3. Nature of Business Performance

Background, Changes and Important Developments

Background

Indorama Ventures Public Company Limited, formerly known as Beacon
Global Limited, was established on February 21, 2003, and re-named
Indorama Ventures Public Company Limited on 19 March, 2009. We, Indorama
Ventures Public Company Limited, are a holding company with investments
in companies operating in an integrated petrochemical value chain both
domestic and international. These companies are manufacturers and
suppliers of polyethylene terephthalate (“PET”), polyester fiber and
yarn, purified terephthalic acid (“PTA”), and wool.

Indorama Ventures Public Company Limited transformed to be public
company on September 25, 2009. As of December 31, 2010, the Company has
registered capital of Bt 4,815,856,719 with paid-up capital of Bt
4,334,271,047 totaling 4,334,271,047 ordinary shares at par value of Bt
1 per share. The major shareholder of the Company is Indorama Resources
Limited, owned 99.99% by Canopus International. (Canopus International
is owned by Mr. Aloke Lohia and his immediate family and Mr. Sri Prakash
Lohia and his immediate family. Mr. Aloke Lohia and his immediate family
hold 49% with voting rights over 76.0% of total votes of Canopus
International while Mr. Sri Prakash Lohia and his immediate family hold
51% with voting rights over 24.0% of total votes of Canopus
International.)

In January, 2010, Indorama Ventures Public Company Limited completed
initial public offering of 400,000,000 ordinary shares at an offering
price of Baht 10.20 per ordinary share. The total amount raised in cash
from initial public offering of shares Baht 4,080 million.
Simultaneously, the minority shareholders of Indorama Polymers Public
Company Limited, subsidiary of IVL listed on the Stock Exchange of
Thailand, were offered under an exchange offer 582,727,137 ordinary
shares of Indorama Ventures Public Company Limited. The ordinary shares
of Indorama Ventures Public Company Limited were listed and commenced
trading on the Stock exchange of Thailand “SET” on February 5, 2010. The
ticker symbol is “IVL”. IVL during the year 2010 became a member of
major indices SET 50 Index, FTSE SET Large Cap Index and MSCI.

In November, 2010, the board of directors passed a resolution to
increase the authorized share capital from Baht 4,334,271,047 to Baht
4,815,856,719 and reserve the increase in authorized share capital of
Baht 481,585,672 to be reserved for the exercise of Transferable
Subscription Rights “TSRs”. The board approved a rights issue of TSRs to
existing shareholders in the ratio of 1 TSR for every 9 existing
ordinary shares held of IVL. The conversion ratio of TSR to ordinary
shares as 1 and exercise price of TSR to ordinary shares of Baht 36 per
ordinary share. On December 17, 2010, in the extraordinary shareholders
meeting “EGM” of IVL the shareholders approved the rights issue of TSRs,
allocation of TSR and the terms and conditions of TSR.

We commenced business operations in 1994 with the incorporation of
Indorama Holdings Ltd.., which was the first worsted wool yarn producer
in Thailand. In 1995, we entered the petrochemical industry focusing on
the polyester value chain business with the establishment of a PET resin
facility in Thailand. Since then, each successive growth and addition
has been committed to the polyester value chain. We have grown
significantly to become a major global polyester value chain producer
with a presence in four key business segments, PET resin, polyester
fibers and yarns, PTA, and wool, and operations in five countries across
three continents.

Our growth in the PET business has been achieved through greenfield
investments, strategic acquisitions, and brownfield expansions. From
1995 to 2002, we grew our PET business by engaging in the downstream
production of PET preforms, bottles and closures through a joint venture
with Serm Suk Pcl, the exclusive bottler for Pepsi products in Thailand,
as well as through various expansion projects leading to increased
capacities. We expanded our PET production footprint internationally
into North America in 2003, with the acquisition of the StarPet
facility, and into Europe in 2006, with the commencement of Orion Global
PET facility. The expansion made us the only PET resin producer with
operations in the three largest consuming regions of Asia, Europe and
North America. We have further expanded our manufacturing presence with
the acquisition of two PET resin facilities from Eastman Chemical
Company in Europe in 2008, and a greenfield investment in the PET
business with AlphaPet in North America in 2009. Our PET business was
listed on the SET through Indorama Polymers Public Company Limited “IRP”
in 2005. On December 24, 2009 IVL offered to purchase upto 100% of IRP
through a tender offer whereby IRP shareholders (other than IVL and its
subsidiaries) were offered IVL shares in exchange for IRP shares. The
said tender offer was completed on February 1, 2010 which resulted in
IVL holding directly and indirectly (through its subsidiary Indorama
Holdings (Thailand) Limited) around 99.08% of the issued and paid-up
capital of IRP. IRP shares were delisted from the SET.

