Astral Poly Technik, leading plumbing pipes maker, is planning to foray into eastern market which is not yet fully exploited. For this, the company is setting up a pipe manufacturing unit in that region. Astral has already purchased 25 acres land near Cuttack to set up plastic pipes plant with an initial capacity of 20,000tpa. This plant is expected to be operational by September 2020.
East India has a market size of more than Rs 2,500 crore wherein Supreme and Ori-plast are major players. Astral presently has pipe manufacturing units in the Western region and sourcing pipes for Eastern market from those units doesn’t commercially make sense due to exorbitant logistics cost. The company has a plant at Gehlot which is catering to Rajasthan, Bihar, Jharkhand and East UP. Present capacity of Gehlot plant is 22,700 tpa and can expand upto 60,000 tpa at the same premises. Meanwhile, the company’s Dholka plant’s capacity is shifted to Saltej plant. Dholka plant will start manufacturing high margin valves.
Industry volume growth suffered over the last two years due to GST and demonetisation. In the just concluded financial year, PVC pipes segment grew by 4-5% while CPVC pipes growth was flat. Astral’s growth was better in CPVC pipes than in PVC pipes. However, in the coming years CPVC pipes industry is expected to grow at 10% while Astral is aiming to grow at 15%.