Italian engineering thermoplastics manufacturer LATI has entered into a joint venture with Gujarat-based polymer and dye manufacturer Loxim Industries, following its acquisition of one of Loxim’s business divisions.
The new entity, LATI-LOXIM Thermoplastics, will enable both companies’ expansion in India, especially in the specialty thermoplastics and engineered plastics segments, according to a company statement. LATI, an 80-year-old company with a presence in 30 countries, has also acquired Loxim’s engineering plastic (EP) compound manufacturing business.
“The new entity will support the development of customized projects for the Indian market, with a focus on innovation and sustainability. This approach will allow it to respond promptly to customer needs and tackle current geopolitical dynamics with greater resilience,” LATI said.
Plastic compounds–formulations made by combining polymers and additives–are used to make specialty thermoplastics used across a wide range of sectors including packaging, automotive, construction, electricals, appliances, and e-mobility.
“By combining our technical expertise with a solid local production presence, we will be able to offer advanced solutions with the same level of quality and service that has always set us apart," said Michela Conterno, CEO of LATI.
Speaking on the development, Canon Patel, managing director at Loxim, said, “It’s a partnership built on mutual respect and trust, and we are excited to bring globally benchmarked solutions closer to the Indian market through this shared vision.”
According to a person familiar with the matter, the combined capitalized value of the two entities is estimated at around Rs 165 crore ($19.1 million). The JV and the acquisition are said to have been struck at around 9x Loxim’s operating profits.
Founded 48 years ago, Loxim Industries is based in Sanad and operates with a 20,000-ton annual production capacity across dyes, engineering plastics, polymer distribution, and pharmaceuticals.
In FY25, the company’s revenue fell 23% to Rs 177.2 crore, while earnings before interest, tax, depreciation, and amortization (EBITDA) shrank by nearly two-thirds to around Rs 5.5 crore.
Singhi Advisors acted as LATI’s advisor for the deal, its eighth transaction in EP compounds and 17th in the polymer processing space.
