LANXESS Commences Indian Production of Fire-Resistant Hydraulic Fluids

In July 2026, LANXESS commenced a local production of fire-resistant hydraulic fluids (FRHF) at its Jhagadia facility in Gujarat, reinforcing India’s strategic role in the company’s global growth plans. By leveraging its global scale, advanced technology, and strong regional presence, LANXESS is strengthening its “local-for-local” strategy while supporting the Government of India’s Make in India initiative.

The Jhagadia plant is set to manufacture Reolube, which is a phosphate ester-based fire-resistant hydraulic fluid, enabling LANXESS to serve customers in India, the Middle East, and the broader IMEA region more efficiently. As a long-established leader in this segment, the company is bringing decades of global expertise in supplying high-performance hydraulic fluids for applications that demand exceptional operational reliability and safety. By producing these fluids locally, LANXESS will improve product availability, reduce lead times, and provide customers with faster access to globally proven solutions.

The country continues to attract significant investments in energy infrastructure, including power generation projects. At the same time, energy-intensive sectors such as data centers, artificial intelligence (AI) facilities, and advanced digital infrastructure are expanding rapidly. Consequently, demand for reliable and fire-resistant hydraulic fluid solutions is increasing across multiple industries. LANXESS views this trend as a major opportunity to deepen its presence in one of the world’s fastest-growing industrial markets.

In addition to the Jhagadia manufacturing facility, LANXESS has also recently opened a dedicated Application Development Center (ADC) in Thane. This center provides local technical support, product development capabilities, and closer collaboration with customers. With these increasing amounts of investments, LANXESS is further embedding its technology, manufacturing capabilities, and customer support infrastructure in India. The company aims to serve customers more directly while providing reliable access to globally recognized fire-resistant hydraulic fluid solutions. LANXESS is positioning itself as a trusted local partner for customers seeking high-performance, phosphate ester-based fire-resistant hydraulic fluids backed by global expertise and local support.

Impact on the Chemicals Market

The chemical manufacturing sector is at a pivotal point in the market, and its growth and development are characterized by rapid innovations that promise to redefine the landscape of production. As the industry grapples with challenges posed by environmental considerations, economic fluctuations, and evolving consumer demands, modern technological advancements are stepping in to provide transformative solutions.

The market has a strong focus on advanced materials that are helping in reshaping the chemical manufacturing landscape, with innovative solutions tailored to meet the diverse demands of modern applications. Moreover, the integration of advanced materials within chemical manufacturing not only addresses regulatory and consumer demands but also helps to promote interdisciplinary collaboration. By partnering with researchers, engineers, and other industries, manufacturers can access new insights and technologies that push the boundaries of what is possible. This approach fosters a culture of innovation that will drive the chemical sector into the future, enabling it to meet the evolving challenges of society.

Impact on the Hydraulic Intensifiers Market

The global hydraulic intensifiers market size accounted for USD 46.25 billion in 2025 and is predicted to increase from USD 49.46 billion in 2026 to approximately USD 90.39 billion by 2035, expanding at a CAGR of 6.93% from 2026 to 2035.

According to Precedence Research, the market is increasingly focusing on developing eco-friendly and low-energy consumption intensifiers to comply with stringent environmental regulations and reduce operating costs. Large-scale infrastructure developments, particularly in the Asia-Pacific region, are helping boost the demand for heavy-duty machinery that utilizes high-pressure hydraulics.

Increasing adoption of robotics, automated pick-and-place systems, and assembly lines in manufacturing is also helping to drive the demand for precise and high-performance hydraulic intensifiers. Manufacturers all over the world are turning from reactive to predictive maintenance models by embedding advanced sensors and IoT connectivity into intensifier units. This enables real-time telemetry and data analytics, allowing operators to optimize performance parameters and data analytics.

Impact on the Hydraulic Tools And Equipment Market

The global hydraulic tools and equipment market size is expected to be valued at USD 53.74 billion in 2025 and is anticipated to reach around USD 81.09 billion by 2035, expanding at a CAGR of 4.2% over the forecast period 2025 to 2035.

According to Precedence Research, growing investments in infrastructure projects worldwide are helping drive the demand for hydraulic tools and equipment, which are mainly used in construction and earthmoving applications. The trend towards automation in manufacturing and industrial sectors further boosts the need for hydraulic systems in various machinery and robotics. Advancements in automotive technology, including electric vehicles and hybrid systems, require hydraulic equipment for powertrain and brake systems.

Smart manufacturing, driven by Industry 4.0 principles, is also helping in revolutionizing the manufacturing landscape and creating significant opportunities in the hydraulic tools and equipment market. This transformation involves the integration of data, automation, and connectivity to optimize production processes.

Expert Opinion

“Local production of Reolube fire-resistant hydraulic fluids in India is an important step in strengthening our customer proximity and supply reliability in a fast-growing region. It reflects our confidence in India’s potential and our commitment to delivering globally proven, high-performance solutions closer to where our customers need them,”

Stated by Neelanjan Banerjee, Senior Vice President and Global Head, Business Unit Lubricant Additives, LANXESS.