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Sector Analysis on Plastic Pipes

Latest trend is finding an innovative way

for using Plastic Pipes

Mohit Ghai

BITS PILANI
An Initiative of “The Money Roller“ Friday, 24th July 2015

Sunday, March 29,

2015
THE MONEY ROLLER
ABSTRACT
The Plastics Industry in India has made significant development since its inception in 1957 by
producing Polystyrene .The chronology polymer manufacture in India is as under:-

 1957 – Polystyrene
 1959 – Low Density Poly ethylene (LDPE)
 1961– Poly Vinyl Chloride (PVC)
 1968 – High Density Poly Ethylene (HDPE)
 1978 – Polypropylene

The Indian plastic pipes market is growing at a healthy rate due to tremendous government
spending on commercial, agricultural, residential and sanitation, potable water, mining purpose,
municipal applications, Industrial Applications like transportation of chemicals, oil and gas
distribution, heavy electric wires, solar power. The durability of these pipes along with the various
applications makes it the preferred option over conventional pipes. Furthermore, the construction
sector and the agricultural sector are expected to boost demand for these pipes in the future.
It provides an insight into India’s position in the global market with regards to lower per capita
consumption creating strong opportunity in the domestic market. It also indicates the growing
usage of PVC for making plastic pipes. The market overview section estimates the market size of
the Indian plastic pipe market and also provides the growth rate. Segmented share of plastic pipes
in the total pipes market is highlighted. Porter’s analysis helps understand the dynamics in the
plastic pipes market in India.

Drivers identified include growing demand of the plastic pipes due to tremendous investment by
the government on infrastructure. Furthermore, growth in real estate also adds to the demand. It
has also been found that agricultural sector uses plastic pipes in a big way for all their agricultural
needs. The subsidies and investments doled out by the government should bolster the demand of
plastic pipes. The beneficial properties of plastic boosts the demand for plastic pipes compared to
other types of pipes which also gives rise to replacement demand. One of the challenges the plastic
pipe market is facing is the increasing trend of crude oil prices which squeezes the profit margin
of the manufacturers. The increase in price cannot be passed on to the customer due to tremendous
competition. As a result, low profit margins poses as a challenge to the organized sector. The
primary trends in the plastic pipes market include popularity of CPVC pipes as they have many
beneficial properties and find higher application in both industrial and household uses. Since
domestic demand is always very high, India has to import plastic pipes from other countries. In
addition, many players are increasing their plastic pipes production capacity to meet demand.
Contents
INTRODUCTION .......................................................................................................................... 4
TYPES OF PLASTIC PIPES APPLICATION .............................................................................. 6
MARKET SIZE OF PLASTIC PIPES AS PER APPLICATION .................................................. 7
Indian Scenario (2014) ................................................................................................................ 8
Global Scenario (2014) ............................................................................................................... 8
Product wise break up of plastic products exports in 2013-2014 ............................................... 9
INDUSTRY ANALYSIS WITH PORTER’S 5 FORCES MODEL ............................................ 10
BARGAINING POWER OF SUPPLIERS .............................................................................. 10
BARGAINING POWER OF BUYERS ................................................................................... 10
INTERNAL RIVALRY ............................................................................................................ 10
ENTRY ..................................................................................................................................... 11
THREAT OF SUBSTITUTES ................................................................................................. 11
GROWTH DRIVERS OF PLASTIC PIPES INDUSTRY ........................................................... 12
PLASTIC PIPES GROWTH IN INDIA IN LAST THREE YEARS AND FORTHCOMING
YEARS ......................................................................................................................................... 14
LIST OF PLAYERS INDIA (LISTED AND UNLISTED) ......................................................... 15
PLASTIC PIPES: GLOBAL DEMAND (TOTAL 7.5 BN METERS) ........................................ 16
SWOT ANALYSIS ...................................................................................................................... 17
COMPANY OVERVIEW ............................................................................................................ 22
Awards/ Recognition ................................................................................................................ 22
COMPANY”S HISTORY ............................................................................................................ 23
PRODUCTS OFFERED ............................................................................................................... 24
EQUITY PERFORMANCE OVER LAST 5 YEARS ................................................................. 24
FINANCIAL EVALUATION ...................................................................................................... 25
CONCLUSION ............................................................................................................................. 26
INTRODUCTION
Plastic pipe delivers exceptional value, unwavering reliability and remarkable advantages over
conventional types of piping. It's today's right choice for water service, drainage, fuel gas, conduit
and plumbing & heating.
Due to the advanced technology with superior customer service it has change the whole industry
and created the industry's most sophisticated and diverse products.
Plastic pipe industry is going to be one of the important sector where it will be the growing like
other sectors, continuing to steadily take share from competing materials in a range of markets.
Due to heavy investment in the infrastructure, demand of plastic pipe is going to be too high.
Polyvinyl chloride (PVC) will remain the leading resin used in plastic pipe through 2015, due to
its dominant position in small-diameter applications such as potable water distribution, sanitary
sewer and agricultural markets. While PVC pipe demand declined considerably during the 2005-
2010 period, the expected recovery in building construction activity will fuel strong gains through
2015. High density polyethylene (HDPE) pipe, however, has the best long-term growth prospects
among major plastic pipe resins. HDPE will continue to gain ground on concrete, steel, PVC and
other competing pipe materials.
The Indian plastic pipes market is growing at a healthy rate due to tremendous government
spending on commercial, agricultural, residential and sanitation, potable water, mining purpose,
municipal applications, Industrial Applications like transportation of chemicals, oil and gas
distribution, heavy electric wires, solar power. The durability of these pipes along with the various
applications makes it the preferred option over conventional pipes. Furthermore, the construction
sector and the agricultural sector are expected to boost demand for these pipes in the future.

