The main purpose of the R&D unit would be to conduct research on syntheticand semi-synthetic fluids. The proposed R&D centre would be a part of itssubsidiary, Castrol India. The centre would prepare new products for theparent company with an eye on the domestic market.

Although, Castrol India is yet to prepare the nitty-gritty of the project,the centre would come up within the next six to eight months' time, CastrolIndustrial International chief executive John Briggs told The FinancialExpress.

According to Briggs, the parent company is bullish about the burgeoningdomestic market and it could be a sourcing point for many projects andproducts. He said Burmah Castrol has firmed up strategies for acquisitionsin the country and is ready to invest a maximum of $50 million for the same.

"We are looking at small to medium-sized companies with a good marketing andtechnology structure. We are also planning to make acquisitions inmetalworking segment worldwide. The company wanted to grow into othermarkets as well," he added.

Although, Castrol India Ltd, a subsidiary of Castrol Ltd, is yet to identifyany companies for the purpose of acquisitions, the chances for takeovers areenough, according to Castrol Industrial regional director (South Asia andthe Middle East) Jiten Goswamy.

Castrol India has drawn up a five-point strategy to expand its operations.The company is planning to develop the package of chemical managementservices including recycling, reprocessing and waste disposal services andtake this concept worldwide, while expanding geographically in all threeindustrial segments.

The company would establish priority segments and condense the product rangeto include only such products where there is a possibility of adding valuevia a service. The main emphasis of the recast strategy is to shrinkoverhead structure. Castrol India is planning to unveil its products throughan e-commerce venture.

Goswamy said with the launch of its chemical management services the companyis focussing on bearings, automobile, two-wheeler, garments, food beverages,power generation, defence and airline segments.