| Investment Project Proposal 2025 – MAX PVC |
Investment Project Proposal 2025
Enhance the Production Capacity with SLS Standard.
Contents
1 Project objective Page 3
2. PVC Industry introduction Page 3
3. Sri Lanka PVC industry synoptic Page 4
4. Key aspects of the Sri Lanka PVC industry Page 5
6. Basic requirement of the PVC factory in Sri Lanka Page 9
6. Market analysis Page 12
7. Cost Benefit Analysis (CBA) Page 13
OBJECTIVE OF THE PROJECT
To expand the existing PVC fittings manufacturing plant and start production of SLS standard PVC pipes and fittings to distribute to an existing distribution network and further develop new distributors island wide.
TOTAL INVESTMENT – 3.0 Million USD (900,000,000.00) LKR
Annual Turn Over – 900 million LKR
Payback Period – 5 Years
Commercial Production – 6 Months
Annual Payback Amount – 54,000,000.00 LKR (profit share negotiable)
PVC INDUSTRY INTRODUCTION
Plastic processing has been a flourishing industry in Sri Lanka for over 45 years.
Currently, Sri Lanka has over 400 companies engaged in plastic processing. The capacity of the local plastic processing industry at present is nearly 140,000 MT per annum with an annual average growth rate of around 10%.
The PVC industry in Sri Lanka is a thriving sector, experiencing growth due to factors like increased construction, urbanization, and industrialization.
The market is projected to reach USD 627.0 million by 2026, with an 8.1% compound annual growth rate CAGR, according to trusted information.
PVC is widely used in construction for pipes, doors, windows, flooring, and roofing, and also finds applications in packaging and other industries.
Sri Lanka PVC Market Synopsis
The Sri Lanka PVC market is expected to reach a value of USD 627.0 million by 2026, growing at a CAGR of 8.1% during the forecast period (2020-2026).
This growth can be attributed to factors such as increasing construction activities, urbanisation and industrialisation in the country.
Moreover, rising disposable incomes and strong demand for PVC products are also driving the market’s growth. Additionally, government regulations on product standards and quality are likely to support further market development over the next few years.
The residential sector was observed to be the largest end user of PVC in 2019.
The segment accounted for more than 57% share of total volume consumed in that year owing to high usage for floorings, roofings and wall claddings among others due to its low cost and durability nature compared with other materials like wood or steel used in construction.
Moreover, rising number of new hotel and housing units along with renovation activities across cities is expected drive segmental growth over the forecast period.
Commercial buildings have witnessed healthy increase in recent past which has subsequently pushed up demand from this end use application.
Industrial sector is another key consumer using large volumes mainly for production processes including pipes & tubing, electrical insulation, window profiles etc, though it holds relatively smaller share when compared with residential or commercial applications segments
Key aspects of the Sri Lankan PVC industry
- Growth:
The PVC market is experiencing significant growth, driven by increasing construction activities and industrialisation.
The Sri Lanka PVC Market is projected to witness mixed growth rate patterns during 2025 to 2029. Growth accelerates to 0.54% in 2028, following an initial rate of 0.37%, before easing to 0.42% at the end of the period
By 2027, the PVC market in Sri Lanka is anticipated to reach a growth rate of 0.53%, as part of an increasingly competitive Asia region, where China remains at the forefront, supported by India, Japan, Australia and South Korea, driving innovations and market adoption across sectors
- Applications:
PVC is versatile and used in various applications, including construction, packaging, Agriculture, Irrigation and other industries.
- Market Value:
The Sri Lanka PVC market is projected to reach USD 627.0 million by 2026.
- Industry Size:
The Sri Lanka plastic processing industry has a capacity of nearly 140,000 MT per annum, with an annual growth rate of around 10%, according to Ministry of Industry and Entrepreneurship Development
- Employment:
The plastic sector provides direct and indirect employment to over 200,000 people, says Ministry of Industry and Entrepreneurship Development
- Companies:
Numerous companies are involved in plastic processing in Sri Lanka, with over 300 companies engaged in the industry
However only few companies are producing the PVC pipes and fitting under one roof with one brand name, Namely S-Lon , National, Anton, Insee, Super PVC by Phonix, Arpico PVC
Environmental Concerns:
Sri Lanka faces challenges in plastic waste management, with a National Action Plan (NAP) in place, according to the GPML Digital Platform.
MAX PVC is already contributing to environment by recycling and producing irrigation or agro products with many other ancillary products in the market.
- Environmental Regulations:
Central environment Authority has given clear guideline to manufacture of PVC pipes and fittings in Sri Lanka
Key Players In the Market
Well Established companies like Central Industries PLC, DSI Samson Group, S- Lon Lanka , Anton PVC and others contribute to the PVC industry in Sri Lanka.
Market Share Analysis by Manufacturer
Basic Requirement for a PVC factory in Sri Lanka
Land
Proposed land extend of 240perch land with building has been selected and negotiated for the proposed project and that location will be ideal for production store and transport the goods island wide.
Building
There should be a building complex to install machinery and store the goods. Approximately 12,000 to 15000 sqft building required for the project initially and that can be used to start production process.
Environment Protection License (EPL)
Central Environment Authority will issue the EPL for the factory according to the CEA guidelines and we have already planned to obtained the necessary license for the production process.
Electricity Supply
3 Phase electricity supply should be available to the factory with a separate transformer with the capacity of 500 Mw, and there should be a separate power generator to have uninterrupted power supply for the factory.
Machineries
2 machines for PVC pipe production and 8 machines should be added to the production flow.
Staff Members
According to the Industry Ministry standard employees should be allocate for each department as follows
| Factory Manager Asst Factory Manager LAB Assistant Electrical Foreman Mechanical Engineer Team Leaders Machine Operators | Accountant Asst Accountant Accounts Assistant Invoice Cleark |
| Marketing Manager Sales Mangers Area Managers Sales Representatives | Procurement Manager HR Manager Transport Manager Security Manager |
Market Analysis
Basic SWOT Analysis
| Strength MAX PVC is currently providing the production in Sri Lanka Existing distribution network Local industry knowledge | Weakness New manufacturer for SLS standard New modern production process |
| Threats Market Leader S-Lon and all other Players Slow growth of construction Industry | Opportunity Development of Agro Industry High volume of drinking (potable) water demand |
Distribution Network
Max PVC is already having distributors to cover the entire island and with the new factory enhancement we will increase the distributors by dominating the area based on the demand and area potential.
To achieve the company animal target of Rs.1.2 billion
Area Demarcation
Province 09
District 25
Main Cities 150
Cost Benefit Analysis
| DESCRIPTION | AMOUNT (LKR) |
| TOTAL INVESTMENT REQUIRED | 900,000,000.00 |
| Land and Building | 200,000,000.00 |
| Machineries | 75,000,000.00 |
| Molds | 75,000,000.00 |
| Electricity | 40,000,000.00 |
| Vehicles | 18,000,000.00 |
| Raw Materials | 150,000,000.00 |
| Constructions | 50,000,000.00 |
| Working Capital | 250,000,000.00 |
| Monthly Sales | 75,000,000.00 |
| Annual Sales | 900,000,000.00 |
| Gross Profit ratio 50% | 450,000,000.00 |
| Annual Pay Back To the Investor 6% | 54,000,000.00 (Plus Profit Share) |