The first major investment of LANXESS in India comes in the wake of a spike in sales, which has more than doubled from Rs 1,008 crore to Rs 2,608 crore in the last decade.

 

Specialty chemicals company LANXESS is planning to strengthen its business in India and grow by taking advantage of the growth potential that the country has to offer. In a rare occurrence where the LANXESS global board members were also present, the company announced its plans to pump in €150 million till 2023, in order to diversify its solutions to the different industries it serves.

Focus areas of the investment will be the businesses for chemical intermediates, high-performance plastics and water treatment products. LANXESS had already invested a sizeable amount in India over the years, among others, for greenfield investments and acquisitions.

 

The company currently operates production facilities for five business units at its sites in Jhagadia in Gujarat and Nagda in Madhya Pradesh. LANXESS has production facilities for the business unit of Liquid Purification Technology (LPT), material protection products, among others operational out of the Jhagadia facility in Gujarat. Out of the 10 business units of LANXESS, the company also locally manufactures for five of them in India today.

 

“The Indian economy is currently the world’s fastest rising major economy, with the chemical industry as one of the fastest growing sectors. We aim to even capitalise the huge potential of the Indian chemical market and are therefore now launching a major investment package,” said Dr. Hubert Fink, Member of the Board of Management of LANXESS AG.

 

Since it has been incorporated into India in 2004, LANXESS has steadily grown its business in terms of asset base and turnover. In the last ten years, sales in India have more than doubled from Rs 1,008 crore to Rs 2,608 crore. 2018 has also been a good year so far for LANXESS India. The turnover increased by 14 per cent in the first nine months compared to the same period last year.

 

The main growth driver for LANXESS in India is the changing population which is rapidly becoming larger, younger and more urban. “The demographic trend in India is leading to an increased demand in the areas of mobility, urbanisation, nutrition and clean water. LANXESS can cater to these demands with its wide portfolio of specialty chemicals,” said Neelanjan Banerjee, Managing Director and Country Speaker, LANXESS India.

 

LANXESS now concentrates on high margin specialty chemicals, focusing on mid-size markets. “We have a clear ambition to be in each and every one of these mid-size markets. The areas in which LANXESS supplies products are tyres and automotive, chemicals, consumer goods, construction, agro-chemical among others,” said Dr. Hubert Fink, LANXESS AG Board of Management. LANXESS’ overall portfolio today is much more balanced and with that they see their business profile to be much more profitable than before.

 

LANXESS has changed its structure and divided its focus on four regions, out of which one specific region is India. “We have reserved money for growth in India and Mr. Banerjee is working on projects to be conducted in the next years to further broaden our asset platform here in India,” informed Dr. Rainier van Roessel, LANXESS AG Board of Management.

 

LANXESS offers solutions for those areas which the company believes are of highest interest for India. “In the housing area, we are offering pigments for paints. Besides, LANXESS is the leading manufacturer of flame retardants in the world,” said Dr. Rainier.

In the area of sustainability, Banerjee said, “A greenfield site has been built to our standards, but also in our acquired site we have reinvested significant amount of money.”