How to Start PVC Pipe Manufacturing Business in India

Vaibhav Rathi

30 Mar, 2024

Introduction

In comparison to GI pipes, PVC pipes are more durable, and they also evade electricity. PVC means Polyvinyl chloride. PVC pipes are used for many purposes, like fixtures and electrical insulation in place of rubber pipers, flooring, etc. PVC is the most preferred pipe in current times because of its many merits. India is the second largest exporter of PVC pipes in the world. It exports PVC pipes to countries like Vietnam, Bhutan, the Maldives, and the United Arab Emirates. The market of PVC pipes is valued at Rs 26,250 crore in India. The demand for PVC pipes is expected to grow at 5% CAGR. Vietnam is the world’s top exporter of PVC pipes, with 123,530 shipments, while India has 82,683 shipments, followed by China with 66.650 loads. By 2027, the Indian PVC pipes industry is expected to grow and reach Rs 39,050.

Benefits of PVC Pipe manufacturing business

• Growing demand: There has been a consistent growth in the demand for PVC pipes in India. As PVC pipes are used on a large scale, the demand is growing day by day. India is the third largest exporter of PVC pipes. PVC pipes are used in some of the main daily industries like construction, plumbing, agriculture, etc.
• Stable market: PVC pipes are one of the most durable products. The PVC manufacturing business is quite stable, as the products have a consistent demand rather than some products that are used either in specific seasons or for some companies.
• Ease of installation: The PVC pipes are very lightweight and can be handled very easily. The storing and installation of these pipes are also easy. Hence the demand for this type of pipe will always be present in the market, making the PVC manufacturing business a smart option.
• Environment friendly: PVC pipes are recyclable. Setting up a manufacturing unit for PVC pipes will never harm the environment in any case. In the current state of global warming¹, setting up an environment-conscious business will result in more consumers.
• Employment opportunity: Setting up any business will provide employment opportunities. This benefits the business owner as well as the economy. For manufacturing the PVC pipe, skilled labourers will be required, which will create employment.
• Export potential: India is one of the largest exporters of PVC pipes in the world. It is also estimated that this demand will only increase in the future.

Important Licenses for PVC Pipe Manufacturing Business

• MSME Registration

When a business is categorized as a small or medium-sized business, MSME registration is a crucial requirement. MSME registration is one of the most beneficial registrations, specifically for small and medium-sized businesses. This registration provides many benefits. This registration can help in securing subsidies, financial assistance from the government, etc.

• Company Registration

Whenever a company is started, company registration is the first and most important step. Registering a company gives the company a position of legal entity which can be used by others. Having a company registration makes the company look more reliable and trustworthy.

• GST certificate

A GST registration is a must for all businesses in India. All the businesses engaged in goods and services supply are required to register for GST. A GST number is provided on the registration of the business. GST is a type of unified indirect tax which is applicable to all business owners in India.

• Trademark registration

When a business is established, the next important thing is brand development. Trademark registration ensures the owner the exclusive rights to use the brand and the name of the business and can stop others from using the same. In a competitive market, trademark registration plays a vital role.

• Environment Certificate

In modern times, the importance of having a sustainable business is very important. Environment protection is one of the essential points to consider in the current world. An environment clearance certificate or no objection certificate is required by the business. This certificate can be obtained from the local authorities. This certification will make the consumers aware that your business is operating within the quality limits established for protecting the environment.

• ISI Certificate from the Bureau of Indian Standards

This certificate guarantees the quality of the product. The ISI certification is only given after it is found that your products follow the quality benchmarks set by the authorities.

Equipment and investment required for PVC Pipe manufacturing business

• Mixer with high-speed
• Storage for pipes
• Oiling equipment
• Water tanks
• Pump units for recycling
• Moulds for pipe
• Grinder
• Oven and testing equipment

Process of setting up PVC Pipe manufacturing business

1. Market Research: One of the main steps before starting a business is always doing market research on the specific business. Doing market research is essential to understanding and learning about the market for the PVC business.
2. Deciding on types of pipes to manufacture: Pipes can be found in many different materials and sizes. The next step after market research is deciding on the type of products that you will include in the business.
3. Deciding infrastructure: The next step is to decide on the infrastructure. The infrastructure can be decided based on the type of unit that is to be created. If the business is to be set up on a large scale, then the infrastructure will be decided on a large scale.
4. Choosing the location: Choosing a location is the most important aspect of setting up the unit. The location of the business should be flexible for travelling as well as export facilities.
5. Buying Machinery and Raw Materials: The next step is to buy all the necessary machinery and raw materials. The production of PVC pipes requires different types of machines. According to the types of raw materials and sizes of pipes, the machinery can be purchased.
6. Required licenses and registrations: Whenever any type of business is started, there are a number of different licenses and registrations which are required. Some of the registrations that are commonly required are company registration, GST registration, environmental registration, etc.
7. Starting the Business: The final step in the process is starting the business. Once all the above steps are covered, the manufacturing is all set to start production and sell the products.

Conclusion

In conclusion, setting up a PVC pipe manufacturing business in India offers a chance for growth and success. As demand increases across multiple industries, the benefits of affordability, strength, and environmental sustainability increase this company’s relevance. By obtaining essential licences, such as MSME and business registration, as well as certifications, such as GST, trademark, ISI, and environmental clearance, entrepreneurs secure legitimacy and a competitive advantage in the market. The PVC pipe manufacturing sector not only promotes economic development but also works to shape the Indian economy in a way that is conducive to business.

Frequently Asked Questions

1. https://en.wikipedia.org/wiki/Climate_change