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India’s Plastic Pipe Industry Expected to Reach INR 50,000 Crore Market Size by FY25

The report highlights that the plastic pipes sector has achieved a robust 8% compound annual growth rate (CAGR) over the past decade, from FY15 to FY24, and is expected to reach a market size of INR 50,000 crore by FY25.

Jan 13, 2025

According to a recent report by Jefferies, India’s plastic pipe industry has immense growth potential as it has a lower per-capita pipe consumption compared to the global average. The report states that the country’s consumption levels are significantly below those of developed regions like the US, Europe, and China, highlighting a large untapped market.

The report also revealed that the plastic pipes sector has recorded an 8 percent compound annual growth rate (CAGR) over the past decade, from FY15 to FY24, and is projected to reach a market size of INR 50,000 crore by FY25.

The industry growth is expected to remain strong, fueled by increasing traction in the housing sector and infrastructure investments. However, the report also outlines challenges related to the key raw material, polyvinyl chloride (PVC). The PVC prices have been volatile, directly impacting margins for plastic pipe manufacturers.

While the PVC prices rose from INR 75 per kg at the end of September 2024 to inr 78 per kg by November 2024, they fell by around 4 percent in December 2024, indicating that the sharp declines in PVC prices can lead to inventory losses, as well as destocking by distributors, which brings down volume of pipe production

The first half of FY25 witnessed weaker capex activity and a higher base effect from the previous year, which weighed on volume growth in the pipes and tiles segments. However, the segment is expected to recover in volumes during the second half of 2025, supported by a rebound in capex and business-to-business (B2B) activity.

Also Read: Welspun Corp, Aramco to Establish 3,50,000 MTPA Pipe Facility in Saudi

Despite the challenges, the long-term growth prospects for India’s plastic pipe industry remain promising, supported by favorable market dynamics and surge in infrastructure investments.