Our development in the polyester business has been achieved through the
acquisition of distressed assets and organic growth through
debottlenecking and asset optimization. We entered the polyester
business in 1997 through the acquisition of Indo Poly, a polyester fiber
plant in Thailand. In 2008, we acquired Tuntex Thailand, the largest
polyester fiber producer in Thailand. Both of our polyester facilities
were acquired as distressed assets at a discount to their replacement
cost and have been successfully turned around. In 2009, Indo Poly
transferred all of its assets to, and all of its liabilities were
assumed by, Tuntex Thailand, which was subsequently re-named Indorama
Polyester Industries.

In a step towards vertical integration, we entered into the PTA business
in 2008 through the acquisition of three facilities, IRH Rotterdam,
Indorama Petrochem and TPT Petrochemicals. The growth philosophy for our
PTA business has been the acquisition of assets at a discount to their
replacement cost, providing complementary support to our downstream PET
and polyester businesses in Europe and Asia.

Changes and Important Developments 

+--------+-----------------------------------------+---------+--------+
| Year   | Event                                   | L       | Bu     |
|        |                                         | ocation | siness |
+========+=========================================+=========+========+
| 1994   | Incorporation of Indorama Holdings      | T       | Wool   |
|        | Ltd..                                   | hailand |        |
+--------+-----------------------------------------+---------+--------+
| 1995   | Establishment of Indorama Polymers PCL  | T       | PET    |
|        | PET resin plant in Lopburi, Thailand.   | hailand |        |
+--------+-----------------------------------------+---------+--------+
| 1996   | Establishment of Petform (Thailand)     | T       | PET    |
|        | Ltd.., a joint venture with Serm Suk    | hailand |        |
|        | PCL                                     |         |        |
+--------+-----------------------------------------+---------+--------+
| 2002   | Completion of various expansion         | T       | PET /  |
|        | projects leading to increased           | hailand | Pol    |
|        | capacities in Thailand                  |         | yester |
+--------+-----------------------------------------+---------+--------+
| 2003   | Incorporation of Beacon Global Limited  | T       | H      |
|        | (subsequently re-named Indorama         | hailand | olding |
|        | Ventures PCL in 2008)                   |         | C      |
|        |                                         |         | ompany |
+--------+-----------------------------------------+---------+--------+
| 2003   | First major international expansion     | USA     | PET    |
|        | with the acquisition of StarPet PET     |         |        |
|        | plant in Asheboro, North Carolina       |         |        |
+--------+-----------------------------------------+---------+--------+
| 2006   | Acquisition of a 94.57% interest in     | T       | Wool / |
|        | Indorama Holdings Ltd.. from an entity  | hailand | H      |
|        | controlled by Mr. Aloke Lohia           |         | olding |
|        |                                         |         | C      |
|        |                                         |         | ompany |
+--------+-----------------------------------------+---------+--------+
| 2006   | Expansion into Europe with the          | Li      | PET    |
|        | establishment of Orion Global PET plant | thuania |        |
|        | in Klaipeda, Lithuania                  |         |        |
+--------+-----------------------------------------+---------+--------+
| 2007   | Completion of various expansion         | USA /   | PET /  |
|        | projects leading to increased           | T       | Pol    |
|        | capacities                              | hailand | yester |
+--------+-----------------------------------------+---------+--------+
| March  | -   UAB Indorama Polymers Europe, IRP   | The     | PET    |
| 2008   |     Rotterdam and IRP Workington        | Nethe   |        |
|        |     acquired the net assets (property,  | rlands/ |        |
|        |     plant and equipment and working     | UK      |        |
|        |     capital) and the operations of two  |         |        |
|        |     PET production facilities located   |         |        |
|        |     in the Netherlands and the United   |         |        |
|        |     Kingdom, previously owned and       |         |        |
|        |     operated by subsidiaries of Eastman |         |        |
|        |     Chemical Company                    |         |        |
+--------+-----------------------------------------+---------+--------+
|        | -   UAB Indorama Holdings Ltd. Europe   | The     | PTA    |
|        |     and IRH Rotterdam also acquired the | Neth    |        |
|        |     net assets (property, plant and     | erlands |        |
|        |     equipment and working capital) and  |         |        |
|        |     the operations of a PTA production  |         |        |
|        |     facility located in the             |         |        |
|        |     Netherlands, previously owned and   |         |        |
|        |     operated by subsidiary of Eastman   |         |        |
|        |     Chemical Company                    |         |        |
+--------+-----------------------------------------+---------+--------+
| June   | Indorama Holdings Ltd. sold its shares  | T       | Che    |
|        | representing 89.71% of Indo-Rama        | hailand | micals |
