Asahi inks JV with UK's Tennants Textile Colours

Asahi Songwon Colors Limited, which is a global leader in blue pigments, has entered into joint venture agreement with Tennants Textile Colours (TTC) Limited of the United Kingdom in order to set up a state of the art red and yellow pigments plant. 

According to Mr. Arjun Jaykrishna, executive director of Asahi Songwon Colors, said the plant will be located at Dahej, Gujarat, for which land has already been acquired and the production will start by March 2021.

The 51 per cent shares will be held by Aashi and TTC will hold 49 per cent in the JV between the companies. The project will have zero debt as both the companies are cash-rich companies and Asahi and TTC will bring in 51 per cent and 49 per cent, respectively, in the form of equity.

"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 is set to make a mark in the azo pigment space," Jaykrishna added.

The pigments of Azo are non-toxic and therefore are the alternatives of the inorganic and toxic pigments.

Mr. Tim Glenn, managing director of TTC said this is a great opportunity for the company to continue its involvement in the manufacture of azo pigments. "For TTC, we already supply a world-class range of dispersions and this JV can only help further improve the quality and regulatory compliance of our products for our customers," he said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.