Specialty chemicals firm Lanxess Thursday said it is planning to invest up to Rs 1,250 crore in India over the next five years to strengthen businesses for chemical intermediates, high-performance plastics and water treatment products.
The company is planning to focus on profitable mid-sized markets including Indian and China and expand integrated value chain, according to Lanxess AG member of the board of management Hubert Fink.
"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 better capitalise the huge potential of the Indian chemical market and are, therefore, now launching a major investment package," Fink told reporters here.
"We are planning to invest up to 150 million euro (Rs 1,250 crore) till 2023 in India to strengthen our production sites," he said.
India is an important market for the company, he said, adding globally the firm has developed four regions - India, Americas, Asia Pacific (APAC) and Europe, and Middle East and Africa.
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Lanxess had already invested a sizable amount in India over the years for greenfield investments and acquisitions.
"Going forward, we are not ruling out possibilities of acquisitions. The greenfield projects are likely to be in areas where we already have our footprints," said Fink.
The company currently operates production facilities for five business units at its sites in Jhagadia in Gujarat and Nagda in Madhya Pradesh.
Fink said the firm is in discussion for expanding capacity in Jhagadia and Nagda.
Lanxess, which was incorporated into India in 2004, claimed to have more than doubled its sales here in the last 10 years, from Rs 1,008 crore to Rs 2,608 crore.
Lanxess in India managing director and country speaker Neelanjan Banerjee said the firm in 2018 hiked its turnover by 14 per cent year-on-year in the first nine months.
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