Adani Group to commission PVC project in December 2026

New Delhi: Adani Group will commission the first phase of a $4 billion PVC project by December 2026, marking its entry into the petrochemicals sector, which is characterised by a mismatch between domestic demand and supply, sources said.

Polyvinyl chloride (PVC) is the third most common synthetic plastic polymer worldwide and is used to produce products such as raincoats, shower curtains, window frames, indoor plumbing pipes, medical devices, wire and cable insulation, bottles, credit cards, and flooring.

India’s annual PVC demand is around 4 million tonnes but the domestic production capacity is only around 1.5 million tonnes, resulting in a mismatch between demand and supply. With this mismatch between domestic production and consumption expected to increase with an increase in consumption, Adani Group is looking to tap into the sector.

Adani Enterprises, the group’s flagship, is setting up a petrochemicals cluster in Mundra in Gujarat. Within the cluster, it plans to set up a 2 million tonne per annum PVC plant, to be implemented in phases, two sources with direct knowledge of the matter said.

The first phase, with a capacity of 1 million tonnes per year, is due to come into operation in December 2026, the researchers said.

The group had halted the project in March last year, saying it had decided to halt major equipment procurement and construction activities on site pending financial close. This followed a report by US short seller Hindenburg Research alleging financial and accounting fraud at Adani Group companies.

Although the Adani group vehemently denied all allegations, the report caused Adani’s shares to fall and its governance practices to come under scrutiny. The group refocused its resources on core competencies and outlined a comeback strategy that involved raising more than $5 billion in equity and double that in debt, repaying some of its debt and fully repaying its equity-backed financing.

And as markets regained confidence in the port-energy conglomerate, Adani Group resumed work on the petrochemical plant.