Business Overview
DIC Corporation of Japan is the largest printing ink and allied material manufacturer in World. The listed entity of the Company in India is DIC India.
The Indian Company is one of the largest in Indian printing, publishing and packaging segment. It serves major newspaper and magazines in India.It has research and development center in Kolkata and Noida. The registered office of the Company is in Kolkata.
Below are the products and services offered by the Company
- Printing Ink
- Lamination Adhesive
- Print Finish
- Innovative packaging solutions
- Chemical solution material
- High performance colorant and Engineering plastics
- Ancillary service
So Company have packaging solutions as well as printing ink solutions. Doritos, Original Gin or Vodka are some brand using packaging solution of the Company.
Stock Performance
Above is long term price performance chart of the Stock. The Stock has given close to four times return in last two decades approx which is not good. But at least it have positive returns to investors and have not destroyed wealth.
It has also not payed dividend regularly so investors can only make money from price appreciation. The price has corrected in past couple of years.
My Opinion
DIC India is part of largest printing ink Company in the World. Printing Ink has wide range of uses. But most wide spread usage is Newspaper and Magazines.
With ever increasing digital content and digital content consumption the market size of Newspaper and Magazines are contracting with time. So Printing ink the main business area of Company can not be treated as growth area as per my opinion.
Along with Printing Ink it has presence in packaging materials. Packaging section is growing segment due to increase in FMCG brands and need to wrap those items. This area will proper future growth of the Company. It is interesting to see how well Company performs in this segment in years to come.
As of now I will not be tracking this Company as it will go through transition from Printing Ink to other futuristic business.