Japan’s largest ink manufacturer by revenue DIC Corporation has acquired Maharashtra-based resins manufacturer Ideal Chemi Plast Pvt Ltd in an undisclosed amount.
Founded in 2004, Ideal Chemi Plat manufactures and sells acrylic, alkyd, polyester and other resins for auto refinishing, coil and wood coating and other uses.
“Our Group will position India as an important area for accelerating global development and will work on joint operations with group companies in neighbouring countries based on Ideal Chemi Plast in the future, while promoting a joint product development and capital investment as well as business scale we will expand,” said the company in its release.
Currently, India is the sixth largest producer of chemicals globally and the third largest producer of chemicals in Asia by volume. According to the government data published on ‘Make in India’ website, the size of the domestic industry is around $142 billion.
India exported worth $29 billion of chemicals and chemical products in 2016-17, accounting for 10.3% of India’s total exports in the corresponding period. Foreign Direct Investment (FDI) equity inflow to the chemicals industry in India stood to $786 million compared to $1.3 billion for the full year 2017, as per Deloitte’s 2019 report on ‘Global Chemical Industry M&A Outlook’.
DIC has been expanding overseas, especially in South Asia, aiming to boost revenue from the Asia Pacific region to 115.4 billion yen ($1 billion) in fiscal 2021 from 90.1 billion yen in fiscal 2018 said the company in its release.
Source: Economic Times