vendors.”
The construction industry has started focusing more on its Construction Chemicals segment; where the focus h as shifted from the repair & maintenance segment alone to other stages involved in construction like Pre-con st ruction and During construction. In 2021, the housing sales in India had increased by more than 51% compared to 2020. Though awareness is still very low in this huge market segment, research reports project a CAGR of ov er 10.4 % in the next 3 years. This is expected to increase the present per capita consumption by 2X.
Nippon continues to remain a sustainable brand as our range of products in this segment do not require exces sive use of water, encouraging speed of construction and low maintenance. In addition to this, their range of wa terproofing solutions, sealants and adhesives encourage quick fix home repairs without having to do any do-ov ers in repairs and maintenance.
About Nippon Paint :
Nippon Paint, founded in Japan has over 141 years of experience and is the number one paint manufacturer in A sia, and among the leading paint manufacturers of the world. Nippon Paint produces high-quality paints and coa ts for decorative, industrial, and automotive section Over the years, Nippon Paint has perfected its products by means of breakthrough paint technology, with an emphasis on innovation and eco-friendliness. Nippon Paint’s m ission is to create advanced products that boost quality of life while protecting the environment. Through inn ov ative technology, Nippon Paint benefits its customers and society. The company and its subsidiaries have pr esen ce in 31 countries which includes Japan, Singapore, Malaysia, South Korea, China, India, Pakistan, United K ingdo m, Germany, Greece, and Russia.
