ARC Insulation & Insulators Ltd Management Discussions

GLOBAL ECONOMY

The global GFRP rebar market was valued at approximately $1 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 8-10% over the next decade. This growth is being driven by several converging factors that are reshaping how the world approaches construction reinforcement.

The Asia-Pacific region has emerged as the fastest- growing market for GFRP rebar, fueled by massive infrastructure spending across countries like India, China, and Southeast Asian nations. Key drivers include unprecedented government infrastructure spending, growing sustainability mandates that favor non-corrosive materials, rising steel costs and supply chain volatility, and increasing awareness of lifecycle cost advantages over traditional steel reinforcement. As governments worldwide push for greener construction practices and longer-lasting infrastructure, GFRP rebar is positioned to capture an increasingly significant share of the reinforcement market. India, with its unique combination of massive infrastructure needs and challenging environmental conditions, stands at the forefront of this transformation.

INDIAN ECONOMY

Indias infrastructure is booming, and so is the demand for advanced construction materials. As the nation embarks on one of the largest infrastructure build-outs in history, the need for durable, corrosion- resistant reinforcement has never been greater. The global GFRP (Glass Fiber Reinforced Polymer) rebar market is projected to grow from approximately $1 billion in 2025 to a staggering $2.9 billion by 2035, with India emerging as one of the fastest-growing markets in this space. This blog explores the key trends, growth drivers, and opportunities shaping Indias GFRP rebar market in 2026 and beyond.

Indias Infrastructure Boom: The Perfect Storm for GFRP India is witnessing an unprecedented infrastructure boom that creates the perfect conditions for GFRP rebar adoption. The scale of investment and construction activity is staggering,

with multiple flagship programs running simultaneously across the country.

The National Infrastructure Pipeline (NIP) represents an investment of Rs 111 lakh crore (approximately $1.4 trillion) across various sectors including roads, railways, urban infrastructure, and power. This massive allocation ensures sustained demand for construction materials over the coming decades.

The Bharatmala Pariyojana program aims to construct 35,000 km of highways, including economic corridors, inter-corridors, and feeder routes. Many of these highways pass through coastal and high-humidity zones where corrosion-resistant GFRP rebar offers clear advantages over traditional steel.

The Sagarmala Project focuses on port modernization and coastal road development, creating infrastructure in some of the most corrosion-prone environments in the country. Similarly, the Smart Cities Mission is transforming 100 cities across India, requiring modern, durable infrastructure that can withstand decades of use with minimal maintenance. These projects collectively represent an enormous opportunity for GFRP rebar adoption in India.

Why India Needs GFRP Rebar Now?

Indias geography and climate present unique challenges that make GFRP rebar not just beneficial, but essential. With a 7,500 km coastline stretching from Gujarat to West Bengal, millions of structures face severe corrosion challenges from saltwater exposure and sea spray. Traditional steel rebar in these environments can begin corroding within 10-15 years, leading to costly repairs and structural failures. Indias tropical climate accelerates steel degradation significantly. High humidity regions such as Kerala, Goa, and coastal Karnataka are losing structures to corrosion at an alarming rate. Bridges, seawalls, residential buildings, and commercial complexes in these areas require frequent and expensive maintenance when reinforced with traditional steel rebar.

Even Indias desert regions face reinforcement challenges. Rajasthan and Gujarat experience alkali- silica reaction (ASR) in concrete, which can damage steel rebar from within. GFRP rebar, being chemically inert, is immune to both chloride-induced corrosion and alkali-silica reaction, making it the ideal reinforcement solution across Indias diverse climate zones. For a deeper understanding of how GFRP performs in harsh environments, read our guide on GFRP rebar in bridge and marine construction.

Key Growth Sectors in India

Several sectors in India are driving the demand for GFRP rebar, each with unique requirements that align perfectly with the materials properties.

Coastal Highway Construction : With thousands of kilometers of coastal highways being built under Bharatmala and Sagarmala, the demand for corrosion-resistant reinforcement is surging. GFRP rebars immunity to saltwater corrosion makes it the preferred choice for coastal road infrastructure, including bridges, culverts, and retaining walls.

Metro Rail Projects : Cities across India, including Mumbai, Kolkata, Delhi, Bangalore, Chennai, Hyderabad, and Pune, are expanding their metro networks. Underground metro tunnels and elevated corridors benefit from GFRP rebars non-magnetic properties and corrosion resistance, especially in waterlogged or chemically aggressive soil conditions.

