Lubrizol Expects to Double India Business in Next 6-8 Years

Speciality chemicals maker Lubrizol expects India to contribute more than one-fifth of its global business over the next six to eight years, driven by strong growth in mobility, infrastructure, healthcare and consumer-focused industries.

The Berkshire Hathaway-owned company currently derives about 10 per cent of its business from India. However, Abhishek Shrivastava, Managing Director, India, Middle East and Africa (IMEA), said the country's contribution is expected to rise sharply as the company expands its local manufacturing footprint, technology capabilities and partnerships.

"India is a high-growth strategic market for Lubrizol. The country's economic momentum, expanding manufacturing base and increasing focus on innovation are creating opportunities that are fundamentally different in scale from many mature markets. As we continue to deepen our local presence and capabilities, we expect India's role within our global portfolio to become increasingly significant,” Shrivastava told Autocar Professional.

Globally, Lubrizol generates annual revenue of between $6 billion and $8 billion. It operates across North America, Europe, Asia-Pacific, Latin America, and the India-Middle East-Africa (IMEA) region. The company serves a diverse set of industries, including transportation, industrial manufacturing, healthcare, consumer goods, home care, electronics and information technology, as well as beauty and personal care. 

According to Shrivastava, India has emerged as one of the most important growth markets for the company as multinational corporations increasingly shift from treating the country as a trading destination to building products and technologies specifically for local requirements.

"First, it is local for local. Then it becomes local for global. We are building products for India, designing products for India and investing in technology and manufacturing in India," he said.

Lubrizol is investing across multiple sectors, including mobility, construction materials, medical devices, personal care and healthcare.

The company is setting up an integrated CPVC manufacturing facility through its joint venture with Grasim Industries and is also expanding its presence in the medical devices segment. A manufacturing plant for medical-grade products is coming up in Chennai, while a new technology centre is expected to become operational next year.

"We cannot win in India unless we have a full business in India. That means manufacturing here, technology here and ecosystem partnerships here," Shrivastava said.

India already holds a strong position for Lubrizol in certain businesses. The company is a market leader in lubricant additives and also commands a significant share in the CPVC plumbing segment, according to Shrivastava. At the same time, the company sees faster growth coming from newer businesses where its current presence remains relatively small.

"We have good positions in some businesses, but the biggest growth opportunity is in the businesses where we are still building scale. As those businesses grow, India's share within Lubrizol will increase significantly," Shrivastava said.

The executive identified commercial vehicles, motorcycles, medical devices, personal care products, paints and coatings, data centre infrastructure and healthcare ingredients as some of the key growth areas for the company over the coming years.

According to Shrivastava, India's expanding middle class, growing infrastructure investments and increasing focus on localisation are creating opportunities across multiple industries.

Lubrizol is also expanding its research and development capabilities in India, including specialised programmes for products such as motorcycle lubricants and ingredients used in personal care applications, which are tailored specifically for Indian consumers.

"India is extremely competitive. You cannot bring an over-designed product from the West and expect to win here. You have to develop products that meet local needs, local costs and local performance expectations," he said.

Apart from organic growth, Lubrizol is also evaluating partnerships, technology licensing opportunities and potential inorganic investments as part of its India expansion strategy.

The company currently operates manufacturing facilities, technology operations and a Global Capability Centre (GCC) in India and expects investments in the country to remain strong as it seeks to deepen its presence across industrial and consumer segments.