presentation- indian pipe industry

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Relating Extending Actualizing and Profiting

Indian Pipe Industry-An Outlook

PVC Pipes

Steel Pipes

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Special Insight- ‘PVC Pipes’

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Overview on Indian Pipe Industry

The Indian Pipe Industry is among the top three manufacturing hubs after Japan and Europe.

The penetration level of pipelines in oil & gas transportation is low at 32% in India as compared to 59% in USA and 79% globally. However lower penetration levels represent the huge scope for growth for the pipe industry.

The industry is highly Raw Material (RM) intensive with the RM cost accounting for more than 70% of the total cost for steel and PVC pipe companies.

These companies depend heavily on imports and hence many companies have integrated backward to reduce dependency on imports and price volatility.

Freight cost is another key cost component due to higher imports and exports. With the fall in commodity prices and Baltic Dry Index pipe companies will be benefited in the coming quarters.




Indian companies produce a wide range of steel, cement and PVC pipes which are used in various critical and non-critical applications.

With the low cost quality products and various certifications, Indian companies have augmented their export sales over the last three to four years.

A positive trend is expected in the Indian pipe industry to continue in the next 3-5 years on the back of high oil and gas discoveries worldwide, increased efforts by the Government of India (GoI) on infrastructure development for laying pipelines for oil & gas transport, replacement demand from US and European countries, water & sewage transport and irrigation facilities.




Key Findings

The GoI* increased the annual budget allocation under the Rajiv Gandhi Drinking Water Mission from Rs.65 bn to Rs.73 bn in the Union Budget 2008-09.

For the XIth Five Year Plan, the GoI is aiming to add 11 mn hectares of irrigational facilities, entailing an investment of Rs.1,580 bn.

The GoI in its efforts to reduce crude imports has formulated the New Exploration Licensing Policy for exploration and production of oil & gas. The GoI has awarded 165 blocks till date and the number is set to increase to 245 by 2008.

Private players like Reliance Industries Limited (RIL), Cairn etc have shown interest in setting up pipe infrastructure for oil & gas transport. National gas grid will also be set up requiring an investment of Rs.210 bn.

City gas pipe is currently available in 10 cities and the coverage is expected to grow to 100 cities in the next five years, entailing an investment of Rs.250-300 bn.

In addition to the above, the replacement demand from USA and European countries, having a vast pipeline infrastructure, will be huge.


* GoI: Government of India



Classification of Pipes

Types of Pipes

PVC Pipes

uPVC

RPVC

CPVC

PPR

HDPE

SWR

Hose

Composite

Casing pipes

Steel Pipes

Seamless & ERW

Galvanized Pipes

Carbon Steel Pipes

SAW

Drill Pipes

Corrugated Steel

Pipes




Plastic Pipe Overview

Pipes Full Form Features Applicatiouns

uPVC-ASTM* Unplasticized Poly Vinyl Chloride

Long Life, Light Weight, Non Corrosive, Leak Proof Joints, Cost Effective, Termite proof and UV resistant, Odourless and hygienic

Agriculture/Irrigation, Building Construction, Portable Water Supply

RPVC Rigid Poly Vinyl Chloride Strong & durable, Resistant to rust, UV radiation & most of the chemical actions

Portable water supply, Disposal of chemical effluent & waste Acid & slurries transportation, Salt water handling

CPVC Chlorinated Poly Vinyl Chloride Environmentally friendly, Provide long service life, Easy to install and handle, Corrosion resistant. Cost effective.

Hot and cold water distribution, chemical

PPR Polypropylene Pipe Excellent chemical resistance, resistant to sulfur-bearing compounds, lightweight, good tensile strength & saltwater resistance

Hot and cold water supplying pipes, Sanitary lines, Water purifying plants, Agriculture ,Radiator heating pipes, Under floor heating pipes

HDPE High Density Polyethylene. Suitable for Process Water, corrosion and abrasion resistant

Storm Sewers, Highway DrainageCulverts, Recharge Systems


*ASTM (American Society for Testing of Materials) standards.



