Indorama Ventures Public Company Limited (IVL), the global sustainable chemical producer, has unveiled its 2026–2028 business plan at its Annual Capital Markets Day (CMD), emphasizing disciplined execution and operational excellence as it builds on the reset achieved under IVL 2.0.

 

Addressing analysts and investors in Bangkok, Group CEO Aloke Lohia said IVL 2.0 was guided by a VUCA framework—Vision, Understanding, Clarity, and Agility—which optimized costs, strengthened balance sheet flexibility, and created a more resilient asset base. 

 

“As a result, Indorama Ventures is structurally stronger and more competitive as the global chemicals industry rationalizes in a prolonged period of unprecedented change and disruption,” he said.

 

The company’s next phase of growth will follow a SOAR framework—Strengths, Opportunities, Aspirations, and Results. 

 

“The difference between SOAR and VUCA lies in their psychological orientation,” Mr. Lohia explained. “SOAR is a mindset of possibility and internal aspiration, while VUCA reflects preparedness and external awareness. We must adopt both—and the level of satisfaction will be equally rewarding.”

 

Earlier this year, IVL reorganized its senior leadership to act as a lean execution partner to its federated business segments, moving from complexity management to consistent value delivery. A focus on radical clarity is driving faster decision-making, stronger accountability, and disciplined capital management, aimed at improving earnings quality and resilience.

 

The 2026–2028 plan targets five enterprise priorities: structural cost leadership, commercial and manufacturing excellence, portfolio reorganization, inventory optimization, and rigorous cash and capital management. These initiatives are supported by an expanded Global Capability Centre (GCC), strengthened Sales & Operations Execution (S&OE), and the integration of digital tools across operations.

 

Lohia stressed that the roadmap does not assume a cyclical recovery, instead planning for industry spreads at 2025 trough levels. Self-help strategies—cost optimization, inventory discipline, and portfolio sharpening—are expected to double EBITDA by 2028.

 

Currently, 95% of EBITDA comes from advantaged, scalable platforms including Integrated PET, surfactants, technical textiles, and packaging, which now operate with lower costs and higher margins. Turnaround plans are in progress for Integrated EO/EG and Specialty Polymers to restore profitability independently of market recovery.

 

The Indovida packaging business is highlighted as a key growth engine, leveraging stable demand in food & beverages and personal care, along with strong customer relationships and integration potential for expansion in emerging markets.

 

Free cash flow is expected to strengthen significantly, supporting a deleverage target of 1.1x net debt-to-equity and net debt-to-EBITDA below 3.0x. Management will prioritize earnings quality, cash generation, and balance sheet flexibility to create space for sustainable growth.

 

Reflecting on the plan, Lohia said: “Since our 30th anniversary in 2020, we have navigated a landscape of profound change—from the maturation of our core polyester business and persistent crude oil volatility to global pandemics, geopolitical conflicts, and unprecedented interest rate hikes. 

 

"This complex environment demanded a fundamental strategic refresh, which we kicked off in 2023 under IVL 2.0. Aligned with our Board and the Indorama Management Council, we are executing a clear roadmap to unlock significant value. 

 

"A robust Sales & Operations Execution (S&OE) rhythm is maximizing our advantaged ‘local for local’ model by optimizing inventory management and enhancing our responsiveness to market volatility and supply chain disruptions. We remain focused on growth.”