**Bangkok:** Indorama Ventures has launched its IVL 2.0 strategy aimed at rejuvenating growth amid challenging market conditions. CEO Aloke Lohia details plans for strategic partnerships and operational enhancements as the company shifts focus from mergers and acquisitions to adaptability within the sustainable chemicals industry.
Indorama Ventures Public Company Limited (IVL), a prominent player in the global sustainable chemicals sector, has marked a significant transition in its strategic direction as revealed during its annual Capital Markets Day held in Bangkok. Mr. Aloke Lohia, the Group CEO, introduced the company’s new IVL 2.0 strategy, which is designed to enhance its growth amidst transformative conditions within the international chemical markets.
The event, which took place today, highlighted the ambitious plans IVL has to adapt its operations over the next three years. The company aims to rejuvenate its growth trajectory through a series of innovative measures in response to evolving macroeconomic factors, including China’s focus on manufacturing self-sufficiency, varying effects of Peak Oil on different regions, and India’s accelerating economic growth. Following its latest fiscal report, released on 26 February, the company reported an enhanced full-year 2024 EBITDA, attributing its improved performance to decisive management actions that aim to navigate one of the most challenging downturns faced by the industry in recent history.
Speaking to the audience of analysts and investors, Mr. Lohia stated, “Today, Indorama Ventures is a fitter company than we were when we announced our IVL 2.0 strategy a year ago, and we are now able to compete with the best. Our plan is designed not only to help us re-tool and re-skill to navigate the current downturn—which is expected to persist—but also to restore our historical growth trajectory.” He expressed excitement about the emerging opportunities to enhance the company’s operations as the industry experiences significant shifts.
During the event, senior executives shared updates regarding the progress made under the IVL 2.0 strategy key to the company’s resilience in a challenging market environment. While all sectors reported improved performances in 2024, indicating a successful alignment with their strategic goals, IVL acknowledged that it did not fully meet its deleveraging and cash conversion targets. As a result, the company is implementing further management actions to maintain its momentum towards achieving these objectives.
Indorama Ventures, with over thirty years of experience in fostering growth, is now revisiting its methodology for generating returns as it prepares the next generation of leadership for a rapidly changing industry landscape. Mr. Lohia emphasised a pivotal shift away from the historical model focused on mergers and acquisitions (M&A) towards cultivating strategic partnerships with key industry peers. This push is designed to utilise the company’s robust organisational strengths and expansive systems established under the IVL 2.0 initiative, aiming to solidify its presence in promising markets, with a particular emphasis on India.
Recently, in February, Indorama Ventures acquired a minority stake of approximately 24.9% in EPL Limited, the world’s largest manufacturer of laminated tubes and a leading Indian specialty packaging company. Mr. Lohia indicated that this partnership is a critical element in facilitating the company’s new growth trajectory. Additionally, plans are underway for spin-offs of the Indovinya downstream chemicals segment and the Indovida packaging unit, a move foreshadowed a year prior to allow each to flourish independently.
Today, Indorama Ventures boasts a considerable global footprint and recognised leadership in sustainable markets, resulting from a remarkable period of growth that included approximately fifty acquisitions in the past two decades. Alongside the new partnerships strategy, Mr. Lohia expressed confidence in the inherent growth prospects of its existing operations that align with rising consumer demands for more sustainable products as populations evolve.
Referring to the company’s transformation, Mr. Lohia concluded, “We have already switched from our previous M&A-led mindset to new settings under IVL 2.0 that suit the changed business landscape, and which also suit our company in a new phase in its lifecycle. Now, our growth will come from building close-knit, complementary partnerships with major peer companies, leveraging the ‘network effect’ to take advantage of our mutual scale to secure dominant positions in attractive markets.” He reaffirmed IVL’s commitment to maintaining a financially disciplined approach as it navigates this new business paradigm.
Source: Noah Wire Services
Subscribe to Industry Updates
