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GNFC Partners with INEOS to Build 600kt Acetic Acid Plant in Gujarat

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Synopsis:

Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) announced a partnership with INEOS to build a 600kt acetic acid plant in Gujarat, India. This joint venture aligns with ‘Make in India,’ reduces reliance on imports, and positively impacts the GNFC share price.

GNFC news today

Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) has signed a memorandum of understanding (MoU) with INEOS Acetyls International Ltd to establish a world-scale acetic acid plant in Bharuch, Gujarat. The proposed plant, with a capacity of 600kt, aims to address India’s heavy reliance on imports, as 85% of its acetic acid demand is met from abroad.

GUJ NAR VAL FER & CHEM L

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487.6-22.50 (-4.41 %)

Updated - 25 April 2025
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Key Takeaways

  • Partnership: Joint venture between GNFC and INEOS with 50% equity held by each partner.

  • Objective: Reduce India’s 85% acetic acid import dependency.

  • Capacity: The plant is planned for a world-scale production of 600kt annually.

  • Timeline: Project expected to commence operations by 2028.

  • GNFC Share Price: GNFC’s stock closed at ₹560 on November 19, reflecting market optimism.

Also read: Adani Infra Launches Open Offer to Buy 26% Stake in PSP Projects

Details of the Joint Venture

The joint venture will have equal equity participation, with governance rights shared between GNFC and INEOS. The JV company will be responsible for constructing and operating the plant. Additionally, a joint marketing framework will handle the sale and distribution of acetic acid, ensuring streamlined operations.

Parameter

Details

Plant Location

Bharuch, Gujarat

Production Capacity

600kt annually

JV Equity Structure

50% GNFC, 50% INEOS

Market Impact

Reduced reliance on imports

Projected Launch Year

2028

Boost for Domestic Acetic Acid Production

India currently imports a significant portion of its acetic acid requirements. The GNFC-INEOS collaboration is poised to contribute to the ‘Make in India’ initiative by domesticating production, addressing both existing and future demands. This move is expected to save foreign exchange and provide a stable supply chain for downstream industries.

Also read: Godrej Properties Acquires 53-Acre Land in Kolkata for ₹500 Crore

Market Impact and GNFC Share Price

The announcement positively impacted the GNFC share price, which closed at ₹560 on November 19, reflecting investor confidence in the initiative. With INEOS being a global leader in acetic acid production, this venture could strengthen GNFC’s position as a key player in India’s chemical sector.

The partnership between GNFC and INEOS is a significant step towards bolstering India’s chemical manufacturing capabilities and reducing dependence on imports, aligning with national economic goals.

Also read: UPL’s Advanta Secures $350M Investment from Alpha Wave Global

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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