Rajasthan’s unfinished fracking bonanza | beyondbrics

Rajasthan’s unfinished fracking bonanza | beyondbrics:

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They say timing is everything in business, and the Indian guar gum producers who invested in new capacity early last year – just as the US fracking business realised it needed thousands of tonnes of the stuff in a hurry – either got lucky or timed their market entry to perfection. But is the multi-billion dollar boom in this once obscure commodity now over?

Not according to Bheru Jain and S.N. Dhoot, chief executive and managing director respectively of Rajasthan Gum, a joint venture between the Dhoot family and Economy Polymers and Chemicals of Houston, Texas. Rajasthan Gum is one of India’s biggest exporters.

True, the tenfold increase in prices in 2012 has been mostly reversed but, in rupees, guar gum still sells at three times the old price that prevailed for two decades until 2010 and the US fracking bonanza."

'via Blog this'