India's Plastic Pipe Industry Poised For Unprecedented Growth

India's plastic pipe industry shows significant growth potential due to low per-capita consumption compared to global averages. A report by Jefferies highlights the untapped market and strong growth driven by housing and infrastructure investments, despite challenges from volatile PVC prices affecting margins and volumes.

In a recent report, Jefferies highlights the immense growth potential of India's plastic pipe industry, citing the nation's low per-capita pipe consumption relative to global averages. With numbers significantly trailing behind developed regions such as the U.S., Europe, and China, a large untapped market emerges as a notable opportunity.

The report emphasizes that India's per-capita consumption figures underscore a considerable scope for growth. Additionally, with the plastic pipes sector recording an impressive 8 percent compound annual growth rate over the past decade, projections indicate a market size reaching Rs 500 billion by FY25, driven by capital expenditure revival and a robust housing cycle.

Despite optimistic projections, challenges related to polyvinyl chloride (PVC)—a key raw material—pose risks. PVC's price volatility affects manufacturers' margins, leading to inventory losses and potential destocking by distributors. Nevertheless, a recovery in volumes is anticipated in late 2025, buoyed by increased capex and healthy housing demand, sustaining long-term growth potential amidst volatile PVC prices.

(With inputs from agencies.)