Dow Chemicals' acquisition of the Indian born billionnaire Raaj L Gupta headed speciality chemical company Rom and Haas for over $18 billion, is likely to impact its proposed joint venture with Reliance Industries and expansion plans in India worth over $100 million.
RIL sources said they would wait to hear from both Rohm and Hass and Dow Chemicals on the future of the joint venture project.
"We have a good working relationship with Dow Chemicals and hope the development would not affect the proposed joint venture," said an RIL source.
An RIL spokesperson sought time to comment on the developments.
"I am yet to get more details on the acquisition and so it is early to comment on our business development plans in India," said Harish Badami, president and managing director of Rohm and Haas (India).
The US-based Rom and Haas had entered into an agreement with RIL in March last year to set up an acrylic-monomer complex in Jamnagar at an investment of over $250 million.
The proposed facility would manufacture about 200,000 tonnes of acrylic acid and esters annually for the domestic market, besides making acrylic acid and derivatives for exports, with the help of RIL's petrochemical complex coming up at Jamnagar.
The acrylic acid and esters produced at the facility will be used as raw materials to make environment-friendly paints and coatings, packaging adhesives, detergents, textile and construction materials.
Rohm and Haas is reportedly undertaking a survey on the market for acrylic and related esters.
Apart from the joint venture with RIL, Rohm and Hass is planning to invest over $100 million in to develop manufacturing and research and development facilities in the country, chairman and CEO Raaj L Gupta told Business Standard during his visit to India last year.
The company is setting up a 30,000-40,000 million tonnes per annum capacity acrylic emulsion plant near Chennai at an investment of $12 million and is doubling its 35,000 MT facility in Mumbai.
The company is also setting up a research and development centre and an engineering and process development facility in India at an investment of $20 million.
The over $8 billion Rohm and Hass targets is targetting a turnover of Rs 1000 crore from the Indian market by 2010, compared to the current Rs 400 crore.