IVL completes acquisition of India's MicroPet
Indorama Ventures (IVL) today announced the acquisition of Micro Polypet Private Ltd (MicroPet), an Indian manufacturer of polyethylene terephthalate (PET), in the bid to strengthen its foothold in India.
Situated in Panipat district, Haryana state, MicroPet operates a plant north of Delhi which has a capacity of 216,000 tonnes per annum.
MicroPet is the sole PET manufacturer in Northern India and has virtual integration with the Indian Oil Corp (IOCL) for its two major feedstocks -PTA and MEG. Currently MicroPet’s capacity accounts for approximately 12 per cent of India’s total capacity. It utilises melt-to-resin technology that IVL has experience with at its AlphaPet plant in Alabama, the USA.
“This is a unique opportunity for us to establish a foothold in one of the world’s fastest-growing developing economies,” said Aloke Lohia, Group CEO of Indorama Ventures. “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.”
He added that PET consumption in India remained low at 0.6kg per head per annum, compared with 2.6 kg in China and 0.9 kg in the USA.
“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.”
