“Raw material sourcing has become more strategic then need-base”

What are the products you produce for printing ink industry? Its application in other industry eg Paint or any coating industry?

We manufacture supply a range of pigments like CPC Blue crude, which is used in manufacture of printing ink. It also has an application in paint and coating industry.

What new products has your company recently launched and what kind of inks do they produce?

Recently, we have launched high pigment loading Beta Blue for waterbased inks, improved grade of Blue 15.4, N.C.N.F. Blue 15.2 for coating Industry and CPC using linear alkyl benzene solvent.

Are you seeing any difference/change in the buying pattern from Ink industry ?

Yes. Three changes. The customer prefers to buy on spot basis rather than keeping long term inventories; the demand in print media has dropped considerably; and severe price pressure due to demand supply gap.

Do you have a manufacturing plant in India?

We have multiple manufacturing sites at Vatva, Panoli and Dahej in Gujarat.

What are the constraints of manufacturing/supplying raw materials?

I would put three as the biggest constraint – higher cost of manufacturing due to increased gas price and waste water treatment cost; over dependency on imports for some of the key raw materials; and availability of skilled labour and increasing labour cost.

Raw materials continue to be among the top cost pressures for small and mid-sized manufacturers, and the ability to manage these costs remains a top sourcing concern. How should the procuring company address this critical supply concern?

A company has to plan its raw materials sourcing properly. It has to be more strategic then need based. There is  also a need to invest in developing multiple suppliers who can give them good quality and enough quantity in an appropriate lead time.

The print industry has been witness a change in the way print is being demanded. The structure of the traditional process (offset) which is associated with long-runs is being challenged by growing demand for short-runs, now fast getting recognized with digital printing. What do you make out of this development?

The demand for pigments in print media is declining in western world. Pigment manufacturers will have to adapt to this new change and will be compelled to develop newer products to meet this change.

As supply chains become more complex and exposed to global risks, what’s the best approach to reduce the vulnerability of this operating environment?

A company should reduce its risk by having multiple suppliers and customers. It should have more strategic sourcing and marketing. Also one has to continuously improve operation efficiency, and reduce cost of production.

Has quality been sacrificed by specifying inferior, alternative materials or components? Are ink makers approaching product design in a different way?

No,  not as far as pigment manufacturers are concerned.

What other factors, beyond price, should ink makers consider when choosing suppliers?

They should focus on pigment manufacturers having sustainable manufacturing setup who will guarantee supply chain security along with quality and service.

Customers of printing ink manufacturer are looking for greener technologies, who in turn would demand raw material, which will help them produce such products. How is your company meeting those needs?

At Meghmani Organics most of our plants are working on the philosophy of green manufacturing by complying with all the norms laid down by local and central government for waste water and air pollution.

China has managed to dislodge the global players in technology, volumes and economies. What has stopped Indian multinationals or the large Indian companies or otherwise from creating the same kind of scaling operations?

Chinese manufacturers get more subsidy, better infrastructure and cheaper utility as compared to Indian counterparts. As far as our pigment operations are concerned our current Capex and backward integration have brought us at par with the global players. 

What areas are your R&D efforts focusing on for the future?

Our ongoing R&D offers value addition to existing product portfolio for enhancing application properties and also assist us in developing new products as per market demand.

Would you like to highlight on any of your R&D initiatives?

Our R& D team besides product development/process improvement has made significant contribution in building one of the best waste water treatment plant set-ups at all sites.

Do you have any further expansion plan?

We have already invested Rs 120-cr for capacity expansion at Dahej for producing phthalocyanine pigments and another Rs 50-cr has been invested for capacity expansion of quinacridone pigments at Dahej.

Future plans? Does this include diversion into other segments of print i.e. manufacturing of printing inks?

Not at the Moment. We will focus on our core competence of manufacturing phthalocyanine/ quinacridone pigments. 

The article has been compiled by Noel D'cunha and was first published in Ink News