Lubrizol's $150 Million Investment in India Strengthens its Position in the Growing Chemical Industry

The Lubrizol Corporation, a US-based specialty chemicals firm and a subsidiary of Berkshire Hathaway, is set to make its largest-ever investment in India. With a keen focus on housing-led infrastructure, transportation, and home products, Lubrizol's CEO and President, Rebecca Liebert, announced the company's plan to invest $150 million in the country. This strategic move aims to capitalize on the booming Indian market and reinforce Lubrizol's presence in the region. In this blog post, we will delve into the details of Lubrizol's investment and its significance for the company's future growth in India.

Lubrizol initially entered the Indian market in 1996 through a joint venture with Indian Oil Corporation, specializing in lubricants and fuel products. The company then introduced its chlorinated polyvinyl chloride (CPVC) product offerings to India in 2001. Building on its successful partnerships, Lubrizol is now preparing to invest in its additives business by installing a state-of-the-art 100,000-metric tonne CPVC resin line in collaboration with Grasim Industries at its Vilayat site. Moreover, the company plans to double its compounding capability at its Dahej plant. These strategic investments demonstrate Lubrizol's commitment to expanding its manufacturing capabilities in India and meeting the growing demand for its products.


Overcoming Challenges and Delayed Project Timeline


Despite the initial announcement of the investment in 2020, the project faced setbacks due to the COVID-19 pandemic and global supply chain disruptions. Rebecca Liebert acknowledged these challenges and confirmed that Lubrizol plans to break ground in the fall, with the startup anticipated to take place in 2025. By overcoming the obstacles and ensuring safe manufacturing practices, Lubrizol aims to deliver high-quality products that adhere to the highest standards.


Capturing Growing Opportunities in the Indian Market

The Indian market presents a significant growth opportunity for Lubrizol, with the country currently being the fastest-growing region for the company. Accounting for 50% of Lubrizol's volume in its TempRite or CPVC business, India continues to exhibit high single-digit to low double-digit growth rates. In particular, the demand for housing in India serves as a major driver of the CPVC market. Lubrizol's General Manager of TempRite Engineered Polymers, Scott Mold, highlighted the country's initiatives to provide clean water for all and emphasized Lubrizol's commitment to supporting these initiatives through its advanced product offerings.


Meeting the Growing Demand and Targeting Revenue Milestones

Last year, approximately 240,000 tonnes of CPVC were sold in India, and Lubrizol's expansion plans will add another 100,000 tonnes to its capacity. With a growth rate of 7-10%, Rebecca Liebert expects the additional capacity to be fully consumed within the next four years. This optimistic outlook is bolstered by Lubrizol's commitment to manufacturing excellence, ensuring that it can meet the rising demand for CPVC in the Indian market. Furthermore, Lubrizol aims to achieve a revenue milestone of $1 billion in India within the next five years, emphasizing the company's long-term commitment to the region.


Lubrizol's decision to invest $150 million in India showcases its confidence in the country's burgeoning market and its commitment to serving customers in key sectors such as housing-led infrastructure, transportation, and home products. By expanding its additives business, forging strategic partnerships, and enhancing its manufacturing capabilities, Lubrizol aims to solidify its position as a leading player in the Indian chemical industry. The company's focus on delivering high-quality products, supporting initiatives for clean water in housing projects, and capturing market growth opportunities is a testament to its long-term commitment to India. As Lubrizol embarks on this transformative journey, it is poised to shape the future of the chemical industry in India while contributing to the country's sustainable development goals.

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