Innovations in Construction Materials Can Be a Game-changer

Rohan Saraf, a Varanasi native, embarked on his career journey after graduating from Delhi University. He enrolled in the Chartered Accountancy (CA) program, where he is now in the final stages. Concurrently, Rohan is pursuing a law degree in Delhi and gaining valuable experience through an internship at the Supreme Court under a Senior Counsel. His expertise in both accounting and law, combined with hands-on experience in his father’s paint business, positions Rohan as a dynamic force poised to elevate business growth to new heights. Rohan has not only transformed his father’s business but also he has diversified it into construction chemicals.

In an exclusive conversation with The Interview World, Rohan Saraf, Owner of Banaras Paints, delves into the B2B platform he is developing for the construction industry. He highlights his efforts to enhance the value of his company’s offerings in this sector. Rohan also discusses how government policies, such as GST, have streamlined business operations. He shares details about his clientele, provides insights into revenue generation, and outlines his future strategies. Here are the key takeaways from his conversation.

Q: Can you provide insights into your B2B platform specialized in chemical products for the construction industry? Additionally, how does it tackle the challenges faced by large companies in this sector, and what strategies does your platform offer to address these issues effectively?

A: I am poised to take our paint business to new heights, a venture that has been a cornerstone of my family’s legacy. Originally managed by my father, the business faced significant challenges when the automotive industry experienced a severe downturn due to the COVID-19 pandemic. This downturn underscored the critical need for expansion and diversification to ensure the survival and growth of our enterprise.

Located in Varanasi, the Prime Minister’s constituency, our business also leverages the developmental projects in the region. This strategic location is advantageous because Varanasi is receiving substantial investments for infrastructure development. Significant funds are being allocated for the construction of roads, buildings, and temples. Additionally, there is a flow of funds from various regions of India aimed at furthering Varanasi’s development. Major ongoing projects include the construction of a ropeway, the Kashi project, the Gunda corridor, and numerous expressways and highways. These developments create a ripe environment for expanding and diversifying our business.

In response to these opportunities, I decided to join my father’s business during this challenging period and focus on expanding our network. I onboarded several prominent companies specializing in construction chemicals, such as Sika Group, Fosroc, and BASF. These industry leaders from the UK, Europe, and the US provide essential products that are critical for large-scale construction projects.

For example, concrete, which typically sets in 30 minutes, presents challenges for extensive projects like highways where batching plants and delivery trucks can face delays. If the concrete is not poured within the initial setting time, it can become blocked and unusable. To overcome this, we employ admixtures that extend the setting time from one hour to two hours. This adjustment helps manage the water-cement ratio, enhance the concrete’s strength, and ensure the material meets project specifications.

We proudly serve as project partners for numerous companies across the country, supplying them with high-quality materials necessary for their construction endeavors. Our strategic expansions and partnerships are designed to address the evolving needs of the construction industry and capitalize on the substantial infrastructure investments in Varanasi.

Q: What kinds of value do your products provide to your clients? Can you elaborate on the key benefits and enhancements they deliver?

A: Our chemical products deliver superior value in the construction industry at a lower cost. We offer a range of products with distinctive properties designed to meet specific challenges. For instance, in underwater construction projects, chemical resistance is crucial to prevent erosion and leakage. Here, quick-setting admixtures are essential; otherwise, water can infiltrate the mixture, compromising its strength.

To address this, we use a revolutionary approach. Our liquid material converts into foam 2,700 times faster than traditional fixing agents. This rapid expansion forms a foam that not only sets the material swiftly but also blocks external water. This innovation enables uninterrupted construction progress, even in challenging conditions.

Our diverse product lineup ensures that construction projects can be executed effectively across various demanding scenarios.

Q: How have government policies empowered your business? Could you provide examples of specific policies that have positively impacted your operations and growth?

A: GST has been transformative for our business operations by decentralizing the market and removing interstate barriers, which has led to a more cohesive tax structure across India. This reform has brought about uniformity in tax regulations, greatly simplifying our dealings with clients from diverse regions. Our clientele includes major industrial areas such as Rajasthan in the North, Kanchipuram and Chennai in the South, Calcutta in the East, and Gujarat in the West.

The impact of GST is especially noticeable when managing large consignments. For example, if I am located in Varanasi and receive an order from Kolkata with the factory in Siliguri, there is no need to set up an office in Siliguri. GST facilitates this by allowing us to process transactions through a single invoice, encompassing dispatch from the Siliguri plant directly to the desired location. This streamlined approach reduces the need for extensive paperwork and simplifies the overall process. Overall, GST has significantly enhanced our efficiency and ease of doing business.

Q: Can you share the current number of clients you have?

A: We engage with prominent clients such as L&T, Tata Projects, GMR Group, and PSP Projects. Moreover, we supply construction chemicals to other leading businesses in this domain.

Q: Can you describe the current size of your business and share your vision for its growth over the next five years?

A: When I first joined my father’s business, our revenue was between Rs. 90 lakhs and Rs. 95 lakhs. Today, we have the capability to close the fiscal year with revenue ranging from Rs. 9 crores to Rs. 10 crores. This impressive growth represents a nearly 1000% increase since the onset of the COVID pandemic.

The construction sector, which relies heavily on two primary input costs—materials and labor—faces significant challenges. To address these, I plan to focus on diversifying our product offerings. Currently, 50-60% of construction costs are tied up in materials, revealing substantial gaps in the supply chain. By positioning our company as a product aggregator, we can bridge these gaps and cater to the industry’s evolving needs.

My research has shown that major multinational corporations dominate this segment, with turnovers exceeding billions of dollars. This indicates that the construction industry is a blue ocean market with ample opportunities for several unicorns to emerge.

Therefore, my long-term vision is to elevate my company to a national stature, aiming for accelerated growth in double digits. By capitalizing on these opportunities, we can significantly expand our market presence and drive sustained success.