Akzo Nobel India Ltd, formerly ICI Ltd, has planned to set up a plant at Gwalior in Madhya Pradesh at a cost of about Rs 150 crore.
In a letter to the shareholders on Monday, Mr Amit Jain, MD, also said that Akzo Nobel proposed a share buyback programme via tender offer. The offer is for 13 lakh shares at Rs 920 a share.
This would represent 2.7 per cent post-merger share capital of the company.
As a result of the merger, “the company will be issuing additional share capital of Rs 11.10 crore to the shareholders of the transferor companies in accordance with the share swap ratio of the scheme (of amalgamation),” a company note said.
The company has set aside Rs 120 crore for the buyback, Mr Jain said. The stock of Akzo Nobel closed at Rs 863.25, down 1.81 per cent, on the BSE.
According to company spokesperson, it may take place “as early as in July, provided all regulatory approvals can be had within the expected time frame”.
The Gwalior plant would have a capacity of 50 million litres and is expected to be commissioned by the end of next year.
The proposed capacity addition would take the total capacity to 150 million litres, including the incoming multi-coatings factory at Bangalore. Gwalior unit would also take the number of operating units to six.
“The centrepiece of our growth strategy is the merger of three Indian subsidiaries of Akzo Nobel N.V. with our company, Akzo Nobel India. The assets and operations of Akzo Nobel Coatings India, Akzo Nobel Car Refinishes India and Akzo Nobel Chemicals (India) are now part of our company,” the MD said.
“Post-merger, we will operate with nine business lines and have access to several global brands. Now, we have the portfolio and geographic presence to enter markets which we could not access in the past,” he added.
Mr Jain mentioned that Akzo Nobel India's “global Colour centre” in Bangalore with 105 scientists was a great addition as it would allow offer more innovative colours and advanced products.
Posts Rs 78.24 cr net in Q4
Our New Delhi Bureau reports: Coating and chemical major Akzo Nobel India has reported Rs 78.24 crore as net profit for the quarter ended March 2012. Net sales for the quarter stood at Rs 933.63 crore.
The results are not comparable with the fiscal year 2010-11 due to merger of Akzo Nobel Car Refinishes India Private Ltd, Akzo Nobel Chemicals (India) Ltd, Akzo Nobel Coatings India Private Ltd with Akzo Nobel India Ltd, effective April1, 2011.
The company has also enhanced the dividend from Rs 18 a share to Rs 20 a share.