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Swachh Bharat mission: World's largest toilet-building initiative drives sales of sanitaryware, hygiene products

An increase in use of sanitation equipments is expected to impact the toilet-related products and services market

twitter-logo BusinessToday.In   New Delhi     Last Updated: July 31, 2018  | 13:40 IST
Swachh Bharat mission: World's largest toilet-building initiative drives sales of sanitaryware, hygiene products

PM Modi's initiative of universal sanitation cover by 2019 is not only turning out to be the world's largest sanitation drive but is also proving to be beneficial to sanitaryware manufacturers. Under the Swachh Bharat mission, the government plans to construct 111 million toilets in an attempt to improve health, sanitation, safety and dignity of millions of Indians. Since the initiative in 2014, around 80 million toilets have been built, as mentioned in a report in Bloomberg.

To see this mission to fruition, the drive has spurred an increase of 81% in sales of concrete building materials, along with 48% jump in sanitation wares.

An increase in use of sanitation equipments is expected to impact the toilet-related products and services market. The market is expected to double up by 2021 to $62 billion.

This is good news for companies like Indian Hume Pipe Co that secured major orders for hume pipes for water supply and sewerage products across six states in India amounting to $300 million in 2018 fiscal year.

There is an increase in demand in toilet-care products as well. The Slough, England-based parent company of popular disinfectant Dettol saw an increase of 11% in sales to $105.7 million last year, the report says. The company has also been increasing awareness of its cleaning products by working closely with open-defecation-free communities and households.Other companies, including Hindustan Unilever joined the bandwagon and has been working to make toilets accessible and affordable with it Domex Toilet Academy.

Such initiatives are enforcing the penetration of homecare as well as toilet-care products into Indian households. In fact, sales of sanitaryware and tiles that are predicted to increase by 11% annually till 2022 should have seen a higher sales number but have not since most of these companies are collaborating with the government as a social initiative instead of a business opportunity.

Japan's LIXIL Group has also supplied thousands of twin pit toilet systems that enable individuals to manage excreta safely without proper sewage connections. These systems cost $10 per piece.

Tata Group's steel division makes a modular toilet, called Nest-In, with a bio-digester option and opened public toilet blocks at rest stops along a national highway.

Open defecation that contaminates food, water and spread diarrheal diseases resulting in malnutrition and childhood stunting costs India 6.4% of its gross domestic product. Needless to say, the success of the initiative will also positively impact the country's economy.

Not only businesses and companies, the initiative has grown branches in the popular culture as well. Akshay Kumar's movie Toilet: Ek Prem Katha also revolves around the issue of a house without a toilet.

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