SET-listed Indorama Ventures Plc (IVL), one of the world’s largest petrochemical makers, plans to shift away from debt-funded acquisitions and list some of its businesses to fund growth organically, says founder and CEO Aloke Lohia.
IVL is in the midst of a “significant pivot” after structural changes in the industry since the Covid-19 pandemic, Mr Lohia told Reuters on Tuesday. It aims to lift its earnings before interest, taxes, depreciation and amortisation (EBITDA) to 70 billion baht by 2026.
“Now we have the scale. We have the assets. The next phase of IVL is built on organic growth,” he said in an interview in his Bangkok office.
The comments come after the company posted its worst financial results in 2023, booking a net loss of 10.8 billion baht versus a profit of 31 billion baht in the year before.
The company reported revenue of $15.6 billion, a decline of 17% from the year before, with EBITDA falling 53% to $1.12 billion.
“Full-year results were impacted by the challenging macroeconomic environment, characterised by the Russia-Ukraine conflict, inflationary pressures, high interest rates, and sluggish economic growth in Europe and China,” the company said in a report to the Stock Exchange of Thailand.
As part of the pivot, the company plans to bring down debt by $2.5 billion to around $4.3 billion in 2026, sell off non-core assets worth $1.3 billion, and eliminate six high-cost assets, mostly in Europe.
IVL will also list some of its businesses to raise funding to service debt. Mr Lohia said its integrated oxides and derivatives business may be listed “somewhere in the West” while its packaging business may be listed in India or elsewhere in Asia, raising an expected total of $1 billion.
Founded in 1994, Indorama Ventures grew its business with 50 acquisitions in the past two decades with a total enterprise value of $10.9 billion, according to its website.
Forbes magazine ranks India-born Mr Lohia as Thailand’s 17th richest person with a net worth of $1.96 billion.
The company, which has more than 140 facilities in 35 countries, produces polyethylene terephthalate (PET), the resin used to make plastic bottles. Another major business is integrated oxides and derivatives, which have a variety of uses in personal-care products and agriculture.