INDUSTRY OUTLOOK

Market Size & Growth

The Indian construction materials market is estimated at ₹12–15 lakh crore (~$150–180 billion) annually.

The B2B segment alone is expected to grow at a CAGR of 14–18%, driven by digitization, urban infrastructure, and government spending.

B2B e-commerce in construction is still at an early stage but gaining momentum with tech-enabled platforms like Infra.Market, OfBusiness, Zetwerk, and BuildSupply.

Key Growth Drivers

Factor	Description
Urbanization & Housing	Govt. initiatives like PMAY, Smart Cities Mission, and affordable housing drive demand.
Infrastructure Push	Massive CapEx outlays in rail, roads, and metro projects (e.g., ₹11.11 lakh crore allocated for infra in Union Budget 2024–25).
Digital Transformation	Builders, contractors, and MSMEs are increasingly adopting digital procurement to cut costs and streamline logistics.
Contract Manufacturing Model	Companies are asset-light, leveraging idle SME capacity and aggregating demand efficiently.

Industry Trends

Shift to Organized Supply Chains: Traditional procurement via brokers and local dealers is being replaced by centralized platforms that offer price transparency, faster delivery, and financing.

Tech Integration: Use of AI, ERP integrations, procurement dashboards, and logistics optimization.

Integrated Offerings: Platforms are bundling credit, quality assurance, warehousing, and logistics — creating a “one-stop shop” experience.

Export Focus: Select Indian firms are exporting to the Middle East, Africa, and Southeast Asia as regional demand for affordable housing and infra rises.

Challenges

Outlook (2025–2030)

The B2B construction materials segment is likely to cross $20–25 billion in digital GMV by 2030 .

Consolidation and hybrid models (tech + on-ground salesforce) will dominate.

Platforms offering credit + logistics + tech will be better positioned to scale.

Opportunities abound in supply chain digitization, retail dealer digitization, and cross-border sourcing.

Summary

The B2B construction materials space in India is poised for disruption and high growth. Digital-first platforms are bridging long-standing inefficiencies in pricing, availability, and financing. While the space remains competitive and margin-sensitive, those able to integrate tech, scale logistics, and manage credit risks stand to gain significantly.

Latest shareholding pattern of Hella Infra Market Pvt. Ltd.