Mumbai, June 26 || The compound annual growth rate (CAGR) of India’s plastic pipes industry is anticipated to accelerate to around 14 per cent over financial years 2024-27, to touch Rs 80,500 crore by FY27, driven by strong demand from housing, irrigation, water supply, and sanitation, according to a report released on Thursday.
Additionally, robust replacement demand will be a key growth driver, Motilal Oswal Financial Services Ltd’s report states.
The plastic pipes industry had clocked a 10 per cent compound annual growth rate (CAGR) over FY14-24, reaching Rs 54,100 crore, driven by plumbing and irrigation, which accounted for 84 per cent of total applications. CPVC, HDPE, UPVC, and PPR pipes reported strong growth, with PVC maintaining the largest market share.
Despite a 38 per cent decline in residential launches during calendar years 2012-20, PVC and CPVC pipe sales have remained strong (growing 46 per cent in FY20 over FY12), driven by replacement demand from ageing GI pipes. With pipes accounting for only around 2-3 per cent of total building costs, their high durability and cost-effectiveness have accelerated adoption, according to the report.