ICI Ltd recently sold its 50% stake in Berger Auto & Industrial Coatings Ltd. to Berger, its joint venture partner in the company. “This is in line with the company“s strategy to stick to its core bu…
ICI Ltd recently sold its 50% stake in Berger Auto & Industrial Coatings Ltd. to Berger, its joint venture partner in the company. “This is in line with the company“s strategy to stick to its core business,” ICI sources said adding: “At the same time, it is a core business for Berger.” It could not be ascertained how much money ICI has received from Berger for bowing out of the joint venture company. However, sources said that the amount is not large as the company“s itself is not very large. “It has a turnover of just INR 250-300 million,” sources said. After the stake sale, all the three ICI nominees on the board of directors of Berger Auto & Industrial Coatings Ltd have resigned. Even before ICI“s exit, Berger had a majority on the board including the decisive casting vote. The company was being run by Berger. The Berger Auto & Industrial Coatings Ltd. plant is located at Rishra near Kolkata. Berger Auto & Industrial Coatings Ltd. was earlier a division of ICI Ltd. It was subsequently spun off as a 50:50 joint venture with Berger. This divestment comes close on the heels of ICI selling off its pharmaceuticals business. This is in response to ICI Plc, the Indian company“s parent, identifying four areas of core competence: decorative paints, catalysts for fertilisers and refineries, adhesives & starch and flavours and fragrances. ICI, however, had nine business divisions in the country – paints (decorative, motor & industrial as well as refinished), explosives, polyurethanes, adhesives & starch, nitrocellulose, rubber chemicals, pharmaceuticals, catalysts and acrylics. ICI India“s explosives division was transferred to Indian Explosives Ltd, where ICI India holds a 51% stake. The balance is with Orica.