Water Treatment Infrastructure : Indias push to provide clean water to every household under the Jal Jeevan Mission requires massive water treatment and distribution infrastructure. GFRP rebar is ideal for water treatment plants, reservoirs, and pipelines where exposure to chemicals and moisture makes steel vulnerable to rapid corrosion.

Smart City Developments : The 100 Smart Cities Mission demands modern infrastructure built to last. From intelligent traffic systems to underground utility corridors, GFRP rebar ensures that the foundational structures remain maintenance-free for decades.

Industrial Corridors : The Delhi-Mumbai Industrial Corridor (DMIC) and Chennai-Bangalore Industrial Corridor (CBIC) are creating world-class industrial

infrastructure. Factories, warehouses, and logistics facilities in these corridors benefit from GFRP rebars durability and reduced lifecycle costs.

Affordable Housing (PMAY): The Pradhan Mantri Awas Yojana aims to provide housing for all. Using GFRP rebar in affordable housing projects ensures long-term structural integrity, reducing the total cost of ownership for homeowners and reducing maintenance burden on housing societies.

Make in India : Domestic GFRP Manufacturing One of the most exciting developments in Indias GFRP rebar market is the growth of domestic manufacturing capability. The Make in India initiative has catalyzed investment in advanced composite manufacturing, reducing the countrys dependency on imported GFRP products and bringing costs down significantly.

Domestic manufacturing offers several advantages : reduced lead times, lower transportation costs, the ability to customize products for Indian construction practices, and better after-sales support. Indian manufacturers are now producing GFRP rebar that meets international quality standards while being competitively priced for the domestic market.

Our Company incorporated on September 10, 2008, specializes in the manufacturing and supply of Glass Fiber Reinforced Polymers ("GFRP")/Fiber Reinforced Polymers Products ("FRP") composite/constituency products which provides corrosion-resistant, tensile strength and insulating Glass Fiber Reinforced Polymer (GFRP) solutions which can be used as a substitute for steel bars/rebars. We produce dent-resistant, low thermal expansion, corrosion resistant, and insulating GFRP. Our offerings include GFRP Rebars, GFRP Granting Walkways, GFRP Pipelines, GFRP Tubes, GFRP Fencing for Transformers, GFRP Cable Trays, and other related products designed for industrial, energy and marines sectors construction and industrial applications. In addition to our core business, the company acquired the ongoing business of our promoter, M/s ARC Insulation & Insulators, a sole proprietorship, through a business transfer agreement dated June 01, 2009. Under our brand name "ARC", we supply our products for application in diverse industries including Infrastructure, Power, Cooling Tower, Chemical, Composite, Electrical Substation, Mining and others. For more information, please

refer to the section titled "History and Other Corporate Matters"

We have one manufacturing plant which is located at Ramdevpur Village, Parganas South (West Bengal) ("Manufacturing Facility"). Our Manufacturing Facility has separate seamless and welded divisions with latest products pecific equipment and machineries including Universal Testing Machine, Electronic Extensometer, GFRP Rock Bolt Making Machine, APC-2.01, Aluminium Casting Heater, 4-2 Boring Deptyhal etc. Further, we have a storage facility at our Manufacturing Facility for the purposes of holding inventories of raw material as well as finished products which ensures stability of operations.

ARCs GFRP products offer significant cost savings through extended durability and present an environmentally friendly alternative with a reduced carbon footprint compared to traditional steel and concrete. We are committed to helping our clients create smarter and more sustainable infrastructure, aligning with the increasing demand for ecoconscious and circular solutions, thereby strengthening our position in the market.

We hold ISO 9001:2015 certification and as an ISO- certified organization, for the scope of design, manufacturing and supply of GFRP products and is equipped with Universal Testing Machine and other equipment to check the quality of our products as per the specifications of our customers. We have dedicated quality assurance team of 8 employees including professionals (Mechanical Engineers, Structural Design Engineers, Civil and Quality Engineers), which closely monitors the exceptional quality of our products throughout the production process.

Our basic raw material includes glass fibers and resins and we procure our raw materials based on market availability, pricing and quality through two main channels (i) domestic suppliers (ii) international suppliers from China, Thailand etc. The cost of materials consumed (including purchase of Raw materials and changes in inventory) by us in our operations accounted for 48.47%, 51.68%, and 65.42% of our revenue from operations for the financial year ended March 31, 2025, March 31, 2024, and 2023, respectively.

