Mumbai: Sakata Inx (India) Ltd, a 100-per cent subsidiary of Japan's premium ink manufacturer, Sakata Inx Corporation, Japan, will set up the company's biggest ink manufacturing plant in Panoli, Gujarat. This global sourcing plant will be set up in two phases at an investment of around Rs60 crore. The company will invest Rs30 crore in the first phase, which will be completed by 2007, and the remainder in the second phase.

The plant will be fully operational by 2009, and produce high-quality gravure printing inks, which will be further, customised to cater to the specific demands of the flexible packaging industry.

According to V K Seth, managing director, Sakata Inx (India) Ltd, "The Panoli plant will focus on manufacturing news ink, thereby targeting the vast number of publishing and media houses and customer base located in Western India." Also, a plant at Gujarat would make it easier for the company to cater to the entire western markets from the surrounding seaports and sound infrastructure of the state.

Seth added, that Sakata would also look at manufacturing UV and digital inks to expand its reach into the Indian market. The new unit will also cater to the demand of metal decorations by producing two-piece cans. Sakata India is also eyeing the huge growth potential in the retail industry segment and in regards awaiting a nod from FDI for investment in the Indian markets.

The company has targeted 50-per cent export sales from the Panoli plant. The plant will be a comprehensive manufacturing base for all types of inks for the domestic as well as the international markets that include West Asia, Africa and other CIS countries. The Panoli plant is expected to increase the contribution to revenues earned from ink exports from 10 per cent to 25 per cent and will incorporate the latest R & D facilities and productivity enhancement procedures.

Sakata Inx (India) has a production unit in Bhiwadi, that produces around 15-20 tons per day of ink and ancillary products. Its products are used in the packaging and printing industry.