AKZO NOBEL INDIA LIMITED

Akzo Nobel India Limited was erstwhile incorporated as 'Indian Explosives Limited' on March 12, 1954, which changed to 'Akzo Nobel India Limited' in February 2010. The Company is engaged in the business of manufacturing, trading and selling of paints and related products. It also provides research and development services to its holding company and other group companies. The Company is presently into Coatings business. The Coatings business has two main components: Decorative Paints and Performance Coatings and is served by both organised and unorganised sectors. The company sells decorative paint under the well-known brand Dulux. Akzo Nobel India is a subsidiary of Akzo Nobel N.V., a Dutch multinational company. The Company's manufacturing activities in India commenced in 1939 with the setting up of Alkali and Chemical Corporation of India Ltd in Rishra, West Bengal. In the year 1954, as the result of an agreement with the Government of India, they set up Indian Explosives Ltd in Gomia. Chemical and Fibres of India Ltd came up in Thane in 1963, manufacturing polyester staple fibre. The Company began their fertilizer manufacturing operations in Panki near Kanpur in the year 1969. This was the largest private sector investment in fertilizers in India. The company established ICI Research and Technology Centre in Thane in the year 1976 and a Crop Protection Chemicals and Pharmaceuticals unit came up in Ennore, near Chennai in 1978. In the year 1984, the ICI Group Companies in India were merged into one corporate which is India's largest mergers of that time. In the year 1987, Nalco Chemicals India Ltd was formed with Nalco Chemical Company USA and ICI India Ltd, each holding 40% of the equity. In the year 1993, the company divested their seeds, fibers and fertilizers businesses and in the year 1995, agrochemicals business was transferred to a joint venture company with Zeneca Ltd of UK. In the year 1996, the company established a joint venture with The Ensign-Bickford Company of USA namely, Initiating Explosives Systems India Ltd for the manufacture of Initiating Explosives Systems. In the year 1997, the company commissioned paint plant and polyurethanes systems house in Thane. They also commissioned the Uniqema Innovation Centre at Thane. In the year 1998, the company exited from their joint ventures with Nalco Chemical Company, USA and Zeneca, UK, as part of their continuing restructuring exercise. In March 1998, the company commissioned the new state-of-art 20 million litres per annum automotive refinish and decorative paint manufacturing facility at Mohali near Chandigarh.During the year 1998-99, one of the company's division, Pharmaceuticals divested some Animal Health brands to focus more strongly on their core areas of Cardiovasculars and Anaesthetics. In September 1999, the explosives business was transferred to Indian Explosives Ltd, a joint venture between the company and Orica Investments Pty Ltd, Australia.During the year 2000-01, the Polyurethane business was sold to the Huntsman Group of USA in line with their strategic objective. The company in association with Quest International and Hindustan Lever Ltd formed a joint venture to make and sell fragrances, flavours and food ingredients. In May 2001, the company transferred the Motors and Industrial Paints business to a Joint Venture with Berger Paints India Ltd, from which they exited in the year 2002. In the year 2002, the Pharmaceuticals business of the company was divested to Nicholas Piramal India Ltd and catalyst business divested to Johnson Matthey Group. The company divested their 51% shareholding in Indian Explosives Ltd and thus Indian Explosives Ltd and Initiating Explosives System India Ltd ceased to be the company's subsidiaries with effect from November 6, 2003. During the year 2003-04, the company launched Duette, a premium interior emulsion paint with a two-tone finish in select market. In March 2004, the Nitrocellulose and Trading businesses were divested to Nitrex Chemicals India Pvt Ltd in which the company holds a minority stake. During the year 2004-05, the company launched two premium products namely WaterShield Max and Tile Shield in the paint segment. Also, they commissioned a new polymer plant during the year. In December 2005, the Rubber Chemicals business was transferred to a subsidiary of PMC Group International, USA. The company acquired the remaining shares in their subsidiary Quest International India Ltd in two lots from the other shareholders, making it a wholly owned subsidiary company since October 2006. In November 2006, they sold their 100% equity shareholding in Quest International Ltd to Givaudan (India) Pvt Ltd. In December 2006, the company acquired controlling interest in Polyinks Ltd, Hyderabad, which manufactures Hot Melt Adhesives. In March 2007, the Advanced Refinish Paints Business (2K) was divested to an affiliate of PPG Industries, USA. Also, Uniqema business was divested to Croda Group of UK during the financial year. During the year 2007-08, the company launched low cost Acrylic Distemper, Primer and Putty in the pain segment. They entered into a contract with Henkel CAC Pvt Ltd, an affiliate of the Henkel Group, to divest their Adhesives business. AkzoNobel NV, Netherlands has become the owner of the entire equity capital of Imperial Chemical Industries, UK with effect from January 2, 2008, through a scheme of