Indorama Ventures Public Ltd. (IVL; Bangkok, Thailand; www.indorama.net) and India’s Dhunseri Petrochem Ltd. (Dhunseri) have agreed to enter into an equal joint venture (JV) to manufacture and sell polyethylene terephthalate (PET) resins for Indian domestic markets and for exports. Dhunseri will purchase a 50% stake in the 216,000-metric ton (m.t.) Micro Polypet Pvt. Ltd. (MicroPet), a company owned by Indorama Ventures in the Haryana, India. IVL in turn will acquire a 50% stake in an entity, called Haldia, based in Dhunseri, with an effective PET manufacturing capacity of 480,000 m.t./year located in the eastern state of West Bengal. The JV is subject to regulatory approvals and expected to complete in H2 2016.
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.”
C. K. Dhanuka, Chairman of Dhunseri said, “Dhunseri believes that coming years will bring opportunities for expansion in the Petrochem sector and this joint venture will bring scale benefits to all stakeholders. The Indian JV between both the organizations will benefit from IVL’s global presence and technological leadership.”