| 2008   | Chemicals (Thailand) Ltd., to an entity |         |        |
|        | controlled by Mr. Aloke Lohia and his   |         |        |
|        | immediate family                        |         |        |
+--------+-----------------------------------------+---------+--------+
| August | The Company acquired a 50.56% equity    | T       | PTA    |
| 2008 - | interest in TPT Petrochemicals PCL from | hailand |        |
| O      | various parties                         |         |        |
| ctober |                                         |         |        |
| 2008   |                                         |         |        |
+--------+-----------------------------------------+---------+--------+
| Sep    | -   The Company acquired a 65.81%       | T       | Pol    |
| tember |     equity interest in Tuntex           | hailand | yester |
| 2008   |     (Thailand) pursuant to Tuntex       |         |        |
|        |     (Thailand)’s bankruptcy             |         |        |
|        |     rehabilitation plan.                |         |        |
+--------+-----------------------------------------+---------+--------+
|        | -   The Company acquired an additional  | T       | Pol    |
|        |     44.38% of the outstanding shares of | hailand | yester |
|        |     Indo Poly (Thailand) Ltd. from      |         |        |
|        |     Indorama International Finance PCL. |         |        |
|        |     As a result of the acquisition, the |         |        |
|        |     Company increased our direct and    |         |        |
|        |     indirect shareholdings of Indo Poly |         |        |
|        |     (Thailand) Ltd. to 98.85%.          |         |        |
+--------+-----------------------------------------+---------+--------+
| Sep    | The Company acquired a 100% equity      | T       | PTA    |
| tember | interest in Indorama Petrochem Ltd.     | hailand |        |
| 2008 – | from various parties                    |         |        |
| O      |                                         |         |        |
| ctober |                                         |         |        |
| 2008   |                                         |         |        |
+--------+-----------------------------------------+---------+--------+
| O      | The Company acquired an additional      | T       | PET    |
| ctober | 3.94% of the outstanding shares of      | hailand |        |
| 2008   | Indorama Polymers PCL from DEG, thereby |         |        |
|        | increasing our direct and indirect      |         |        |
|        | holdings of Indorama Polymers PCL to    |         |        |
|        | 69.29%.                                 |         |        |
+--------+-----------------------------------------+---------+--------+
| De     | The Company acquired an additional      | T       | Pol    |
| cember | 31.20% of the outstanding shares of     | hailand | yester |
| 2008   | Tuntex (Thailand) PCL (re-named         |         |        |
|        | Indorama Polyester Industries PCL)      |         |        |
+--------+-----------------------------------------+---------+--------+
| July   | -   Indo Poly (Thailand) Ltd.           | T       | Pol    |
| 2009   |     transferred all of its assets and   | hailand | yester |
|        |     business to Indorama Polyester      |         |        |
|        |     Industries PCL. (In August, 2009,   | T       | PTA    |
|        |     Indo Poly (Thailand) Ltd. commenced | hailand |        |
|        |     action to liquidate itself, which   |         |        |
|        |     we expect will be consummated by    |         |        |
|        |     the second quarter of 2010)         |         |        |
|        |                                         |         |        |
|        | -   The Company acquired an additional  |         |        |
|        |     2.08% of the outstanding shares of  |         |        |
|        |     TPT Petrochemicals PCL from         |         |        |
|        |     International Finance PCL, thereby  |         |        |
|        |     increasing our direct and indirect  |         |        |
|        |     holdings of TPT Petrochemicals PCL  |         |        |
|        |     to 52.64%.                          |         |        |
+--------+-----------------------------------------+---------+--------+
| August | The Company and Indorama Holdings Ltd.  | T       | Pol    |
| 2009   | jointly made a tender offer jointly to  | hailand | yester |
|        | purchase all outstanding shares of      |         |        |
|        | Indorama Polyester Industries PCL that  |         |        |
|        | we did not own. After the tender offer, |         |        |
|        | the Company and Indorama Holdings Ltd.  |         |        |
|        | increased our shareholdings of Indorama |         |        |
|        | Polyester Industries PCL to 99.55% and  |         |        |
|        | delisted Indorama Polyester Industries  |         |        |
|        | PCL from the SET effective on November  |         |        |
|        | 9, 2009                                 |         |        |
+--------+-----------------------------------------+---------+--------+
| O      | Start up of the AlphaPet PET plant in   | USA     | PET    |
| ctober | Decatur, Alabama                        |         |        |
| 2009   |                                         |         |        |
+--------+-----------------------------------------+---------+--------+
| No     | TPT Utilities Co., Ltd. transferred all | T       | Others |
| vember | of its assets to TPT Petrochemicals PCL | hailand |        |
| 2009   | and commenced action to liquidate       |         |        |