arrangement. Consequently, the company became an AkzoNobel company. On 4 October 2010, Akzo Nobel India announced that it has signed an agreement with M/s Corn Products International, Inc., U.S.A., (CPI) to divest its National Starch (Specialty Starches) business to an Indian affiliate of CPI. The consideration agreed is Rs 12 crore subject to adjustment towards working capital and related provisions. The Specialty Starches Business is essentially a trading operation having close linkage with the National Starch business of AkzoNobel Group for its supplies. Consequent to CPI acquiring the National Starch business of AkzoNobel Group at a global level, the divestment in India is intended to protect the value for Akzo Nobel India's shareholders. The Specialty Starches Business had an annual turnover of approximately Rs 10 crore in the year ended 31 March 2010. The Board of Directors of Akzo Nobel India at its meeting held on 21 October 2011 approved a scheme arrangement (the scheme) involving amalgamation of Akzo Nobel Coatings India Private Ltd., Akzo Nobel Car Refinishes India Private Ltd. and Akzo Nobel Chemicals (India) Ltd. with Akzo Nobel India, subject to necessary statutory and other approvals. The appointed date as per the above scheme would be 1 April 2011. The combined net sales of the companies proposed to be merged with Akzo Nobel India, as per the audited accounts for the year ended 31 March 2011, was Rs 568.4 crore and PAT was Rs 24.7 crore. The Board of Directors of Akzo Nobel India at its meeting held on 14 February 2012 approved a reduction of 1% in the effective royalty rates payable to parent AkzoNobel group from a level of approximately 3% approved earlier with effect from October 2014. As announced earlier, upto September 2014, the rate of royalty applicable will remain unchanged at approximately 1% of net sales. The Board of Directors of Akzo Nobel India at its meeting held on 21 May 2012 approved a buyback through tender offer of approximately 13 lakh equity shares from the minority shareholders at a price of Rs 920 per equity share, payable in cash, up to an aggregate amount of Rs 119.6 crore.On 1 July 2013, Akzo Nobel India Ltd announced that the company has entered into an agreement with ACI Formulations Limited, Bangladesh for distribution of its decorative paints products in Bangladesh. On 28 October 2013, Akzo Nobel India formally inaugurated its Rs 140 crore decorative paints plant at Gwalior, Madhya Pradesh which will have an annual capacity of 55 million liters. The new plant will supply a range of decorative paints, and create improved distribution channels for the popular Dulux brand. The new plant will also help speed up transportation time and reduce the cost of logistics. On 3 July 2014, Akzo Nobel India announced that it has formally inaugurated a new laboratory facility at its Thane site on 2 July 2014. This Lab has been established at a cost of about Rs 1.3 crore and will primarily focus on catering to the needs of agrochemicals sector in India. At the time of announcement of the company's financial performance for the quarter ended 30 June 2016, the Board of Directors of Akzo Nobel India Limited at its meeting held on 12 August 2016 approved the setting up of a powder coating manufacturing facility in Mumbai, with an installed capacity of 7,000 tons. On 29 August 2016, Akzo Nobel India announced ground breaking ceremony for its new powder coatings plant in Mumbai. The investment of ?9 million (Rs 63.5 crore) in the new unit will allow the company to increase capacity in the region, which forms an important part of its organic growth plans. The new facility will complement the company's existing plant in Bangalore, which is focused on supplying the south and east of the country. The Mumbai factory will also produce several lines new to the Indian market, including bonded metallic powders and localized products for markets such as pipe and re-bar coatings. On 15 December 2016, Akzo Nobel India announced that the company has acquired the industrial coatings business of BASF India Limited for a consideration of Rs 11.17 crore. On 26 December 2016, Akzo Nobel India inaugurated the first-of-its-kind specialty coatings production facility and colour laboratory in Noida, Uttar Pradesh to service its customers in the consumer electronics, automobile and cosmetic industries. With an investment of euro 0.4 million (Rs 3 crore), the new site will manufacture 600 kl of coatings annually. The Board of Directors of Akzo Nobel India Limited at its meeting held on 7 November 2017 recommended the sale of company's Specialty Chemicals Business as a going concern to an affiliate of the AkzoNobel Group, subject to the approval of the shareholders. The total consideration to be received from this sale will be Rs 320 crore, subject to adjustment for working capital and for an economic effective date of 1 January 2018. The Specialty Chemicals Business includes the Mahad manufacturing facility for Polymer Chemistry range of products (which was merged with the company in 2012 at an implied Enterprise Value of Rs 96 crore). The Business also handles a trading portfolio in Polymer and Surface Chemistry products sourced from other units of AkzoNobel. About 80 employees, currently working with the Business, will also transfer with the Business. At the global level, Akzo Nobel NV announced in April 2017 its intention to separate its Specialty Chemicals Business from