Adani's Rs 26,000 Cr PVC Manufacturing Plant in Mundra

PVC manufacturing is gaining importance in India as Adani Enterprises advances its Rs 26,000 crore integrated production complex at Mundra, Gujarat.

The project forms part of a larger investment cycle, with the company planning annual capital expenditure of Rs 35,000–40,000 crore over the next two years.

The proposed facility will have an initial production capacity of 1 million tons per annum (MTPA), alongside related chemical and chlor-alkali operations.

With around 60 percent of the project's construction and expenditure completed, the development raises questions about domestic production capacity, India's reliance on imported PVC and the potential for downstream industrial supply chains.

What Is Adani Building at Mundra?

Adani Enterprises, through its subsidiary Mundra Petrochemicals Limited, is developing an integrated PVC manufacturing complex with a planned initial capacity of 1 MTPA.

Key project details include:

• Investment: Approximately Rs 26,000 crore.
• Location: Mundra, Kutch district, Gujarat.
• Production capacity: 1 MTPA of PVC.
• Associated facilities: Chlor-alkali and related chemical production.
• Project progress: Around 60 percent of construction and project expenditure completed.
• Commissioning: The first part of the project is expected to be commissioned in FY28.

The integration of chlor-alkali and related chemical operations also forms part of the project's manufacturing ecosystem.

Also Read: How India's Government Policies Support Chemical Manufacturing (2026 Strategy Guide)

Can Adani's PVC Manufacturing Plant Reduce India's Import Dependence?

India's PVC market continues to face a substantial gap between domestic production capacity and consumption, making imports an important source of supply.

The latest figures published by Adani Enterprises and industry data indicate the scale of this gap:

• FY26 PVC demand: 4.55 million tons.
• FY26 domestic installed capacity: 1.6 million tons.
• FY26 PVC imports: Approximately 3 million tons.
• FY25 actual domestic production: 1.536 million tons.
• FY25 PVC imports: 2.9 million tons.

Imports of approximately 3 million tons accounted for nearly 66 percent of FY26 demand, highlighting India's dependence on overseas suppliers.

The investment also comes amid growing demand for PVC from water supply networks, irrigation projects, housing, construction and electrical infrastructure.

What Does the Project Mean for India's Chemical Manufacturing?

Beyond PVC production, the Mundra complex could strengthen India's domestic petrochemical and chemical manufacturing ecosystem through its associated chlor-alkali and related chemical facilities.

The development has three important industrial implications:

• Domestic supply: Additional PVC production could reduce the volume of imported resin required to meet India's demand.
• Downstream industries: Greater domestic availability could support manufacturers of pipes, fittings, cables, construction materials and other PVC-based products.
• Chemical integration: Associated chlor-alkali production could strengthen the project's integrated chemical manufacturing operations.

Adani's investment also needs to be viewed against its broader Rs 35,000–40,000 crore annual capex plan, which includes airports and data centers alongside the PVC complex. The Mundra project is one of the major manufacturing components of this investment cycle.