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Business alliance with the Indian textile processing chemical manufacturer.
Full-scale development of a huge market in Southwest Asia.

Interviewed in September 2018

Dhaka Liaison Office HONG KONG NICCA CHEMICAL LTD.


Bangalore is the center of India's textile processing industry

In February 2018, we signed a business alliance agreement with Regil Chemicals Private Limited (*1) , which has its headquarters in Bangalore, the southern city of India. RESIL is one of the leading manufacturers of textile chemicals, mainly silicone softeners, which continue to grow steadily in India. We are making full-scale sales in Southwest Asia by leveraging our sales network. We interviewed Yoshihiro Saya and Kazuhiko Ikebata, who lead this project, were asked about the background and response to the decision to expand into the Indian market, as well as future plans.

SAYA Yoshihiro

Executive Officer
General Manager of Corporate Strategy Plannning Division

IKEBATA Kazuhiko

Assistant General Manager of Textile Chemicals Division

World's second largest textile power

The reason why NICCA is focusing on expanding into Southwest Asia is the high marketability expected for decades to come. In particular, India, the center of which, is said to have a market size of about 80 billion yen (about 3 to 4 times that of Japan) for textile processing chemicals, and the second largest market in the world after China is expanding. However, in the past, many of them were for cotton and basic synthetic fiber processing, and there were not many occasions where our products that specialize in high-performance synthetic fibers were used.
However, in recent years, the environment has changed. With the service industry centered on IT at the core, the Indian economy is currently undergoing dramatic growth, and the national income has increased significantly. There is a tendency to expand the number of middle-income earners who are eager to purchase and have a strong desire to do. Against this background, global apparel brands, especially sports brands, are accelerating their entry into India, and the demand for synthetic fiber processing is rapidly increasing. In addition, European and American apparel brands, which are the main export destinations of processed products in India, have strong environmental protection, and demand for "sustainable products" such as fluorine-free water repellents that our company focuses on among processing agents is growing.
In addition, "China Plus One (* 2)", which has manufacturing bases in countries other than China, is progressing due to increased labor costs and environmental costs. Vietnam is now attracting attention as a new location. But Southwest Asia is also promising as the next candidate, "says Saya. India's population (approximately 1.3 billion) is expected to surpass China and become the world's best in the near future, and it can be said that it is one of the most notable areas for expanding sales channels overseas.

Mutually enhancing partners

A large-scale sewing factory that doesn't outdo China. India has a huge market for textile processing

Our partner Regil is one of the top three textile processing chemical manufacturers in India and has a wide sales network. The company is also active in research in new areas such as the development of antibacterial agents using silver nanoparticles, and its technological capabilities and attitude toward innovation are remarkable. A partner who can raise each other " (Saya).
Under this agreement, the exclusive sales rights for each other's products will be granted to Regile in India and Sri Lanka, and in Japan, South Korea, China, Vietnam, Thailand, Indonesia, USA, etc. . In order to get sales in Southwest Asia on track, we invite Resil engineers to our company to conduct product training, and send our sales and technical staff to Resil almost every month. We are working to strengthen sales in the Indian market with two people. "The Regil side has selected the companies that will be focused on the market, and both companies have shared their wisdom and are pursuing a thorough sales strategy. I have just taken steps, but I feel that there is sufficient response." (Ikebata) And sales are steadily growing at a pace exceeding the target.
In order to further activate the business in Southwest Asia, which has made such a good start, we plan to start preparations for local production of our products in India in the fall of 2018. Eventually, we are also looking to build an integrated system from raw material procurement to manufacturing and sales. We will further strengthen all aspects, such as joint development of products for the Indian market, as well as cost, speed and service, and open up the market. We are going to push the accelerator further toward the future.

Glossary

(*1) RESIL Chemicals Private Limited: Established in 1994. They are involved in the manufacture and sale of textile chemicals, mainly cotton. The number of employees is about 350.
(*2) China Plus One: Management strategy that establishes bases in regions other than China in order to avoid risks caused by concentrated investment in China. Expansion into Southeast Asia and Southwest Asia is accelerating, particularly in the manufacturing industry.