The demand for PVC in India has witnessed an impressive CAGR. The boom in the real estate, agriculture, and allies sectors has given further push to the demand for PVC products, thus driving manufacturing activities. In the coming years, the Indian PVC market is anticipated to witness healthy growth after the government scheme of self-reliant India, emphasising the domestic production and consumption of products.
As the PVC industry continues to see robust demand, Captain Pipes, a leading player in the PVC pipe industry, has embarked on an expansion spree by acquiring six adjacent industrial plots with a total area of 38,054 square meters. The acquired land would be used to set up a greenfield manufacturing facility for PVC pipes and fittings.
This is in addition to the board's earlier decision to approve a plan for setting up a greenfield plant near Ahmedabad. The greenfield plant will spur local manufacturing, thus giving a boost to the government's ambitious Make In India initiative.
The development assumes significance as the industry has the potential to attract fresh investments. According to a FICCI report, the Indian poly vinyl industry can attract investment of more than Rs 20,000 crore over 5-7 years.
The PVC industry in India has historically been driven by agriculture till 2000. Thereafter, the main driver for PVC consumption has been infrastructure, for instance, pipes and fittings.
Meanwhile, Captain Pipes shares have been in uptrend as they have shown robust performance, gaining 71.08 per cent in one year. It has significantly outperformed its sector, rising by 794.12 per cent in two years, thus attracting investor attention and reflecting the market's confidence in its potential. In the second quarter of the financial year 2023–24, its revenue from operations grew by more than 8 per cent due to healthy volume growth.
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