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Analysis of the building stone market in India

Analysis of the building stone market in India Analysis of the building stone market in India
Release date 31.03.2022
Number of pages 44
Formats DOCX, PDF
Cost 45000 ₹

The relevance of research

Building stones have become widespread in the construction of various objects, in the decorative design of premises and personal plots. Building stone of natural origin is widespread in the interior and exterior design of buildings, this is achieved by the presence of extensive color variations and the possibility of obtaining original patterns and compositions. Natural stones are mined in quarries, crushed and processed if necessary


Purpose of the study

Analysis of the state of the building stone market, assessment of the market volume, analysis of competitors, as well as identification of factors affecting the building stone market


Content

Part 1. Overview of the Indian building stone market

1.1. Main characteristics of the market
1.2. Dynamics of the volume of the building stone market in 2017–2021 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Stage of the life cycle of the building stone market
1.5. Competition from substitute products

Part 2. Competitive analysis in the building stone market

2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players

Part 3. Analysis of building stone production

3.1. Volume and dynamics of domestic production of building stone
3.2. Share of exports in the production of building stone
3.3. Segmentation of building stone production by regions
3.3.1. Production by Union Territories
3.3.2. Production by states of India

Part 4. Analysis of foreign trade deliveries of building stone

4.1. The volume and dynamics of imports of building stone
4.2. Import structure
4.3. The volume and dynamics of exports of building stone
4.4. Export structure

Part 5. Analysis of the consumption of building stone

5.1. Dynamics of the volume of consumption of building stone
5.2. Analysis of the results of tenders for the purchase

Part 6. Price Analysis

6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India

Part 7. Assessment of factors of investment attractiveness of the market

Part 8. Forecast for the development of the building stone market until 2026 

Part 9. Recommendations and conclusions


Research excerpt

Part 1. Overview of the Indian building stone market

1.1. Main characteristics of the market

Building stones have become widespread in the construction of various objects, in the decorative design of premises and personal plots.
Building stone of natural origin is widespread in the interior and exterior design of buildings, this is achieved by the presence of extensive color variations and the possibility of obtaining original patterns and compositions. Natural stones are mined in quarries, crushed and processed if necessary.

The processing of stones consists in cutting out blocks of the correct shape from them. Such blocks are made of sandstone, shell rock, tuff, limestone and other rocks with acceptable physical properties. 
Artificial stones are made of concrete, ceramic or silicate. The most common types of artificial stones are brick and wall blocks.
There are many factors that determine which stone to choose, such as location, local climate, design orientation, budget, and purpose.

Diagram 1. The ratio of imported and domestic products in the building stone market, 2017–2021, %

1.2. Dynamics of the volume of the building stone market in 2017–2021 Potential market capacity

...
Consumption of building stone will grow in the long run. The main drivers for this will be:
...

1.3. Assessment of factors affecting the market

Consider the main factors affecting the market and, accordingly, demand. 
Economic
India GDP
GDP is a macroeconomic indicator that reflects the market value of all final goods and services produced in a year in all sectors of the economy on the territory of the state for consumption, export and accumulation. 
The dynamics of India's GDP is decisive in the vector of development of the entire economy of the country and determines the key trends in consumer effective demand and economic activity.
...

The pace of housing construction
The construction industry is one of the drivers of the economy...

Chart 6. Number of completed residential areas in India, 2017-2021, mln sq. m

Социальные
Population
...

Real income of the population
...

technological
Digitalization
In terms of Internet use activity, India is on par with the leading countries and even somewhat ahead of them, taking into account the achieved level of development of telecommunications infrastructure. 

Building stone manufacturers open online stores on their websites where you can order online. Also, some sites have an online consultant with which you can interact with your potential customers. The use of Internet technologies helps to increase sales and improve visitor loyalty. The positive influence of the factor.
Innovations in construction

The market for prefab structures, one of the innovative home building technologies, is one of the fastest growing industries. So far, escrow accounts, the pandemic and the desire of investors to minimize the payback period of the project have become drivers of the development of the domestic market for prefab structures. So, in the future, technology can become one of the main ones in housing construction.

Prefab technology is the use of prefabricated prefabricated structures in the construction of buildings. These can be both separate Prefab panels (facade and interior walls, partitions, etc.), and Prefab modules - ready-made premises for various purposes with pre-finishing or fine finishing, which at the construction site can only be mounted on the foundation and bring communications.