It provides an insight into India’s position in the global market with regards to lower per capita
consumption creating strong opportunity in the domestic market. It also indicates the growing
usage of PVC for making plastic pipes. The market overview section estimates the market size of
the Indian plastic pipe market and also provides the growth rate. Segmented share of plastic pipes
in the total pipes market is highlighted. Porter’s analysis helps understand the dynamics in the
plastic pipes market in India.
Drivers identified include growing demand of the plastic pipes due to tremendous investment by
the government on infrastructure. Furthermore, growth in real estate also adds to the demand. It
has also been found that agricultural sector uses plastic pipes in a big way for all their agricultural
needs. The subsidies and investments doled out by the government should bolster the demand of
plastic pipes. The beneficial properties of plastic boosts the demand for plastic pipes compared to
other types of pipes which also gives rise to replacement demand. One of the challenges the plastic
pipe market is facing is the increasing trend of crude oil prices which squeezes the profit margin
of the manufacturers. The increase in price cannot be passed on to the customer due to tremendous
competition. As a result, low profit margins poses as a challenge to the organized sector. The
primary trends in the plastic pipes market include popularity of CPVC pipes as they have many
beneficial properties and find higher application in both industrial and household uses. Since
domestic demand is always very high, India has to import plastic pipes from other countries. In
addition, many players are increasing their plastic pipes production capacity to meet demand.
TYPES OF PLASTIC PIPES APPLICATION
We can majorly categorize application of plastic pipes into four parts:

 Plastic Pipes that are used for commercial, agricultural, residential and sanitation. In short
these pipes manage storm water. For these purposes we use PVC pipes.
 Plastic Pipes that are used for potable water, mining purpose, municipal applications like
waste water, sewer and for Industrial Applications like transportation of chemicals, etc. For
these purposes we use PVC pipes.
 Plastic Pipes uses for oil and gas distribution. For these purposes we use HDPE conduits.
 Plastic Pipes used for covering heavy electric wires, solar power, etc. For these purposes
we use PVC and HDPE conduits.
Note: In the following report we are using PVC and HDPE pipes instead of individual application.
Please refer this section for getting information regarding individual application.
MARKET SIZE OF PLASTIC PIPES AS PER APPLICATION
We can calculate the market size by calculating number of individuals who are potential buyers
and/or sellers of plastic pipes.

