BWI: Kuraray in India: Change Expected in Chemical Market

Press release from Business Wire India
Source: Kuraray Co. Ltd
Tuesday, June 02, 2009 05:30 PM IST (12:00 PM GMT)
Editors: General: Consumer interest, Economy; Business: Advertising, PR & marketing, Banking & financial services, Business services, Chemicals
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Kuraray in India: Change Expected in Chemical Market


New Delhi, Delhi, India, Tuesday, June 02, 2009 -- (Business Wire India) -- Kuraray Co. Ltd., one of the leading manufacturers and suppliers of POVAL in the world has announced its foray into the Indian market. This Japanese chemical major is confident of impacting the USD 30 billion Indian chemical market in a significant manner. The company targets to achieve USD 42 million sales during the current financial year and is optimistic of achieving USD 100 million sales in a couple of years down the line with its operation in India.

Motivated with the high growth rate of the Indian economy and investment friendly policies of the Indian government, the company is planning to make a basic initial investment of Rs. 72 million in the country. It is seriously also considering the viability of setting up its manufacturing plant in India with a focus to provide environment-friendly products in the country.

The company has started with supplying its specialized chemical PVA (Polyvinyl Alcohol, POVAL) in the Indian market. PVA is a unique functional resin that Kuraray first industrialized in the world. Its water-solubility is the most particular characteristic, even though PVA is one of the synthetic high polymers. It has variety of characteristics such as adhesiveness, film formation property, emulsifying property, and oil resistant ability.

With all its unique traits, PVA has a wide application in textile sizing and finishing, paper processing, adhesives and caking agents, dispersant, film and molded products and also other usage in photosensitive resin, cosmetics and soil stabilizer. Industries like textiles, automobile, glass, electronics and construction has a huge demand for PVA in India.

In the first phase Kuraray intends to cater to the glass manufacturers and the automobile companies in India and later plans to extend its services to other industries including paper, textiles, electronics and construction. It would also furnish the needs of other industries those that have possible utility for its products.

Kuraray has a systematic investment plan for the Indian market with well-defined steps for different phases. In the first stage, it has introduced its products through agents and alternative channels, in the second it has established its wholly own subsidiary Kuraray India Pvt. Ltd. in the country to spread its market base and thirdly the company would introduce of its entire product range. The final and the most important phase will see a huge investment in the country with Kuraray setting up its manufacturing plant.

Mr. Fumio Ito, President, Kuraray Co. Ltd., on this investment says, "apart from individual business prospect, the Indian operation of the Kuraray group would prove to be economically beneficial for both the countries and would also strengthen the relations between India and Japan by opening up more business avenues for India."

Kuraray finds India a bright investment opportunity as Indian chemical industry forms 2 percent of the global chemical industry. This niche industry segment has a significant impact over Indian economy with 13 percent of the total industrial output coming from the industry that contributes a significant chunk of 7 percent in the overall GDP of the country. Indian chemical industry sustains a growth rate of 10-12 percent annually. Kuraray's chemical would compete in the 'Specialty Chemical' market of the country, which is worth USD 5 billion.

Kuraray has an annual turnover of USD 4.4 billion with its 135 offices including both consolidated and non-consolidated companies across the globe. Kuraray enjoys a worldwide presence with its production and marketing units in countries including U.S.A., Germany, Russia, Belgium, China, and Singapore, apart from its origin, Japan.

CONTACT DETAILS
Simran

KEYWORDS
CONSUMER, ECONOMY, MARKETING, BANKING, BUSINESS SERVICES, CHEMICALS

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