How
India PVC Solvent Market is Positioned?
The PVC solvent cement market in India is currently in its early
growth stage. The market evolved from core solvent cement manufacturers such as
HP International, Weld-on (Astral Poly Technik), Neoseal to plastic pipe
manufacturers (Jain Irrigation, Finolex Pipes, Ashirvaad Pipes etc.) which also
started manufacturing solvent cement as part of their product portfolio to
capture further share in the plastic piping market segment and act as one stop
solution for all piping needs for their customers. Though the market is
dominated by organized players, the number of solvent cement manufacturers in
unorganized segment is very large and they cater to requirements of small time
contractors, plumbers who are looking at low cost products.
PVC Solvent Cement market in India has
grown from INR ~crore in FY’2013 to INR ~crore in FY’2018 at a CAGR of ~%. This
growth was driven mainly by the rising demand for PVC plastic pipe and fittings
in India. Increase in demand from the agricultural sector for irrigation
purposes has been the major source of demand for PVC pipes and PVC solvent
cement. As Government of India (GoI) is emphasizing on increasing the net irrigated
land in India with several micro irrigation projects, the demand for PVC pipes
and solvent cement is bound to increase. The market revenue also increased with
added competition from increasing number of companies which entered the market
in the recent years with new product variants.
India
PVC Solvent Cement Market Segmentation
By Product Type
This segmentation focuses on share of market on the basis of revenue by
type of solvent cement in demand. As of FY’2018, the PVC solvent cement had
captured the majority of the market share of about ~% owing to PVC pipes being
majorly used in the water supply and drainage & sewage in India and
generally the diameter of these pipes are large which tends to increase the
amount of solvent cement being used in these application.
By Market Structure
Organised Market accounted for about ~% of the overall market revenue mainly
because they have a strong hold in the market owing to their brand value,
consistent product quality, and wider distribution base. They are able to
attract industrial customers as they are regarded as experts in this field and
are able to help the industrial buyers in choosing the correct product for
their applications. The construction sector constituted for about ~% of the
demand and used vehicles meant for transportation of employees.
By Regions
India PVC solvent
cement is divided into 2 regions namely urban areas and rural areas. In FY’2018,
urban region accounted for about ~% in terms of revenue due to higher population as compared to rural
regions, owing to increased migration and employment opportunities. Rural
region is more inclined towards irrigation and other forms of agriculture which
results in higher installation base for PVC pipe and fittings as these pipes
are used for water supply, drainage and sewage applications.
Competitive
Landscape
The competition in India solvent cement market has grown over the
years, with new companies entering the market. There are large numbers of
companies operating in this segment. Companies in this market are competing on
the basis of product variants, product quality, certifications and distribution
network. Organized sector dominated the market due to consistency in product
quality and wider distribution network. Companies in the organized sector also
allocate time and resources to build their dealer networks to expand the reach
of their products. This is done through promotion, marketing and recommendation
based strategies with end user entities such as plumbers, architects,
consultants (in agriculture and real estate) and contractors. The major players
in the organized PVC solvent cement in India include HP International, Astral Poly Technik Limited (Weld-on
and Solvobond), Neoseal, Finolex
Industries Limited, Supreme Industries Limited, Ashirvad Pipes Private Limited
and Jain Irrigation Systems Limited.
PVC
Solvent Cement Market Future Outlook and Projections
India PVC solvent cement market is projected to increase from INR~
crore in FY’2018 to INR ~ crore in FY’2023 at a CAGR of ~% during the
forecasted period. Major growth drivers during this later period will be
increased sanitation facilities across Tier 2 cities and semi-urban areas. This
will be due to increasing population and personal disposable incomes which will
augment the growth of number of housing and residential units. The PVC solvent cement segment will see an
increase in their share of fleet over the forecasted period, FY’2018-FY’2023
from ~% to ~% owing to government focusing heavily on investment in farm
activities, it is very likely that irrigation network for agricultural lands
increases all across the country. Since these systems mainly use PVC pipes and
fittings, demand for PVC solvent cement will grow. RERA is likely to affect the
market through its impact on the real estate market in India. Construction of
real estate units may slow down due to RERA.
For more information on the
research report, refer to below link:-
Related
Reports:-
Ankur Gupta
Head Marketing &
Communications
+91-9015378249
