PVC Board Industry Running at 50% Capacity

person access_time3 20 January 2021

WPC/PVC board industry is heavily impacted and compelled to even shut down plants. The reported production can be estimated to be around 50 percent due to steep price rise of its raw materials. The entire eco-system of this emerging product category looks jeopardized with no sign of relief for next 2 to 3 months. PVC resins prices rising from Rs. 75 to Rs.140 in last 6 months, is actually no match for the miniscule rise that industry has passed on. The manufacturing industries have increased the prices of WPC/PVC boards by mere 20 percent where as impact is more than market can visibly handle in one go.

PVC resin prices are shooting up almost every day, making it impossible for industry to pass on the prices of finished goods on day to day basis. Manufacturers are clear that running plant today is not viable, especially on its full capacity. A sharp increase in finished goods prices would be challenging task and also to maintain the products share thus it is wise to either shut the plant and wait or run the plant as minimum to minimize losses. Till writing this news, A number of PVC board’s producers are temporarily shut its boards production, where as some has shifted its production to Doors and Choukhat manufacturing. This issue is having a detailed story on PVC edge tape segment that is also impacted with the crisis on same note (refer page number -100)

It is noted that WPC/PVC board industry is at nascent stage in India, but it has been the fastest growing sector, which accounts almost 2000 crores business (Pre-Covid) annually with number of good brands from the house of Alstone, Century Ply, Greenply, Amulya, Austin, Archid ply, Black Cobra, Floresta, Ecoste, Flexibond, Jain Irrigation, Reliance Industries, Echon etc. It is calculated that India has approx 125 manufacturing establishments, and more than 200 brands.

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