Developing a Business Plan for the CPVC Business for a Diversified Manufacturer

Client Challenge

The client was a diversified manufacturer of basic chemicals with its business focused around three key segments – Soda Ash, Caustic Soda and PVC. It wanted to develop a business plan for Chlorinated PVC which was mainly used for manufacturing hot water pipes in residential buildings and also in industrial liquid handling systems. The client hired UC Strategy to develop a business plan and provide a perspective on the market opportunity for the same in the country.


Our Approach

In order to prepare a business plan, UC Strategy used the following approach:

  • As a part of the assignment interviewed more than 45 respondents across pipe manufacturers, distributors and competitors
  • Interviewed the management and key personnel to obtain a briefing on the key uses and application industries for Chlorinated PVC resin:
  • Ability of CPVC to substitute other materials such as PVC or metals (e.g. copper) in specific applications
  • Threat of substitutes to CPVC itself, if any
  • Applications of CPVC resin vs. CPVC compound
  • Understood strategic intent for the CPVC product in terms of :
  • Key potential customers in the country
  • DCW’s target application areas and customers
  • Advantages and disadvantages of DCW product as compared to imported product as well as other key players in the industry
  • Scale of the planned facility

Assessed industry trends, this included:

  • Examination of key drivers for CPVC growth
    • Growth of the residential sector in the country
    • Growth of premium new construction (green field) real estate which would form a target segment for CPVC piping
    • Incidence of replacement of existing plumbing systems with CPVC piping (brown field)
    • Replacement of GI/ copper pipes with PVC/ CPVC piping in the housing sector
    • Expected growth of the industries using CPVC based liquid handling systems
  • Assessed the impact on pricing of CPVC piping because of substitution of imports with locally manufactured CPVC resin/ compound and assess whether this will be a significant growth driver
  • Key inhibitors for CPVC growth, for example
    • Higher cost of CPVC plumbing systems
    • Determined the application, usage of CPVC in resin vs. compound forms
  • Examined consumer behaviour:
  • Interviewed key customers of CPVC in the country such as –
    • Manufacturers of CPVC plumbing systems
    • Astral Polytechnic Ltd
    • Duron
    • Shrived
    • Ajay Poly
    • Prince CPVC
  • Generated insights into –
    • Product preferences, needs and expectations
    • Key decision parameters of purchase
    • Pricing, features, brand image, technology, product certifications or standards etc.
    • Preference for imports vs. local supply
    • Switching criteria from imports to local suppliers
  • Identified key gaps, unmet needs, expectations of customer’s w.r.t product, pricing, service etc.
  • Examined the type of packaging in which the product is required / preferred by the customers
    • 25kg packs vs. larger/ smaller sizes
    • Type of packaging required
  • Analysed and examined the supply scenario in the Indian market:
  • Import volumes over the years
  • Pricing
  • Grades, if any etc.
  • Segment importers based on:
  • Key application areas, customer segments
  • Product grades etc.
  • Analysed market share of imports and Indian players, competitive intensity
  • Interviewed key importers and profile them to understand their strategies based on –
    • Product offering
    • Pricing
    • Customer segment/ geography focus
    • Value proposition
    • Distribution model
    • Alliances/ tie-ups: nature of alliances, benefit of alliances, if any
    • Future plans for expansion etc.
  • Summarised emerging trends in the supply landscape
  • Build supply-demand scenario to assess possible competitive intensity based on plans of other domestic suppliers
  • Developed market forecasts
    • Developed market size estimates for key customer segments –
      • Current market size of the product segment – by volume and value
      • Future growth rate and projected market size
      • Imports
    • Defined addressable markets for the client
    • Developed revenue projections for the client
    • Identified business risks and their mitigation strategies.


Our Impact

A detailed business plan was prepared and presented to the client. Based on this business plan the client took further business decision on CPVC pipes manufacturing.

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