Voltas Snaps Agency Pact To Sell Nicholas Products

Voltas, the diversified Tata group company, has discontinued its agency arrangement with Nicholas Piramal for the distribution of vitamins and veterinary products.

However, the company, in order to make good the loss arising from the termination of the arrangement, has entered into an alliance with two other multinationals in the area of pesticides, glass and plastic films.

A senior Voltas executive said, "We will be distributing the products of the Malaysia-based Uniko and Thailand's Quality Minerals in India. We are also negotiating with some more companies to secure additional agency lines."

The chemicals division of Voltas is engaged in the trading business and its strength lies in importing, indenting and distributing pharmaceutical, industrial, specialty and perfumery chemicals, bulk drugs, vitamin premixes, commodity and engineering plastics.

However, as a growth-oriented strategy, the division intends to expand its revenue base aggressively in the export market. This follows the recent merger of Voltas International with the company.

Another company official said, "The export of chemicals hitherto carried out under the umbrella of Voltas International is directly being pursed by the company and is expected to yield better synergies in exploring new markets."

According to the company, the chemicals trading activities was satisfactory in 2000-01 but continues to pass through difficult times. Voltas is also looking at developing the market for the sale of palm oil chemicals such as glycerine, stearic acid and lauric acid.

The division has established itself as a key supplier to the paint, toothpaste, personal care, adhesive and polymer industries.

Some of the international companies with which Voltas has a tie-up for sourcing products are Aqualon, Hercules and Ashley Polymers from the US, Tioxide of UK, Turay of Japan, and Ausimont SpA of Italy.

Voltas clientele include Hindustan Lever, Colgate-Palmolive, Snowcem and Asian Paints among others.