MOSCOW (MRC) -- Thailand’s Indorama Ventures Public Company Limited (IVL) and India’s Dhunseri Petrochem Ltd. (Dhunseri) have agreed to enter into an equal joint venture to manufacture and sell polyethylene terephthalate (PET) resins for Indian domestic markets and for exports, as per IVL's press release.
Dhunseri will purchase a 50% stake in the 216,000 tonne Micro Polypet Pvt. Ltd. (MicroPet), a company owned by Indorama Ventures in the North Indian State, Haryana. IVL in turn will acquire a 50% stake in a carved out entity, called Haldia, of Dhunseri, with an effective capacity of 480,000 tonnes PET manufacturing located in the eastern state of West Bengal.
The JV is subject to regulatory approvals and expected to complete in H2 2016.
The joint venture will gain significant synergy benefits being the sole producer of PET Resin in North and East India and with both sites being effectively integrated with third party PTA suppliers, which will bring savings in SG&A and procurement.
IVL’s global market reach and high utilization 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.
Mr. Aloke Lohia, Group CEO and Founder of IVL said, "This joint venture will allow us to gain the highest benefits by covering a larger geographical area of the fast-growing India market with a complementary and experienced partner. India has a well-educated and booming middle class that will embrace the modern, hygienic lifestyle offered by PET packaging."
As MRC informed previously, in December 2015, IVL announced the acquisition of Indian PET manufacturer Micro MicroPet.
Indorama Ventures Public Company Limited, listed in Thailand, is one of the world’s leading petrochemicals producers, a global manufacturing footprint with 59 sites in 20 countries across Africa, Asia, Europe and North America. The company’s portfolio is comprises necessities and high value-added (HVA) categories of polymers, fibers, and packaging. IVL has about 14,000 employees worldwide and consolidated revenue of USD 7 billion in 2015.
Dhunseri Petrochem Ltd. is one of the largest producers of PET resin in India and among the top ten in the world. The company manufactures the finest bottle grade PET resin, for packaging of drinking water, carbonated soft drinks, edible oil, pharmaceuticals and many more. Dhunseri Petrochem Limited is the Petrochem division of Dhunseri Petrochem & Tea Limited.
MRC