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Engro Polymer and Chemicals Limited (EPCL), Pakistan’s leading PVC manufacturer, is poised for a strong recovery as domestic demand rises and exports expand, reports WealthPk. EPCL remains well-positioned for long-term success in both local and international markets with a focus on innovation and proactive growth strategies. EPCL has played a key role in driving Pakistan’s PVC market growth, which expanded by 8% year-on-year despite economic challenges such as sluggish construction activity and slower GDP growth.

The company maintained steady product availability and introduced targeted incentives, reinforcing its dominant 73% market share across construction, infrastructure, and manufacturing sectors. Furthermore, EPCL is also strengthening its global presence, with exports reaching $13 million in 2024 to markets like Turkey and the Middle East. The company is working with the Trade Development Authority of Pakistan (TDAP) to identify new opportunities for value-added PVC products, with analysts forecasting a potential foreign exchange gain of up to $300 million.

Despite global market challenges, EPCL sustained stable margins through cost efficiencies and benefited from lower ethylene prices, ensuring financial resilience and positioning itself for continued growth in both domestic and international markets. Moreover, EPCL continues to strengthen its market position through innovation and capacity expansion. The company recently completed a Rs10 billion expansion project, increasing its PVC production capacity to 295,000 tons per year to meet rising domestic and export demand.

In addition to enhancing PVC output, EPCL is advancing two key projects including a Hydrogen Peroxide plant and a High-Temperature Direct Chlorination unit. Both initiatives, set to commence commercial operations in the first quarter of 2025, will further diversify EPCL’s product portfolio and revenue streams, reinforcing its position as a leading player in the chemical industry.

However, EPCL is facing increased pressure from rising energy costs and captive gas prices. Therefore, to mitigate the impact on margins, the company is exploring alternative energy solutions and working with government authorities to ensure a stable gas supply. Despite these challenges, EPCL remains focused on sustainability and operational excellence, investing in process safety initiatives to maintain efficiency and long-term growth. EPCL remains optimistic about growth in both domestic and international markets. With increased government spending and declining interest rates, the construction industry is expected to gain momentum in 2025, further boosting PVC demand.

The company sees significant export potential in value-added PVC products and now focuses on innovation, operational excellence, and sustainable growth. Therefore, EPCL is well-positioned for long-term growth, strengthening its leadership while contributing to Pakistan’s industrial and export development with a strategic approach to market recovery and global expansion.

Credit: INP-WealthPk