• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Neha Kaushik

New Delhi , Aug. 8

PAINTS company ICI India Ltd is mulling the possibility of buying Hindustan Lever Ltd's (HLL) 49 per cent stake in Quest International, a 51:49 joint venture between ICI and HLL.

According to Mr M.R. Rajaram, CFO, ICI India, the company has the right to purchase the remaining share in Quest, a fragrances and flavours firm, next April.

The joint venture arrangement between ICI and HLL is for a period of five years (which expires in March 2006), after which ICI has the right to buy the remaining shareholding in Quest.

"Strategically, it makes sense for us to purchase the balance shareholding as flavours and fragrances are core business areas for us," Mr Rajaram said.

Analysts point out that HLL has been exiting from its non-core businesses, and an exit from this segment too may be in line with that strategy.

Meanwhile, ICI is working on a growth plan for Quest, a Rs 100-crore company.

"Sales are being driven by the flavours business and exports. In fact, at present, exports are at over Rs 40 crore and we are evaluating the possibility of setting up an exports-oriented-unit as well. We are also focusing on widening Quest's customer base," he said.

Last year, ICI India had sold Quest's food ingredients business to Kerry.

This was post the global sell-off of ICI Plc's food ingredients business to the Western Europe-based Kerry Group. "This did not impact us much as the foods ingredients business was very small, in the region of about Rs 4-5 crore," he said.

ICI India is also looking to widen its portfolio and introduce products in the areas of paints, adhesives, surfactants and starch.

The company may also take the inorganic path to growing its core businesses and is looking at acquisitions in these segments.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
BEML to come out with public issue

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line