New Delhi, July 23
India's polyvinyl chloride (PVC) pipes and fittings manufacturing sector will see a growth of 10-11 per cent in revenue this fiscal (FY26), led by robust demand from end-user segments and a more stable price environment, a report said on Wednesday.
Manufacturers will see a recovery this fiscal after witnessing a flattish revenue growth in the last financial year, Crisil Ratings said in its latest report.
The uptick in demand is driven by positive momentum in government schemes such as Jal Jeevan Mission, PM Awas Yojna and other construction activities.
“Demand for PVC pipes and fittings has remained robust in recent times, driven by government schemes such as Jal Jeevan Mission and Pradhan Mantri Awas Yojna, which focus on the water supply, sanitation and housing segments,” said Himank Sharma, Director, Crisil Ratings.
The growth will lead to a reduction in manufacturers' high-cost inventory as dealers begin restocking channels and partly wipe out a 130 basis points’ decline in operating margin last fiscal.
Improved profitability and easing inventory levels will also reduce manufacturers' working capital requirements and afford room to expand capacities without stressing balance sheets, the report highlighted.
According to the report, 16 PVC pipe makers, with cumulative revenues of over Rs 30,000 crore, representing two-thirds of the organised segment’s revenues in the last fiscal, indicated the growth potential this fiscal.