### **Overview** Sudarshan Chemical Industries Limited (SCIL), founded in 1951 in Pune, India, is now one of the **top two global pigment manufacturers** following its transformative acquisition of the **Heubach Group** in March 2025. The merger has created **ONE Sudarshan**, a fully integrated global color solutions platform with over **270 years of combined industry heritage**, positioning the company as a dominant force in the pigment and colorants sector. ONE Sudarshan operates under a **dual headquarters model in Pune, India, and Frankfurt, Germany**, and has evolved from a regional Indian player into a **global leader**, serving more than **4,000 customers in over 120 countries** with a comprehensive portfolio of high-performance, sustainable, and specialty pigments. --- ### **Key Strategic Developments (2024–2025)** #### **1. Acquisition & Integration of Heubach Group (Mar 2025)** - Sudarshan completed a **definitive combined asset and share deal** via its subsidiary Sudarshan Europe B.V. to acquire the Germany-based **Heubach Group**, which had previously acquired **Clariant’s pigments business in 2022**. - The acquisition includes 17 advanced manufacturing facilities and over **2,800 employees**, consolidating three legacy pigment businesses—Sudarshan, Heubach, and Clariant Pigments—into a single global entity. - Deal value: **₹1,180 crores (€127.5 million)** on a debt-free basis, with an additional **₹925 crores (€100 million)** infused for working capital and restructuring. - The unified entity is now operating under the **brand identity "ONE Sudarshan"**. #### **2. Global Scale & Manufacturing Footprint** - Post-acquisition, the company operates **19 manufacturing facilities across 11 countries** on five continents. - These sites ensure **supply chain resilience**, regional agility, and support for a **customer-centric model** with localized service and technical expertise. - Key geographies include India, Germany, the U.S., China, Brazil, Mexico, South Africa, and several European countries. #### **3. Comprehensive Product Portfolio** - ONE Sudarshan boasts one of the **most extensive pigment portfolios globally**, including: - **Organic pigments** (Azo, Phthalocyanines, High-Performance Pigments/HPPs) - **Inorganic pigments** (Iron Oxides, Chromium, Cadmiums, Complex Inorganic Color Pigments/CICP) - **Effect pigments** (pearlescent/mica-based) - **Pigment dispersions** and **specialty solvent dyes** - Portfolio includes **~1,600 pigment products** across **63 brands**, with **54 recognized as top-selling global brands**. - Notable brands: **Sudaperm™ (HPPs), Sudanyl™ (dispersions), Sudasol™ (solvent dyes), Sudafast™ (medium-performance pigments)**. #### **4. Leadership & Governance** - **Mr. Rajesh Rathi**, Managing Director of Sudarshan Chemical Industries, serves as **CEO of ONE Sudarshan**. - Leadership integration is complete, with unified global teams focused on agility, innovation, and operational excellence. - Core values: **Seva (service), Ownership, Bold Ambition, and Simplicity**. - Over **70% of employees** are already aligned with the new organizational culture. --- ### **Financial & Operational Performance (2024–2025)** #### **Revenue & Profitability** - **Annual revenue of the combined entity: ~€1 billion** (driven by Heubach’s historical revenue of €879M in FY23 and Sudarshan’s FY24 revenue of $307M / ~₹2,560 crores). - Sudarshan’s FY24 EBITDA achieved a **12.7% margin** (up from 8.1% YoY), driven by cost discipline and strategic product focus. - **EBITDA turnaround targeted for Heubach** at **€35 million**, driven by: - Manufacturing cost reductions - Procurement optimization - SG&A streamlining - Organizational restructuring - The acquisition is expected to be **EBITDA and EPS accretive**, with significant synergy capture in procurement, manufacturing, and IT/SG&A. #### **Exports & Market Share** - **53% of Sudarshan's revenue** historically came from exports (9M FY25). - Now, with global production and sales integration, **international revenue dominance is reinforced**. - Sudarshan remains the **largest pigment producer in India**, with **~35% domestic market share**. --- ### **Research, Innovation & Sustainability** #### **Global R&D Network** - Operates **12 technology centers worldwide**, including: - 6 R&D centers in India and Germany - Innovation hubs in Santa Clara (Mexico), Suzano (Brazil), Charlotte (USA) - Over **200 technical professionals and ~30 FTE researchers** focused on innovation. - 5 R&D units: Azo, HPP, Anti-Corrosion, Inorganic Pigments, and **Sustainability-Led Innovation**. #### **Product Innovation** - Launched **Pigment Violet 23** across all application segments in FY25. - New product verticals introduced: **CICP, Solvent Dyes, Pigment Preparation, and Digital Inks**. - Introduced **OEKO-TEX certified Sudatex products** and achieved **EN 13432:2000 industrial compostability compliance**. - Pipeline includes **green chemistry-based pigments** and **zero-solvent manufacturing processes**. #### **Sustainability Leadership** - Commits to **SBTi (Science-Based Targets initiative)** – targeting **42.5% emissions reduction by 2030**. - **Top 3% ranking in EcoVadis**, with **Gold Rating** for sustainability. - **60–70% renewable energy usage** across operations (up from 0% in FY11). - Achieved **BSC certification** and **Sword of Honour** for safety excellence at Indian plants. --- ### **Manufacturing & Infrastructure** - **Flagship manufacturing sites**: - **Roha, India** (est. 1973): World’s **largest single-site pigment plant**; produces AZO, HPP, dispersions, inorganic pigments. - **Mahad, India** (est. 1993): Specializes in **blue, green, and effect pigments**. - Both Indian facilities are BSC-certified, feature **state-of-the-art effluent treatment**, and support global exports. - German sites being repositioned toward **specialty and high-margin products**. --- ### **Business Focus & Strategic Direction** - **Pure-play pigment strategy**: Exited agrochemicals, masterbatches, and engineering businesses by FY24. - Focus sectors: **Coatings (automotive, decorative), Plastics, Inks (digital, offset), Cosmetics, Electronics**. - Avoids competing with customers (e.g., does not manufacture end products or masterbatches). - Targets **U.S., EU, and China** for further market penetration. - Growth drivers: - **Specialty & high-performance pigments** (targeting >70% of revenue mix) - **Sustainable & circular economy solutions** - **Digital inks and pigments for consumer electronics** (e.g., pigments approved for **iPhone and Samsung devices**) --- ### **Global Expansion & Subsidiaries** - Owns **100% or controlling stakes** in subsidiaries across: - India, USA, Germany, Netherlands, Brazil, Mexico, China, Japan - Key subsidiaries: **Sudarshan Europe B.V., Sudarshan North America Inc., Sudarshan (Shanghai) Trading, RIECO Industries Ltd.** - Joint ventures: **Heubach Toyo Colour Private Limited (India), Hangzhou Baihe Heubach Pigments Co. Ltd. (China)** - Operational entities rebranded under **Sudarshan or ONE Sudarshan**, including former Heubach entities in Belgium, Germany, Argentina, and the Middle East. --- ### **Market Position & Competitive Advantage** - **ONE Sudarshan is now the only global player exclusively focused on pigments**; others have diversified business models. - Two dominant global competitors remain; Sudarshan is uniquely positioned to **benefit from industry consolidation**. - Leverages **India’s cost advantage**, **German engineering**, and **global supply chain agility**. - Benefits from **China-plus-one** and **de-risking trends** in global procurement.