India's plumbing industry and the path ahead

In India, as much as 40% of water is lost in transmission due to aging pipe networks. Today, pipes and fittings business play a key role in assuring safe and judicial use of water. There is a surge in the demand for plastic pipes across the irrigation, sanitation, and construction sector. These sectors have emerged as key drivers contributing to the accelerated growth of the Indian PVC pipes market.

Growth drivers

The domestic plastic pipes industry size is estimated at Rs 315 billion, of which the organised players account for 60% of the market share. Although the pandemic caused most sectors to evaluate how they operate, the construction industry landed itself a unique opportunity to innovate and grow. Organised players have topped industry growth as they continue to gain market share from unorganised manufacturers. 

The pipes and plastic fittings industry are expected to clock a CAGR of 14% between FY 2018-26. Favourable policy landscape and citizen-focused initiatives including the intent to increase farmer income via improved infrastructure and execution of 'Housing for All' schemes are amongst top contributors to the growth of the sector. The discovery of newer applications for CPVC and further inroads made by uPVC pipes into other applications has also emerged as advantageous accelerators.

Organised players have become one-stop solution providers for plumbing applications owing to value added products and fittings, as well as product portfolio expansion offered to channel partners.

Measures to increase efficiency and address the growing demand

The plumbing community is in dire need of trainings that can impart the right knowledge and contribute towards addressing the growing demand. A large percentage of the plumbing sector is highly unorganised and dependent on a contractual workforce. Its diversified sub-segments including contractors, manufacturers, and consultants who mostly work independently and hence, they lack access to proper trainings and safe tools. Industry body, Indian Plumbing Skills Council (IPSC) under National Skill Development Council, has undertaken initiatives like Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) and state specific skill development scheme to train plumbers. IPSC training and its inclusivity have also provided an opportunity to women plumbers in India. Similarly, brands including Truflo by Hindware, along with educational/training institutions such as the International Association of Plumbing and Mechanical Officials (IAPMO), Indian Institute of Plumbing (IIP), MKG Consultants, Northern Sanitations among others are tying up with IPSC to launch relevant training modules. Recently, the All India Council of Technical Education (AICTE) has signed a Memorandum of Understanding (MoU) with Indian plumbing Education (IPA) to introduce plumbing education in Engineering and Architecture institutions across India.

Over the past few years, TRUFLO by Hindware has actively supported numerous initiatives to skill and upskill the plumbing community. It has engaged with over 1,00,000 plumbers through an inclusive approach. As per the recent data from the US Bureau of Labor Statistics (BLS), the demand for the plumbing industry's services is expected to accelerate over the next five years. Training programs offered by TRUFLO to the plumbers focuses on around technical knowledge and product discovery has helped in creating a direct route, and the plumbers reach us directly. The brand offers a wide range of practical skills, graduate with strong foundational knowledge so the workers are ready to join the workforce as qualified plumbers.

The path ahead 

With growing awareness about the durability of plastic pipes and BIS standards, residential consumers (uPVC, CPVC) and farmers (uPVC) are increasingly opting for better-quality pipes to minimise potential wastage of water. Preference for PVC pipes has gone up drastically owing to factors including affordability, superior quality, and enhanced durability. Catering to the increased demand from agriculture, automotive, building and construction, electrical, and other end-use industries, TRULFO by Hindware has enhanced its portfolio to offer 1,100+ SKUs.

To conclude, the pipe industry is likely to consolidate, and the pie of unorganised sector will continue to become smaller. Furthermore, the government is expected to increase its spending on pipe installations under a variety of programmes, including Nal-Se-Jal, a low-cost housing scheme, among others. Furthermore, polymer price volatility will benefit cash-rich companies, as they will be able to manage the additional working capital requirement.

- Rajesh Pajnoo

CEO, Pipes Division, Brilloca

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