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.
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Source: https://www.kenresearch.com/manufacturing-and-construction/machinery-andparts/updated-india-pvc-pipes-market-report/7094-97.html
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Contact: Ken Research Ankur Gupta, Head Marketing & Communications Ankur@kenresearch.com +91-9015378249 Website : www.kenresearch.com
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