HLL sells nickel catalyst business to ICI for Rs 21 crore

Our Corporate Bureau

Mumbai, Nov 20: Hindustan Lever Ltd (HLL) on Tuesday announced the sale of its nickel catalyst business to ICI India Ltd for a consideration of Rs 21 crore on a “going concern basis”.

The non-core nickel catalyst business is a sub-unit of speciality chemicals division of HLL’s chemicals and agri operations. Given the large sales turnover of HLL — at Rs 10,604 crore in 2000 — nickel catalyst was a very minor business for the multinational which has a larger business interest in soaps, detergents, personal products, food and beverages.

A company press release said that ICI will take over the manufacturing facilities relating to nickel catalyst operations located as part of Taloja factory near Mumbai, alongwith the services of 17 related employees.

This transfer will result in a profit of around Rs 12.5 crore to HLL and will be concluded after completion of certain regulatory and other formalities by HLL and ICI India.

HLL believes this transfer of nickel catalyst operations, which has an annual turnover of Rs 20 crore, to ICI secures the future of this business and the related employees.

The company has been looking at divesting non-core businesses like mushrooms, leather, among others.

With effect from April 1, 2001, HLL transferred Quest Flavours and Fragrances — which belonged to the erstwhile Pond’s (India) Ltd — to a separate joint venture with the ICI group. HLL has a 49 per cent stake in this joint venture, while ICI holds 51 per cent.

The Quest division was engaged in the manufacture and sale of flavours, fragrances and food ingredients to various industrial customers with an annual turnover of Rs 95 crore. In 1997, Unilever group had taken a strategic decision to transfer its global speciality chemicals business carried by Quest International, National Starch, Crosfield and Unichema to ICI Group, UK.

In January this year, HLL sold 74 per cent in Goldmohur Foods & Feeds in a joint venture agreement with Godrej Agrovet.
Subsequently, in September, HLL offloaded the remaining 26 per
cent stake to Godrej Agrovet.