This was addressed in one of the post earnings interactions last year. Majority of the roofing business is asbestos based. They didn’t see this to be an immediate threat, as in rural sector – there are no other alternative products available which are as cost effective, with high durability and high longevity. However they are the only company which has a strong non-asbestos based roofing product (Fortune brand). WIth some more cost efficiencies, they intend to make it most cost competitive and would be positioning it as the replacement for asbestos based product. So should not impact as much.
Flooring, Polymer and Building solutions business were newer businesses and meant to have a higher growth rate as compared to the legacy business. Also its in line with their aim to becoming a ‘One stop solution; provider.
However the downside in such cases is managing the supply chain for multiple businesses and ensuring raw material availability, etc. In case of a unforeseen geopolitical event causing raw material scarcity, can result in headwinds for the business. Something which impacted the flooring business last year.
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