|        | itself. We expect the liquidation to be |         |        |
|        | consummated by the second quarter of    |         |        |
|        | 2010                                    |         |        |
+--------+-----------------------------------------+---------+--------+
| De     | -   The Company acquired an additional  | T       | PTA    |
| cember |     1.96% of the outstanding shares of  | hailand |        |
| 2009   |     TPT Petrochemicals PCL from         |         | PET    |
|        |     International Finance PCL, thereby  | T       |        |
|        |     increasing our direct and indirect  | hailand |        |
|        |     holdings of TPT Petrochemicals PCL  |         |        |
|        |     to 54.60%.                          |         |        |
|        |                                         |         |        |
|        | -   On December 24, 2009 Indorama       |         |        |
|        |     Ventures Public Company Limited     |         |        |
|        |     “IVL” announced a tender offer to   |         |        |
|        |     purchase upto 100% of shares in     |         |        |
|        |     Indorama Polymers Public Company    |         |        |
|        |     Limited “IRP” with an intention to  |         |        |
|        |     delist the shares of IRP from the   |         |        |
|        |     Stock Exchange of Thailand “SET”.   |         |        |
|        |     424,480,030 shares of IRP offered   |         |        |
|        |     to be purchased through an exchange |         |        |
|        |     offer whereby IRP shareholder will  |         |        |
|        |     receive IVL shares.                 |         |        |
+--------+-----------------------------------------+---------+--------+
| Fe     | -   Listed and start trading of shares  | T       | Cor    |
| bruary |     of IVL on the Stock Exchange of     | hailand | porate |
|        |     Thailand after completion of        |         |        |
| 2010   |     initial public offering of 400      |         |        |
|        |     million new shares for an initial   |         |        |
|        |     offering price of Baht 10.20 and    |         |        |
|        |     completion of exchange offer to     |         |        |
|        |     minority shareholders of Indorama   |         |        |
|        |     Polymers Public Company Limited     |         |        |
|        |     “IRP”. Simultaneously delisting of  |         |        |
|        |     IRP shares from the SET on the      |         |        |
|        |     first day trading of IVL.           |         |        |
+--------+-----------------------------------------+---------+--------+
| July   | -   Acquisition of 50% equity stake in  | Italy   | PTA    |
|        |     a joint venture company UAB Ottana  |         | and    |
| 2010   |     Polimeri Europe for the purpose of  |         | PET    |
|        |     acquisition of an integrated PTA    |         |        |
|        |     and PET plant in Ottana, Italy from |         |        |
|        |     Equipolymers. The joint venture     |         |        |
|        |     partner is PCH Holdings which holds |         |        |
|        |     the balance 50% and is in the       |         |        |
|        |     business of power and utilities.    |         |        |
+--------+-----------------------------------------+---------+--------+
| August | -   Announced setting-up of a           | Nigeria | PET    |
|        |     greenfield project for PET polymers |         |        |
| 2010   |     in Port Harcourt, Nigeria with an   | Net     | PET    |
|        |     installed capacity of 75,000 tpa.   | herland |        |
|        |     The plant to start operations in    |         |        |
|        |     Q4, 2011                            |         |        |
|        |                                         |         |        |
|        | -   Announced capacity expansion by     |         |        |
|        |     190,000 tpa for PET at existing     |         |        |
|        |     site in Rotterdam, Netherlands by   |         |        |
|        |     setting-up a new line of PET        |         |        |
|        |     production. Europe is a net         |         |        |
|        |     importer of PET resins and the      |         |        |
|        |     expansion will substitiute imports  |         |        |
|        |     and the demand growth. In addition, |         |        |
|        |     the PET expansion will result in    |         |        |
|        |     full capative consumption of PTA    |         |        |
|        |     produced at site and cost benefits  |         |        |
|        |     from economies of scale.            |         |        |
+--------+-----------------------------------------+---------+--------+
| O      | -   Acquisition of additional shares in | T       | PTA    |
| ctober |     TPT Petrochemicals PCL from Tuntex  | hailand |        |
|        |     Taiwan and other shareholders to    |         |        |
| 2010   |     increase equity stake from 54.60%   |         |        |
|        |     to 99.96%                           |         |        |
+--------+-----------------------------------------+---------+--------+
| No     | -   Announced approval of acquisition   | China   | PET    |
| vember |     of business to make PET resins and  |         |        |
|        |     Polyester polymers for fibers &     | USA /   | PET /  |
| 2010   |     yarns in Kaiping City, Guangdong    | Mexico  | Pol    |
|        |     Province, China, from Gunagdong     |         | yester |
