Indorama Ventures Public Company Limited (IVL), a leading global producer of sustainable chemicals, is poised to enter a new era of growth as part of its IVL 2.0 strategy. The company outlined its plans to leverage significant expansion and consolidation opportunities driven by shifts in the global chemical markets, during its annual Capital Markets Day in Bangkok today.
Mr. Aloke Lohia, Group CEO of Indorama Ventures, addressed analysts and investors, highlighting the company’s optimism for the future under its three-year IVL 2.0 optimization plan. The strategy aims to reposition the company amidst macroeconomic changes such as China’s drive for self-sufficiency in manufacturing, the uneven effects of Peak Oil, and India’s rapid economic growth. In line with this strategy, IVL reported an improved full-year EBITDA for 2024, showcasing the success of its focused management in navigating one of the most challenging downturns the industry has seen in recent years.
“We are now a fitter company than when we first launched IVL 2.0, and we’re ready to compete with the best,” said Mr. Lohia. “Our strategy not only prepares us for the current downturn but also aims to restore our historical growth trajectory. We are excited about the opportunities to substantially expand our business as we adapt to seismic, generational shifts in our industry.”
IVL 2.0 Progress and Updates
During the event, senior executives provided updates on IVL 2.0’s progress, emphasizing steps taken to refine operations, optimize assets, and integrate data-driven tools for improved business processes. All segments of the company experienced better performance in 2024, thanks to these strategic initiatives. However, despite these improvements, Indorama Ventures did not meet its deleveraging and cash conversion targets for the year and has acknowledged the need for further management actions to continue advancing its objectives.
Strategic Growth and Partnerships
Indorama Ventures, with over three decades of successful growth, is now shifting away from its traditional M&A-driven strategy. Mr. Lohia outlined several expansion projects that involve strategic partnerships with industry peers, a move designed to leverage the company’s renewed platform, systems, and expertise under IVL 2.0. This new approach aims to build dominant positions and expand scale in high-growth markets, particularly in India.
As part of its strategy, Indorama Ventures recently acquired a 24.9% stake in EPL Limited, an Indian specialty packaging company. This acquisition marks a significant step in the company’s transition to a partnerships-led growth model, which Mr. Lohia explained as a critical element of IVL 2.0.
Additionally, the company plans to spin off its Indovinya downstream chemicals and Indovida packaging units to allow them to operate as independent, high-growth businesses, unlocking their full potential.
Looking Ahead
Indorama Ventures continues to expand its global footprint, building on its past successes, including over fifty acquisitions over the last two decades. With its new partnerships-led growth model, the company remains confident in the organic growth potential of its existing operations, aligned with macro-consumer trends for more sustainable and essential products.
“We’ve transitioned from an M&A-led approach to one that emphasizes strategic partnerships, leveraging mutual scale and network effects,” said Mr. Lohia. “Our growth strategy will be supported by continued financial discipline, including efforts to deleverage our balance sheet.”
