PVC pipes, fittings manufacturers to log volume growth of 13-15% in FY24: Crisil Ratings
Higher capital allocation in the Union Budget for irrigation and housing schemes such as Jal Jeevan Mission and Pradhan Mantri Awas Yojana and continued healthy demand from the residential real estate sector, CRISIL Ratings Director Anand Kulkarni said.
Polyvinyl chloride (PVC) pipes and fittings manufacturers will register volume growth of 13-15 per cent in FY2023-24 on the back of higher budgetary allocation for government schemes in water supply, irrigation, housing, and infrastructure, Crisil Ratings said on Monday.
This will follow a decadal-high growth of 22-24 per cent in the current fiscal due to strong pent-up demand, after a subdued compound annual growth rate of 2 per cent over the past three years, according to a Crisil Ratings analysis of 18 PVC pipes and fittings manufacturers, representing 45-50 per cent of the sector.
Also Read: Welspun One Logistics Parks launches second fund of Rs 2,000 crore
The volume growth next fiscal will be sparked by two key demand drivers.
Firstly, higher capital allocation in the Union Budget for irrigation and housing schemes such as Jal Jeevan Mission and Pradhan Mantri Awas Yojana and continued healthy demand from the residential real estate sector, CRISIL Ratings Director Anand Kulkarni said.
For companies operating in the sector, more than 70 per cent of the demand comes from agriculture, water supply, irrigation, and sewerage, and depends, directly or indirectly, on government funding.
The remaining demand is from residential plumbing and industrial applications.
Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
05:08 PM IST