Ciba sells textile arm for Rs 123 cr

Ciba Specialty Chemicals India, the Indian subsidiary of Ciba Specialty Chemicals Holding Inc, Switzerland, has sold its textile business to Huntsman Advanced Materials (India), a subsidiary of Huntsman Corporation, US. The decision is part of a global restructuring initiated by the parent company.

The company has informed the Bombay Stock Exchange that its board has approved the proposal to sell the textile business as a going concern to Huntsman Advanced Materials (India), for Rs 122.5 crore.

As part of the global business arrangement, Ciba's another 100 percent subsidiary "" Diamond Dye-Chem has also approved the proposal to sell its textile related business to Huntsman Advanced Materials (India) for a Rs 43 crore.

Recently, the Swiss chemicals giant had sold its textile chemicals business to Huntsman Corporation, US. The global deal, however, had put a question mark over its implications for Ciba's Indian subsidiary, Ciba Speciality Chemicals (India).

The Indian company contributed close to one-third of its revenues and the global sell-off of the division was supposed to have a significant impact on its revenues and profit.

Textile business contributes about 30 per cent of the sales turnover of the company. This segment comprises textile chemicals and dyes registered sales of Rs 184.5 crore last financial year.

The industry analysts are of the view that since the Indian textile chemical business of the company is also sold to Huntsman, it could have a major impact on the topline as well as the bottomline of Ciba Specialty Chemicals India.

Ciba Specialty Chemicals is a leading global company creating effects that improve the quality of life "" adding performance, protection, colour and strength to textiles, plastics, paper, automobiles, buildings, home and personal care products and much more.