Indorama Ventures Public Company Limited (IVL), the Thailand-based producer of intermediate petrochemicals, has acquired Micro Polypet Private Limited (MicroPet), a polyethylene terephthalate (PET) manufacturer. MicroPet has a manufacturing plant in Panipat (Haryana) with a capacity of 216,000 tonnes.
“This is a unique opportunity for us to establish a foothold in one of the world’s fastest-growing developing economies. The acquisition strategically extends our footprint and scale and enhances our relationship with the world’s fast moving consumer goods brands, all of who have their eye on this huge consumer market,” Aloke Lohia, group CEO of Indorama Ventures.
MicroPet is the sole PET manufacturer in Northern India and has virtual integration with the Indian Oil Corporation (IOCL) for its two major feedstocks - purified terephthalic acid (PTA) and mono-ethylene glycol (MEG). Currently, MicroPet has approximately 12 percent of the capacity share in India, a country with a population of 1.25 billion. It utilises melt-to-resin technology that Indorama Ventures has experience with at its AlphaPet plant in Alabama, USA.
Aloke Lohia added, “We are entering at the early stages of PET usage as just 0.6 kg of PET per annum is consumed in India today compared to 2.6 kg per annum in China and 10.9 kg per annum in the US. Since we are now firmly established in two of Asia’s largest population centers, China and Indonesia, India has been the missing piece of our Asian market access.”