Adani teams up with Thailand's Indorama for petchem foray

Billionaire Gautam Adani's group has teamed up with Thailand's Indorama Resources Ltd for a foray into the petrochemical business as the ports-to-energy conglomerate looks to expand in adjacencies.

Adani Petrochemicals Ltd, a subsidiary of the group's flagship Adani Enterprises Ltd, "has completed the incorporation process of a joint venture company namely Valor Petrochemicals Ltd (VPL)... with Indorama Resources Ltd, Thailand," Adani Enterprises said in a stock exchange filing.

Adani Petrochemicals and Indorama will hold 50 per cent stake each in the joint venture.

"VPL is incorporated with the objective to set up a refinery, petrochemical and chemical business," it said.

Adani Petrochemicals was incorporated to set up refineries, petrochemicals complexes, speciality chemicals units, hydrogen and related chemicals plants and other similar units in a phased manner.

Group chairman Gautam Adani had in 2022 stated that the conglomerate is looking to invest more than USD 4 billion in a petrochemical complex in Gujarat.

The firm's first project is a 2 million tonnes PVC capacity to be constructed in a phased manner. While Phase I comprises the development of 1 million tonnes PVC plant by 2026, the second phase of equal capacity will be commissioned by early 2027.

The polyvinyl chloride (PVC) plant construction was delayed in the aftermath of release of damning report by US short-seller Hindenburg Research. The project was halted in March 2023 due to financial concerns but resumed work in July 2023. The halt came after Hindenburg alleged financial and accounting fraud at Adani Group companies.

Adani group has denied all the allegations.

Adani Petrochemicals is developing a petrochemical cluster in Mundra, Gujarat, which includes the PVC plant. The plant, whose total cost is estimated to be around Rs 35,000 crore, is expected to be India's largest PVC manufacturing facility.

The Adani Group had also previously partnered with German chemical giant BASF to set up a chemical factory in Mundra, Gujarat but the fate of that partnership is not known.

The factory will also have wind and solar power plants to meet its electricity needs.