Are you looking forward to making your mark in the PVC pipe domain and earn good revenue? Maybe it is right for you to initiate your business journey as a PVC pipe manufacturer in India. In Indian parlance, the plastic water pipes industry started growing its footprint in the late 1960s. PVC and HDPE were the early entrants. In 1980, swift capacity expansion via World Bank-funded water schemes further stimulated growth and acceptance all across the nation. This was the time when PVC gained a competitive advantage over the HDPE owing to field failures. This led to the widespread use of PVC pipes in drainage as well as water supply inside buildings. This write-up pens down all the possible legalities that one needs to cater for running a fully-fledged PVC Pipe Manufacturing unit in India.
What are PVC pipes?
PVC Pipes are the commonly used plastic pipes all across the world. They are manufactured from Polyvinyl chloride, one of the prominent synthetic polymers used in the plastic pipe industry. PVC pipes are best known for their vast applicability, matchless durability, and long-lasting service life. They are more reliable than GI, cement, and cast-iron pipes.
The pipe industry is categorized based on application into:
An Outlook on the India PVC Pipes Market
The India PVC Pipes Market size was accounted for $3,159 million in 2016 and is expected to expand at a CAGR of 10.2% to attain the valuation of $6,224 million by 2023. Polyvinyl chloride (aka PVC) is the third-largest traded plastic commodity after polypropylene and polypropylene. It is beneficial over other materials due to its low cost, durability, chemical resistance, and others; therefore, it can act as an alternative to concrete, wood, clay, metal in different applications. The manufacturing process of PVC pipes is done by extrusion method in a variety of dimensions.
The ever-rising demand for pipes in the construction and the irrigation sector is the primary driving factor for the Indian PVC pipes market. Furthermore, the increased focus of GOI on rural water management boosts the growth of the PVC pipe market within Indian territories. PVC pipes are applicable in the sewers, drain-waste-vent (DWV), water service lines, water mains, conduit, irrigation, & several industrial installations.
The Indian government has taken various measures to boost the PVC pipe demand with its initiative, viz Jal Jeevan Mission Urban scheme. The scheme aims to facilitate uniform water supply availability to 4378 urban local bodies with 2.86 crore in-house tap connections. Apart from that, the scheme also aims to facilitate liquid waste management in 500 AMRUT cities.
Read our article:10 Best Startup Government Schemes in India for Every Entrepreneur
Licenses for Running PVC pipe manufacturing Business
Following are the fundamental permits and registration that one needs to obtain for establishing a legally viable PVC manufacturing Business in India;
Company registration or incorporation is the foremost requirement for any new entity in India. The incorporation process generally starts with the selection of the apt business structure as mentioned below:
- Private Limited company (regulated by Companies Act, 2013)
- OPC (regulated by Companies Act, 2013)
- LLP (regulated by LLP Act, 2008)
- Partnership Firm (regulated by Partnership Act, 1932)
Documentation, incorporation fee, and compliances would vary in accordance with the type of business structure you choose.
Trade license from Municipality
Trade license can be obtained from the Municipal Corporation of the respective states against a duly filed online application and certain sets of documents. The cost of obtaining this license may vary state-wise.
In the purview of the factory act 1948, any production unit needs to avail a factory licence if:
- 10 or more labour is engaged with the manufacturing-related task with the aid of power on any day of the previous 12 months,
- 20 or more labour is engaged with the manufacturing-related task without aid of power on any day of the previous 12 months
The application for this license can be filed electronically on the labour department website.
NOC from SPCB
No- objection certificate from the State Pollution Control Board is another mandatory requirement for entities that are not environmental-friendly and emits certain level pollution.
BIS license is mandatory for producing PVC pipe in India. All PVC makers in India, regardless of their size and scope of operation, are mandated to comply with the production and quality norms underpinned by the Bureau of Indian Standards.
BIS registration process begins with the filing of the online application. After this, the authority commences the extensive verification of submitted paperwork and production facility.
During the on-site inspection, the BIS officials randomly pick a sample (s) from the production lot for testing purposes. The testing of sample shall be done in accordance with predetermined standards underpinned by BIS.
The rate of rejection for BIS certification is relatively higher than any other registration. So it is recommended to hire a field expert for that purpose.
Businesses with an annual turnover of more than 40 lacs per year have to register under GST. As per the GST Act, 2017, businesses that deal with the inter-state supply of goods and services are also mandated to avail of GST registration.
Process undertaken at PVC Pipe Manufacturing Unit for Producing PVC Pipes
PVC pipes are produced via an extrusion process of raw material PVC & typically follow the identical process of general pipe extrusion operations
- Feeding raw material to the PVC twin screw extruder
- Melting and heating of the raw material in multiple extruder zones
- Extruding via a die to shape into a pipe
- Cooling of the pipe
- Cutting of pipes in the desirable length
But, despite having an identical manufacturing process to most plastic piping, PVC pipes have inherent traits that pose many hindrances to pipe manufacturers both in terms of production & positioning their products in the given marketplace.
The future of the PVC pipe manufacturing business in India looks bright, considering the past and recent trends and data mentioned above. It is a kind of business domain that doesn’t seek considerable investment and acts as a stable revenue source for the business owner.