[Online Quarterly Update] India Polyvinyl Chloride market demand stood at 4.12 Million Tonnes in FY2021 and is forecast to reach 7.03 Million Tonnes by FY2030, growing at a healthy CAGR of 6.11% until FY2030. Hih demand for Polyvinyl Chloride in the manufacturing of electric vehicles and surge in application in the healthcare industry is the major driver for the forecast period. Polyvinyl Chloride comes under the category of synthetic polymers and is a part of the vinyl chain. These polymers are highly desired in various industries owing to their non-flammability, ease of processing and molding, and superior strength. Pipe grade PVC accounts for over 40 percent of the overall demand for PVC in the country as the product is extensively used in the production of water distribution and underground irrigation pipes. Government policies in the budget of FY 2020 for improvisation in facilities for piped water supply in rural areas have given a much-needed push in the demand for PVC in the domestic market. Another large percentage of PVC demand comes from the construction industry where it is utilized in the manufacturing of profiles, films, and insulation. However, due to economic slowdown, the halt in the construction activities has led to a considerable decline in PVC demand in the last few years. In contrast, demand for PVC in packaging applications has witnessed significant growth after the outbreak of Coronavirus in the final quarter of FY 20. The rising awareness for maintaining good hygiene as a preventive measure of the virus has made the food and beverage industry increase the utilization of flexible packaging to assure the complete safety of the packaged products. The demand for PVC in the packaging sector is likely to further propel in the coming years as there are low chances for the complete abatement of the virus till a proper vaccine is attained.
The total capacity of PVC in India is around 1640 KTA with Reliance Industries holding the maximum share in its production in comparison to the other four leading players. The domestic production of PVC is unable to consolidate the massive demand for the product hence, around 50 percent of the demand in India is being met through imports. To sufficiently meet the requirements, the All India Plastic Manufacturers and Association (AIPMA) urged the government in Dec 2019 to cut a significant percentage of the high anti-dumping duty imposed on the product in the past few years. However, the association has laid the stress to impose floor pricing on finished plastic goods being imported from China and other major producing countries to restrain under-invoicing from foreign manufacturers.
As Vinyl Monomer and Chlorine are the major raw materials required to produce PVC, the production and availability of these two in India also play a crucial role in determining the yearly production of PVC in the country. In the coming five years, the Indian market of PVC is anticipated to witnesses healthy growth after the government scheme of self-reliant India, emphasizing the domestic production and consumption of products.
Years Considered for this Report:
Historical Years: FY2015 – FY2020
Base Year: FY2021
Estimated Year: FY2022
Forecast Period: FY2023– FY2030
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Objective of the Study:
• The primary objective of the study was to evaluate and forecast PVC capacity, production, demand, and demand–supply gap in India.
• To categorize PVC demand based on end-user, type, grade, region, and sales channel.
• To study trade dynamics and company share in the India PVC market.
• To identify major customers of PVC in India.
• To evaluate and forecast PVC pricing by grade in India.
• To identify and profile major companies operating in the India PVC market.
• To identify major developments, deals, and expansion plans in the India PVC market.