This is part of the deal between ICI plc and Givaudan, one of the global leaders in the flavours and fragrance business.
Givaudan said it agreed to buy ICI's Quest flavors and fragrance unit for $2.28 billion (£1.2 billion) to become the world's largest maker of scents used in perfume.
Quest, based in Naarden, The Netherlands, had sales of $1.1 billion (£560 million) last year and a trading profit of $98.7 million (£52 million). Givaudan, based in Geneva, said it would finance the acquisition by debt and by issuing up to $800 million (1 billion Swiss francs / €628 million) in new shares.
Quest India was established in 2001 as a joint venture between the ICI group and Hindustan Lever Ltd (HLL) with ICI India holding the controlling interest. ICI India acquired HLL's 49 per cent shareholding in May this year.
ICI India subsequently acquired the remaining 1 per cent of the share capital held by a group company of ICI plc making Quest India its wholly owned subsidiary. The total investment made by ICI India has invested a total of about Rs209 crore in Quest India.
Quest India, based in Mumbai and with manufacturing site in Daman, has about 100 employees in its payroll. The company reported net sales of Rs116 crore and a profit after tax of Rs7.8 crore for the year ended March 31, 2006.
Givaudan has expressed interest in purchase of Quest India also. Considering the heavy linkages on the international business and the nature of the customers and the market, the board has decided to divest the company's entire shareholding in its subsidiary Quest India to the said Givaudan group.
The transaction is expected to be completed before the end of the current financial year subject to the global deal happening within the same time-frame.