Ban On Expansion Rankles Ici Pharma Division Bidders

Prospective bidders for ICI India's pharmaceutical division have expressed apprehension over the possibility of further expansion at the plant as it may fail to secure government approval, sources familiar with the bidding process said.

ICI's pharma division, located at Ennore near Chennai, lies within 500 metres of the sea and is bound by the coastal regulation act which prevents further expansion towards the sea.

Senior officials from the bidding companies said that ICI India had informed them of the issue during the presentations and had said it will be up to the bidders to secure fresh approval.

Sources said the plant was dated and so, these factors were being considered by the bidding companies while determining the value of the plant. However, most of the products are original ICI research products.

Among the bidders for ICI's pharmaceutical division are US Vitamins, Pharmacia India and Astra Zeneca. Daljit Singh, executive director, ICI India said it will be "inappropriate" for him to comment on the issue.

The UK-based ICI Plc has a 51 per cent stake in ICI India, which is primarily into paints and chemicals. The company is looking to get out of pharmaceuticals as it has remained a peripheral business.

Analysts have said that the pharmaceuticals division accounts for 6 per cent of ICI India's sales.

The therapeutic segments which ICI operates are in the cardiovascular, anesthetics and antiseptics. Key brands include Tenormin used for treatment of blood pressure, tenoclor, Tetmosol for skin diseases, Nolvadex for breast cancer and Aerrane in the anaesthetic segment.

The pharmaceuticals business has remained a part of ICI India's portfolio even after the worldwide split of ICI Plc in the early 1990s, when the drugs business in most countries had been transferred to Zeneca Plc, and then AstraZeneca Plc.