DIC Corporation has acquired mid-tier Indian resins manufacturer Ideal Chemi Plast and now begins constructing a new production facility. We spoke to Kaoru Ino, President and CEO, DIC Group, about the coatings resins markets.
How would you generally rate the current resins market?
Kaoru Ino: Demand for coating resins is growing at one of the highest growth rates in the world due to Indian population growth, especially in the middle class. In terms of price and quality, the middle-high market has grown from the low-end market.
What are customers’ demands when it comes to coatings resins?
Ino: Increased environmental awareness and stricter emissions regulations have led to increased demand for environmentally friendly products. In DIC products, high solid type coating resins (low solvent) and products which contribute to shortening and simplification of painting process are of high interest.
What types of coatings resins show highest demand and which ones will increase their share in future?
Ino: In the medium term, the middle market and environmentally friendly products will grow the most. In the long term, we are also closely watching the shift of electronics-related production bases from China, South Korea and Taiwan to India. This shift would boost local demand for high-end products such as coatings for plastics and electrical materials.
How would you rate the competitive situation in the market for coating resins producers?
Ino: There are many small and medium players in India and they are not oligopolistic. On the other hand, high-end products are mainly exported by major global manufacturers.
How will the market for coatings resins further develop?
Ino: In the future, there will be demand for local production of high-end products (automotive applications, plastics applications, etc.) currently exported by global manufacturers. DIC will consider capital investment in a timely manner.
This interview is part of a longer article on the acquisition in the European Coatings Journal.
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