The JSW Challenge 2021

Case Study

Case Study: Replacement of Asbestos Sheets with Colour Coated Sheets

Roofing industry has witnessed a paradigm shift in the last few years. The thriving urban construction sector in
India, coupled with increasing disposable incomes in rural areas, is moving roofing solutions market to the next
generation products. Industry sector is also witnessing a gradual shift towards prefabricated buildings, and is
indicating an increased willingness to try contemporary roofing materials that are easy to maintain and long lasting.
As a result, the Indian market has witnessed a major shift from asbestos and galvanized steel sheets to Zn-Al coated
sheets. Even though the shift has been notable, there is still a significant market of the conventional roofing
solutions such as asbestos, RCC, clay tiles, etc.

The benefits of the contemporary Colour Coated sheets over the conventional roofing segments are:

1. Better Aesthetics
2. Longer Life
3. Superior Technology
4. Durability
5. Thermal Efficiency
6. Easy Maintenance (Ease to clean)
7. Better Value

The present scenario of the roofing sheet market in India is as follows:

*All figures in Lac MT

Roofing / Cladding
Segment Size (FY 20) (MT) 14.3
CAGR (till FY23) 15%
Segment Size (FY 23) 21.5
JSW Target Market 14.1

*All figures in Lac

Market Size Steel Cement

Clay Asbestos/Cement Total
Type CC GC/GL Tiles Sheets
Actual Demand* (MT) 20.8 18.3 16.7 41.7
Equivalent Steel Demand*
(MT) 20.8 18.3 2.7 11.8 53.6
Area in sq. ft.* 80190 70380 10300 45300 206170

Cost Comparison
Clay Asbestos/Cement
Type CC GC/GL Tiles Sheets RCC
Thickness 0.5mm 0.4mm 12mm 6mm 150mm
Cost per sq. ft. (INR) 32.8* 28.* 50* 17* 170*
*only cost of sheet *inc. Steel and Concrete
 The JSW Challenge 2021
Case Study
Traditional roofing materials account for close to 40% across housing scenario in India. This is largely
reflective of the rural landscape which is gradually shifting towards concrete, metal and fibre cement
roofing. Concrete roof accounts for 30% of the total roofing demand across the country, followed by metal
roofs and fibre cement sheets. RCC is the preferred choice of roofing solution for the buildings in the urban
areas accounting for around 53% of the roofing demand. Metal and plastic roofs are widely used in malls
and retail outlets.

Warehousing is a leading demand driver for roofing products in India. Industry sources estimate demand
for warehousing to grow at an annual rate of around 9% over the next five years. Growing number of
factories, poultry farms, architectural buildings, cold storages and development of special economic zones
are other key demand drivers for roofing market with focus on thermal insulation and energy conservation.

Indian roofing market is estimated at INR 435 billion in 2021-22 and is anticipated to grow at 7% in
forecasted period 2022-26. Of the total market RCC accounted for a major share of around 56%.

Key deliverables:

a.) Understand each roofing segment and identify the levers / drivers behind consumer preferences for all
roofing segments.
b.) Leveraging the key drivers, develop a package to shift the consumers and influencers towards the
Colour Coated market, increasing the segment size by 20% in the next 3 years.
c.) Suggest a strategy for JSW by which JSW can grow faster than the competition and leverage its Brand
Value.