Page 39 - Plastics News April 2017

BUSINESS NEWS

US-based adhesives major HB ONGC to raise Rs1,671 crore

Fuller invests $ 20 million in India for associate company OPaL

B Fuller, the US-based adhesives company, has tate-run Oil and Natural Gas Corp. Ltd (ONGC) plans
Hexpanded its operations in India by opening an Sto raise Rs1,671 crore for its associate company,
R&D center in its Shirwal (located 65 km from Pune, ONGC Petro additions Ltd (OPaL), as per two officials
Maharashtra) manufacturing facility and a business office aware of the development have been reported by
in Pune. The expansion, which marks the conclusion Business Standard. ONGC holds 49.36%, GAIL (India) Ltd
of HB Fuller’s first phase of investment of $20 million 49.21% and Gujarat State Petroleum Corporation (GSPC)
in India, will strengthen the company’s business in the 1.43% stake in OPaL, as of March 2016.

OPaL operates a US$4.5 billion mega petrochemicals
complex in the Dahej special economic zone (SEZ),
inaugurated by Prime Minister Narendra Modi earlier
this month on 7 March after much delay and cost
overruns. “By next month we would be infusing equity
in OPaL to the extent of Rs1,671 crore which we plan
to raise through private placements of compulsory
convertible debentures,” an official said on condition of
country and the neighbouring areas. HB Fuller has had
a local presence in India since 2011 through its 24,000
metric tonne per annum manufacturing facility in Shirwal.
Through the addition of its new business office in Pune
and R&D center, the company will be able to help its
customers solve problems, and create new solutions, more
rapidly than ever before. “We are pleased to be expanding
our footprint in India. We are optimistic about the new
opportunities our new business office and R&D center will
provide us - and our customers. By having a state-of-the-
art facility and adhesive experts on the ground in India,
we will help accelerate innovation in the region and help
drive customer performance,” said Jim Owens, president anonymity. The plant will annually produce 1.4 mln tons
and chief executive officer, HB Fuller. of polymers such as linear low density polyethylene and

Kamal Johari, managing director of Nobel Hygiene, added, high density polyethylene, polypropylene and 500,000
“We are really looking forward to leveraging HB Fuller’s tons of chemicals like benzene, butadiene and pyrolysis
new R&D capabilities in India. Having the strength of this gasoline, among other products.
leading globaladhesives provider in our local community ONGC, GAIL (India) and GSPC also plan to bring private
will be a key competitive advantage for our company.” partners into the company. Talks are on with Kuwait-
Spanning 5,000 sq ft of the Shirwal manufacturing facility, based energy company PIC, an arm of Kuwait Petroleum
the new R&D center features dedicated areas to conduct Corp., for a stake sale in OPaL, chief executive K.
experiments, run demonstrations and train customers on
its hot melt, water-based, anaerobic and cyanoacrylate Satyanarayana has said. “We are ready to offer as
technologies. Its close proximity to the production floor much as 40% to the new partner. However, the talks
also increases collaboration between the company’s R&D have been on for about 1.5 years but nothing has been
and operations teams. finalised as yet."

39 April 2017 | Plastics News