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How to Start PVC Pipe Manufacturing Business in India

PVC Pipe Manufacturing

PVC stands for Polyvinyl-chloride. PVC pipe Manufacturing is used majorly in the irrigation and construction industry; they are extremely good conduits for electrical conduction and are also used for various household and industrial activities.

Pipes are made of different materials like cast iron, stainless steel, cement, plastic, and wood. However, it is the PVC pipes that are preferred nowadays because of the nature of the material. The advantages of using PVC pipes are:-

  1. PVC material pipes are lightweight as compared to the cast iron pipes and pipes made of cement. Hence they are easy to install and use; as well as it involves the lower cost of transportation.
  2. The PVC pipes are not affected by acids, alkaline or electrolytic reactions. Compared to pipes made of stainless steel or other materials, the PVC pipes are dependable and do not corrode at any cost – they are unaffected even with water.
  3. They are inflammable.
  4. The PVC pipes are highly flexible and break-resistant
  5. PVC pipes do not support the unnecessary growth of algae, bacteria or fungus inside the pipe.
  6. The PVC pipes are able to support well high fluid pressure.
  7. Good quality PVC pipes have a lifespan of about 100 years as compared to any other material.

What is the Market Potential of the PVC Pipes in India?

With growing government infrastructure projects, residential and commercial construction projects, industrial production and agricultural projects, growth is guaranteed in the PVC pipes industry. Another good source of growth is the potential market for the replacement of aging pipes with the modern-day PVC pipes.

As per the forecast, the Indian plastic pipe is expected to grow at a compound annual growth rate of 14% from 2016 to 2025.

Plastic pipe industry consists of PVC pipes, Polyethylene pipes, Polypropylene pipes and other type of plastic pipes. In India, PVC pipes are the one that leads in the way amongst all the others and is poised for a vibrant growth in the coming years.

What are the Mandatory Government Licenses and Registrations Required for Setting up a PVC Pipe Manufacturing unit?

The registrations and licenses that are compulsory to start a PVC pipe manufacturing industry are:-

  1. The first step is to get the business entity registered. It can be done in the form of LLP registration, Partnership firm or if you are looking for a more corporate structure, go for Company Registration.
  2. Obtaining Trade license from the local municipal body. This is mandatory to be granted by the local body to regulate the trade and ensure compliance with government rules and regulations.
  3. Factory license – under the Factory Act 1948[1], the Chief Inspectorate of Factories in the area specified for the new factory set-up issues this license. Before building the factory the occupational certificate or plot allotment letter from the Industries Department is required to start the construction.
  4. GST registration is required for businesses so that the taxes can be collected from the customers and pass on the credit of the taxes; the business can claim the input tax credit and there is smooth processing of input tax credit from suppliers and vendors.
  5. Udyog Aadhaar MSME: Udyog Aadhaar is required to register the business as an MSME. There are lots of benefits to possessing the Udyog Aadhaar. Starting from subsidies and reduced rate of interest, the business is able to get disputes resolved faster, collateral-free loans from the banks; reimbursement of a payment made for ISO certification, eligible for IPS subsidy, 50% subsidy for patent registration and lots more.
  6. No objection certification from the State Pollution control board
  7. BIS certification – for all domestic manufacturers of PVC pipes, especially that is related to household electrical goods, it is essential to apply for BIS Certification from the Bureau of Indian Standards. The applicant needs to submit an application with the fees at the nearest BIS office. In the next step, an evaluation of the factory is carried out by a BIS officer. The product samples are tested in the factory and provided the samples to pass the test, the license is granted within a period of time.
  8. Trademark Registration for the company logo is authorized by the Controller General of Patents Designs and Trademarks, under the Ministry of Commerce and It allows the business owner or the trademark owner the right to sue other parties when infringements occur.
Narendra Kumar

Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.

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