Adhesives and sealants is one of the niche seg-ments of the chemi-

cal industry and contribute to numerous applications in

the building and construction industry. By definition, a seal-ant is a viscous material that changes state to become solid on application to the substrate

to prevent the penetration of air, gas, noise, dust or liquid from one location through a barrier into another. Typically, sealants are used to close small openings that are diffi-cult to shut with other materi-als, such as concrete, drywall, etc. “Desirable properties of sealants include insolubil-ity, corrosion resistance and adhesion. Sealants are used for diverse applications across many industries like construc-tion automotive and aerospace industries,” explains Mangesh Dhamele, General Manager, Projects, Choksey Chemicals.

Indian ScenarioThe Indian adhesives and

sealants market is highly com-petitive and fragmented, with large numbers of small and specialized suppliers. In addi-tion to small distributors who import these chemicals, there are a few foreign companies who have their local manufac-turing operations in India. In India the demand for adhe-sives and sealants is driven from new projects as well as from the maintenance of exist-ing structures. The new laws provide for demolishing exist-

ing old structures and con-structing new high rise build-ings. Consequently, therefore the demand for adhesives and sealants for renovation of these existing buildings has been on the rise in the short term. Additionally, the tropi-cal climate and the inferior construction material used by builders also cause many of these buildings to need repairs much earlier.

International ScenarioWorldwide, the adhesive

and sealant market has seen inconsistent growth in the past couple of years owing to recession and resulting decreased demand from the developed world. Recession had taken a toll on the con-struction activity around the globe and this had a rub-off effect on the adhesives and sealants industry. However the ever growing BRIC economies will always present a whole lot of opportunities for the adhe-sives and sealants products. The demand will be mainly driven by the infrastructure sector which is growing at a fast pace, especially in India and China.

Rising raw material costs Adhesives are made up of

polymers and the choice of polymers depends on the final end-use application. Polymers made from petroleum prod-ucts have been experiencing supply pressures due to ris-ing crude costs. Manufacturers today are looking at bio-poly-mers to minimise the impact of supply side pressures. To cite an example, one particu-lar polymer building block that has experienced supply challenges over the past sev-eral years has been Isoprene. Isoprene is used to produce polymers for a variety of appli-cations ranging from tooth-brush handles to high-perfor-mance, engineered pressure-sensitive adhesives. Suppliers of isoprene-based polymers recognise their customers’ sen-sitivity to the supply volatility, and they are taking steps to develop alternatives. In addi-tion, many of these companies are developing polymers based on bio-isoprene, a polymer building block that is manu-factured from oilseed waste. In December 2009, Goodyear, in partnership with Genencor, announced the introduction of

CMYK

Adhesives and sealants constitute one of the largest segments of the construction chemicals sector and the growth of this segment is highly correlated with the growth of the infrastructure sector, which is poised to witness a whopping Rs 2,300,000 crore investment in India. The various applications range from sealing of joints or cracks, enhancing life of old structures and reducing vulnerability of dilapidated struc-tures. Chandrashekhar Modi dissects various issues concerning the industry which is facing increased raw material costs and resistance to accept modern technology.

16|Feature Adhesives and Sealants Projects Info | 6 - 12 September | 2010

Sticking on a fast trackSticking on a fast track

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the world’s first concept dem-onstration tire based on bio-isoprene technology.

Oils and waxes are used in adhesives as performance modifiers and processing aids. Many of the products tradi-tionally used in adhesives are subject to disruptions due to petroleum dynamics. Produced as a bottom-stream in the fractional distillation of petroleum, paraffin wax can be captured and further pro-cessed to be used in the gaso-line pool. As gas prices rise, paraffin waxes become less available. Vegetable oil compa-nies, such as Cargill, are today working on corn- or soy-based oil and wax replacements as alternatives.

Tackifying resins improve

specific adhesion to a variety of substrates. Hydrocarbon tackifiers are manufactured from the byproducts of eth-ylene and propylene produc-tion. When they were originally introduced, hydrocarbon res-ins were offered as synthet-ic alternatives to naturally derived resins. At the time, it made sense because they were cheaper and readily available. With more companies focus-ing on long-term supply sus-tainability, bio-based resins are now back in vogue as nat-ural alternatives to synthetic resins.

