Building materials segment faces heat due to the lockdown

Growth in the building material sector is also facing heat due to the COVID-19 impact. The sector’s growth has been substantially impacted due to muted real estate growth and it would see further decline due to COVID-19 outbreak.

According to industry experts, the plumbing pipe segment will however be relatively less impacted followed by the adhesive segment and the categories like tiles, wood panels and sanitaryware segment may face maximum heat during the crisis emerged due to lockdown.

The prolonged lockdowns in several states on account of COVID-19 may in a nutshell impact the entire building material sector for a long time. However, the organised plumbing pipe segment is likely to be relatively less impacted  due to growth in affordable and mid-income housing projects and sustained replacement to the traditionally used GI/CI pipes.

Demand in metros and key tier-1 cities has seen some deceleration with calibrated lockdowns particularly in the second fortnight of the month. Retail sales is also low due to less footfalls.