u-PVC profiles-Opportunities and

Challenges

Farid Khan | CEO | New Delhi | 05.07.2013

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YES WE CAN- Land of Endless Opportunity

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• Windows, until now only an object behind the curtain.

• No specific attentions to this object.

• With growing urbanization we are finding noticeable

increase in noise & air pollution.

• Facing the eccentricities of heavy rain and wind.

• Difficulties in getting rid of unwanted elements with

the conventional window systems.

• Architects have made their efforts to keep them out, these elements

have still found ways to enter, mainly through gaps and cracks in

conventional windows.

And here comes the uPVC windows to provide you the

solution..!!

Windows- Scenario in INDIA

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Growth of population and human capital

• Indian population grows around 17 million per year • 35% of the population is younger than 15 years • 70% of the population is younger than 35 years • India's working-age population to rise by stunning 240m in 20 years compared with 10m in China

35% 20% 15% 12% 12% 7%

Age (in years) 15 25 35 45 60+ Sour ce: Ger man Bank Resear ch ( 2005) Gl obal gr owt h cent er s 2020, cur r ent t opi c , number 313, S 1- 36

Strength of Market

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Drivers of market

• Substitution of other window materials

increasing demand for reconstruction / redevelopment

• Emerging trend of urbanisation

• Increasing demand for living space

=> growing middle class

=> young population

=> increasing living space per capita

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Aluminium, 66%

Wood, 20%

Steel, 11% PVC, 3%

Window materials

Window market - India by material

( 4% PVC i n new bui l di ngs)

• Total market size PVC July 2012:

20,000tons

Aluminium stable , PVC surging ahead

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Advantages u-PVC over other traditional material

Eco-friendly, built with Eco-stabilizers

Excellent Weather Resistance

Requires Minimum Maintenance

Easy To Install

Highly Durable – No Rusting or Corrosion etc.

Sound & Dust Resistant

Built Tough - Enhances Security

Effective Insulator, Cuts Energy Costs

Termite Proof

Economical , Affordable

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A Closer Look at the Market

The key drivers in the evolution of the real estate market are:

• Increase in urbanization Only 300 million people live in cities, which implies an

urbanization rate of 28% (vs. China’s 40%). This means that 800 million people still

conduct rural lives. As new jobs open, the migration from the countryside is

expected to continue.

• Emergence of the middle class The wave of money generated by the service

industry is sustaining a strong growth in employment from local and multinational

corporations, with consequent need for new class A and B office space.

Conversely, new jobs are sustaining the emergence of a middle class, which desires

better housing and high quality retail.

• Redevelopment opportunity In historical downtowns, the urban quality of even

the most prime real estate locations is low by western standards. Mumbai is the

most evident case, where slums survive next to the “posh” parts of the city, and

even in prime locations, lifelong fixed rents are withholding landlords from

redeveloping decaying properties.

Sei t e 8

(Source: Deutsche Bank Research "Building up India, Outlook for India’s real estate market”)

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Standardization for u-PVC windows & doors

• BIS to lay down standards to meet Indian conditions

• IGBC associated with LEED & GRIHA working on Energy saving initiatives

• Strong need to define profile width, formulation & environmental safety

Si t e 9

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To

ns China

India

history outlook

China has grown within <15 years

to the worlds biggest PVC window

market

Mar ket devel opment China / India – compar i son and out l ook

Sei t e 10

Market Opportunity for uPVC

< 2%

60%

50%

< 2%

Sour ce: Shanghai Chl or Al kal i Chemi cal s Co. Lt d. ; pr of i ne r esear ch

India has the potential to follow Chinese growth pattern

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Goal – uPVC at its peak

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Thank you for your

kind

attention