02/16/2024
Large infrastructure projects and huge potential in the retail business present abundant opportunities for the combined forces of Sika and MBCC.
With a remarkable career spanning 36 years, Nilotpol Kar is the General Manager of Sika India. His extensive contributions to the country and the Asia/Pacific region have earned him numerous awards from esteemed organizations in the construction industry. Now, Nilotpol shares his vision for India, the most populous country in the world.
India is a complex, diverse, large, developing, high-growth market: Where do you see the challenges and opportunities?
As India enters its platinum era, the construction industry will continue to grow rapidly, fueled by large projects in transportation, energy and housing (6% annually for the next 3–4 years). In infrastructure, projects are being specified to international standards, increasing the demand for the kind of new technologies and solutions that Sika can provide. In addition, the government is driving urban investment through the 100 Smart Cities Mission, a government-funded urban renewal initiative. On the other hand, the retail market is still very traditional. There are about 1.5 million mom-and-pop, small hardware stores, throughout India. Both markets are very promising for Sika.
How is Sika addressing these opportunities and challenges?
While all Sika solutions improve efficiency, reduce costs, and increase safety, our concrete technologies are the door opener in our target markets. We are addressing the skilled labor shortages and safety on construction sites by leveraging technologies that increase the speed and efficiency of the construction process with self-compacting concrete solutions based on the advanced Sika® ViscoCrete® technology. The introduction of ultra-high performance fiber-reinforced concrete has shown impressive results, especially for bridges with reduced cross section and lower carbon footprint. India has about 100,000 municipal or district bridges in need of repair and Sika India has made a great start with its advanced admixture technologies. The government is also improving transport corridors with numerous tunnelling projects. For such projects, the Sigunit® range of shotcrete accelerators and Sikament® admixtures are being supplied and the sites are supported by our Sika shotcrete specialists. For tunnels built with boring machines, we have a variety of solutions for soil conditioning and ground support. Here, European standards are being adopted, creating demand for solutions such as our fire protection mortars or light-reflecting coatings.
What are the opportunities emerging in India through urbanization?
The rapid rate of urbanization is creating opportunities for our construction and retail businesses. Large urban developers require solutions to structurally strengthen older buildings. There is also a growing market for insulation, waterproofing, and crackbridging solutions. Green roofs, for example, are very popular in the IT complexes of Bangalore. Digitalization has also created new retail sales and marketing opportunities. We are on Amazon as a premium seller and we are using apps for promotion purposes and product training, especially in the retail market.
Can you comment on the potential for high-performance solutions?
In infrastructure, Sika India has achieved notable success, especially with a unique bridge deck waterproofing solution used in prestigious projects along India’s Western Coast, with more projects anticipated as we grow alongside the Indian economy. Additionally, in industries such as refineries, we provide highly engineered resin grouts for reciprocating machinery. The food industry values the hygienic properties and durability of Sika’s flooring solutions. For example, in the last four years, a leading Indian fast-moving consumer goods company has chosen Sika® Ucrete® heavy-duty resin to coat more than 200,000 square meters of factory floor. We also have Xolutec as a complementary alternative. It will be used to coat 500,000 square meters of flooring in a huge battery factory, as part of India’s CHF 2 billion initiative to increase domestic battery cell production.
How does the merger of Sika and MBCC benefit Indian customers?
All the members of the joint workforce have 10–20 years of wide-ranging professional experience. Together, we are a highly capable one-stop shop, with more boots on the ground, an extended manufacturing footprint, and a comprehensive product portfolio. For me personally, the integration of MBCC has been a great homecoming. The positive market response was a testament to the quality and transparency of the entire process.
India and Japan are two key markets in Sika’s Strategy 2028. Despite being at different stages of development, each country offers significant opportunities for dynamic and profitable growth. In addition, the acquisition of MBCC has enabled Sika to increase customer proximity, expand its portfolio with complementary products, and improve market access.
Infrastructure development
India is an exceptionally dynamic and fast-growing market, with the construction sector set to expand at a robust CAGR of 6% through 2026. This development is being driven by ambitious infrastructure projects that will transform urban connectivity and the country’s economy. With the strategic acquisition of MBCC, Sika doubled its presence in India to cater for the diverse needs of the world’s most populous country.
According to the Ministry of Statistics and Programme Implementation, there are approximately 1,500 major infrastructure projects across India valued at a staggering CHF 275 billion. A significant part of this investment is earmarked for transportation infrastructure, including roads, highways, and rail networks. For Sika, these developments represent immense opportunities, specifically with its current expanded market presence, product range, and distribution channels.
India’s construction market
The Indian construction market is growing steadily, driven mainly by government-funded infrastructure projects. Already today, this market is worth more than CHF 600 billion.
"With the Strategy 2028, we are capitalizing on India’s dynamic growth and Japan’s advanced market, offering innovative solutions for the evolving needs of the construction industry." Philippe Jost, Regional Manager Asia/Pacific
New distribution model
To serve the 1.4 billion citizens of a more-connected India in the future, a new distribution model is imperative. Sika plans to expand its distribution strategy in India by establishing points-of-sale across the country. This is inspired by the company’s recent success in China, where Sika has already established 250,000 points-of-sale.
In addition, Sika is actively driving the transition from site-mixed to premixed mortars in India, where only 5–10% of the market currently uses premixed mortars. As seen in other markets, this shift is expected to occur organically, driven by increasing quality requirements at construction sites and rising labor costs. To facilitate this change, Sika has planned to launch training programs, tiling competitions, and educational videos in India.