VPL to Focus on Refinery, Petrochemical, and Chemical Business Development
Adani Group, led by industrialist Gautam Adani, is making its foray into the petrochemical sector. The group has partnered with Thailand’s Indorama Resources Limited to establish a joint venture. Adani Petrochemicals Limited, a subsidiary of Adani Enterprises Limited, and Indorama Resources Limited have collaborated to form “Velor Petrochemicals Limited (VPL).” Both Adani Petrochemicals and Indorama will hold an equal 50-50 stake in the venture.
Objective and Vision of VPL
Velor Petrochemicals Limited (VPL) aims to establish and develop businesses in the areas of refineries, petrochemicals, and chemicals. Adani Petrochemicals was originally established to create infrastructure such as refineries, petrochemical complexes, specialty chemical units, and hydrogen plants. The projects under this venture will be executed in multiple phases.
Investments and Future Plans in Gujarat
In 2022, Gautam Adani announced plans to invest over $4 billion in a petrochemical complex in Gujarat. In the first phase of this project, a PVC plant with a capacity of 1 million tons is expected to be operational by 2026. In the second phase, another unit with similar capacity is planned to be functional by early 2027.
Development of Petrochemical Cluster in Mundra
Adani Petrochemicals is developing a significant petrochemical cluster in Mundra, Gujarat, which includes a state-of-the-art PVC plant. The total estimated cost of the plant is approximately ₹35,000 crore, making it one of the largest PVC production facilities in India. Mundra Petrochemicals Limited was established in 2021 as a wholly-owned subsidiary of Adani Enterprises Limited to set up a greenfield coal-to-PVC plant in the Kutch district of Gujarat.
Previous Collaborations
The Adani Group had previously partnered with German chemical giant BASF to establish a chemical factory in Mundra, Gujarat. This facility also includes provisions for wind and solar power plants to meet its energy requirements sustainably.
Adani Enterprises: A Leader in Business Innovation
Adani Enterprises, India’s largest business incubator, operates in diverse sectors such as energy, infrastructure utilities, transportation, and logistics. The group’s expansion into the petrochemical sector marks another significant step in its mission to drive industrial and economic growth in India.
