Indorama Ventures, established in 1994 in Bangkok, Thailand, is a global producer of PET resins, polyester fibers, and related intermediate and downstream chemicals. The company operates manufacturing sites across Asia, Europe, Africa, and the Americas, supplying products to major global brands like Coca-Cola, Pepsi, and Johnson & Johnson.
How do you balance the legacy of trust and hard work from the company's early days with the formal processes required to manage its growth today?
Well, many things are different today compared to my father's time, but the foundation of trust and hard work was laid at our family dining table. My parents’ business was not about long-term plans or making noise. It was about spotting opportunities and diving in. Trust, honesty, and hard work were the core principles that guided us, and I continue to apply them in my approach today. Of course, I also rely on more formal processes now, especially given the size of the business, but the essence of trust remains crucial.
As businesses grow larger, there's more at stake, so decision-making has become more prudent and formal. Unlike the early days, where you could rely more on trust, today, there are legal and internal considerations, especially when doing business in the U.S. The values I learned from my father still stand, but now it’s essential to cover all bases and ensure that every step is checked and double-checked to mitigate risks. There’s a higher degree of responsibility that comes with larger operations.
How has Indorama Ventures’ growth strategy evolved to address future challenges, particularly in light of shifting global trade dynamics and overcapacity in Asia?
Indorama Ventures has grown significantly over the last 30 years, expanding into numerous products. Since the late 90s, we’ve adopted a strategy to be number one or two in every industry we enter, which has been a guiding principle. Today, we’re deeply invested in high-value-added products, and a third of our portfolio is focused on these. Our model is to serve daily necessities with regional operations, and this approach has insulated us from many global economic shifts. Our diversification allows us to be more resilient, and we aim to continue evolving, focusing on indispensable chemistry that serves consumers’ essential needs globally.
Our business model has evolved in response to globalization and shifting manufacturing patterns. For the last 20 years, we've built capacity not just in Asia, but also in Europe, the U.S., and Latin America. This regional approach helped us during the COVID-19 pandemic when the supply chains broke down. We were able to meet demand locally while many others faced challenges. As we look to the future, we recognize the impact of overcapacity in certain regions, particularly Asia. Therefore, we’re focused on increasing our local presence in key markets and adapting to shifts in global trade dynamics.
How is the IVL 2.0 transformation preparing Indorama Ventures for the next phase of growth and leadership succession?
The IVL 2.0 transformation is all about succession planning and the next phase of growth for the company. This involves transitioning leadership within the family and business while incorporating automation. We’re implementing SAP’s S/4HANA cloud-based ERP system across our sites, which is one of the largest transformations in the chemical industry.
This change is crucial for data-driven decision-making, providing our next generation of leaders with better tools for managing growth and operations efficiently. We aim to have our new leadership embrace these systems to continue growing sustainably over the next decade.
Given Indorama Ventures’ leadership in PET recycling, how do you plan to balance growth with sustainability, especially in light of the industry's current challenges?
We are fortunate to be in the PET and polyester industry, which is the only plastic that can be recycled repeatedly. As the world’s largest recycler of PET, we are in a strong position to take a leading role in managing plastic waste and closing the loop in a fully circular economy. Our carbon reduction initiatives align with our Vision 2030, and we are on track to meet 90% of our 2025 sustainability goals.
Despite the challenges the industry faces, especially with the ongoing downturn, we remain focused on sustainability, investing in recycling and reducing carbon emissions. We aim to balance our growth with responsible environmental practices.
How are you preparing the next generation to lead Indorama Ventures while ensuring the company stays focused on growth and long-term shareholder value?
My proudest moment has been seeing my three children deeply involved in the business. The family business dynamic can often be difficult, but it's gratifying to have all my children working alongside me and my wife. Indorama Ventures’ evolution and growth are now being carried forward by the next generation. Looking ahead, I want to ensure that the company continues to focus on growth and that the next generation leads with the same growth mindset. We’ve set up the right foundations for them, focusing on prudent financial management and long-term shareholder value.
