Gautam Adani to Build 1 Million Tonne PVC Plant in Gujarat, Challenging Reliance

Adani to Launch PVC Plant in Gujarat to Compete with Reliance by 2028

Billionaire Gautam Adani’s company is all set to shape a 1 million tonne-per-year PVC plant at Mundra, Gujarat, designing its entrance into the petrochemicals segment, where Reliance Industries Ltd presently leads. PVC (Polyvinyl Chloride) is an adaptable plastic utilized in goods ranging from pipes and window borders to flooring, toys, and credit cards. India’s yearly demand for PVC is approximately 4 million tonnes, while the national production volume is around 1.59 million tonnes, with Reliance office for nearly half. The PVC sector is anticipated to develop at a CAGR of 8-10%, influenced by demand from segments such as packaging, agriculture, infrastructure, and housing.

Adani Enterprises Ltd, the leading company of the Adani Group, is starting a petrochemical center in Mundra. Within this group, the team is construction a PVC industrial capability with a volume of 1 million tonnes per year, set to be active by fiscal 2028 (April 2027 to March 2028). The ability will also comprise manufacture units for acetylene, chlor-alkali, and calcium carbide.

Adani's strategies to accept a carbide-based and acetylene method for PVC manufacture. Essential ecological clearances and formation endorsements for the project have previously been gained, according to sources. Given the present PVC source gap in India, this new plant will help decrease the country’s dependence on importations.

This change positions Adani to contend with Reliance, which is considered India’s largest PVC manufacturer with a projected capacity of 750,000 tonnes every year. Reliance works plants in Vadodara, Hazira, and Dahej, and strategies to double its PVC volume by 2027.

For years, Adani and Reliance functioned in distinct business ranges, but with Adani now entering clean vigor and petrochemicals, the two corporations are set to contend in these segments. The Mundra plant may be expanded to a volume of 2 million tonnes every year if demand increases in the upcoming years.

Work on the plan, originally overdue in March 2023 because of financial tests and accusations from Hindenburg Research, restarted in 2024. Adani Group has meanwhile transferred its efforts, raising over USD 5 billion in equity and additional debt, while completely reimbursing share-backed financing.