Adani Petrochemicals Ltd, under the umbrella of Adani Enterprises, has strategically expanded its reach in the petrochemical sector through a collaboration with Thailand’s Indorama Resources Ltd., the parent company of Indorama Ventures Public Company Limited (SET: IVL).
This partnership forms a 50:50 joint venture named Valor Petrochemicals Ltd (VPL), aiming to establish and operate a series of refineries, petrochemical complexes, and chemical plants.
The initial endeavor of this ambitious collaboration is the development of a substantial two-million-ton polyvinyl chloride (PVC) plant located in Gujarat. This project marks a pivotal move for Adani, underscoring its expanding footprint in the burgeoning petrochemical industry. The construction will proceed in two stages, with the first phase slated for completion in 2026, featuring a one-million-ton PVC output. The full-scale expansion with Phase II is targeted for early 2027.
Adani Group’s venture mirrors its broader strategic initiative to diversify business operations into new industrial areas. Previously, they unveiled plans to inject over $4 billion into a vast petrochemical complex at Mundra, which is projected to become the leading PVC production hub in India, underpinned by an investment of Rs 35,000 crore.
Despite encountering obstacles in 2023 due to allegations from Hindenburg Research based in the U.S., which temporarily stalled the project, Adani Petrochemicals has recommenced development activities. The company remains optimistic about the project’s success, attributable to its resilient strategies and dedication.
The upcoming PVC facility will incorporate renewable energy solutions, utilizing wind and solar power to fulfill its energy needs. This sustainable initiative aligns with the global shift towards eco-friendly industrial operations. Furthermore, Adani Petrochemicals is advancing a petrochemical cluster in Mundra, reinforcing its standing in India’s dynamic petrochemical sector.
This partnership with Indorama epitomizes Adani’s commitment to reinforcing its market position and responding to the surging demand for sophisticated chemical products.
