The Adani Group will enter the petrochemical sector by launching the initial stage of a USD 4 billion PVC project by December 2026, addressing the imbalance between domestic demand and supply. Polyvinyl chloride (PVC) is the third most widely produced synthetic plastic polymer globally, utilized in the production of items like raincoats, shower curtains, window frames, plumbing pipes, medical tools, wire insulation, bottles, credit cards, and flooring.
India requires around 4 million tonne of PVC every year, yet the country's production capacity is only 1.5 million tonne, causing a discrepancy between supply and demand. Adani Group aims to seize the opportunity in the industry as the gap between domestic production and consumption is predicted to grow with higher consumption.
Adani Enterprises, the leading company of the group, is establishing a petrochemical hub in Mundra, Gujarat. In this group, there are plans to establish a PVC factory with a yearly capacity of 2 million tonnes, which will be carried out in stages, as confirmed by two insiders.
They mentioned that the first stage, capable of processing 1 million tonnes per year, is scheduled to be operational by December 2026.
In March of last year, the group stopped the project because they chose to postpone significant equipment procurement and site construction until they obtained financial closure. This came after Hindenburg Research, a US short seller, released a report accusing Adani Group companies of financial and accounting fraud.
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