Gujarat (India): Indian Oil Corporation Limited (IOCL) has planned to set up PVC capacity in Vadodara, Gujarat, and in lieu of that, the Board of IOCL has given the approval to move forward with the plan. The news comes in the background of curtailing the import dependency of India on the overseas market for its PVC (Polyvinyl Chloride) demand. PVC has huge consumption potential where infrastructure, pipelines, and digital devices are a few of the major end-uses.

As per estimates, the total investment would be more than 4,000 crores (USD 483 Million) in setting up the plant in Gujarat.

As per the Ministry of Commerce (DGFT), India imported close to 1.67 million MT (under HS code 390410) during the financial year of 2021-2022, which makes India the largest importer of PVC in the world, closely followed by the USA and China.

According to ChemAnalyst, currently, India has a total estimated demand of 3.3 million MT by volume in 2022-23, and the demand is expected to reach 5.4 million MT by FY 2030, which implies that the import dependency of India may increase further in the coming years. Hence, the move to add more PVC capacity by IOCL could not have come at a more crucial stage.

The major end-use sector of PVC has been pipes and fittings, which comprised more than 65% of the total consumption by volume. India’s “Har Nal se Jal” scheme is expected to boost further the demand for PVC from the pipes and fittings sector in the coming years.

India also exported more than 21,000 MT of PVC in FY 2021-2022.

Furthermore, IOCL ‘s plan also includes additional capacities of Polypropylene and Lube Oil Base Stock (LOBS) at its Vadodara site in Gujarat.