Jhagadia, India — 2026
LANXESS is sharpening its India strategy with a new phase of expansion at its Jhagadia site in Gujarat, even as the German specialty chemicals company looks to deepen its presence in one of its fastest-growing markets globally. The move comes alongside plans to strengthen partnerships with state-owned oil companies, underlining a more localised, long-term approach to growth.
Over the past decade, the company has invested around Rs 750 crore in India, steadily building its footprint as it transitions away from high-volume commodity chemicals toward specialty segments where technical differentiation matters more than scale.
Jhagadia expansion and localisation push
The Jhagadia facility is now being positioned as a key node in this shift. The current phase focuses on blending industrial lubricant additives, including hydraulic and gear oil packages, with a roadmap that points toward deeper, chemistry-led manufacturing over time.
“What we are starting off production here in Jhagadia at the moment is for these specialty industrial additives… hydraulic oil packages, gear oil packages, and stuff like that… and that is the first phase,” noted Neelanjan Banerjee, senior vice president and Global Business Unit Head of Lubricant Additives at LANXESS. “For the moment, we start off with blending… but we have the entire value chain, from the chemistry to the blending, all covered within our portfolio. And you will hear more about our plans shortly. We want our competitors to be a little bit sleepy and be caught by surprise.”
“To be competitive in India and to stay closer to our customers, we thought this investment is a really good one,” Banerjee added.
The approach reflects a broader attempt to bring the value chain closer to customers, particularly for high-performance applications such as brake fluids and specialised additives.
India’s growing weight in global operations
India’s importance within LANXESS has grown steadily, now forming a core part of its IMEA (India, Middle East, Africa) region. This structural shift has given the market more direct visibility at the global level.
“Within Asia Pacific, for sure, India has seen the biggest momentum in the history of our company,” said Dr. Hubert Fink, Member of the Board of Management of LANXESS AG. “I think that also underlines the importance of India within our group, that more or less every year a board member is coming and, of course, aligning strategies, meeting our organisation… and even more important, of course for us, our important customer base here in India.”
Financially, the India business has scaled up meaningfully. Revenue reached Rs 3,095.5 crore in FY25, up from Rs 1,963.6 crore in FY21, while net profit rose to Rs 135.9 crore from Rs 104.5 crore over the same period.
Partnerships and future mobility focus
A key part of the growth strategy involves partnerships with state-owned oil companies. A recent MoU with IndianOil covers more than ten areas, including co-branding and technology transfer in areas such as metalworking fluids and refrigeration lubricants.
“The products that we will manufacture here in India are part of the ‘Make in India’ initiative, and because of that, we would otherwise exclude ourselves from participating with the three large state-owned oil companies, which actually control 45% of the market in India,” Banerjee continued.
Beyond traditional lubricants, LANXESS is also aligning with the shift toward electric mobility. The company is expanding into materials such as Reotherm for battery cooling and Bayferrox iron oxide precursors for LFP cathodes, while continuing to support lightweighting and high-performance rubber applications.
Market Research Outlook Analysis
LANXESS’s expansion signals a clear shift toward localisation and specialty-led growth in the India lubricant additives market. For competitors, it raises pressure to invest in local manufacturing and deepen PSU partnerships to access scale. Strategically, the company is moving closer to customers while aligning its portfolio with EV and high-performance applications. The sector is gradually transitioning toward advanced materials and value-added formulations, supported by India’s growing role as a core demand hub. For deeper insights or customised research on this segment, connect with our team.
Source: LANXESS
Related Report: India Specialty Chemicals Market, Competitive Landscape & Forecast, 2021–2032
