labels: investment - general
Templeton Strategic invests $10 million in Indian Specialty Chemicals Companynews
21 November 2005

Mumbai: Templeton Strategic Emerging Markets Fund II LDC (TSEMF II) has concluded a $10-million investment in High Polymer Labs Limited (HPL). TSEMF II, which primarily invests in unlisted companies in emerging markets, is the second strategic equity fund managed by Templeton Asset Management Ltd , an investment management company incorporated in Singapore.

TSEMF II, is a limited duration company incorporated in the Cayman Islands and is available to institutions and sophisticated investors makes strategic investments throughout emerging markets. It is managed by Templeton Asset Management Ltd, whose emerging markets investment team is headed by Templeton's legendary investment manager, Dr Mark Mobius.

According to Mobius, who is also managing director of TAML, "We are impressed with HPL's R&D capabilities and are confident that these can be leveraged for global chemical majors across developed markets. Our investment will fund the ongoing capacity expansion that will make the company a force to reckon with in the global arena for certain polymer additives. This investment fits well with the low-cost, high-technology strategy that has been the backbone for India's success in the pharmaceutical and automobile ancillary industries."

The New Delhi-based HPL is mainly engaged in manufacturing polymer additives and also offers an range of specialty chemicals, which have diverse applications including pharmaceutical intermediates, agrochemicals and water treatment. HPL's R&D centre is DSIR recognition (Department of Scientific and Industrial Research of India) since 2003 and won its national award for its in-house R&D efforts in the chemicals and allied industries.

Harcharan Singh, chairman and managing director of HPL said, "This is a big step for the company, and I look forward to a close association with Templeton; this partnership will lead to a dimensional change and open up new avenues for growth. I am confident that this association will fuel our aggressive growth plans and strengthen our position as a global player in the area of polymer additives and specialty chemicals."

The company has ambitious expansion plans on its agenda. Umesh Anand, joint managing director explains, "With the current expansion of our Polymer Additives capacity, we will rank among the top five players in the world for certain product lines. While this will be a quantum leap, it will also bring with it a number of challenges." Anand is confident of the company being able to compete with the best in the business in the world markets. We are committed to becoming a truly global player. The investments, our strategy and commitment over the next five years will play a major part in achieving that objective."

TAML is a subsidiary of Franklin Resources, Inc., a global investment management house, which operates as Franklin Templeton Investments. The San Mateo- (California) based company has approximately $442 billion in assets under management as of October 31, 2005.

 


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Templeton Strategic invests $10 million in Indian Specialty Chemicals Company