Axiall forms joint venture in India for PVC compounds

By Satnam Singh
Correspondent

Published: May 13, 2014 2:54 pm ET
Updated: May 13, 2014 2:58 pm ET

Image By: Satnam Singh Kevin A. Skrada, general manager international, left, with Ajay S. Shriram, chairman and senior managing director DCM Shriram Ltd. at the Vinyl India conference in Mumbai.

Related to this story

Topics Materials, Materials Suppliers, Asia

MUMBAI, INDIA — India’s diversified conglomerate DCM Shriram Consolidated Ltd. and Atlanta-based Axiall Corp. LLC have kicked off a PVC compounding joint venture.

The 50/50 joint venture is operating from Shriram’s Kota, India, plant, which manufactures chemicals including PVC resin. Axiall picked up a 50 percent stake in the Shriram Vinyl Polytech subsidiary.

Kevin Skrada, general manager international for Axiall, said the company was scouting for a partner in India for quite some time.

“Shriram is a compounder and a 120-year-old company with a respectable brand image that would give us an ideal platform to kick-start in this growing market,” he said.

Axiall will pump in about $6 million in the venture to introduce new technologies to serve customers in markets including household appliances, pipe and fittings, he said.

“Initially, we bring the products from our North American [operations] and start manufacturing the same in India over a period of time,” he said.

India’s PVC market is currently around 100 million pounds, and growing at a double-digit pace. Axiall believes that India’s emerging middle class needs infrastructure, cars and housing, which will support growth.

“Initially, the focus [of the joint venture] remains on developing the market in India, [but] it would be followed by servicing the adjoining markets. India is ideally located and Asian and African markets would be served from here,” Skrada said.

DCM Shriram is a diversified company with business in agriculture, chemicals, plastics, cement, textiles and energy services. DCM Shriram transferred its PVC compounding business to Shriram Vinyl last year.


Comments

Axiall forms joint venture in India for PVC compounds

By Satnam Singh
Correspondent

Published: May 13, 2014 2:54 pm ET
Updated: May 13, 2014 2:58 pm ET

Post Your Comments


Back to story


More stories

Image

Asia to remain chemical giant but US shale will bring competition

July 23, 2014 1:00 pm ET

A new IHS Chemical report on global spending for chemical production predicts capacity additions will peak in 2014 at $120 billion and then will...    More

Image

DuPont quarterly sales drop, income rises

July 23, 2014 12:46 pm ET

DuPont Co.'s sales and net income experienced slight changes for the second quarter 2014, as operating earnings dropped to $1.17 per share in the...    More

Image

Celanese to expand production in Brazil

July 23, 2014 11:15 am ET

Celanese Corp., the Irving, Texas-based chemicals and specialty materials company, has announced that it will expand its manufacturing capabilities...    More

Image

Better tariff strategy needed in India

July 22, 2014 12:39 pm ET

What's the best way for an emerging economy to strengthen an under-developed plastics industry? Protective tariffs around key sectors, or open the...    More

Image

DSM planning North American nylon plant

July 22, 2014 11:41 am ET

Materials firm Royal DSM NV plans to build a new nylon resin plant in North America, but no decision has been made on the plant's exact location.    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events