Recent advancesIndian adhesives indus-

try can be still considered to be in a dormant stage due to

inadequate understanding and acceptance of emerging mod-ern technologies across the globe. The electron beam (EB) technology is a recent technol-ogy and it continues to grow from strength to strength. The high curing efficiency inherent with EB provides low odour and extractables, as well as more complete laminate bond-ing. In addition, the potential for extremely high line speeds, coupled with less expensive EB equipment, has resulted in wider acceptance and adop-tion by end users in the mar-ketplace.

The most prevalent prob-lems with the technology have traditionally involved the cost of installing EB equipment, the overall size of the equip-ment (i.e., its ‘footprint’ on the production floor) and the high voltage output from the process that could potentially damage some fragile compo-nents. During the past decade, low-voltage EB equipment in the 90-110 kV range has been developed and overall equip-ment costs have dropped into a more acceptable range.

Several attributes have sup-ported industry growth for EB-curable laminating adhesives. The fact that instantaneous bonds are created, along with ultra-fast-cure speeds, offers converters a quick turnaround time for their laminated prod-ucts. Typical formulations are one-part, stable, easy-to-clean systems offering properties such as low migration, low or no volatiles, and adequate shadow cure.

Going aheadThe market for adhesives

and sealants is growing at the rate of 20 per cent, with sig-nificant variations between the regions. Historically, the indus-try was dominated by a few industrialised countries. Now, a significant portion of new demand is being generated by emerging economies such as India and China. Market frag-mentation continues as new adhesive demand is generated from a supply and demand standpoint. “As India is emerg-ing as a leading manufacturing centre for a number of multi-nationals, the adhesives and sealant sector is growing fast, and the demand growth is also supported by the emergence of new market applications

that result from changing sub-strates and evolving assembly processes,” explains Sushil Luniya, President, Pidilite. On the supply side, despite ongo-ing industry consolidation and M&A activities at the level of

the multinational companies, new small- and medium-sized companies are beginning to serve targeted market niches or specialise in a specific state-of-the-art technology.

CMYK

6 - 12 September | 2010 | 2010 | Projects Info Adhesives and Sealants Feature|17

Info ProfileSTP: Creating valueSTP, formerly Shalimar Tar Products, belongs to the Turner Morrison Group. STP is engaged in the production of a wide range of chemi-cals, bitumen & coal-tar based products which find application in the construction space. The product portfolio includes waterproofing chemicals, sealants & adhesives, specialty coating, anti corrosive products, bituminous based products, epoxy flooring, road surfactants including road marking paints and coal tar based products. STP has pan-India pres-ence and is backed by rich experience of highly qualified and experi-enced technocrats. Having a proven track record in waterproofing, corrosion protection and epoxy flooring, STP caters to a large num-ber of prestigious clients, some of which include Indian railways, MES, ONGC, IOC, Reliance, L&T, Hyundai, PSL and many central and state government departments.

For further info: www.stpltd.com, Email: dghosal@stpltd.com, co@stpltd.com

Fairmate: Building valueFairmate is an ISO 9001, ISO 14001 and ISO OHSAS 18001 certified Indian MNC having its corporate office and production facility at Vadodara. The company manufactures a complete range of specialty construc-tion chemicals. The products portfolio includes concrete admixture, waterproofing System, engineering grouts, industrial flooring system, surface treatment, concrete repairs, prepacked concrete and mortar, protective coatings, tile adhesives and polysulphide sealants. The products have been thoroughly tried and tested nationally as well as internationally by various authorities including NHAI, AAI, EIL and NHPC among others. The company’s special focus on research has helped it in consistent development of innovative products. Recently the company has forayed into eco-friendly energy-saving products by associating itself with Indian Green Building Council (IGBC).

For further info : www.fairmate.com Email : sales@fairmate.net

Cera-Chem: Unraveling growth Cera-Chem, being one of the leading companies present in the Indian construction chemicals space, is prominent in the industry for nearly two decades. The product range comprises of high performance chemicals required for civil engineering constructions and repairs. These include concrete admixtures, water proofing systems, industrial grouts, anti-corrosive coatings, protective and decorative coatings, concrete repair products, industrial floorings, concrete surface treatments, tile adhesives and joint fillers, joint sealants etc. Cera-Chem products are manufactured under stringent quality control using ingredients sourced indigenously as well as imported. The clientele of Cera-Chem includes prominent names among Indian construction sector including government and private units. Recently the company has launched a series of retail products viz., Cera Wallputty, Cera Fibermix, Cera Water Repellant, Cera Dampproof etc.

