Lack of raw materials and poor infrastructure for the chemicals industry are hurdles for the specialty chemicals business in India, a potentially high-growth market, said Joerg Strassburger, managing director and country representative of German specialty chemicals major Lanxess in India.
The company supplies key chemical-based raw materials to sectors like automobile, tyre, paints and coatings, leather, construction and water treatment, among others.
?There is still a way to go for making India an attractive place to invest for the specialty chemical business,? said Strassburger. ?For the chemical industry, you need a certain infrastructure and I?m not talking about roads, there also needs to be easy and cost effective availability of raw materials.?
Despite the hurdles, the German company has invested euro 180 million in the last three years. Out of the 13 business units that Lanxess has globally, all of them are active in India. Six out of the 13 business units also have manufacturing units in India with plants at Jhagadia in Gujarat and Nagda in Madhya Pradesh.
?There is a huge potential for the specialty chemicals industry in India,? said Strassburger. ?In India, the chemicals business has a lot of internal demand as we supply to the automotive, paints, white goods and other such industries.?
?A recent study shows that from the present $20-25 billion, the sector will grow to $100 billion by 2020 if the government puts in a right framework for the chemicals industry,? he added.
