The Adani Group has recently forayed into the petrochemical business by getting into a joint venture with Indorama Resources Limited of Thailand. With this move, the Adani Group takes on Ambani’s Reliance Industries which already has an established presence and has enjoyed dominance in the petrochemical sector for several years. The collaboration of Adani Group on his venture will set an interesting battle with Reliance as the two of the richest men will fight to capture market dominance in this particular business sector. With initiative will also put a stopper to the controversies of Adani Shares Overleveraged which have been ongoing for quite a while now.
Adani’s Decision To Foray Into The Petrochemical Sector:
The Gautam Adani-led Adani Petrochemicals has taken up the decision to foray into the refinery and petrochemical business in a joint venture with Indorama Resources. Adani Petrochemicals will be holding 50% stakes in Valor Petrochemicals Limited. This is a newly incorporated company which has been registered with the Registrar of Companies, Mumbai. As per the news, Adani Enterprises has already completed the incorporation process of the joint venture.
VPL has been mainly incorporated with the objective to set up a refinery, petrochemical, and chemical business. Indorama which already happens to be a global leader in the petrochemical sector specialises in producing fertilizers, fibres, polymers, and medical gloves. The joint venture has plans to establish a 3.2 million-ton Purified Terephthalic Acid facility in Maharashtra. It will also provide upstream and downstream integration with an investment of approximately 3 billion USD.
Why Collaborate With Indorama Resources?
Indorama is one of the largest petrochemical producers globally. It operates in over 35 countries and is originally based out of Thailand. It is also one of the largest producers of integrated polymer products. Adani Enterprises has been the flagship company of the Adani Group. It is also an incubator for several businesses for the Adani Group. Earlier, Adani Enterprises had made plans to make investments worth 4 billion USD in a petrochemical complex in Gujarat. This involves plans to develop a 2 million tons per annum polyvinyl chloride plant. With this step, the Adani Group’s hold over this particular business sector will increase. It will also be able to establish itself as one of the key players in this particular business sector.
The Competition With Ambani To Acquire Dominance In The Petrochemical Sector:
Following the incorporation of the new subsidiary, Adani Enterprises’ share values rose as much as 2%, causing the controversies of Adani Shares Overleveraged to subside. This move is also seen as an extraordinary measure taken by the Adani Group towards further increasing its revenue generation and enhancing control over its business operations. With the latest venture taken up by the Adani Group in the petrochemical sector, the Adani Group has set its foot into a sector where Mukesh Ambani’s Reliance Industries has already enjoyed dominance for several years now.
This collaboration of Thai’s Indorama with the Adani Group will trigger a battle between two of the biggest business tycoons in India. We will also get to witness extraordinary growth and development being brought about in the petrochemical sector. This will reduce our dependence on imports. We will also be able to ensure that our country experiences an overall economic growth and prosperity. Multiple job opportunities will open up. The people will also be able to witness an overall upliftment in their living standards.
The Current State Of India’s Petrochemical Industry:
India’s petrochemical industry is currently facing rapid expansion. The market is expected to grow from INR 18.48 lakh crore to INR 25.20 lakh crore by 2025. This growth will offer multiple opportunities for industrial players to enhance their presence in this particular business sector. It will also intensify competition between the big players. Our country’s hold over the global petrochemical sector will increase. It will contribute to enhanced economic growth and prosperity for our nation. The Adani Group will also be able to recover from the losses brought upon its business when the controversies of Adani Shares Overleveraged were ongoing.
Conclusion:
By teaming up with Indorama Resources Limited, the Adani Group has traditionally positioned itself to claim a substantial share of the blooming petrochemical market. The move has also set the stage for a direct challenge to Mukesh Ambani’s Reliance Industries. The rivalry between these industrial powerhouses will influence the growth trajectory of India’s petrochemical sector.
