According to the MNC's official spokesperson in India, "Globally, the textile dyes and pigments divisions have been merged under a new division, Colours. In India, the restructuring of the division is in progress and will be done in due course of time. Accordingly, we expect all personnel to be retained in the new division or in other group companies."

Ciba had, with effect from May 1, 1998, discontinued its local distribution and marketing activities for pigments . The Rs 20-crore pigments business was, since, being handled by a 51:49 venture with IDI, Pigment Specialities India. Similarly, the Swiss giant's textile-dyes' distribution and marketing operationshad been discontinued, effective September 1, 1997 and was being handled through a joint-venture, Indo Swiss Textile Chemicals. Indo Swiss was originally held 21 per cent by the Swiss company's 100 per cent arm, Ciba India, 30 per cent by Ciba Specialty Chemicals India and 49 per cent by IDI and its associate companies. Subsequently, Ciba Specialty Chemicals India acquired 20 per cent equity from Ciba India in the venture.

Analysts say the revamp, besides necessitating significant changes on the manpower front could, possibly, force a broader change in the direction of these business segments. "It is unclear whether this changed thrust could also be accompanied by other changes in the equity structure of the company's joint ventures," an analyst said.

Ciba's official spokesperson, however, maintained that "there will not be any dilution in IDI's holdings at present."

Globally, the formation of Ciba's Colours' division has opened up a broader global market estimated at Swiss Franc 25 billion, besidesenhancing potential for synergy on the research and development front. Financial results for 1998, however, indicated that the Colours unit had seen a 6 per cent decline in sales in Swiss Francs and 2 per cent in local currencies to Swiss Franc 2.34 billion.

Former Glaxo director on Ciba board

Former Glaxo director and Kodak India chief Humayun Dhanrajgir has been inducted onto the Ciba Specialty Chemicals (India) board as director, with effect from March 26, 1999.

The appointment comes alongside the exit of chairman MN Karani and former managing partner of Arthur Andersen & Co and chief of Ambit Corporate Finance, Ashok Wadhwa, from the company's eight-member board. Karani had earlier held the post of chairman at Hindustan Ciba-Geigy before its merger with Sandoz.