New Delhi [India], September 28 (ANI): The Indian plastics pipes industry weathered multiple headwinds in FY25, grappling with subdued infrastructure spending, liquidity challenges, and volatile PVC prices, according to a recent JM Financial report.
The report highlights that the sector, traditionally fragmented and agriculture-focused, has steadily shifted towards a more organised ecosystem catering to water supply, sanitation, plumbing, and industrial applications. Despite the challenges in FY25, the industry expects near-term support from channel restocking and stabilising PVC prices, which reached around INR 79 per kg in September 2025.
PVC prices, a critical pass-through cost for pipe manufacturers, have seen significant fluctuations over the past few years. ” On the global front, sluggish construction activity in China and developed markets suppressed demand, while a supply glut from major exporters (China, South Korea, Taiwan) led to aggressive dumping at lower prices. Historically, PVC prices have grown at a ~2 per cent CAGR over 25 years, but the segment saw a ~4 per cent CAGR decline over FY20-25. Over the past 4-5 months, prices have shown signs of recovery, increasing by ~INR 7/kg to reach ~INR 79/kg in Sep’25, although levels remain well below FY22 peaks,” the report said.
Looking ahead, structural demand drivers remain strong. Government initiatives such as the Jal Jeevan Mission, Swachh Bharat Abhiyan, and Housing for All, alongside rising agricultural and replacement demand, are likely to accelerate the adoption of plastic piping systems. The report estimates India’s plastic piping market at around INR 600-650 billion, projecting a growth rate of 10-12 per cent CAGR over FY25-30.
“Stabilising PVC prices should restore distributor confidence, reduce inventory-related challenges, and support margin recovery for organised players,” the JM Financial report noted. Potential implementation of Bureau of Indian Standards (BIS) quality norms for PVC imports, likely by December 2025, is expected to further protect domestic players from low-quality imports and enhance pricing power. (ANI)
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