Adani Group entering petrochemicals business to challenge Reliance's dominance
06 Jul 2025

Gautam Adani's conglomerate is set to challenge Reliance Industries's dominance in the petrochemicals sector.

The company will build a one million-ton-per-year polyvinyl chloride (PVC) plant at Mundra, Gujarat.

The project aims to reduce India's reliance on imports amid rising PVC demand from agriculture, infrastructure, and housing sectors.

It is expected to be commissioned by fiscal 2028, and will use acetylene and carbide-based production processes.

India's annual PVC demand is around 4M tons
Industry impact

PVC is a synthetic plastic polymer used in making a wide range of products, including pipes and fittings, window and door frames, cable insulation, vinyl flooring, and wall coverings.

India's annual PVC demand is around four million tons with Reliance accounting for half of the domestic production capacity at about 750,000 tons per annum.

The Adani Group's plant will help meet this growing demand while reducing import dependence.

The project will include these units
Project details

The PVC plant will be part of a larger petrochemical cluster being developed by Adani Enterprises Ltd in Mundra.

The project will also include chlor-alkali, calcium carbide, as well as acetylene units.

Despite initial delays due to financial uncertainties and allegations from US short-seller Hindenburg Research, work on the project resumed last year after the Adani Group raised over $5 billion in equity and additional debt.

Mundra plant could be expanded
Future prospects

Adani's Mundra plant could be expanded to a capacity of two million tons per annum if demand grows. The project is financed by an SBI-led consortium. The firm is confident about sourcing feedstock due to its portfolio companies' trading expertise in domestic and international markets.