Lubrizol Corp. will buy an additional 24 percent stake of Lubrizol India Pvt., a 50-50 joint venture between the American additives supplier and Indian Oil Corp. The deal, which will give the former majority ownership, was approved by the Indian government last week and is expected to be completed soon.
Last year, India relaxed regulations on foreign direct investments. According to global governance consultancy Glass Lewis website, The biggest change to the FDI policies are seen as the relaxing of investment limits across broad swaths of the Indian economy, with most sectors now allowing full foreign ownership, rather than the previous 49 percent limit.
This action is a step forward for our already strong presence in India across our growing product lines in all market segments, Lubrizol Additives President Dan Sheets said in a press release issued yesterday. Lubrizol entered the market in 1966 through a partnership with the Indian government, which was later restructured into the JV with state-owned Indian Oil Corp.
Wickliffe, Ohio-based Lubrizol Corp., which is owned by Berkshire Hathaway, makes an array of specialty chemicals. Lubrizol India Pvt. specializes in additives for automotive and industrial lubricants and fuel treatment.