company, towards this end, will focus only on four business
segments paints, industrial starch, speciality
chemicals, and flavours and fragrances through
Quest Flavours and Fragrances.
India will exit from explosives, nitro-cellulose and rubber
chemicals business lines. "We are negotiating with
various parties to sell the rubber chemicals and nitro-cellulose
businesses," says ICI India managing director Rajiv
India has agreed to divest the balance 51-per cent in
Indian Explosives to Orica Investment, Australia. Sometime
back the company sold the 49-per cent stake to the Australian
company. The total sale deal works out to Rs 166 crore.
For the past
couple of years ICI India has been in news for exiting
and buying businesses. ICI India sold its pharmaceutical
division to Nicholas Piramal India, the 50-per cent stake
in Berger Auto & Industrial Coating to the joint venture
partner Berger Paints India, the polyurethanes business
to the Huntsman group, USA, and the catalysts business
to the Johnson Matthey group, UK.
were not successful in bringing in new technology,"
reasons Jain for exiting different business segments.
The company bought a majority share in Quest International
India, a joint venture with Hindustan Lever. "Negotiations
are on to buy out Hindustan Lever''s balance stake."
to Jain, ICI plc is open to acquire the 10-per cent stake
held by the Indian government in ICI India. With a cash
kitty of around Rs 300 crore raised from the sale of business,
Jain is seeking acquisitions that will fit the company''s
new business plan.
to achieve a turnover of Rs 600 crore this fiscal, Jain
is betting heavily on the decorative paints segment. ICI
India ranks fourth in this segment after Asian Paints,
Goodlass Nerolac and Berger Paints.
decorative paints market is estimated to be in the region
of Rs 4,200 crore. After the success of its washable emulsion
paint, ICI India has now launched a 5-in-1 enamel paint
for wood and metal surfaces.
are the fastest growing company in this segment while
leaders in the repainting business," Jain says. In
the refinish segment, ICI India is a dominant player,
particularly in the auto sector.