|        |     Shinda UHMWPE Company Limited. The  | T       |        |
|        |     total installed capacity of the     | hailand | Cor    |
|        |     plant is 406,000 tpa. The           |         | porate |
|        |     acquisition allows to expand the    |         |        |
|        |     global footprint and to enter the   |         |        |
|        |     high growth market in China. The    |         |        |
|        |     acquisition was completed in        |         |        |
|        |     January, 2011.                      |         |        |
|        |                                         |         |        |
|        | -   Announced the signing of a          |         |        |
|        |     definitive agreement with Invista   |         |        |
|        |     S.a.r.l. to acquire their PET       |         |        |
|        |     resins and Polyester staple         |         |        |
|        |     business located in Spartanburg,    |         |        |
|        |     South Carolina, USA and Queretaro,  |         |        |
|        |     Mexico. The total installed         |         |        |
|        |     capacity at Spartanburg site is     |         |        |
|        |     470,000 tpa and at Queretaro site   |         |        |
|        |     is 535,000 tpa. The acquisition     |         |        |
|        |     will allow to build on its          |         |        |
|        |     expanding global platform making    |         |        |
|        |     the company world’s largest PET     |         |        |
|        |     producer and give access to the new |         |        |
|        |     markets of Latin and Central        |         |        |
|        |     America. The acquisitions completed |         |        |
|        |     in March, 2011.                     |         |        |
|        |                                         |         |        |
|        | -   Board of Directors Meeting No.      |         |        |
|        |     8/2010 dated 10 November 2010       |         |        |
|        |     approved the issuance of            |         |        |
|        |     481,585,672 free Transferable       |         |        |
|        |     Subscription Rights (TSRs) to the   |         |        |
|        |     company’s existing shareholders and |         |        |
|        |     that the allocation ratio will be 9 |         |        |
|        |     existing shares to 1 new TSR. The   |         |        |
|        |     conversion ratio of 1 TSR will      |         |        |
|        |     entitle the TSR holder to purchase  |         |        |
|        |     1 newly issued share of the         |         |        |
|        |     Company. The exercise price of TSR  |         |        |
|        |     into ordinary shares to be          |         |        |
|        |     determined prior to extraordinary   |         |        |
|        |     general meeting of shareholders to  |         |        |
|        |     approve the rights issue.           |         |        |
+--------+-----------------------------------------+---------+--------+
| De     | -   Announced the signing of a          | In      | Pol    |
| cember |     definitive agreement with SK        | donesia | yester |
|        |     Chemicals and SK Syntec to acquire  | /       | / PET  |
| 2010   |     their Polyester Filament yarns and  | Poland  |        |
|        |     PET resins business in Indonesia    |         | Cor    |
|        |     and PET resins business in Poland.  | T       | porate |
|        |     The total installed capacity in     | hailand |        |
|        |     Indonesia is 196,000 tpa and in     |         | Cor    |
|        |     Poland is 140,000 tpa. The          | T       | porate |
|        |     acquisition will allow to build on  | hailand |        |
|        |     expanding global platform and       |         |        |
|        |     reinforce our focus on the          |         |        |
|        |     polyester value chain. It gives     |         |        |
|        |     access to the growth markets of     |         |        |
|        |     Indonesia and Poland. The           |         |        |
|        |     acquisitions completed in March,    |         |        |
|        |     2011.                               |         |        |
|        |                                         |         |        |
|        | -   Board of Directors Meeting No.      |         |        |
|        |     9/2010 dated 16 December 2010       |         |        |
|        |     approved the exercise price at Baht |         |        |
|        |     36 per share to subscribe for newly |         |        |
|        |     issued shares by each TSR holder    |         |        |
|        |                                         |         |        |
|        | -   Extraordinary General Meeting of    |         |        |
|        |     Shareholders No. 1/2010 approved    |         |        |
|        |     the resolution for rights issue to  |         |        |
|        |     existing shareholders through issue |         |        |
|        |     of TSRs, allocation ratio,          |         |        |
|        |     conversion ratio and exercise price |         |        |
|        |     and for the purpose the required    |         |        |
|        |     decrease/increased in registered    |         |        |
|        |     share capital and to reserve        |         |        |
|        |     increased shares for allocation     |         |        |
|        |     under the rights issue.             |         |        |
+--------+-----------------------------------------+---------+--------+

