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Indorama Resources Limited: Gautam Adani’s plan may create trouble for Mukesh Ambani in 2025. Yes, Adani Group has started working to strengthen its hold in the petrochemical sector. Adani Group has signed an agreement with Thailand’s Indorama Resources Limited to enter the petrochemical business. Business groups ranging from ports to power sector have taken this step with the aim of expanding in their respective sectors.
Adani and Indorma have 50-50 stake in the joint venture.
Adani Petrochemicals Ltd, an affiliate of group parent Adani Enterprises Ltd, has agreed to form a joint venture company called Valor Petrochemicals Ltd (VPL) with Thailand’s Indorma, Adani Enterprises said in a stock exchange filing. , The resource limited process has been completed. Adani Petrochemicals and Indorama will have 50-50 percent stake in the joint venture.
Adani Petrochemicals, to set up refineries, petrochemical complexes, specialty chemicals units, hydrogen and allied chemical plants and other related units in a phased manner Investment plan of over $4 billion Has been prepared. Group Chairman Gautam Adani had said in 2022 that the group wants to invest more than four billion dollars in a petrochemical complex in Gujarat. The company’s first project is a 20 lakh tonne capacity PVC (polyvinyl chloride) unit. It will be constructed in phases.
10 lakh tonne capacity plant will be developed by 2026
In the first phase, a PVC plant with a capacity of 10 lakh tonnes will be developed by 2026. After this, in the second phase, a unit of similar capacity will be commissioned in the beginning of 2027. Construction of the polyvinyl chloride plant was delayed after a report by American investment company Hindenburg Research was released. The project was halted in March 2023 due to financial concerns but work resumed in July 2023.
Adani Petrochemicals in Mundra, Gujarat at Rs. It is developing a petrochemical complex at an estimated cost of Rs. 35,000 crores. This also includes PVC plants. The total cost of construction of this plant is approximately Rs 35,000 crore. It is expected to be the largest PVC manufacturing facility in the country. The new company has been registered on 4 January 2025 at the office of the Registrar of Companies in Mumbai.
What kind of challenge is this for Ambani?
Reliance Industries is India’s largest manufacturer of petrochemical products. Now Adani Group’s new company VPL is also entering this area. This means that now Reliance and Adani will face each other in the petrochemical business. The new company of Adani Group has started this business in collaboration with Indorama Resources Limited of Thailand. Both the companies together are preparing to compete with Reliance. There is a huge market for petrochemicals in India and it is continuously growing. This market is expected to grow larger in the next few years. Therefore both Reliance and Adani are focusing on this market. According to PIB report, by 2025 this business in India will be worth Rs 20 crore. ₹25.20 lakh crore ($30,000 crore). At present its size is Rs 18.48 lakh crore.