NEW DELHI, May 23: ICI India's board on Friday recommended a five per cent increase in dividend to 45 per cent on a higher turnover of Rs 695.13 crore. The company posted a net profit of Rs 42.06 crore for the year ended March 1997, up from Rs 35 crore a year ago.Net sales from operations stood at Rs 669.68 crore compared with Rs 582.41 crore the previous year. Other income fell to Rs 25.45 crore from 38.20 crore. Interest burden was Rs 13.51 crore, up from last year's Rs 6.57 crore.

The ICI board is also reported to have discussed the opportunities thrown open after acquisition of Unilever's speciality chemicals businesses by its UK-based parent, ICI. The acquisition at the parent's front is expected to spur a realignment of business activities in the country - between ICI India and Unilever's Indian subsidiary Hindustan Lever.

ICI chairman Ashok Ganguly, who took charge of the company in August last year, announced appointment of three new executive directors - Param Bhargava, Rajiv Jain and M R Rajaram - after the board meeting. "The change in board structure combining specific corporate and business performance responsibilities with each executive director will help drive the company's vision into action," Ganguly said.

After adjustment of depreciation charges of Rs 21.28 crore and taxation of Rs 27.50 crore, net profit stood at Rs 42.06 crore against Rs 34.97 crore in the previous year.

On a paid up equity capital of Rs 40.87 crore, the reserves (excluding revaluation reserves) has increased to Rs 179.59 crore from Rs 157.77 crore in the previous year.

The paints business registered a volume growth of 14 per cent and launched two new decorative paints "Supercote" and "Farco". The company achieved a 30 per cent growth in bulk explosives. Emulsion based explosives were successfully introduced to substitute nitroglycerine-based explosives.

The company has doubled its paint capacity to 40 million litres by commissioning a new state-of-the-art, Rs 35-crore plant at Thane in December last year. ICI is investing another Rs 100 crore in a new plant at Mohali, a polyurethanes blending factory and a technical centre for textile surfactants at Thane.

A new bulk emulsion plant was commissioned at Rourkela in April this year to strengthen service to customers in central and eastern region. New capacities for bulk and packages explosives are in the pipeline.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.