India Glycols forms 49-51 JV with Clariant for renewable ethylene oxide derivatives
The JV's production facilities in India will supply to local & global markets, creating one of the largest green-focussed speciality chemicals (EO derivative) companies.
India Glycols Limited (IGL) along with Clariant has completed the creation of their 49-51 per cent joint venture for renewable ethylene oxide (EO) derivatives after receiving all the necessary regulatory approvals. The joint venture will operate under the name, Clariant IGL Specialty Chemicals Private Limited.
Clariant International Ltd will be the sole Clariant shareholder with a 51 per cent stake in the JV. IGL along with its subsidiary will hold a 49 per cent stake in the JV, which will have approximately 200 employees.
Originally announced in March 2021, the joint venture combines IGL's renewable bio-ethylene oxide derivatives business, which includes a multipurpose production facility including an alkoxylation plant located in Kashipur, Uttarakhand (India), with Clariant's local industrial & consumer specialties business in India, Sri Lanka, Bangladesh, and Nepal.
The JV's production facilities in India will supply to local & global markets, creating one of the largest green-focussed speciality chemicals (EO derivative) companies. The combining of production & distribution capacities will make this JV, a leader in green ethylene oxide derivatives and become a key supplier of these renewable materials to the rapidly growing consumer care market in India and its neighbouring countries. To support the manufacturing in this entity, IGL has agreed to a long-term supply agreement for ethylene oxide made from bio-ethanol and certain utilities.
India Glycols is a leading company that manufactures green technology-based bulk, speciality and performance chemicals as well as natural gums, spirits, industrial gases, sugar & nutraceuticals.
On Thursday, the stock of India Glycols opened gap up 1.2 per cent at Rs 649.90 from its previous close of Rs 642.05 on BSE.