PVC Pipe Industry Set for Revival Amid Government Push
PVC pipe manufacturers are poised for a comeback this fiscal year, fueled by strong demand from government-backed initiatives and a more stable pricing landscape. Eased inventory levels and robust end-user segment demand are expected to enhance profitability and allow capacity expansion without financial strain.
- Country:
- India
After experiencing stagnant revenue growth in the previous financial year, PVC pipe manufacturing companies are preparing for recovery. This uptick is attributed to strong demand from end-user segments, bolstered by government initiatives and a more stable price environment, Crisil Ratings reports.
Improved profitability and reduced inventory levels will also ease working capital requirements, allowing for capacity expansion without compromising financial stability. Government schemes such as the Jal Jeevan Mission and Pradhan Mantri Awas Yojna have driven recent demand, focusing on water supply, sanitation, and housing segments.
Increased government budget allocations this fiscal year are expected to further boost the demand for PVC pipes and fittings. Recovery is anticipated as dealers replenish stocks, helping mitigate last year's 130 basis points decline in operating margins. The irrigation and water supply sectors are projected to maintain strong demand due to continued government support.
(With inputs from agencies.)
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