Clariant AG

Clariant and India Glycols tap into green renewables megatrend by forming joint venture

JV to become a leading supplier of renewable ethylene oxide (EO) derivatives Production facilities in India to supply local and global markets Both parties contribute parts of their existing businesses and Clariant makes relevant equalization payment to attain majority ownership

Muttenz, March 11, 2021– Clariant, a focused, sustainable and innovative specialty chemical company, and India Glycols Limited (IGL), a leading company in the manufacturing of green technology-based chemicals, today announced a strategic partnership to establish a 51-49% joint venture 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, while providing Clariant the ability to leverage the EO derivatives globally across the home care, personal care and industrial applications segments of its Industrial and Consumer Specialties business. The partnership is subject to customary regulatory approvals.

“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.

“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.

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). In return, Clariant will contribute 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 attain a 51% stake and thus majority ownership. 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.