Lanxess expressed its commitment to grow in the India at the seminar on chemical and petrochemical industry in New Delhi. The company now calls upon policy maker to provide the required basic conditions for the domestic chemical industry.
New Delhi/India – While addressing the august audience on the topic ‘Investments in the chemical industry and factors imperative for its sustained growth’, Dr. Joerg Strassburger, Managing Director and Country Representative, Lanxess India assured that the Indian chemical industry holds immense potential and is poised for strong growth. “In the backdrop of growth shifting from western markets to the Asia Pacific and favorably growing consumer driven industries in India like construction, automotive, tyre and agrochemicals, the country has the potential to build a US $ 80 billion to US $ 100 billion specialty chemical industry by 2020”, said Strassburger.
Based on this foresight, Lanxess has invested around € 150 million (` 1000cr approx.) in assets in the last three years. These include setting up a greenfield manufacturing site with several utility services at Jhagadia Chemical Park in Gujarat, acquisition and continuous upgradation of the assets of a manufacturing plant in Nagda in Madhya Pradesh and a brand new office building in Thane, which serves as the head office for its operations in India.
Strassburger is convinced that India holds a lot of promise for the chemical industry but not without some corrections that are imperative for its sustained growth. The challenges lie in the areas of infrastructure, manpower and support from the administration. “The availability of continuous power supply, availability of natural gas, connections to common sewage and effluent treatment plants from the sites, good connectivity to major industrial clusters by highways, ports and airports are some of the quintessential infrastructure requirements that the industry presently has”, Strassburger explained.
“Since there are very few sustainable chemical parks in India, availability of land is scarce for companies to set up plants. On the raw materials front, higher cost and non-availability of feedstock is often a handicap for scaling up manufacturing operations”, he further added.
“The potential of the Indian chemical industry can be leveraged if the concerns are addressed. There is a projected increase of another 70 million middle class households propelling the end user industries and we can bank on a strong growing economy with a base of approx. US $ 1.7 trillion,” concluded Strassburger optimistically.