Paints major ICI India is planning to sell its adhesives business to an Indian affiliate of the Henkel Group of Germany. The proposal is subject to shareholders' and other approvals. The total consideration to be received for this sale will be about Rs 260 crore, subject to agreed adjustments for actual working capital and cash balances, a company release said.Following Akzo Nobel NV ('AKzo') becoming the owner of 100% of the share capital of ICI UK, Akzo has finalised sale of ICI's global adhesives and electronic materials ('adhesives') business to Henkel AG. The adhesives business of ICI India is closely integrated with the global adhesives business of the ICI Group.ICI India has a manufacturing site at Thane for the adhesives business and the net sales revenue (including excise duty) from the business in the financial year ended March 31, 2007 was Rs 135 crore.ICI India had also acquired a 67% stake in Polyinks, which has a manufacturing facility at Hyderabad and is in the process of setting up a new plant at Rudrapur, Uttarakhand state.The business proposed to be transferred to the Henkel group will include its portion of Thane manufacturing facility and about 120 employees currently working with the business and the company's shareholding in its subsidiary Polyinks Ltd. The transaction is likely to be completed in the second half of 2008, after obtaining the approval, of ICI India's shareholders through postal ballot and other statutory approvals as may be required.
