{"id":878,"date":"2023-01-11T10:16:27","date_gmt":"2023-01-11T10:16:27","guid":{"rendered":"https:\/\/www.homebazaar.com\/news\/?p=878"},"modified":"2023-01-11T10:16:27","modified_gmt":"2023-01-11T10:16:27","slug":"in-next-4-5-years-building-material-market-will-rise-8-12-hdfc-securities","status":"publish","type":"post","link":"https:\/\/www.homebazaar.com\/news\/in-next-4-5-years-building-material-market-will-rise-8-12-hdfc-securities\/","title":{"rendered":"In Next 4-5 Years Building Material Market Will Rise 8\u201312%: HDFC Securities"},"content":{"rendered":"

According to a report by HDFC Securities, the demand for building materials, such as tiles, plastic pipes, and wood panels, should increase by 8\u201312% over the course of the next 4\u20135 years due to factors such as India’s push toward urbanisation, the real estate market’s recovery, a positive outlook for the hospitality as well as health care sectors, & rising discretionary spending.<\/span><\/p>\n

“The MDF & particle board industries are likely to present significant development prospects for the wood panel category in particular in the upcoming years. After a slow 2022, exports of tiles & laminates are anticipated to speed up again, while MDF exports are already getting traction. <\/span><\/p>\n

Additionally, the drop in PVC resin prices and the cooling of natural gas and chemical costs should boost these businesses’ ability to regain their margins “The report, which covered 15 significant building material companies across the three categories, makes this statement.<\/span><\/p>\n

India’s efforts to urbanise are being fueled by the government’s emphasis on infrastructure, including roads, railroads, metros, and airports, which are improving connectivity. According to industry projections, 33% of Indians currently live in cities, compared to 38% by 2025. As opposed to 50% today, 80% of Indians would be considered middle class by 2030.<\/span><\/p>\n

“The building materials market in India is experiencing positive growth at a pace of 8\u201310%. Even while the recognized companies are increasing their market share, the distribution is still incredibly uneven and insufficient. This is resulting in reduced channel margins, a rise in price opacity, and more non-tax sales”, according to Vaibhav Poddar, founder of Mistry Store, a platform that makes it easier for homeowners to buy building materials including wood, paint, hardware, and electricity. It is time to expand the organised distribution of house-building materials, as we have seen in most sectors, as this will improve availability, transparency, and economies for all.<\/span><\/p>\n

Despite having a sizable and expanding population, India has a low level of furniture production and consumption. Organized furniture players only hold 20% of the market, and imports are also used to fill the demand. <\/span><\/p>\n

However, it is anticipated that the Indian furniture industry will rise three times between 2020 and 2035, providing a positive outlook for the country’s local plywood, laminate, MDF, and particle board producers. In addition, numerous significant players, like IKEA, Pepperfry, and others, are gaining ground.<\/span><\/p>\n

While the global demand for tiles has been stagnant for some time, India has expanded its market share, primarily at the cost of China, and is still growing at a 5% CAGR.<\/span><\/p>\n

Due to disruptions in the worldwide supply chain throughout the COVID period, PVC resin prices rose sharply. However, as China, the market leader, began to open up production at the beginning of FY23, low-cost imports entered India. Although resin costs have declined from their peak, this has negatively impacted plastic pipe makers’ sales and operating income.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

According to a report by HDFC Securities, the demand for building materials, such as tiles, plastic pipes, and wood panels, should increase by 8\u201312% over the course of the next 4\u20135 years due to factors such as India’s push toward urbanisation, the real estate market’s recovery, a positive outlook for the hospitality as well as […]<\/p>\n","protected":false},"author":2,"featured_media":879,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[117],"tags":[182,181,72,140,73],"class_list":["post-878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-building-material","tag-constriction","tag-construction-cost","tag-real-estate-news","tag-real-estate-updates"],"_links":{"self":[{"href":"https:\/\/www.homebazaar.com\/news\/wp-json\/wp\/v2\/posts\/878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.homebazaar.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.homebazaar.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/news\/wp-json\/wp\/v2\/comments?post=878"}],"version-history":[{"count":0,"href":"https:\/\/www.homebazaar.com\/news\/wp-json\/wp\/v2\/posts\/878\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/news\/wp-json\/wp\/v2\/media\/879"}],"wp:attachment":[{"href":"https:\/\/www.homebazaar.com\/news\/wp-json\/wp\/v2\/media?parent=878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.homebazaar.com\/news\/wp-json\/wp\/v2\/categories?post=878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.homebazaar.com\/news\/wp-json\/wp\/v2\/tags?post=878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}