The company's robust performance comes even as chairman VN Nadkarni told shareholders at the annual general meeting (AGM) here on Thursday that `at present' there was no move towards a merger with Colour-Chem in India. The expectations on the merger front are a direct fallout of a global integration of German multinational Hoechst's specialty chemicals business (represented by Colour-Chem in India) with Clariant.

Clariant managing director PR Rastogi said that domestic sales were up 18 per cent, while exports had increased by 47 per cent during the first quarter. Other units like paper registered a two-fold jump in sales, while the masterbatches business grew almost 2.7 times during the first quarter. The pigments and additives segment alsoregistered a two-fold growth, while textile chemicals grew at a high of 23 per cent, he said.

Rastogi also said that effective management of current assets and capital expenditure backed by focused market development had helped the company sustain its growth despite a general slowdown in the economy. Clariant's new products introduced during the past 24 months accounted for 16 per cent of the domestic turnover. "The company's strategy to introduce new products to meet the changing needs of customers has proved to be highly successful.

In fact, with our thrust in research and development, we have 15 new products in the pipeline," he added. It has commenced production of the Drimarines XN range of speciality dyes for cotton even while targeting new export customers in Europe and South America for finished dyestuffs.

Capacity expansion for the current year is approximately Rs 5 crore. Clariant AG also sources around 30 per cent of its global needs from its Indian subsidiary making the latter only thethird company among all group affiliates to do so. Meanwhile, shareholders approved all resolutions including the appointment of Colour Chem vice-chairman and managing director KJ Bharucha on the board of Clariant India.