Dhunseri Petrochem and Thailand’s Indorama Ventures Public Company (IVL) have agreed to enter into an equal joint venture (JV) to manufacture and sell PET resins for Indian domestic markets and for exports. Dhunseri will purchase a 50% stake in the 216,000 tonnes Micro Polypet (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 of Dhunseri, with an effective capacity of 480,000 tonnes PET manufacturing located in Haldia, West Bengal. Dhunseri’s PET manufacturing site in Egypt is not included in the deal. The joint venture is subject to regulatory approvals and expected to complete in H2 2016.
This joint venture is a win-win for both producers with 700,000 tonne/annum of combined capacity in the strongest growth market having a population in excess of a billion people as well as having favorable trade agreements with logistically advantaged countries in the region. 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 strong location advantage in the high demand territory of North India.
| Company Name | CMP |
|---|---|
| Redington | 218.50 |
| Adani Enterprises | 2129.55 |
| Amrapali Industries | 17.34 |
| Rashi Peripheral | 425.55 |
| PDS | 289.25 |
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