New Delhi [India], September 28 (ANI): The Indian plastics pipes business weathered a number of headwinds in FY25, grappling with subdued infrastructure spending, liquidity challenges, and unstable PVC costs, in keeping with a latest JM Financial report.
The report highlights that the sector, historically fragmented and agriculture-focused, has steadily shifted in the direction of a extra organised ecosystem catering to water provide, sanitation, plumbing, and industrial functions. Despite the challenges in FY25, the business expects near-term assist from channel restocking and stabilising PVC costs, which reached round INR 79 per kg in September 2025.
PVC costs, a vital pass-through value for pipe producers, have seen important fluctuations over the previous few years. ‘ On the worldwide entrance, sluggish development exercise in China and developed markets suppressed demand, whereas a provide glut from main exporters (China, South Korea, Taiwan) led to aggressive dumping at decrease costs. Historically, PVC costs have grown at a ~2 per cent CAGR over 25 years, however the phase noticed a ~4 per cent CAGR decline over FY20-25. Over the previous 4-5 months, costs have proven indicators of restoration, growing by ~INR 7/kg to achieve ~INR 79/kg in Sep’25, though ranges stay effectively beneath FY22 peaks,’ the report stated.
Looking forward, structural demand drivers stay robust. Government initiatives such because the Jal Jeevan Mission, Swachh Bharat Abhiyan, and Housing for All, alongside rising agricultural and alternative demand, are prone to speed up the adoption of plastic piping programs. The report estimates India’s plastic piping market at round INR 600-650 billion, projecting a progress charge of 10-12 per cent CAGR over FY25-30.
‘Stabilising PVC costs ought to restore distributor confidence, cut back inventory-related challenges, and assist margin restoration for organised gamers,’ the JM Financial report famous. Potential implementation of Bureau of Indian Standards (BIS) high quality norms for PVC imports, seemingly by December 2025, is anticipated to additional shield home gamers from low-quality imports and improve pricing energy. (ANI)