Mulk Holdings to capture Indian market says expert
Frost & Sullivan says new aluminium plant will feed growing demand
Business consultancy firm Frost and Sullivan has said UAE-based conglomerate Mulk Holdings' commissiong of a $9.99m Alubond Composite Panels plant in India will help it capture a share of the local market.
Earlier this month (March), Mulk revealed the facility, which marks the first part of an $81.7m expansion into the country, would be spread over a 10-acre land and primarily serve the growing Indian construction market.
Frost and Sullivan says it is a smart move given that over the last decaded in India aluminium composite panels (ACP_ have rapidly become one of the emerging alternatives for exterior emulsions principally in the commercial construction which includes the likes of corporate houses, shopping centres and hotels. It further notes that the ACP market in India is rapidly growing, with the domestic sector witnessing a rise of about 25 per cent year-on-year.
S Venkatesan, director, metals and minerals p[actice, Frost & Sullivan, said: "This robust growth is mainly driven by the revolution brought in by the IT companies in Architectural esthetics of their buildings.
"Currently, more than 20 brands are sold in the Indian market spearheaded by world renowned brands like Eurobond, Aludecor, Alstone, Alubond, and Primebond. These manufacturers are creating awareness about ACP through direct sales to construction projects. The Indian ACP market will foresee many more players entering the scene in the next two to three years.
This investment in India will help Mulk Holdings to capture the local market base along with having the flexibility of an additional manufacturing unit. The Group’s net revenue realisation will improve due to low cost of production in India. Additionally, they will be able to assist their Indian clients through just in time deliveries providing cost benefits along with establishing new accounts in India.