India pvc pipes and fittings market report | CPVC Pipes Market Statistics
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Transcript of India pvc pipes and fittings market report | CPVC Pipes Market Statistics
India PVC Pipes and Fittings Market Report -2020:
Ken Research
PVC pipes and fittings market in India is vibrant market. The market was
alued at INR ~ illio i FY’ hi h had gro fro INR ~ illio i FY’ . The i dustr has gro at a CAGR of ~% duri g the period FY’ -FY’ . This a e attri uted to the i reasi g de a d for agricultural production due to rising population, tremendous investment
by the government on infrastructure, augmentation of real estate sector
and increasing recognition among people regarding the benefits of PVC
pipes over other conventional piping systems.
The advent of construction of smart cities which require different types of
pipes and fittings has also been a major factor which imparted growth to
the PVC pipes and fittings industry in India. The major end users for PVC
pipes and fittings in India are housing, irrigation and water infrastructure.
Agricultural sector accounts for major demand of PVC pipes in India.
Subsidies and investments (such as Pradhan Mantri Krishi Sinchayee
Yojana (PMKSY), increased budget allocation in five year plans, and several
others) made by the government in the agricultural sector have bolstered
the demand for PVC pipes in the country in the last few years.
The produ tio apa it i FY’ has ee re orded at ~ illio MT as o pared to ~ illio MT i FY’ . The positi e gro th i the PVC pipes
production capacity can mainly be attributed to the factors such as
increased government focus on water and sanitation management, rise in
irrigational land for food production which in turn influenced the demand
for PVC pipes from the agriculture sector and growth in real estate market
of India.The PVC pipes and fittings industry in India is highly fragmented in
nature with a huge number of companies.
Presently, there are nearly 1,100 companies engaged in manufacturing and
distribution of PVC pipes and other equipments in the country and nearly
500 players are there in the unorganized segment. However, the
competition in the industry is primarily confined between top 5 players
(include Finolex Industries Limited, Jain Irrigation Systems Limited,
Supreme Industries, Prince Pipes and Fittings Private Limited, Astral Poly
Technik Limited and Ashirvad Pipes Private Limited) in the organized space
and several small scale players operating in the unorganized space.
The PVC pipes and fittings industry in India is largely contributed by the
irrigation sector which contributed ~% in the PVC pipes market revenue in
FY’ as o pared to ~% i FY’ . The o tri utio of irrigatio i the overall market revenue of PVC pipes and fittings has grown at an
a erage a ual rate of ~% duri g FY’ -FY’ . The lo pri ed PVC pipes are extensively used by the farmers in India, especially in the states
of Punjab and Haryana, to irrigate the fields with water from tube wells.
Another major application of PVC pipes and fittings in India is
transportation of water. Water supply contributed ~% to the demand for
PVC pipes and fittings in India and recorded market value of INR ~ million
i FY’ . Lead free PVC pipi g s ste s are idel used i I dia for conveying potable water to the households.
The demand for PVC pipes in a particular region is influenced by a range of
factors such as the population, the per capita income, literacy rate, status
of supplies of the products, status of the commercial and industrial sector,
a d a aila ilit of su stitute produ ts a o g other fa tors. I FY’ , southern region of India contributed the largest share of ~% in the overall
revenue of PVC pipes and fittings market in India. The major demand in
South India comes from the states of Tamil Nadu and Andhra Pradesh.
West India accounted for the next largest share of ~% in the market
revenue. The major demand of the PVC pipes and fittings in the western
region came from Maharashtra because of high proportion of middle class
population and high pace of growth of construction activities in regions of
Mumbai and Pune.
In the past few years, a shifting trend towards CPVC pipes has been witnessed
in India. CPVC is obtained by chlorination of Polyvinyl Chloride. It has
better physical and mechanical properties than PVC, which makes it ideal
for making pipes and pipe fittings. CPVC gives pipes an unbeatable
strength and high corrosive water and heat resistance. They are widely
used in the industries for the transportation of hazardous and highly
corrosive chemicals. Growing prices of copper and increasing recognition
of benefits of plastic piping systems has led to a steady growth of plastic
pipes penetration in the Indian market in the last few years. In India,
plastic pipes and fittings are particularly used in the sanitary, construction
and agricultural sectors.
In comparison to concrete, copper and steel pipes, plastic pipes have a lower
leakage and corrosion rate and require lower installation costs. People
have started showing more confidence in plastic pipes than years ago and
are more willing to install plastic pipes rather than other iron pipes at their
households. Among different plastic pipes, presently PVC has a dominant
share of ~%.Currently, the margins of the organized players of PVC pipes
are being hampered by the unorganized players charging lower prices. The
advent of GST would bring in new opportunities for the organized segment
of the market GST since the outflow of tax revenue from the unorganized
sector would be corked with the help of GST implementation.
Moreover, the implementation of GST will change the margins of different
players in the value chain since the tax paid in the GST is expected to be
greater than the overall tax paid in the current system which will make the
unorganized players worse off.It has been estimated that, currently India
has a shortage of around ~ million houses and around ~ million houses are
needed till 2022. This presents a huge opportunity not only for the
housing and construction sector but also for the players in PVC pipes and
fitting segment since construction of houses will always require PVC pipes
and fittings.
Furthermore, the government of India has also been focusing on
infrastructural projects such as Swachh Bharat Abhiyan and The Smart
Cities Project. This will augment huge demand of in the piping industry,
thereby entailing the growth of capacity and its utilization. It has been
estimated that more than half of the Indian population defecate in open
and the government is planning the indoor toilets for every home in the
coming years. Moreover, the project of smart water and waste
management will also provide a huge impetus to the PVC piping industry
in India.
The revenue from the Indian PVC pipes and fittings industry is projected to
register stro g gro th o er the period FY’ -FY’ . It is a ti ipated to gro ~% o er the period FY’ -FY’ a d is e pe ted to rea h INR ~ illio i FY’ as o pared to INR ~ illio i FY’ . The orga ized segment of the market is predicted to grow at a faster rate in the coming
years with shifting preferences towards branded and quality products
being witnessed in the domestic market. This would be backed by the
increasing young working population in the country with high population
who prefer branded pipes and fittings for their homes.The residential real
estate market has witnessed balanced growth in the last couple of years
owing to the increasing population and growing demand for affordable
housing accommodation.
• Source: https://www.kenresearch.com/manufacturing-and-construction/machinery-and-
parts/updated-india-pvc-pipes-market-report/7094-97.html
• Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
• Website : www.kenresearch.com