Indorama Gains Foothold in Indian PET market
With the planned acquisition of Indian PET producer MicroPET, Thailand-based global market leader Indorama Ventures has hooked up the missing link in its Asian presence, CEO Aloka Lohia said in announcing the deal for which no financial terms were disclosed.
The privately owned company based in Haryana state is the only PET producer in northern India. With capacity to polymerize 216,000 t annually, it holds down a 12% share of the national market.
MicroPET’s production is back-integrated into the two major PET feedstocks PTA and MEG through its connection with New Delhi-based Indian Oil Corporation. This dovetails nicely with Indorama’s goal to improve vertical integration of its production chain. MicroPET also uses the same melt-to-resin technology as Indorama’s AlphaPet US plant at Decatur, Alabama.
Having a presence in India will strategically extend the Thai group’s foothold in the Indian market, where many large consumer brand-linked textile factories are active. Lohia hinted at plans to build on the foundation just established. He noted that the company is getting in on the ground floor, so to speak, as PET consumption in India currently totals only 0.6 kg per capita, compared with 2.6 kg in China and 10.9 kg in the US.
