Dhunseri Petrochem will sell its 50 per cent stake in Egyptian Indian Polyester Company (EIPET) to Singapore-based Indorama Group. Dhunseri already sold 50 per cent stake in its ₹4,000 crore Dhunseri Petrochem in India.

“We have already entered joint venture with the Indorama Group in India. We are now taking the JV forward to Egypt to restart EIPET,” CK Dhanuka, Chairman, Kolkata-based Dhunseri Group, told BusinessLine .

According to him, EIPET was closed two-and-half years ago following crash in oil prices which distorted fundamentals. It had last recorded a turnover of $350 million (₹2,389 crore at current exchange).

The Egyptian petrochem company was making heavy losses and had a $197-million debt on the books. The debt was finally settled by Dhunseri at $87 million. With the JV raising fresh finances, Dhunseri will get back $62 million.

“The JV will help us to share liabilities,” Dhanuka said.

Located at Ain Sokhna free trade zone, northwest of the Gulf of Suez, EIPET has two production lines totalling 540,000 tonne per annum capacity.

According to Dhanuka, if the joint venture agreement is implemented, the Egyptian company will restart one production line in the first year.

In a stock market notification on Friday, Dhunseri reported that it has entered an agreement to sell 50 per cent stake in EIPET to Indorama Ventures (listed in Thailand) and two of its subsidiaries.

Dhunseri currently owns 77 per cent stake in EIPET. The rest 23 per cent is owned by its existing JV partner Egyptian Petrochemicals Holding Company (ECHEM).

As per a separate agreement, Dhunseri will purchase ECHEM’s entire 23 per cent stake, in tranches, to ensure 50 per cent ownership in JV with Indorama.