Indian Plastic Pipes Industry Braces for Growth Amid Challenges

The Indian plastics pipes industry encountered significant challenges in FY25 due to reduced infrastructure spending, liquidity pressures, and fluctuating PVC prices. A JM Financial report reveals that this historically fragmented sector has begun transitioning towards a more organized system, pivoting to serve water supply, sanitation, plumbing, and industrial needs.

Despite the difficult FY25 landscape, the industry is optimistic, anticipating short-term relief from channel restocking and stabilizing PVC costs, which have balanced at approximately INR 79 per kg as of September 2025. The global stage saw dampened demand, exacerbated by sluggish construction activity in China and developed economies, coupled with surplus exports from China, South Korea, and Taiwan.

The report underscores persistent structural demand drivers, bolstered by government initiatives like the Jal Jeevan Mission, expected to drive adoption of plastic piping systems. With India's plastic piping market estimated at INR 600-650 billion, growth projections remain robust at a 10-12% CAGR from FY25 to FY30, further buoyed by potential BIS quality norms enhancing domestic market strength.

(With inputs from agencies.)