 Estimated mean service lifetime of plastics products (Pipes and Conduits) in India is 35
years.
 If we see the consumption of Plastic pipes raised to 2 MMT by 2012 due to massive
infrastructure development in the country during 2004 to 2012.
 2014, Plastic Pipes consumption in India is about 2.3 MMT against domestic production
capacity of 1.3 MMT.

Plastic industry have already marked the history and also it will definitely have a bigger role to
play particularly because of its wide utilization areas and diverse applicability. Since
independence, plastic industry in India have been playing a predominant role in shaping our lives.
As it an indispensable item in our day to day activity, so its importance cannot be undermined.
Since last decade with the advent of new and improved technologies, the industry has gained
greater importance with the production of better and improved quality of polymers.
Indian Scenario (2014)

Consumption(%)

5% 3%1%3%
4%
6%

9%

69%

Pipes Calendering Fittings W&C Films Profiles Sheets Others

Global Scenario (2014)

2% 3%
17% 8%
8%

19%

43%

Bottles Floorings Others Wire&Cables Pipes&Fittings Profiles Films&Sheets

Industry experts hold unwavering view that growth of the industry will be in double digits (CAGR
15%) with the investment in the irrigation sector. Piping Industry of India is approximately INR
215 billion consisting
Irrigation: INR 33 billion, PVC Pipes: INR 165 billion, HDPE: INR 15 billion PPR etc: INR 2
billion.

Market Size(2014)
180
160
165
140
120
100
80
60
40
20 33
15 2
0
Irrigation PVC Pipes HDPE PPR
Amount(INR bn)

India has irrigation potential of 140 million hectares. Out of this, only 40 per cent is under irrigation
hence there is huge potential for PVC pipes.

Product wise break up of plastic products exports in 2013-2014

8% 8%
6% 10%
6%

4%
12%
17%

29%

Woven Packaging Items Other Moulded Items

Film,Sheets&plates Others Pipes,Tubes&Fittings
Housewares Writing Instruments Optical Items
INDUSTRY ANALYSIS WITH PORTER’S 5 FORCES MODEL
Market is oligopoly in nature. Market shows significant growth of plastics pipes globally through
the massive investment in diverse industries like commercial, agricultural, sanitation and
residential. Amongst the individual Plastics Materials PVC accounted for 16.5% of the total
consumption.

BARGAINING POWER OF SUPPLIERS

If we see the bargaining of supplier is very high due to oligopoly market structure. There are many
factors which increases the supplier power like availability of only few suppliers, availability of
only many buyers, heavy cost incurred in switching suppliers. Supplier’s power is highly
reinforced when they have highly control over the prices. Due to the wide applicability nature of
plastic pipes in a variety of spheres, there is a great variety in demand also. To cater to this diverse
demands, there are some firms focusing on producing a single product with features making it
suitable for only a specific usage. Also there are some firms producing a product with wide
application areas. Last but not the least, there are also firms that are producing two or more related
products that serves as raw material to produce a finished product in another firm. The Indian
plastic industry is essentially an oligopolistic market. As regards to switching costs, the figures are
high for switching polymer manufacturers because of their small no but low in case of switching
equipment manufacturers due to the presence of small manufacturers in large numbers.

1. Number of Suppliers: The market is consolidated. The market contains few players in
plastic pipes relative to its size.
2. Availability of Substitutes: Products are standardized. Also market is continuously trying
to find the alternate of pipes like PVC, HDPE, etc.
3. High standardization leads to low level of price competition in the marketplace
4. Switching costs amongst suppliers is high

BARGAINING POWER OF BUYERS

Due to the wide applicability of plastic in every industry, it is evident that buyers in this industry
are huge and they range from small to big sized firms. The end user industries for plastic pipes are
Agriculture, Infrastructure, etc. Each of these is again a vast sector encompassing several areas
requiring plastic usage. In this case, buyer’s power is largely determined by firm size and its scale
of operation. Because if a firm is producing a standardized product, in that case it’s definitely
operating in volume so that per unit cost is low. In that sense, it can be said that Agriculture,
Infrastructure have low bargaining power.

1. Buyers are extremely concentrated with high collective buying power

2. Producers are free to set prices as they see fit. Piping industry is in emerging stage and in
coming years it is going to take a drastic change and as industry segment where pipes are
used is too diverse so manufacturers are free to set and change prices.

