Merck India, a specialty chemical company, and part of the €10.3-billion Merck Group, plans to renew its focus on small and medium-size (SME) clients to grow its performance material business.
The performance materials division of Merck comprises the units of liquid crystals and advanced technologies and effective pigments. Effect pigments is a multi-talented pigment, and finds use in a variety of sectors such as consumer goods, cosmetic, personal care and decorative paints.
Global slowdown
Siddhartha Sengupta, Head, Performance Materials, Merck, said the company had managed to withstand the impact of economic slowdown due to its focus on the SME sector. The company intends to share its expertise in various product categories and provide the service of business consultant to SMEs, which have a business of less than Rs 50 crore.
“Most SMEs we work with are eager to partner with us, as we provide an end-to-end solution including the emerging trends in the export markets. We have about 100 SME clients and aim to more than double this base in the next 18 months,” he said.
In a bid to connect with the SMEs, Merck recently launched ‘Project EffexX’, a collaborative electronic platform, for professionals across design disciplines. It enables interaction and networking among different business and unleashes a whole new world of possibilities in consumer product development. It also aims to communicate the value and benefits of Merck special effect pigments. The company also intends to increase pigment sales in the cosmetic and decorative paint segments as the economic slowdown has hit demand from the automotive sector, which constitutes 35 per cent of total sales. Merck is now reaching out to two-wheeler makers to make good of the slowing demand from car companies.
Consultancy service
Merck is also providing consultancy service to SMEs in packaging their food and personal care products. Generally, the small companies mimic the biggies when packaging their products and lose their identity in the bargain, said Sengupta.
“By joining hands with us in co-creating the design and packaging, SMEs will stand out and create awareness of their own brand,” he said.
India has emerged the fastest growing effective pigment market for Merck in Asia. It currently ranks the fourth after China, Japan and Thailand, which is considered the hub for cosmetic companies, he said.
>suresh.iyengar@thehindu.co.in
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