Adani Lays the Foundation to Dethrone Reliance in India’s PVC Arena

Adani Group is entering the petrochemicals sector with a ₹50,000 crore PVC plant at Mundra, Gujarat, aiming to challenge Reliance Industries’ dominance.

• Location: Mundra, Gujarat
• Initial Capacity: 1 million tonnes per annum (expandable to 2 million)
• Commissioning Target: FY 2028
• Technology: Acetylene and carbide-based PVC production
• Integrated Units: Chlor-alkali, calcium carbide, and acetylene production
• Sustainability: Zero liquid discharge, renewable energy use, gold-based catalyst for VCM
• Financing: SBI-led consortium
• Strategic Goal: Reduce India’s PVC import dependency and meet rising demand

India’s PVC demand is around 4 million tonnes annually, with domestic capacity at just 1.59 million tonnes—half of which is produced by Reliance.

• Growth Drivers: Agriculture, infrastructure, housing, packaging, and pharma
• India’s PVC demand growing at 8–10% CAGR

This marks a direct challenge to Reliance, India’s largest PVC producer with plants in Hazira, Dahej, and Vadodara.

• Adani and Reliance are increasingly competing across sectors—from clean energy to petrochemicals

The project was paused in 2023 after the Hindenburg fallout but resumed after Adani raised over $5 billion and repaid share-backed loans.

• Environmental and establishment clearances already secured

Strategically located near Mundra Port, the plant benefits from reduced logistics costs and vertical integration with Adani’s infrastructure ecosystem.

• Port access, land availability, and synergy with Adani’s logistics and power arms offer long-term advantages