Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), in collaboration with UK-based INEOS Acetyls International, announced the formation of a 50:50 joint venture to establish a large-scale acetic acid production facility in India. This strategic partnership is designed to handle both the plant’s operations and the marketing of acetic acid produced domestically, marking a significant milestone in strengthening India’s chemical manufacturing capabilities.
Joint Venture Structure and Expertise
The memorandum of understanding, signed on November 20, 2024, outlines equal representation on the board and shared subscription rights for both parties. INEOS, a leader in acetyls production, will contribute its technical expertise to the venture, while GNFC will leverage its established presence and deep knowledge of the Indian market. Once operational, the joint venture will be classified as an associate company of GNFC, solidifying the company’s role in the growing domestic chemical sector.
Boosting India’s Self-Sufficiency in Chemicals
This collaboration supports India’s broader goal to reduce import dependency and enhance domestic chemical production. GNFC’s 50% stake in the venture further aligns with the government’s focus on bolstering local manufacturing and sustainability in the chemical industry. With this partnership, both companies are poised to play a significant role in improving India’s acetic acid production capacity while contributing to the country’s economic development.
