Gautam Adani soon to have direct face off with Mukesh Ambani as Adani group enters 1 million tonne project of...

Billionaire Gautam Adani’s conglomerate is stepping into the petrochemicals sector for the first time by building a 1 million tonne per year PVC plant in Mundra, Gujarat, according to sources. This move marks the group’s entry into a space currently dominated by Reliance Industries, led by Mukesh Ambani.

What is PVC and Why is it Important?
PVC (Polyvinyl Chloride) is a synthetic plastic used in everyday products like water pipes, door and window frames, cable covers, credit cards, vinyl flooring, toys, and much more. It’s in high demand across agriculture, construction, housing, packaging, and even the pharmaceutical industry, especially as irrigation, sanitation, and infrastructure projects continue to expand in India.

Currently, India consumes around 4 million tonnes of PVC annually, but the country only produces about 1.59 million tonnes. Half of this is produced by Reliance Industries, which operates PVC plants in Hazira, Dahej, and Vadodara, all in Gujarat. With this supply-demand gap, Adani’s new project could significantly help reduce India’s import dependency.

Project Details and Timeline
Adani Enterprises Ltd, the flagship company of the group, is developing a petrochemical cluster in Mundra, and the PVC plant is a key part of this project. The new plant is expected to be ready by the financial year 2028 (April 2027–March 2028).

The plant will include units for producing PVC, chlor-alkali, calcium carbide, and acetylene. Adani plans to use an acetylene and carbide-based process for manufacturing, which has already received the required environmental clearances and project approvals.

Though the project faced delays in early 2023 due to financial challenges and allegations by US short-seller Hindenburg Research, the group has since resumed work. It has also raised over USD 5 billion through equity and debt and cleared all share-backed loans.

Competition and Future Expansion
This development sets the stage for direct competition between Adani and Reliance, who until now had operated in largely separate industries. Reliance is also planning to double its PVC production capacity by 2027, increasing the competitive pressure.

Sources say that Adani’s plant could expand to a 2 million tonnes annual capacity in the future, depending on how fast demand grows.

The project is being funded by a State Bank of India (SBI)-led consortium and will benefit from Adani’s strengths in trading, logistics, ports, and infrastructure. The location in Mundra offers advantages like available land, port access, and efficient transport for raw materials and finished goods, both domestically and internationally.

Adani Group’s experience in building large-scale industrial projects, supported by its skilled workforce and trained engineers, is expected to ensure smooth and timely execution of this ambitious plan.