The Hindu Business Line : Huntsman to expand India operations

The US-based Huntsman group plans to expand operations in India through product expansion, acquisitions and make its production facilities here a global sourcing point.

Huntsman Advanced Materials (India) Ltd, which has a 76 per cent stake in Petro Araldite Pvt Ltd, a joint venture with Tamilnadu Petroproducts, plans to invest over $10 million in the next two years, according to Mr Gorm Jensen, Vice-President, Advanced Materials, a division of Huntsman.

At a press conference here today to launch a range of epoxy-based adhesives for the construction industry and the do-it-yourself segment, he said the company would extend its range to include other classes of adhesives. With epoxy-based adhesives, Huntsman is at the primer coat level and wants to add products for topcoats and finishes.

Acquisitions

These would be through acquisitions, one of which is to be finalised later this month. Huntsman is acquiring Ciba's textile effects business, which is manufacturing of textile dyes and chemicals. As a part of this acquisition it would gain a 21 per cent stake in Swathi Organics, Pondicherry, he said.

Mr Jensen declined to elaborate further on the Huntsman's other acquisition plans.

To invest $10 m

In Petro Araldite, which is to be a global sourcing point, they would invest over $10 million (Rs 45 crore). Petro Araldite's operations are stabilising following the acquisition of Vantico's stake by Huntsman. It will have a positive net worth by 2007 or 2008. Its turnover in 2005-06 was Rs 220 crore of which Rs 45 crore was from exports, he said.

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