INTERNAL RIVALRY
Since a large number of plastic producers are lying in the small or medium scale range of
industries, hence internal rivalry is very high. Though it’s also a fact that there are wide variety of
plastic pipes that are produced, each one with a different feature and hence different application
oriented, still the variety is not sufficient to wipe out the competition and enable each producer to
cater to single variety having a single consumer. Though the industry is not stagnant but due to the
presence of large no of small players it becomes mandatory for bigger ones to steal business from
their smaller counter parts in order that the bigger ones wants to expand their output. Also due to
the divergent nature in the scale of operation, firms have different cost structures. Due to the
diverse nature of the industry itself, it often becomes difficult to match prices posed by small
players since they generally specializes on a particular variety, so they can adjust their prices
quickly and often lead to price wars in the industry and the big ones takes time due to their focus
on relatively greater variety.

1. India remains low to medium by the concentrated and standardized marketplace.

2. Solid industry concentration amongst leading firms.
3. Few numbers of players.
4. High levels of product differentiation meaning any new product cannot be easily copied or
updated by another. Specialized products do have proprietary methods for production or
features that separate one from another.

ENTRY
As the number of entrants grew in an industry the net market demand gets distributed among them
resulting in the eroding away of profits of the existing players in the concerned market. Due to the
fragmented nature of the plastic industry, sometimes new entrant faces difficulty in case that it
does not achieve a substantial market share to reach the minimum efficient scale, it usually stands
at a cost disadvantage. Due to the unorganized nature of the industry, many players will want to
enter the industry to enjoy the established market and reap advantages of economies of scope.
Another challenge foe a new entrant is the experience curve effect due to which existing players
enjoys significant cost advantage but the new entrant stands at a cost disadvantage.
Thus only big firms can enter this kind of market having sufficient capital at hand. As for the
existing small firms therefore the threat is high and might prove damaging to a large extent.

1. It’s difficult for a new entrant to penetrate into this market. It needs huge investment to set
up an organized sector.
2. Particular specifications.
3. Technical/proprietary knowledge needed is moderate to medium.
4. Economies of scale needed for competitiveness is medium

THREAT OF SUBSTITUTES
Substitution is driven by two factors: costs, and material properties.
Substitutes greatly disturbed the existing market. As Plastic Pipes industry has been growing since
independence substitutes is also growing. Heavily investment is in R&D for finding the optimum
substitutes to replace plastic pipes. For instance fiberglass.
GROWTH DRIVERS OF PLASTIC PIPES INDUSTRY
Industry is expected grow for the next decade mainly because of demand in agriculture pipes,
plumbing pipes and industrial pipes and change in the government. Prime Minister Narendra Modi
believes in creation of Infrastructure which needs different kind of pipes. Besides he has
announced that every Indian should be have a house by next decade which will create huge demand
of pipes for plumbing, sewerage, rain water etc.

Some key highlights of the budget 2015-2016 which greatly affects the growth of Plastic Pipe
Industry:
 Housing for all - 2 cr. houses in Urban areas and 4 cr. houses in Rural areas.
 Electrification of the remaining 20,000 villages including off-grid Solar Power- by 2020.
 To strengthen rural economy - increase irrigated area, improve the efficiency of existing
irrigation systems, and ensure value addition and reasonable price for farm produce.
 To meet these challenges public sector needs to step in to catalyze investment, “Make in
India” programme to create jobs in manufacturing, continue support to programs with
important national priorities such as agriculture, education, health, MGNREGA, rural
infrastructure including roads.
 ‘Paramparagat Krishi Vikas Yojana’ to be fully supported.
 ‘Pradhanmantri Gram Sinchai Yojana’ to provide ‘Per Drop More Crop’.
 INR 5,300 crore to support micro-irrigation, watershed development and the ‘Pradhan
Mantri Krishi Sinchai Yojana’. States urged to chip in.
 Target of INR 8.5 lakh crore of agricultural credit during the year 2015-16.
 5 new Ultra Mega Power Projects, each of 4000 MW, in the Plug-and-Play mode
 Target of renewable energy capacity revised to 175000 MW till 2022, comprising 100000
MW Solar, 60000 MW Wind, 10000 MW Biomass and 5000 MW Small Hydro.
 Reduction in basic customs duty on Ethylene dichloride, vinyl chloride monomer and
styrene monomer from 2.5% to 2%. This will reduce the import price of these products
which is largely used in manufacturing of PVC. Such lower input costs would benefit the
manufacturers of PVC such as Reliance Industries, Finolex, Chemplast Sanmar, DCW
Limited, Supreme Industries, BASF, LG Polymers etc.
 Reduction in basic customs duty on HDPE pipes for use in the manufacture of
telecommunication grade optical fiber cables from 7.5% to Nil. This will benefit the oil
and gas industry and in turn the demand for HDPE pipes will go up.