Pipes Full Form Features ApplicationsSWR Soil, Waste & Rain Water Cost Effective, Light Weight, Minimum

transportation & installation costs areDrainage system, chemical plants, power plants drains, Sanitation purposes

Hose Strong and Durable Better Flow Characteristic Resistant to Chemical reaction, Bacterial growth, Corrosion, Rusting

Suction Pipes: Widely used with electrical mono block and oil or diesel engines.Garden Pipes: For water and oil distribution purpose in industrial, domestic and irrigation purpose

Composite Poly Ethylene Composite Pipes

Excellent Corrosion ResistanceLight Weight and StrongPermeation BarrierEase of Handling and InstallingClean and SafeCost EfficiencyHigh Chemical ResistanceLower ConductivityStrength Remains Same After BendingEasy DetectionLow Expansion and ContractionGood Flexibility

Extremely suitable for civil and industrial cold & hot water systems

Casing pipes

Strong and Durable Light weight Low Frictional Loss Resistant to Chemical reaction, Bacterial growth, Corrosion, Rusting Better Flow Characteristic Economical

Tube well and pump casingsDomestic wellsIndustrial wells & minesAgricultural: Irrigation wells




Plastic Industry- A review

India ranks 8th in the world in total plastic consumption.

Its gaining notable importance in different spheres of activity and the per capita consumption is increasing at a fast pace.

Continuous advancements in polymer technology, processing machineries, expertise, and cost effective manufacturing is fast replacing the typical materials in different segments with plastics.

Share of India's plastic products industry is about 0.5% of India's GDP.

The export of plastic products also yields about 1% of the country's exports.

The sector has a large presence of small scale companies in the industry, which account for more than 50% turnover of the industry and provides employment to an estimate of about 0.4 million people in the country.

Approximately Rs 100 billion are invested in the form of fixed assets in the plastic processing industry.




Top 10 trading partners for Indian plastic industry




Key Players

Key Players




*Statistics of Plastics Industries in India

Major Raw Material Producers 15 Nos

Processing Units 25,000 Nos.

Turnover (Processing Industry) Rs.85,000 Crores

Capital Asset (Polymer Industry) Rs.55,000 Crores

Raw Material Produced approx 5.3 MMT**

Raw Material Consumed approx 5.1 MMT

Employed Direct/Indirect 3.3 Million

Export Value approx US $ 1.90 Billion

Revenue to Government approx. Rs.7300 Crores

Current Status

By 2011-2012

Demand Potential 12.5 MMT

Additional Employment 4.0 Million

Investment Potential Rs.84,000 Crores

*Source :http://cipet.gov.in/plastics_statics.html **MMT: Million Metric Tonnes




VISION 2015 – Indian Plastics Industry

*Source:http://www.capitalmarket.com

*Role Plastics can play in Indian Economy

2005 2015

Consumption of Polymers @ 15% CAGR

4.7 Million Tonnes 18.9 Million tonnes

Turnover of plastics Industries Rs. 35,000 crores Rs.1,33,245 crores

Employment In Plastic Industry 2.5 Million 9.5 Million

Export of Plastic Products @ 30% CAGR

US$ 1900 Millions US $ 10215 Millions

Contribution of Polymers and Plastic Products to the Exchequer

Rs. 6200 Crores Rs. 15990 Crores



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Chemplast Sanmar’s Rs 600 cr PVC plant goes on stream



Supreme Industries (SIL), one of India’s largest plastic products makers, looks a good bet for long-term investors.

China renews PVC antidumping measures

Government's infra push lifts PVC pricesPVC has risen to Rs 36,500 per tonne from Rs 28,000 at the end of the last year. The price rise can be attributed to the demand inelasticity for PVC in the light of its widespread usage in water supply pipes across India.

Sectorial Synopsis

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