Ciba Specialty Chemicals (CSCIL):

© 69.3% subsidiary Ciba - Swiss, CSCIL is present in base polymers, coating effect chemicals, water & paper treatment chemicals, colours, etc. There are vast growth opportunities in these business lines.

© In India, significant investments are being made in base polymer by Reliance, Haldia, and Gail etc. This is very positive for Ciba India. Reliance, Moser Baer, Asian Paints are few of the large customers of Ciba.

© Over a period of time water treatment should be a big business as shortage of drinking water is one of the major concern.

© Company has recently commenced new services division to meet customer needs for product innovation and development. Presently size is very small but potential is there for growth.

Moreover, Parent’s increased focus on growing Indian market will translate into increasing outsourcing opportunities for CSCIL.

© Its 100% subsidiary Diamond Dye-Chem (DDCL) is Asia’s largest manufacturer of cellulose optical brighteners enjoying > 45% domestic market share. Company has set up color former and thermal developer project @ capex of Rs 65 crore. This facility is primarily for exports. Parent company has closed color formers and thermal developer plant at UK. Thus, higher utilisation of this plant is expected to give big jump in sales / profits.

© Its 51% subsidiary - Virchow Drugs manufactures highly profitable API - Triclosan (anti-microbial ingredient used in toothpaste, soap, deodorants, etc.) with focus on Asia-Pacific region including India. There are plans to expand this facility for Triclosan and parent company is also evaluating new products.

© In view of all these initiatives, company is poised for good growth in top-line and bottom-line.

Company has reported mediocre performance for FY 2008. As company divested its Textile Effects business from June 30, 2006, operating results are not strictly comparable. For FY 2008, Standalone Turnover from continuing business was up by 8.5% to Rs. 468.2 crore (Rs. 431.6 crore excl. textile sales of Rs. 79.43 crore in FY 2007) and PBIT% of continuing business improved to 9.2% (7.5%). On Consolidated basis, comparable net sales increased by 12.4 to Rs. 637.70 crore (Rs. 567.55 crore excl. textile sales of Rs. 91.47 crore from consolidated FY 2007 sales).