INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) have signed a Memorandum of Understanding (MOU) to evaluate the feasibility of establishing a 600,000-ton-per-year acetic acid production facility at GNFC’s site in Bharuch, Gujarat.
India currently imports about 85% of its annual acetic acid requirements, according to GNFC Managing Director Pankaj Joshi. The proposed plant, expected to begin operations in 2028, aims to reduce this dependency by increasing domestic production capacity.
This initiative builds on a nearly three-decade-long technology partnership between the two companies. The project will be developed through a new joint venture, with both firms contributing expertise to address existing and emerging demands for acetic acid in India.
David Brooks, CEO of INEOS Acetyls, stated that the investment is part of the company’s strategy to support India’s growing market needs. The domestication of acetic acid production could also help reduce foreign exchange outflows associated with imports.
The press release notes that INEOS Acetyls is a significant global producer of acetic acid, with a presence in Europe, the Americas, and Asia, while GNFC operates primarily in fertilizers and chemicals, contributing substantially to its segment revenue.
The partnership aligns with broader efforts to enhance self-reliance in key industrial sectors under India’s “Make in India” initiative. The details of the project’s capital investment and operational structure are expected to be finalized as part of the feasibility study.