India’s Poly Vinyl Chloride (PVC) Demand to Register Robust Growth with CAGR of 6.81% by 2030
by Chem Analyst Chemical Database PriceAccording 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.
Chemical-Pricing: https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False
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.
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Created on Jun 1st 2020 05:39. Viewed 284 times.