building a polyester giant
Despite Thailand\'s ban on smoking in the air, paneling offices in Bangkok-
Plastic bottles and cans were scattered in the room, photos of the chemical plant and the shrine of Ganesh (
Half Elephant, half boy, Hindu God of obstacle promoters).
A company video was played in the background, praising the advantages of polyester fiber (
Recyclable 100%, 52% higher carbon efficiency than glass or metal)
Singing lyrics like flying like a bird, we will soon become the most respected company in the world.
\"Maybe stretching, but there is no doubt that polyester is perfect for Lohia.
He has been a pet for more than ten years (
A resin used to make plastic for everything from toothbrush to car interior to water bottle.
His listed company is $1. 2 billion (2008 sales)
Now the second in the world.
The largest pet producer, by capacity, is second only to Italy\'s M & G.
Lohia and his family have a 75% stake in the company, recently valued at $0. 375 billion, held mainly through their private company, Indorama Ventures, which also produces polyester fiber and fine
Lohia is managing director of Indorama Polymers and chief executive of Indorama Ventures.
In the past year, Indorama Ventures has acquired three factories that produce refined benzene diacid. PTA)
Raw materials for Pet and polyester fiber.
On September, he flew to Decatur, Alabama, to open the latest pet factory for his public clothing company, which cost $0. 2 billion and is the largest pet factory in North America.
It is by far the biggest market. -
Americans will use an average of 20 pounds pets per person this year (
See table below)--
Lohia expects it will also be the most profitable business for the company.
Next, he plans to merge the two companies into one of the world\'s leading integrated polyester manufacturers.
According to the restructuring announced this fall, Indorama Ventures will bid on all Indorama Polymers shares it does not own.
Prior to regulatory approval, the company plans to list $2 after the merger. 7 billion (2008 sales)
The company was listed on the Thai stock exchange in 2010.
Loya and his family will have 80% of the combined company, estimated to be worth at least $1 billion.
Behind his bold move is that his company has been outperforming its competitors during the economic downturn, in part because he only focuses on producing polyester products, and his strategy to acquire troubled factories and update existing ones.
Other pet manufacturers are forced to cut production--
The industry is expected to cut capacity by 5% this year. -
Indorama polymer increased pet capacity by 45%.
\"The location of Indorama is very good.
\"Their facilities are updated, they are technically good, and they are in the right size,\" said Vichitr Kulajkhuna, an analyst at Dbs Vickers Securities . \".
\"He focuses on streamlining and creating efficient plants,\" added Robert genovis, head of the North American aromatic business at BP, a supplier to Indorama.
In fact, in order to reduce the cost of transportation, Loya built his Alabama plant next to the BP plant.
At the same time, some competitors are struggling. U. S.
Pet maker weelman filed for bankruptcy in February 2008.
It appeared a year later.
On 2008, La Seda de Barcelona, Europe\'s largest pet producer, announced that it would cut pet capacity by half in September after losing $0. 8 billion last year.
Eastman Chemical has just completed a costly restructuring, including closing some old pet factories and selling others;
Indorama acquired the Netherlands and the United States. K.
The factory of the past year.
While Lohia\'s pet stakes are relatively new, his family has been in manufacturing for nearly half a century.
His ancestors were wandering in the Indian desert and settled in Kolkata in their 1940 s.
Loya\'s father, a textile businessman, moved his family to Indonesia in his 1970 s and began producing cloth.
When Loya, the youngest of the three boys, was sent to University in New Delhi, his father was already a rich man.
After graduation, Lohia joined the family business as an intern, reported to his father, and later served as chief financial officer.
But when his 60-year-old father was ready to retire, he decided that none of the three sons had enough space (
His daughter lives in India and is not part of a family business)
Manage existing Indonesian companies
He told them to look for other opportunities and provide seed funds.
A brother lives in Indonesia.
Another went to India.
On 1988, Lohia\'s father received a call from an old friend who wanted to open a chemical plant in Thailand, but needed someone with cash to run it as well.
He sent Loya to have a look.
The chemical the friend wants to produce-the F-alcohol is made from corn sticks and used in pharmaceutical and steel foundries, something Loya doesn\'t know.
But he was willing to gamble, like Thailand at the time, where there was a lot of agriculture and oil --and-
Natural gas resources, known for their cost
Effective place for the production of special chemicals.
Loya received a $5 million gift from his father, moved permanently to Bangkok and built the plant, which eventually became one of the world\'s largest chemical producers.
In running his own business, he is in close contact with his brothers operating in the relevant industry.
Sharing strategies for brothers and sisters sometimes bring together resources and purchases.
For example, in 1994, Lohia used its family\'s expertise in textiles to start making wool yarn using Australian raw materials and cheap skilled labor in central Thailand.
At about the same time, he was from S. P.
He is a brother in Indonesia and recently invested in a small pet factory in Java.
Aloke Lohia saw great potential in the industry, opening the first pet factory in Thailand in 1995.
A year later, his company, Indopet, set up a joint venture with the Thai company Pepsi to produce plastic containers. (
The joint venture is still in operation today. )
The company has been focusing on the Thai market for several years.
But Loya believes that given the nearly 10% annual growth rate of global pet consumption at that time, this is a bigger opportunity because this material replaces cotton, glass, from beverage bottles to sportswear, other plastics and metals in various products.
In 2002, he drafted his \"dream plan\" to turn Indorama into one of the top five pet manufacturers by 2012.
This means entering the largest consumer markets such as North America and Europe.
Because it is not cost-effective to transport the resin over long distances, he intends to make an acquisition.
In 2003, Lohia paid $35 million for a troubled factory in the United States. S.
In the second year, he established a pet factory in Lithuania, attracted by its cheap labor and goods to Western Europe and the upcoming accession to the EU, which means customs without borders;
Within two years, the factory became the largest pet factory in Europe.
The company currently has seven pet factories in five countries.
But Loya has a bigger idea.
At the end of last year, arlock and S. P.
Curated a deal that laid the foundation for Indorama to become a fully integrated Polyester company. S. P.
Sale of two shares of polyester fiberand-
Yarn and two PTA producers have invested in Indorama Ventures in exchange for a 51% stake in the business and the title of chairman.
His brother owns a 49% stake in the company, but also has a 76% vote.
Polyester Consumption may increase in the foreseeable future, but may not grow as much as in the past decade.
Lohia\'s business may be driven by the use of recycled materials in many products. (
Although nearly 100% of pets are recyclable, only a portion of them are now recyclable, especially in North America, where only 27% of bottles are recyclable. )
This may dampen the demand for raw materials used in pet, as more and more manufacturers want to use recycled pet, such as made from broken bottles.
This may also ultimately affect the manufacturer\'s profits.
Up to now, Indorama has not used recycled pets because of the high cost, but said it will start using recycled pets in its new US in 2010. S.
Planting because of the interest of American customers.
Although the United States has often questioned the safety of PET bottles as beverage containersS.
The Food and Drug Administration has approved its use.
Loya dispelled these concerns, but he admitted that he was very cautious of all his promises: \"I am always afraid.
The details are the devil and I always look at the numbers and ask, \"Are you sure ? \"?
Before making a decision
\"The answer seems to be yes so far.
The five countries, the world\'s largest consumer of pets, are expected to spend £ 15 billion this year.