Chemplast Sanmar has sought support from the Ministry of Environment and Forests (MoEF) and increased the production capacity of its PVC resin plant at Cuddalorere to 226,000 tons per annum from 17,000 starting tons. Earlier, the company commissioned Business Consulting Group (BCG) to assess the closure of the domestic PVC market. According to the survey, India's future PVC demand is expected to grow at a rate of more than 11%.

At the macroeconomic level, India's low per capita PVC consumption of 0.69 kilograms, compared to China's approximately 1.6 kilograms and the global average of 4 kilograms, suggests potential growth opportunities for Indian PVC.

The survey also shows that there are no structural changes (polymer substitution or elimination of demand drivers) that could weaken demand. HDPE it is the closest competing material as HDPE is about 10 to 15 more expensive than PVC Therefore, it is estimated that no significant internal polymer substitution has occurred in the last few years.

In addition, demand for PVC is expected to continue in the future. Since the pipeline industry accounts for 50% of tallow consumption, the government will continue to invest in water services as many small villages do not have adequate drinking water facilities.

Therefore, the expansion of the PVC plant is justified considering the demand for PVC and the industry experience of the promoters. The company argued that its installed production assets can produce 22,000 TPA and underutilization is not in the interest of the State.

Chemplast Sanmar has set up a plant at Cudalore with a capacity to produce 17,000 technical units of TPA PVC resin per annum using Ineos Vinyls, UK. In September 2009, the plant started operation.