MOSCOW (MRC) -- Kolkata-headquartered Dhunseri Petrochem and Tea Ltd (DPTL) has embarked on a plan to bring in a strategic partner for its loss-making Egyptian venture and restructure the outstanding debt, as per Plastemart.
Dhunseri Petrochem is the majority partner in the Egyptian company with a 70% stake, while two local firms own the rest. IFC Washington, Commercial International Bank (CIB) and Ahil United Bank, Egypt are the lenders.
As reported earlier, DPTL took its downstream petrochemicals facility in Egypt on stream by July 2013. The greenfield polyethylene terephthalate (PET) resin plant, with an annual capacity of 430,000 tonnes became operational in two phases. While the first phase, of 215,000 tonnes capacity, was operational in early July; the second phase (similar capacity) was ready around August 2013.
Continuous losses have fully eroded the net worth of Egyptian Indian Polyester Company (EIPC), which had a loss of USD60 million (Rs 402 crore) at the end of the last fiscal, as per telegraph india.com. EIPC SAE has appointed a merchant banker to look for an equity partner on the advise of lenders who have an exposure of USD165 mln (Rs 1,105 crore) in the PET resin venture in the north-west of the Gulf of Suez. The plant is not in production for over a year because of lack of working capital. This was reflected in the consolidated balance sheet of Dhunseri Petrochem.
We remind that, as MRC wrote before, in March 2016, Thailand's Indorama Ventures Public Company Limited (IVL) and Indiaп DPTL agreed to enter into an equal joint venture to manufacture and sell PET resins for Indian domestic markets and for exports. Dhunseri will purchase a 50% stake in the 216,000 tonne Micro Polypet Pvt. Ltd. (MicroPet), a company owned by Indorama Ventures in the North Indian State, Haryana. IVL in turn will acquire a 50% stake in a carved out entity, called Haldia, of Dhunseri, with an effective capacity of 480,000 tonnes PET manufacturing located in the eastern state of West Bengal. The JV is subject to regulatory approvals and expected to complete in H2 2016.
Dhunseri Petrochem & Tea Limited (DPTL) is the flagship company of the Dhunseri group. DPTL's petrochemical division produces the finest bottle-grade PET resin for packaging of drinking water, carbonated soft drinks, edible oil and pharmaceuticals and many more. The petrochem division is one of the largest producers of PET (polyethylene terephthalate) resin in India.
MRC