Products & Services of Plastic Pipe Industry In India

Source – ValueQuest

Polyvinyl Chloride (PVC) – PVC is the most commonly used polymer type and accounts for ~70% of the demand.

Chlorinated Polyvinyl Chloride (CPVC) – CPVC pipes are produced by chlorination of PVC resin. CPVC pipes can withstand higher temperature than standard PVC pipes and hence are suitable for hot and cold-water application.

High Density Polyethylene (HDPE) – HDPE Pipes are softer and more flexible pipes. HDPE is more suitable for fluid and gas transportation.

DWC (Double Wall Corrugated) – DWC pipes are similar to HDPE pipes and are fast replacing traditional metal and cement pipes (RCC) due to longer life and low-maintenance requirement. DWC pipes are mainly used for underground drainage system in government and infrastructure projects. Amongst large players, Supreme Industries was the first company to put up DWC capacity in 2016. Prince Pipes added capacities of DWC in 2018 and in the same year, Astral also added the capacity by acquiring a private company – Rex Polyextrusion.

Source – ValueQuest

Industry data suggests that there is striking difference in margins earned under each segment. Due to their specialized nature, fittings and CPVC fetch higher margins compared to other categories. Similarly, because of higher competition, companies earn lower margins in agri compared to plumbing and sewerage. Therefore, profitability of a company depends on its product profile and the segment it caters to.

The four key types are

  • Unplasticized polyvinyl chloride (UPVC), which represents 65% of industry demand,
  • Chlorinated polyvinyl chloride (CPVC) – 15%,
  • HDPE – 15% and
  • Polypropylene (PPR) – 4%

Composite pipes, which have a mix of metal and plastic layers, are also used for similar applications.

Source – Prince Pipe & Fittings DRHP, Page no – 121

Source – Prince Pipe & Fittings DRHP, Page no – 122

Source – JM Financial, Page no – 10

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