MAKING PIPE DREAMS A REALITY

The Indian plastic pipes industry is set for growth on shift in consumer preferences and social programmes, which will boost sales of plumbing pipes and fittings

Plastic pipes have become an integral part of the construction industry, serving a variety of purposes in residential, commercial, private sector, public sector, infrastructure, and irrigation projects. Their versatility and wide range of applications have contributed to their consistent growth and success, outpacing even the growth of the economy.

India is currently experiencing a surge in capital expenditure, with both private and public investments reaching multi-year highs. As a result, the industry is expected to deliver robust growth in the coming years.

Despite the challenges posed by the Covid-19 pandemic, the Indian plastic pipes industry has remained resilient, expanding at an impressive annual rate of 10% between FY16 and FY21. The industry was valued at approximately 400 billion to ₹ 420 billion in FY21, demonstrating its significant contribution to the Indian economy.

Today, the Indian pipes industry is in a much better situation as the capex cycle is moving up and the industry is recouping from the aftershocks of Covid-19. It is expected to deliver higher growth, particularly due to the replacement demand for metal-based pipes.

Polyvinyl chloride (PVC) is the third-largest selling plastic commodity in the world after polyethylene and polypropylene. It has several advantages over other materials, such as metal-based pipes, due to its chemical resistance, durability, low cost, and recyclability.

Industry estimates indicate that between 2022 and 2027, the Indian pipes industry is expected to grow at about 12% to 13% annually. Growth in the case of organized players is likely to be even higher, with the shift in consumer preferences and other factors allowing the organized market to grab a higher market share.

ORGANIZED PLAYERS CAPTURE LARGER MARKET SHARE