India-based petrochemical firm Indorama Ventures has acquired polyethylene terephthalate (PET) manufacturer Micro Polypet (MicroPet), marking its entry into the country's PET market.
Awaiting necessary legal approvals, the acquisition has been done via the firm's subsidiary Indorama Ventures Global Services, which has signed a share purchase agreement for the firm.
The agreement entitles Indorama to own 100% of MicroPet assets and its two subsidiaries Sanchit Polymers and Eternity Infrabuild in India, reports Dealstreetasia.
MicroPet operates from its centre at Panipat district in Haryana, India, and is the sole PET manufacturer in the northern parts of the country.
The firm uses melt-to-resin technology for its products and has a yearly production capacity of 216,000t.
It maintains virtual integration with the Indian Oil Corporation (IOCL) for its two major feedstocks PTA and MEG, the company stated. MicroPet currently has around 12% of the capacity share in India.
Indorama Ventures CEO Aloke Lohia said: "This is a unique opportunity for us to establish a foothold in one of the world's fastest-growing developing economies.
"The acquisition strategically extends our footprint and scale and enhances our relationship with the world's fast moving consumer goods brands, all of who have their eye on this huge consumer market.
"We are entering at the early stages of PET usage as just 0.6kg of PET per annum is consumed in India today compared to 2.6kg per annum in China and 10.9kg per annum in the USA.
"Since we are now firmly established in two of Asia's largest population centres, China and Indonesia, India has been the missing piece of our Asian market access."
Image: MicroPet has a yearly PET production capacity of 216,000t. Photo: courtesy of Keattikorn via FreeDigitalPhotos.net.