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Billionaire Aloke Lohia-controlled Indorama Ventures Ltd, an industry-leading global sustainable chemical company, has decided to merge its Indian packaging business unit, Indovida India, with US private equity giant Blackstone-backed EPL Ltd in a US$ 2 billion deal. The proposed merger comes a year after Indorama Ventures acquired an initial 24.9 percent stake in EPL from Blackstone for Rs 1,900 crore (US$ 219 million).
Rebranded as EPL Ltd in October 2020, EPL, formerly Essel Propack Ltd, is a global leader in specialty packaging, specializing in the manufacturing of laminated and extruded plastic tubes for industries such as oral care, cosmetics, pharmaceuticals, and home care. Bangkok-based Indorama Ventures has diversified international businesses integrated across the petrochemical value chain. The company’s footprint spans manufacturing operations at 114 locations in 32 countries, with market-leading positions in Asia-Pacific, Africa, Europe, and the Americas.
Aloke Lohia, Group CEO of Indorama Ventures, said in a statement, “Combining Indovida with EPL is the logical next step and enables us to extend that foundation across formats and markets. With our combined scale, supply chain resilience, and sustainability capabilities, the merged entity is well positioned to deliver long-term value to customers and shareholders alike.”
Post-merger rejig
The proposed merger is subject to regulatory and shareholder approvals and is expected to be completed within a year. Indorama Ventures will hold a 52 percent stake in the combined entity after the merger, which is expected to be completed within a year. Blackstone will own 17 percent, while the remaining shares will be held by public and institutional investors.
The merged company will combine EPL Ltd’s expertise in flexible packaging with Indovida’s PET (plastic bottle) packaging business. Together, the new entity is expected to generate about US$ 1 billion in annual revenue and will focus on growth in emerging markets, according to Indorama Ventures.
Customer touch
Indorama Ventures delivers indispensable chemistry to its customers, including major household brands, to produce daily consumer necessities that touch billions of lives every day. The company’s business segments—combined PET and packaging, Indovinya, and fibres—serve customers across diverse growth markets, including food and beverages, automotive, pharmaceuticals, textiles, home and personal care, and agrochemicals. In 2024, the company recorded revenue of US$ 15.4 billion.
Indorama Ventures is the world’s largest producer of PET bottles by volume, with a total of 114 manufacturing operations across 32 countries. By 2022, it processed 15.4 billion recycled PET bottles annually and employed approximately 25,000 people.
Associate business
His older brother, Sri Prakash Lohia, one of Indonesia’s wealthiest individuals, is the chairman of Indorama Ventures as well as privately held Indorama Corporation, a maker of fertilizers and polyolefins used in plastics manufacturing.
With a market capitalization of US$ 1.2 billion, India-listed EPL Ltd manufactures plastic laminates and tubes for customers in the pharmaceutical and fast-moving consumer goods industries. Formerly part of the Essel Group and now owned by Blackstone Inc, EPL is the world’s largest specialty packaging company, producing over 8–9 billion tubes annually.
With over 21 manufacturing facilities across 11 countries, including the United States, Mexico, Germany, Egypt, China, and India, Mumbai-headquartered EPL produces laminated tubes, plastic tubes, caps, closures, and dispensing systems, among other products. The company focuses on sustainable packaging, including recyclable tubes (Platina) and post-consumer recycled (PCR) content.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