Political
Mortgage
All over the world, not only in India, a mortgage for most people is the only way to have their own home. A long term mortgage allows a person to reduce monthly payments, and for most borrowers this is the most serious expense item in the family budget.
...

National project ""Housing and urban environment""
The national project ""Housing and Urban Environment"" includes:
...

According to the results of the performed STEP-analysis, macro-environment factors have a more positive impact on the development of the building stone services market. 
Among the most positive factors on the market are: high rates of housing construction, the existence of national projects aimed at developing the construction industry, preferential mortgages, digitalization, stabilization of exchange rates, restoration of the population's solvency, and improvement in GDP values.

Table 2. STEP analysis of factors influencing the building stone market

1.4. Stage of the life cycle of the building stone market

The building stone market is at the stage of maturity. The maturity stage is the longest of all life cycle stages. It is built on the consumption of conservative consumers, on the popularity and wide representation of the product, which ensures a stable level of sales over a long period. 

The level of competition in the market has reached its maximum and is stabilizing, which, in the face of a slowdown in growth, creates a more aggressive struggle for existing consumers. A high value at the stage of maturity gets the speed of the company's reaction to the actions of competitors.
...

1.5. Competition from substitute products

The main competition for building stones is from natural wood.
Among the advantages of wooden buildings are:

  • Environmental friendliness;
  • High coefficient of thermal insulation;
  • Clean, untreated wood is cheaper than brick;
  • Wood ""breathes"", so the room will always maintain optimal relative humidity.

Among the disadvantages of a wooden house, the main one is the risk of fire. However, this disadvantage is eliminated even at the factory in the manufacture of cylindering, timber or shield frame - all wood is impregnated with protective compounds. These substances protect the wooden parts of the house from decay, mold, fire, rodents and insects. True, this technology makes the construction of housing more expensive.

At the same time, the main advantage of a stone house is its great durability. A stone house will need a strong foundation, so the house can be built on any soil. The fire safety and fire resistance of a stone house is much higher than that of timber buildings. 

The disadvantages are that the use of artificial or natural stones in construction requires additional labor and financial costs - this is the use of special equipment and a larger number of builders in the team. Due to their heavy weight, stone houses take a long time to settle before other work can continue.

Thus, the competition from natural wood is below average, given that in India, unlike other countries, almost no wood is used in the construction of high-rise housing. In the long term, the impact of tree competition will increase. The world is already rapidly gaining momentum in new technologies for the use of wood, the so-called cross-glued panels, or CLT, from which multi-storey wooden houses are made.

Part 2. Competitive analysis in the building stone market 

2.1. Major players in the market 

There are many competitors in the building stone market. 
From the point of view of competitive concentration, the studied market belongs to low-concentration (Herfindahl-Hirschman index (HHI < 1000). Mergers and acquisitions are allowed without hindrance.
...

2.2. Market shares of the largest competitors 

The assessment of the shares of the largest operators in the building stone market was carried out by GidMarket analysts for forecast data on the companies' revenue in 2021, taking into account the share of building stone in the company's total assortment. 

2.3. Profiles of major players

XXX
...
XXX
...
XXX
...

Part 3. Analysis of building stone production

3.1. Volume and dynamics of domestic production of building stone

The production of building stone annually demonstrates ...

Diagram 11. Dynamics of building stone production in India for 2017–2021, thousand tons

 

The maximum increase in the total revenue of the largest market operators was observed ...
...

3.2. Share of exports in the production of building stone

The share of exports in building stone production is enough...

3.3. Segmentation of building stone production by regions

3.3.1. Production by Union Territories

The largest volume of building stone production among all federal districts in 2021 falls on the Central Federal District with a share of ...

Table 5. Dynamics of building stone production in India by union territories, 2017–2021, thousand tons

3.3.2. Production by states of India

The largest building stone producing states in India in 2021 were ...

Part 4. Analysis of foreign trade deliveries of building stone

4.1. The volume and dynamics of imports of building stone

...

Diagram 15. Volume and dynamics of imports of building stone in physical terms, 2017–2021, thousand tons

...

4.2. Import structure

In the structure of building stone imports by importing countries in 2021, the key supplier is ... 
...

4.3. The volume and dynamics of exports of building stone

The maximum volume of export supplies of building stone was observed ...
...

4.4. Export structure

The main volume of building stone, in value terms, exported from India in 2021 was supplied ...

