The PVC Industry, in FY2021, Indian PVC demand to be set at around at 4.12 million tons.
And is about to reach 7.03 million tons by FY 2030, enlarging at a healthy CAGR of 6.11% until FY2030.
High needs of PVC in the producing of EV and surge in application in the healthcare industry are the main for the prediction period.
PVC is a type of synthetic polymers and is a part of the vinyl chain.
These polymers are highly preferred in various industries due to their non-flammability, ease of processing and molding, and higher strength.
Pipe grade PVC consider for over 40 percent of the overall requirement for PVC in India.
As the product is widely used in the manufacturing of water supply and underground irrigation pipes.
Another heavy demand of PVC is from the construction sector where it is broadly used in the producing of profiles, films, and insulation.
However, because of economic downturn, the pause in the construction activities has taken to a considerable decline in PVC requirement in the last few years.
As opposed to requirement for PVC in packaging applications has observe remarkable growth after the outbreak of Coronavirus in the final quarter of FY 2020.
The gross capacity of PVC in our country is approximately 1640 KTA.
With Reliance Industries holding the maximum share in its manufacturing in comparison to the other four leading players.
PVC INDUSTRY OVERVIEW
The domestic manufacturing of PVC is unable to sure the massive requirement for the product.
Hence, around 50 percent of the demand in our country is being met by imports.
To adequately meet the needs, the All India Plastic Manufacturers and Association (AIPMA) requested to the government in Dec 2019.
To cut a significant percentage of the high anti-dumping duty applied on the product in the past few years.
However, the corporation has put the stress to foist floor pricing on finalized plastic goods.
Being take from China and other main manufacturing countries to prevent under-billing from foreign producers .
Yet, the union has laid the trouble to manipulate floor pricing on finalize plastic goods.
That being buy from China and other major producing countries to prevent under-billing from abroad manufacturers.
To manufacture PVC, there are two major raw materials are Vinyl Monomer and Chlorine.
The yearly production of PVC is based on the production and availability of these two major raw material.
These material plays significant role in production of PVC in India.
The Indian PVC market has huge potential in the coming five years after the government scheme of self-reliant India.
Because of limited production of PVC in India, the demand of PVC is fulfilled by importing from abroad.
Some of the chief manufacturer in our country are:
Finolex Industries Limited, Reliance Industries, DCM Shriram Limited, DCW Limited, Occidental Petroleum Corporation, Formosa Plastics Group, Mitsui Chemicals, Hanwa Chemical Corporation, etc.
Rate of PVC are highly subtle to the prices of its raw-material Vinyl Chloride Monomer(VCM).
As VCM is a main imported material, international rate of the product.
That plays a very significant role in determining the rate of its imitative PVC in the domestic market.
ECONOMIC CRISIS OF PVC INDUSTRY
In FY 2020, prices of PVC face an economic crisis on the decrease in need from the automotive industry pretentious by the lengthen downtrend in the division due to economic downturn.
Which was further aggravated by the wave of Coronavirus in the last quarter.
Because of the stoppage in industrial activities in Q4 FY20, rates of PVC go through a fall of around 5 percent from the previous fiscal year.
To bring out data for the Indian PVC market, initial research surveys were defining in charge with PVC manufacturers, suppliers, distributors, wholesalers, and end-users.
The India PVC market has been subdivided into the following categories:
Market by End Use- Agriculture, Electrical and Electronics, Packaging, Automotive, Household and Construction, Healthcare and Others.
By Type- Suspension Polymerization, Micro-Suspension Polymerization and Bulk Mass Polymerization, Emulsion Polymerization.
By Grade- Pipes & Fittings, Wires & Cables, Flooring, Films & Sheets, Profiles and Others.
CONCLUSION
The PVC industries is important to the growth of the Indian economy with the products searching in a variety of division as well as being a origin of employment.
Today, close to 50% of the need for PVC in the country is fulfill by imports.
Though the amount of imports has been increasing over the years and thereby meeting the supply-demand shortage for PVC in the country.
It rests to be seen whether this can be go through over the medium to long term when domestic demand grows.
When the country’s aim today is to ‘Make in India’, enlarged imports and lower manufacturing levels contribute to loss of potential employment and widening.
The current account shortage as such, unless certain corrective fiscal measures are taken.
India runs the risk of missing out on the growth chance in both these sectors.
