US-based chemical giant, Eastman Chemical Inc., in keeping with its recent policy of licensing its product portfolio for manufacture to reputed and good companies, recently concluded memorandum of understanding with two Indian companies viz., Reliance Industries Ltd, Mumbai and Shasun Chemicals and Drugs Ltd, Chennai.
The agreement with Reliance Industries is for development of market for its product, "Spectar" co-polyester and "Eastar Glycol modified PET" (PETG). These two products are the fastest growing resins in the Eastman product portfolio. The former finds rapid acceptance for making thick plastic sheets and is expected to replace acrylic, polycarbonate and PVC. The latter has good demand from the flexible and rigid packaging industries.
The company may also license Reliance Industries its proprietary co-polyester technology and supply CHDM (1,4 - cyclohexamedimethanol) to manufacture co-polyester products for the Indian sub-continent.
Initially, Eastman Chemical will supply the co-polyester to Reliance Industries from its Malaysian facility, where it would also train the latter's personnel. Both the companies hope to build the market to 10,000 tons per annum (tpa) in three years time.
In a second deal, the American company has also licensed Shasun Chemicals & Drugs Limited to manufacture hydroxypropylmethyl cellulose phthalate (HPMCP), an excipient or non active ingredient of a drug.
As per the agreement, Eastman Chemical will supply Shasun Chemicals the know-how to manufacture HPMCP for a one-time license fee and also help the Indian company to market the product overseas.
The global demand for HPMCP is around 500 tpa fetching a price of $ 45/t. The domestic market for the fine chemical is estimated at 60 tpa and Shasun Chemicals intends to manufacture around 200 tpa.