Finolex Industries Ltd., India’s leading PVC pipes manufacturer, is focusing on the non-agriculture pipe segment to cater to growing demand from the housing sector and smart cities in the country, a top company executive said.
‘Eyes 1 crore houses’
“We foresee large opportunity from the government’s plans to provide housing for all by 2022 and are focusing on the non-agriculture pipes segment which is poised to grow exponentially,” Prakash P. Chhabria, executive chairman, Finolex Industries Ltd. said.
The segment includes housing, industrial and infrastructure sectors. In the short term, the company is eyeing orders from one crore houses that will be constructed by 2019 and five lakh ponds to be constructed for drought proofing. Besides, the sanitation programme for rural areas has also created demand for pipes, the company said.
Finolex has entered into a collaboration with Lubrizol Corporation, the inventor and largest manufacturers of the CPVC (Chlorinated Polyvinyl Chloride) compound worldwide, to manufacture and market CPVC pipes and fittings in India.
CPVC pipes are good alternatives over conventional materials as they withstand higher temperature variations, the company said.
It has manufacturing capacity of 2.9 lakh MTPA pipes and is adding capacity to meet projected demand.
“We are adding capacity in a calibrated manner as two crore houses will be built by 2022 in a phased manner. So, we will be investing ₹30 crore to ₹50 crore a year for the next five years,” Mr. Chhabria said.
The company, which reported revenue of ₹2,988 crore in FY17, plans to double revenue in 3-4 years, as benefits from most of its expansion would start to accrue from FY19, he said.