New manufacturing facility for PVC & UPVC pipes amongst growing demands

Ajay Pipes is set to establish and operate its new factory to manufacture PVC and UPVC pipes and fittings. The construction of a new factory for Ajay Pipes is expected to be completed by January 2023, and the factory, which will be located in Satara, Maharashtra, will have a built-up area of 100,000 square feet and an area of 4,11,000 square feet. The new factory will employ over 400 workers.

In India, old pipe networks cause up to 40% of water to be wasted during transmission. Today, the pipes and fittings industry is crucial to ensuring the ethical and safe use of water. Irrigation, sanitation, and building have seen an increase in demand for plastic pipes; these industries have emerged as major contributors to the market’s quick expansion in India.

The market conditions

The domestic plastic pipe market is expected to be worth Rs. 315 billion, with organized companies holding a 60% share of the market. Although the pandemic forced most industries to reassess how they conduct business, the building sector found itself with a rare chance to innovate and expand. Organized manufacturers have outpaced industry growth.

On the strength of expanding urbanisation, rising infrastructure development, and the government’s push for infrastructural growth, India is predicted to have substantial growth over the next few years. Between FY 2018 and FY 2026, the pipes and plastic fittings industry is anticipated to have a CAGR of 14%. Favourable legislative environments and citizen-focused efforts, such as the implementation of “Housing for All” programmes and the goal of increasing farmer income through improved infrastructure, are among the main drivers of the sector’s expansion. The identification of fresher uses for CPVC and the expansion of UPVC pipes into new markets have also turned out to be helpful accelerators.

Manufacturers have evolved into one-stop solution providers for plumbing applications as a result of the value-added goods and fittings they offer to channel partners, as well as the growth of their product catalogue.

Meeting the demand

The objective of the new factory by Ajay Pipes is to enable capacity expansion, new product development and cost efficiency. They have employed automated machines and the latest technology in the factory to meet these objectives.

The company hopes that by locating its factory near this area, it will be able to easily recruit and retain employees who are capable of handling the sophisticated technology that they require. Work on the project commenced on July 2022 and is expected to launch by January 2023.

The Way Forward

Residential consumers (UPVC, CPVC) and farmers (UPVC) are increasingly choosing better-quality pipes to reduce possible water wastage as awareness of the durability of plastic pipes, and BIS requirements grow. Due to features including accessibility, improved quality, and increased durability, PVC pipes are becoming much more popular. Ajay Pipes has improved its manufacturing facility to satisfy the demands of the growing agricultural, automotive, building and construction, electrical, and other end-use industries.