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Akzo Nobel high on India, plans to invest more
By siliconindia
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Friday, 08 October 2004, 19:30 IST
MUMBAI: Akzo Nobel, a global pharmaceuticals, coatings and chemical company, has joined the growing tribe of leading MNCs with plans for India.
The Dutch multinational is planning to invest significant amounts in the country over the next few years.
We are likely to see investments made in building capacities in India, said Hans Wijers, chairman, Akzo Nobel. The investments could be across the three business that the Dutch multinational operates in pharmaceuticals, coatings and chemicals.
Akzo Nobel would like to be where the action is. And with much of the action moving to Asia, we would participate more in the Asian countries, Mr Wijers said.
The company set up a competency centre in Bangalore earlier this year. The centre, which focuses on software engineering and development, is Akzos first such centre outside The Netherlands. At this point, we are in the process of moving quite a few positions from Europe to this centre in India, he added.
Organon India, the Indian unit of Akzo Nobels pharmaceutical business, is also going to be part of the parent companys plans to expand its presence in the country.
India could be a sourcing hub for the parent company, given the low cost of manufacturing. Organon has acquired 11 acres of land at Kona in West Bengal for a formulations plant. However, the setting up of a new manufacturing facility is pending as Organon International is yet to take a decision on this.
In addition, Organon could enter into alliances with Indian companies, in line with the current trend among pharmaceutical multinationals. We have a lot of relationships with Indian companies and we could have some relationship in the foreseeable future, Mr Wijers said.
The companys pharmaceutical business in India has gone through some restructuring in the recent past. Organon sold its formulations manufacturing unit at Kolkata to Rugby Pharma, which is a contract manufacturing agent for the company.
We decided to sell the plant because it would require substantial investments to scale it up to the standards and size that we needed, said BN Chakraborty, managing director, Organon India. It also relocated its marketing and corporate functions from Kolkata to Mumbai.