Hyderabad, Oct 23 (IANS): Hyderabad Industries Limited (HIL), a household name in asbestos cement roof sheeting, is transforming into a manufacturer of green building products and solutions provider in tune with the changing demands of environment-conscious consumers.

The over six-decade old HIL, a C.K. Birla Group company, will continue to make asbestos cement roof sheeting as a "social responsibility" but has devised a new business strategy to focus on green building products, which are driving the growth.

The Hyderabad-based firm, which started focussing on non-asbestos building products a few years ago, has become a leader in some of them.

"Green building is the buzz word today. It makes business sense. Customers have become extremely environment-conscious," HIL managing director Abhaya Shankar told IANS.

"The government is also promoting green buildings. Responsible corporate giants like to have green buildings which are platinum rated," he said.

"We want to give to the building industry products slightly futuristic and green in nature," he added.

With pan-India presence, the largest distribution network and a strong research and development team, HIL is constantly looking to come out with new products and applications and provide complete solution support, Shankar said.

During the last three years, the company aggressively expanded capacities in roof sheeting sites as well as Aerocon Autoclaved Aerated Concrete (AAC) blocks which are used instead of red bricks and Aerocon panels which are used as partitioning materials. The company recently started dealing with steel sheeting too.

The Aerocon panels are giving the company's green products fast acceptance in the market, with a 40 to 50 percent share.

HIL holds the worldwide patent for the fibre cement sandwich panels with lightweight concrete inside.

The panels are replacing plywood, which is more expensive, harms the environment, gets eaten up by termite, gets spoilt by water and catches fire, Shankar pointed out.

AAC blocks, the large concrete but light weight blocks, help in saving energy cost and air-conditioning cost within the building by reducing the amount of steel used in tall buildings.

However, focussing on green building products does not mean the 63-year-old company will give up manufacture of crystolite asbestos roof sheeting.

"The world has no alternative to asbestos corrugated roof sheeting as an affordable hard roof. Fifty percent of roofs in India especially in rural areas are thatched roof. The rural income levels are low and they can only graduate from thatched roof to asbestos cement roof sheeting," the managing director said.

"With 20 percent market share in asbestos cement roof sheeting, we are the largest in India and perhaps one of the largest in the world," he said.

Over 80 percent of the company's revenues are still contributed by roof sheeting and less than 20 percent come from green building products. "This equation is changing. It is slow because roof sheeting is a big chunk and it is also growing."

The company, which is setting up a new asbestos cement roof sheeting plant in Uttar Pradesh, has a total of eight plants for roof sheeting, two each for Aerocon blocks and panels and one for insulation.

During the last three years, the company has invested Rs.200 crore in setting up new plans and expanding capacities.

"We will keep investing to maintain our market leadership in the areas where we are already market leaders and to become leaders in other areas," the managing director said.

"With a strong balance sheet, Hyderabad Industries can afford to target aggressive growth," he added.

The company, which has so far made the investments from its own internal resources and through some borrowings from banks, has not ruled out going to the market in future.

"So far we have not felt the need to go to the market to raise additional funds but if that situation arises in future we will not hesitate. It may happen in two-three years depending on the kind of project requirement that we may have."

HIL, which had revenues of Rs.801 crore during 2010-11, is targeting a 10 percent growth rate in its top line during the current fiscal.

"Given the demographics of India and the growth story of India, the building industry is going to be a good industry to be in with a growth rate of over 10 percent for the next 15 to 20 years," Shankar said.