By Sumaila Zaman
Adani is giving tough competition to Mukesh Ambani as his group expands rapidly into sectors long dominated by Reliance. Billionaire Gautam Adani鈥檚 conglomerate is set to establish a PVC plant with a capacity of 1 million tonnes per year in Mundra Gujarat. This move marks Adani鈥檚 entry into the petrochemicals sector where Reliance Industries Ltd currently dominates according to sources reported PTI.
What is Gautam Adani planning that could challenge Mukesh Ambani鈥檚 dominance?
Polyvinyl Chloride (PVV) is a synthetic plastic polymer used across many applications to make products like pipes and fittings frames for doors and windows coatings for cables flooring and wall coverings out of vinyl credit cards and toys.
As per the news agency PTI report Indias annual PVC demand is around 4 million tonnes while domestic production capacity is only around 1.59 million tonnes with Reliance accounting for about half that capacity. The report mentioned that PVC demand is expected to grow at a CAGR of 8-10% yearly due to growing demand in agriculture as land under irrigation increases infrastructure specifically projects concerning water supply and sanitation housing pharmaceutical and packaging end-segments.
Indias Adani conglomerate is advancing plans to build a petrochemical cluster in the neighborhood of Mundra. Within this cluster it is constructing a PVC manufacturing plant with a capacity of 1 million tonnes per annum two sources aware of the matter said reported news agency PTI. The facility is slated for commissioning by fiscal 2028 (April 2027 to March 2028 financial year).
Mukesh Ambani vs Gautam Adani: Tough competition to Mukesh Ambanis Reliance as Gautam Adani is planning to..
Adani group is looking to implement the Acetylene and Carbide-based PVC production process with environment clearance and consent to establish the project having already been received sources said. Given the current higher demand and lower supply of PVC in India the Adani project will help reduce the supply gap and import dependency PTI reported.
This Project will put Adani Group and Reliance Industries in competition with each other since Reliance is the largest producer of PVC in India with an annual capacity of roughly 7.5 lakh tonnes. Reliance operates a site in Hazira Dahej and Vadodara that manufactures PVC and has plans to establish a plant that will double their capacity by 2027. To this point Adani Group and Reliance Industries led by Mukesh Ambani have been working in mostly separate sectors but with both companies expanding into clean energy and petrochemicals the rivalry between the two corporations is bound to deepen.