We recently installed second kiln and doubled our tile manufacturing capacity

- Ashwin Reddy

Managing Director, Aparna Enterprises

How is the building materials market performing in the current market scenario? Which are the key demand drivers?

The building material industry stands at around $225 billion in terms of market size. The sector is projected to register a growth of 10% in 2022 and a CAGR growth of 8-9% over the next five years. The thrust on infrastructure development and rapid urbanization-lead rise in demand for housing are some of the key drivers aiding the industry growth.

What are the growth opportunities and challenges in the manufacturing and sales of building materials?

The building material industry has shown unmatched growth in the last decade barring the few months during the pandemic period. Over the next few decades, the industry is likely to grow at an even better pace. Some of the avenues that will positively impact the industry are:

The growth of the economy - As per the recently released data by National Statistical Office (NSO), India's economy grew by 13.5% in the April-June period this fiscal. This revival of the economy is expected to positively impact the construction and infrastructure industry which in turn will provide avenues for the building materials sector to grow.

Government's thrust on infrastructure development - In the last Budget, government had increased the outlay to enhance the infrastructure sector. The different projects by the government towards improving the transportation, housing and basic necessities will have a positive impact on the growth of the sector. Further, the government's plan to raise funds from the capital market through Infrastructure Investment Trusts (InvITs) will also help the industry.

Having said that, the industry is not devoid of challenges. One of the key challenges is the rising inflation. Inflation has resulted in sharp rise in the cost of raw materials and labour charges. Increase in the rate of interest is another challenge impact the sector. The increase in rate of interest if persists for long will impact the liquidity in the market.

What are the key products and solutions from the company? Who are the major customers?

Aparna RMC ready-mix concrete, Vitero floor & wall tiles, Aparna Venster uPVC windows and doors, Aparna Unispace premium bathroom fitting and kitchens, AparnaCraft exterior facades, Aparna Crusher M-Sand & aggregates, Aparna Rollform steel reinforcements for uPVC windows & doors, cable trays, false ceiling and solar panel sections and Okotech uPVC profiles, are majority of the products Aparna Enterprises deals in.

As our product array is wide, our customers also vary from individual homeowners to construction or infrastructure players.

What are the latest trends in uPVC windows design and materials?

Gone are the days when windows were used only for ventilation, today they are considered an integral part of creating a distinct look to the space and customers are not hesitating from experimenting and making bold choices. In fact, there is an increasing demand for coloured uPVC window and door systems to match the existing colour scheme of the given space.

How is sustainability playing a major role in the building material industry? What are the sustainable solutions offered by the company?

Of late more and more customers are looking for solutions that would help them in reducing its impact on the eco-system. In fact, one of the main reasons for the growth of uPVC window and door systems is its recyclability and ability to reduce energy consumption. At Aparna Enterprises, our uPVC window and door system brands - Venster and Okotech, have been registering a steady year-on-year growth since the last four years.

What are your future plans in terms of product and market expansion? 

We are looking at vertical and horizontal expansion of our product array as well as strengthening the manufacturing and retailing capabilities. While we are adding more product variants to our existing product lines, we are also focusing on strengthening our manufacturing capabilities. We recently installed second kiln and doubled our tile manufacturing capacity to 30,000 sq m tiles per day. We are also working on increasing our uPVC manufacturing capability. By end of this year, our new manufacturing set-up will be able to produce 1,100 tonnes of uPVC profiles every month.

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