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.
It points out that during real estate revivals, pipe companies have consistently outperformed, with sales growing 1.8x in FY24 over FY20.
Additionally, public infrastructure projects such as JJM (Rs 67,000 crore allocation), irrigation schemes (PMKSY), and smart city development projects continue to fuel demand.
Around 52 per cent of India’s cultivated land lacks irrigation, presenting a major growth opportunity for PVC pipes. With a strong replacement cycle and rising government investments, the pipe industry remains well-positioned for sustained growth, the report states.
The rapid adoption of new-age plastic pipes is transforming city gas distribution (CGD), water supply, and infrastructure in India. With the government targeting 70 per cent CGD coverage by 2030 and aiming to increase the gas mix from 6.7 per cent to 15 per cent, HDPE, MDPE, and PEX pipes are gaining traction due to their cost efficiency, flexibility, and corrosion resistance, the report further states.
Beyond CGD, advanced polymer-based pipes are reshaping plumbing, irrigation, and industrial applications. CPVC pipes are driving hot and cold water distribution, OPVC pipes are replacing Ductile Iron (DI) pipes in sewage and water projects, while HDPE pipes are playing a crucial role in micro-irrigation and smart city development. These innovations are expanding market potential and driving long-term industry growth, according to the report.
The housing sector will continue to be a long-term sustainable growth driver for the pipes sector with a strong order launch pipeline and healthy replacement demand, the report added.
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