Chairman MN Karani told shareholders at the annual general meeting (AGM) in Mumbai on Wednesday that if the sales figures of the current period are adjusted accordingly, the actual increase would come to about 17 per cent.

Although exports during the period fell to Rs 29.9 crore, against Rs 35.5 crore in the previous year, the company was targeting a full year sales growth of 8 per cent to 10 per cent, he said.

Responding to shareholder concern over the possible global divestment of the Swiss multinational's polymers business, Karani said that in the Indian context anydecision will take into account the future of this business and know-how needs.

Ciba Specialty Chemicals, Basle, had earlier announced its intent to explore strategic alternatives including the possible divestment of its polymers business as part of a global profit improvement drive.

A minority shareholder later expressed dissent over the company's plans to transfer the chemical development division to Ciba India Pvt Ltd, the 100 per cent subsidiary of the Swiss multinational, though the resolution was passed by an overwhelming majority. The transfer will entail a consideration of Rs 4.87 crore.

The new antioxidants plant at Santa Monica was expected to facilitate an increase in sales of Rs 20 crore to Rs 25 crore after completion of phase II, Karani said. The Rs 22-crore facility will essentially manufacture primary antioxidants, Irganox 1010 and Irganox 1076.

Meanwhile, Ciba Speciality Chemicals India has also received Rs 1.07 crore as compensation from UCB Belgium for the termination of its licenceto manufacture polyester at its facility in Goa. The company has also appointed Frans A Hompe as vice-president of its consumer care division.

Eyes sealant brand M-Seal

Ciba Specialty Chemicals India managing director BN Hutter said the company was in `an advanced stage of negotiation' to acquire the popular sealant brand, M-Seal.

This brand will complement the existing polymers range and add value to it, though a deal had not yet been concluded, Hutter said.

Ciba Specialty Chemicals also plans to increase its holding in Swati Organics and Specialities Pvt Ltd from 21.9 per cent to around 24 per cent, and negotiations were underway. Swati Organics essentially makes dyestuff blends.