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Lanxess to invest Rs 1250 crore in India till 2023

Mumbai : German specialty chemicals major Lanxess is strengthening its asset base in India and has announced plans to invest up to Rs 1250 crore over the next five years in the country.

The company said the focus areas of the proposed investment, to me made through 2023, will be chemical intermediates, high-performance plastics and water treatment products businesses. The investment comes on the back of the company's sales more than doubling in the country over the past 10 years.

Sales during the previous decade rose from Rs 1008 crore to Rs 2608 crore. The company said the year 2018 so far has also seen sales rise. The company's turnover increased by 14 per cent in the first nine months compared to the same period last year, it said, without disclosing sales figures for 2018.

According to the company, the main growth drivers in India is changing population, which is rapidly becoming larger, younger, more middle class and more urban.

Lanxess had already invested a sizeable amount in India over the years, among others for greenfield investments and acquisitions. The company currently operates production facilities for five business units at its production sites in Jhagadia, Gujarat and Nagda in Madhya Pradesh.

“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 capitalize the huge potential of the Indian chemical market and are therefore now launching a major investment package", Member of the board of management of Lanxess AG Hubert Fink said.

Since it has been incorporated in India in 2004, Lanxess has steadily grown its business in terms of asset base and turnover.

“The demographic trend in India is leading to an increased demand in the areas of mobility, urbanization, nutrition and clean water. Lanxess can cater to these demands with its wide portfolio of specialty chemicals", said Managing Director and Country Speaker of Lanxess India Neelanjan Banerjee said.

Among the products supplied by Lanxess in India are high-performance plastics for the automotive and electronics industries, flame retardants for application in the automotive and construction industries, chemical intermediates and active ingredients for the use in agriculture as well as ion exchange resins and reverse osmosis membranes for the processing and cleaning of water.

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