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UPVC Window and Door Profiles : New Investment Opportunities in India |
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uPVC Window and Door Profiles provide a lucrative investment opportunity in India � it is an attractive project that offers high value addition and returns. The Indian market size for windows and doors is approx. Rs 12000 crore (Source :Long, Kenneth 2005. World Windows and Doors. Study #1977. The Freedonia Group) with the predominant material of constructions being Timber (in rural and in upper end constructions), MS (in low cost housing) and Aluminium (in urban constructions). Out of approx Rs 6000 crore market for windows, approx Rs 300 crore exists for Upvc windows.
Windows are no longer an object to fill the openings in the Building envelope. Today's windows are expected to perform various functions such as letting in light, keeping out heat/cold, noise attenuation, as well as being aesthetically attractive, needing lower maintenance and using energy saving/efficient materials/processes in place of scarce/energy efficient conventional materials.
uPVC Windows/Door profiles are made from Poly Vinyl chloride resin, one of the most extensively used thermoplastics finding end uses in diverse sectors such as infrastructure, agriculture, healthcare etc. UPVC Windows/Doors are extensively used abroad, and are currently at a nascent stage in India . Much needs to be done in marketing of these products by showcasing the advantages of these products to the builders, architects and common man which includes the major advantage of energy saving i.e. reduction in air conditioning bills upto 20-30% as well as saving of wood (in turn-forests) and energy intensive materials like Aluminium.
Overview of Global Markets
Globally, UPVC windows and doors have been well accepted, with wide usage globally due to better aesthetics and excellent insulation characteristic. Needless to say, this product has achieved a higher and faster market penetration globally. Following the trend in the global market, India has started achieving more in this direction but much needs to be done to replicate the success stories of other countries.
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India
The demand driver for Poly Vinyl Chloride Windows and Doors is Infrastructur catalysed by
Increasing population ( India is 2nd most populous country after China )
Increasing prosperity
Nuclear families leading to increase in housing demand
Migration from Rural to Urban area
The Infrastructure Scenario in India
6 Mega Cities and 23 Metro cities
300 Large towns and 3396 small and medium towns
India �
7th Largest Country in World
2nd largest country in Asia
landmass of 3.29 million square km.
Industrial, trade,commercial � KEY DRIVERS
(http://www.trade.uktradeinvest.govt.uk/building/indi../overview.shtm)
Plastics are finding increased application in the field of infrastructure in:
PE Rotational Moulded Tanks
PP Flexible Intermdiate Bulk Container
PP Woven Geotextiles
PVC Window Profiles
PVC SWR Pipes
As U rbanisation continues at a fast pace
300 Million Indians in Urban Areas
India has the second largest urban population in the world
30% of total population
Contributes 60% of GDP
Growth at 31% over last decade
(Source : http://meaindia.nic.in/indiapublication/Urban%20Infrastructure.htm)
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Investment in Infrastructure in India
The Planning Commission has estimated that investment in infrastructure-defined to broadly include road, rail, air and water transport, electric power, telecommunications, water supply and irrigation will need to be of the order of Rs 1450,000 crores or US$ 320 billion during the Eleventh plan period.
(Source : Crisinfac) |
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The investment in construction accounts for nearly 11% of India 's Gross Domestic Product (GDP) and nearly 50% of its Gross Fixed Capital Formation (GFCF)
65% of the total investment in infrastructure - The investment in this segment over the financial year 2005 to 2010 is estimated at US$124.65 billion
(Source : Crisinfac) |
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Assuming Indian population of 100 crore and an average of 5 persons dwelling unit and an average weight of 44 kgs of PVC Doors and Windows per dwelling unit with a market penetration of 3%, the estimated potential of PVC Doors and Windows would be 3,00,000 tpa.
With so much happening on the Building Construction front, this is the most opportune time for entrepreneurs to get into Upvc Window/Door profile Extrusion & Fabrication. In fact, considering the afacts as well as the size of the Window/Door market, there is space for 4-5 large companies to come into this sector. Further this project will be synergistic for those entrepreneurs who are already in building/construction related product businesses.
Potential of windows, doors in India- 3,00,000TPA
Supply of uPVC windows, doors in India�40,000TPA
Upvc Window systems come with excellent hardware, various colours and finish thus enhancing the beauty of our dwellings. These windows always look new and do not need any painting. �The brighter the windows, the brighter the home�. Further they provide noise attenuation and reduce energy bill of air-conditioned places by about 20-30%.
Strategy to Reach 3,00,000 TPA of Poly Vinyl Chloride Doors & Windows
The consumption of Polyvinyl chloride doors & windows in India in 2007-08 was 40,000 tpa. Entrepreneurs today are keen on investing in projects which have a very high market potential. Upvc Windows and Doors is a product which has a very high potential in the country with low competition. Competition is lower and both types of processors exists, one which manufacture high quality products and other which manufacture products for the low end market.
The entrepreneurs in the country needs to look at
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Option I - only of extruding the Upvc Window/Door profiles,
Option II - only fabrication of these profiles
Option III - a combination of both Option I & Option II.
The entrepreneurs who possess a very good business acumen will be able to achieve a faster market penetration through dealers and agents. Faster market penetration with more number of entrepreneurs and high volume business would help this business grow.
Quality products becomes one of the very important elements in this business for which good tooling is needed. Quality products would help entrepreneurs in fetching higher net profitability due to the higher selling price of the final product. Another important factor is that of a high volume business hence extruders of high capacities selected would lead to a more viable business. Versatility of an extruder which can produce more than a single product would lead to a higher capacity utilisation making it possible for the entrepreneurs to fetch a higher net profitability with more number of new investments in our country.
Business means money and this project with quality product coupled with high volume business can make entrepreneurs earn more and more money. More money in this business with this high value added product would make these entrepreneurs expand their business increasing the volumes further leading to a higher net profitability. High net profitability also depends on the distribution pattern with inclusion of agents who could be involved in marketing of these products.
Marketing with a very good distribution network, be it commision agents, own marketing team or dealers helps the processors in achieving a higher net profitability, a key focus of any business. Well established in the business, existing processors related to plastic products in infrastructure can look at this product under their plan for diversification eg Existing processors of Rotational Moulded tanks, Aluminium fabricators, Roofing can look at PVC Doors and Window profiles which would help these processors to market this product which has a similar distribution pattern.
Building up of end user contacts such as builders/architects will make it possible for the endusers to fetch cost economic products bringing in products which would be well accepted by the common man would lead to benefits to builders/architects as well as the common man.
Research on the acceptability of the new products amongst the builders as well as common man helping the entrepreneurs in achieving a higher market penetration of the plastic products would result into more business.
Higher worldwide acceptance of a plastic product helping entrepreneurs in our country to follow the footsteps of the worldwide trend would lead to more number of new investments in our country.
Versatility of PVC Door & Window Profiles and PVC
Inherent advantages of PVC Door & Window Profiles
a) Energy Savings � Reduction in air-conditioning bills upto 20-30%
b) Cost economics
c) Conservation of Natural Resources
d) Aesthetics
e) Acoustics and so many other advantages
Poly vinyl chloride due to its versatility
- has helped the entrepreneurs in achieving more net profitability which includes higher volumes of business in all major enduses such as infrastructure
Polymer, a versatile material bringing in a versatile product � PVC Doors & Windows would lead to a higher volume business for entrepreneurs and thus a higher net profitability
(Ms Poorvi C. Desai, Sr. Manager, Business Development - Polymers, Reliance Industries)
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