Blend Colours to Complete Expansion by 2023
Hyderabad – Telangana headquartered US$ 200 million Shree Group of Companies Masterbatch & Compounding subsidiary Blend Colours Pvt Ltd (BCPL) is expanding capacity at two of its sites based at South Indian State.
The company is hiking capacities by 15,000 MTPA annually in phases, already added 7,500 MTPA in the FY2020, raising the capacity from 36,500 MTPA to 44,000 MTPA. Additional capacity of 7,500 MTPA would be added by the middle of 2023 as part of phase 2 expansion, raising the combined installed capacity to 51,500 MTPA. The company has already acquired land and ordered the required machinery for the second phase of expansion.
The Phase 2 expansion includes creating capacities of black masterbatches (6,000 MTPA) and additive & extrusions coating white (1,000 MTPA) by the middle of 2023, while, expansion of silicone MB (500 MTPA) has already been completed.
“The expansion will be carried out at 2 units & the product lines will be added are black, colour & additives,” informed Sharad Rathi, Managing Director, Blend Colours Pvt Ltd. Currently, BCPL operates three sites in Hyderabad, Capital of Telangana besides warehouses-cum-sales offices in Ahmedabad, Bengaluru, Vapi and Noida.
Investing about ₹120 Million in the phase-1 expansion, while another ₹120-150 Million to be invested in the second phase of expansion. The additional capacity would meet the growing speciality products commitments in the domestic & export markets.
BCPL started operations in 1998, despatched first shipment to the overseas market in 2007, producing complete range of colour, black & white MB, additive MB, single pigment concentrates, PP non-woven MB & fillers, BOPP/CPP MB, PP fibre MB, PET MB and PE/PP mineral filled MB in conformity with international standards.
Pondering over fourth site in India or Abroad
BCPL is also planning to invest into fourth site, the upcoming unit would likely to be based out of Hyderabad. It is also scouting an opportunity to expand overseas, though, no specific geography has been finalized for the global expansion. “We will embark on further expansion post second phase of expansion by the end of 2023 and the location of the fourth site would likely to be specifically in Western India or even overseas, depending on the strategic & commercial advantages offered from the investment,” confided Rathi.
Indian Masterbatch market is projected to grow at 12-15% CAGR; with new demands coming from Packaging, Agriculture and Healthcare sectors. Blend Colours claimed to be the Top 3 Producers of Masterbatches (excluding Fillers), and Top Exporter of Masterbatches from India (again excluding fillers) for 2020-21. With growing application of speciality Masterbatches & Compounds, BCPL hopes to maintain its strong position in domestic and export market.
Oxo-biodegradable range receives accreditation in the key Middle East Markets
BCPL continue to expand footprints in the overseas market as the new oxo-biodegradable range received positive response in the Middle East markets. “The new oxo-biodegradable range received enthusiastic response in the international market particularly in the Middle East like Saudi Arabia, where we received ‘SASO” accreditation, required to market in Saudi market regarded as one of the biggest in the Middle East. We have also been accredited with ‘ESMA’ certification to market in the UAE, regarded as key market in the region.”
The company earned export revenue of ₹1.37 Billion in 2021-22, registered 22% YoY growth. While the overall turnover reached INR ₹Billion in the last fiscal, registering YoY growth of 31%.
“As part of penetrating deeper into some of the key export markets, we have also appointed agents in order to increase its presence. besides continued focus on African and Latin American markets in the ongoing fiscal.”
BCPL is regularly showcasing its range in the Indian and international shows like Plastivision India, Interplastica, K Shows and NPE’s in order to identify new opportunities in the global market.
“We are planning to showcase range of innovative products such as: PIB Masterbatch, Laser Marking, Anti-Rodent, Anti-Termite etc besides launching Bio-Degradable & Compostable Grade range at the forthcoming K Show.”
Robust R&D Talent Pool & Infrastructure
Continued research and innovation led it to customize masterbatches & compounds, creating perfect balance between quality and cost-effectiveness supported by robust R&D infrastructure like differential scanning calorimetry, Fourier transformed infrared spectroscopy, simultaneous Thermal Analyzer, Lab Tech filter index tester, pilot nonwoven machine etc.
“Currently, our product innovation department is working on additives for recycling, packaging & high concentration mono’s for textile industry,” stated Sharad Rathi.
BCPL made additional investments in R&D, started R&D centre for engineering innovation, with equipment’s being added for their specific developments.
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