In a review statement forming part of the latest Colour-Chem annual report, Handte says that the two entities are jointly "identifying areas of synergic and opportunities to streamline operations, reduce costs and realise savings with a view to enhancing shareholder value in both companies".

Colour-Chem is also in the process of transferring erstwhile parent company, Hoechst AG's 50.1 per cent holding to Clariant International.

Handte also said the company's decision to "exit the textile dyes business in favour of DyStar India Ltd has proved to be a sound one." The company has been able to focus on other more profitable specialty chemical areas and adequately compensate the loss of turnover and safeguard its profitability, the statement adds.

Colour Chem's turnoverduring 1997-98 (including excise duty) stood at Rs 372.86 crore. The value of turnover, net of excise duty, was Rs 336.30 crore, registering an increase of 14 per cent over the previous year, despite the assignment and transfer of the textile dyes business to DyStar India Ltd with effect from September 1, 1997.