ICI to set up decorative plaints plant by 2010

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According to Rajiv Jain, managing director, ICI India, the company will finalize the site and investment amount by the end of 2008. "The company may set up the new plant in a tax free zone," he said.

The company, Jain said, has cash reserves of Rs.1000 crore but did not disclose the size of the investment.

The company also has plans to open 300 design studios or brand stores over the next three years, he added.

ICI india, in which Akzo Nobel NV holds 54.6 percent stake, currently operates three units in Mumbai, Chandigarh and Hyderabad, with an annual production capacity of 120 million liters. The new plant is expected to double the capacity as it will alone produce over 100 million liters annually.

"We will be running short of capacity soon. It is in anticipation of higher demand," R. Guha, general manager (corporate affairs), ICI India, said.

ICI India, which posted total revenues of Rs.964 crore in FY08 and net profit of Rs.70.88 crore for the June quarter, up from Rs.22.88 crore (year on year growth of 209.79 percent) posted in the corresponding period a year ago, competes with Asian Paints and Kansai Nerolac in the paint industry.