Indorama Ventures to invest USD 150m in three PET recycle plants in India
Sep 12, 2023
Bangkok-headquartered and Indian majority-owned Indorama Ventures Public Co Ltd is investing USD 150 million in three PET recycling plants in India, aiming to start commercial production in 2026.
"We have obtained basic regulatory approvals and land acquisition is going on nearer to our three existing PET-producing plants at Haldia, Nagpur and Panipat," Indorama Ventures Group CEO Aloke Lohia told PTI of the investment plans on the sidelines of the 21st Forbes Global CEO Conference on Tuesday.
Recycled PET from the three plants will supplement Indorama Ventures' current 800,000 tonne/year PET production for the Indian and export markets.
PET is durable and can be recycled multiple times.
He explained the need to increase the use of recycled PET, supporting global initiatives to reduce the use of making new products out of fossil fuels.
Noting the Indian economy's high growth, Lohia is bullish about business prospects in India, especially the manufacturing sector and the government-led export promotion initiatives.
Lohia is focused on scaled production in India, pointing to the insatiable local demand and export potential.
Lohia singled out airbags for automobiles.
"We have the technology and base material nylon and polyester that is used to make airbags, which are mandatory in automobiles in western markets."
Indorama Ventures' executives are consulting Indian original equipment manufacturers of advanced technology-based auto components. Investment potential is being evaluated, which would be scaled for domestic and export markets.
"We will want to do more than just replace imports of components, such as airbags, that are used by automobile manufacturers in India." Lohia expects demand for products made with advanced technologies to pick up in the Indian market as the country progresses economically and accelerates industrialisation programmes.
"We started in India about six years ago and are confident of prospects given the bright market outlook and the opportunities for growth," he said.
"There are so many applications in the automobile industry," Lohia elaborated on the business growth opportunities.
Indorama Ventures, a global chemical company with operations in 35 countries built over three decades, is the world's leading manufacturer of PET and recycled PET. Its mobility fibre business produces a range of fibres and yarns used in the auto industry, which are developed and deployed widely in the United States, Europe and elsewhere.