Financial Daily from THE HINDU group of publications
Saturday, Nov 05, 2005
Financial Daily from THE HINDU group of publications Saturday, Nov 05, 2005 |
|
|
|
|
|
|
|
Corporate
-
New Projects Rohm and Haas to set up facility for specialty chemicals in South Latha Venkatraman
Mumbai , Nov. 4 ROHM and Haas (India) Pvt Ltd, a specialty chemicals company, plans to invest Rs 100 crore in setting up a greenfield facility in South India and expand capacities in its existing plant in Western India. The company, 100 per cent owned by the US-based Rohm and Haas, is setting up the facility in South India primarily to address the growth in the two key businesses it is present - architect and functional coatings; and adhesives and sealants. The need for investments in capacity enhancement stems from the growth opportunities present in India, said Mr Pavan Kumar, Managing Director, Rohm and Haas (India) Pvt Ltd. India is an important market in the Asia-Pacific region for the US-based parent. The company is awaiting some key studies for setting up the greenfield plant in South India. "The geography of the greenfield plant would depend on the proximity to the port as we import key raw materials," Mr Kumar said. Besides, the plant's location should offer logistical advantage, he said. A part of the Rs 100-crore investment would also go into expansion of its manufacturing facility at Taloja, near Mumbai. This plant manufacturers water based emulsion polymers for the decorative paints, textiles, construction, paper coatings and leather industries, and flexible packaging adhesives. The company's capacity building plan is expected to help it to grow its turnover to Rs 700 crore over the next five years from Rs 250 crore in 2005. This would largely come from generic market growth, Mr Kumar said. "Our key end users are growing at a rate higher than the country's GDP. The paints industry is growing at 12-14 per cent and within paints decorative is growing faster. At the same time, industrial paints, which is a smaller market, also hold a lot of potential," he said. Though much of the focus for Rohm and Haas would be the growing domestic market, the company would also continue to export. Overseas sales from India would form 20-25 per cent of the turnover. The setting up of a greenfield facility in India would help the company expand its portfolio of offerings for the domestic market. "We would like to take a step ahead of regulation and go in for environmental-friendly polymers and additives for water-based paints, solvent-free adhesives, plastic additives and chemicals for pharmaceutical industry," Mr Kumar said.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
