Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) has recently informed exchanges that the company entered into a Memorandum of Understanding (MoU) with INEOS Acetyls International Limited, UK, on November 20, 2024. The agreement is aimed at forming a Joint Venture (JV) in India, with each party holding a 50% share in the venture.
The primary objective of this JV is to construct and operate a world-scale acetic acid (AA) plant in India, along with a joint marketing agreement for the distribution of AA produced by the JV.
Key details of the MoU include:
- GNFC and INEOS will each hold 50% of the JV’s share capital.
- Both parties have rights to appoint directors and make key decisions regarding share subscription and capital structure.
- The agreement does not fall under related party transactions, although post-investment, the JV will become an associate company of GNFC.
