Indorama Ventures announces completion of JV agreement with Dhunseri Petrochem
Indorama Ventures Public Company Limited (IVL), a global chemical producer, announced the completion of joint venture (JV) of IVL’s PET Company, Micro Polypet Private Limited (MicroPet), in India with Dhunseri Petrochem Ltd. (Dhunseri). Simultaneously, IVL has acquired a 50% stake in Dhunseri’s PET Company in India, Dhunseri Petglobal Ltd. By combining the two companies as equal partners, the resulting total capacity of 700,000t/a will make the new JV the second largest in India.
The potential for growth in the PET industry in India is significant given that per capita consumption of PET in India is currently at 0.6kg/a as compared to 2.6kg/a in China and 10.9kg/a in USA. The JV will gain from synergies as being the sole producer of PET resin in Northern and Eastern India and with all its manufacturing sites being effectively integrated with third party PTA suppliers. IVL’s global market reach and high utilisation rates are expected to supplement Haldia’s location benefit at Eastern India’s largest port while MicroPet enjoys a strong location advantage in the high-demand territory of North India.
