Thailand-based petrochemical company Indorama Ventures aims to sell assets, list businesses
(Reuters) - Thailand-based chemicals company Indorama Ventures plans to shift away from debt-funded acquisitions and list its businesses to fund growth organically, its founder and CEO Aloke Lohia told Reuters on Tuesday.
One of the world's largest petrochemical makers, IVL is in the midst of a "significant pivot" after structural changes in the industry since the pandemic, he said. It aims to lift its earnings before interest, taxes, depreciation, and amortization (EBIDTA) to $2.1 billion by 2026.
"Now we have the scale. We have the assets. The next phase of IVL is built on organic growth," he said in an interview in his Bangkok office.
The comments come after the company posted its worst financial results in 2023, booking losses of $310 million versus profits of $884 million in the year before.
As part of the pivot, the company will bring down debt by $2.5 billion to around $4.3 billion in 2026, sell off non-core assets worth $1.3 billion, and eliminate six high-cost assets mostly in Europe.
IVL will also list some of its businesses to raise funding to service debt. Lohia said its integrated oxides and derivatives business may be listed "somewhere in the West" while its packaging business may be listed in India or elsewhere in Asia, for a total of $1 billion.
Founded in 1994, Indorama Ventures grew its business with 50 acquisitions in the past two decades with a total enterprise value of $10.9 billion, according to its website.
Forbes ranks the India-born Lohia as Thailand's 17th richest with a net worth of $1.96 billion.
The company, which has more than 140 facilities in 35 countries, produces polyethylene terephthalate (PET), the resin used to make plastic bottles. Another major business is IODs, which have a variety of uses in personal care and agriculture.
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