For further info: www.cerachemindia.com Email: corporate@cerachemindia.com

India has Rs 2,300,000 crore plan for development of infra-structure. How much of this, according to you, will perco-late into the adhesives and sealants industry (for applica-tion in B&C)?

Yes we look forward to this investment by Indian govern-ment and according to our estimates, approximately Rs 23,000 worth construction chemicals will be consumed, out of which adhesives and sealants will get Rs 250 crore worth share of the pie. This investment will percolate into various segments like roads, buildings, airports, canals, power plants etc.

What is the current market size of the adhesives and sealants

industry and what is the rate at which the industry is growing?

Current market size for adhesives and and sealants is anywhere between Rs 250 – 300 crores and is growing at the rate of 20 per cent annu-ally, to meet the every increas-ing demand for construction projects mushrooming in the country.

Adhesives and sealants find extensive application in diverse areas. Please elaborate.

There are different types of adhesives and sealants avail-able in Indian market which confirm to various standards for different applications. Based on type of raw materials sealants can be classified into polysulphide, polyurethane,

neoprene, silicones, epoxy, butyl, epoxy-polyurethane, rubberised bitumen, polymer-ic asphalt, coal tar, PVC and acrylic polymers. Sealants are chosen for requirements like sealing of cracks formed dur-ing construction, contraction

or expansion; sealing longitu-dinal joints of roads, runways, buildings, canals, etc.

Most of the adhesives and seal-ants are manufactured from petroleum products. Will the rising petroleum prices put cost pressures on the supply side?

Rising prices of petroleum will definitely put pressures on prices of raw material, which will show up in the final cost of the product.

Are there any regulatory norms for adhesives and sealants used in B&C industry?

Sealants are subject to vari-ous standards for different applications. These include British standards (BS) 4254 ( for

buildings ), BS 5212 (roads and runways), PPM 400 ( nuclear radiation resistance grade), EN 141875 ( hydrolysis test), ASTM D5893, DIN 18545 – 2, EN 1279 – 3, Indian standard 12118 and various other defense related grades applicable for aircraft and submarines. Apart from the standards sealants should be tested with independent laboratories before using on site.

How do the future prospects look like?

Future prospects look extremely lucrative, as many professionals and even end users have understood the benefits of using sealants instead of bitumen or other flexible materials.

“Adhesives, sealants market is growing at 20 per cent pa”

Mangesh Dhamele, General Manager - Projects,

Choksey Chemicals

Demand Drivers1. Current scenario many

architects & builders rec-ommend structural glazing or aluminum composite panels for beautification of buildings. 50 per cent growth is expected every year for sealants confirming to standards DIN 18545-2, EN1279-3 which are used to seals joints of panels. Hence sealant requirements also will grow from 1.8 billion to 2.5 billion per annum.

2. Approximately 3000 kms of concrete roads has been constructed by NHAI & other government bod-ies in the past 12 years, which are due for repairs or replacements.

3. NHAI and Ministry of Road Transport and Highways plans to construct 20,000 km of expressways which will be concrete pave-ments due to its cost effectiveness, low mainte-nance cost and durability where in sealants require-ments would be huge. If dreams of Mr. Kamal Nath - Minister for Roads & Shipping Industries come true and expressway proj-ects are completed as per the scheduled, then gold-en era for sealant require-ment will start from FY 2014 (requirement of 500 mt per month) till FY 2022. It will be impossible for any construction chemical manufacturer in India to

meet such demand. Hence huge investments and planning are required to meet the demand.

4. Looking into the growth of aviation sector, Airport Authority of India (AAI) has ambitious plans to construct 25 International Airports. Construction and upgradation of all existing airports in India till 2020 will requires huge quantum of sealants.

6. Power Projects: Nuclear / Thermal / Hydro based power plants are planned and required in India to supply un-interrupted pow-er supply to household and industries Government has planned mega and ultra-mega power plants through public-private partnership. This will again require huge radiations-resistance grade sealants.

7. Apart from these infra-structure developments, government plans mega river projects through inter-linking of rivers which will require sealants in large quantities to seal joints.

Source: Choksey Chemicals

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