Clariant and India Glycols Limited (IGL) announced the creation of a 51-49% joint venture, Clariant IGL Specialty Chemicals Pvt. Ltd., to develop renewable ethylene oxide (EO) derivatives.
Originally announced in March 2021, the arrangement is now effective and combines IGL’s renewable bio-ethylene oxide derivatives business, comprising a multipurpose 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. Together, the firms aim to become a leader in green ethylene oxide derivatives to supply these renewable materials to the consumer care market in India and neighboring countries.
Clariant fully consolidated the joint venture as of July 1, 2021, and expects an incremental addition to the business area care chemicals in the range of around CHF 50 million for FY 2021. Clariant IGL Specialty Chemicals Private Ltd. will market Clariant’s entire range of industrial and consumer specialty products in the previously mentioned countries, while all other global markets are served by Clariant. To support production, India Glycols has agreed to a long-term supply agreement for ethylene oxide made from bio-ethanol as well as further utilities.
“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 IGL will make us one of the leading surfactant suppliers in India, with a focus on renewable solutions for home and personal care,” said Conrad Keijzer, CEO of Clariant.
“I am pleased with the swift manner in which both parties were able to obtain all necessary regulatory approvals,” said U.S. Bhartia, chairman of India Glycols Limited. “This allows us to now move ahead and leverage IGL’s position as the largest manufacturer of green EO in a value-generating combination with Clariant.”
“We experience a growing demand among our customers for home and personal care applications based on renewables,” said Christian Vang, global head of Clariant’s business unit industrial and consumer specialties. “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.”
The joint venture will be led by Nitin Sharma, current 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.”