Dow Corning Buys Universal Silicones

The US-based Dow Corning Corporation, the global leader in the production of silicon-based products, has acquired full equity of Universal Silicones & Lubricants Ltd (USLL) and has renamed the company as Dow Corning India Ltd.

Dow Corning already owned 49.9 per cent equity in USLL. The latter was established in January 1992 as a joint venture company with Gandhi & Associates Investment Ltd having 60 per cent equity, while the remaining was held by Dow Corning. In July 1998, Dow Corning hiked its stake from 40 to 49.9 per cent.

Avinash Gandhi, chairman of Dow Corning India Ltd, said that the US company has bought the shares four times of its original equity. However, he refused to disclose the amount at which Dow Corning bought the remaining 51.1 per cent equity in USLL, thereby making it a wholly owned subsidiary.

Rich Hoover, vice-president and executive director of Dow Corning Corporation, said that the parent company plans to make Dow Corning India the manufacturing hub for Singapore, Thailand and China. He said that the US company plans to double investments in India within the next two to three years. However, the company was not looking at acquisitions as growth in India.

Dow Corning will integrate the current USLL supply system into its global supply chain, which will better enable the company to serve its regional customers' growing demand for improved quality of products, competitive pricing and dependable supply.

Initially, Dow Corning will have to import a few products. However, the company is working on a two-three products to be manufactured at USLL's facility at Tarapur district Thane, Maharashtra. USLL set up the Tarapur unit at a cost of Rs 32.50 million to produce Dow Corning high-tech lubricants and silicone sealants for the domestic market.