INDIA: India's Positive Outlook
From Site Selection magazine, September 2009

India's Positive Outlook
Industrial production rises along with optimism in key sectors.
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recent study by the Crisil Research Group, based in Mumbai, projects that industrial investments will grow at a moderate pace in India over the next three years with total investments projected to be more than US$215 billion. Crisil, a Standard and Poor’s company and a leading Indian credit ratings and research company, predicts that power, telecom and gas distribution will be among the sectors to see strong investor interest. The organization expects a gradual economic recovery by 2010-11.
      "Continuing supply deficit and increased government thrust to augment power generation capacity would attract investments into the power sector," said Manoj Mohta, head of Crisil Research. "In telecom, the factors drawing investor interest, despite high competition, are the continuing buoyancy in mobile subscriber growth and the sheer size of the addressable market. The anticipated increase in natural gas supply is expected to propel investments in gas pipelines and city gas distribution networks."
      Mohta said the economic slowdown in the developed economies has reduced the attractiveness of investing in capacity expansion projects in the metals, oil refining and textiles sectors.
      Another ray of optimism came from India’s Central Statistical Organization, which reported that industrial output increased 7.8 percent in June 2009 over the same month a year ago.
W.R. Grace recently opened a plant in Chennai for production of chemicals for the construction sector.
W.R. Grace recently opened a plant in Chennai for production of chemicals for the construction sector.

Grace and DSM Open Plants
      W.R. Grace has opened a new factory in Chennai for the production of specialty chemicals used in commercial, infrastructure and residential construction. The site currently produces cement additives that improve grinding efficiency, reduce the cost of cement production and enhance cement performance. In the coming months, the site will also begin manufacturing admixtures for use in the production of concrete.
      Beyond manufacturing, employees at the location are responsible for supply chain, quality control, product development, sales, and technical service. "India is one of the world’s largest cement-producing nations and a natural location for us to invest in our global network," said Greg Freeman, vice president and general manager for Grace Construction Products – Europe. "The new facility in Chennai brings us closer to our customers, which enables us to better and more rapidly meet their needs."
      Grace said that in addition to proximity to customers, Chennai offers an educated, multilingual work force, a talented scientific pool and an accessible air and sea transportation network.
      "This facility was conceptualized with a focus on the environment," said Srinivasan Radhakrishnan, plant manager. "We have integrated green field and recycle concepts to reduce our footprint while also utilizing Six Sigma tools and training to increase our productivity."
      Grace manufactures, distributes or supports several additional products in India, including catalysts and additives used in the refining of gasoline and other fuels; silica products used in consumer and industrial applications; adsorbents that serve as desiccants; packaging sealants and coatings used in cans, bottles and containers; and chromatography products used in life sciences, organic synthesis and analytical sciences applications.
      Dutch conglomerate DSM has opened two manufacturing facilities in India in recent months as part of its strategy to boost its presence in emerging economies. DSM opened a new greenfield facility for producing engineered plastics compounds on a 25-acre (10.2-hectare) site at MIDC Ranjangaon industrial zone, about 60 km. (37 miles) from Pune. It is also the largest polyamide and polyester compounding facility in India. Materials produced by the facility are used in manufacturing molded components for the automotive, electrical and electronics and consumer goods industries.
      DSM Anti-Infectives opened a new plant in Toansa (Punjab) for the production of the antibiotic ampicillin. The facility serves the Asia Pacific, Middle- East and African countries, in addition to the Indian market.
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