PVC Pipe and Fitting Manufacturing Business

PVC Pipe and Fitting Manufacturing Business. Production of Polyvinyl Chloride (PVC) Pipe Fitting

PVC Pipes and fittings are made from the polyvinyl chloride material. PVC pipes and fittings are manufactured by heating plastic resins and the molten resins are set to make desirable shapes and sizes. The PVC pipes and fittings are widely used in the various applications such as irrigation, building & construction, water supply, sewage management and others. PVC pipes and fittings are of various types such as rigid pipes and flexible.

PVC pipes and fittings have various attractive properties such as high temperature resistant, corrosion resistant, cost effective etc. PVC pipes and fittings are used almost in each and every building & construction and irrigation systems. The PVC pipes and fittings are used as a protective covering for electrical wires to provide insulation. The growth of the global PVC pipes and fittings market is increasing with increasing urbanization. The PVC is easily available, cost-effective material and is used widely.

PVC piping systems are used in several areas for the transport of water - from delivery of drinking water over the removal of sewage or waste products to drainage of water from the ground or roof.

Polyvinyl Chloride (PVC) piping is the most widely used plastic piping material. PVC piping systems are:

· Environmentally sound

· Provide long service life

· Easy to install and handle

· Corrosion resistant

· Cost effective

· Widely accepted by codes

Fittings are used for different purposes such as changing of direction, repairing of broken pipes, and protection from leakage, sprinkling, and many other purposes. PVC fittings available and they can be used to fulfill different kinds of requirements. Today people are using wide ranges of PVC pipes fittings in their homes.

Market Outlook

The global PVC pipes and fittings market is anticipated to grow during the forecast period. The demand for the global PVC pipes and fittings market is growing due to several reasons. The PVC pipes and fittings are used in new building construction and also in the existing buildings. The increasing urbanization raising the demand of the PVC pipes and fittings. The demand of PVC pipes and fittings market is rising as the replacement of existing pipes and fittings made of iron and steel due to several disadvantages such as corrosion, heavy, and high cost of steel and iron pipes and fittings.

The market for PVC pipes and fittings is growing as the PVC pipes and fittings can withstand higher temperatures without getting rusted or wear and tear. Some industrial chemicals react with the iron, copper, steel pipes and fittings etc.

The demand of PVC pipes and fittings market is rising as the replacement of existing pipes and fittings made of iron and steel due to several disadvantages such as corrosion, heavy, and high cost of steel and iron pipes and fittings. The market for PVC pipes and fittings is growing as the PVC pipes and fittings can withstand higher temperatures without getting rusted or wear and tear. Some industrial chemicals react with the iron, copper, steel pipes and fittings etc.

There are some restraints which may hinder the growth of the PVC pipes and fittings market. One of the factors that may hinder the growth of the global PVC pipes and fittings market is that the long usage of PVC pipes for the supply of drinking water may be hazardous, the taste of water can be as the taste of the PVC pipes. Another restraint can be the disposal of PVC pipes and fittings releases greenhouse gases which pollute the environment.

Rapid urbanization in developing countries will continue to drive growth in the market, since strong urban concentration will trigger increases in infrastructure expenditure, and urban planning. The creation of large megacities involves the construction of high-rise buildings and skyscrapers, which in turn increases prospects for pipe work, thus driving market prospects for pipe fittings and fixtures.

Some of the key players in the manufacturing of pipes and fittings Include Saint-Gobain, Grohe Corporation, Jaquar Corporation, Kohler Company, Hindustan Sanitaryware and Industries Ltd (Hindware), Aliaxis Group, Alumasc Building Products, Aluminum Roofline Products (ARP), Amazon Civils, Anglian Home Improvements, Ash & Lacy Building Systems, Marley Plumbing & Drainage, McAlpine and Co, , Pegler Yorkshire Group, PF Copeland Rainwater Systems among others.

India PVC Pipes and Fittings Market

The India PVC pipes and fittings market continues to grow and is anticipated to register a double digit CAGR of around 14.7% by revenue during the period FY’2018- FY’2026. Polyvinyl chloride (PVC) is the third largest selling plastic commodity after polyethylene & polypropylene. For its chemical properties, durability, low cost and others, PVC has the advantage of replacing wood, metal, concrete and clay in different applications. They are also corrosion resistant, flame-resistant, and easy to install & handle. Plastic pipes and fitting market is segmented into UPVC, CPVC, HDPE, LDPE, PPE and others. Of these, UPVC has accounted for the highest revenue share, following by HDPE pipes and fittings.

The India pipes and fittings market is fragmented with a large number of players competing in the market. Upsurge in the demand for pipes in the irrigation sector, sanitation and building construction is the major driving factor for India PVC pipes market. This will lead to increase in PVC pipes and fittings which are used in installation of such systems. It has also been anticipated that both urban and rural areas in India are likely to suffer from water shortage problems due to erratic rainfall patterns and decreasing natural sources of water. This will lead to the construction of more borewells across the country to draw groundwater. The rising prices of PVC resin which is the main raw material in manufacturing of PVC pipes and fittings is likely to act as a growth restraint in the market.

The market can be segmented into UPVC, CPVC, HDPE, LDPE, PPR, PPH pipes and fittings and others. Of these, UPVC has accounted for the highest revenue share, followed by HDPE pipes and fittings. The primary growth drivers for the market have been growing sanitation and agriculture sectors in India.

The market has also been segmented by end-user applications into irrigation, sewerage, water supply and plumbing and borewell application. Of these, irrigation had the highest revenue share because PVC pipes and fittings are used widely in irrigation systems installed in farms and fields all over the country.

Increase in the level of implementation of favorable government schemes in the end-user application sectors will be the major contributor to this growth. Increasing demand for housing as population and personal disposable incomes increase will also drive the growth in the ground handling services market in India.

The Indian PVC pipes and fittings industry is bifurcated into irrigation, water supply, sewerage, plumbing, chemical and oil and others on the basis of its applications. Expanding population leading to an increase in the demand for agricultural products and increasing water sanitary management have created substantial demand for PVC pipes and fittings in agriculture, infrastructure, real estate and construction sectors across the nation, over the years.

Some of the key players in pipes and fittings Include:

· Finolex Industries Limited

· Ashirvad Pipes Private Limited

· Supreme Industries Limited

· Astral Poly Technik Limited

· Prince Pipes and Fittings Private Limited

· Jain Irrigation Systems Limited

· jay Pipes (Ajay Industrial Corporation Limited)

· Kisan Mouldings Limited

· Captain Pipes Limited

· Dutron Polymers Limited

· Kankai Pipes and Fittings Private Limited

· Miraj Pipes and Fittings Private Limited

· Texmo Pipes and Products Limited

· Apollo Pipes Limited

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Properties
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Assumptions for Profitability workings	Plant Economics
Production Schedule
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Plant & Machinery Indigenous Machineries Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies
Working Capital Requirement Per Month Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store
Overheads Required Per Month And Per Annum Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses
Salary and Wages	Turnover Per Annum
Share Capital Equity Capital Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals Revenue/Income/Realisation Expenses/Cost of Products/Services/Items Gross Profit Financial Charges Total Cost of Sales Net Profit After Taxes Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements Current Assets Gross Working. Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio
Annexure 7 :: Break-Even Analysis Variable Cost & Expenses Semi-Var./Semi-Fixed Exp. Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation	Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit	Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,	Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit	Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses	Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges	Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses	Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses	Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)	Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)	Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits	Annexure 35 ::Projected Pay-Back Period And IRR