India Is Moving Towards Self-Sufficiency In PVC Resin Manufacturing By 2026India Is Moving Towards Self-Sufficiency In PVC Resin Manufacturing By 2026
The Establishment of a Polyvinyl Chloride Plant in Gujarat Was Approved By IOCL
The investment proposal for a PVC (polyvinyl chloride) manufacturing facility accounting for over INR 4,000 crore in Gujarat was approved by the Indian Oil Corporation Limited (IOCL). The approval by IOCL will assist India in reducing its dependence on resin import, which has significant demand across sectors like pipe making, automobiles, infrastructure, and cell phones.
With imports exceeding two million tons, India is the most significant PVC resins importer, followed by China and the US, and the import reliance will likely increase as the demand is expected to reach seven million tons by 2030. This agreement is also an aspect of a strategy in order to concentrate on the downstream polymer and petrochemical business with a view to capitalise off of the supply gap amidst a prompt boost in demand.
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The project intends to raise the capacity of Gujrat's Vadodara refinery from 13.7 million tons each year to 18 million tons and construct a 2,35,000 ton a year Lube Oil Base Stock (LOBS) unit as well as a 0.5 million tons a year polypropylene (PP) plant. The following refinery project is part of the plan to expand the petrochemical capacity by 70 percent in the next decade from the present 3.2 million tons a year.
Plastic Pipe Market Trends And Future In India
With prospects of potable water and wastewater supply, agriculture, oil and gas, electrical and telecommunication cable protection, and chemicals in the areas, the Indian plastic pipe market's future is bright. The plastic pipe market in India will likely advance at a CAGR of 10.3% during 2022-2027, accounting for an expected USD 10.9 billion. The market's main driving factors include the expansion of infrastructural investment by the government, industrial production, rising home and business building, the irrigation sector, and the replacement of deteriorating pipes.
Markets for polymer pipes locally
In spite of the pandemic, the polymer pipes sector has witnessed steady growth in India. The metal for polymer pipes demand has hugely varied in several industries, including the construction, plumbing and piping industries. The employment of CPVC pipes in the cold and hot water plumbing industry has risen in the previous few years.
The largest firms in the industry with the highest market capitalisation showcased a CAGR growth between 3 and 11% during the previous two years. As per CRISIL, PVC pipe production is expected to grow by an all-time high of 35% in FY2022. The market's estimate in India is around USD 400 billion. Till FY 2025, the sector is expected to expand at a slightly rapid rate of 11% and acquire between INR 550 and INR 600 billion. In FY 2021, the industry's organised companies will control approximately 67% of the market.
Boost from government schemes
India is among the top users of CPVC fittings and pipes. In addition, the various initiatives launched by the government, including the “Har Ghar Jal Yojna” and “Jal Jeevan Mission” for supplying tap water to all rural homes in India, have increased the demand for plumbing pipes and fittings thus increasing the product's demand further. By FY2025, the sector will account for around INR 500 billion with a CAGR of 10.8%.
According to the article by Procurement Resource, it can be summed up that India is moving towards becoming self-reliant in the PVC resin industry by 2026. The factors contributing towards this goal are an investment proposal for building a manufacturing facility with INR 4000 crore in investment, expansion of infrastructural investment by the government, industrial production, rising home and business building, the irrigation sector, and the replacement of deteriorating pipes.
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As per our Procurement Resource experts, in the future, PVC Resin production in India will likely advance at a CAGR of 7.0% during the forecast period of 2022-2027 and will reach a volume of 5300.79 KMT by 2027. The following growth can be attributed to factors like the increasing demand for toys, the construction and building industry, etc., with resumed activities in the market and rising demand in the pharmaceutical industry. Also, the government initiatives focused on providing water to houses in rural areas will further the market's expansion.