- 14 Mar 2023
- ICICIdirect Research
BTC EUROPE, SUDARSHAN CHEMICAL SIGN AGREEMENT ON DISTRIBUTION OF PIGMENTS IN EUROPE
SUDARSCHEM - 1258 Change: 6.70 (0.54 %)News: BTC Europe, BASF's European distribution organisation and Sudarshan Chemical have signed an agreement on the distribution of organic and inorganic pigments as well as effect pigments in Europe. Both companies seek to leverage their expertise and industrial know-how to offer customers access to a wide portfolio of high-quality pigments for various industries
Views: BTC's huge distribution network across end users of pigments may benefit Sudarshan in terms of acquiring new customers, especially in the Europe region via BTC's distribution channel. Due to subdued demand across all markets and regions, the pigment sector is experiencing a challenging quarters, which is putting pressure on volume and prices. With new customers placing orders, Sudarshan may see an increase in revenue in the coming quarters. However, EBITDA margins will depend on payment (fixed or variable) that Sudarshan has to make to BTC for providing distribution services
Impact: Neutral