ICI India to sell entire stake in Quest
Paints and chemicals firm ICI India Ltd, a subsidiary of UK’s ICI Plc, has announced its plans to sell its entire stake in its wholly owned subsidiary Quest International India Ltd (Quest India) for not less than Rs 390 crore to Switzerland’s Givaudan Group.
The company’s board of directors, at its meeting on Wednesday, approved the sale of its entire stake in Quest India — its flavours and fragrances business — to Givaudan Group, for a total consideration of not less than Rs 390 crore, ICI India informed the Bombay Stock Exchange (BSE).
The announcement followed news that ICI Plc had agreed to sell Netherlands-based Quest International B.V. to Givaudan for $ 2.25 billion (around Rs 9,900 crore).
ICI India said in a statement that "ICI Plc has, after due evaluation, agreed to accept the offer for sale of Quest International business received by them very recently from the Givaudan Group, who has expressed interest in purchase of Quest India also. Considering the heavy linkages on the international business and the nature of the customers and the market, the board has decided to divest the company’s entire shareholding in its subsidiary Quest lndia to the said Givaudan Group." The Indian transaction is expected to be completed before the end of the financial year, subject to the global deal happening within the same timeframe, it said.
ICI India has controlling interest in Quest India, which was established in 2001 as a joint venture between the ICI Group and Hindustan Lever Ltd (HLL).
As per the joint venture agreement, ICI India acquired HLL’s 49 per cent shareholding in May this year and subsequently acquired the remaining one per cent of the share capital held by a group company of ICI Plc. Consequently, Quest India became a wholly owned subsidiary of ICI India.
Quest India reported net sales of Rs 116 crore and a net profit of Rs 7.8 crore for the financial year ended March 31. The company is headquartered in Mumbai and has its manufacturing sites in Daman with about 100 employees on its rolls. Shares of ICI India were up seven per cent at Rs 372.10 on BSE on Wednesday.
ICI has been carrying out a restructuring exercise wherein it will exit from non-core areas and focus on growing the core ones both organically and inorganically. As a step in this direction, ICI India, in June this year, announced the sale of the company’s Uniqema business to UK-based Croda Group for around Rs 260 crore.
