M&As: Indorama takes 25% stake in Indian packaging company EPL; BASF buys out Alsachimie jv partner Domo Chemicals

Thailand-based chemical firm Indorama Ventures Public Company Limited (IVL), in a move away from its previous M&A activity, says it is investing in the high-potential Indian market through the purchase of a 24.9% equity stake in EPL Limited from Blackstone. Terms were not disclosed. The completion of the financial investment in EPL, a Mumbai-based specialty packaging company, helps Indorama Ventures take advantage of growth opportunities in emerging markets and build on Indorama Ventures’ existing footprint, it adds.

EPL is the largest specialty packaging company, manufacturing laminated plastic tubes catering to the FMCG and Pharma space. Employing over 3,500+ people representing over 25 different nationalities, EPL functions in 11 countries through 21 manufacturing facilities and is continuing to grow every year.

Indorama Ventures has outlined ambitious expansions plans in a new era of growth. In a departure from its previous M&A-led model, the company is partnering with major industry peers, to explore long-term growth opportunities unlocked by fundamental changes in global markets. Part of the plan is to identify opportunities to leverage Indorama Ventures’ sizeable existing manufacturing operations in India, which currently include PET resins, polyester filaments and yarns, nonwoven fabrics, and ethylene oxide derivatives.

It adds that the minority stake in EPL helps unlock future growth potential, especially considering Indorama Ventures’ existing product offerings and geographical presence.

All of Indorama Ventures’ business segments of combined PET, fibres, Indovinya in India have a significant presence in India, with plans to grow and create a more diversified and resilient portfolio. The company has a successful 35-year track record of identifying adjacent businesses with experienced leadership teams and highly synergistic management cultures and growth paths.

Aloke Lohia, Group CEO of Indorama Ventures, said, “India represents one of the most exciting opportunities in global packaging and chemical markets today, where Indorama Ventures has natural advantages including our existing footprint in diverse businesses. My family’s Indian heritage is also an attribute as we seek to build close partnerships with peer companies in India—many of them family owned—to leverage our mutual scale and capabilities and invest in one of the most dynamic economies in the world. Our stake in EPL aligns with this strategy. Their global reach, innovative high-quality products, focus on sustainability and solid management team make them a natural fit, and our combined deep experience in our respective businesses will drive value immediately.”

Meanwhile in other news Germany-based BASF and Domo Chemicals have signed an agreement giving BASF the right to take over Domo’s 49% share of the Alsachimie joint venture, in which BASF currently holds 51%. According to applicable laws, the intended transaction is subject to consultations with the relevant social bodies of Alsachimie, following which both companies would enter into a binding purchase agreement. Pending these consultations, BASF and Domo Chemicals expect to close the transaction by mid-2025.

For BASF, the 100% ownership of Alsachimie would be a strategic step to complement its footprint at the site in Chalampé, France, its European hub for polyamide (PA) 6.6 precursor production. As the sole owner of Alsachimie, BASF would be able to further strengthen its production setup and maximise backward integration into key raw materials in the PA 6.6 value chain.

“As a key supplier for polyamide 6.6 precursors, it is our priority to ensure the reliable supply in Europe,” said Stephan Kothrade, member of the Board of Executive Directors of BASF SE. “By taking over the shares of our partner Domo Chemicals, we are further strengthening our leading position and long-term commitment to the polyamide 6.6 value chain and paving the way for future growth with our customers in industries such as automotive and textiles.”

Alsachimie was founded in February 2020 as a joint venture between BASF (51%) and Domo Chemicals (49%). The company is located at the French-German border and produces essential precursors for polyamides, including KA-oil, adipic acid and hexamethylenediamine adipate (AH salt).

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