Part 5. Analysis of the consumption of building stone

5.1. Dynamics of the volume of consumption of building stone

Estimated consumption per capita was made by GidMarket based on the ratio of the volume of the building stone market to the population of India.

Diagram 21. Dynamics of building stone consumption in physical terms, 2017–2021, kg/person

 

5.2. Analysis of the results of tenders for the purchase

For 2020–2021 about 1,7 thousand tenders for the purchase of building stone were published. Moreover, in 2021 the number of tenders doubled compared to 2020. 
The most frequently purchased artificial building stone, mainly brick. Often in one purchase there are many building materials, among which building stones do not occupy a dominant position. 
...

Part 6. Price Analysis

6.1. Average producer prices by union territories

Producer prices for different types of building stone differ significantly across the union territories. The most expensive prices for silicate and slag bricks in the Southern Federal District ...

6.2. Average consumer prices by states in India

Rosstat monitors average consumer prices for artificial building stone - red brick. 
... 

Part 7. Assessment of factors of investment attractiveness of the market

...
Negative factors of the investment climate in the building stone market in India dominate over the positive ones.
...
The most significant negative factors. 
...
The most significant positive factors. 
... 

Part 8. Forecast for the development of the building stone market until 2026 

The following factors make it possible to predict the dynamics of the volume of the building stone market:
...

Part 9. Recommendations and conclusions 

Macro-environment factors have a more positive impact on the development of the building stone services market. Among the most positive factors on the market are: high rates of housing construction, the existence of national projects aimed at developing the construction industry, preferential mortgages, digitalization, stabilization of exchange rates, restoration of the population's solvency, and improvement in GDP values.
...

The following recommendations can be made to both new and existing operators of the building stone market:
...


Diagrams

Diagram 1. The ratio of imported and domestic products in the building stone market, 2017–2021, %
Diagram 2. Dynamics of the volume of the building stone market, 2017–2021, thousand tons
Diagram 3. Revenue (net) from the sale of building stone by union territories for 2017–2021, %
Diagram 4. Dynamics of India's GDP, 2012-Nov. 2021, % to the previous year
Diagram 5. Monthly dynamics of the US dollar against the rupee, Rs. for 1 US dollar, 2016-Dec. 2021
Chart 6. The number of commissioned total residential area in India, 2017-2021, mln sq. m
Diagram 7. Population dynamics in India, as of 01 Jan. 2012–2021, million people
Diagram 8. Dynamics of real incomes of the population of India, % to the previous year, 2012–Sep. 2021
Diagram 9. Industry life cycle stage
Diagram 10. Shares of the largest competitors in the building stone market in 2021, %
Diagram 11. Dynamics of building stone production in India for 2017–2021, thousand tons
Diagram 12. Dynamics of the total revenue of the largest manufacturers (TOP-5) of building stone in India, 2017–2021, million Rs.
Diagram 13. The share of exports in production for 2017–2021, %
Chart 14. Production of building stone by states of India, %, 2021
Diagram 15. Volume and dynamics of imports of building stone in physical terms, 2017–2021, thousand tons
Diagram 16. The volume and dynamics of imports of building stone in monetary terms, 2017–2021, thousand US dollars
Diagram 17. Dynamics of building stone exports in physical terms, 2017–2021, thousand tons
Diagram 18. Dynamics of exports of building stone in monetary terms, 2017–2021, thousand US dollars
Diagram 19. Balance of exports and imports, 2017–2021, million Rs. 
Chart 20. Structure of exports by countries in 2021, %
Diagram 21. Dynamics of building stone consumption in physical terms, 2017–2021, kg/person
Diagram 22. Forecast of market volume in 2022–2026, million tons


Tables 

Table 1. Preferential mortgage programs
Table 2. STEP analysis of factors influencing the building stone market
Table 3. Main companies participating in the building stone market in 2021
Table 4. Profiles of companies participating in the building stone market in 2021
Table 5. Dynamics of building stone production in India by union territories, 2017–2021, thousand tons
Table 6. Structure of imports of building stone by importing countries in 2021
Table 7. Data on completed tenders for the purchase of building stone with a contract amount of more than 3 million Rs., 2020-2021
Table 8. Average producer prices in the building stone market by Union Territories, Jan.-Oct. 2021, Rs./thous. conv. bricks
Table 9. Average consumer prices in the building stone market by state of India, 2017-Nov. 2021, Rs./thous. PCS.
Table 10. Assessment of factors of investment attractiveness of the building stone market


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