Pune-based Finolex Industries, the largest manufacturer of PVC pipes in the country, has commenced commercial production at its new plant at Masar in Gujarat set up at an investment of about Rs 100 crore and spread over 29 acres. "The friendly industrial environment in Gujarat prompted us to set up a plant there. The plant is strategically located to cater to the ever-growing agriculture and real estate market of not only Gujarat but also the northern states," Prakash Chhabria, executive chairman of the company, announced at a press conference.

It is for the first time the company has set up a plant outside Maharashtra which will have production capacity of about 30,000 tonnes per annum in the first phase, he said, adding that the single window system in the state ensured 'fast clearance' for the project. The company had entered into a MOU with the Government of Gujarat during the Vibrant Gujarat 2011 Summit. Commenting on this initiative, Saurabh Dhanorkar, managing director of Finolex Industries Ltd, said: "There is a huge demand for quality PVC pipes and the market is growing rapidly with no impact of any slowdown."

According to Dhanorkar, the total PVC pipe market size if Rs 14,000 crore which is divided into irrigation, water supply and real estate sectors. Finolex Industries has a market share of 20 per cent and holds top position in this industry. The other major players who manufacture PVC pipes are Jain Irrigation, Supreme Industries and Prince Pipes. In terms of backward integration, the company has a plant for manufacture of PVC resin with an annual capacity of 2,60,000 tonnes per annum (TPA) at Ratnagiri in suspension and emulsion grade. It is therefore self-sufficient for supply of raw material for its pipe manufacturing plants and is the only Indian PVC pipe manufacturer to have control on quality parameters from raw material to finished product.

"The second phase of the Gujarat plant would get commissioned during 2013-14 and that would increase the capacity of the plant to 50,000 tonnes. The company's aggregate production capacity across its three ultra-modern plants - one each at Pune and Ratnagiri and the third one at Masar in Gujarat - would be over 2,00,000 tonnes," he said. The company offers a wide range of PVC pipes and fittings in various sizes ranging between 20 mm to 400 mm diameter, in different pressure classes, as per the relevant Indian standards. It has a network of over 6,000 counters in Gujarat and northern India. According to Chhabria, there is a plan to set up a fourth plant in the near future. "We are scouting for a suitable location," he said.