India's plastic pipe industry holds significant growth potential, with per capita consumption far below the global average, according to a recent report by Jefferies. The report notes that India's consumption of plastic pipes is considerably lower than that of developed regions such as the US, Europe, and China, suggesting a substantial untapped market. “India's per capita pipe consumption is lower than the world average and significantly lower than the US, Europe, and China. This points to considerable growth potential for the Indian plastic pipe industry,” the report states. Over the past decade, the sector has experienced an 8% compound annual growth rate (CAGR) from FY15 to FY24. By FY25, it is expected to reach a market size of ?500 billion, driven by a recovery in capital expenditure (capex) and a booming housing sector.

However, the report highlights challenges in raw material costs, specifically polyvinyl chloride (PVC). Volatility in PVC prices affects manufacturers’ margins, as sharp declines in PVC prices lead to inventory losses and distributor destocking. Despite these challenges, Jefferies expects the industry to maintain strong growth, especially with increasing infrastructure investments and ongoing demand from the housing sector. The plastic pipe segment has consistently outperformed the tiles sector in volume growth over the past two years, a trend expected to continue.