Other Measures like:

 Like “Saurashtra Narmada Avataran Irrgiation yojana” has been launched to divert
excess over flowing flood water if narmada allocated to saurashtra region.This excess water
will distributed to 115 reservoirs of seven districts of saurashtra through total 1115 km
long pipelines.
 Signed a Memorandum of Understanding (MoU) with Government of Andhra Pradesh
(GoAP) in Hyderabad for developing 1000 MW solar power project(s) in Andhra Pradesh.
 Implementation of Govt. projects as per schedule Foreign funded infrastructure projects.
  Countering the traditional material pipes. Stringent specifications to ensure quality
products.

Rural water management, which is one of the top priorities of this government, will be the key
demand driver for the industry along with expansion of housing sector and increasing demand for
oil and gas transportation. Around, 52% of the irrigation land is still rain fed. The launch of
”HarKhetKoPaani” & “Swach Bharat Abhiyan” initiatives will drive the growth further.
Infrastructure development, urbanization and the subsequent development of industrial
construction are also facilitating the growth of the pipe industry in India. Industry has been seeing
a very strong demand mainly from new construction in metro cities and last five years from the
Tier II and Tier III cities. Besides new construction demand, there is a huge demand for
replacement of metal pipes to plastic pipes mainly due to the corrosion, rusting, scaling etc.
Also, Indian piping market is still unorganized to the tune of 40 per cent to 50 per cent but with
growth of GDP and Per Capita Income – it will ultimately move to organized players. In last few
years, customers are moving from unbranded to branded quality pipes which are the key reasons
for growth of organized players.
PLASTIC PIPES GROWTH IN INDIA IN LAST THREE YEARS AND
FORTHCOMING YEARS
% Annual Growth

Item 2002-2007 2007-2012

Plastic Pipe Demand 4.9 4.6
North America 3.1 2.4
Western Europe 2.0 2.2
Asia/Pacific 7.6 7.4
Other Regions 7.1 5.7

Using Time Series forecasting method (Moving Average) we can predict for 2012-2017 :

% Annual Growth
Item 2012-2017
Plastic Pipe Demand 4.75
North America 2.75
Western Europe 2.1
Asia/Pacific 7.5
Other Regions 6.4

Plastics industry is one of the fastest growing industries in India. It has expanded at 8% CAGR
over the last five years to reach 8.5 Million TPA (million tonnes per annum) in FY13 from 6
MnTPA in FY08.

Plastic Pipes Consumption in India

(Estimated - KTPA)
3000

2500

2000

1500

1000

500

0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
LIST OF PLAYERS INDIA (LISTED AND UNLISTED)
 There are total 1431 players in Plastic pipes and PVC sector, only 4 are leading ones among
14 key ones.
Listed Unlisted
1. Supreme Ind Neeta Enterprises
2. Finolex Industries Limited Inseal International Pvt. Ltd.
3. Astral Poly Tec Aesteiron Steels Private Limited
4. Axel Polymers Digital Utilities
5. ChemPlast Sanmar Ltd Hiren Industrial Corporation
6. Responsive Ind Roechling Engineering Plastics (India) Pvt. Ltd
7. Nilkamal Pioneer Industries
8. Wimplast Dakle Industrial Plastics
9. PlastiBends Brass Copper & Alloy India Limited
10. Kalpena Ind
11. Jain Irrigation
PLASTIC PIPES: GLOBAL DEMAND (TOTAL 7.5 BN METERS)

