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Listed firm India Glycols Limited (IGL) on Tuesday said that it had formed a joint venture company with Switzerland’s Clariant to manufacture renewable ethylene oxide derivatives.

Called Clariant IGL Specialty Chemicals Private Limited, the joint venture will be owned 49% by IGL and its subsidiary and 51% by Clariant.

The stock of IGL closed 2.61% higher on the NSE at Rs 699 per share against a flattish Nifty.

First announced in March 2021, the joint venture combines IGL’s renewable bio-ethylene oxide derivatives business, which includes a multipurpose production facility in Kashipur, Uttarakhand with Clariant’s local Industrial and Consumer Specialties business in India, Sri Lanka, Bangladesh and Nepal, IGL said in a statement.

The combining of production and distribution capacities of both the companies would make the JV a leader in green ethylene oxide derivatives and a key supplier of these renewable materials, as per the statement. The JV’s production facilities in India will supply to local and global markets. The JV employs 200 people.

Both the partners would appoint an equal number of board members for the JV. US Bhartia, the chairman of IGL, will also chair the JV’s board.

“I am very pleased with the swift manner in which both parties were able to obtain all necessary regulatory approvals. This allows us to now move ahead and leverage IGL’s position as the largest manufacturer of green EO in the world in a value-generating combination with Clariant,” Bhartia said in a press statement.