Granula AG, a masterbatch producer based in Merenschwand, Switzerland and SOM SHIVA (IMPEX) LTD, an Indian plastics company, have announced the formation of their joint venture in India under the name Granula Masterbatches India Pvt. Ltd. The new production facilities will primarily produce and sell color masterbatches and additives in the local market.
The company will mainly target sectors including the food packaging, medical, cosmetic and automotive industries in India. Where international food contact approvals and competence for the medical or the automotive section is required, the new company will be one of the first addresses to contact. To that end, a completely new, state-of-the-art masterbatch production facility is being constructed in the industrial area near Ahmedabad, in the state of Gujarat, India. Granula Masterbatches India (GMI) will be one of the first occupants of the new industrial zone that is being developed there. According to Granula, production is projected to start in the second quarter of 2017.
India is currently viewed by global corporations as one of the key markets from where future growth is likely to emerge. Bolstered by a fast expanding middle class and young consumers – census figures show that around 41% of India’s population is under 20 – retail is booming. In addition, a recent study by the McKinsey Global Institute suggests that if India continues to grow at the current pace, average household incomes will triple over the next two decades, making the country the world’s fifth-largest consumer economy by 2025, up from the current 12th position. Demand for consumer goods will continue to grow.
As a result, says Jürg Weibel, owner and director of Granula AG, there is an increasing need for technical competence in plastics in India, which is boosting market demand for masterbatches.
“Right now, there is a huge, unmet demand for basic consumer goods in India. But this is changing fast with a vastly increasing middle class,” he explained. “As masterbatch producers, we see enormous opportunities in the steps India is taking to open up the domestic market and moving to higher quality products. We want to be part of that change.”
Granula combines technological strength with flexibility to respond quickly and effectively to customer demands, from color matching and sampling through the development of new products. Granula’s masterbatch formulations modify and enhance end product properties, providing the consistent results that global brands depend on. This is further underpinned by the fact that the product databases of both Granula AG and GMI are linked, providing the new company with access to thousands of existing and new formulations, and ensuring the highest levels of quality and conformity across the board.
“Granula is a development partner for numerous international brands,” said Weibel. “We want to have a presence where we see great growth potential. GMI will not only bring the latest technology to India, but also work closely with local partners and customers to jointly create value for their products in whatever polymer or end application they are in.”