Spearheading our companys strategic direction and operational oversight are Mr. Manish Bajoria (Promoter and Managing Director) and Ms. Neelam Bajoria (Promoter and Executive Director), who are dedicated to steering the company towards sustainable success through comprehensive leadership and management which is the guiding force behind all the strategic decisions of our Company. Their knowledge about the industry and understanding also gives us the key competitive advantage enabling us to expand our customer presence in existing as well as target markets, while exploring new growth avenues. In the future, we plan to expand our export business to tap into new international markets, diversify our revenue streams, and strengthen our global presence. As a part of our marketing and promotional activity, we employ marketing techniques such as participation in Exhibitions like The World of Concrete India (WOC) in October 2024 and Indian Road Congress (IRC) Exhibition in November 2024, Assam in August 2024 for showcasing our products to a wide audience of buyers, both domestically and internationally. The exhibitions and advertisements give us a platform to exhibit our products.

Our Mission : To pioneer innovative composite material solutions that enable stronger, more durable and sustainable infrastructure and industrial assets. Our Vision: To be a global leader in advanced GFRP/FRP composites through continuous research, development of next-generation products, and technical excellence in serving diverse industries.

Our company has established itself as a name in the GFRP/FRP industry through hard work and steady progress. This commitment to stringent quality measures has enabled the company to deliver impeccable end products and create a niche in the industrial segments it serves, earning the trust of consultants and clients alike.

Conclusion:

Indias GFRP rebar market is at an inflection point. The convergence of massive infrastructure spending under programs like NIP, Bharatmala, Sagarmala, and Smart Cities Mission, combined with Indias unique corrosion challenges across its 7,500 km coastline and diverse climate zones, creates an unprecedented opportunity for GFRP rebar adoption. With domestic manufacturing capability growing rapidly, government standards evolving to support FRP reinforcement, and awareness increasing among engineers and contractors, the stage is set for explosive growth in Indias GFRP rebar market. The projected global market growth to $2.9 billion by 2035 will see India capturing an increasingly significant share.

Financial Results

For construction professionals, developers, and infrastructure planners, the message is clear: the time to adopt GFRP rebar is now. Early adopters will benefit from competitive advantages, reduced lifecycle costs, and the satisfaction of building infrastructure that truly lasts. As India builds its future, GFRP rebar will be at the foundation of that progress.

The financial performance of the Company, for the year ended 31st March 2026 is summarized below:

Particulars	Year Ended 31st March 2026 (Rs. In Lacs)	Year Ended 31st March 2025 (Rs. In Lacs)
Profit Before Tax	278.31	1159.44
Net Profit After Tax	185.51	868.60

Comment on current years performance:

Revenue	Total Revenue of the Company has decreased in comparison to the previous year due to higher cost of materials and higher employee costs.
Operating Expenses	Operating & Administrative expenses have increased considerably in comparison to the previous year.
Operating Profit.	Operating Profit has decreased during the year due to a decrease in Total Revenue of the company.
Finance cost	Finance cost has decreased considerably during the year
Net Profit	Net profits of the Company during the year have decreased in comparison to the previous year due to a decrease in Total Revenue of the company.

Human Resources

We have believed that our people are our most important asset, and our HR function always places a great emphasis on employee engagement, capability building, nurture talent, and focusing on training and individual development. We have always been committed to creating an environment where all individuals are treated with respect and dignity and cultivating an atmosphere where individuals enjoy the right to work in professional environment to deliver their best results

Internal Controls

The Company has a proper and adequate system of internal controls befitting its size to ensure that all its assets are safeguarded and protected against loss from unauthorized use and disposal and that all transactions are authorized and reported correctly.

The internal controls are supplemented by internal audits, reviewed by the Audit Committee of the Board of Directors. The internal control ensures that appropriate financial records are available for preparing financial statements and other data for showing a true and fair picture of the state of affairs of the Company.

On behalf of the Board of Directors For ARC INSULATION & INSULATORS LIMITED

	SD/-	SD/-
	MANISH BAJORIA	NEELAM BAJORIA
Place: Kolkata	Managing Director	Director
Date: 07.09.2026	DIN: 02203237	DIN: 02250051