Shares of Rain Industries were trading flat with minor gains on 25 September after the company expanded its focus on sustainable chemicals after its wholly owned subsidiary, Rain Carbon Inc., entered into a strategic collaboration with Dutch company BioBTX to develop renewable aromatic products. 

The partnership will focus on converting plastic waste into chemical products that can serve as alternatives to conventional fossil-based materials.

Under the collaboration, BioBTX will supply circular aromatic oil produced using its proprietary Integrated Catalytic Cracking Process (ICCP) technology. Rain Carbon will then process the oil into benzene, phthalic anhydride and other aromatic derivatives for use across various industries.

BioBTX is developing its first commercial-scale facility at Delfzijl in the Netherlands. The company took a Final Investment Decision for the project in July 2026. The plant is designed to produce around 10,000 tonnes of renewable aromatic oil annually from plastic waste. The facility is expected to begin operations in 2028.

The aromatic oil will contain compounds such as benzene, toluene and xylenes, which are widely used as building blocks in the chemical industry. These materials are used in products ranging from plastics and coatings to pharmaceuticals, automotive components and other industrial applications.

Rain Carbon will use its existing processing capabilities to convert the circular feedstock into finished chemical products. According to the companies, these products are intended to meet quality and performance standards comparable with conventional fossil-based alternatives. 

This could allow customers to introduce recycled or renewable feedstocks into existing manufacturing processes without major changes to their downstream applications.

The collaboration comes as manufacturers face increasing pressure to reduce carbon emissions and increase the use of recycled materials. BioBTX said it has already seen demand from industries including pharmaceuticals, coatings, toys and automotive products for materials with higher recycled content and lower carbon footprints.

For Rain Industries, the partnership provides an opportunity to participate in the growing circular chemicals market while using Rain Carbon’s experience in processing carbon-based materials. However, the immediate financial impact is likely to remain limited because BioBTX’s commercial facility is not expected to start operations until 2028.

At 2:45 pm, the shares of Rain Industries were trading 0.70% higher at Rs 219.76 on NSE. 

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