The Hindu Business Line : DIC India to make Bangalore new hub

DIC India Ltd (formerly Coates of India), now a member of the $19-billion DIC Group of Japan, plans to create a new manufacturing hub in Southern India at Bangalore to carry out blending operations for offset, sheetfed and Liquid Inks to meet the entire requirements of the region.

The company also plans to use the facility as a warehouse for storage of finished inks for sale in the neighbouring regions. DIC India also wishes to enter into a Toll Manufacturing contract with its wholly owned subsidiary DIC Coatings India Ltd (DCIL) for manufacture of Lamination Adhesives on its behalf.

These adhesives are mainly used by the flexible packaging industry for laminating packaging materials to enhance packaging quality.

Talking to newspersons here at the sidelines of the company's 58th annual general meeting, Dr P.K. Dutt, managing director, said the two main planks of the company's business were printing inks and packaging laminating adhesives, which are modular in composition and hence, amenable to periodic capacity additions product wise.

The company envisages investments of around Rs 14-15 crore during 2006 for upgradation of production facilities, mainly at Noida (News Colours Inks), Ahmedabad (News Colours Black), and Kolkata (Colours offset sheetfed liquid inks). Dr Dutt said the new business strategy of DIC India revolved around product-mix, where different units would be making different products according to market requirements. He said major expansion works were on at the Noida and Ahmedabad works.

Earlier, addressing shareholders, Mr J.N. Sapru, Chairman, said the support being received from DIC will enable the Indian outfit to further consolidate its position in the industry.

Replying to queries from shareholder on whether the company had stopped growing, considering that the paid up equity for the last 10 years has remained at a measly Rs 6.88 crore, Mr Sapru attributed this to frequent change in promoter shareholders — from Coates Brothers plc to TOTAL of France to DIC Group of Japan.

The DIC board had recommended a dividend of Rs 3.50 per share for 2005, the same as in 2004. Post tax profits have increased from Rs 7.5 crore in 2004 to Rs 10.1 crore in 2005.

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