Business Overview

We are a holding company conducting our business through investment in
companies engaging in manufacture of integrated petrochemical products
both domestic and international. Our headquarters is located in Bangkok.
These companies are manufacturers of suppliers of polyethylene
terephthalate (“PET”), polyester fiber and yarn, purified terephthalic
acid (“PTA”), and wool. We have 23 (includes announced acquisitions
which were completed in quarter 1, 2001 in China, Indonesia, Poland,
Mexico and USA and new Greenfield project in Nigeria) manufacturing
facilities in twelve countries located in Asia, Africa, North America
and Europe. Our businesses are classified in business segments as
follows:

PET

+--------------------+---------+-------------+------------+-----------+
| Name               | Country | Type        | Sh         | Paid Up   |
|                    |         | of business | areholding | Share     |
|                    |         |             | as of      | Capital   |
|                    |         |             | December   | December  |
|                    |         |             | 31, 2010   | 31, 2010  |
|                    |         |             | (%)        |           |
+====================+=========+=============+============+===========+
| Indorama Polymers  | T       | Production  | 99.08[1]   | Baht      |
| PCL                | hailand | and sale of |            | 1,38      |
|                    |         | PET resin   |            | 2,197,870 |
+--------------------+---------+-------------+------------+-----------+
| Asia Pet           | T       | Production  | 100[2]     | Baht      |
| (Thailand) Ltd.    | hailand | of          |            | 45        |
|                    |         | amorphous   |            | 0,000,000 |
|                    |         | rasin       |            |           |
+--------------------+---------+-------------+------------+-----------+
| StarPet Inc.       | USA     | Production  | 100[3]     | USD       |
|                    |         | and sale of |            | 1         |
|                    |         | PET resin   |            | 2,000,000 |
+--------------------+---------+-------------+------------+-----------+
| UAB Orion Global   | Li      | Production  | 100[4]     | Litas     |
| Pet                | thuania | and sale of |            | 7         |
|                    |         | PET resin   |            | 7,688,000 |
+--------------------+---------+-------------+------------+-----------+
| UAB Indorama       | Li      | Sale of PET | 100[5]     | Litas     |
| Polymers Europe    | thuania | resin       |            | 7         |
|                    |         |             |            | 2,508,800 |
+--------------------+---------+-------------+------------+-----------+
| Indorama Polymers  | USA     | A holding   | 100[6]     | USD       |
| (USA) Inc.         |         | company     |            | 4         |
|                    |         | investing   |            | 3,724,686 |
|                    |         | in PET      |            |           |
|                    |         | business    |            |           |
+--------------------+---------+-------------+------------+-----------+
| Indorama Polymers  | United  | Production  | 100[7]     | GBP 1     |
| Workington Ltd..   | Kingdom | and sale of |            |           |
|                    |         | PET resin   |            |           |
+--------------------+---------+-------------+------------+-----------+
| Indorama Polymers  | The     | Production  | 100[8]     | Euro      |
| Rotterdam B.V.     | Neth    | and sale of |            | 18,000    |
|                    | erlands | PET resin   |            |           |
+--------------------+---------+-------------+------------+-----------+
| AlphaPet, Inc.     | USA     | Production  | 100[9]     | USD       |
|                    |         | and sale of |            | 4         |
|                    |         | PET resin   |            | 3,724,686 |
+--------------------+---------+-------------+------------+-----------+
| Indorama PET       | Nigeria | Production  | 100[10]    | NAIRA     |
| (Nigeria) Ltd.     |         | and sale of |            |           |
|                    |         | PET resin   |            | 45        |
|                    |         |             |            | 0,000,000 |
+--------------------+---------+-------------+------------+-----------+
| Guangdong IVL PET  | China   | Production  | 100[11]    | USD       |
| Polymer Company    |         | and sale of |            |           |
| Limited            |         | PET resin   |            | 1,000     |
+--------------------+---------+-------------+------------+-----------+
| Auriga Polymers    | USA     | Production  | 100        | USD       |
| Inc.               |         | and sale of |            |           |
|                    |         | PET resin   |            | 5,000     |
+--------------------+---------+-------------+------------+-----------+
| Petform (Thailand) | T       | Production  | 60[12]     | Baht      |
| Ltd.               | hailand | and sale of |            | 7         |
|                    |         | preforms,   |            | 5,000,000 |
|                    |         | bottles,    |            |           |
|                    |         | and         |            |           |
|                    |         | closures    |            |           |
+--------------------+---------+-------------+------------+-----------+

Polyester Fiber and Yarn

+--------------------+---------+-------------+-----------+-----------+
| Name               | Country | Type        | Sha       | Paid Up   |
|                    |         | of business | reholding | Share     |
|                    |         |             | as of     | Capital   |
|                    |         |             | December  | December  |
|                    |         |             | 31, 2010  | 31, 2010  |
|                    |         |             | (%)       |           |
+====================+=========+=============+===========+===========+
| Indorama Polyester | T       | Production  | 99.55[14] | Baht      |
| Industries PCL[13] | hailand | and sale of |           | 2,20      |
|                    |         | polyester   |           | 2,850,000 |
|                    |         | fiber and   |           |           |
|                    |         | yarn, and   |           |           |
|                    |         | PET         |           |           |
+--------------------+---------+-------------+-----------+-----------+
| Indo Poly          | T       | Production  | 98.85[16] | Baht      |
| (Thailand) Ltd.    | hailand | of          |           | 70        |
| [15]               |         | polyester   |           | 0,000,000 |
|                    |         | fiber and   |           |           |
|                    |         | yarn, and   |           |           |
|                    |         | PET         |           |           |
+--------------------+---------+-------------+-----------+-----------+

PTA

+-------------------+--------+--------------+------------+-----------+
| Name              | C      | Type         | Sh         | Paid Up   |
|                   | ountry |  of business | areholding | Share     |
|                   |        |              | as of      | Capital   |
|                   |        |              |            | December  |
|                   |        |              | December   | 31, 2010  |
|                   |        |              | 31, 2010   |           |
|                   |        |              | (%)        |           |
+===================+========+==============+============+===========+
| Indorama          | Th     | Production   | 100        | Baht      |
| Petrochem Ltd.    | ailand | and sale of  |            | 4,72      |
|                   |        | PTA          |            | 7,820,420 |
+-------------------+--------+--------------+------------+-----------+
| TPT               | Th     | Production   | 99.96[17]  | Baht      |
| Petrochemicals    | ailand | and sale of  |            | 2,95      |
| PCL               |        | PTA          |            | 5,000,000 |
+-------------------+--------+--------------+------------+-----------+
| UAB Indorama      | Lit    | Sale of PTA  | 100[18]    | Litas     |
| Holdings Europe   | huania |              |            | 11        |
|                   |        |              |            | 7,395,200 |
+-------------------+--------+--------------+------------+-----------+
| Indorama Holdings | The    | Production   | 100[19]    | Euro      |
| Rotterdam B.V.    | Nethe  | and sale of  |            |           |
|                   | rlands | PTA          |            | 18,000    |
+-------------------+--------+--------------+------------+-----------+

