Japan-based Moresco is expanding its market in Asia with a new subsidiary in India this month to manufacture and sell industrial lubricants, the company said in a press release.
We have been setting up overseas branches in Southeast Asia - Thailand and Indonesia - China and the U.S since 1995. With the market demand in India expanding, we hope to develop the local lubricant business, said the press release.
The new subsidiary, Moresco India Private Ltd., will be set up in Pinnacle Business Park in Ahmedabad city, Gujarat state, in western India. The subsidiary will also be importing and exporting lubricants and hot melt adhesives. The parent company seeded it with Rs 180 million (U.S. $3 million) in capital. The company did not provide further details.
According to the companys second quarter financial report for 2016, its sales of specialized lubricants fell 0.6 percent to 6 billion (U.S. $51 million) compared to the same period last year. Synthetic lubricants fell 9.1 percent to 1.3 billion in the same period. Share of overseas sales for its second quarter improved slightly to 37.3 percent compared to 37.2 percent for the same period last year.
The company expectstotal sales for financial year 2016 to reach 27.3 billion.However, the company's target for 2017 is30.3billion.
To further boost sales volume, We will strengthen our sales network with various subsidiaries in the group and expand sales activities not only to Japanese automotive manufacturers but also to European and U.S. automotive manufacturers, said that report.
In Southeast Asia, we will focus on gathering information on local needs and develop products to meet these needs, including [for] local users, in a timely manner so as to work towards increasing our share in the market. Also, we will make use of our production base in Thailand and Indonesia to develop the markets in Vietnam, Malaysia and India, added the report.
The company has two functional fluids plants in China; one in Wuxi and one in Shanghai. Other functional fluids plants in Southeast Asia are located in Thailand and Indonesia. The U.S plant manufactures and sells functional fluids and synthetic lubricants.
Moresco's portfolio includes die casting mold releasing lubricants; lubricants for hot forging; metal cutting fluids used in automotive and steel industries; synthetic high-temperature lubricating oils and greases; hard disk surface lubricants, and others.
The companys 2015 annual report described Morescos growing focus on the information technology sector. It is estimated that demand for hard disk drives will continue to increase for cloud servers, [so] we will make an effort to provide high-functional hard disk surface lubricants compatible with higher next-generation recording methods. In addition, we will expand the hard disk drives-related business base and comprehensively develop indispensable lubricants such as hydrodynamic bearing lubricants.