City-based Dhunseri Petrochem Ltd on Monday said it has completed formation of an equal joint venture with Thailand’s Indorama Group — which aims to create a polyethylene terephthalate (PET) resins behemoth. The partners will manufacture 7,00,000 tonnes per annum (tpa) of PET for the Indian market and exports, making them the second largest manufacturer in the country after Reliance Industries. The two companies had in February entered into a joint venture agreement.
As per the deal, Dhunseri Petrochem’s PET resin business, with its 480,000 tpa plant in Haldia, was transferred to the newly-formed company Dhunseri Petglobal Ltd (DPGL). Indorama Ventures’ subsidiary Indorama Ventures Global Services subscribed to newly issued shares of DPGL by pumping in Rs 418.76 crore. Indorama paid Rs 209.38 per share to buy 50% in this unlisted entity. DPGL, in turn, paid Rs 285 crore to parent Dhunseri Petrochem for transfer of assets, keeping Rs 133 crore for working capital and future expansion. Dhunseri Petrochem used Rs 110 crore to buy 50% in Indorama’s north Indian venture Micro Polypet Pvt Ltd (MicroPet), which produces 216,000 tpa of PET at its Haryana plant.