(MENAFN- KNN India)
New Delhi, Jul 31 (KNN) In a significant move that underscores India's growing importance in the global chemicals market, American specialty chemicals manufacturer Lubrizol has announced a USD 200 million (approximately Rs 1,674 crore) investment to establish a greenfield manufacturing facility in Aurangabad.
This substantial commitment, spread over four years, marks Lubrizol's second major investment in India within a span of 13 months.
The new plant, set to become Lubrizol's second-largest globally, will primarily focus on producing additives for lubricants used in vehicles and industrial machinery. This strategic decision is rooted in the company's optimism about India's burgeoning automotive sector and overall economic growth.
Bhavana Bindra, Managing Director of Lubrizol IMEA (India, Middle East, and Africa), highlighted the rationale behind this move: "The automotive market in India is almost the third-largest in the world. As an economy, we aspire to become the third-largest economy with the kind of growth rates that we are experiencing here."
The investment aligns with India's expanding specialty chemicals market, which currently accounts for 22 per cent of the country's chemicals and petrochemicals sector.
Valued at USD 32 billion, this market is projected to grow at a compound annual growth rate of 12 per cent between 2020 and 2025, according to a recent KPMG report.
Flavio Kliger, President of Lubrizol Additives, expressed the company's ambitious plans for the Indian market: "Our mission is to double the size of our market in India in the next five years. India has the right talent, local demand, and meets all the requirements that qualifies it to be a global hub for Lubrizol."
This latest announcement follows Lubrizol's June 2023 commitment of over USD 150 million in India, which included plans for the world's largest chlorinated polyvinyl chloride (CPVC) resin plant in Gujarat and a grease lab in Navi Mumbai. Additionally, the company revealed plans in April to establish a new Global Capability Centre (GCC) in Pune.
The new Aurangabad facility will primarily cater to domestic demand while also handling some exports. Funding for this project will partly come from accruals at Lubrizol's India unit, with the company currently finalising plans to raise the remaining capital.
As Lubrizol expands its footprint in India, it joins a competitive landscape that includes global players like Evonik Industries and Infineum, as well as several domestic manufacturers.
(KNN Bureau)
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