Coverage

6%
7%

45% 21%

21%

Central / South America Africa/Mideast North America Europe Asia pacific

As we can see that Budget 2015 is heavily impacting the plastic pipes industry. We are estimating
that demand of plastic pipes is going to climb 8.5% annually through 2017 reaching 11.7 billion.
Our study also shows that advances will come primarily due to increase in infrastructure
development. Due to cost and efficiency another important trend shows plastic pipe gaining market
share as it continues to replace other materials, such as copper, concrete, and steel, due to its low
cost, installation ease, and performance advantages.

Global demand for water pipe is forecast to increase 7.5 percent per year through 2017 to 10.9
billion meters. China alone will account for one-third of the increase, with other industrializing
countries in Asia -- such as India and Indonesia -- and in the Africa/Mideast region also driving
demand. Plastic pipe will be the fastest growing type.
SWOT ANALYSIS

STRENGTHS
 Micro, Small and Medium Enterprises are orienting themselves gradually towards export.
 Continuously evolution of new companies with the help of foreign capital that can compete
successfully on third markets.
 Emerging market is connecting to future investments in industries that need plastic Pipes
(building, transmission and service, sewer and drainage, irrigation).

WEAKNESSES

 Most equipment is physically and morally obsolete, which limits the capacity of the sector
to apply new technologies and to obtain high technical products in conditions of
productivity and low costs
 The former great state enterprises have been privatized and are still receiving limited
financing for investments. Most of the equipment is old, with medium productivity and
quality performance. Only some companies invested in new equipment with competitive
performance.
 The polymer price fluctuation is strongly connected to the price of crude oil.
 Low preoccupation for regaining past active traditional markets
 High production costs in companies created from the former great state enterprises with
too much personnel, partially used production capacity, reduced productivity, high energy
consumption, and others.
 Insufficient marketing on foreign markets
 Incurred Very high production costs

OPPORTUNITIES
 Plastic Pipes is a versatile material for piping and has replaced conventional pipes made
from conventional materials such as Galvanized Iron (GI), Cast Iron, Asbestos Cement and
Concrete Cement.
 Its compatibility with most fluids, lower cost of material handling and installation, unique
combination of properties and availability of highly reliable jointing system makes it an
excellent competitor in the piping world.
 Particularly PVC Pipes low cost, versatility, unique set of properties and performance
makes it the material of choice for dozens of industries such as Oil/gas, transmission, and
construction.
 Increase of investments through national capital participation and by attracting foreign.
Companies to set up new companies in the country, or to cooperate with existing
companies.
 Development of company activities in management, marketing, quality, research and
branding.
 Orienting SMEs to accept contracts for complex products manufacturing meant for large
and multinational companies.
 Important investments projects in infrastructure development.
 Increase in domestic market demand of products for constructions and Oil/gas industry.
 Increased price due to large indirect costs.
 Cooperating with large companies that need plastics.
THREATS
 The increase in price cannot be passed on to the customer due to the tremendous
competition. As a low profit margin possess a challenge to the organized sector.
 The polymer price fluctuation is strongly connected to the price of Oil and gas industry.
 Need high amount of investment as well as lots of rules and regulations constraints
available in India.
 Cost of Capital is high as market economy is also growing heavily.
 Insufficient foreign investment in the sector.
 Need to import some types of raw materials necessary to manufacture products needed for
export. Due to heavy import of raw materials cost will increase and it’s difficult for SMEs
to survive and compete in the market.
 Low interest in branding.

There is always so much difference in the prices of organized and unorganized sector due to
standardization. As we see the PVC and CPVC plastic pipes are dominating in the market. These
pipes are in the top position in respective consumption. Also demand is huge in the present market
and our study shows that CPVC pipes will register fastest growth in terms of production capacity
in the next five years from financial year 2014 to financial 2019. According to the given data we
can say CPVC pipes is available at very nominal charge and if we talk about the properties of this
plastic pipe it is going to highly available and highly preferred by the consumers in the coming
years as compare to the PVC pipes in the respective segments.

