Indorama buys sole PET maker in Northern India

Thailand-based petrochemicals maker Indorama Ventures Public Company Limited (IVL) has acquired Indian PET manufacturer Micro Polypet Private Limited (MicroPet), to complete what it says was the “missing piece” in its expansion into Asia. Situated in Panipat district, Haryana state, India, the plant is 90 km north of Delhi and has a capacity of 216,000 tonnes.

MicroPet is the sole PET manufacturer in Northern India and has virtual integration with the Indian Oil Corporation (IOCL) for its two major feedstocks PTA and MEG. Currently MicroPet has approximately 12% of the capacity share in India, a country with a population of 1.25 billion. It utilises melt-to-resin technology that IVL has experience with at its AlphaPet plant in Alabama, the US.

Aloke Lohia, Group CEO of Indorama Ventures said, “This is a unique opportunity for us to establish a foothold in one of the world’s fastest-growing developing economies. The acquisition strategically extends our footprint and scale and enhances our relationship with the world’s fast moving consumer goods brands, all of who have their eye on this huge consumer market.”

“We are entering at the early stages of PET usage as just 0.6 kg of PET per annum is consumed in India today compared to 2.6 kg per annum in China and 10.9 kg per annum in the US,” said Lohia.

Lohia also said the acquisition provides opportunity to establish a foothold in one of the fastest growing economies in the world. “It enhances our relationships with global majors serving them in high-priority markets globally with India closing the missing piece of IVL’s Asian puzzle.”

Indorama owns a production facility in Kaiping, Pearl River Delta, China, with a 42% share. It also has three facilities in Thailand and two in Indonesia and this year also acquired Bangkok Polyester. Other acquisitions this year include Polyplex in Turkey and Project Lion 2 in Spain.