Clariant has announced its strategic partnership with India Glycols Limited (IGL), to establish a 51-49% joint venture in renewable ethylene oxide (EO) derivatives.
IGL will contribute its renewable Bio-EO derivative business to the joint venture, which includes a multipurpose production facility including an alkoxylation plant located in Kashipur, Uttarakhand (India).
In return, Clariant will contribute its local industrial and consumer specialties business in India, SriLanka, Bangladesh and Nepal, held by Clariant India Ltd., as well as a net cash payment to attain a 51% stake and thus majority ownership.
Clariant International Ltd. will be the sole Clariant shareholder in the JV.
Conrad Keijzer, CEO of Clarian, said, "This opportunity to partner with India Glycols is an importantstep in Clariant’s journey to strengthen our core portfolio, while adding value with sustainability. It enhances the capacity of our Industrial and Consumer Specialties business in India and beyond, whereas the access to renewable Ethylene Oxide broadens our global offering to customers and this makes Clariant a leader in green Ethylene Oxide Derivatives."
U.S. Bhartia, designated chairman of the joint venture and chairman of India Glycols Limited. said, "The partnership is in line with IGL’s strategy to promote value added products through sustainable green chemistry in the domestic market while expanding footprints in global markets. IGL being the largest manufacturer of green EO in the world, which is based on a unique and green production process using bio-ethanol, would continue to leverage its strength in further developing complex and sustainable chemistry to create value for its shareholders."
Update: Originally announced in March 2021, the joint venture is now effective. Clariant will fully consolidate the joint venture as of July 1, 2021 and expects an addition to the business area care chemicals in the range of around CHF 50 million for the FY 2021.
The joint venture will be led by Nitin Sharma, currently head of Clariant’s industrial and consumer specialties business in South Asia, who added: “Profitable growth through sustainability is the key target 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 into innovative solutions that serve the growing markets around us.”
Christian Vang, global head of Clariant’s business unit industrial and consumer specialties, said, “We experience a growing demand among our customers for home and personal care applications based on renewables. With the joint venture officially established, we will press ahead to fulfill this with innovative, sustainable and high-quality solutions based on the unique capabilities of both partners.”
Keijzer added, “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 surfactant suppliers in India, with a focus on renewable solutions for home and personal care."