Pidilite Industries, the leading adhesive maker, has dropped its plans to set up a subsidiary in Mauritius for its pigments business.
The move follows a recast plan drawn up by the company that has now identified the pigments business as a non-core operation.
The company is at present exploring opportunities to set up subsidiaries in the neighbouring countries and in Europe to enhance distribution of its core operations of adhesives, sealants and art material.
Speaking to Business Standard, managing director MB Parekh said, "We are in the process of expanding our base in the neighbouring countries, Europe and the Middle East. For this purpose we are looking at setting up overseas subsidiaries that would facilitate distribution, as well as a vehicle for quick acquisitions in these countries."
Parekh said the subsidiaries would either be a direct subsidiary of Pidilite or a separate overseas arm altogether that would only handles overseas businesses. "The decision on the nature of the overseas company has yet to be taken soon," he added.
"Previously, the pigment business was one our prime focus, and the Mauritius unit was envisaged to facilitate the distribution and storage of pigment. But now that the pigment business has been identified as non-core, we have dropped our plans to go ahead with it," Parekh said.
Pidilite has also decided to hive off its industrial specialty chemicals business into a joint venture. The company has been scouting for a strategic partner for some time now but has been unable to identify one.
The industrial specialty chemicals business comprises two segment, namely the emulsion polymer and the pigment division. The company wants to divest its pigment business on a priority basis.
The company is in the process of combining its construction chemicals and paint chemicals business under one division. Pidilite has sharpened its focus on the non-furniture or the bazaar segment and is enhancing its product portfolio under this segment.
Furniture glues continue to be the company's core business. Besides, new products under the recently acquired Ranipal brand, the fabric care category as well as the M-Seal brand, the sealant category, is being worked out.
