The aim of the new company is to strengthen sales of Toyo Ink’s pigments in India and overseas. The alliance will facilitate the distribution of organic pigments, which are internationally competitive in terms of performance, quality and prices, within India and overseas. The organic pigment products will also be supplied to the Toyo Ink Group’s India-based activities relating to its products in an effort to improve competitiveness.

The name of the proposed company has not yet been finalised. However, the company would manufacture, sell and export of disazo pigments for use in printing ink, resin coloring etc. The date of incorporation of the joint venture has been scheduled in March 2013.

Both Toyo Ink and Heubach Colour would hold equal share in the new company formed. Chairman and president of this new company will be nominated from the Toyo Ink Group and the Heubach Group, respectively.

The establishment of the joint venture will be followed by construction of a factory within Heubach Colour’s production site. The new factory will commence commercial production in May 2014, leading to sales expansion through marketing activities in India and the two groups’ global sales networks. They aim to achieve sales volume of 2,000 tons by 2016.

Having manufactured and marketed organic pigments since the 1920s, group’s activities are expanding on a global level. Heubach Colour, affiliated with the more than six-centuries-old Heubach Group, is among the companies occupying the largest share in India.

Heubach Colour has sales channels that cover the entire country, cost-competitive production infrastructure and outstanding capacity for controlling product quality and addressing environmental concerns. The aim of the recent establishment of a joint venture is for both companies to maximise, through the establishment of a close partnership in yellow organic pigments, the sharing of their management resources and advantages in an effort to facilitate their business expansion.

The pigment market in India is expected to continue to enjoy sustainable growth, as in China. Many different types of chemicals to serve as raw materials for pigments are concentrated in India and China in a two-pole manner. The company claims that the rapid spread of environmental regulations in India is leading to an increasing array of problems. “For example, investments made in response to the regulations have placed a great deal of pressure on their business activities and the raw materials market is becoming decreasingly stable,” states the release issued by the company.

“Heubach Colour has production infrastructure and capacity for raw material procurement and marketing in India, while the Toyo Ink Group has technical expertise in the production of yellow organic pigments, as well as international brand power. Combining these strengths will help form a system for the production and marketing of pigments that can compete on a worldwide level. At the same time, the partners will continue to offer pigments that excel in quality and cost competitiveness, in order to facilitate the Toyo Ink Group’s activities for manufacturing printing ink and other products that will be commercially available in the country,” the company states.