INDUSTRY NEWS

The Engineering Plastic maker Formulated Polymers is being acquired by PolyOne Corp

Published Date | 2018 September 6

PolyOne Corp, the International company for polymer plastics is all set to acquire India’s leading Engineering Plastic maker Formulated Polymers
India: PolyOne, the global company majors in making specialized polymer materials and is worth 3.2 billion. The company operates in India through its subsidiary Polymer Polymers India Ltd and will acquire Formulated Polymers majority stake with a deal of Rs.150 crore according to reports. The officials of the company are at the final stages of talking and the deal is supposed to close within two weeks of time. This deal will have a positive impact on the white goods market along with automobile industry in the near future. Formulated Polymers Ltd was established in the year 1993.They design and manufactures a wide range of thermoplastic compounds and has a specialization in Engineering Plastics. The major customers for the company Formulated Polymers are Ford, Ashok Leyland, Hero Honda, Mahindra, Bajaj, TVS Motors, Maruti, Suzuki, Whirlpool, Godrej, Samsung, Hyundai, LG, Tata, Mitsubishi, Philips, Siemens and Indian railway. The Company has yet not spoken about the deal yet. Engineering Plastics is basically a group of compounds which is used as a substitute plastic for metals and is widely used in industrial and automotive markets. The industries that are the end-users of the engineering plastic compounds are aerospace, automotive, consumer goods, construction, electrical, electronics, healthcare and home appliances as well. According to reports the market for engineering plastic is suppose to see a huge growth in the upcoming years in the backdrop of the fast growing industry for automobile in India. India has recently taken over Germany to become the fourth largest industry and market for automobiles in the world with China, US and Japan holding the former positions. The growths in the sales of passenger and commercial vehicles have grown by 9.5% in 2017 by more than 4 million units. In the field of automotive these compounds of engineered plastics as primarily used for radiation fans, gears, oil filters housings and junction boxes. As the industry for engineered plastics and compounds are growing rapidly in India, many global giant companies are talking the route of acquisition to mark their presence in India. One of the largest producers of plastics, refining and chemical in the world Lyondell Basell, has made quite a number of buyouts in the India to make their position strong in the space and arena of plastic compounds. This NY based firm has acquired compounding assets of Zylog Plastalloys Pvt Ltd, Polypropylene(PP) and PP compounding business of SJS Plastiblends Pvt Ltd. In Aurangabad in 2015.Through these buyouts Lyondell Basell has become one of the largest producer of PP compounds in the Indian market. China’s plastic manufacturer Kingfa Sci & Tech Co Ltd entered India in 2013 by acquiring majority stake in Hydro S&S Industries Ltd (HSSIL) in Chennai. Another manufacturer from France Rhodia SA also acquired PI Polymer, the engineering plastics business in 2011. According to BlueWeave Consulting, the acquisition by the company will have a positive impact on the Indian as well as the global market since the Indian company will now be able to reach more markets and sell their products at a larger ratio. Also, with the growing market for engineered plastics the company is expected to grow and prosperous at a good rate. According the an upcoming report by BlueWeave Consulting Research “Global Automotive Plastic Market Size, Share, Product, Application, Growth, Forecast 2025” the market for the engineered plastic for automotives is growing rapidly at a significant rate with a CAGR of over 11%.The report also focuses on the growth of the market size, the percent of share it has and is expected to have. The report also gives information about the product and its application and how it is estimated to grow during the forecasted period.