Industrial Perfumes to merge with HLL

The move to merge IPL with HLL paves the way for the FMCG major to form joint ventures in specialty chemicals. Joint ventures are being planned with international know-how and technology providers in specialty chemicals.

Prior to this, erstwhile Pond8217;s India was amalgamated with HLL which brought the Quest division of specialty chemicals under Pond8217;s into HLL8217;s fold. IPL is a 51 per cent subsidiary of HLL and involved in the manufacture of specialtychemicals like aroma chemicals, fragrances, natural essential oils, gums, resinoids, spice oils and oleoresins. Total turnover of flavour and fragrances ingredient market in India is around 800 crore, and is expected to double in the next decade.

After the merger, the specialty chemicals business for HLL will swell from Rs 227 crore in the calendar year 1998 to over Rs 250 crore. IPL is a profit making company with a turnover of Rs 27 crore.

Business growth in specialty chemicals for HLL was supported by three new factories 8211;for aroma chemicals at Chiplun in Maharashtra, for flavours at Daman and a multi-product line at Daman. For the calendar year ended December 1998, HLL posted a net profit of Rs 805.71 crore on a gross turnover of Rs 1,0215.24 crore.