Adani Group joins forces with Thai Indorama to accelerate petrochemical expansion

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The Adani Group has partnered with the Thai Indorama to accelerate the expansion of its petrochemical business and build a petrochemical complex in phases, including the largest PVC manufacturing plant in India.

Under the strategic layout of seeking regional expansion, the group led by Indian billionaire Gautam Adani and Thai Indorama Resources Ltd have joined hands to enter the petrochemical field. This cooperation is realized through the joint venture Valor Petrochemicals Ltd(VPL) jointly registered by Adani Petrochemicals Ltd, a subsidiary of Adani Enterprises, and Indorama Resources Ltd, each holding 50% of the shares, marking another important milestone in Adani Group's petrochemical business.

The establishment of VPL aims to build a comprehensive system integrating refining, petrochemical and chemical businesses. According to the plan, the Adani Petrochemicals will advance the construction of a petrochemical complex in Gujarat in a phased manner, covering multiple modules such as a petrochemical complex, a specialty chemical unit, and a hydrogen and related chemical plant. Among them, PVC (polyvinyl chloride) plant as the first project, plans to build 2 million tons of capacity in stages, the first phase of 1 million tons of capacity is expected to be put into production in 2026, the second phase of the same capacity is scheduled to start in early 2027.

this ambitious plan has suffered twists and turns. Construction of the PVC plant was suspended in March 2023 due to financial problems after a negative report by Hindenburg Research (Hindenburg Research), a US short seller, but was able to resume in July of the same year. Adani Group has strongly denied all allegations of financial and accounting fraud.

petrochemical cluster in Mundra, Gujarat, is one of the key projects of Adani Petrochemicals. The PVC factory in the cluster is expected to have a total investment of about 350 billion rupees and is expected to become the largest PVC manufacturing base in India. In addition, the cluster will be supported by wind and solar power plants to ensure self-sufficiency in electricity supply.

Adani Group has previously established a chemical plant in Mundra in cooperation with German chemical giant BASF, but the future direction of this partnership is currently unclear. Nevertheless, the cooperation with Indorama Resources Ltd has undoubtedly injected a strong impetus into the further expansion of the Adani Group in the petrochemical field.

Adani Group is accelerating its petrochemical business layout and expansion through a series of strategic initiatives, aiming to build a more diversified energy and chemical empire.

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