Adani forays into petrochemicals

Billionaire Gautam Adani’s conglomerate has partnered with Thailand’s Indorama Resources Ltd. to venture into the petrochemical industry, expanding its portfolio beyond its traditional ports-to-energy focus. Adani Petrochemicals Ltd, a subsidiary of Adani Enterprises Ltd, announced the completion of the incorporation of a joint venture with Indorama, called Valor Petrochemicals Ltd (VPL), as per a filing with the stock exchange.

The joint venture will be equally owned, with both Adani Petrochemicals and Indorama holding a 50% stake. The objective of VPL is to establish a refinery, petrochemical, and chemical business.

Adani Petrochemicals was established with the intent to develop refineries, petrochemical complexes, specialty chemicals units, hydrogen and related chemical plants, and other similar projects in phases. In 2022, Adani Group Chairman Gautam Adani revealed plans to invest over USD 4 billion in a petrochemical complex in Gujarat.

The first project under this initiative will be a 2 million tonnes per year polyvinyl chloride (PVC) plant, to be built in two phases. Phase I involves the construction of a 1 million tonnes PVC facility, expected to be completed by 2026. Phase II, with an equal capacity, is slated for commissioning by early 2027.

The construction of the PVC plant faced delays following the release of a controversial report by US short-seller Hindenburg Research, which raised allegations of financial and accounting fraud within the Adani Group. As a result, work on the project was halted in March 2023 due to financial concerns but resumed in July 2023.