Adani to Build ₹1 Million Tonne PVC Plant in Gujarat to Take on Reliance by 2028

Billionaire Gautam Adani’s group is entering India’s petrochemical sector with plans to build a large PVC manufacturing plant in Mundra, Gujarat. This move will place Adani in direct competition with Mukesh Ambani’s Reliance Industries, which currently leads the market.

About the Project

The planned facility will have a production capacity of 1 million tonnes per year. Construction is expected to be completed by FY28 (April 2027–March 2028). According to news reports, the plant will be part of Adani Enterprises’ broader petrochemical hub in Mundra and will include units for chlor-alkali, calcium carbide, and acetylene.

Importance of PVC in India

PVC (Polyvinyl Chloride) is a synthetic plastic used in pipes, window frames, cables, flooring, credit cards, and more. India consumes about 4 million tonnes of PVC every year, but only 1.59 million tonnes are produced locally. Reliance holds about half of this capacity with plants in Gujarat. As demand is growing by 8–10% annually, Adani’s project will help fill the supply gap and reduce imports.

Production Process and Financing

The Adani Group will use an acetylene and carbide-based production process. They already have environmental clearance and project approvals. Financing comes from an SBI-led consortium, and the group is confident in sourcing the needed raw materials through its trading expertise.

Competition with Reliance

Reliance Industries is also expanding its PVC capacity to about 1.5 million tonnes by 2027. While Adani and Reliance have usually operated in separate industries, they now compete in clean energy and petrochemicals. In the future, Adani’s PVC plant could expand capacity to 2 million tonnes if demand continues to rise.

Project Revival and Advantages

The project faced delays in 2023 due to financial challenges and the fallout from a US short-seller’s allegations. However, work resumed after the group raised over $5 billion and cleared debt. The Mundra location offers significant advantages, including large land parcels, proximity to ports for easier imports and exports, and reduced logistics costs.

The Adani Group also benefits from its experience in handling large infrastructure projects across ports, power, and logistics, along with a skilled workforce.

Also Read: Why Is Brightcom Group Suspended?

Conclusion

Adani’s entry into the PVC sector marks another major step in diversifying beyond its traditional businesses. With India’s rising demand for PVC and the group’s strong infrastructure capabilities, this ambitious project could reshape the country’s petrochemicals landscape and set up a new rivalry with Reliance Industries.

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