February 21, 2025 – Specialty chemicals giant LANXESS unveiled its India Application Development Center (IADC) in Thane, Mumbai, on February 14, 2025, marking a significant step to further bolster the company’s innovation capabilities and customer service excellence. The establishment of IADC underscores LANXESS’ strategic focus on India as a pivotal market and innovation hub, enhancing its ability to provide high-value, specialized solutions tailored to local needs.
Initially, the IADC will amalgamate LANXESS’ expertise in two key business areas in India: lubricant additives, encompassing high-performance additive systems, synthetic base oils, and ready-to-use lubricants; and material protection products, including antimicrobial, disinfectant, and preservative solutions. Equipped with state-of-the-art laboratories, LANXESS is delving into the friction and wear characteristics of lubricants, synthesis and testing technologies for new materials, and the assessment of antimicrobial properties in coatings, emulsions, and other water-based chemicals.
According to industry insights from AsiaMB, the establishment of IADC aligns seamlessly with LANXESS’ strategic vision to transform into a specialty chemicals company. The company is concentrating on business segments with less cyclical volatility, committed to delivering innovative solutions for critical applications such as sustainable mobility and consumer protection. India’s thriving industrial base and expanding consumer market present an ideal platform for LANXESS to drive such innovations.
LANXESS has a strong footprint in India, with all ten of its business units represented and a workforce of approximately 800 employees. The company operates two production centers, each serving distinct purposes: the Jagadia plant in Gujarat focuses on Rhein Chemie, liquid purification technologies, and material protection products; while the Nagda facility in Madhya Pradesh specializes in the manufacture of fragrances and flavors.
Moreover, LANXESS’ financial performance in 2024 was impressive, surpassing market expectations. The company anticipates its fourth-quarter Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) to reach approximately €159 million, a notable 22% higher than the market consensus of €130 million. For the full year, non-recurring EBITDA is expected to reach around €614 million, marking a year-on-year growth of approximately 20% and hitting the upper end of the previously forecasted 10-20% growth range. LANXESS attributes the robust fourth-quarter performance primarily to stronger-than-expected sales in December, particularly driven by advance purchases from U.S. customers, focusing on specialty additives and consumer protection products.