its Paints and Coatings Business to create two focused and separate businesses. The Specialty Chemicals Business of Akzo Nobel India Limited is closely integrated with the global Specialty Chemicals Business of AkzoNobel. Given this interdependency, the Board of Directors Akzo Nobel India decided that it will be in the best interest of the shareholders, concerned employees and customers that the India Specialty Chemicals Business is also divested to the Specialty Chemicals global entity or its affiliate. On 2 April 2018, Akzo Nobel India announced that the divestment of the company's Specialty Chemicals Business to Akzo Nobel Chemicals India Private Limited was completed with effect from close of business on 31 March 2018. On 15 February 2018, Akzo Nobel India inaugurated its powder coating facility with an investment of Rs 65 crore at Thane, Mumbai. This is Akzo Nobel's sixth facility in India. The new facility will complement Akzo Noble's existing plant in Bangalore, adding new product lines in bonded metallic power and pipe and re-bar coatings. The Board of Directors of Akzo Nobel India Limited at its meeting held on 6 April 2018 recommended for approval by the shareholders, through postal ballot, a proposal to buy back its own shares by the company from the public shareholders through tender offer route. The company intends to buyback a maximum 11.2 lakh shares at Rs 2,100 per share. The total buyback size works out to Rs 235.20 crore. In 2019, the Company introduced Dulux Weathershield Max - next generation protection for home exteriors against recurring cracks, dampness and fungus formation caused by rain. It launched the Dulux Colour Play Tester, a handy paint sampler integrated with an easy-to-use mini roller. Dulux India introduced two revolutionary products in its professional range, Dulux Professional Weathershield TR E2000 and Dulux Professional Weathershield Creation Stonetex. It introduced a camouflage finish, namely Flexikote SP600, in the Indian coil coatings market. It improved by beefing up the Wanda portfolio in vehicle refinishes; completing premium wood coatings portfolio; and introducing more efficient product offerings in protective coatings. In Marine, Protective and Yacht Coatings, the Company introduced a series of new products like, Intergard 251HS, Intertherm 228HS, Interbond 2340 and Interchar 1290. During the year 2020, the Company launched a new product called Intershield 4000 USP, which is a high performance Universal System primer based on passivation enhanced, alkylated amine epoxy technology. It launched Interpon Redox Corossion protection range which finds usage in Electrical Charging stations, Transformers and Electrical Panels. It launched Antibacterial Coatings' in Coil coatings for local coil coaters. It launched Sikkens Auto Surfacer UV, in the refinishing market which requires 30-120 seconds of UV-A LED exposure to fully cure. It introduced Liquid Chrome to eliminate harmful carcinogenic ingredients like Lead and Cadmium present in traditional chrome plating. During the year 2021, the business launched Interpon Redox, a new range of corrosion protection for a variety of substrates, surfaces, and environments; from swimming pools to chemical plants and high humidity to highly corrosive areas. With infrastructure activity picking up, Powder business also made inroads in Bonded metallics for Architecture facades which find applications in Airports, Residential and Commercial building. The Company launched Dulux Assurance, a first-of-its-kind consumer program for Premium Emulsions. Other launches in the Premium category included new SuperClean (with superior washability property), upgrade of Dulux Weathershield Protect premium exterior paint and a refreshed Weathershield UltraClean proposition. Offerings in affordable segment included Promise SmartChoice Exterior & Interior entry level emulsion, Promise Interior relaunched with Anti-Bacterial formula and Promise Sheen. Waterproofing category was extended to economy segment with launch of Aquatech DampProtect Basecoat. Dulux Professional Weathershield Anti-Carb, a specialist Anti-Carbonation paint, was introduced to support Indian government's efforts towards building world class infrastructure. It launched the BPANI (BPA Non-Intended) Internal Spray Lacquer, a protection solution for all types of beverage cans in their Industrial coatings business. During the year 2022, the Company launched new Futura range of contemporary colour scheme for Building Facades. It relaunched super premium offering Velvet Touch with the all new Tru Color technology promising intense rich colors, further strengthening the luxury Interior Emulsion range. It launched Anti-Viral offering in Premium Interior Emulsions' category - Dulux SuperClean Range; it launched Dulux FloorPlus with a compelling ready to use shades offering. It launched Sadolin Luxurio PU- Premium Italian Finish for woodcare category. It launched several exciting products for the Electric Vehicle (EV) sector to help protect motors, battery system and electrical storage units. In FY 2022-23, Dulux Aquatech PU Coat was launched with a superior 15-year performance waterproofing. The Company launched new Interpon D2525 Stone Effect powder coatings, which delivers a natural finish to aluminum girders; launched SmartChoice Primers. Dulux Weathershield Prime coat acrylic primer was launched with anti-alkalinity properties in FY 2024.