Dow Chemicals to set up 'design lab'

CHENNAI: US-based MNC, Dow Chemicals is following in the footsteps of multinational pharma major, Pfizer, in selecting Chennai as its hub for carrying out engineering research and development activities.

An Indian arm of Dow has picked up around two lakh sq ft of Grade A space on lease in Tamarai Tech Park in Guindy, an industrial hub in west Chennai recently. “It intends to set up an engineering and design centre at the facility,” property and real estate consultancy sources told ET.

While the deal was reportedly finalised about a month ago, it is still kept under wraps, awaiting certain approvals. Leading international property consultancy, Cushman & Wakefield has listed the Dow deal as one of the largest transactions that have taken place in Chennai, in its recent communication to the industry.

A diversified chemical company, Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services in many essential consumer markets across the globe. Of late, it has shown increased interest in India, which has emerged as a knowledge sourcing base for several multinational corporations.
In 2006, Pfizer, a leading pharmaceutical major, picked up around 60,000-70,000 sq ft in Chennai’s Tidel Park for carrying out similar engineering research tasks. An year later, now Pfizer is reportedly gearing up to expand its presence in the city.

“This is a new trend that’s emerging in Chennai, which already houses several engineering design initiatives by automobile and automobile and engineering majors, like Ford, Caterpillar, Visteon, FLSmidth, Ashok Leyland and Sundaram Clayton. Now it seems to be the turn of pharma and chemical giants to look at Chennai,” the sources said.

According to them, Dow plans to carry out sophisticated research and development works and will be recruiting top-end software engineers. “The availability of top-end talent pool is a major factor that enables Chennai to attract big brands, not only in IT and manufacturing, but also to carry out research and development activities,” they added.