Adani Group to Set Up 1 Million Tonne PVC Plant in Mundra by 2028

The Adani Group has announced plans to establish a 1 million tonne per annum Polyvinyl Chloride (PVC) manufacturing plant in Mundra, Gujarat, marking its entry into the petrochemicals sector. Scheduled for commissioning by fiscal 2028, the project is set to challenge Reliance Industries Ltd (RIL), India’s leading PVC producer. India’s PVC demand is currently around 4 million tonnes per year, while domestic capacity stands at just 1.59 million tonnes—nearly half of which is held by Reliance. With demand expected to grow at a CAGR of 8–10%, Adani’s entry aims to reduce the supply deficit and lower import dependency. The facility will be part of a larger petrochemical complex being developed by Adani Enterprises Ltd and will include integrated units for chlor-alkali, calcium carbide, and acetylene production. The project will use a carbide- and acetylene-based PVC manufacturing process and has already received environmental and regulatory approvals. Initially paused in 2023 due to financial uncertainties and market volatility, the project was revived after the Adani Group raised over USD 5 billion in equity and debt financing, and fully repaid its share-backed loans. Funding is being led by a State Bank of India (SBI)-anchored consortium. Strategically located near Adani’s port and logistics infrastructure, the Mundra facility will benefit from reduced sourcing and distribution costs. The plant also holds expansion potential up to 2 million tonnes annually, depending on market conditions. As Reliance plans to double its PVC capacity by 2027, the petrochemical sector is emerging as a key area of strategic competition between corporate groups Gautam Adani and Mukesh Ambani. Disclaimer: PolyMart does not offer guarantees regarding the accuracy, reliability, or completeness of the information provided on its platform. Users are advised to independently verify any data before relying on it for decision-making purposes.