As a chemical company from Bangkok, Indorama Ventures Public Company Limited (IVL) is a global integrated leader in PET and fibers. Now, they are operating 101 operating sites, in 31 countries across 5 continents.
‘Our ambition is to be one of the top 20 world class chemical companies, operating with integrity and in a sustainable manner. I believe we are somewhere in the 40s now.’ says Sanjay Ahuja, President and Group CFO of Indorama.
PET polymers, polyester fibers, and other high-value chemicals manufactured by IVL now have a global footprint. Today, one out of four tyres in the world are made from their fabrics. One out of four airbags are made of IVL yarns.
Headquartered in Thailand, one of the fastest-growing countries in ASEAN, Sanjay believes that ASEAN is a big opportunity for the growth of Indorama. ‘ASEAN has a population of 600 million people and growing. People move towards urbanisation, wanting to change their lifestyles. That means higher demand for our products.’
With their presence in ASEAN, Indorama can not only access different countries easily with minimal logistical costs, but can also achieve synergies by sharing corporate services. These opportunities have brought Indorama beyond ASEAN. ‘The future of oil is in chemicals, not in fuels,’ Sanjay explains, ‘with gasoline demand going down, we expect crude-to-chemical complexes dominating the petrochemical sector. So the petrochemical sector has more room to grow. And we expect IVL to grow with that.’
But that’s not all for Indorama. As a high growth company, Indorama is going even further through acquisitions. ‘We have a successful track record of integrating acquisitions which were a major part of our global expansion. We now have almost 60 nationalities working for IVL in our 20,000 global workforces.’
While the process of acquisition requires massive research and complex business negotiations, Sanjay believes in the collaboration between IVL and HSBC. ‘One example is that, we signed up a transaction in India. But before closing the deal, the business needed certain capital to continue the business. After our discussion with HSBC, HSBC understood our situation and eventually provided the necessary capital to the business for their continuity.’
Through 20 plus years of partnership, HSBC has always been their support along their journey. ‘HSBC has been a partner to us since our growth phase. HSBC and IVL relationship is very similar to what IVL has it with its customers. The bank understands our business model and is able to provide us with the growth capital at a very short notice.’
In the fast-changing digital landscape, Indorama has evolved through time. They have pursued industry 4.0, adopting machine learning which has helped them enhance efficiency in operations as well as supply chain processes. ‘In fact, HSBC has also helped us with their digital capabilities.’ The path towards global expansion is not easy, but HSBC is aspired to support their growth. ‘They also provide us with global access to our accounts, so that we can perform foreign transactions and other trade transactions at ease. That also allows us to increase the visibility and control over our finances all over the world.’
The future of Indorama isn’t just about digital transformation, but also driving sustainability through innovation. ‘In the world of plastics, we are actively working with the industry associations and customers to reiterate the importance of recycling and life assessment of PET.’
Partnering with two startups proficient at chemical recycling technology, Indorama is looking to set foot in a wider range of PET recycling processes. ‘While we will help them commercialise their technologies, we will work on our assets to convert PET back from the PET wastes.’
Looking into the future, Sanjay reaffirms Indorama’s commitment to sustainability and ethical behavior. ‘We are actively working with the industry associations and customers to reiterate the importance of recycling and life assessment of PET.’