The move is in line with a broader strategy by Persian Gulf Petrochemical Industries Company (PGPIC) to enhance disclosure across its subsidiaries, according to CEO Mohammad Shariatmadari. The offering is expected to take place in the coming weeks.
Sustained Profitability Positions Arvand as Top Performer
Driven by internal capacity, skilled personnel, and market intelligence, Arvand recorded a net profit of 46 trillion rials ($920 million) in the fiscal year ending March 2024, on annual revenues of 195 trillion rials. Over the past three years, the firm has generated over 200 trillion rials in cumulative net income, placing it among the most profitable petrochemical entities in Iran.
Integrated Value Chain from Sea Salt to Finished Products
Located in the Mahshahr Special Economic Zone and spanning 108 hectares, Arvand was established in 2002 and employs German Uhde technology in a fully integrated production line. Starting from seawater-derived salt, the company manufactures chlorine, caustic soda, EDC, VCM, and both suspension and emulsion PVC—components vital to various industrial sectors.
Competitive Edge in PVC Markets
With an installed annual PVC production capacity of 340,000 tonnes, Arvand produces one grade of S-PVC and six grades of E-PVC, with plans to expand its S-PVC offerings to eight grades to meet future demand. This flexibility strengthens its competitiveness in both domestic and global markets.
Export Growth Underpinned by Product Diversity
Arvand has expanded its international footprint, particularly in Iraq, the Persian Gulf states, Russia, and Central Asia, exporting high-margin products like PVC and caustic soda. With global demand for PVC rising in construction, automotive, and packaging industries, Arvand’s product diversity has enabled it to secure a consistent international market share.
Over 1,000 Domestic Clients Rely on Caustic Soda Supply
Domestically, Arvand is a major supplier of caustic soda (NaOH), with more than 1,000 industrial customers in sectors ranging from food processing and textiles to pharmaceuticals and metal refining, highlighting its strategic role in Iran’s industrial value chain.
IPO Presents Attractive Opportunity for Investors
Analysts say the IPO offers a compelling case for investors due to Arvand’s high profitability, transparent performance, export potential, and product diversification. Key financial indicators such as profit margins, return on investment, and sales-to-profit ratios support a favorable market entry.
Stable Feedstock Supply Ensures Production Continuity
Unlike many domestic peers, Arvand benefits from a secure and stable supply of ethylene feedstock, reducing production risk and enhancing operating capacity. The positive ethylene balance in Iran is expected to last for at least a decade, safeguarding Arvand’s operations.
Skilled Workforce and Technology Upgrades Drive Efficiency
Arvand attributes much of its success to a young, highly trained workforce that blends technical expertise with operational experience. The company has consistently invested in training and modernization, using advanced global technologies to upgrade its chlor-alkali units, VCM furnaces, cooling towers, and salt wash plants, thereby boosting efficiency and cutting energy costs.
Operational Stability Amid Energy Constraints
While energy supply disruptions challenge many Iranian petrochemical firms, Arvand benefits from utility infrastructure in Mahshahr, enabling uninterrupted operations and minimizing downtime.
The company reports negative inventory levels in key products like PVC and caustic soda due to high demand and pre-sale agreements—underscoring its solid market position and customer trust.
Strategic Growth Outlook
Arvand’s growth strategy extends beyond capacity expansion. It plans to invest in downstream industries to produce final goods such as packaging films, polymer pipes, industrial parts, medical equipment, and building materials. It also aims to broaden its export base to Central Asia, Africa, Turkey, and Eastern Europe.
A New Chapter in Iranian Capital Markets
With its IPO, Arvand enters a new phase, offering investors a rare combination of profitability, transparency, export stability, and strategic vision. The listing is seen as a potential catalyst for a more mature and sustainable petrochemical investment environment in Iran.