India Glycols Limited, manufacturer of green technology-based chemicals, and Clariant International, a specialty chemicals company, have formed a joint venture for renewable ethylene oxide (EO) derivatives after receiving all necessary regulatory approvals.
The joint venture will be named Clariant IGL Specialty Chemicals Private Limited, the companies said.
Clariant International Ltd. will be the sole Clariant shareholder with a 51% stake in the joint venture entity and India Glycols along with its subsidiary will hold a 49% stake. Both companies would appoint equal number of board members and US Bhartia will be the chairman of the board.
The venture combines India Glycols’s renewable bio-ethylene oxide derivatives business, which includes a multipurpose production facility including an alkoxylation plant located in Kashipur, Uttarakhand, with Clariant’s local industrial and consumer specialties business in India, Sri Lanka, Bangladesh, and Nepal.
The JV’s production facilities in India will supply to local and global markets, creating one of the largest green-focused specialty chemicals (EO Derivative) companies.
“The combining of production and 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 her neighboring 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,” the companies said.
The JV company has approximately 200 employees.
“I am very pleased with the swift manner in which both parties were able to obtain all necessary regulatory approvals. This allows us to now move ahead and leverage IGL’s position as the largest manufacturer of green EO in the world in a value-generating combination with Clariant,” said Bhartia.
The joint venture will be led by Nitin Sharma, currently head of Clariant’s industrial and consumer specialties business in South Asia.
“As part of our strategy, we are committed to adding value through sustainability. Our partnership with India Glycols will make us one of the leading surfactant suppliers in India, with a focus on renewable solutions for home and personal care”, said Conrad Keijzer, CEO of Clariant.