A $2 billion major deal! This world's largest PET bottle manufacturer is planning to "make moves" in India

Ask AI · Why does Blackstone continue to be optimistic about Indorama’s India operations collaboration?

Thai publicly listed company Indorama Ventures is headquartered in Bangkok and is controlled by billionaire petrochemical magnate Aloke Lohia. The company has agreed to merge its Indian packaging division, Indovida India, with EPL, a company invested in by U.S. private equity giant Blackstone, in a deal valued at $2 billion.

Original headline: “Billionaire Aloke Lohia’s Indorama Ventures to merge its Indian packaging business with Blackstone-backed EPL in a $2 billion deal”

The year before this proposed merger, Indorama had acquired a 24.9% stake in EPL from Blackstone for 19 billion rupees (about $219 million). EPL is listed in India, with a market capitalization of $1.2 billion, producing plastic composite sheets and flexible packaging for pharmaceutical and fast-moving consumer goods industries.

“Merging Indovida with EPL is a logical move that will help us expand our existing footprint into more product formats and markets,” said Aloke Lohia, CEO of Indorama Ventures, in a statement. “With our combined scale, supply chain resilience, and sustainability capabilities, the merged entity will be well-positioned to continuously create long-term value for customers and shareholders.”

The merger is expected to be completed within a year, at which point Indorama will hold a 52% stake in the combined entity, Blackstone 17%, and the remaining shares will be held by public investors. The deal still requires approval from regulators and shareholders. Indorama’s stock surged as much as 9.8% during trading in Bangkok, while EPL’s stock jumped 12% in Mumbai trading.

Post-merger, the company will integrate EPL’s expertise in flexible packaging with Indovida’s PET bottle packaging business. According to Indorama Ventures, the new company is expected to generate approximately $1 billion in annual revenue and will focus on growth in emerging markets.

Lohia resides in Thailand and, according to Forbes real-time data, has an estimated net worth of $1.7 billion, making him one of the wealthiest individuals in the country. The Indian-born entrepreneur’s company, Indorama Ventures, is the world’s largest PET bottle producer by volume. His brother, Sri Prakash Lohia, is one of Indonesia’s wealthiest people and serves as chairman of Indorama Ventures and privately held Indorama Corp., which produces fertilizers and polyolefins used in plastics.

This article is translated from:

Text: Yessar Rosendar

Translation: Elaine

Proofreading: Lemin

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