Epigral Limited, an integrated chemical manufacturer, has announced the commissioning of an additional 45,000 Tonnes Per Annum (TPA) capacity of Chlorinated Polyvinyl Chloride (CPVC) resin plant at its Dahej facility in Gujarat. With this expansion, Epigral's total CPVC resin capacity has reached 75,000 TPA, making it the world's largest CPVC resin facility at a single location, according to the company. The company's shares rose 3% on the news.
CPVC resin and compound are components used in the manufacturing of CPVC pipes and fittings, known for their heat and chemical resistance properties, making them suitable for various applications. India's CPVC demand is approximately 2,50,000 TPA and is growing, with an annual growth expected to range between 10% and 13%.
The expansion is aimed at meeting the growing demand for CPVC resins in India and globally.
In addition to the CPVC resin capacity expansion, Epigral is also venturing into CPVC compound production, with a projected capacity of 35,000 TPA. The project is currently under progress and is expected to be commissioned in the first quarter of the financial year 2025. The CPVC compound market in India is estimated to be around 100,000 to 150,000 TPA, with a growth rate of 8-10% annually.
The CPVC market in India has been witnessing significant growth in recent years, driven by the increasing demand for high-performance piping systems in various industries such as construction, agriculture, and water management. The market is expected to continue its growth trajectory, with a projected CAGR of 10-12% over the next five years.
The key factors contributing to this growth include rapid urbanization, government initiatives for infrastructure development, and the growing awareness about the benefits of CPVC pipes and fittings over traditional materials.
The company expects the increased capacity to reduce India's reliance on CPVC imports and strengthen the country's foreign exchange reserves.
Epigral manufacturs raw materials like chlorine available within the plant itself.