ICI India to divest Advanced Refinish (2K) Business

ICI India Ltd has announced that on February 20, 2007 the Company has signed a definitive agreement to divest a portion of its Auto Refinish Paints Business comprising Advanced Refinish (2K) to its technology partner for this segment, PPG Industries USA, for a consideration of about Rs 52 crores, subject to certain agreed adjustments.

The Company's 2K Business will be transferred as a going concern to Asian PPG Industries Ltd, an affiliate of the PPG Group in India, over the next few weeks. The Business has about 60 employees and had sales revenue of about Rs 50 crores in the financial year ended March 31, 2006.

This divestment, while securing the interests of its 2K customers, will enable the Company to focus on its aggressive growth strategy for its Decorative and Conventional Refinish segments.

Source : Equity Bulls

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