Indorama Ventures has bought 30 per cent of Indo Rama Synthetics’ enlarged share capital.

Indo Rama Synthetics is a fiber manufacturing facility located in Maharashtra. This facility has a combined capacity of 6,05,000 tons per annum, consisting of polyester chips, fibers and filament yarns. This strategic investment provides Indorama Ventures entry into a large domestic market where local presence gives duty and logistic benefits. India is the largest textile market and Indo Rama Synthetics 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.

Indorama Ventures has already invested in India over three years in the PET business. India is the second largest polyester market in the world after China with consumption growing at about seven per cent per annum. India’s per capita consumption of polyester is about three kg, compared to 14 kg in China. This low level per capita consumption is expected to increase along with the rise in India’s per capita GDP, which will provide affluence-related consumption and opportunities for growing into more functional and high value-added products. Indorama Ventures is in a strong position to benefit from this evolving trend, backed by its strong R&D capabilities.