Angus Seeks Fipb Nod For New Plant

Angus Chemicals, the US-based $2-billion chemical major, has applied to the Foreign Investment Promotion Board (FIPB) for setting up a wholly-owned subsidiary in India.

The companys proposal seeks permission for the setting up of a dextro amino butanol plant to be owned by the subsidiary.

Angus Chemicals is the only manufacturer of dextro amino butanol, the raw material for ethambutol used in the manufacture of anti-TB drugs, in the world. The company has plants in Germany and US and produces the nitropropane range of products.

Angus Chemicals produces around 2,000 tonnes per annum (tpa) of dextro amino butanol. India is the largest importer of the chemical, which is converted into ethambutol hydrochloride and then into ethambutol by Indian manufacturers. Lupin Labs is the worlds largest manufacturer of ethambutol and also the major Indian importer of the raw material.

 

Angus had earlier attempted an Indian entry by setting up a joint venture with Gujarat Industrial Investment Corporation (GIIC).

The deal fell through as Angus wanted to produce the downstream products too and Indian companies felt threatened by the prospect.

Some of the producers of ethambutol hydrochloride in India are Lupin Labs, Cadila Healthcare, Calyx Chemicals, Themis Chemicals and Cadila Pharmaceuticals.

Industry sources said Angus is the only producer of the raw material as it is not viable to produce only one derivative in isolation. It produces a host of derivatives and several other downstream products.