Business Wire India
DIC Corporation (TOKYO: 4631) has for some time been exploring the possibility of an alliance with India’s Jindal Poly Films Limited, one of the world’s largest manufacturers of biaxially oriented polypropylene (BOPP) film, with the aim of helping to foster a market for functional cast polypropylene (CPP) film in India. Today, DIC announced that the two companies have reached a consensus to collaborate in this area.
India, like other countries, is experiencing a greater need for products with performance features that respond better to environmental concerns and sanitation issues. In the food packaging field, demand is increasing for films with performance features that meet such needs. Of particular note, demand for functional CPP film, which contributes to the realization of reducing plastics, mono-material packaging, is expected to expand in the future.
Anticipating growth in the Indian market for CPP film, Jindal Poly Films entered this business in 2018, at which time it also approached DIC to propose collaboration.
Having determined that working with Jindal Poly Films would be an important first step in nurturing demand in the promising Indian market, DIC explored the proposal in detail.
Collaborative initiatives in the following three spheres are under consideration by the two companies, with concrete activities expected to commence within fiscal year 2021 at the earliest:
- Entering into a technology licensing agreement whereby DIC would extend packaging technologies to Jindal Poly Films;
- Developing and mass-producing functional CPP film using DIC technologies at Jindal Poly Films’ plant in India; and
- Conducting joint sales of functional CPP film manufactured by Jindal Poly Films in India with a view to establishing a joint venture.
Through this business, DIC has sought to provide value to society through the improvement of environmental performance, i.e., by making films thinner to reduce plastic use, and enhancing performance features such as easy peel, which makes packaging easier to open.
Amid growing sustainability-related needs, DIC aims to expand its films business by capitalizing on this collaboration with Jindal Poly Films to introduce advanced technologies cultivated in Japan to the Indian market, which is expected to see significant growth going forward.