CPVC piping will not fail prematurely due to corrosion, electrolysis, or scale build-up in areas
where water, soil, and/or atmospheric conditions are aggressive. About 70 percent of Indian plastic
pipes products manufactured are in unorganized sector. At the same time organized sector is also
picking up at a rapid pace and this according to us will be the biggest advantage to your Company
because of the continuous efforts putting by the company.
On the basis of given data in above table we can infer that there is always lot much difference
remain of the organized segment of the market over the unorganized market and it is predicted to
grow at a faster rate in the coming years with shifting preferences towards branded and quality
products being witnessed in the domestic market.

 According to key trends in the

market there are three CPVC Plastic Pipes Consumption
parameters which heavily (Million Tonnes)
affecting the market 40
 Capacity Expansion
30
 Import of PVC Pipes
 Popularity of CPVC pipes. 20

10

0
2014 2016 2018 2020
Million Tonnes
The rising demand for plastics in the Gulf Cooperation Council (GCC) and market is expanding
heavily and also increase in product diversification are encouraging theregional manufacturing
industry to ramp up their production capacity. This increasing the demand which results heavy
export of the plastic pipes results in economy growth.
Therefore, demand for plastics is rapidly increasing and soon India will emerge as one of the fastest
growing markets in the world. The next two decades are expected to offer unprecedented
opportunities for the plastic industry in India. This would necessitate industry initiatives to foster
investments, grow the market, upgrade quality standards, enhance global participation, encourage
Indian industry, to adopt and adapt to world class technology and manufacturing practices.

Sewer Ringfit Pipes and Sewer Selfit Pipes

Sewer Ringfit Pipes Sewer Selfit Pipes

One end of the pipe is plain and other end One end of the pipe is plain and the other
is self-socketed with an integral groove to end is self-socketed on sophisticated
hold the rubber gasket. automatic machines for high degree of
accurate dimension.
The use of these pipes is going to increase because if we see the usage of these pipes we can easily
infer about the market outlook of these pipes. Some of the usage of these pipes are as

Domestic Use – Drainage system for home, offices, hotels, residential & commercial complexes,
hospitals and Sanitation purposes.

Industrial – In Industries, chemical plant, power plants drain as chemical waste lines & overflow
Lines.

Other – Drainage system for public places such as airports, railway Stations, bus stands, hospitals
and theaters. In main vent lines in drainage schemes. Water harvesting systems.

If we talk about the investment in these sectors we can easily see the growth of these pipes.

% OF GDP

FY20 12.1

FY15 8.9
% OF GDP
FY10 6.4

FY05 4.3

0 2 4 6 8 10 12 14
We can infer from this figure that demand for plastics is rapidly increasing and soon India will
emerge as one of the fastest growing markets in the world. The next two decades are expected to
offer unprecedented opportunities for the plastic industry in India.
COMPANY OVERVIEW
Discover the world of superior designs and the marvel of engineering that keeps your home
seamlessly connected inside out.

Astral pipes bring to you the evolved form of crafting homes with the most reliable and state-of-
art pipes and plumbing systems.

With a drive to encompass purity, safety, reliability, flexibility in modern architecture, within 13
years Astral Pipes has more than 350 distributors and thousands of dealers in India penetrating the
plumbing market from metro cities to smaller towns.

Astral pipes are now also available in neighbouring countries like Nepal, Bhutan, Bangladesh and
Sri Lanka. Come be a part of our swift growing network

Astral Pipes specializes in manufacturing the best quality plumbing & drainage systems for both
residential and commercial applications, CPVC piping systems for industrial applications, column
and pressure piping system for agriculture applications and also conduit pipes for residential and
commercial applications.

Equipped with state-of-art production facilities, Astral pipes embraces latest international
technology and provides solutions made for the Indian markets.

Astral Pipes delivers consistent quality effortlessly with its robust facilities present in Ahmedabad
and Dholka (Gujarat), Baddi (Himachal Pradesh) and Hosur (Tamil Nadu) to manufacture
plumbing systems and drainage systems.

