Toyo Aluminium KK, one of the biggest aluminium paste manufacturers of Japan, has invested in an expansive industrial venture in Vidarbha, India. The Japanese firm has joined hands with Bhandara-based MMP Industries to start a new aluminium paste manufacturing facility at Butibori, an industrial hub in Nagpur. The JV will see the Indian company with significant share in the domestic market shifting its paste manufacturing business to the new unit with the Japanese partner.
The newly formed company named Toyal MMP India Pvt Ltd has been formed at a total investment of INR45 crore with Toyo Aluminium and MMP Industries each holding 74 per cent and 26 per cent shares respectively. The plant, expected to be the biggest in India, with 3,000 tonnes per annum of aluminium paste making capacity will go on stream in July 2017, reported sources close to the firms.
Aluminium paste is used as an important input in paint industry. It finds application in a variety of sectors such as automotive, printing ink, and other related fields. Volume-wise, the market for the paste in India is estimated at 6,000 tonnes. It is expected that the proposed plant would meet 50 per cent of the total domestic demand while catering to foreign markets like the ASEAN countries, Middle East and Latin America.
Under the deal, MMP Industries will shut down its existing aluminium paste manufacturing unit at Bhandara, but will continue making aluminium powder the, said Arun Bhandari of MMP Industries.
Toyo Aluminium President Hiroshi Yamamoto said he expects the newly formed Toyal MMP India to register an initial turnover of INR30 crore and eventually scale higher to INR100 crore over the years. The deal is expected to attract more Japanese manufacturing companies to India that would serve as a real boost for India’s Make in India drive.
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