A major global chemicals producer, Indorama Ventures (IVL) is pursuing a partnership-driven growth strategy under its ‘IVL 2.0’plan, says Aloke Lohia, CEO.
Factors like China's manufacturing self-sufficiency, the impact of Peak Oil, and India's rapid economic growth are driving this change, Lohia adds. Despite ongoing market challenges, IVL managed to improve its operational efficiency in 2024 and aims to restore its historical growth trajectory this year.
While IVL registered an improvement in performance across all segments in 2024, it didn't fully meet its deleveraging and cash conversion targets. To address this, additional management actions are underway.
The company is transitioning from a mergers and acquisitions-focused model to one centered on strategic partnerships. This new approach aims to capitalize on growth and consolidation opportunities. IVL has already initiated several projects, including a 24.9 per cent minority stake acquisition in EPL, an Indian specialty packaging company. This move strengthens IVL's presence in the high-growth Indian market.
Furthermore, IVL plans to spin off its Indovinya downstream chemicals segment and its Indovida packaging unit. These units will operate independently, allowing them to maximize their growth potential.
With a history of over 30 years and 50 acquisitions, IVL has built a substantial global footprint. The company now aims to leverage its existing infrastructure and digital systems to drive further expansion.
Reiterating IVL's commitment to financial discipline and maintaining a strong balance sheet, Lohia explains, the company’s future growth will be achieved by building collaborative relationships with major industry players, leveraging its combined scale. This will help the company secure a dominant position in key markets through these mutually beneficial partnerships.
