Reliance Industries, IOC to gain from Budget move on PVC, naphtha

Analysts with Prabhudas Lilladher expect the hike in PVC customs duty to help improve RIL's earnings

The proposal in the Budget to increase the Customs duty on polyvinyl chloride (PVC) while reducing those on naphtha and ethylene di-chloride (EDC) is expected to benefit Reliance Industries (RIL), Indian Oil Corporation (IOC) and others in similar business segments.

The Finance Bill proposes to raise the duty on PVC from 7.5 per cent to 10 per cent, to reduce that on naphtha to four per cent from the existing five per cent and on EDC to nil from the earlier 2 per cent. These changes are expected to improve realisation and reduce feedstock prices for PVC makers and naphtha-based