Polychem, established in 1955, is a diversified company involved in the production of chemicals and alcoholic beverages. Its chemical products include polystyrene, styrene monomer, industrial alcohol, vinyl acetate monomer (VAM), acetic acid, and polyvinyl alcohol (PVA). The company is also active in the alcoholic beverage sector, marketing brands such as Royal Secret, Alcazar, and Beehive. Polychem expanded its operations through a strategic alliance with Dow Chemical Company to market speciality polystyrene in India and collaborated with AVX, US, to form Gujarat Poly-AVX Electronics for manufacturing electronic components.
In 1992, Polychem raised funds through a rights issue to expand its alcohol distillery and chemical plants. However, by 1999-2000, financial struggles led Polychem to approach the Board for Industrial and Financial Reconstruction (BIFR) under SICA provisions, with IDBI appointed as its operating agency. Despite its strategic partnerships and diverse product offerings, the company's financial instability poses challenges to its operations.
