**Subsidiary of DIC Corporation, Japan (71.75% Holding)** DIC India Limited, established in **1947**, is a premier manufacturer of printing inks and lamination adhesives. As a key subsidiary of the global **DIC Corporation** (via DIC Asia Pacific Pte Ltd), the company serves as a critical link in the supply chains of the Indian packaging, publishing, and industrial sectors. The company is currently undergoing a strategic transformation, shifting its manufacturing base to high-efficiency hubs and pivoting its product portfolio toward sustainable, toluene-free, and high-speed technologies. --- ### I. Strategic Manufacturing Realignment & Footprint DIC India has recently optimized its operational base to improve efficiency and proximity to key industrial clusters. This included the commissioning of a major greenfield site and the closure of legacy assets. | Plant Location | Primary Products / Capabilities | Status | | :--- | :--- | :--- | | **Saykha, Gujarat** | **Liquid Inks** (Project Optima; Capitalized at **₹85.21 crore**) | **Operational (New)** | | **Noida, UP** | **Liquid Inks**, **News Colour Inks**, and **Flexo Inks** | Operational | | **Ahmedabad, Gujarat** | **News Black Inks**, **Offset Aquatic Inks**, and **WB Flexo Inks** | Operational | | **Bengaluru, Karnataka** | **Adhesives** and **PU Resins** | Operational | | **Kolkata, West Bengal** | Legacy manufacturing facility | **Closed (March 2024)** | The closure of the **Kolkata plant** followed a **Calcutta High Court** judgment in **February 2024**, allowing the company to hand over the land to the **Kolkata Port Trust (KOPT)**. While the West Bengal Labour Department has appealed this closure, the move marks a definitive shift toward the modern **Saykha** facility. --- ### II. Specialized Product Portfolio & Market Applications The company operates as a single-segment entity (**Printing Inks**) but maintains a diverse range of high-performance applications across three core categories: #### 1. Packaging Inks & Functional Coatings Focused on the **F&B**, **Personal Care**, and **Pharma** sectors, DIC India is a leader in regulatory-compliant solutions (IS 15495:2020, REACH, Swiss Ordinance). * **Liquid Inks:** Includes the **Smart KF/TF** (Ketone/Toluene-free) and **Hikari HSKF/HSTF** ranges for high-speed reverse lamination. * **Sustainable Solutions:** **AquaSmart** water-based inks offer an **80% VOC reduction**. The company also produces **PVC-free inks** to enhance laminate recyclability. * **Functional Coatings:** **Barrier coatings** that enable **1-ply structures** by replacing film layers, and **Sun Coat LMQ** aqueous coatings with migration rates below **60mg/kg**. * **Brand Protection:** Integration of **microsphere technology** (Tagged inks) and thermochromic inks to combat counterfeiting. #### 2. Lamination Adhesives Produced at the state-of-the-art **Bengaluru** facility, these solutions are critical for flexible packaging. * **Solvent-Free:** **NS 5210A / NS 5310A** series, capable of speeds up to **375 m/pm** on PE. * **Barrier Adhesives:** The **Paslim** range facilitates mono-material structures for better recyclability. * **Industrial/Solar:** The **PVBS** range provides **25+ years** of bonding and insulation for solar PV modules. #### 3. Publication & Commercial Offset * **Newsprint:** Brands like **Popular** and **Express** are optimized for high-speed presses with minimal start-up waste. * **Eco-Friendly Offset:** Transitioning to **Mineral Oil Free (MOF)** and **Low PAH** inks made from renewable vegetable oils for food-safe rigid packaging. --- ### III. R&D and Technical Collaboration DIC India leverages a **Technical Collaboration Agreement** with its Japanese parent for the continuous transfer of manufacturing techniques and global trade names. * **R&D Investment:** As of early 2026, the company spent **₹7.02 crore** (**0.80% of turnover**) on R&D. * **Innovation Hubs:** Dedicated centers in **Noida** and **Bengaluru** focus on **LED Offset Inks**, **Low Migration Low Odor (LMLO)** UV inks, and digital color matching via **IMS**. * **Captive Production:** The company imports technology for the captive manufacture of **polyester, polyurethane, and poly-urea resins**, reducing dependence on external suppliers. --- ### IV. Financial Performance & Capital Structure The company maintains a conservative financial profile with a strong **net cash position**. | Financial Metric (INR Lakhs) | Dec 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Annual Turnover** | -- | **88,153** | | **Profit Before Tax (PBT)** | -- | **2,433** | | **Cash and Cash Equivalents** | **6,454.53** | **3,912.73** | | **Net Debt to Equity Ratio** | **(0.14)** | **(0.09)** | | **Dividend Per Share** | -- | **₹4.00** | **Credit Ratings (CRISIL, Oct 2025):** * **Long-Term:** **CRISIL A/Stable** (Reaffirmed) * **Short-Term:** **CRISIL A1** (Reaffirmed) * **Bank Facilities:** Enhanced to **₹100 Crore** to support operational scaling. --- ### V. Strategic Framework: I-ESG The company’s growth is guided by the **Innovation, Environment, Sustainability, and Governance (I-ESG)** framework: * **Operational Excellence:** Focus on **formulation optimization** to counter raw material inflation and **digital enablement** for supply chain visibility. * **Safety & Governance:** Programs like **Sankalp** (Safety) and **Vishwas in Quality** are foundational. The company has achieved **5 consecutive incident-free years** as of 2026. * **Leadership:** **Mr. Manish Bhatia** was re-appointed as **MD & CEO** in December 2024 to lead this transition. --- ### VI. Risk Factors & Contingencies Investors should monitor the following sensitivities: * **Litigation Landscape:** The company is managing several tax and regulatory disputes. While many have been reduced (e.g., a **₹6.71 Crore** GST demand reduced to **₹3.81 Lakh**), a **₹3.84 Crore** Income Tax adjustment and the **KOPT** land compensation dispute (**₹2.78 Crore**) remain active. * **Macroeconomic Volatility:** Exposure to **USD-INR** and **EUR-INR** fluctuations (FY25 foreign outgo was **₹164.19 crore** vs. earnings of **₹74.29 crore**). * **Input Costs:** Volatility in **Titanium Dioxide (TiO2)** and other raw materials requires constant "formulation efficiency" to protect margins. * **Asset Impairment:** A long-standing impairment provision remains on the **Adhesive Division** due to projected losses in that specific unit. * **Market Pace:** The transition to premium sustainable inks depends on the speed at which FMCG brand owners adopt costlier, eco-friendly technologies.