Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), a state-owned enterprise, has announced a 50:50 joint venture with UK-based INEOS Acetyls International to build and manage a large-scale acetic acid production facility in India. The new partnership will handle both the plant’s operations and domestic marketing of the acetic acid produced.
A memorandum of understanding, signed on November 20, outlines equal board representation and shared subscription rights for both partners. The formal joint venture agreement is expected to follow in due course.
INEOS, a global leader in acetyls production, will contribute technical expertise, while GNFC will leverage its established position in India’s chemical industry and deep knowledge of local markets. Once the investment is completed, the joint venture will be classified as an associate company of GNFC.
The share subscription price will be determined in line with relevant regulations. GNFC has clarified that this investment does not qualify as a related party transaction, with no additional promoter group involvement beyond its 50% stake. This collaboration marks a significant step in strengthening India’s chemical manufacturing capabilities, aligning with the nation’s strategy to enhance domestic production and reduce import dependency.
INEOS is a multinational chemicals company headquartered in London, United Kingdom. Founded in 1998, it has grown to become one of the largest chemical producers globally, operating in sectors such as petrochemicals, specialty chemicals, and oil and gas. INEOS has an extensive portfolio of products, including plastics, synthetic oils, solvents, and advanced materials used in industries ranging from automotive and construction to healthcare and energy.
Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), headquartered in Bharuch, India, is a leading producer of fertilizers and chemicals. Established in 1976, GNFC operates as a joint sector enterprise between the Government of Gujarat and the Gujarat State Fertilizers & Chemicals Ltd (GSFC). The company produces a wide array of products, including urea, ammonia, nitric acid, and industrial chemicals, catering to both domestic and international markets.
Known for its innovation, GNFC was the pioneer in introducing Neem-coated urea, enhancing the efficiency of nitrogen delivery in agriculture. The company is also active in information technology services through its subsidiary, NCode Solutions, and demonstrates a strong commitment to sustainability and community welfare through its corporate social responsibility initiatives.
