Innovate or Dye: How Matex International Innovates for Sustainability

Public-listed Matex International Ltd, a Singapore-based specialty chemicals and dye manufacturer, was committed to spending up to 10% of its revenue on research and development (R&D), particularly in the area of developing cutting-edge dyes and dyeing processes that were more environmentally-friendly. This was in spite of the increasingly competitive macroeconomic environment and the long-term need to improve shareholder value. Matex Executive Director Dro Tan elaborated on how open innovation was a key part of the firm's corporate DNA. Moreover, innovation was not only a central component of Matex's unique selling proposition, but also its competitive strategy. Dro further shared that the company's R&D agenda was influenced by its clients' needs. It was also highlighted that the timing to launch a new product was very much determined by market conditions, and governments and the legislation they passed were a key driver. For instance, Matex's latest product Megapro ECO®, a revolutionary dye that did not require the use of any salt, would not have gained impetus for its launch, had it not been for the stricter environmental laws that were enacted by China, the world's largest textile export market, in 2015. The case examines how innovation is actually a process, and explores the way Matex weaved sustainability into its overall strategy using innovation as a vehicle.

• Family businesses
• Strategy
• Environmental sustainability
• Innovation
• Government policy and regulation