Bangkok-based chemicals maker Indorama Ventures Public Co. Ltd, controlled by the Lohia family, is eye to acquire stake in Haldia Petrochemicals Ltd (HPL) having naphtha based petrochemical complex at Haldia. The plant was commissioned in 2000 and the company is one of the largest in India in terms of production capacity.

The Chatterjee Group (TCG), promoted by non resident Indian businessman Purnendu Chatterjee, owns close to 48 percent in Haldia Petrochemicals. It took over management control of Haldia Petrochemicals in 2015 from the West Bengal government after settling a prolonged ownership feud, is keen to bring Indorama as a strategic partner and co-investor as it looks to scale up operations in Haldia.

Indorama Ventures is in initial talks with TCG to buy a stake in Haldia Petrochemicals. But it is not yet decided whether Indorama will acquire a part of TCG’s 48% stake or also from other shareholders as well, which also includes Tata Group, Indian Oil Corp. and the company’s lenders, two people cited requesting anonymity.

However, the stake sale will require approval from the West Bengal government which owns close to 31% stake in Haldia Petrochemicals.

TCG has also acquired a majority stake in Mitsubishi Chemical Corp.’s Indian subsidiary, MCC PTA India Corp. Pvt. Ltd, for close to $48 million last year. The distressed assets deal rescued the ailing MCC PTA, a producer of purified terephthalic acid, or PTA (a precursor to polyester), from potential closure as Mitsubishi Chemical decided to scale back investments in commodity chemicals such as PTA to focus on other businesses.

Around the same time in September, Indorama Ventures formed an equal joint venture with Kolkata-based Dhunseri Petrochem Ltd to produce polyethylene terephthalate (PET) resins, a raw material used in textile and plastics industry. Dhunseri Petrochem’s PET resin business with a 480,000 tonnes per annum plant in Haldia, was transferred to the newly formed company Dhunseri Petglobal Ltd, according to the agreement.

There are immense synergies for both companies and a potential deal could help both companies to tap the entire production and supply chain.

TCG is also looking to raise capital to fund the expansion of its petrochemicals business. In March, TCG had submitted a proposal to set up a refinery in Haldia and would invest up to Rs20,000 crore for the project.