Adani's Bold Foray into PVC Manufacturing to Challenge Reliance

Billionaire Gautam Adani's conglomerate is constructing a 1 million tonne per year PVC plant in Gujarat, marking its entry into the petrochemicals sector, competing with Reliance Industries. The new plant will cater to India's growing PVC demand, projected to rise at 8-10% CAGR, reducing import dependency.

Adani Group, spearheaded by billionaire Gautam Adani, is making a monumental entry into the petrochemicals industry with a groundbreaking plan to build a 1 million tonne per annum PVC plant in Mundra, Gujarat. This strategic move will position Adani against Reliance Industries, India's predominant PVC producer, marking the beginning of a significant rivalry in the sector.

The planned facility is part of a wider petrochemical cluster envisioned by Adani Enterprises Ltd, which aims to boost India's domestic PVC production capacity amidst soaring demand. Industry experts highlight the country's PVC demand, currently around 4 million tonnes, is expected to grow significantly, fueled by sectors such as agriculture, infrastructure, and housing.

Adani's ambitious project, expected to go live by fiscal 2028, will adopt an advanced acetylene and carbide-based production process. Despite earlier financial setbacks and allegations from US short-seller Hindenburg Research, the project is back on track with significant funding and resources, promising to significantly reduce India's PVC supply gap and import reliance.

(With inputs from agencies.)