IVL Completes the acquisition of Micro Polypet Private Limited
In November 2015, Indorama Ventures Public Company Limited (IVL), a Thailand based company involved in the manufacturing of intermediate petrochemicals had announced to acquire a 100% stakes of Micro Polypet Private Limited (MicroPet), located at Panipat district, in North Indian state of Haryana.
Indorama Ventures Global Services Ltd, a wholly- owned subsidiary of IVL has marked its entry into one of the world’s fastest developing economies, India, by signing an agreement to acquire Micro Polypet Private Limited (MicroPet) and its two subsidiaries Sanchit Polymers Private Ltd and Eternity Infrabuild Private Ltd in India. MicroPet is a Polyethylene Terephthalate (PET) manufacturer with a production capacity of 216,000 tonnes which accounts for about 12% of India's total production capacity. MicroPet has virtual integration with the Indian Oil Corp (IOCL) for its two major feedstocks purified terephthalic acid (PTA) and mono-ethylene glycol (MEG). On December 23, 2015, Indorama Ventures Global Services Ltd successfully completed the acquisition of Micro Polypet Private Limited and its two subsidiaries.
According to TechSci Research, Increased demand for PET resin is driven by replacement of traditional packaging materials like glass, aluminum, paper, metal and growth in FMCG sector. This acquisition will help IVL to penetrate into Indian PET resin market which is growing with over 8 percent growth rate.
The recent report published by TechSci Research on, “India PET & PBT Resin Market Forecast and Opportunities, 2020” depicts that with changing lifestyles and increased preference for the custom food products among Indian population, the manufacturers are shifting their focus more towards attractive and convenient packaging materials. Traditional packaging methods such as glass and metal cans have been replaced by PET bottles which are convenient, light weight, durable in comparison with glass and highly sustainable as it can be easily recycled. PET packaging is highly preferable among the manufacturers as it increases the shelf life of packaged material by offering barrier properties through which oxygen and carbon dioxide rarely penetrate. The above mentioned supporting factors are continuously catalyzing the growth of PET resin market in India.