Home > companies > news > What the Dow Chemical-DuPont merger means for India
Photo: Reuters
Photo: Reuters

What the Dow Chemical-DuPont merger means for India

The merger will create a multi-billion-dollar entity that will have synergies in agriculture, infrastructure and significant research capabilities

A potential merger between Dow Chemical Co. and DuPont Co. will create a multi-billion-dollar entity in India that will have synergies in sectors such as agriculture and infrastructure along with significant research capabilities.

The entity would be a force to reckon with in the speciality chemicals business in the country, three people familiar with the operations of the Indian arms of the two multinational companies said on condition of anonymity.

Dow Chemical and DuPont are in advanced talks to merge, the Wall Street Journal reported on its website, citing people familiar with the plan whom it didn’t identify.

“Both Dow Chemical and DuPont are billion dollar (by revenue) companies in India. Though these two companies are operating in different segments, there are certain areas of synergy," said one person close to the development.

“The combined entity can make a difference in packaging solutions, agriculture and infrastructure. The potential merger needs several regulatory approvals. If they secure necessary approvals, it will be one of the largest corporations in the world. In India, they can coexist and compete with others more efficiently," this person added.

Dow India, run by Dow Chemical International Pvt. Ltd, is a leading materials science company.

According to its website, Dow India has around 900 employees in locations spread across the country with four manufacturing facilities, two established centres of excellence, three application centres and two commercial offices.

Dow India has a presence in technology development and application research in areas such as infrastructure, transportation, energy, consumer, lifestyle and agriculture. Dow India crossed $1 billion in revenue in 2014, according to its website.

A Dow India spokesperson did not respond to an e-mail seeking comment.

DuPont India was established as a subsidiary of US-based DuPont in 1994. DuPont India and its subsidiaries employed more than 4,000 people as on 31 December, 2012, according to the company’s website.

DuPont India provides offerings across a variety of market segments including agriculture, food and nutrition, healthcare, home and construction,safety and protection (including defence), renewable energy, electronics, transportation and infrastructure.

“DuPont does not comment on rumour or speculation. We will update if we have more information," a DuPont India spokeswoman said.

A Dow chemical spokesperson also said the company does not comment on rumour or speculation.

The second person close to the development said the two subsidiaries could find areas of synergy.

The third person said the merger, if it happens, could have significant implications on at least one market where both companies operate in India—speciality chemicals.

“India is one of the largest speciality chemicals markets in the world," this person added.

Neither subsidiary is listed on Indian stock exchanges.

Subscribe to newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaper Livemint.com is now on Telegram. Join Livemint channel in your Telegram and stay updated

My Reads Logout