Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, is preparing for a new era of growth under its IVL 2.0 strategy. The company has announced a shift towards strategic partnerships with industry leaders, positioning itself to capitalise on expansion and consolidation opportunities in the evolving global chemical markets.

At the company’s annual Capital Markets Day in Bangkok, Aloke Lohia, Group CEO of Indorama Ventures, highlighted the company’s progress under the three-year IVL 2.0 optimisation plan. He explained how macroeconomic forces, such as China’s push for manufacturing self-sufficiency, the impact of Peak Oil, and India’s rapid economic expansion, are reshaping the industry. Indorama Ventures, having improved its performance in 2024, aims to restore its historical growth trajectory despite ongoing market challenges.

“Today, Indorama Ventures is a fitter company than we were when we announced our IVL 2.0 strategy a year ago, and we are now able to compete with the best. Our plan is designed not only to help us re-tool and re-skill to navigate the current downturn but also to restore our historical growth trajectory,” said Lohia.

The company has taken decisive steps to optimise its business processes, enhance operational efficiency, and drive sustainable earnings growth. Despite improving performance across all segments in 2024, continued industry pressures meant IVL did not fully meet its deleveraging and cash conversion targets. Consequently, additional management actions are being taken to sustain progress towards its objectives.

Indorama Ventures is now shifting from a mergers and acquisitions-led model to a new expansion strategy focused on collaborative partnerships. Several projects are already in the pipeline, with the company aiming to consolidate its position in high-growth markets, including India. In February, Indorama Ventures acquired a 24.9% minority stake in EPL Limited, an Indian specialty packaging company and the largest global manufacturer of laminated tubes. This move aligns with IVL 2.0’s objectives and strengthens the company’s presence in India.

Additionally, Indorama Ventures is planning to spin off its Indovinya downstream chemicals segment and its Indovida packaging unit. These entities will operate as independent high-growth businesses, maximising their potential within their respective industries.

With over 30 years of expansion and 50 acquisitions, Indorama Ventures has established an extensive global footprint. The company’s new approach will leverage its existing platform, processes, and digital enterprise systems to drive further growth. Lohia reiterated the company’s commitment to financial discipline, maintaining a strong balance sheet, and securing dominant positions in key markets through strategic partnerships.

“We have already switched from our previous M&A-led mindset to new settings under IVL 2.0 that suit the changed business landscape. Now, our growth will come from building close-knit, complementary partnerships with major peer companies, leveraging the ‘network effect’ to take advantage of our mutual scale,” Lohia added.

Recordings of Capital Markets Day on 5 March will be made available in English and Thai on the company’s website.

www.indoramaventures.com