Swiss specialty chemicals company Clariant and India Glycols Limited (IGL), which manufactures green technology-based chemicals, have signed a strategic partnership to establish a 51-49% joint venture in renewable ethylene oxide (EO) derivatives.
The JV, by combining production and distribution capacity, is anticipated to become a leading supplier of renewable materials to the consumer care market in India and neighbouring countries, says Clariant.
“This opportunity to partner with India Glycols is an important step in Clariant’s journey to strengthen our core portfolio, while adding value with sustainability,” said Conrad Keijzer, CEO of Clariant.
“It enhances the capacity of our Industrial and Consumer Specialties business in India and beyond, whereas the access to renewable ethylene oxide broadens our global offering to customers and this makes Clariant a leader in ‘green’ ethylene oxide derivatives,” said Conrad Keijzer, CEO of Clariant.
U.S. Bhartia, Chairman of India Glycols Limited, added: “The partnership is in line with IGL’s strategy to promote value added products through sustainable green chemistry in the domestic market while expanding footprints in global markets.
“IGL being the largest manufacturer of green EO in the world, which is based on a unique and green production process using bio-ethanol, would continue to leverage its strength in further developing complex and sustainable chemistry to create value for its shareholders.”
Under the terms of the proposed agreement, India Glycols will contribute its renewable Bio-EO Derivative business to the joint venture, which includes a multipurpose production facility including an alkoxylation plant located in Kashipur, in Uttarakhand, India.
In return, Clariant will contribute its local Industrial and Consumer Specialties business in India, Sri Lanka, Bangladesh and Nepal, held by Clariant India Ltd, as well as a net cash payment to attain a 51% stake and thus majority ownership.
Clariant International Ltd will be the sole Clariant shareholder in the JV, while India Glycol’s Bhartia will be be the designated chairman of the joint venture.
The partnership is subject to customary regulatory approvals.
