Adani Group PVC Plant in Mundra : Adani enters petrochemicals with 1 million tonne/year PVC facility in Mundra, leveraging port infrastructure to reduce India’s polymer imports.
Adani Group PVC Plant in Mundra : Strategic Expansion Highlights
✅ 1 million tonne/year PVC capacity – India’s second-largest producer
✅ $2.5 billion investment in integrated petrochemical complex
✅ 2028 operational timeline (FY27-FY28)
✅ Acetylene-carbide production process – unique in Indian market
✅ Potential 2MT expansion based on market demand
Adani Group PVC Plant in Mundra : Adani Challenges Reliance with Mega PVC Project in Gujarat
Project Breakdown
| Parameter | Details |
|---|---|
| Location | Mundra SEZ, Gujarat |
| Production Capacity | 1 million tonnes PVC/year |
| Associated Units | Chlor-alkali, calcium carbide, acetylene |
| Technology | Acetylene-carbide route |
| Key Feedstock | Imported ethylene (initially) |
| Competitive Edge | Port connectivity, captive power, logistics infrastructure |
Market Context
- Current Indian PVC demand: 4 million tonnes/year
- Domestic production: 1.59 million tonnes (Reliance controls ~50%)
- Projected CAGR (2024-30): 8-10%
- Key demand drivers: Infrastructure (60%), packaging (20%), consumer goods (15%)
Strategic Implications
1. Import Substitution
- Will reduce India’s $1.2 billion/year PVC imports
- Cuts reliance on Chinese/Southeast Asian suppliers
2. Infrastructure Synergies
- Leverages Adani’s Mundra Port for raw material imports
- Utilizes existing power generation and industrial zone infrastructure
3. Industry Competition
- Directly challenges Reliance’s 750KT capacity
- Positions Adani as integrated materials player alongside energy business
Financial & Operational Strengths
Funding & Execution
- $5 billion+ raised post-Hindenburg crisis
- SBI-led consortium financing
- Proven track record in mega-project execution
Sustainability Factors
- Plans for carbon capture at production facility
- Potential green PVC variants for eco-conscious markets
Leadership Vision
Gautam Adani, Chairman:
“This marks our strategic entry into petrochemicals – a natural extension of our energy and infrastructure capabilities. The Mundra complex will redefine domestic polymer production.”
Industry Impact Analysis
PVC Applications Driving Demand
- Construction: Pipes, fittings, windows (55% share)
- Agriculture: Irrigation systems, greenhouse films
- Consumer Goods: Credit cards, toys, medical devices
Competitive Landscape
| Player | Capacity (KT) | Market Share |
|---|---|---|
| Reliance | 750 | 47% |
| Chemplast | 340 | 21% |
| DCW | 200 | 13% |
| Adani (2028) | 1,000 | 25% (projected) |
Future Outlook
- Phase 1: 2028 commissioning
- Phase 2: Potential doubling to 2MT capacity
- Downstream integration: Possible entry into PVC products manufacturing
Projected Impact:
✔ 5,000+ direct jobs created
✔ $800 million/year import substitution
✔ Strengthens India’s polymer security
