Bhansali Engineering Polymers Limited joins hands with Japan’s Nippon A&L Inc to expand its ABS resin business
New Joint Venture to make Bhansali Engineering Polymers Limited the most preferred destination of specialty ABS polymer for Auto OEMs in India
High Grade ABS availability in India to offer import substitution for ABS buyers
Nippon A&L’s technical assistance to make available high grade ABS in India
Mumbai, May 22, 2013: Bhansali Engineering Polymers Limited (BEPL), one of the leading companies in India that manufactures ABS (Acrolynotrile Butadine Styrene) and SAN (Styrene Acrylonitrile) Resins for India’s automobile majors and consumer goods companies, has announced its joint venture with Japan’s Nippon A&L Inc (NAL).
This partnership will enable the Mumbai based BEPL to cater to the growing demand of ABS resins, ASA resins and AES raisins and other specialty polymers in Indian market that are highly consumed by automobile, electrical, electronics, telecommunication and consumer goods manufacturing companies.
Both BEPL and Nippon A&L Inc (jointly owned by Japan’s globally renowned Sumitomo Chemicals Company Limited and Mitsui Chemicals, Inc) are engaged in a business of ABS and both intend to expand its business of ABS resins. The joint venture will give BEPL, which is one of the only two companies that manufacture ABS in India, right to use intellectual property rights of NAL and technical assistance to manufacture, make and sell the licensed products. It will also provide Recipes, Compounds, Sales Support, R&D Support, new Application Development for manufacturing ABS and other resins. To effectuate this joint venture, both BEPL and NAL will incorporate a new entity to cater to the requirements of emerging new segments of engineering polymers market in India viz. specialized grades of ABS, AES and ASA resins and their respective alloys with other polymers.
Owing to its long standing expertise in Indian polymer market and with its two state-of-the-art ABS and SAN resin manufacturing plants, BEPL is eyeing to consolidate its position in Indian ABS market by becoming the most preferred destination for Indian automobile OEM (Original Equipment Manufacturers) to procure their ABS requirements locally. NAL’s world-class technology and established Brand Equity will contribute towards meeting the requirements for specialized applications of theautomobile customers of company, which are innovation and value-addition driven.
Commenting on the this new alliance with NAL, said Mr Jayesh Bhansali, Executive Director of Bhansali Engineering Polymers Limited and a driving force behind the Company’s growth strategies, “Growing big in the ABS segment is our vision. ABS is going to re-write India’s polymer story and poised to increase its application basket. While all the sectors where ABS and other polymers are consumed are growing in a big way, we want to focus mainly on automobile sector, as we forecast huge opportunities therein, mainly because of innovation-led consumption in the sector. This partnership will help our buyers buy their entire ABS requirement from a single-sourcing destination like us. Our partner Nippon A&L will also direct their buyers in India to source world-class ABS from us. We will thus become an integrated part of auto OEM’s supply chain and help them procure ABS of international standard locally in a cost effective manner.”
This alliance will result in both consumer benefits and all round efficiencies. While BEPL’s competitors were benefitted by their global patronage, access to cheaper raw material and economies of scale through bulk buying, this strategic alliance would provide the Company an edge in achieving all these benefits besides accessing the best global ABS technology. This joint venture will help NAL also to protect their brand from rest of the competition in India.
Currently, BEPL has a capacity to manufacture 51,000 MTPA of ABS and SAN Resins at its two manufacturing facilities located at Satnoor, M.P. and Abu Road in Rajasthan. The Company has undertaken an ambitious expansion plan of increasing its capacity to 1.25 Lakh MTPA within a period of three years. This capacity addition will take care of manufacturing of specialized high-end ABS that will be catered to automobile and other industry segments. With this technology-tie up, BEPL is expecting import substitution to happen at close to 80 per cent.
Adding further, said Mr Bhansali, “Demand for ABS in India as on date is about 1.50 Lakh MTPA. With increase in demand anticipated in future, post our capacity addition at 1.25 lakh mtpa, we will be a numero-uno player in the ABS market in India. Further, we will help substitute imports by offering cost effective ABS solutions, as the buyers can find world-class ABS available locally.”
Counting heavily on its capability of delivering quality-packed ABS of high performanceand high resistance, BEPL is anticipating being a part of the niche category of polymers with a pure focus on value-added, specialty high impact ABS than generic ABS.
In 2012-13, the Company is expected to cloak a Sales Turnover of around Rs. 470Crore. Post capacity addition, the Company is likely to cross the sales mark of aroundRs 1300 crorein about three years time.
About Bhansali Engineering Polymers Limited:
Promoted by Mr Babulal Bhansali, a first generation entrepreneur, Bhansali Engineering Polymers Limited commenced its operations in 1990 at its first plant in Satnoor, M.P in a technical collaboration with Japan’s Sumitomo Naugatuck Company Limited with a capacity of 7,500 MTPA of ABS. In order to enhance capacities, BEPL did two major expansions and two major acquisitions viz. PolychemLimited in the year 2000 and Rajasthan Polymers & Resins Limited in 2003. Today, BEPL has a total polymer capacity of 51,000 MTPA. BEPL markets its products under trade names of Abstron and Santron. The Company has been accredited with ISO 9001:2008 certified organizationby QS Zurich AG.
About Nippon A&L Inc:
Nippon A & L Incis jointly owned by the globally renowned Sumitomo Chemicals Co. Ltd and Mitsui Chemicals, Inc. It is a reputed manufacturer of Synthetic Resins ABS, ASA, AES and other Specialty Polymers in Japan with a capital of 6 Billion Yen. The Company has combined manufacturing capacity of 1,10,000 TPA of ABS and ASA and 90,000 TPA of SBR NBR Latex and 18,000 TPA of Latex compounds. Nippon A&L Inc is a specialized company focusing on polymerization of styrenics and enjoys high reputation in the field of manufacturing and marketing of ABS, AES, ASA resins and SBR/PBR Latices. India has been NAL’s important ABS supply destination.
For More Details Please Contact:
Atul Malikram