Rohm and Haas, the United States-based $6-billion speciality chemicals major, is setting shop in India. The company is setting up a manufacturing and technical services facility at Taloja, Maharashtra.

The company will invest Rs 92 crore (Rs 920 million) for this unit with a capacity of 25,000-35,000 tonne per annum.

"The Indian chemical market constitutes two per cent of the global chemical market. Currently, it is growing at a rate of 8-12 per cent and there's scope for more production in the domestic market," said Raj L Gupta, chairman & chief executive officer, Rohm and Haas.

Rohm and Haas has been present in the Indian market for some time now through a liaison cum sales office, with clients such as Asian Paints and Ballarpur Industries.

Its trading operations in India yielded a revenue of about of about Rs 115 crore (Rs 1,150 million) last year.

"Looking at the Indian market potential, we have decided to install a local plant so that we could cater to the needs of our customers in a wider range," Gupta said.

The Taloja plant will have two divisions, one of which will be engaged in the production of acrylic polymers used in coatings, leathers, textiles, papers and plastics.

The other unit will manufacture polyester, polyurethane and acrylic chemistry for solvent-based, solvent-free and water-based laminating adhesives used for the packaging and converting industries.

Some of the products will also be exported and according to Gupta, "In about 4-5 years, we are looking at an annual turnover of about Rs 460 crore (Rs 4,600 million)."

Talking about their pricing strategy, Gupta said, "Even when we were importing, we priced our products as if we were manufacturing locally, therefore there will not be much change in the pricing structure."