According to ChemAnalyst report, “India Poly Vinyl Chloride (PVC) Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Type, Grade, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”. The demand for Poly Vinyl Chloride is anticipated to outshine at an impressive CAGR of around 6.81% in the forecast period on increasing government schemes for the betterment of facilities for pipe water supply in rural as well as agriculture areas. Furthermore, the sudden surge in demand for PVC in flexible packaging over hygiene awareness in wake of Coronavirus spread in the country is further anticipated to contribute towards considerable growth of PVC market during the forecast period. Polyvinyl Chloride is a part of vinyl chain group and comes under the category of synthetic polymer. The demand for PVC varies with its different grades and types. Among the different grades of PVC, pipe grade PVC is the majorly demanded due to its high requirement in agricultural and construction industries for production of underground irrigation and water distribution system.
Browse Complete Report : India Poly Vinyl Chloride (PVC) Pricing
Pipe grade PVC constitutes over 40% share of the total demand for PVC in the country. The budget of FY 20 containing initiatives to produce efficient piped water facilities for rural and agricultural areas by 2024 has given the much-needed push in accelerating the demand for PVC in the country.
Outbreak of Coronavirus in the final quarter of FY 20 has led to a devastating economic slowdown followed by the fallout in business of various industries. This economic downturn is incurred under the domino effect of lockdown imposed in the country to contain the spread of virus. However, rising awareness over cleanliness and hygiene and increasing requirement for drugs and medical equipment have kept the stocks of Packaging, Healthcare and Pharmaceutical industry high in hard times of economic crises. As PVC is utilized in an appreciable amount in the production of flexible packaging plastic, majorly for food and pharma industry, the demand for PVC in packaging industry has increased over panic procurement of packaged goods to avoid chances of contagion by any means. This spike in demand for flexible packaging is likely to grow at the consistent pace in the coming years as the complete abatement of the virus is uncertain till a proper vaccine in attained. In contract, the demand for PVC from automotive and construction sector has declined considerably, affected by the crash in finances of industries and reduced public spending. Moreover, many of the construction projects where PVC is utilized in manufacturing of films, molding and profiles has been sidelined due to low cash flow. Similarly, the demand for automotive utilizing PVC plastics in various parts have been reduced as an outcome of low offtakes from consumer primarily due to reduction in their gross annual income after Coronavirus. To grapple this hard time for industries, Government of India has proposed a scheme of self-reliant India stressing on the increase in Indian manufacturing activities in order to cut the reliance on imports from other countries. This initiative if implied properly is anticipated to bolster the growth of various industries as it will help the manufacturers to consolidate to complete domestic demand .Moreover, a number of initiatives for improvisation of facilities for pipe water supply to rural and agricultural areas under the scheme of ‘ Make in India’ has surged the demand for pipe grade PVC . This demand is anticipated to further propel in the coming years on increasing stress on better infrastructure and lifestyle of the country.
According to ChemAnalyst report, “India Poly Vinyl Chloride (PVC) Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Type, Grade, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”. Major players operating in India PVC market include reliance Industries, Finolex Industries Limited, Chemplast Sanmar Limited, DCW Limited, DCM Shriram Limited. Other international companies catering the demand for PVC in India are Occidental Petroleum Corporation, Formosa Plastics Group, Mitsui Chemicals, Hanwa Chemical Corporation, LG Chem, Xinjiang Zhongtai Chemical Co. Ltd etc. Among the domestic manufacturers, Reliance industry is largest player with an installed capacity of around 850 KTPA of PVC. As Indian production is unable to satisfy the complete demand for PVC in the country, over 40 per cent of the domestic demand is catered through imports. Thus, there is an excellent potential for new players eyeing to enter the India PVC Market.
“India PVC market has witnessed tremendous growth in the last few years influenced by sudden surge in demand for pipe grade PVC in agricultural and construction industries. The release of Budget for financial year of FY 20 has increased the number of initiatives for development of efficient facilities for piped water supply and has thus propelled the demand for pipe grade PVC in the domestic market. However, the recent government scheme of self-reliant India which is focused on making India the worldwide manufacturing hub is anticipated to hinder the production of PVC in the initial phase, as the country is largely dependent on imports for the availability of its raw material Vinyl Acetate . At the same time, if executed properly, this reform will highly contribute towards the growth of the chemical industry as it will reduce its dependence on imports, thereby widening the profit margins of the domestic manufacturers. An incredible increase in the demand for PVC to produce flexible packaging for Food and Pharmaceutical has turned out to be a boon for India PVC market in times of plunging demand from several sectors after Coronavirus outbreak. Moreover, manufacturers are optimistic to recover demand from automotive and construction sector on the awaited retrieval of the Indian economy.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.