ICI chairman Aditya Narayan (left) and MD Rajiv Jain in Calcutta on Wednesday. A Telegraph picture

Calcutta, July 26: ICI India Ltd will double its production capacity in the next two to three years from the present 60 million litres, said M.R. Rajaram, executive director of the company.

This will be done by increasing the installed capacities of ICI’s manufacturing plants and also through acquisition of companies.

“Although our main focus is on organic growth, we are continuously evaluating acquisition opportunities,” Rajaram said, adding there was no dearth of capital to fund any such buyout plan.

The company had free reserves of Rs 200 crore as on March 31 this year. “Of this Rs 55 crore was spent to acquire HLL’s 49 per cent stake in our joint venture, Quest (ICI India holds 50 per cent stake in the venture),” Rajaram said.

According to him, ICI India board has also approved the purchase of the remaining one per cent share held by different subsidiaries. “This may entail another Rs 4-5 crore,” he said.

Besides, the company is spending Rs 10 crore to expand its Thane plant. “We have already spent Rs 10 crore to increase the capacity of our Hyderabad plant and another Rs 10 crore on introducing the colour solution business this year,” Rajaram said.