Gujarat Narmada Valley Fertilizer and Chemicals (GNFC) has entered into memorandum of Understanding (MoU) with INEOS Acetyls International, United Kingdom (INEOS) for incorporation of a Joint Venture Company (JVCo.) in India.
GNFC will hold 50% stake in JVCo and the balance 50% stake will be held by INEOS.The MoU is signed to form a JVCo which will carry on the business in relation to construction and operation of world scale acetic acid (AA) plant in India, together with a joint marketing agreement for the sale and distribution of AA, manufactured by the JVCo. in India and such other matters as may be agreed from time to time. The JVCo. agreement will be executed later.
The companies will explore the feasibility to build a new world scale, 600kt Acetic Acid plant at GNFC's site in Bharuch, Gujarat, India.
Pankaj Joshi, MD GNFC said that India imports ~85% of its annual requirements of Acetic Acid. The proposed JV is expected to achieve objective of Make in India. Domestication of Acetic Acid will serve existing demand and provide required boost to other evolving downstream demands saving precious foreign exchange outgo.
David Brooks, CEO INEOS Acetyls, said, We are delighted to make this announcement today, working with our partner GNFC on this new project. India is recognised as being a key growth market for our products over the coming years and this investment will increase much needed locally produced acetic acid, reducing the countrys reliance on imports.
GNFC is a joint sector enterprise promoted by the Government of Gujarat and the Gujarat State Fertilizers & Chemicals (GSFC). GNFC has extended its profile beyond fertilizers through a process of horizontal integration. Chemicals/petrochemicals, energy sector, electronics/ telecommunications and information technology form its corporate portfolio.
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