ICI India said on Wednesday that it has completed most of its restructuring by divesting non-core businesses and is now looking for acquisitions in segments like paints and speciality chemicals.
The company, which has already divested pharmaceutical business along with fertiliser, explosives and polyester fibre during the current fiscal, says it is cash rich and debt free - ideal combinations for making acquisitions.
"We have almost completed restructuring by getting out of all non-core businesses like pharma, explosives, fertiliser and polyester fibre. These divestments have brought in cash; we have between Rs 200-300 crore (Rs 2-3 billion) cash surplus and the company is now ready for growth via acquisitions," managing director Rajiv Jain told PTI in New Delhi.
The company has identified four core businesses for the future: paints, fragrances and flavours, hot metal adhesives and polymers and speciality chemicals.
Jain said the company, which is a 51 per cent subsidiary of the British parent ICI Plc, has aligned itself fully with the global strategic business units by focusing only on these four core businesses and will make acquisitions in these segments only.
"In each of our core businesses we are ahead of the industry growth rate.. we want to acquire companies in India to further these growth plans," Jain said.
Asked whether ICI Plc had any plans to divest stake in Indian operations, Jain replied in the negative saying the British company had long-term interests in the Indian market.
On whether Asian Paints, which bought government's nine per cent stake in ICI India last year, had increased its holding in the company further, Jain said, "Asian Paints bought about nine per cent stake from the government itself. They have not said anything on increasing stake in ICI India further."
He said as on date, promoters i.e. ICI Plc hold 51 per cent stake in the Indian company, followed by about 25 per cent equity resting with mutual funds and banks. About nine per cent is with Asian Paints whereas the remaining stake is held by the public.
Jain said the company's turnaround was done with a view to be present "in more consumer facing businesses" and that objective has been achieved.
