Chemicals, fibres and woollen yarns conglomerate Indorama Ventures has invested INR29.88bn (US$43.2m) in a 31.79% stake in India-based polyester fibre maker Indo Rama Synthetics, in a move that provides it with access to a large domestic market.
Indo Rama Synthetics (India) Limited (IRSL) is a fibre manufacturing facility located in Nagpur, Maharashtra state, India, with a combined capacity of 605,000 tonnes/ annum, consisting of polyester chips, fibres and filament yarns.
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IVL said IRSL is a “strong strategic fit” with its fibre strategy in home and apparel where the company focuses on building a low-cost position in Asian operations and leveraging innovation in high-margin growth markets. Its new local presence in the Indian market will also give duty and logistical benefits.
“This strategic investment is another step in executing our strategies to position IVL for sustainable growth,” explains Aloke Lohia, group CEO of Indorama Ventures. “India has been on our radar for some time. It is the only large domestic market for fibres where we are not present. The market for fibre in India is expected to grow exponentially and is still largely untapped.
“India is the largest textile market and IRSL has a key position. The strategic investment is expected to grow shareholder returns. This market has a large, untapped potential that will be highly lucrative as it expands.
“As a company listed in the Dow Jones Sustainability Index, we put the circular economy and sustainability as a priority. We will bring our knowledge and expertise of recycling to play a role in the creation of awareness and practices thus protect the environment and society.”
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By GlobalDataIndorama Ventures most recently took its first step in the fibres business in Brazil with the acquisition of M&G Fibras Brasil. And in October last year it bought European wool and wool-blend worsted yarn producer Schoeller Immobilien und Beteiligungs GmbH, expanding its presence in Europe.
