A global leader in Blue Pigments, Asahi Songwon Colors Limited announced on Tuesday that it has entered into a 51:49 joint venture agreement with United Kingdom’s Tennants Textile Colours Limted (TTC). The decision had been taken in order to create a State of the art Red & Yellow pigment plant.
The joint venture was announced by Arjun Jaykrishna, the Executive Director of Asahi Songwon Colours Limited. The news further alleges that the plant will be located at Dahej, Gujarat. Furthermore, reports suggest the land for production had already been purchased and the work was to start by March 2021.
News quote that Asahi will be eligible for 51% shareholding and TTC will hold 49% shareholding in the JV company. The JV will be allegedly known as Asahi Tennants Color Private Limited. Both Asahi & TTC will be responsible for bringing 51:49 in the form of equity. Experts believe, that the project Zero Debt as Asahi & TTC will be 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 Pvt Ltd is set to make a mark in the AZO pigment space,” commented Jaykrishna.
According to the Managing Director of TTC, Tim Glenn, it was a great opportunity for the company to proceed with its involvement in the manufacture of Azo Pigments.
Experts believe, JV will also strengthen the company’s position as Global Supplier of Pigments, in addition to extending Asahi’s presence in global pigment. TTC is also expected to bring half of its capital as equity and then also bring in high end technology for Yellow, Orange and Red pigments with a buyback option of 20%.
Asahi Songwon Colors Limited is engaged in the manufacturing of Phthalo Pigments which is one of the largest categories of pigments manufactured in India. The company comprises of CPC Blue Crude in addition to a range of Beta Blue Pigments. Furthermore, about 70% of company’s business includes exports.
The industrial sector needs pigments for various purposes such as textile, plastics, printing ink and paints. Asahi is a significant market leader in the business of Blue pigment supplying to top global MNC’s.
Tennants Textile Colours Limited (TTC), England is one of the leading manufacturers of colour. Today the company exports to over 41 countries on a global scale from its base in the UK.
Tags : Blue Pigments, Asahi Songwon Colors Limited, Tennants Textile Colours Limited,