Blend Colours expands in India

India's Blend Colours Pvt. Ltd. is expanding capacity at two sites at its headquarters campus in the south Indian state of Telangana.

The masterbatch and compounding manufacturer, which is part of the $200 million Shree Group, is hiking capacity by 15,000 metric tons a year in two phases.

The company added 7,500 metric tons of production in 2020, raising its manufacturing capacity to 44,000 tonnes. It plans to add an additional 7,500 tonnes by the middle of 2023, raising its combined installed capacity to 51,500 tonnes.

The company has already acquired land and ordered machinery for the second phase of the expansion, which will include 6,000 tonnes of black masterbatches and 1,000 tonnes of white additive and extrusion coatings. An expansion of 500 tonnes of silicone has already been completed.

"The expansion will be carried out at two units and the product lines that will be added are black, color and additives," said Sharad Rathi, BCPL managing director.

Currently, the company operates three sites in Hyderabad, the capital of Telangana, as well as warehouses and sales offices in Ahmedabad, Bengaluru, Vapi and Noida.

It invested about 120 million rupees ($1.4 million) in the first phase of the expansion and expects to spend another 120 million to 150 million rupees ($1.4 million to $1.8 million) in the second phase. The additional capacity would meet demand for specialty products in both export and domestic markets.

BCPL started operations in 1998 and started exporting in 2007. It makes color, black and white masterbatches, as well as additive masterbatches and single pigment concentrates. It also produces polypropylene nonwoven masterbatch and fillers, as well as masterbatches for PET and polypropylene products.

Rathi said BCPL is also planning to invest in an additional plant, its fourth site. It would likely be a site in India outside Hyderabad, but it's also considering an unspecified overseas expansion.

"We will embark on further expansion post-second phase of the expansion, by the end of 2023," Rathi said. "The location of the fourth site would likely be specifically in Western India or even overseas, depending on the strategic and commercial advantages offered."

Indian masterbatch industry sources said the market is projected to grow 12-15 percent a year, with new demands coming from the packaging, agriculture and health care sectors.

Blend Colours claims to be among the top three masterbatch makers in the country, excluding fillers, and the top exporter for 2020-21.

BCPL continues to focus on expanding in overseas markets, including with a range of oxo-biodegradable products in the Middle East.

"The new oxo-biodegradable range received enthusiastic response in the international markets, particularly in the Middle East, including Saudi Arabia," Rathi said, noting the company had also received certification in the United Arab Emirates, seen as a key regional market.

BCPL had exports of 1.37 billion rupees ($16.8 million) in its 2021-22 fiscal year, registered 22 percent growth, with a continued focus on African and Latin American markets. Its overall sales reached 5 billion rupees ($61.2 million), for 31 percent growth.

"As part of penetrating deeper into some of the key export markets, we have also appointed agents in order to increase our presence," he said.

In an interview before K 2022, Rathi said the company will be active at the show.

"We are planning to showcase a range of innovative products, such as PIB masterbatch, laser marking, anti-rodent, anti-termite, as well as launching a biodegradable and compostable grade range," he said.

It's also investing in additional research and development capabilities, including opening a engineering innovation center.

"Currently, our product innovation department is working on additives for recycling, packaging and [the] textile industry," Rathi said.