Evonik in India Evonik in India - Evonik Industries

Evonik Evonik in in India
India
India has excellent prospects of becoming one of the world’s most significant economic
areas. It is the third largest economy in Asia and has over 1 billion inhabitants, including a
rapidly growing middle class of over 200 million people. The main established industries are
textiles, the construction of plant and equipment, the automotive sector and information
technology. India’s petrochemical industry is very promising and the country’s
pharmaceuticals market—one of the largest in the world—has been reporting above-average
growth for a number of years due to outsourcing of the development and production of active
ingredients by international pharmaceutical companies. During the economic crisis, India and
China were the main driving force of the global economy. In 2010 India is focusing on
checking inflation.
Evonik’s Chemicals and Energy Business Areas are both present in India. In 2009 the Evonik
Group had around 500 employees in India and generated consolidated sales of around €110
million there. Evonik Degussa India, the Chemicals Business Area’s subsidiary in this country,
is based in Mumbai while Evonik Energy Services India has its headquarters in New Delhi.
The main sales drivers in the Chemicals Business Area in India are essential amino acids for
animal nutrition, followed by silicas, chemical intermediates and pharmaceutical polymers.
India is an attractive market for our feed additives business and looks set for further growth.
Evonik produces essential amino acids for the nutrition of livestock, especially poultry, at six
production sites around the world. We are the only supplier in the world that markets all four
major amino acids for animal feeds. Our activities include custom-tailored services covering
all stages in the value-added chain, from the analysis of amino acids in feed components to
quality control. In line with this, we have a laboratory in Mumbai to analyze the quality of feed
ingredients and support the country’s growing poultry industry in the evaluation and
formulation of feeds.
We are the global market leader in both fumed and precipitated silicas and have eight silica
production facilities in five countries in the Asia-Pacific region. Our subsidiary Insilco Ltd.
produces precipitated silicas at its site in Gajraula (Uttar Pradesh). Its main customers are the
Indian rubber and life science industries, which use precipitated silica in food applications,
toothpaste and tires for cars and trucks. Rising living standards and increased mobility are
steadily increasing the potential for our products in India. Strong growth is forecast for the
coming years, especially for tires with low rolling resistance and a longer service life. Insilco
has therefore announced that it is increasing capacity further. The new capacity will be
available by first half of 2011.
Since 1998, the Pharma Polymers Business Line has been supporting the development of new
forms of drug delivery in Mumbai, where it has a 1,200 m 2 technical centre for R&D service
and marketing. In view of the dynamic growth of the Indian pharmaceuticals market and high
demand for Evonik’s development services, there are plans to extend this facility.
Pharmaceutical polymers are smart transport systems which release active ingredients in the
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ody at the right time and in the right place. In addition in Mumbai Evonik and US laboratory
equipment manufacturer Thermo Fisher Scientific Inc. are working to establish melt extrusion
in the pharmaceutical industry. Evonik has enormous expertise in this process, which has
been used for many years in plastics production. A new variant for the pharmaceuticals
industry has now been developed. This has many advantages: integrating medication into the
polymer substrate while forming the composite improves bioavailability and masks the taste
of bitter medicines. In future some 90 percent of all active ingredients will rely on technology
platforms such as melt extrusion.
The pharmaceuticals and fine chemicals sectors are also attractive markets for our catalysts
business in India. They use precious metal powder catalysts for selective, cost-efficient
production of pharmaceutical and agrochemical active ingredients. Our activities in this field
were strengthened in June 2010 by acquiring know-how, technology and business
relationships from Ravindra Heraeus Pvt. Limited, Udaipur (Rajasthan). At the same time,
long-term agreements were signed with Ravindra Heraeus on contract manufacturing and
precious metal recycling. We can now supply our high-quality precious metal catalysts to
Indian customers from local production facilities. Evonik is one of the world’s leading
suppliers of such catalysts and has a global production network, which includes company-
owned plants in Hanau-Wolfgang (Germany), Calvert City (Kentucky, USA), Americana (Brazil),
Tsukuba (Japan) and Shanghai-Xinzhuang (China).
Evonik also has application technology laboratories in India. For example, the Industrial
Specialties Business Line has an application technology laboratory in Mumbai for products
tailored to the specific needs of the Indian textile and construction industries. This business
line manufactures and markets specialty silicones which are used in rubber, metal and
plastics processing, the paper and textile industries, the construction sector and agriculture.
In October 2009 the Coatings & Additives Business Unit’s Tego Business Line opened a
technical service laboratory in Mumbai equipped with fully functional spray-coating cabins, an
extractor cabinet and various test appliances. This enables it to provide rapid support for
customers’ questions about coating formulations. Tego is one of the world’s leading suppliers
of additives and special binders for coatings, colorants and printing inks. Its high-
performance additives can be used to optimize the production of coatings, adjust application
properties and select the properties of the cured coating film.
Evonik supplies a wide range of high-quality products to the automotive industry—from
lithium-ion battery cells, tire systems and coatings to plastic components for lightweight
construction. In 2008 the automotive sector accounted for 18 percent of Group sales. At the
start of 2010 we showcased our automotive competence at the Auto Expo India in New Delhi
and at the Vehicle Dynamics Workshop organized by a major Indian tire producer in Chennai
(Tamil Nadu). The Indian automotive market has posted double-digit growth in recent years
and experts expect it to remain exceptionally attractive in the future.
In keeping with our global strategy of improving our local market insight through engineering
services in order to generate new business ideas for power plant projects, our subsidiary
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Evonik Energy Services India was established in 2001. It offers the same range of services for
power plant operators as Evonik Energy Services GmbH, ranging from conventional
engineering for the construction and modernization of power plants to the operation of power
plants for third parties. Its portfolio also includes developing and implementing process
optimization software to raise efficiency. In 2008 a master agreement was signed with India’s
largest plant engineering company BHEL to equip 30 power plants operated by the country’s
leading utility, National Thermal Power Corporation, with online optimization systems
developed by Evonik. This contract underscores our leading position in this demanding
market segment. In spring 2010 Evonik Energy Services India secured a contract from Sterlite
Energy Ltd. (Orissa) to operate the 2,400 MW hard-coal power station in Jharsuguda. The first
of the four 600 MW power plants at this facility is scheduled to come into service in 2010.
India is also driving modernization and efficiency improvements at existing coal-fired power
plants. Here, Evonik is involved with various projects that highlight its claim to be one of the
leading renovation and modernization consultants.
In addition, a market for solar thermal power plants is emerging in India. We will be providing
engineering services and operational expertise for the development, construction and
operation of such facilities and acting as an investor.
In view of the rising demand for energy, the very high growth momentum of the Indian power
plant market looks set to continue. Our engineers have already gained an excellent position
through their technological expertise, years of experience and excellent network of contacts.
C-PM, June 2010
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