In addition to expanding its global PET polymers capacity, Indorama has concentrated on building a solid domestic base.

“Originally, in Thailand, the converting industry was not so very advanced, and we saw an advantage in a niche joint venture with Serm Suk to supply Pepsi whileboth Coke and Nestle do self-manufacturing in house here.

“Now that business is well established we regard the Thai operation as a fully integrated and has good room to grow.

“In Thailand PET accounts for only 25 percent of the CSD market, returnable glass bottles still dominate with 75 percent, but PET is Cans are replacing glass. not developing much because aluminium is expensive. So there is room for growth. And in Thailand, bottled water is a very high growth business, also milk”.

Indorama has developed a fully PET polymers-to-blown bottle integrated model for the Thai market; with its preform,closures and bottles plant and a joint venture with Pepsi-bottler Serm Suk.

Currently Indorama produces approximately 450 million preforms and more than 600 million closures by the end of this year it will reach a capacity of one billion closures

“We will be putting a new line in to the Bangkok plant with a minimum capacity of 400-500 million” adds Manufacturing Director, Brij Malhotra “We haven’t decided which machine to go for; injection, compression – it is still in debate internally.

Indorama Group CEO DK Agarwal

In a large part, Indorama has been responsible for the development of the PET polymers markets in Thailand and neighbouring countries such as Laos, Cambodia and Vietnam, Philippines and Malaysia which do not have economies of scale to have their own PET polymers plants or in some cases even preform plants. However, in these countries they can blow bottles, develop and sell.

In a large part, Indorama has been responsible for the development of the PET polymers markets in Thailand and neighbouring countries such as Laos, Cambodia and Vietnam, Philippines and Malaysia which do not have economies of scale to have their own PET polymers plants or in some cases even preform plants. However, in these countries they can blow bottles, develop and sell.

“So in those areas we supply preforms and closures and now they have the technology available, and we act like a development center for them. If they want to introduce new products, we help them with it.”

Brand owners keep coming up with new colours or attractive gimmicks to boost sales. A recent example was the regional launch of Pepsi Gold (gold water) as a marketing strategy. The product needs someone to produce bottles specific to that marketing campaign for three to four months, then it ends, and another new product with a new marketing strategy is next.

“So we are quite advanced and so we can cater to all markets. Other companies compete with their customers, by diversifying into other areas, but this is not what we want to do. Because we are looking at very big volumes.”

Preforms business is not a global model which Indorama wants to roll out, its core business is PET polymers and in the Director’s view “We should not compete with our customers, we are a PET polymers producer.”

“The US, for example, is a very centralised industry, with large converters, billion dollar companies, like Amcor, Graham PET, Formstar, so if we were go into blowing we’d step on them, and be confined to producing PET polymers only for our own converting operations. It is much the same in Europe.

“And really, when you go down that route you are talking about investing in developing barrier and other new technologies. Yet, we are looking at Actus and Oxybar amongst others but only for our local Thai operation with Pepsi – possibly with a regional distribution, but not as a global strategy – it isn’t a place we want to be.”

“In Thailand, we started with one machine from Husky, today we have seven and two from Sidel for bottle blowing. One of the advantages is that now we have a technical team available for preforming or blowing, all operations. So customers who need help in establishing new businesses, or those who encounter problems, we can help them. So they are quite happy with the overall package.”

“In Thailand, we started with one machine from Husky, today we have seven and two from Sidel for bottle blowing. One of the advantages is that now we have a technical team available for preforming or blowing, all operations. So customers who need help in establishing new businesses, or those who encounter problems, we can help them. So they are quite happy with the overall package.”

“In technological terms in Thailand is our development centre we take the process through from PTA and MEG right through to the PET bottles so this becomes our test-bed, so if we have anything to develop like specific grades tailor made for specific customers we know we can trial it right through the entire process, using different grades to customer specification.”

When Indorama Polymers Public Co Ltd launched its Initial Public Offering in July 2005, shares traded with an initial price of 3.75 Thai baht, today shareprice of the 6th global PET polymers market leader top 7.50 Thai baht (market capitalization above US$ 300 million), according to DK Agarwal. “It turned out to be quite a successful listing, didn’t it?”