Rigid PVC pipe making business

Overview

With the growing needs of the massive industries of India like that of construction, irrigation, building, agricultural the demand for rigid PVC pipes has been increasing because of the increase need for optimising the water supply.

What are PVC pipes? PVC stands for polyvinyl chloride which is used for the construction of the white pipes mainly used as an aid for plumbing and drainage and guiding the water supply. It’s market value stood at a solid $3159 million in 2013 owing to its chemical resistance, recyclability, low costs, durability and other properties.

The diversion in focus of the government on the development of the rural infrastructure and to push the potential urban industries to become self sufficient is made possible through the production of these rigid PVC pipes which only act a raw material in making that happen.

Thereby giving you more than just reasons to get your hands on this rigid PVC pipe making business and here’s how.

Market potential and uses

The market for these pipes is huge concentrated by the existing constructional and irrigation industry and also by the potential independent small-scale plants and factory units.

Moreover the properties of these pipes of being corrosion resistant, cost effective, flame resistant, easy to install, environmentally sound also contribute the seams it has created OMG the constructional and agricultural industries

The potential for these PVC pipes can be defined using these key market segments:

On the basis of type

• Chlorinated PVC pipe
• Unchlorinated PVC pipe
• Plasticised PVC pipe

On the basis of material

• PVC resin
• Plasticiser
• Stabiliser
• Lubricant
• Pigment base
• Others

On the basis of uses/ applications

• Irrigation
• Water supply
• Sewerage
• Plumbing
• Oil and gas
• HVAC ( heating, ventilating and air conditioning )
• · Others

Licenses required

The license required to run a rigid PVC pipe making business are:

• MSME registration
• GST registration
• Factory licence
• NOC by the state pollution control board
• PAN and Aadhar card details
• IEC and trademark certificate

Investment required

The investment required to set up a rigid PVC pipe making business is ₹13 lakhs-₹15 lakhs

Profits made

The rigid PVC pipe making business is likely to help you make a profit between ₹50000-₹70000 per month

Target consumers

The target consumers to your rigid PVC Pipe making business ( plastic ) are as follows:

Water industry: it used by these consumers for the processes of distribution of the drinking water through pipes and fittings, pipes for irrigation process, for managing or extracting the solid and wastes of sewage and drainages, as rainwater products such as gutter and downpipes etc

Cable and wire industry : pipes for protection of electrical cables mainly their inside the building of small diameter 25mm and large diameter for underground cable protection 50-100mm

Fittings industry: jointing is made easy because of the material of the PVC pipes specially in the fitting industry which are available as straight pipes, bends, branches, tees, reducers, clips and brackets etc

Industrial applications: PVC pipes are used for processing cooling water, transportation of hazardous chemicals keeping in mind the safety, environmental and economic factors in chemical based and manufacturing plants

Hazard management: it can be used in installation of fire sprinklers which are required at every possible commercial, household and industrial, museum, library spaces because of its lightweight and easy fabrication which makes it corrosion resistant

Area required

The area required to set up a rigid PVC pipe making business would be around 500sqft

Raw material required

The raw materials required for setting up a rigid PVC pipe making business would be:

• PVC resin
• Stabiliser
• Processes acids
• Lubricant
• Chloride
• Vinyl
• Colours
• Fillers

Machinery required

The machinery required for setting up a rigid PVC pipe making business would be:

• Cooling tank
• Different dyes
• Gravity leads
• High speed mixer
• Grinders
• recycle pumps
• Overhead tanks
• Scraper
• Rigid pipe extruder
• Screw extruder

Manpower required

The rigid PVC pipe making business involves a 5-step process of:

• Making compound resin
• Extrusion
• Sizing
• Traction
• Cutting

The manpower required for this business would be:

• 3-administrators
• 7-plant staff

Moreover ample trading to these employees in terms of machine usage, equipment handling and safety and precaution measures must also be provided with

Business model and growth

The business model and growth of the rigid PVC pipe making business can be defined using these 4 variants :

Value proposition: The value which a rigid pipe making business is likely to get to you is:

• Value in terms of massive and bulk sales because of growing constructional and infrastructural needs of the nation
• Value in terms of demand of the properties of PVC: corrosion resistant, flame resistant, affordable etc

Target consumers: The target consumers for your rigid PVC pipe making business are as follows:

• Water industry: drinking water, irrigation, sewer and drainage
• Fitting industry
• Construction industry
• Electrical industry
• Hazard management industry
• Healthcare industries: fire fighters etc
• Others: swimming pools, hotels, resorts etc

 Competitor review: The competition in this business arises from the quality of pipes you supply and the price at which you sell. Considering this few competitors in this industry are:

• Aashirvad pipes
• Finolex industries pvt ltd
• Supreme pipes
• Astral pipes
• Captain pipes

Marketing strategy: The marketing strategy that can be implemented by your rigid pipe making business could be:

• Advertising: Tv commercials, print media, billboards
• Sales promotion: trade and cash discounts etc
• Reputed ties ups with: L&T etc

Growth

The rigid PVC pipe making business has witnessed and has the potential for the following growth prospects:

• The increasing focus of government on rural water supply and irrigation development projects
• Moreover, this business has been expected to grow at a CAGR of 10.2% and its market value is expected to reach to $6224 million by 2024

Profit margin

The profit margin which a Rigid pipe making business is likely to yield is around 40-60%

Suggestions

Are you still thinking of reasons of whether or not to pipe down this rigid PVC pipe making business? We have some follow up reasons for you:

• Firstly, with the ongoing implementation of increased import duties an inspection because on the Chinese goods, the largest exporter of PVC pipes to India, the home demand for this product is likely to increase
• Secondly, the increasing development in areas of construction, infrastructures, economical and environmental water management has become a mission for many of the companies, which can be made possible through PVC pipes
• Lastly, the investment required in minimal and the target customer base is wide and growing because of the properties and numerous applications of PVC pipes