The move has been necessitated after the world-wide buyout of Akzo Nobel's stake in Courtaulds' plastic packaging, laminate and aluminium tubes businesses by Betts.

Akzo Nobel NV, which has 70 per cent stake in the Indian venture after it took over Courtaulds' packaging business, has sold the business to Betts for Pound 82 million (on a debt-free basis). As per Indal's arrangement with Courtaulds, the downstream aluminium major was also to supply a major portion of the venture's feedstock requirement. It had set up an extruder at the Kalwa facility in Maharashtra specifically for supplying feedstock to Courtaulds.

Indal's managing director (operations) NK Chowdhary said: "We will soon have discussions with the new management to decide on the fate of the Indian venture."

Courtaulds Packaging India managing director Andrew Pearsonsaid: "The new management has no plans to buy out Indal's stake as of now. What happens in the future cannot be said at this point of time."

"Courtaulds Packaging India is doing well aided by surging demand for laminate and aluminium tubes. Though the future plan will be known only after the meeting with Betts officials, but given the present state of affairs, Indal will be a part of the joint venture," said Chowdary.

Courtauld Packaging India Ltd, which started commercial production in April 1998, is on the verge of concluding a major expansion programme with capacity being hiked from 170 million chips to 300 million chips. The expansion is being done at a capital expenditure of Rs 50 crore, and has been funded by the company's old management. The company's clientele includes Hindusthan Lever Ltd (HLL).

Betts makes toothpaste and pharmaceutical, asthama inhalers, and other specialty packaging for dental, food, toiletry, cleaning and medical products. Betts is the global leader in asthma inhalers, theEuropean leader in toothpastes, and the UK leader in pharmaceutical products. Betts' customers world-wide include Unilever. Colgate-Palmolive, Glaxo Wellcome, Boots, and Smithkline Beecham.