Will India’s plastic pipes industry experience robust double-digit growth?
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Synopsis
India's plastic pipes industry is on the verge of significant growth, with projections showing a CAGR of 14% from 2024 to 2027. The surge is largely due to increased demand in housing, irrigation, and public infrastructure projects, presenting unique investment opportunities.
Key Takeaways
- 14% CAGR anticipated in the plastic pipes industry from 2024-27.
- Projected market value of Rs 80,500 crore by FY27.
- Strong demand from housing, irrigation, and public infrastructure.
- Government initiatives are crucial for sustained growth.
- 52% of cultivated land in India still lacks irrigation.
Mumbai, June 26 (NationPress) The compound annual growth rate (CAGR) of India’s plastic pipes sector is projected to rise to approximately 14 percent during the financial years 2024-27, aiming to hit Rs 80,500 crore by FY27. This growth is primarily fueled by strong demand from housing, irrigation, water supply, and sanitation, as highlighted in a report released on Thursday.
Moreover, significant replacement demand is expected to be a crucial driver of this growth, according to the report by Motilal Oswal Financial Services Ltd.
The plastic pipes industry witnessed a 10 percent CAGR over FY14-24, reaching Rs 54,100 crore, largely propelled by plumbing and irrigation, which constituted 84 percent of total applications. The market saw substantial growth in CPVC, HDPE, UPVC, and PPR pipes, with PVC maintaining the largest market share.
Despite a 38 percent drop in residential launches from 2012 to 2020, sales of PVC and CPVC pipes remained robust, growing 46 percent in FY20 compared to FY12, thanks to replacement demand from aging GI pipes. Since pipes account for merely 2-3 percent of total building costs, their durability and cost-effectiveness have enhanced adoption, the report notes.
During real estate recoveries, pipe manufacturers have consistently outperformed, with sales increasing 1.8x in FY24 compared to FY20.
Additionally, government infrastructure initiatives such as JJM (with a Rs 67,000 crore allocation), irrigation schemes (PMKSY), and smart city projects are further boosting demand.
About 52 percent of India’s cultivated land lacks irrigation, representing a significant growth opportunity for PVC pipes. With a strong replacement cycle and increasing government investments, the pipes industry is strategically positioned for sustained growth, the report suggests.
The swift adoption of contemporary plastic pipes is revolutionizing city gas distribution (CGD), water supply, and infrastructure in India. The government aims for 70 percent CGD coverage by 2030 and plans to elevate the gas mix from 6.7 percent to 15 percent, making HDPE, MDPE, and PEX pipes increasingly popular due to their cost-effectiveness, flexibility, and corrosion resistance.
In addition to CGD, advanced polymer-based pipes are transforming plumbing, irrigation, and industrial applications. CPVC pipes are essential for hot and cold water distribution, while OPVC pipes are replacing Ductile Iron (DI) pipes in sewage and water projects. Furthermore, HDPE pipes are critical for micro-irrigation and smart city development. These innovations are expanding market potential and fostering long-term industry growth, according to the report.
The housing sector is expected to remain a long-term sustainable growth driver for the pipes industry, backed by a strong order pipeline and healthy replacement demand, the report concludes.
Point of View
It's essential to recognize the transformative potential of India's plastic pipes industry. With strong governmental support and increasing demand from various sectors, this growth trajectory reflects a broader trend in infrastructure development that promises to enhance living standards across the country.
NationPress
26/06/2025
Frequently Asked Questions
What is the projected growth rate for India's plastic pipes industry?
India's plastic pipes industry is expected to grow at a CAGR of approximately 14% from 2024 to 2027.
What factors are driving growth in the plastic pipes sector?
Growth is driven by demand from housing, irrigation, water supply, and sanitation, along with robust replacement demand.
How much is the industry expected to be worth by FY27?
The industry is projected to reach a valuation of Rs 80,500 crore by FY27.
What role does government investment play in this growth?
Government initiatives, including infrastructure projects and irrigation schemes, significantly boost demand for plastic pipes.
Which types of pipes are gaining popularity in India?
Pipes like HDPE, CPVC, and PVC are gaining traction due to their cost-effectiveness and durability.
