The Adani group will commission the first phase of a $4 billion PVC project by December 2026, making its foray into the petrochemicals sector that is marked by a mismatch between domestic demand and supply, sources said.

Polyvinyl chloride (PVC) — the third-most common synthetic plastic polymer made worldwide — is used to make products such as raincoats, shower curtains, window frames, pipes for indoor plumbing, medical equipment, wire & cable insulation, bottles, credit cards and flooring.

India’s annual PVC demand is roughly 4 million tonne but domestic production capacity is only about 1.5 million tonne, resulting in a supply-demand mismatch. With this disparity between domestic output and consumption expected to widen with an increase in consumption, Adani Group is looking to tap into the sector.

Adani Enterprises, the group’s flagship firm, is setting up a petrochemical cluster in Mundra in Gujarat.

Within this cluster, it aims to set up a PVC plant with a capacity of 2 million tonne per annum, to be executed in phases, two sources with direct knowledge of the matter said.

The initial phase, with a capacity of 1 million tonne per annum, is slated for commissioning by December 2026, they said. The group had in March last year halted the project.

PTI