India Glycols and Clariant forms a Joint Venture in India

India Glycols Limited ("IGL"), a leading company in the manufacturing of green technology-based chemicals, today announced a strategic partnership to establish a 49-51% joint venture with Clariant, a focused, sustainable and innovative specialty chemical company, in renewable ethylene oxide (EO) derivatives.

By combining production and distribution capacity, 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 subject to customary regulatory approvals.

"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', commented U.S. Bhartia, Chairman of India Glycols Limited.

"This opportunity to partner with India Glycols is an important step 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', said Conrad Keijzer, CEO of Clariant.

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). Clariant will also introduce its local Industrial and Consumer Specialties business in India, Sri Lanka, Bangladesh and Nepal, held by Clariant India Ltd., as well as a net cash payment to secure a 51% stake in joint venture. Clariant International Ltd. will be the sole Clariant shareholder in the JV. Mr U.S. Bhartia would be the designated chairman of the joint venture.

Christian Vang, Global Head of Clariant's Business Unit Industrial & Consumer Specialties, added: "By partnering with India Glycols, Clariant will become one of the established players for ethylene oxide derivates in India and provide products on a renewable basis. 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."

"We are excited to establish a joint venture with Clariant for our renewable Bio-EO Derivative business, as it further enhances our ability to support the Indian consumer care market through an expanded range of products. Furthermore, the transaction enables us to secure a long-term supply agreement for our renewable ethylene oxide business to the joint venture", commented Rupark Saraswat, CEO, IGL.

To support manufacturing, IGL has agreed to a long-term supply agreement for ethylene oxide made from bio-ethanol. The joint venture will also market Clariant's entire range of Industrial and Consumer Specialties products in the region. EYacted as exclusive financial advisor to IGL for this transaction.

The Company has also furnished information in this regard to the Stock Exchanges, as required under the applicable laws.

Shares of INDIA GLYCOLS LTD. was last trading in BSE at Rs.570.6 as compared to the previous close of Rs. 585.55. The total number of shares traded during the day was 23137 in over 798 trades.

The stock hit an intraday high of Rs. 598 and intraday low of 554.2. The net turnover during the day was Rs. 13199289.

Source : Equity Bulls

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