Indian Petrochemicals seeks shareholders“ approval

Indian Petrochemicals Corp Ltd (IPCL) sought shareholder approval to sell its 50% stake in General Electric Plastic India Ltd, a joint venture with General Electric Plastics BV, Netherlands, a company…

Indian Petrochemicals Corp Ltd (IPCL) sought shareholder approval to sell its 50% stake in General Electric Plastic India Ltd, a joint venture with General Electric Plastics BV, Netherlands, a company official said at the beginning of February. IPCL will receive INR 490.3 million for its stake and the investment it had made in developing properties for the joint venture, the official said. General Electric Plastic India Ltd, set up in 1991, has a manufacturing unit in Baroda to make alloys, blends and composites of engineering thermoplastics. The company also has a state-of-the-art applications development centre in Gurgaon, on the outskirts of Delhi. The joint venture company was set up to tap the plastic products market in India and cater to countries in the Middle East and South Asia. IPCL“s investment in the joint venture was INR 410 million, including INR 250 million in the form of equity. IPCL decided to exit the joint venture after General Electric expressed fears about competitors gaining management control in the petrochemicals maker in which the government is selling 26% of the equity. State-run Indian Oil Corp., the country“s largest petrochemicals maker and the flagship of the Reliance Group, Reliance Industries Ltd., and detergent and soda ash maker Nirma Ltd were reported to be in the race for IPCL.