Ciba's sell-off leads to uncertain future of Indian arm
30 Mar '06
1 min read
Chemical giant Huntsman is to purchase Swiss company Ciba's textile chemicals business and this has created confusion about its implication on Ciba's Indian subsidiary.
As per sources, Huntsman agreed to acquire the textile chemical business of Ciba for $253 million.
This subsidiary's textile division gets almost one-third of revenue from chemical division and its global sell-off could negatively affect its revenues.
Company's textiles, chemicals and dyes sales were Rs184.5 crore in financial year 2005.
Major topline and bottmline problems would occur if Indian textile chemical business would be sold off.
Ciba Speciality Chemicals was formed when the chemicals division of Hindustan Ciba-Geigy was hived off in 1996.
It has two manufacturing facilities in India located at Santa Monica in Goa and Ankleshwar in Gujarat, also double up as global sourcing bases for Ciba.
Globally, textile Ciba's chemical business employs 4500 with 900 support staff and generates $1 billion revenue.
According to the deal, Huntsman will absorb all the staff whereas top management will undergo changes.
Current Managing Director and Executive Chairman of the Indian arm, Jimmy Bilimoria, will be redesignated as Executive Chairman till the end of '06.
marketing@alchempro.com
