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The Indian arm of Ohio-based Lubrizol Corporation, Lubrizol Advanced Material India, on Tuesday announced the termination of all processor agreements for its CPVC pipes and fittings with Ahmedabad-based Astral Poly Technik.
A step-down subsidiary of the Warren Buffet-promoted Berkshire Hathaway, the company cited Astral Poly-Technik’s recent decision to begin local compounding of material and the launch of house branded lines of chlorinated polyvinyl chloride (CPVC), being in conflict with Lubrizol’s long established and successful CPVC branded business model.
Astral shares traded positive on the NSE at Rs 477.05, up 0.5 per cent from the previous close.
"With termination of this partnership, starting from October 9, 2016, Astral will no longer have access to Lubrizol’s compound or manufacturing assistance, and will no longer be permitted to sell FlowGuard, BlazeMaster or Corzan branded pipes and fittings," Lubrizol Advanced Material said in a statement here.
The inventor of chlorinated polyvinyl chloride (CPVC) and the owner of the trademarks, Lubrizol, however, will continue to be associated with the other contracted partner in India, Ashirvad Pipes Pvt Ltd.
Mathew Timmons, Managing Director, Lubrizol Advanced Materials India said, "Lubrizol is dedicated to supplying the highest quality CPVC products to service the Indian market. Our commitment remains steadfast through our support of processors like Ashirvad Pipes, who continue to benefit from our more than 50 years of expertise in compounding and manufacturing CPVC."
Notably, Lubrizol was the first global producer of CPVC to establish a compounds making facility in India with the capacity to produce approximately 55,000 tonnes annually at Dahej in South Gujarat. The company had invested around $50 million for this.
Lubrizol supplied CPVC compounds from this facility to the two licence-holders, Astral Poly Technik and Ashirvad, to make FlowGuard and other plumbing pipes and fittings.
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