Clariant and India Glycols joint venture taps into green renewables megatrend
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22 Mar 2021 --- Specialty chemicals company Clariant is partnering with India Glycols Limited (IGL), which specializes in green technology-based chemicals. The partnership will establish a 51-49 percent joint venture in renewable ethylene oxide (EO) derivatives and is subject to customary regulatory approvals.
“Clariant’s Industrials and Consumer Specialties is clearly seeing a megatrend for green and sustainable ethoxylates. A partnership with IGL is the best opportunity for Clariant to enter the green EO space, as it can unlock not only further growth in India but also in other global markets,” Stefanie Nehlsen, marketing communications, global media and events for Clariant International, tells PackagingInsights.
“The venture’s focus will be on renewable EO derivatives, especially ethoxylates which meet the diversified needs of various end-use industries such as textile, pharmaceutical, personal care, emulsion polymerization, paint, detergent, automotive, agrochemical and other industries.”
Venturing into green materials
By combining production and distribution capacities, the joint venture is expected to become a leading supplier of renewable materials to the rapidly growing consumer care market in India and neighboring countries.
“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,” says U.S. Bhartia, IGL chairman.
“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.”
Global reach
Under the terms of the proposed agreement, India Glycols 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.
The partnership is in line with IGL’s strategy to promote value-added products through sustainable green chemistry.In return, Clariant will contribute its local Industrial and Consumer Specialties business in India, Sri Lanka, Bangladesh and Nepal, held by Clariant India, as well as a net cash payment to attain a 51 percent stake and thus majority ownership.
Clariant International will be the sole Clariant shareholder of the joint venture, while Bhartia will be the designated chairman.
“By partnering with India Glycols, Clariant will become one of the established players for EO derivatives in India and provide products on a renewable basis,” says Christian Vang, global head of Clariant’s Business Unit Industrial & Consumer Specialties.
“By working closely together and leveraging the unique capabilities of both parties, we see opportunities for profitable growth based on strong local organic demand as well as the global megatrend for renewable products.”
Partnering for the long-term
The collaboration will market Clariant’s entire range of Industrial and Consumer Specialties products in the previously mentioned countries, while all other global markets shall be served solely by Clariant.
To support production, India Glycols has agreed to a long-term supply agreement for EO made from bio-ethanol as well as further utilities. At its inception, the joint venture will have approximately 200 employees.
“Clariant is fully committed to supporting its Indian customers with the whole range of its product portfolio. By establishing this joint venture, Clariant is confident that it can further grow its range of solutions to the rapidly growing local consumer care market,” notes Nehlsen.
“Furthermore, it is well in line with the ‘Make in India’ and ‘Self-reliant India’ initiatives that are high on the government’s agenda and are also being supported by the country’s latest Union Budget,” she concludes.
By Kristiana Lalou
