PVC Pipes Manufacturing Project Production of Polyvinyl Chloride PVC Pipes

Polyvinyl Chloride (PVC) piping is the most widely used plastic piping material. PVC pipe is manufactured by extrusion in a variety of sizes and dimensions and generally sold in 10' and 20' lengths. PVC pipe is available in both solid wall and cellular core construction. Cellular core construction involves the simultaneous extrusion of at least three layers of material into the pipe wall: a solid outer layer, a cellular core intermediate layer, and a solid inner layer.

Polyvinyl chloride (PVC) pipe is made from a plastic and vinyl combination material. The pipes are durable, hard to damage, and long lasting. They do not rust, rot, or wear over time.

PVC is a polar polymer with strong intermolecular forces; therefore it is rigid at room temperature. On the other hand, when a plasticizer is added upon fabrication, flexible PVC products are obtained. This versatility is a major advantage of PVC.

PVC pipes are used for a variety of purposes e.g. water supply schemes, spray irrigation, deep tube well schemes and land drainage schemes. PVC slotted and corrugated pipes are ideal systems for drainages of water from land where water logging is inevitable. It is widely used by various utility services now-a-days too. The usage of PVC pipes also depends upon the size of these pipes too. It is manufactured in different sizes having innumerable usage value.


The Chief Advantage of PVC are:

·         Resistance to corrosion

·         Light weight

·         Toughness

·         Rigidity

·         Economical in laying, jointing and maintenance

·         Ease of fabrication

The PVC pipes are much lighter than cast iron or A. C. pipes. Because of their lightweight PVC pipes are easy to handle, transport, and install. Solvent cementing techniques for jointing PVC pipe lengths is cheaper, more efficient and far simpler. PVC pipes progressively replacing conventional pipes like G.I., Cast Iron, Asbestos Cement or Stone-ware. PVC pipes are light in weight, rates for use under pressure, easy to install, low frictional loss, low on maintenance cost, and have low frictional loss. PVC pipes do not become pitted or tuberculated and are unaffected by fungi and bacteria and are resistant to a wide range of chemicals.

 

Few Indian Major Players are as under:

·         AML Steel Ltd.

·         Ajanta Tubes Ltd.

·         Anant Extrusions Ltd.

·         Bharat Pipes & Fittings Ltd.

·         Bharat Steel Tubes Ltd.

·         Fine Plast Polymers Ltd.

·         Finolex Industries Ltd.

·         Gwalior Polypipes Ltd.

·         Jadia Pipes (India) Ltd.

·         Jain Tube Co. Ltd.

·         Omega Pipes Ltd.

·         Profitcore Pipes Ltd.

·         Raj Irrigation Pipes & Fittings Ltd.

·         Sudhakar Plastic Ltd.

·         Sudhakar Polymers Ltd.

·         Vindhya Pipes & Plastics Ltd.

·         Vishal Pipes Ltd.

 

Market Outlook

India PVC pipes and fittings Market is expected to reach INR 391 billion by FY’2019

Future growth of India PVC pipes and fittings Market is expected to be led by rapidly increasing population leading to increased demand for agricultural production, expanding housing sector and significant role played by the government in the development of irrigation infrastructure and real estate sector in the country.

PVC pipes and fittings market in India has witnessed constant incline in terms of volume of PVC pipes and fittings produced, year on year.

The exports of PVC pipes and fittings in India have witnessed healthy traction in terms of growth as observed over the past few years. India continues to maintain its leading position as the net exporter of PVC pipes and fittings across the world. The availability of cheap labor and low processing costs has made India a manufacturing hub for PVC pipes and fittings with several multinationals setting up their manufacturing facilities in the country. The export market for PVC pipes in India has grown considerably over the years due to the country’s competence in low cost manufacturing and technically trained manpower.

Global PVC Pipe Market size was valued at $54,246 million in 2015, and is anticipated to grow at a CAGR of 6.7% to reach $85,565 million by 2022. Polyvinyl chloride (PVC) is the third largest selling plastic commodity after polyethylene & polypropylene. It is beneficial over other materials owing to its chemical resistance, durability, low cost, recyclability, and others; thus, it can replace wood, metal, concrete, and clay in different applications. Piping and piping systems are a major application of PVC resin. PVC pipes are manufactured by extrusion method in a variety of dimensions such as solid wall or cellular core construction. These are corrosion resistant, cost-effective, flame resistant, and easy to install & handle, and environmentally sound, with long service life.

PVC pipe has applications in drain-waste-vent (DWV), sewers, water mains, water service lines, irrigation, conduit, and various industrial installations.

Future growth of India PVC pipes and fittings Market is expected to be led by the rising construction of much required residential units and inclining demand of PVC pipes and fittings in agricultural sector to bring in more area under cultivation. This will also be bolstered by the government projects for clean environment and housing for all which includes a large focus on the sanitation facilities for the people.

The Indian PVC pipes and fittings industry, which comprises of segments such as RPVC, PVC and CPVC pipes and fittings has grown significantly over the last few years due to the increase in the demand from irrigation sector on account of the burgeoning population and uncertain weather conditions in the country. The PVC pipes and fittings industry in India is highly fragmented.

“PVC pipes will gradually replace conventional piping systems in the market due to their lower cost and higher durability. CPVC pipes are expected to register fastest growth in terms of the production capacity in the next 5 years from FY’2015-FY’2020. Rising acceptance of CPVC pipes over galvanized or PVC pipes will lead to the growth in the future.

Polyvinyl Chloride

Demand : Past and Future

Year

(In '000 Metric Tonne)

1990-91

290

2000-01

833

2001-02

956

2002-03

964

2003-04

1064

2004-05

1052

2005-06

1245

2006-07

1320

2007-08

1465

2008-09

1635

2009-10

1830

2010-11

2040

2011-12

2175

2012-13

2330

2013-14

2620

2014-15

2945

2015-16

3110

2016-17

3400

2017-18

3625

2018-19

3860

2019-20

4225

 

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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

 

 

Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    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