Ion Exchange, which markets Zero-B water purifier, has decided to sell its 60 per cent stake in the French subsidiary, SNF Ion Exchange, to SNF-Floerger of France for a consideration of $1.8 million.
In a notice to the Bombay Stock Exchange, the company has informed that it has entered into a memorandum of understanding with SNF-Floerger to sell 1.5 million shares, representing 60 per cent holding in the subsidiary, subject to necessary approvals.
SNF Ion Exchange supplies polymers used in oil drilling, iron ore pelletisation and textile manufacturing. The company has made a net profit of Rs 1.07 crore during the last fiscal compared with Rs 92.47 lakh during the previous fiscal, while its turnover rose to Rs 13.18 crore (Rs 11.41 crore).
Ion Exchange is having presence in chemicals, consumer products, projects, standard systems and waste-water recycling.
The company has posted a net loss of Rs 4.68 crore during the last fiscal compared with a net loss of Rs 5.10 crore in the previous fiscal.
According to the company, it expects turnaround in this fiscal considering the performance improvement measures and business strategies initiated over the last two years.
While the chemicals, customer services and standard systems divisions of the company have shown profits, waste water and export businesses have suffered losses during the last fiscal.
In June 2000, Ion Exchange had merged its wholly owned subsidiary, Ion Exchange Speciality Chemicals, with itself. The subsidiary, which was previously a joint venture between the US-based WR Grace & Co and Ion Exchange, had become a wholly owned subsidiary of Ion Exchange after WR Grace in 1998 sold its 51 per cent stake in the venture.
