– JV will operate as Clariant IGL Specialty Chemicals Private Limited
– JV to become a leading supplier of renewable derivatives of ethylene oxide (EO)
– From production sites to India will supply local and global markets
NOIDA, India, July 6, 2021 / PRNewswire / – India Glycols Limited (IGL: IN), (IGLY: IN), a leading manufacturer of chemicals based on green technologies and Clariant, a focused, sustainable and innovative specialty chemicals company, completed today Today the creation of their 49-51% joint venture for renewable derivatives of ethylene oxide (EO) after receiving all the necessary regulatory approvals. The joint venture will operate as Clariant IGL Specialty Chemicals Private Limited.
Originally announced in March 2021, the joint venture brings together IGL’s renewable bioethylene oxide derivatives business, which includes a multi-purpose production facility including an alkoxylation plant located in Kashipur, Uttarakhand (India), with the Industrial and Consumer Specialties activity of Clariant in India, Sri Lanka, Bangladesh and Nepal.
Clariant International Ltd. will be the sole shareholder of Clariant with a 51% stake in the JV. IGL and its subsidiary will hold 49% of the capital of the JV. The two companies would appoint equal board members to operate the joint venture and Mr. US Bhartia would be the chairman of the board.
The production facilities of the JV at India will supply local and global markets, creating one of the world’s largest green specialty chemicals (EO derivatives) companies. The combination of production and distribution capabilities will make this JV a leader in green ethylene oxide derivatives and become a key supplier of these renewable materials in the growing consumer care market in India and its neighboring countries. To support manufacturing in this entity, IGL has entered into a long-term supply agreement for ethylene oxide made from bioethanol and certain utilities.
The JV company has around 200 employees.
This exclusion is expected to result in a stronger P&L for IGL with interest savings through debt reduction, increase in EO and other utilities, dividend income from JV Company.
“I am very satisfied with the speed with which both parties were able to obtain all the necessary regulatory approvals. This now allows us to move forward and leverage IGL’s position as the world’s largest green EO manufacturer in a value-generating combination with Clariant, ”commented US Bhartia, President of ‘India Glycols Limited.
“This represents an excellent opportunity to build a business based on IGL’s lasting footprint strength as well as Clariant’s know-how and broad global reach to deliver sustainable and innovative products,” added Rupark Sarswat, CEO IGL.
“The successful closing of this joint venture strengthens our core portfolio and makes Clariant one of the leaders in green ethylene oxide derivatives. 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 suppliers of surfactants in India, with a focus on renewable solutions for the home and personal care, ”said Conrad Keijzer, CEO of Clariant.
Christian Vang, Global Head of Industrial & Consumer Specialties Business Unit at Clariant, added: “We are facing increasing demand from our customers for home and personal care applications based on renewable energy. With the joint venture officially established, we will continue to meet this demand with innovative, sustainable and high-quality solutions based on the unique capabilities of both partners. “
The joint venture will be led by Nitin Sharma, currently Head of Industrial and Consumer Specialties activity at Clariant in South Asia, who added: “Profitable growth through sustainability is the key goal for all of us in this newly formed company. The entire team will work together to leverage the contributions made by both partners to the joint venture in innovative solutions that serve the growing markets around us. “
About India Glycols Limited
India Glycols (IGLY: IN) is a leading company manufacturing bulk, specialty and performance chemicals based on green technology, as well as natural gums, spirits, industrial gases, sugar and nutraceuticals. The company was established as a one-stop mono-ethylene glycol plant in 1983. Since then, IGL has brought together advanced technology, innovation and an unwavering commitment to quality, to manufacture a wide range of products that have found worldwide demand. IGL’s state-of-the-art integrated facilities manufacture chemicals including glycols, ethoxylates, glycol ethers and acetates, and various performance chemicals. Its product line covers the chemicals, spirits, herbs and other phytochemical extracts and guar gum, industrial gases and real estate sectors, and finds applications in a growing number of industries.
IGL’s flagship chemicals division started with an innovative green approach to the manufacture of ethylene oxide and its derivatives. Using the molasses-ethyl alcohol-ethylene “green route”, the company is unique in the world. With the growing emphasis on green manufacturing, the Chemicals division is well positioned to meet the industry’s needs for environmentally friendly products and production techniques. Besides chemicals, India Glycols has a significant presence in the natural active pharmaceuticals and nutraceuticals space with Ennature Biopharma; a well-established natural gum division manufacturing guar gum and a variety of derivatives; a spirits division that manufactures locally and Indian made foreign liquors to the highest quality standards.
Clariant is a focused and innovative specialty chemicals company based in Muttenz, near Basel / Switzerland. At December 31, 2020, the company employed a total of 13,235 people. In fiscal year 2020, Clariant recorded sales of CHF 3.860 billion for its ongoing activities. The company operates in three business areas: care chemicals, catalysis and natural resources. Clariant’s corporate strategy is based on five pillars: focus on innovation and R&D, add value through sustainability, reposition the portfolio, intensify growth and increase profitability.
The Company has also provided information in this regard to the Stock Exchanges, as required by applicable laws.
For more details, please contact:
Head (legal) and secretary of the company
India Glycols Limited
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SOURCE India Glycols Limited