Page 48 - Plastics News January 2023

FEATURE

Trends and future of the Indian Plastic Pipe

ith prospects in the areas of po- FY 2021, the organised companies in sign of various institutional structures
Wtable water supply, wastewater the industry will control about 67% of has received great attention from the
supply, electrical and telecommuni- the market. government. It has accelerated ini-
cation cable protection, agriculture, Boost from government schemes tiatives to monetize assets in order to
chemicals, and oil and gas, the future meet the objectives of the National
of the Indian plastic pipe market is Our nation ranks among the top users Infrastructure Pipeline (NIP). As a
bright. The Indian plastic pipe market of CPVC fittings and pipes. Addition- result, it has set aside 5.5 trillion for
is anticipated to grow at a CAGR of ally, the government has launched the capital expenses in FY2022.
10.3% from 2022 to 2027, reaching “Har Ghar Jal Yojna” and “Jal Jeevan Opportunities, difficulties, and trends
an estimated $10.9 billion. The ex- Mission” under the leadership of Prime
pansion of government infrastructure Minister Narendra Modi, with the There are difficulties in the market for
investment, rising home and business goal of providing tap water to all rural polymer pipes. But difficulties offer
building, industrial production, the ir- homes in India. The Jal Jeevan Mission chances for invention, which then fu-
rigation sector, and the replacement (JJM) effort, which aims to provide tap els trends. The following are a few of
of deteriorating pipes are the main water connections to all rural families the macro¬scop¬i¬cal difficulties,
growth drivers for this market. by 2024, is one of the most important chances, and expected developments
actions the government has done. that could affect the industry. world-
Markets for polymer pipes locally and The need for plumbing pipes and fit- wide uncertainties Numerous global
globally tings will increase as a result of the uncertainties now exist, including the
Despite the effects of the pandemic, expanding demand for clean water in possibility of climate change. The pan-
the polymer pipes sector has been all residential and commercial devel- demic that has decimated economies
performing well in the new normal opments. As a result, PVC pipes and in waves over the past two years has
India. The demand for metal to poly- fittings are in high demand to facilitate been the more urgent concern. In In-
mer pipes has significantly changed water flow in every home. In FY2020, dia, the economy has fully recovered
in a number of industries, including it was predicted that the PVC and Fit- since the third wave. It is still too soon
plumbing and piping applications in tings market would be worth roughly to rule out a future wave that might
the construction industry. The use of Rs 300 billion. By FY2025, the sec- impact the value and supply chain,
CPVC pipes in the hot- and cold-wa- tor might reach Rs 500 billion with a cause a container scarcity, increase
ter plumbing industry has increased CAGR of 10.8%. the price of crude oil, or have an im-
significantly during the past several Indirect growth stimulants pact on global trade.
years. Due to these limitations, high de-
The government’s policies are fo-
The industry’s largest firms, who have cused on national development, mand, and supply shortages, the PVC
the highest market capitalization, have which has self-reliance at its core, in price in the polymer pipes market
shown CAGR growth of between 3 order to further the aim of Atmanirb- surged significantly in FY2021. Inter-
and 11% over the last two years. Ac- har Bharat. The sector will flourish national geopolitics and conflicts have
cording to CRISIL, the production of thanks in large part to the govern- further impacted business, trade, and
PVC pipes is anticipated to increase ment’s backing. A number of indirect economy around the world, albeit it
by a record-breaking 35% in FY2022. policies open up growth opportuni- is doubtful that this will happen again.
The plastic pipe market in India is es- ties while direct policies accelerate The Indian polymer industry is mostly
timated to be worth $400 billion. The the sector’s development. From 2020 protected, although it might still have
pandemic throughout the previous to 2025, the government will impose some effects in the future. Cost in-
five years has scripted a 10% CAGR anti-dumping duties on imports of creases associated with manufactur-
from FY2016 to FY2021. By FY 2025, CPVC resin and its compounds from ing will eventually be passed on to the
the sector is anticipated to develop at China and Korea. This action directly consumer.
a slightly faster rate of 11% and reach benefits the regional players. The de-
between Rs 550 and Rs 600 billion. In

48 PLASTICS NEWS January 2023