Adani’s 1 mn tonne PVC plant in Guj to take on Reliance in petrochemicals
New Delhi: The Adani Group is entering India’s petrochemical industry with a major investment in a polyvinyl chloride (PVC) manufacturing facility at Mundra, Gujarat. According to two individuals familiar with the development, the project will mark the conglomerate’s first venture into the segment, placing it in
direct competition with Reliance Industries, which currently dominates the domestic PVC market.
Adani Enterprises Ltd, the group’s flagship firm, is setting up a petrochemical cluster at Mundra, with the PVC plant as its centrepiece. The facility is projected to produce one million tonnes of PVC annually and is targeted for commissioning in the 2027–28 financial year.
“Environmental clearance and consent to establish the project have already been secured,” said one of the sources. “The production will be based on acetylene and carbide processes.”
PVC is a versatile synthetic plastic used in various sectors, including construction, agriculture, packaging, and healthcare. India’s demand for the material is approximately four million tonnes per year, while its domestic capacity lags at around 1.59 million tonnes. Industry estimates show that Reliance controls nearly half that capacity.
The Adani project aims to bridge part of this demand-supply gap and reduce dependence on imports. It will also include facilities for the production of chlor-alkali, calcium carbide, and acetylene—key components for PVC manufacturing.
The group is leveraging its integrated infrastructure platform, which includes ports, logistics, and energy, to support the project. “Land availability and port access at Mundra will provide logistical advantages for both raw material sourcing and finished product distribution,” the second source said.
The facility had initially faced a pause in construction in early 2023 amid financial scrutiny and market volatility following allegations made by Hindenburg Research. Since then, the group has raised more than USD 5 billion through equity and debt channels and repaid all share-backed loans.
The project is being financed by a consortium led by the State Bank of India. According to insiders, Adani’s internal capabilities and experience in global trading will ensure a steady supply of feedstock.
Reliance, India’s current largest PVC producer with plants at Hazira, Dahej, and Vadodara, is in the process of doubling its production capacity by 2027. The emerging presence of Adani in the sector could signal heightened competition between the two industrial giants, who until recently have operated largely in distinct sectors.
“There is potential to scale up production at the Mundra facility to two million tonnes per annum in the future, depending on market conditions,” said one person close to the project.
