Currently valued at Rs 1,500 crore, the Indian bath and sanitaryware market has emerged the second largest by volume in the Asia-Pacific region A careful reading of various ancient civilisations would help you conclude that the concept of toilet came into being only when man learnt to have an established abode. Therefore, it can be said that developments in civilisation and sanitation have been coexistent. The more civilised a man became, the more sanitised he was and the other way round.
From John Harrington’s water closet to modern bathroom, the concept of sanitation has undergone a sea change. Increasing emphasis on aesthetics and enriched lifestyle have transformed today’s bathrooms as a space for rejuvenation at the beginning of the day and relaxation at the end of it. In India, the Mughals for the first time constructed luxurious bathing and massage facilities inside the palaces and brought in the institution of Gushalkhana (toilets) around 1665.
Currently valued at Rs 1,500 crore, the Indian bath and sani
 taryware market has emerged the second largest by volume in the Asia-Pacific region. In a recent poll conducted by ConstructionBiz360, a record 67% voters feel that the dynamic rise in the rate of property construction over the last few years has facilitated in giving the country’s sanitaryware industry a facelift, while 33% chose to remain neutral.
Real estate, the demand driver
Back in 1991, around 64% of urban households and 9% rural households had access to sanitation services. In 2005-06, the figure shot up to 83.1% and 25.9% for urban and rural India, respectively, and the demand for access to sanitation will continue to grow over the coming years. The industry witnessed robust growth over the last 5-6 years primarily on the back of realty boom, opine sectoral analysts.
“Real estate, including residential projects, office space, retail realty, healthcare facilities and hotels, not only plays a crucial role in the overall growth of the sanitaryware business but also indirectly boosts the sanitaryware retail market, says B Krishnamurthy, marketing head of Hindustan Sanitaryware & Industries Ltd (HSIL), the country’s largest sanitaryware manufacturer possessing a market share of over 40%.
Speaking to a TJCD correspondent on the company’s current big picture, Mr Krishnamurthy said that it acquired the bathroom fittings division of Havells India, under the brand name ‘Crabtree’ and expects to zoom its turnover to Rs 3,000 crore in the next 3-4 years.
Following is a brief sketch of the various realty segments driving sanitaryware demand:
Residential apartments: Increasing demand for residential apartments across India is giving a thrust to the sanitaryware market. The demand for high-end residential sanitation mainly pops up from tier I cities, opine property developers and sanitaryware players.
Office space: Close to 80% demand for office space in India is driven by the IT/ITeS sector. At present, sectors such as telecommunications and BFSI[i] are also recognised as major demand drivers for office real estate. Increasing office spaces, together with focus on sophisticated interiors have led to a demand surge for high-end sanitaryware.
Organised retail: Organised retail, which currently occupies 5% market share, is expected to account for 12-15% of total retail sales by 2011,[ii] thereby uplifting the sentiments of the premium sanitaryware market. Mushrooming of shopping malls across India will play a significant role in this regard.
Healthcare facilities: The size of the healthcare industry is expected to touch US$77 billion (bn) by 2012 from the current size of US$35 bn, thereby growing at an annual average rate of 23%. Consequently, this would drive the demand for sanitaryware.
Hotels: With the hospitality industry expected to witness 8.8% growth during 2007-16, India is considered as the second fastest tourism market globally. Moreover, the country currently has 110,000 hotel rooms and plans to add another 140,000 hotel rooms by 2010, resulting in a growing demand for sanitaryware products.
Road ahead
The sanitaryware industry is projected to grow at an average annual rate of 15-20%, following increasing construction activity, rising disposable income and growing demand for access to sanitation.
Speaking on access to sanitation, Mr Krishnamurthy says only 32% of the Indian population enjoys sanitation facilities currently, when compared with 85-90% in other developing nations.
Furthermore, it is projected that India will witness an average addition of 7.75 million dwelling units annually. In contrast, the country also faces an acute shortage of 24.71 million houses at present.[iii]
“There was a 25% decline in demand for sanitaryware products over the last one and a half years. However, currently the demand is picking up with growing economy and increasing real estate activity,” says Gulshan H Bajaj, proprietor of Gulshan Ceramics, a mid-sized sanitaryware dealer in Bengaluru. When asked about customer preference, Mr Bajaj took names of Hindware and Jaquar for sanitaryware and bath fittings, respectively.
The concept of formal hygienic toilets has become a necessity for every house, as India is looking forward to improved sanitation. Going forward, huge demand for housing, along with increasing awareness for sanitation and government initiatives will continue to drive the sanitaryware market in India.
Jeeta Bandopadhyay
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