DCW plans ₹140 Crore investment for increasing PVC capacity

18 Oct 2024 , 10:22 AM

DCW Limited has announced a substantial increase in its Chlorinated Polyvinyl Chloride (CPVC) production capacity. Following the October 17, 2024 board meeting, the company announced plans to raise production capacity by 30,000 metric tonnes (MT), bringing the total capacity to 50,000 MT.

This phased expansion is projected to be completed by FY26, with 20,000 MT coming online in the second half of Q2 FY26 and another 10,000 MT by the end of FY26.

CPVC is a versatile thermoplastic utilised in the production of hot and cold water pipes, industrial liquid handling, and other applications.

The growth will be accomplished through new installations, de-bottlenecking of existing facilities, and process optimisation, enabling DCW to satisfy increased CPVC demand while maintaining high quality standards.

The investment in capacity increase, estimated to cost up to ₹140 Crore, will be funded by bank loans and internal accruals. The enhanced capacity will take advantage of DCW’s existing infrastructure, resulting in cost savings and operational stability as it integrates its own Suspension PVC (S-PVC) as raw material.

In addition to increasing its capacity, DCW has announced leadership changes. Pramod Kumar Jain will step down as Chairman and Managing Director on October 31, 2024, becoming Chairman Emeritus. The current Managing Director, Bakul Jain, will take over as Chairman on November 1, 2024.

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