Green technology-based chemical company India Glycols (IGL) has announced setting up a joint venture with Clariant International to carry out the business of ethanol-based ethylene oxide derivatives.

Uttar Pradesh-based IGL will have 49 percent shareholding, while Clariant 51 percent stake in the proposed joint venture company. The partnership is subject to regulatory approvals, IGL said in a BSE filing.

The joint venture is a strategic fit, said Rupark Sarswat, CEO of India Glycols, on Friday. Sarswat also said that this JV can bring a lot of synergies.

Speaking in an interview to CNBC-TV18, Sarswat said, “The joint venture of Clariant International and IGL Green Chemicals is a strategic fit and it can bring a lot of synergy. The strength, the manufacturing footprint, the bio based ethylene oxide from IGL and the technology and market reach that Clariant brings for India and nearby markets and potentially for these products globally as well.”

“The money that we will receive will help us strengthen the profit and loss (P&L) for IGL by restructuring and paying our debt and also, therefore, help us invest in some of the areas that we want to focus on going ahead,” he said.

However, Sarswat said that it’s too early to comment on whether they will reward the shareholders with a dividend.

Watch the video for more

(Edited by : Abhishek Jha)