Published on July 8, 2015

Chemically similar but functionally different.  Such groups of formulated products are called as Adhesives and Sealants. Adhesives, majorly comprises of polymers, petroleum derived plastic resins, synthetic rubber and additives in order to enhance its characteristics. Most common industries where adhesives and sealants consumption is uppermost include construction, footwear, consumer durables, automotive, assembly, packaging, labeling and transportation.

Rapid industrialization and growth in infrastructure has benefited this industry as well. The industry has witnessed a high growth and demand. One of the major factors attributed to this growth and development is advancement in the technologies. China is the biggest consumer followed by India in South Asian Pacific region. When we study about the Asian-Pacific market, the data continue to remain in positive trend. Since Indian economy is and developing economy, this industry has achieved very high turnover but still it is very fragmented in nature. The industry in India needs proper consolidation. A major company like Henkel is very positive for investment in India. In fact, they have further plans to set up manufacturing units in India. They generate more than 1,000 crore of revenue only from Indian operations. Adhesives uses are so wide that you cannot segregate its consumption and is difficult to analyze their market share. This category of product has got a lot of variety.

The major concern for this industry is volatility in raw material prices. The ever fluctuating raw material prices are affecting all the industries associated to them. Moreover to overcome this scenario is the manufacturers are investing more and more in R&D activities. This will enable them to come up with low cost products under the stringent rules and regulations associated to environment. Furthermore, it will increase their product portfolio.