HomeIndustry TrendsPVC adhesives market may see rapid growth

PVC adhesives market may see rapid growth

With increasing use of PVC pipes in drainage and irrigation, use of PVC adhesives too in India is growing in recent years. PVC adhesives are used for joining u-PVC and CPVC pipes. The size of PVC adhesives market at Rs 700 crore is small but growing. The market has grown at around 10% CAGR, in line with the rapid growth in the plastic pipes segment, which grew at a healthy CAGR of 10-11% over FY15-20. Industry growth was driven by rising demand from the construction and irrigation sectors.

PVC adhesives, also known as PVC cement, are adhesives which are used for joining PVC pipes. When it is applied, the pipe will visibly soften and then solidify as the cement sets to form a joint that is stronger than the surrounding pipe and fittings. The process of joining is similar to welding, since it melts two pieces of PVC into a single piece. The single largest application of PVC adhesives is in the PVC pipes industry, where it is widely used to join pipes. A PVC adhesive consists of PVC resin, a solvent, and methyl ethyl ketone – which breaks the top layer of the pipes and fittings to be joined together.

Government’s programmes aiding industry’s growth

Government’s increasing emphasis on supply and sanitation (WSS) and consequent increasing investments in WSS projects, substitution of metal pipes with polymer pipes, and replacement demand have all helped the PVC adhesive industry’s growth rate in double digits in recent years. Government’s popular initiatives such as Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), Accelerated Irrigation Benefits Programme (AIBP), and Command Area Development and Water Management (CADWM) Programme have fuelled the use of PVC pipes, and hence PVC adhesives in the irrigation sector.

Another programme which is having favourable impact on demand for polymer-based pipes, especially PVC pipes, is Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme, which is aimed at providing basic services such as WSS and ensuring every household has access to a tap with assured water supply and a sewerage connection.

u-PVC and PVC adhesives are leading segments

There are several variants of plastic pipes available in the market, but demand for u-PVC and CPVC pipes is witnessing dramatic upsurge due to affordability, high quality and durability which in turn is helping the PVC adhesives’ demand to grow further. Among product types, u-PVC and PVC adhesives have the largest share, accounting for more than 80% of the market, while the balance demand comes from the CPVC adhesives segment

Last year industry has degrown

Though the PVC adhesives demand has been growing at the rate of 10%CAGR, last year, that is, FY2021 was an exception as the industry clocked a negative growth of 10% due to Covid-19 outbreak. Construction spending across infrastructure sub-sectors like roads and ports shrank sharply in FY21, due to the pandemic, as supply chains got disrupted and labourers employed at construction sites migrated back to their home towns. This has indeed affected demand for PVC pipes from the urban infrastructure space in turn affecting the demand for PVC adhesives in tandem. However, recovery too was equally quick and rapid, aided by increased government spending on housing and infrastructure.

New players are entering the market

Though the PVC adhesives market is at a nascent stage in India, competition has been growing with new players entering the market. However, the organised sector dominates on the back of the increased brand awareness of end users. HP Adhesives, Astral Adhesives and Ashirvad Pipes are the leading manufacturers. Pipe manufacturers like Prince Pipes, Apollo Pipes, Jain Irrigation, and Supreme Industries manufacture adhesives in small volumes. Pipe manufacturers are trying to gain market share by leveraging their established network of distributors and dealers.

Among all the segments, the CPVC adhesives segment is expected to witness the maximum growth during next five years as CPVC pipes in India are still at a nascent stage and have huge potential due to factors such as longevity, fire resistance, corrosion- and lead-free nature, and the ability to withstand high temperatures.  Similarly, u-PVC adhesive demand which will be driven by growth in the u-PVC pipes business, too is also likely to grow in double digits in the next five years.

Subscribe to our newsletter

To be updated with all the latest news from Sawdust


Please enter your comment!
Please enter your name here




latest news