Formulation of a Circular Business Model for the Construction Industry in India

Abstract

The construction sector in India is expected to reach a $1.4 trillion by 2025 according to the report by Mordor Intelligence. This growth is supported by a major boost from new investments, growing population as well as the policies and schemes of the Indian Government such as Make in India, Smart Cities mission, and Pradhan Mantri Awas Yojna. But, with the growth in the sector there comes a huge underlying disadvantage i.e. the pollution the sector generates. The linear model of the industry i.e. “take, make, and waste” utilizes a ton of non-renewable resources to manufacture Portland cement concrete (PCC), the raw material used in the construction, leading to adverse effects on the environment with the waste and carbon emissions produced. Therefore, the literature was investigated by the researchers to identify the impediments to the long-term sustainability in the Indian construction industry. Considering the concept of a circular economy which rests on the premise that Earth operates as a circular or closed system with limited resources. The research paper aims to formulate a circular business model which overcomes the shortcomings of the linear model. This is done by adopting geopolymer concrete as the main material for construction rather than PCC which is made using waste materials from construction & demolition wastes (CDWs) as well as waste materials of other industries and can also be recycled. Thus, reducing the amount of waste generated by the businesses as well as promoting circularity in the overall economy by utilizing waste generated by other sectors. This also has an additional benefit of releasing significantly less carbon compared to the production of PCC. Lastly, the paper adapts a framework of a circular business model canvas to highlight the key features of the findings.