LyondellBasell buys SJS Plastiblends, aims at presence in Indian automotive market

MUMBAI: Global chemicals and plastics maker Lyondell-Basell, which was an acquisition target of Reliance Industries in 2010, will soon make its debut in the Indian manufacturing industry by buying SJS Plastiblends Pvt Ltd, an Aurangabad-based polypropylene compounds manufacturer.

The $45-billion Dutch firm on Monday announced a definitive agreement to acquire SJS Plastiblends for an undisclosed amount in a move aimed at expanding its presence in the country’s automotive market.

The deal was first reported on. “This acquisition will expand our global polypropylene compounds, or PPC, manufacturing footprint and allow us to better compete in the long-term growth of India’s automotive market,” Bhavesh V (Bob) Patel, CEO and chairman of LyondellBasell, said in a statement.


Polypropylene is a key thermoplastic material used for automotive parts with as much as 50 kg of it used in a vehicle. LyondellBasell products are used in almost all parts and products of a vehicle, including fuels, coolants, lubricants, bumpers, panels, seats and tyres.

India is the fourth largest growth market for automobiles, with three million new vehicles produced each year. LyondellBasell, an S&P 500 company with presence in 19 countries, has been supplying its products in India since 2009 through imports and tolling arrangements.

Its acquisition agreement with SJS was signed last week and the transaction is expected to close later this year.

Mumbai-based investment banking firm Singhi Advisors was the financial advisor to SJS. Until the transaction is complete, SJS will conduct business as usual, officials said. Founded by three engineers turned entrepreneurs in 1996, SJS has approximately 60 employees at its manufacturing site with annual production capacity of approximately 12,000 metric tonnes of PPC.

In 2010, India’s most valuable company Reliance Industries had made a $14.5 billion offer to buy the then bankrupt LyondellBasell, but failed to woo the management.

Global private equity fund Apollo Global Management, which owns LyondellBasell now, converted some of the loans into equity and made six fold returns from its investment of $2 billion in four years.