MUMBAI, July 10: ICI India plans to invest up to Rs 200 crore in strategic alliances and acquisitions as part of its strategy to consolidate its presence in the country. The company also plans to enhance its borrowing powers from Rs 150 crore to Rs 300 crore.

The company is seeking shareholders' approval "to invest in the share capital of one or more companies up to an aggregate of Rs 200 crore, notwithstanding that the aggregate of the investments already made by the company in all companies together with the investments to be made pursuant to the authority granted hereunder may exceed the limits prescribed from time to time under the provisions of the Companies Act or any amendment, modification or re-enactment thereof". The annual general meeting (AGM) is scheduled for July 24.

The current limit leaves insufficient elbow room for the board "should the need arise to make future investments". At the AGM of July 28, 1995, shareholders had authorised the board to make investments up to a limit of Rs 75 crore in the share capital of one or more companies. Investments made so far were about Rs 22.94 crore.

The company will also seek approval to enhance the board's borrowing powers. This is necessiated by the fact that it is in the process of implementing various expansion proposals including a new paints plant at Mohali near Chandigarh. These plans would require financing through appropriate debt instruments and hence the need to enhance the borrowing powers of the board to Rs 300 crore.

The company's paints business registered a volume growth of 14 per cent in 1996-97 and a new plant was commissioned at Thane in December 1996, ahead of schedule.

While the current borrowing limit is Rs 150 crore, the borrowings stand at Rs 82 crore. The paid-up capital and free reserves have grown to Rs 220.5 crore.

Meanwhile, in the pharmaceuticals business, ICI's sales force was expanded by 30 per cent and a critical care division was formed to focus on sales of anaesthetics, antiseptics, oncological and radio pharmaceutical products.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.