WFM interacted with Mr. Prabhakaran to know more about the market for uPVC windows in India compared to other window materials, the advantages of uPVC as a material for façade and fenestration, the role played by VEKA as a brand in the evolution of uPVC windows & doors, the journey of VEKA in India and the major milestones achieved by the company, the major challenges faced by the uPVC industry, and the future expansion plans of NCL VEKA. Here are the excerpts from the interview.
We have been using wood, aluminium and uPVC windows and doors. How is uPVC as a material more sustainable than others?
Compared to conventional window materials like wood, steel and aluminium, uPVC profiles emerged as a more sustainable alternative because of:
- Functionality: High insulation, low maintenance, weatherproof, dustproof and soundproof.
- Aesthetics: Good look, a neat and clean factory-finished system
- Prefabrication: Ease of fabrication and installation, ideal for large-scale construction
- Airconditioning usage: Better heat insulation resulting in around 30% energy-saving
What are the advantages of uPVC as a material over the others like aluminium?
Unlike aluminium, which has poor thermal insulation due to high thermal conductivity, heat absorption is reduced drastically in uPVC due to wider profile depth and multi-chamber sections.
Because of mechanical jointing in aluminium systems, corners render poor results from acoustic insulation angle, whereas in uPVC, it is excellent in terms of acoustic insulating properties because of multi-chambered profile sections and welded and leakproof corners.
Conservation of energy is another major advantage with uPVC because aluminium requires three times more energy for production compared to uPVC
uPVC will not warp, lasts for a lifetime, and surface quality is maintained throughout its life. Whereas aluminium can warp, and the anodising/powder coating wears out and corrosion sets in.
Please tell us about the introduction of uPVC windows and doors in India.
uPVC windows were initially launched during the late 1980s and early 1990s. But was a non-starter, owing to the adoption of the wrong business model, lack of concept selling and existing materials well entrenched. Further, in those days Indians in general had a poor perception about plastics.
However, from early 2000 onwards more organised efforts were put in by Indian and European companies. The uPVC industry was able to change the perceived mindset about uPVC windows.
Having originated in Europe, the initial profile/system designs were mainly suited for European climatic conditions and window types. Over the years various India-specific profiles/systems have been developed
What is the role played by VEKA as a brand in the evolution of uPVC windows & doors?
We started with 4 extrusion lines and 20 dies in 2009. Presently we have 28 extrusion lines with more than 150 dies in a factory spread over 250,000 sft. We sold over 15,000 tonnes in FY 2023-24.
We are growing at a CAGR of 20%. Over the years, VEKA has grown as a market leader in the country both in terms of market share and production capacity. We also have a business vertical dealing with uPVC hardware under the brand name OBEN, which is the registered trademark of NCL VEKA for hardware, offering customised solutions to fabricators.
Tell us about the market for uPVC windows in India compared to other window materials.
In the first 20 years after its introduction, the market share of uPVC in India was 22% as against 15% in Germany, i.e. India witnessed a faster adoption rate. The current market share of uPVC is more than 60%.
Please tell us about the company VEKA and your journey in India. What were the major milestones?
NCL VEKA is a joint venture company between VEKA AG, Germany, and NCL Group, India. VEKA, with a track record of over 50 years, is the Global leader in uPVC profile systems with 23 production plants across 4 continents and has its headquarters in Sendenhorst, Germany.
The major milestone is the setting up of the state-of-the-art new factory near Hyderabad in 2019 with enhanced production capacity.
Where are your manufacturing plants located? Tell us about the present production and the capacity.
The main plant with a built-up area of 250,000 Sft. is located near Hyderabad. The production facility consists of 28 extrusion lines with a production capacity of 28,000 tonnes of uPVC profiles per annum. Our manufacturing facilities also include two fabrication units in Hyderabad and Bangalore for fabricating windows & doors for large project clients in South India. It has the capacity to fabricate more than 150,000 sft. of uPVC windows & doors per month.
Tell us more about your plant. What is the role played by automation?
At our factory, we have a fully automated uPVC compounding plant wherein raw materials are mixed according to the formulations, and the mixed compound is stored in silos (large storage tanks of 15 – 20 tonnes capacity) and then fed to the extrusion lines.
During compounding or distribution to the extrusion lines, no manual handling is involved.
What are the testing methods used to ensure the quality of VEKA products?
We are equipped to test the following quality parameters at our factory to ensure the quality of our VEKA products.
- Raw materials are tested for bulk density, moisture content and particle size.
- Profiles are tested for dimensions, gloss, visual appearance, heat reversion, cold impact, thermal stability, Vicat softening, impact strength and weld strength of corner joints.
Please brief on NCL VEKA’s business models and operations in India. How do you support your fabricators?
The uPVC profiles business runs on a hub and spoke model i.e. the extrusion companies supply profiles to fabricators who in turn fabricate and install the windows.
NCL VEKA is a one-stop solution provider to our fabricators, and we supply profiles and accessories required for the windows.
From our extrusion facility in Hyderabad, we supply profiles and accessories to our 180 authorised fabricators spread across more than 100 cities and towns
With an objective to provide the end consumer with the best quality products and services, we support our fabricators in the following areas:
- Factory setup & machinery procurement
- Design and software with ongoing support
- Training programmes at regular intervals
- Sales & marketing
We have the largest marketing and technical team in the uPVC profile industry to support our fabricators.
What are the major challenges faced by the company?
The profile industry is majorly dependent on imported raw materials. Pandemics, war, and bilateral relations pose challenges.
Small extruders with low-quality standards are impacting price and general standards. This percolates to fabricators and end consumers impacting the uPVC industry. China and Germany are extreme examples.
In China, uPVC market share has been depleting because of low-quality standards, whereas in Germany the industry has been doing well because of the standards being maintained.
BIS has introduced standards for uPVC profiles. However, the adoption of standards across the construction industry could be a challenge.
What are the prospects for uPVC fenestration in the Indian market, and what are the major drivers? Where do you see the uPVC door and window industry by 2030, or the next 10 years?
The prospect for uPVC fenestration in the Indian market looks bright with the following major growth drivers.
- Windows becoming a more ‘involved’ purchase and it is among the fastest-growing building materials
- In a growing market, uPVC is expected to take a larger piece of the pie
- Market size of approximately 130,000 tonnes in 2023
- More than 50 extrusion companies
- More than 3000 fabricators
In the next 10 years:
- Faster adoption rate in India, phenomenal growth from 22% to 40 – 45%
- 10000 fabricators, 10x dealers
- Opportunities – Urbanisation, home improvements, smart windows, more variety, replacement and service
- A window showroom at every street corner
- Window dealers with showrooms will play a significant role
- A window will no longer be just a window; in the future, it will be much smarter and not just a mere architectural element
What are the future plans of NCL VEKA as one of the largest brands in the window and door market?
Our investment in the uPVC industry is the highest in the country.
We plan to grow by 20% YoY and hence are continuously expanding our capacities. We not only invest in expanding our capacities but also in the upgradation of machinery and processes for enhancing efficiencies i.e. both quality and productivity. We also invest in new profiles to provide a wider range for discerning Indian consumers.