The Hindu Business Line : ICI to complete revamp exercise by end-fiscal

This involves exiting completely from the explosives venture, and divesting its rubber chemicals and nitro cellulose businesses, according to company officials.

Mr Rajiv Jain, Managing Director, ICI India Ltd, told a press conference here today that discussions were on with various companies for selling the rubber chemicals and nitro cellulose businesses, whose turnover would be in the region of Rs 80 crore each.

He said the form of divesting was also being discussed — either as a joint venture or through a complete sell-off.

He said that ICI would also complete the sale of its stake in Indian Explosives Ltd, a joint venture, to Orica of Australia. The entire sale proceeds would bring in Rs 166 crore to ICI.

The restructuring exercise, he said, was part of ICI's efforts to concentrate on its four main areas of business — paints, Quest (flavours and fragrances), National Starch and Uniqema (specialty chemicals). ICI's turnover at the end of this year was expected to be Rs 600 crore, which would represent 10-15 per cent growth over the previous year on a like-to-like basis (after taking into account the sale of different businesses). Hindustan Lever Ltd, which had a 49 per cent stake in Quest, was expected to sell its holding over a period of time, he said.

Asked if ICI India's parent, ICI plc of the UK, planned to increase its stake in the Indian company, Mr Jain said the Government of India held a 10 per cent stake in the company and the parent was open to buying this as and when the Centre decided to sell its stake.

However, he added that no discussions had taken place on this.

Mr Jain said that the paints market was witnessing double-digit growth for the last couple of years and this growth was expected to sustain.

In particular, the decorative paints market was expected to grow at 10-11 per cent per annum for the next few years and ICI would grow at almost double this rate.

The paint industry in the country is estimated at about Rs 6,000 crore of which the decorative paints segment accounts for 70 per cent and the balance industrial paints.

Mr Jain said that ICI would come out with a new product every quarter for the next four quarters.

The company would also come out with a rewards programme, akin to the frequent flier programme of airlines, for painters and contractors who buy its paint. It would also train painters and contractors in the ideal mix of paints.

ICI launched Dulux Supergloss 5-in-1 paint, a super lasting paint for wood and metal.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Escorts puts off annual meet

Hind Sanitaryware shelves jt venture plans with German co

Siemens to supply gas turbines to Konaseema

KEC International gets new orders worth Rs 115 cr

Parryware to set up electronic flushing urinals in schools

Asahi India Glass clarifies

Shasun's pref allotment gets shareholders' nod

BILT to raise $75 m through GDR, FCCBs

On building lasting institutions

Marc Faber bullish on Asia — But bearish on US market