Paints major ICI India Ltd is targeting a revenue growth of 20% in 2007-08. Paints sales are expected to grow at the rate of 22% in both the decorative and refinish segments, with the industry growing at an average of 18%.
With Rs 780 crore of surplus cash in hand, the company has set aside Rs 211 crore for the buyback of shares at a price not exceeding Rs 575 per share from minority shareholders. The members earlier approved the buyback proposal through postal ballot.
ICI sold the advanced refinish (2K) and Uniqema businesses last year. It registered a net income of Rs 446.1 crore in 2006-07, consisting mainly of profit from the sale of its advanced refinish business, stake in Uniqema and shareholding in Quest International India Ltd. The proposed dividend payout for the fiscal was Rs 129 crore.
On the sidelines of the company’s annual general meeting, Rajiv Jain, managing director of the company, told reporters, “We will sustain the growth in the paints and starch sections of our business through a series of measures.”
Though the company does not have any plan for a greenfield project, it is looking at acquisition in the decorative segment.
“We are also introducing a range of products,” Jain said. ICI launched Exterior primer and Exterior alkali bloc last year. It has also added Dulux Light & Space and bases for deeper shades to its portfolio.
Total income in 2006-07 was Rs 954 crore, much above the previous year’s Rs 908 crore.
Net profit after taxation for the quarter to June 30 was Rs 22.88 crore (Rs 18.16 crore). Total income was Rs 239.87 crore (Rs 236.72 crore).