Bayer AG, the German chemicals and pharmaceutical major, has identified India as its global outsourcing hub for basic as well as specialty chemicals.
The Bayer group in India is also planning to introduce a slew of specialty chemicals from its parent's portfolio.
Currently, Bayer AG sources its basic chemicals requirements from the US and some European countries.
ER Raj Narayanan, headBayer Chemicals country group India and the chief executive officer of Bayer Specialty Products, said, "Besides China, India would be Bayer AG's global outsourcing hub for chemicals. We are also looking at joint research & development co-operation initiatives with Indian companies."
"New generation products to be introduced in India from the parent's portfolio include cellulose products, new generation material protection products and leather and textile chemicals. Initially, the new range of products would be imported," Narayanan told Business Standard.
The chemicals business of the Bayer group in India is represented by Bayer Specialty Products and Bayer India. While the turnover of Bayer Chemicals in India is around Rs 70-80 crore, with global sales of Euro 3.3 billion in 2002, Bayer Chemicals is one of the leading players in the international chemicals market.
"There is a huge potential in the Indian market. We expect that the chemicals business turnover in India would be doubled by 2006," Narayanan said.
Bayer Chemicals' products find application in the electronic, optics, metal processing, food, coatings, textile, leather, paper, plastics, rubber, building materials, and engineering ceramics industries.
Its fine chemicals business unit offers technologies and innovative methods for the production of intermediates and active ingredients for the pharmaceutical and agrochemical industry and further fine chemicals applications.