After abnormal rise in prices PVC resin prices are showing signs of softening which is a good news for realtors as PVC pipes are widely used for plumbing and drainage system. PVC resin price has recently dropped by Rs25/kg to Rs136/kg due to sharp drop in global prices and weak demand from agri segment. According to industry experts, PVC resin price is likely to normalise going forward as the PVC prices have been correcting.
In addition, the piping industry is witnessing a consolidation with organized market share on a rising trend due to higher raw-material prices. Further, the increasing brand preference and customer awareness will further strengthen the organized players widen their distribution channel and geographical expansion going forward.
According to analysts, accelerated consolidation in the PVC (polyvinyl chloride)/CPVC (chlorinated polyvinyl chloride) pipe segment post Covid, sustained replacement demand and opening up of opportunities in the underground drainage system and water storage tanks space in India, are the likely major catalysts going forward for branded plumbing pipe players in CY22. Demand scenario in Plumbing and SWR segment continues to be healthy as construction activity has picked up in all regions post the second wave of Covid-19. Further, the Government initiatives like Jal Jeevan Mission (JJM) and AMRUT may help to sustain growth for pipe industry. The irrigation sector is the key end-user segment for plastic pipes, accounting for 45-50% of demand and the demand from this sector starts picking up in summer season.