Warren Buffet’s buffet for Gujarat: Rs1,150 crore for Dahej biz

Lubrizol Corporation, a specialty chemical manufacturing company, recently acquired by billionaire investor Warren Buffet, has finalised plans to invest $245 million (approx. Rs1,150 crore) for setting up a Chlorinated Poly Vinyl Chloride (CPVC) manufacturing plant in Dahej.

According to officials, the plant would be set up in Dahej GIDC in Bharuch by a joint venture of Lubrizol Corporation, USA, and Ahmedabad-based Astral Poly Technik.

Construction work of the plant will begin in January 2013, while production is expected to start by October 2014. The total investment for the plant would be to the tune of $245 million.

Tom Frubus, chief of Lubrizol, and Sandeep Engineer, MD of Astral Poly Technik, met chief minister Narendra Modi on Wednesday and informed him about their investment plans in the state. Maheshwar Sahu, principal secretary of industries department, was also present. Frubus told Modi that besides India, CPVC products were also in great demand in South East Asia, the Middle East and Africa.

“The company has chosen the state for setting up its unit considering the investor-friendly and transparent policies of the state government and the best infrastructural facilities,” said officials.   

Lubrizol Corporation is the world's leading producer of specialty chemicals, lubricant additives, among other products. The company was recently acquired by Warren Buffet's Berkshire Hathaway Inc. in a $9 billion deal, which was announced in March and completed last week.  Even though, state government has already announced the project, the company is yet to finalise and announce the deal, informed CFO of Astral Poly Technik Ltd, Hiranand Savlani.

"We and the US-based firm met chief minister, Narendra Modi on Wednesday. But as of now, we have not yet zeroed in on our plan of developing CPVC plant at Dahej," he said and confirmed that there are chances of joint venture between Astral Poly Technik and Lubrizol Corporation.

He said that both companies are expected to sign the deal in a month's time. "If we struck the deal, we will announce of expansion within a month," said Savlani and refused to comment on the size of the investment of CPVC plant at Dahej.