The domestic pipe industry is dominated by plastic pipes, which have a market size of ₹ 315 billion, with the organized players accounting for more than 70% of the market share in this segment. Plastic pipes are growing faster than other pipes because they are lightweight and come with ease of transportation, installation, and a longer life span.
Primary Applications of Plastic Pipes: Agriculture (irrigation). - Potable water supply. - Drainage. - Industrial applications - Carrying cables & electrical conducts.
Strong Demand Outlook for PVC Resin and PVC pipes
India’s PVC demand is projected to grow at a CAGR of 6.81% during CY 2019–30 to reach 6,779KTPA by 2030. The key growth drivers are a growing agriculture sector, rapid industrialization, infrastructure development, favorable government policies, rising urbanization, and incremental usage of PVC in flooring applications across private, commercial, and industrial premises.
Similarly, India’s demand for PVC pipes and fittings currently stands at 20 Lakh MT and is projected to grow at a CAGR of 14.7% between FY 2018–26. PVC pipes and fittings have end-user applications in building and construction, irrigation, water supply, and other purposes.
Various Government Initiatives Create Opportunities in Housing, Construction, and Infrastructure Sectors
The government has taken various initiatives to invest in irrigation, housing, and sanitation, through schemes such as ‘Housing for All,’ ‘Atal Mission for Rejuvenation and Urban Transformation’ (AMRUT), and ‘Pradhan Mantri Krishi Sinchayee Yojana’ (Prime Minister’s Agriculture Irrigation Scheme).
Housing Initiatives
In the 2021 budget, the Ministry of Housing and Urban Affairs’ outlay stood at Rs 50,040 crore, 18% higher than the revised estimates for 2019–20.
In 2020–21, the allocation for AMRUT Mission stood at Rs 7,300 crore, 14% more than the revised estimate of 2019–20. Similarly, the Smart Cities Mission, which aims to develop cities that provide core infrastructure and apply ‘smart’ solutions, has been allocated Rs 6,450 crore in 2020–21, which is 87% higher than the revised estimates for 2018–19.
The government has launched Pradhan Mantri Awas Yojana (PMAY) to provide affordable housing to the urban poor and build 20M affordable houses by 2022. The scheme’s budgetary allocation for 2020–21 is Rs 8,000 crore. This is a 17% increase over the revised estimates for 2019–20.
Many Cities to Follow Puri Style of Providing High-Quality Drinking Tap Water
Puri became the first city in India to provide high-quality drinking water directly from the tap on a 24-hour basis to its 2.5 lakh residents. Similar facilities are available in world class cities like New York, London, and Singapore only. The move would reduce plastic waste by an estimated 400 metric tonnes annually. Water fountains were developed at 400 locations spread across the city.
This is the first step toward providing clean drinking water to all households across the country. Many other state governments are evaluating the project implementation and are likely to implement the same, creating a massive demand for the piping companies.
Healthcare Initiatives
The finance minister announced a new centrally sponsored scheme called PM Atma Nirbhar Swasthya Bharat Yojana with an allocation of Rs 64,180 crore over six years. This scheme focuses on developing primary, secondary, and tertiary healthcare systems.
Environmental Initiatives
The government has allocated Rs 1,41,678 crore for Urban Swachh Bharat Mission 2.0 in the recent budget announcement. The government has shown a strong commitment to promoting ODF (Open Defecation Free) behavior through the ODF Plus program, which consists of four components ODF-S, Solid Waste Management, Liquid Waste Management, and Faecal Sludge Management. The emphasis is on liquid waste and greywater management and solid-waste collection, source segregation, and processing.
Replacement Market: PVC/CPVC Preferred Over GI Pipes
In existing real estate units, there might be certain cases where GI pipes are used, and the market is moving fast away from these pipes toward plastic pipes. PVC/CPVC pipes have the edge over these pipes because of their longer life span, which is two times more than GI pipes. PVC/CPVC pipes are highly durable as well and are preferred by various allied industries.
Irrigation to Increase Plastic Pipes Demand
As previously noted in this report, India is a highly water-scarce country, with an abundant requirement for a proper infrastructure for irrigation and water supplies, keeping in mind the country’s high dependence on agricultural activities. To address this problem, the central government has sharpened its focus on irrigation projects through its flagship schemes such as PMKSY. Other initiatives include supporting farm incomes as well local government initiatives to encourage farmers to use irrigation systems.
Water and Sanitation
According to the World Bank, India’s per capita availability is only 1,118 cubic meters, significantly lower than China’s 2,062 cubic meters, Brazil’s 27,271 cubic meters, and the U.S.’s 8,844 cubic meters. It is marginally higher than South Africa’s 821 cubic meters, which is a desert country. This shows India needs to do a lot of work on its transmission line, which would lead to an increase in demand for pipes. Following the launch of the ‘Swachh Bharat’ mission, the basic sanitation coverage in India went up to 99% in 2019 from 40% in 2014.
Growing Opportunities in the Water Transportation Segment
Water is one of the most critical resources that enable life on earth, and it is depleting very fast. As the global population is expected to reach 9.2B in 2040 from 7.4B in 2017, water demand would increase 20–30% every year during this period. At 1,544-meter cube per capita availability, India is already water-starved as it has only 4% of the global water resources but accounts for nearly 17% of the global population. By 2030, the demand for water will be twice that of supply. The government of India has taken various initiatives and has proposed to link major water-starved regions to rivers of India.
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