Expansion underway at Finolex to double PVC capacity

05-Dec-05

Finolex Industries is India's large-scale integrated player in PVC (poly vinyl chloride) and PVC pipes business that caters to agriculture, housing, telecom and the industrial sectors. With Centre and State government announcements of a number of irrigation projects coupled with a good monsoon, and a boom in construction and infrastructure, demand is expected to boom in the PVC segment. Global demand for PVC is growing at 4% pa, while the Indian industry is expected to grow at 10% in 2005-06. To cater to the growing demand, Finolex is expanding its PVC resin capacity from 1,30,000 tpa to 2,60,000 tpa. PVC pipe capacity is expected to increase from the current 62,500 tons to 80,000 tons. About 50% of India's PVC pipe business is in the organised sector, of which over 20% market share is with Finolex. Supreme Industries, Jain Irrigation and others account for the balance.