New Delhi, Mar 30 (UNI) ICI India Ltd has said its Board has approved selling its adhesives business as a going concern to an Indian affiliate of the Henkel Group for about Rs 260 crore.
Following Akzo Nobel NV ('AKzo') becoming the owner of 100 per cent of the share capital of ICI UK (announced in August 2007 and completed in early 2008), Akzo has finalised sale of its global adhesives and electronic materials ('Adhesives') business to Henkel AG, company said a statement.
The adhesives business of ICI India is closely integrated with the global adhesives business of the ICI Group.
Given the interdependency, the company said it believes it will be in the best interest of the shareholders, concerned, employees and customers that the India adhesives business is also divested to the Henkel Group.
ICT India had established its adhesives business in 1997.
The business has a manufacturing site at Thane and the net sales revenue (including Excise Duty) from the business in the financial year ended March 31, 2007 was Rs 135 crore.
ICI India had also acquired a 67 per cent stake in Polyinks Ltd, which has a manufacturing facility at Hyderabad and is in the process of setting up a new plant at Rudrapur, Uttarakhand state.
For the year ended March 31, 2007, Polyinks Ltd had a net sales turnover (including excise duty) of Rs 14 crore.
The business proposed to be transferred to the Henkel group will include its portion of Thane manufacturing facility and about 120 employees currently working with the business and the company's shareholding in its subsidiary Polyinks Ltd.
The transaction is likely to be completed in the second half of 2008, after obtaining the approval, of ICI India's shareholders through Postal Ballot and other statutory approvals.
UNI PBB MP SR HT1150