Thailand-based chemicals company Indorama Ventures plans to shift away from debt-funded acquisitions and list its businesses to fund growth organically, its founder and CEO Aloke Lohia told Reuters.
One of the world's largest petrochemical makers, IVL is in the midst of a "significant pivot" after structural changes in the industry since the pandemic, he said. It aims to lift its earnings before interest, taxes, depreciation, and amortization (EBIDTA) to USD2.1 billion by 2026.
"Now we have the scale. We have the assets. The next phase of IVL is built on organic growth," he said in an interview in his Bangkok office. The comments come after the company posted its worst financial results in 2023, booking losses of USD310 million versus profits of $884 million in the year before.
As part of the pivot, the company will bring down debt by USD2.5 billion to around USD4.3 billion in 2026, sell off non-core assets worth USD1.3 billion, and eliminate six high-cost assets mostly in Europe.
IVL will also list some of its businesses to raise funding to service debt. Lohia said its integrated oxides and derivatives business may be listed "somewhere in the West" while its packaging business may be listed in India or elsewhere in Asia, for a total of USD1 billion.
Founded in 1994, Indorama Ventures grew its business with 50 acquisitions in the past two decades with a total enterprise value of USD10.9 billion, according to its website. Forbes ranks the India-born Lohia as Thailand's 17th richest with a net worth of USD1.96 billion.
The company, which has more than 140 facilities in 35 countries, produces polyethylene terephthalate (PET), the resin used to make plastic bottles. Another major business is IODs, which have a variety of uses in personal care and agriculture.
We remind, Indorama Ventures Public Company Limited, a global sustainable chemical company, has been selected for inclusion in the Dow Jones Sustainability World Index (DJSI World) for the fifth consecutive year and the Dow Jones Sustainability Emerging Markets Index (DJSI Emerging Markets) for the seventh year in a row, said the company. The continued inclusion reflects the company's commitment to sustainability and robust ESG practices. Indorama Ventures ranked in the 92 nd percentile amongst 11 chemical companies eligible for listing out of 89 chemical companies invited, with a Corporate Sustainability Assessment (CSA) Score of 73 out of 100.
mrchub.com