The Adani Group, through its petrochemicals subsidiary, has tied up with Thailand's Indorama Resources to set up a equal joint venture named Valor Petrochemicals (VPL), the company said in an exchange filing.
"VPL is incorporated with the object to set Refinery, Petrochemical and Chemical business," the statement by Adani Enterprises said on January 6.
This joint venture also marks Adani Group's foray into petrochemical sector, and aims to leverage Indorama's expertise in the business. Gautam Adani's ports-to-energy Group had in 2021 floated the subsidiary - Adani Petrochemicals - to set up refineries and petrochemical complexes.
Indorama Ventures, the parent entity of Indorama Resources, is one of the largest petrochemical producers globally, operating in over 35 countries and based out of Thailand. It is one of the world’s largest producers of integrated polyester products and fibers, and a key player in the chemical business.
Adani Enterprises has been the group's flagship company and an incubator for several businesses. Chairman Gautam Adani had in 2022 said that the group is looking to invest more than $4 billion in a petrochemical complex in Gujarat, including plans to develop a 2 million tonnes per annum Polyvinyl Chloride (PVC) plant.
Adani Group's PVC capacity has been planned to be constructed in a phased manner, with the first phase comprising of one million tonnes PVC plant by 2026, and the second phase of equal capacity is expected to be commissioned by early 2027.
Polyvinyl chloride (PVC) – the third-most common synthetic plastic polymer made worldwide – is used to make products such as raincoats, shower curtains, window frames, pipes for indoor plumbing, medical equipment, wire & cable insulation, bottles, credit cards, and flooring.
The Adani Group had in January 2019 signed an initial pact with German chemical giant BASF for investing about 2 billion euros in a chemical factory at Mundra in Gujarat. This was expanded in October that year by involving Abu Dhabi National Oil Company (ADNOC) of UAE and Borealis AG.
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