The controversy-ridden Indian corporate biggie Adani Group is foraying into the petrochemical sector in collaboration with Thailand-based Indorama Resources Ltd.
Adani Petrochemicals Ltd, a subsidiary of the group’s flagship Adani Enterprises Ltd, completed the incorporation process of a joint venture company namely Valor Petrochemicals Ltd (VPL) with Indorama Resources Ltd, Thailand, Adani Enterprises said in a stock exchange filing.
Adani Petrochemicals and Indorama will hold a 50 per cent stake each in the joint venture.
“VPL is incorporated with the objective to set up a refinery, petrochemical and chemical business,” the company said in the exchange filing, PTI reported.
Adani Petrochemicals was incorporated to set up refineries, petrochemicals complexes, speciality chemicals units, hydrogen and related chemicals plants and other similar units in a phased manner.
Group chairman Gautam Adani had in 2022 stated that the conglomerate was looking to invest more than $4 billion in a petrochemical complex in Gujarat.
The firm’s first project is a 2 million tonnes polyvinyl chloride (PVC) facility to be constructed in a phased manner.
The construction of the PVC plant, however, was delayed following the release of the damning report by US short-seller Hindenburg Research.
The project was halted in March 2023 due to financial concerns after Hindenburg alleged financial and accounting fraud at Adani Group companies.
Adani group has denied all the allegations.
Work on the project reportedly resumed in July 2023.
Adani Group had also previously partnered with German chemical giant BASF to set up a chemical factory in Mundra, Gujarat but the fate of that partnership is not known, the PTI report said.
Follow us on
