Monday, June 29, 2020

Increasing Number of Applications and Demand from the Artificial Leather Industry are Stimulating the Demand for PVC Emulsion in India: Ken Research


Rising Number of Applications: In the past few years, consumption of PVC emulsion has increased in a plethora of end-use applications such as for manufacturing synthetic leather, vinyl flooring and wall coverings, coir mats, gloves, toys, printing ink and many more. The artificial leather industry reached ~INR 61 billion in 2019 and was analyzed to be the largest user of PVC emulsion in India.

Rising Imports: The lack of new domestic manufacturing capacity addition and consistent rise in consumption has led to a significant rise in the imports of PVC emulsion/paste into the country over the review period. South Korea, Colombia Taiwan, Japan, China are among the top exporting countries for PVC emulsion imports in India. The price of imported PVC emulsion and raw materials including EDC & VCM impact the domestic prices of PVC emulsion/paste.

Growth of Automotive Industry: The total automobile production in India reached ~2.6 crore units in FY’2020. The automotive industry is a large consumer of PVC emulsion which is used to manufacture adhesives, sealants and synthetic leather upholstery. The growth of the automotive industry in the country has stimulated the rise in the demand for PVC emulsion.

Impact of Covid-19: The PVC Emulsion industry in India is expected to witness decline in FY’2021 due to the imposed lockdown in the first quarter of the year & halt in production activity, sales and logistics during the period. The temporary shutdown of end-user manufacturing facilities in the first quarter of the year is also impacting demand. The pandemic has also brought global trade to a standstill which would ultimately impact the industry as a significant proportion of the domestic demand is catered through imports. However, the industry is expected to witness steady recovery in the following financial year with manufacturing activities and trade resuming. The domestic producers also have the opportunity to increase production and garner greater market share in the absence of imports.

Analysts at Ken Research in their latest publication "India PVC Emulsion Industry Outlook to FY’2025- Rising Consumption in Artificial Leather and Usage in Toy Manufacturing to Elevate Demand" observed that the increasing consumption of PVC paste/emulsion by various industries such as artificial leather, coir mats, vinyl flooring, adhesives & sealants & wall covering is propelling the demand for PVC emulsion. Reduction in custom duty on raw material import, government impetus to boost domestic manufacturing and growth of end-user industries is expected to drive the demand in the industry in the future. The India PVC Emulsion industry in terms of demand is expected to grow at a CAGR of 8.0% during the period FY’2020(P) – FY’2025.

Key Segments Covered:-
By Production
Import
Domestic

By End-Users (Domestic Volume)
Synthetic Leather
Flooring
Films and Sheets
Coir Mats
Adhesives & Sealants
Conveyor Belts
Wall Coverings
Others

By End-Users (Import Volume)
Synthetic Leather
Printing Ink
Toys
Coir Mats
Conveyor Belts
Others

Companies Covered:-
Finolex Industries Limited
Chemplast Sanmar Limited

Key Target Audience:-
PVC Emulsion Companies
PVC Paste Companies
PVC Suspension Companies
PVC Emulsion/Paste Importers

Time Period Captured in the Report:-
Historical Period: FY’2014 - FY’2020(P)
Forecast Period: FY’2020(P) - FY’2025

For More Information on the research report, refer to below link:-

Related Reports:-


Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249


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