India Glycols Ltd. (IGL), that manufactures green technology-based chemicals and Clariant, focused on specialty chemicals, said they had completed the setting up of their 49-51% joint venture for renewable ethylene oxide (EO) derivatives after receiving all necessary regulatory approvals.
The JV will operate under the name Clariant IGL Specialty Chemicals Private Ltd.
The JV combines IGL’s renewable bio-ethylene oxide derivatives business, that includes a multi-purpose production facility, including an alkoxylation plant located in Kashipur, Uttarakhand (India), with Clariant’s local industrial and consumer specialties business in India, Sri Lanka, Bangladesh and Nepal.
Clariant International Ltd. will be the sole Clariant shareholder with a 51% stake in the JV while IGL along with its subsidiary will hold a 49% stake.
Both companies would appoint equal number of board members for the operation of JV and U.S. Bhartia, IGL’s chairman will be the chairman of the JV’s board.
The JV’s production facilities in India will supply to local and global markets.
“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 companies said in a statement.
“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 statement added.
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,” the statement said.
The JV will be led by Nitin Sharma, currently Head of Clariant’s Industrial and Consumer Specialties business in South Asia.
Ends
Sent from my iPhone
