Cost of Facades will go up by 20%, Construction Cost by upto 25%: Prashanth Reddy

In the last one year, crucial input materials such as steel, cement, resin & plywood have all seen a price increase.This will result in an increase in cost of facades and thereby in the cost of construction. However, the industry is not likely to get impacted as there have been signs of positive recovery post the second wave, which is here to stay.’

In an exclusive interview with News Experts, Dr Prashanth Reddy, Managing Director of Fundermax India, leader in architectural solutions for interior and exterior applications, talks about the reasons for the rise in building material costs, the current real estate industry scenario and the demand for facades.

News Experts:What are the reasons behind the continuous increase of input material prices in the market?
Dr Prashanth Reddy: The primary reason is shortage of basic raw materials especially coming from natural sources like mining., imports, labor-oriented industry output etc. Added to that are the rising transportation costs, shortage of containers and in some cases even working capital crunch.

On other side there is demand drive including export demand from west and with shortages, the prices are going up too.

News Experts:What will be the resultant impact on construction cost due to the increase in cost of building materials, especially facades?
Dr Prashanth Reddy:We see increase in construction costs between 15-25% overall and façade alone by over 20%.

News Experts:How much business improvement has Fundermax seen post second wave lockdown compared to pre Covid?
Dr Prashanth Reddy:Overall, the real estate market is showing very good signs of positive recovery and there is also this pent-up demand.Besides, certainsupportive initiatives from the government are encouraging buyers in the market.

At Fundermax, we have witnessed an increasing demand after the second wave. Revenue wise, we are in a better position than 2020. Our preparation with all the right investments in stock and right people helped us in tackling 2021 in the best possible manner.

News Experts:What will be the cost future buyers/customers have to spend on building materials as compared to pre-covid days?
Dr Prashanth Reddy:Past few months, we have seen a price increase of building material by upto 25% when compared to pre-covid days. The increasing freight cost and fuel prices are also adding to the cost. Therefore, the overall spend for future buyers will considerably go up.

News Experts:What are sustainable facades? What are the overall cost benefits of sustainable facades?
Dr Prashanth Reddy:Fundermax offers a rain screen façade system, which is sustainable in nature and improves building protection. It enhances the functionality of the overall façade with respect to heat and noise reduction and better weather protection. It acts as external skin or envelope to the building protecting from heat, rain, and other extremes. A well-designed sustainable façade is thermally efficient; it reduces the thermal bridges, condensation of water vapor, and protects the building.

This type of façade system is best suited for tropical climates wherein you can optimize temperature levels inside a building by keeping the heat at bay.The revolutionary rear ventilated façade system from Fundermax maintains a gap between the building envelope and cladding, and between cladding elements. This leads to continuous movement of air behind the cladding, which in turn helps in sustaining a comfortable temperature. This eventually leads to lesser air conditioning load of the building, thus impacting the cost. Moreover, since the panels are easy to maintain, they don’t incur any periodic maintenance costs.

News Experts:Any plans to expand Fundermax India business to meet customer demand in and around India?
Dr Prashanth Reddy:Fundermax is a complete solution provider, supplying not only Max Exterior and Interior panels but also Fundermax developed installation system. A network of trained & experienced ‘Fundermax authorized Business Partners’ across the country, supports the installation of a complete system at the site. The installers are trained at the Fundermax head office in Bengaluru.

We are market leader in exterior segment and we are going to expand in interior segment by end of year 2021. Some of the segments we are going to expand are as below:

Max Interior panels suitable for durable partition system for restrooms, cubicles & internal wall claddings.
MFC (Melamine-faced chipboards) & MDF for interior furniture and kitchens.
Max Resistance2 is a niche offering that is specifically used for laboratory tabletops.