Noida-based India Glycols (IGL), a leading company that manufactures green technology-based bulk, specialty and performance chemicals and natural gums, spirits, industrial gases, sugar and nutraceuticals, & Swiss firm Clariant, have recently completed the creation of their 49-51 per cent joint venture (JV) for renewable ethylene oxide (EO) derivatives after receiving all necessary regulatory approvals. The joint venture will operate under the name Clariant IGL Specialty Chemicals Private Limited.
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, with Clariant’s local Industrial and Consumer Specialties business in India, Sri Lanka, Bangladesh and Nepal.
Clariant International 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. Both companies would appoint equal board members for the operation of JV and US Bhartia would be the chairman of the Board.
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.
The JV company has approximately 200 employees. This carve-out is expected to result in a stronger P&L for IGL with interest saving owing to debt reduction, EO and other utilities mark up, dividend income from JV Company.