The Hindu Business Line : Shasun plans isobutyl benzene plant in Thailand

THE Chennai-based Shasun Chemicals and Drugs Ltd proposes to invest about Rs 32 crore in a project in Thailand, to produce 5,000 tonnes a year of isobutyl benzene.

It is learnt that the idea behind the project is to secure the supply of isobutyl benzene, which is a key raw material in the production of ibuprofen, an anti-inflammatory drug that Shasun manufactures.

Shasun Chemicals is one of the large manufacturers of ibuprofen in the world, with a market share of about 25 per cent. It has about 15 per cent of the US market.

Shasun's annual report for 2004-05 said that the company aimed to double its US market share in the current year.

The plant is coming up at Rayong in Thailand. Located as it is in `zone-2', Rayong offers a plethora of incentives: 50 per cent reduction of import duty on machinery, exemption from corporate income-tax for five years subject to a ceiling 100 per cent of investment capital, and exemption of import duty on raw or essential material used in export production in the first year.

Apart from these incentives, the other advantages are easy and low-cost availability of the raw material polypropylene and duty-free import of isobutyl benzene into India under the India-Thailand FTA.

Shasun could be importing into India isobutyl benzene of a value of about Rs 45 crore each year.

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