Dhunseri Petrochem forms Joint Venture with Thai firm Indorama Ventures

India: Dhunseri Petrochem Ltd., the petrochemicals division of Dhunseri Petrochem & Tea Limited has signed an agreement with Indorama Ventures Public Company Limited (IVL), Thailand based company, to form a 50:50 joint venture for the production and distribution of polyethylene terephthalate (PET) resins. Dhunseri would buy 50 percent stakes in Micro Polypet Pvt. Ltd. (MicroPet), a company owned by Indorama Ventures in Haryana and in turn IVL would acquire 50 percent stakes in Haldia (carved out business entity of Dhunseri). The joint venture would require regulatory approvals and is expected to complete by 2016. MicroPet has a production capacity of 21, 6000 tons and Haldia has an effective production capacity of 4,80,000 tons of PET. Dhundseri-IVL joint venture is a win-win situation for both the companies as it would integrate the production capacities of both the companies and enable them to manufacture 700,000 tons PET per annum.

TechSci Research depicts that the joint venture formation would have synergistic effect on both companies. Global market reach and large customer base of Indorama Ventures is expected to complement 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. This will altogether boost the market growth of PET in India.

According to the recent report published by TechSci Research, “India PET and PBT Resins Market Forecast and Opportunities, 2020”, the PET & PBT resins market in India is expected to surpass USD1.9 billion in 2015 due to its increased demand from various end user industry such as packaging & bottling, automobile and electrical and electronics. With the increasing government focus on domestic manufacturing with “Make in India” tag the demand for PET and PBT resins is further expected to increase in India.