8 months ago
Plastic Pipe Makers Face Challenges Amid Weak Demand
Plastic pipe companies in India are having a tough time.
They were expecting new rules to stop cheap, low-quality plastic from other countries, but those rules didn't come.
Now, there's a lot of cheap plastic coming in, especially from China, which is hurting the local companies.
The price of the plastic they use is also going down, which could mean they lose money.
Some big companies like Supreme and Astral are doing better than others, but everyone is worried about how the low prices will affect their profits.
They hope things will get better in the second half of the year, but it's still uncertain.
Plastic pipe makers in India face challenges due to weak demand and policy delays on anti-dumping duty (ADD) and BIS rules.
Cheaper imports, particularly from China, are eroding the market share of domestic players.
PVC prices have dropped significantly, with a further 2-3% decline expected due to continued dumping.
Larger players like Supreme Industries and Astral are better positioned to weather the storm, while others like Apollo Pipes and Prince Pipes may face more pressure.
Management commentaries point to stronger volumes in H2FY26, but this optimism is partly contingent on the imposition of ADD.
- Who
- Listed plastic pipe makers in India
- What
- Challenges due to weak demand, policy delays, and cheap imports
- Where
- India
- When
- Current situation, with expectations for H2FY26
- Why
- Absence of anti-dumping duty (ADD) and BIS rules, leading to increased imports and price pressure
Key facts
- PVC Price
- $630/metric tonne
- Expected PVC Price Decline
- 2-3%
- Supreme Industries Volume Growth
- 17% (Q2FY26)
- Astral Volume Growth
- 20% (Q2FY26)
- Prince Pipes Volume Growth Guidance
- High single-digit (FY26)
- Supreme's Pipe Volume Growth Guidance
- 15-17% (FY26)
- Astral's Pipe Volume Growth Guidance
- Double-digit (FY26)
- Astral's Pipe Margin Guidance
- 16-18% (FY26)
Quotes
Meet Jain
Analyst at Motilal Oswal Financial Services
“Heavy imports and low domestic demand led to PVC prices dropping significantly over the last few quarters. With no ADD or BIS enforcement, PVC prices (now at $630/metric tonne) have already declined 5% since then, further maximum fall of another 2-3% can be expected, led by continued dumping.”
livemint.com
Nuvama Research report
Research report by Nuvama Research
“We reckon the least earnings per share cuts for Astral and Finolex Industries followed by Supreme (for FY26/FY27/FY28), whereas Apollo Pipes Ltd and Prince Pipes and Fitting Ltd are likely to face more pressure given recent capacity additions would drag profits as they struggle to compete against the price war by Supreme and Astral.”
livemint.com
