Trends and future of the Indian Plastic Pipe Market

2023-01-04 16:30:24 By : Ms. Jack zhang

With prospects in the areas of potable water supply, wastewater supply, electrical and telecommunication cable protection, agriculture, chemicals, and oil and gas, the future of the Indian plastic pipe market is bright. The Indian plastic pipe market is anticipated to grow at a CAGR of 10.3% from 2022 to 2027, reaching an estimated $10.9 billion. The expansion of government infrastructure investment, rising home and business building, industrial production, the irrigation sector, and the replacement of deteriorating pipes are the main growth drivers for this market.

Markets for polymer pipes locally and globally Pvc Ball Check Valve

Trends and future of the Indian Plastic Pipe Market

Despite the effects of the pandemic, the polymer pipes sector has been performing well in the new normal India. The demand for metal to polymer pipes has significantly changed in a number of industries, including plumbing and piping applications in the construction industry. The use of CPVC pipes in the hot- and cold-water plumbing industry has increased significantly during the past several years.

The industry’s largest firms, who have the highest market capitalization, have shown CAGR growth of between 3 and 11% over the last two years. According to CRISIL, the production of PVC pipes is anticipated to increase by a record-breaking 35% in FY2022. The plastic pipe market in India is estimated to be worth $400 billion. The pandemic throughout the previous five years has scripted a 10% CAGR from FY2016 to FY2021. By FY 2025, the sector is anticipated to develop at a slightly faster rate of 11% and reach between Rs 550 and Rs 600 billion. In FY 2021, the organised companies in the industry will control about 67% of the market.

Our nation ranks among the top users of CPVC fittings and pipes. Additionally, the government has launched the “Har Ghar Jal Yojna” and “Jal Jeevan Mission” under the leadership of Prime Minister Narendra Modi, with the goal of providing tap water to all rural homes in India. The Jal Jeevan Mission (JJM) effort, which aims to provide tap water connections to all rural families by 2024, is one of the most important actions the government has done. The need for plumbing pipes and fittings will increase as a result of the expanding demand for clean water in all residential and commercial developments. As a result, PVC pipes and fittings are in high demand to facilitate water flow in every home. In FY2020, it was predicted that the PVC and Fittings market would be worth roughly Rs 300 billion. By FY2025, the sector might reach Rs 500 billion with a CAGR of 10.8%.

The government’s policies are focused on national development, which has self-reliance at its core, in order to further the aim of Atmanirbhar Bharat. The sector will flourish thanks in large part to the government’s backing. A number of indirect policies open up growth opportunities while direct policies accelerate the sector’s development. From 2020 to 2025, the government will impose anti-dumping duties on imports of CPVC resin and its compounds from China and Korea. This action directly benefits the regional players. The design of various institutional structures has received great attention from the government. It has accelerated initiatives to monetize assets in order to meet the objectives of the National Infrastructure Pipeline (NIP). As a result, it has set aside 5.5 trillion for capital expenses in FY2022.

There are difficulties in the market for polymer pipes. But difficulties offer chances for invention, which then fuels trends. The following are a few of the macro­scop­i­cal difficulties, chances, and expected developments that could affect the industry. worldwide uncertainties Numerous global uncertainties now exist, including the possibility of climate change. The pandemic that has decimated economies in waves over the past two years has been the more urgent concern. In India, the economy has fully recovered since the third wave. It is still too soon to rule out a future wave that might impact the value and supply chain, cause a container scarcity, increase the price of crude oil, or have an impact on global trade.

Due to these limitations, high demand, and supply shortages, the PVC price in the polymer pipes market surged significantly in FY2021. International geopolitics and conflicts have further impacted business, trade, and economy around the world, albeit it is doubtful that this will happen again. The Indian polymer industry is mostly protected, although it might still have some effects in the future. Cost increases associated with manufacturing will eventually be passed on to the consumer.

The polymer pipes industry is fragmented, with smaller, lesser known manufacturers sharing a sizable portion of the market. The players, on the other hand, have a low inclination to withstand, adapt, and improve in the face of diverse uncertainty. Some industry consolidation has resulted from this and the industry is expected to boom in the coming years in spit of it all.

(The author is Mr. Anuj Jain, Director at Ajay Pipes, and the views expressed in this article are his own)

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Trends and future of the Indian Plastic Pipe Market

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