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Udaipur: Leading pipe manufacturing companies and producers of non-toxic materials for PVC will be closely watched by Dalal Street traders in the coming days after the National Green Tribunal (NGT) asked the government last week to lay down standards against the use of toxic lead material in PVC pipes. Jan Sahyog Manch, an NGO that had filed a petition with the NGT argued that water passing through PVC pipes commonly used in most houses contained toxic materials like lead that is hazardous for human health. Lead is widely used as heat stabiliser in PVC products as it is the cheapest source. Following lab test results that showed high presence of lead in PVC pipes, NGT asked the government to issue standards for use of heat stabilizers in PVC material. The NGT's directive could affect pipe manufacturing companies as well as those producing nontoxic material for use in PVC pipes, analysts said. BSE listed companies including Supreme Industry, Astral Poly, Jain Irrigation and Vikas Ecotech among others make PVC pipes or nontoxic materials. Analysts say the directive could also affect other PVC material manufacturers, including several listed companies in the packaging industry.
"It would be a serious issue for some of the PVC pipe manufacturing companies if government completely bans the use of lead as a stabiliser in pipes," said Purvesh Shelatkar, head of equity, Bank of Baroda Capital Markets. "If companies are holding huge stock of lead or finished material, it will have to be disposed of or remade. But the same ruling may boost prospects of companies manufacturing substitutes for lead to be used in PVC pipes."According to NGO- Jan Seva Manch, " About 50% of India's pvc pipes and other material demand is made by the top five or six companies and will have to source and alternative for lead". The use of lead of pvc manufacturing is a great concern as even while organized players can be control by government, a large business in the segment is done by unorganized players who use lead and managing this could be a problem.

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