Rex Pipes & Cables Industries Ltd Management Discussions

Global Economy Overview - 2025

• Growth Projection: Global real GDP expected to grow by 3.1% in 2025, driven by easing
inflation and monetary policy normalization. Asia leads growth, while Europe, Latin
America, and the US face slower expansion due to structural and financial constraints.

• Inflation Trends: Inflation remains above pre-pandemic levels, prompting cautious
monetary policies.

• Key Tailwinds: Digital & green transitions, improving trade, and receding inflationary
shocks.

• Challenges: Geopolitical risks, aging populations, and productivity concerns. Long-term
growth expected to be driven by emerging markets.

• Growth Projection: Indias GDP forecasted to grow at 6.4% in FY25, supported by strong
domestic consumption and infrastructure investment.

o Agriculture: 3.8% growth due to strong Kharif output and rural demand.
o Industry: 6.2% growth, despite global demand challenges.
o Services: 7.2% growth, driven by IT, finance, and hospitality.

• Inflation: Moderated to 4.9%, food inflation remains at 8.4%.

• Unemployment: Dropped to 3.2%, formal employment rising significantly.

o Exports grew 6%, services exports surged 12.8%.
o FDI inflows up 17.9% to USD 55.6 billion.
o Trade deficit widened as imports outpaced exports.

Challenges: Global uncertainties, sectorial imbalances, and supply disruptions remain key risks.

Continued reforms and focus on infrastructure and labour policies position India for sustainable

growth.

• Market Size: The plastic piping industry valued at ^315 billion, with organized players
holding 60% of the market share.

• Market Demand: The demand for HDPE (High-Density Polyethylene) and PVC (Polyvinyl
Chloride) pipes continues to grow, driven by infrastructure, irrigation, and construction
sectors. These pipes are widely used in water supply, drainage systems, and industrial
applications due to their cost-effectiveness, durability, and ease of installation.

o Infrastructure Development: Government initiatives such as the National
Infrastructure Pipeline and Smart Cities Mission are contributing to higher
demand for HDPE and PVC pipes.

o Sustainability: PVC and HDPE pipes are preferred in various green building
projects due to their eco-friendly properties like recyclability and low
environmental impact compared to alternatives.

o Irrigation: Increased agricultural demand, especially in rural areas, is a significant
driver of PVC and HDPE pipe adoption, enabling efficient water distribution in
irrigation systems.

• Challenges: The primary challenge faced by manufacturers is the volatility in raw
material prices, especially for PVC, which directly impacts production costs and profit
margins. Supply chain disruptions also remain a persistent concern.

Sprinkler Cable Wires

• Demand: Sprinkler cables are in high demand due to the growing emphasis on fire
safety and efficient irrigation systems in both residential and commercial properties.
With rising awareness around environmental concerns, demand for water-efficient
irrigation systems is on the rise.

o Fire Safety Regulations: The increasing implementation of stringent fire safety
norms, especially in commercial buildings, is driving the demand for sprinkler
cables.

o Smart Cities & Urbanization: The development of smart cities and increasing
urbanization have created the need for advanced fire safety infrastructure,
which is expected to drive the market for sprinkler cables further.

o Sustainability: As a key component of water-saving technologies, sprinkler
cables contribute to efficient resource management, which is increasingly sought
after in urban development projects.

• Challenges: Like with HDPE and PVC pipes, the high cost of raw materials and supply
chain disruptions can impact the profitability of manufacturers of sprinkler cables.

Bus Body Fabrication Industry Overview

• Market Trends: Indias bus body fabrication industry has witnessed significant growth
post-COVID, driven by rising demand for public transport and fleet replacement needs.
The focus on improving public mobility systems and sustainability in transportation is
further fueling demand.

o Public Transport & Fleet Expansion: With increasing urbanization, the demand
for public transportation, especially buses, is growing rapidly. State Transport
Undertakings (STUs) and private operators are expanding their fleets, with a
notable focus on replacing old vehicles with new, more efficient ones.
o Electric Bus Adoption: The shift towards electric buses (EVs) for public
transportation, promoted by the governments push towards green mobility, is
boosting demand for specialized bus body fabrication.
o Government Initiatives: Various government schemes such as the Faster
Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program
provide incentives for electric buses, which has propelled growth in the bus body
fabrication segment.

• Challenges: The primary challenge is the increasing cost of raw materials, particularly
steel and aluminum, which are key components in bus body fabrication. Moreover,
regulatory compliance and the need for specialized designs for electric buses add
complexity to the manufacturing process.

The HDPE and PVC pipe industry continues to benefit from strong demand driven by
infrastructure and agricultural growth. However, volatility in raw material prices poses a
significant challenge. The sprinkler cable market is seeing growth due to increased fire safety
regulations and urban development, while the bus body fabrication sector is expanding due to
higher demand for public transport and government incentives for electric buses.

To address these challenges, companies should focus on:

• Risk Management: Implementing strategies to mitigate raw material price volatility and
supply chain disruptions.

• Technology & Innovation: Adopting advanced technologies for efficient production and
staying compliant with evolving safety standards, especially in the bus body sector.

• Sustainability: Continuing the shift towards more eco-friendly materials and green
technologies like electric buses and water-efficient irrigation systems.

These sectors show significant growth potential, supported by government initiatives and
increasing demand for sustainable infrastructure, making them crucial to the overall economic
landscape in India.