Adani and Indorama Join Hands to Reshape Petrochemical Market

Adani Group recently partnered with Thailand-based Indorama Resources to add a new milestone in the Refinery, Petrochemical, and chemical sectors. Adani Enterprises Limited AEL and Indorama Company entered into a 50-50 JV to set up Valor Petrochemical Ltd (VPL), which significantly impacts the global petrochemical business.

A regulatory filing by AEL states, "has completed the incorporation process of a joint venture company, namely Valor Petrochemicals Ltd (VPL) with Indorama Resources Ltd, Thailand." The project's first initiative will be a 3.2 million-ton Purified Terephthalic Acid (PTA) plant in Maharashtra, supported by an intended investment of around $3 billion. Insiders involved in the development disclosed that the initiative will continue to investigate upstream and downstream integration moving forward with prospective projects, one of which is located in Mundra.

The company further added, "VPL is incorporated with the object to set up a Refinery, Petrochemical and Chemical business." Ndorama Ventures Public Company Limited, based in Thailand, ranks among the largest petrochemical manufacturers worldwide, functioning in three main areas: CAGR with combined PET, Indovinya, and Fibers.

The group's flagship company is Adani Enterprises, which has diversified its business into various segments, such as airports, aerospace, defense, data centres and solar power and production. More recently, AEL stated it is exiting a 25-year, $2bn joint venture with Wilmar International to focus on sectors such as energy, utilities, transport and logistics, which are deemed more critical infrastructural segments.