Adani Group Partners With Indorama Resources To Enter Petrochemical Sector

Billionaire Gautam Adani's group has partnered with Thailand's Indorama Resources Ltd. to enter the petrochemical sector, marking a strategic expansion into adjacent industries.

Adani Petrochemicals Ltd., a subsidiary of Adani Enterprises Ltd., announced the completion of the incorporation process for a joint venture with Indorama Resources Ltd., naming it Valour Petrochemicals Ltd. Both companies will hold equal stakes of 50% in the joint venture.

The primary goal of VPL is to establish a refinery, petrochemical, and chemical business. Adani Petrochemicals, which was set up to develop refineries, petrochemical complexes, speciality chemical units, and hydrogen plants, plans to roll out these projects in phases.

Adani Petrochemicals was incorporated to set up refineries, petrochemical complexes, speciality chemical units, hydrogen and related chemical 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 $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 a 1 million-tonne PVC plant by 2026, the second phase of equal capacity will be commissioned by early 2027.

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.

(With Inputs From PTI.)

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