Dhunseri Petrochem completes formation of JV with Thailand's Indorama Ventures

The Kolkata-based Dhunseri Petrochem Ltd (Dhunseri) today announced the completion of equal joint venture partnership with Thailand’s Indorama Ventures Public Company Limited (IVL), a global chemical producer, for polyethylene terephthalate (PET) resins. 

As per the agreement, first announced in February this year, Dhunseri acquired 50 percent stake in IVL’s PET company in India, Micro Polypet Private Limited (MicroPet), and IVL bought 50 percent stake in Dhunseri’s PET company, Dhunseri Petglobal Ltd (DPGL). By combining the two companies as equal partners, the resulting total capacity of 700,000 tonnes per annum will make the new joint venture the second largest in India.

“Dhunseri believes that coming years will bring opportunities for expansion in the petrochemical sector and this JV will bring scale benefits to all stakeholders. The Indian JV will benefit from IVL’s global presence and technological leadership,” commented C K Dhanuka, chairman of Dhunseri Petrochem.

Aloke Lohia, group CEO of Indorama Ventures, said, “Today’s milestone is an important step in driving IVL’s strategic priorities forward while bringing together two leading companies with complementary strengths, brands and experiences. India is a very large country with a well-educated and booming middle class that will embrace the modern, hygienic lifestyle offered by PET packaging.”

The potential for growth in the PET industry in India is significant given that per capita consumption of PET in India is currently at 0.6 kg per annum as compared to 2.6 kg per annum in China and 10.9 kg per annum in the US. The joint venture will gain from significant synergies as being the sole producer of PET resin in Northern and Eastern India and with all its manufacturing sites being effectively integrated with third party PTA (purified terephthalic acid) suppliers. IVL’s global market reach and high utilisation rates are expected to supplement Haldia’s location benefit at Eastern India’s largest port while MicroPet enjoys a strong location advantage in the high-demand territory of North India.