LANXESS India: Demand flat in last 3 months

AHMEDABAD, JUNE 20:

While the demand in the first three months of 2012 was “okay”, the next three months, April to June, have seen no growth, the impact of which may be seen in the coming months, Dr Datta Prasad Talekar, Senior Executive Director, LANXESS India Pvt Ltd, said here on Wednesday.

The company, a wholly-owned subsidiary of LANXESS Deutschland GmbH, which manufactures specialty chemicals for industries, exports about 80 per cent of its products from the Jhagadia (Gujarat) and Nagda (Madhya Pradesh) facilities to Europe and Asia-Pacific, he said here.

Current problems such as the euro-zone crisis, volatile exchange rates and higher raw material costs have further compounded the problem, he said.

The demand for specialty rubber and paints from the automobile sector has gone down, Dr Talekar said.

The company had so far invested 180 million euros on its Jhagadia and Nagda plants, where a total of six plants manufacture performance polymers, advanced intermediates and performance chemical products.

The company also supplies to the paints, ion exchange, pharmaceutical and food sectors.

Dr Talekar said while domestic demand is still stable, it is not growing. The 2011 sales of Rs 1,464 crore, at 6-7 per cent growth rate, is expected to be similar in 2012 as well.

Source: http://www.thehindubusinessline.com/companies/article3550737.ece

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