Adani to Challenge Reliance in Petrochemicals with New PVC Plant by 2028.

Billionaire Gautam Adani's conglomerate is set to make a significant foray into India's petrochemicals sector with the construction of a 1 million tonne per annum (MTPA) Polyvinyl Chloride (PVC) plant in Mundra, Gujarat. This move will directly position the Adani Group as a formidable competitor to Reliance Industries Ltd, currently the dominant player in the Indian petrochemicals market, according to sources familiar with the development.PVC, a versatile synthetic plastic polymer, is crucial for manufacturing a wide range of everyday products. Its applications span from essential pipes and fittings, window and door frames, and cable insulation to vinyl flooring, wall coverings, credit cards, and even toys.

India's current annual PVC demand stands at approximately 4 million tonnes, with domestic production capacity at around 1.59 million tonnes. Notably, Reliance Industries accounts for roughly half of this domestic production. The demand for PVC is projected to grow at a Compound Annual Growth Rate (CAGR) of 8-10 percent. This robust growth is largely fueled by expanding sectors such as agriculture (driven by increased irrigated land), infrastructure (supported by water supply and sanitation projects), housing, and the pharmaceutical and packaging segments.

Adani's entry into this high-demand sector underscores its strategic ambition to diversify its extensive business portfolio and capitalize on India's burgeoning industrial growth. The new PVC plant at Mundra is expected to significantly reduce India's reliance on imported PVC and cater to the country's growing material needs.