Wool

+-------------------+---------+--------------+------------+-----------+
| Name              | Country | Type         | Sh         | Paid Up   |
|                   |         |  of business | areholding | Share     |
|                   |         |              | as of      | Capital   |
|                   |         |              |            | December  |
|                   |         |              | December   | 31, 2010  |
|                   |         |              | 31, 2010   |           |
|                   |         |              | (%)        |           |
+===================+=========+==============+============+===========+
| Indorama Holdings | T       | Holding      | 97.93      | Baht      |
| Ltd.              | hailand | company and  |            | 77        |
|                   |         | production   |            | 4,468,000 |
|                   |         | of wool      |            |           |
+-------------------+---------+--------------+------------+-----------+
| Indo-rama         | T       | Production   | 95.10[20]  | Baht      |
| Textiles          | hailand | and export   |            | 5         |
| (Thailand) Ltd.   |         | of wool      |            | 1,000,000 |
+-------------------+---------+--------------+------------+-----------+
| Beacon Trading    | UK      | Trading in   | 100[21]    | GBP       |
| (UK) Limited      |         | wool yarns   |            |           |
|                   |         |              |            | 10,000    |
+-------------------+---------+--------------+------------+-----------+
| Indorama Trading  | UK      | Trading in   | 100[22]    | GBP       |
| (UK) Limited      |         | wool yarns   |            |           |
|                   |         |              |            | 10,000    |
+-------------------+---------+--------------+------------+-----------+
| Indorama Trading  | Swit    | Trading in   | 100[23]    | CHF       |
| AG                | zerland | wool yarns   |            |           |
|                   |         |              |            | 50,000    |
+-------------------+---------+--------------+------------+-----------+

Others

+-------------------+---------+--------------+------------+-----------+
| Name              | Country | Type         | Sh         | Paid Up   |
|                   |         |  of business | areholding | Share     |
|                   |         |              | as of      | Capital   |
|                   |         |              | December   | December  |
|                   |         |              | 31, 2010   | 31, 2010  |
|                   |         |              | (%)        |           |
+===================+=========+==============+============+===========+
| IVL Belgium N.V.  | Belgium | Holding      | 100        | Euro      |
|                   |         | company for  |            |           |
|                   |         | investment   |            | 3,061,500 |
|                   |         | in Joint     |            |           |
|                   |         | Venture UAB  |            |           |
|                   |         | Ottana       |            |           |
|                   |         | Polimeri     |            |           |
|                   |         | Europe an    |            |           |
|                   |         | integrated   |            |           |
|                   |         | PTA/PET      |            |           |
|                   |         | plant in     |            |           |
|                   |         | Ottana,      |            |           |
|                   |         | Italy        |            |           |
+-------------------+---------+--------------+------------+-----------+
| IVL Singapore     | Si      | Investment   | 100[24]    | USD       |
| Pte. Ltd.         | ngapore | company      |            |           |
|                   |         |              |            | 100       |
+-------------------+---------+--------------+------------+-----------+

The Company’s Shareholding Structure

Shareholding structure of the Company as of December 31, 2010 is
illustrated as follows:

Note:

Indo-Rama Textiles (Thailand) Limited after transfer of entire business
to Indorama Holdings Limited is under liquidation

Indo Poly (Thailand) Limited after transfer of entire business to
Indorama Polyester Industries Public Company Limited is under
liquidation

^UAB Ottana Polimeri Europe is a joint venture company with 50%
shareholding

Shareholding structure of the Company as of March 2011 is illustrated as
follows:

[]

Revenue Structure

The details of the Company’s revenue from sales structure according to
consolidated financial statements for the year ended December 31, 2008
to 2010 are as follows:

