Asahi Songwon Colors Limited, a global leader in blue pigments, announced a 51:49 joint venture agreement with Tennants Textile Colours (TTC) Limited of the United Kingdom to set up a state of the art red and yellow pigments plant.
Announcing the JV on Tuesday, Arjun Jaykrishna, executive director of Asahi Songwon Colors, said the plant will be located at Dahej, Gujarat, for which land has already been acquired. Production will start by March 2021, he said.
Asahi will hold 51% stake and TTC 49% in the JV company, Asahi Tennants Color Pvt Ltd. Asahi and TTC will bring in 51% and 49% respectively in the form of equity, so the project will have zero debt as Asahi and TTC are both cash-rich companies.
“The JV gives Asahi the perfect launching pad to widen their presence as a leading global supplier of pigments. With TTC’s technology and Asahi’s manufacturing efficiencies Asahi Tennants Color is set to make a mark in the azo pigment space,” Jaykrishna said.
Azo pigments are non-toxic and therefore a better alternative to toxic organic and inorganic pigments.
Tim Glenn, managing director of TTC said this is a great opportunity for the company to continue its involvement in the manufacture of azo pigments. “For TTC, we already supply a world-class range of dispersions and this JV can only help further improve the quality and regulatory compliance of our products for our customers,” he said.
Source: Economic Times