Chemical firm Lubrizol to invest ₹1,229 cr to build CPVC resin plant in Gujarat

Berkshire Hathaway-owned specialty chemicals company Lubrizol Corporation on Monday announced an investment of over $150 million, or about ₹1,229 crore, to build India's largest CPVC resin plant in Vilayat, Gujarat, in partnership with Aditya Birla Group's Grasim Industries.

The U.S.-based company also plans to double capacity at its site in Dahej, Gujarat, and open a grease lab in Navi Mumbai.

"India is among the fastest-growing global economies with a favorable climate for business investment, including regional growth in many of the industries we support," says Lubrizol president and CEO Rebecca Liebert.

"We are building on 50 years of success in India by adding new manufacturing, lab and R&D sites, supporting in-country innovation and adding jobs that capitalize on the great expanding workforce and business conditions in India, allowing us to serve needs not only in India but in surrounding countries," Liebert adds.

Lubrizol's work in India dates back to 1966 when the company initiated in-region manufacturing for chemical additives supporting transportation and industrial markets. The company's work in India has expanded significantly since that time, supporting a wide variety of industries through products and solutions purpose-built for the region.

The chemicals maker, which has steadily grown its employee base in India, expects to enable 4,000 direct and indirect jobs through several new investment projects.

In 2001, Lubrizol introduced CPVC into the India market. India is amongst the largest consumers of CPVC, primarily in the form of plumbing pipes and fittings, and the growing need for clean water in all residential and commercial buildings is expected to drive continued growth.

Lubrizol and Grasim Industries, a flagship company of the Aditya Birla Group, will break ground on the first phase of a 100,000 metric-ton state-of-the-art CPVC resin plant at Grasim's site in Vilayat later this year. This will be the largest single-site capacity for CPVC resin production globally. The CPVC resin produced at Vilayat will enable product sold under Lubrizol's brands.

The U.S.-based specialty chemicals company will double its existing CPVC compound capacity at Dahej, Gujarat, from existing 70,000 million tonnes to 140,000 MT. Lubrizol also plans to set up a local R&D centre, which will be its second global R&D centre after North America. With this investment, Lubrizol becomes the only company in India with end-to-end CPVC capability. This capacity will also cater to neighbouring high-growth markets like Nepal, Bangladesh and Indonesia.

The company said it is also planning to enhance the capacity of its grease lab in Turbhe, in Navi Mumbai by opening a new lab to support the testing and development of calcium sulfonate greases.

The Wickliffe, Ohio-based firm operates over 100 manufacturing facilities, sales and technical offices around the world and employs more than 8,000 people.