+--------------------+----------+-----+---------+-----+---------+-----+
| Details            | Year     |     |         |     |         |     |
|                    | Ended    |     |         |     |         |     |
|                    | December |     |         |     |         |     |
|                    | 31,      |     |         |     |         |     |
+====================+==========+=====+=========+=====+=========+=====+
|                    | 2008     |     | 2009    |     | 2010    |     |
+--------------------+----------+-----+---------+-----+---------+-----+
|                    | (Bt      | %   | (Bt     | %   | (Bt     | %   |
|                    | million) |     | m       |     | m       |     |
|                    |          |     | illion) |     | illion) |     |
+--------------------+----------+-----+---------+-----+---------+-----+
| Revenue breakdown  |          |     |         |     |         |     |
| by Business        |          |     |         |     |         |     |
| Segments           |          |     |         |     |         |     |
+--------------------+----------+-----+---------+-----+---------+-----+
| PET                | 40,969   | 7   | 44,465  | 5   | 55,870  | 5   |
|                    |          | 6.8 |         | 5.5 |         | 7.7 |
+--------------------+----------+-----+---------+-----+---------+-----+
| Fibers and yarns   | 6,653    | 1   | 12,181  | 1   | 17,237  | 1   |
|                    |          | 2.4 |         | 5.2 |         | 7.8 |
+--------------------+----------+-----+---------+-----+---------+-----+
| PTA                | 14,732   | 2   | 45,980  | 5   | 47,991  | 4   |
|                    |          | 7.6 |         | 7.6 |         | 9.5 |
+--------------------+----------+-----+---------+-----+---------+-----+
| Others*            | 404      | 0.8 | -       | -   | -       | -   |
+--------------------+----------+-----+---------+-----+---------+-----+
| Elimination        | (9,426)  | (17 | (       | (28 | (       | (25 |
|                    |          | .6) | 22,632) | .3) | 24,240) | .0) |
+--------------------+----------+-----+---------+-----+---------+-----+
|   Consolidated     | 53,332   | 10  | 79,994  | 10  | 96,858  | 10  |
|   revenue from     |          | 0.0 |         | 0.0 |         | 0.0 |
|   sale of goods    |          |     |         |     |         |     |
+--------------------+----------+-----+---------+-----+---------+-----+
| Revenue breakdown  |          |     |         |     |         |     |
| by Geographic      |          |     |         |     |         |     |
| Segments           |          |     |         |     |         |     |
+--------------------+----------+-----+---------+-----+---------+-----+
| Thailand           | 6,064    | 1   | 11,916  | 1   | 13,909  | 1   |
|                    |          | 1.4 |         | 1.4 |         | 4.4 |
+--------------------+----------+-----+---------+-----+---------+-----+
| North America      | 12,548   | 2   | 12,438  | 2   | 20,337  | 2   |
|                    |          | 3.5 |         | 3.5 |         | 1.0 |
+--------------------+----------+-----+---------+-----+---------+-----+
| Europe             | 25,500   | 4   | 30,369  | 4   | 31,224  | 3   |
|                    |          | 7.8 |         | 7.8 |         | 2.2 |
+--------------------+----------+-----+---------+-----+---------+-----+
| Rest of the World  | 9,220    | 1   | 25,271  | 1   | 31,388  | 3   |
|                    |          | 7.3 |         | 7.3 |         | 2.4 |
+--------------------+----------+-----+---------+-----+---------+-----+
|   Consolidated     | 53,332   | 10  | 79,994  | 10  | 96,858  | 10  |
|   revenue from     |          | 0.0 |         | 0.0 |         | 0.0 |
|   sale of goods    |          |     |         |     |         |     |
+--------------------+----------+-----+---------+-----+---------+-----+

Source: The Company’s consolidated financial statements

Remark: * Other revenue includes revenue from sales of chemical products

[1] Held by IVL and Indorama Holding Ltd.

[2] Held by Indorama Polymers PCL

[3] Held by Indorama Polymers PCL

[4] Held by Indorama Polymers PCL and Asia Pet (Thailand) Ltd.

[5] Held by Indorama Polymers PCL

[6] Held by Indorama Polymers PCL

[7] Held by UAB Indorama Polymers Europe

[8] Held by UAB Indorama Polymers Europe

[9] Held by Indorama Polymers (USA) Inc.

[10] Held by Indorama Polymers PCL

[11] Held by Indorama Polymers PCL

[12] Held by Indorama Polymers PCL and the remaining 40% held by Serm
Suk PCL

[13] Shares of Indorama Polyester Industries PCL are delisted from the
SET effective on November 9, 2009

[14] Held by Indorama Holding Ltd. and IVL

[15] Indo Poly (Thailand) Ltd. transferred all of its business to
Indorama Polyester Industries PCL on July 31, 2008. Indo Poly (Thailand)
Ltd. was dissolved on August 3, 2009 and is being liquidated

[16] Held by Indorama Holding Ltd. and IVL

[17] The remaining is held by unrelated persons to IVL

[18] Held by Indorama Holding Ltd.

[19] Held by UAB Indorama Holdings Europe

[20] Held by Indorama Holding Ltd., transferred all its business to
Indorama Holdings on September 30, 2010 and under liquidation

[21] Held by Indorama Holding Ltd.

[22] Held by Indorama Holding Ltd.

[23] Held by Indorama Holding Ltd.

[24] Held by Indorama Polymers Public Company Limited