Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) on Wednesday (November 20) said it has signed a memorandum of understanding (MoU) with INEOS Acetyls International Ltd, UK, to explore the feasibility of building a world-scale, 600kt acetic acid plant at GNFC’s site in Bharuch, Gujarat, India.
INEOS Acetyls is a leading producer of acetic acid globally and GNFC is the only current producer of acetic acid in India. The two companies have held a technology partnership for close to 30 years but will now establish a new joint venture (JV) which will bring this project to market, currently forecast in 2028.
For this, GNFC and INEOS Acetyls International have formed a joint venture company in India. Each partner will hold 50% of the JV’s equity, as per the agreement finalised on November 20, 2024. The JV aims to construct and operate a world-scale acetic acid plant in India, coupled with a joint marketing framework for the sale and distribution of the product.
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Both GNFC and INEOS will share governance rights, including the appointment of directors and reserved matters related to share subscription and capital structure changes. While the MoU outlines the framework, the JV agreement will be executed at a later date. The JV will become an associate company of GNFC after the equity investment.
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 country’s reliance on imports.”
Pankaj Joshi, MD of GNFC, said, “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 the required boost to other evolving downstream demands saving precious foreign exchange outgo.”
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On November 19, shares of Gujarat Narmada Valley Fertilizers & Chemicals Ltd ended at ₹560, up by ₹2.10, or 0.38%, on the BSE.
(Edited by : Shoma Bhattacharjee)
