Billionaire Gautam Adani’s conglomerate is set to build a 1 million tonne-per-year PVC plant at Mundra, Gujarat, marking its entry into the petrochemicals sector, where Reliance Industries Ltd currently dominates, sources have confirmed. PVC (Polyvinyl Chloride) is a versatile plastic used in products ranging from pipes and window frames to flooring, credit cards, and toys. India’s annual demand for PVC is around 4 million tonnes, while the domestic production capacity is about 1.59 million tonnes, with Reliance accounting for roughly half. The PVC market is expected to grow at a compound annual growth rate (CAGR) of 8-10%, driven by demand from sectors like agriculture, infrastructure, housing, and packaging.
Adani Enterprises Ltd, the flagship company of the Adani Group, is establishing a petrochemical hub in Mundra. Within this cluster, the group is building a PVC manufacturing facility with a capacity of 1 million tonnes per year, set to be operational by fiscal 2028 (April 2027 to March 2028). The facility will also include production units for chlor-alkali, calcium carbide, and acetylene.
Adani plans to adopt an acetylene and carbide-based process for PVC production. Necessary environmental clearances and establishment approvals for the project have already been obtained, according to sources. Given the current PVC supply gap in India, this new plant will help reduce the country’s reliance on imports.
This move directly positions Adani to compete with Reliance, which is India’s largest PVC producer with an estimated capacity of 750,000 tonnes per year. Reliance operates plants in Hazira, Dahej, and Vadodara, and plans to double its PVC capacity by 2027.
For years, Adani and Reliance operated in separate business areas, but with Adani now entering clean energy and petrochemicals, the two conglomerates are set to compete in these sectors. The Mundra plant may be expanded to a capacity of 2 million tonnes per year if demand grows in the future.
Work on the project, initially delayed in March 2023 due to financial challenges and allegations from Hindenburg Research, resumed in 2024. Adani Group has since refocused its efforts, raising over $5 billion in equity and additional debt, while fully repaying share-backed financing.
Financed by a consortium led by SBI, the project will use the acetylene and carbide-based process for PVC production. Adani is confident in securing the necessary feedstock, given its strong presence in domestic and international markets. The group also benefits from its large land holdings in Mundra, access to port facilities, and established logistics networks, which will help reduce costs related to raw materials, inventory, and transportation.
Adani’s track record in managing large-scale infrastructure and industrial projects, including in ports, power, and logistics, is expected to ensure the smooth implementation of the PVC plant. The group also has a skilled workforce with expertise in various engineering disciplines.
The Adani Group is a prominent Indian multinational conglomerate headquartered in Ahmedabad, Gujarat. Founded by Gautam Adani in 1988, the group began as a commodity trading business and has since expanded into a wide range of sectors including energy, infrastructure, logistics, agribusiness, aerospace, and defense.
With a strong focus on sustainable development and nation-building, the Adani Group operates some of India’s largest infrastructure projects, such as the Mundra Port, India’s largest commercial port, and major power generation and transmission networks. The group also plays a significant role in renewable energy, aiming to become the world’s largest renewable energy company. Known for its rapid expansion and strategic investments, the Adani Group has become a key player in India’s economic growth story.
