23 June 2011 10:32 [Source: ICIS news]
SINGAPORE (ICIS)--The domestic demand for polyvinyl chloride (PVC) in India is expected to increase to 2.28m tonnes in 2014, from 1.89m tonnes in 2011, because of robust economic growth and massive infrastructure projects, a senior company executive said on Thursday.
The demand will be boosted by the government’s “emphasis on infrastructure development” as well as the forecasted 8% annual average growth in the Indian economy, said Amitabh Gupta, senior vice president of India-based chlor-alkali producer DCW.
Gupta was speaking at the 15th World Chlor-Alkali Conference in Singapore. The conference runs from 23-24 June.
There is tremendous growth potential in the PVC domestic market, with Indian per capita consumption at only 1.25kg compared with 8kg in China and 17kg in North America, Gupta said.
Pipes and fittings as well as profiles and calendaring are major end downstream markets for PVC, growing at a compounded annual growth rate of 8-10%, according to Gupta.
However, the lack of new PVC capacity in India in the next few years will result in a 1m tonne demand gap by 2014, even with a “modest” growth rate of 7%, he said.
Domestic production capacity of PVC, meanwhile, is expected to remain stagnant from 2012 to 2014 at 1.25m tonnes/year, Gupta added.
There are five major PVC producers in India – Reliance Industries, Finolex, DCW, Chemplast and DCM Shiram. Reliance is the only integrated producer of PVC in India.
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