Astral pipes has its production facilities at Gujarat and Himachal Pradesh to manufacture plumbing
systems from ½" to 8" diameter. Astral pipes products include CPVC pipes and fittings for hot and
cold water plumbing systems, CPVC industrial piping system for transportation of hazardous and
highly corrosive chemicals, lead free PVC systems for cold water application.

Awards/ Recognition
 In 2012 Astral Poly Technik bagged Power Brands Rising Stars India 2012 Award.
 It was recognized with Rising Power brands of India in 2012.
 For the year 2013 it has been recognized as the Indian Power brand.
 Mr.Sandeep Engineer, Managing Director of the Company has been awarded
'PowerBrands Leadership Enterprising Entrepreneur 2012 Award'.
 AMA (Ahmedabad Management Association) has conferred Mr. Sandeep Engineer as the
Outstanding Entrepreneur Award for the year 2012–13.
COMPANY”S HISTORY
Astral Poly Technik was established in the year 1999. It started its commercial production of
CPVC pipes and fittings at santej–15 Km from Ahmadabad.

Astral Poly Technik Limited is the first licensee of Lubrizol of USA (formerly known as BF
Goodrich a fortune 500 company) and has equity joint venture with Specialty Process LLC of USA
(manufacturing CPVC plumbing system since 25 years) to manufacture and market the most
advanced CPVC plumbing system for the first time in India.

Astral today manufactures CPVC plumbing systems for both residential and industrial
applications, and also ASTM solvent weld lead free PVC plumbing system.

It is equipped with state of art production facilities at Ahmadabad and Himachal Pradesh to
manufacture plumbing systems from ½ to 8 with all kinds of necessary fittings.

The company’s tie up with Specialty Process LLC of USA to incorporate latest technology and
quality control programs which are widely accepted at global level and to develop CPVC plumbing
systems as per Indian plumbing market.

The company has clients from various industries such as Hospitality which include companies
such as Krishna Heart Hospital Unity Hospital, Gokulam Medical Research ; Hotel & Restaurant
such as The Oberoi , Imperial , Hotel Claridges, Hotel Abbott; Government organizations such as
Canadian Embassy New Delhi, Embassy Of France New Delhi ,American Embassy New Delhi,
British High Commission New Delhi ; Technology parks such as Infocity – Ghandhinagar and
Silicon County – Hyderabad Resorts & clubs such as Nanu Resorts (Goa),Construction such as
Hiranandani construction,G.L Raheja group.
PRODUCTS OFFERED
 Astral FlowGuard CPVC
 Astral Corzan Aquarius
 Astral Aquarius
 Astral Underground
 Astral Aquatek
 Astral Blazemaster
 Astral Ultradrain
 Astral Flowguard bendable

EQUITY PERFORMANCE OVER LAST 5 YEARS

600

500 466.05 447.85

400 364.45

300

194.5
200
133.9
100

0
2011 2012 2013 2014 2015

Price Linear (Price)

FINANCIAL EVALUATION
Company has maintained healthy, cordial and harmonious industrial relations at all levels. The
enthusiasm and unstinted efforts of the employees have enabled company to remain at the forefront
of the industry. Directors place on record their sincere appreciation for significant contributions
made by the employees through their dedication, hard work and commitment towards the success
and growth of company. Directors take this opportunity to place on record their sense of gratitude
to the Banks, Financial Institutions, Central and State Government Departments, their Local
Authorities and other agencies working with the Company for their guidance and support.

INR in Cr. INR in Cr.

8000 350
7000 300
6000
250
5000
200
4000
150
3000
100
2000
1000 50

0 0
2013 2014 2015 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* 2024* 2025*

Revenue (Cr.) PAT (Cr.)

*Forecasted Revenue and PAT

INR in Cr. Growth Rate %

800 45

700 40

600 35
30
500
25
400
20
300
15
200 10
100 5
0 0
2013 2014 2015 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* 2024* 2025*

EBITDA Growth Rate

CONCLUSION
Infrastructure spending has begun to rebound from the financial crisis and is expected to grow
significantly over the coming decade. Therefore we can anticipate that market demand is going to
be heavily increase and it helps both the organized sector and unorganized sector available in the
market. This results heavy spending in managing the drainage system which shows growth of
sewer pipes.