Adani Group Ventures into Petrochemical Business with Valor Joint Venture

Adani Group, a conglomerate owned by billionaire Gautam Adani, has partnered with Thailand's Indorama Resources to form Valor Petrochemicals Ltd. The joint venture aims to develop a large petrochemical complex in Gujarat, including a 2 million tonnes PVC plant, overcoming challenges following allegations by Hindenburg Research.

In a strategic move to diversify its portfolio, Gautam Adani's conglomerate has officially partnered with Thailand's Indorama Resources Ltd to delve into the petrochemical sector through the establishment of Valor Petrochemicals Ltd. This joint venture marks the Adani Group's entry into new industrial territories alongside its traditional ports and energy businesses.

Documents filed with the stock exchange reveal that each company holds an equal 50 percent stake in Valor, which plans to build a comprehensive refinery and petrochemical infrastructure. Initially, this will include setting up a 2 million tonnes polyvinyl chloride (PVC) facility in Gujarat, India's biggest, costing approximately Rs 35,000 crore. Phase one of this ambitious project aims for completion in 2026, with the second phase by 2027.

After a temporary suspension due to a controversial report by Hindenburg Research, which accused Adani Group companies of financial misconduct—a claim the group denies—the project resumed in July 2023. Alongside this development, Adani Group's previous collaboration with German giant BASF in Mundra, Gujarat, has met uncertainties, while renewable energy support plans for the facility continue.

(With inputs from agencies.)