Indorama Ventures earnings set to surge by 70%

09 May '11

3 min read

Indorama Ventures Limited Plc (IVL) said that it was expecting its revenues during this year to rise by as much as 70% on the back of its increased capacity.

“We are expecting our top line to grow by 70 percent during this year in line with the similar expansion of our capacity,” Aloke Lohia, the Chief Executive Officer of IVL said during the shareholders meeting.

IVL, which has been undertaking various acquisitions across the world over the past few years, has set a target of achieving more than 5.8 million tons of capacity by the end of this year from the 3.2 million tons capacity it had at the end of 2010.

The expansion of the capacity is part of the overall strategy of IVL to expand its capacity to 10 million tons by the year 2014, the company's so called 'Aspiration 2014'.

In line with its objective of achieving 10 million tons capacity, IVL has been undertaking various initiatives across the world and at the current time, the company would have 6.4 million tons of committed capacity by 2012.

“IVL with its currently announced projects would have about 6.4 million tons, this means that there is still 3.6 million tons of capacity that needs to be raised in order to reach the 10 million tons by 2014,” Mr. Lohia said in response to questions asked by shareholders on the future of the company.

He said the other ongoing projects that the firm has in the pipeline, both in terms of organic and acquisitions, the company is confident to be able to achieve its 10 million tons capacity by 2014.

IVL, he said was also benefiting from the rising price of cotton and the shortage of cotton in the world market. This he said has shifted the focus of consumers more towards usage of polyester. Apart from this the recovery of the global economy has helped increase the consumption of polyester related products.

To compliment the company's growing revenue stream, the newly opened state of art plant in the United States, AlphaPet, which will start to show its total contributions to the top line and bottom line starting this year.

Also he added, IVL has managed to integrate the various businesses that it acquired, including what he called a 'tough' one in Italy which IVL acquired last year and has managed to turn it profitable within a few quarters after taking over the firm.

Commenting on the rising oil prices, Mr. Lohia said that IVL has been lucky as it has been able to pass on the rising cost to the customers, therefore the impact on the firm was negligible.

Indorama Ventures Public Company Limited, listed in Thailand is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company's main products are PTA, PETand Polyester fibre, which are distributed across the world. IVL has approximately 5,900 employees worldwide and annual consolidated revenue of $3 billion in 2010.

Indorama Ventures Limited Plc (IVL)

More Indorama Polymers Public Company Limited News... More Textiles News - Thailand...