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Calcutta, Feb. 20: ICI India today signed an agreement with Asian PPG Industries to sell its automotive refinish paints business for Rs 52 crore.

ICI Autocolour, the auto paints division of the company, took several initiatives in 2002 to expand its business — one of them being the launch of advance auto refinish technology, 2K.

This refinish paint was launched in technical collaboration with US-based PPG Industries. ICI India spent about Rs 15 crore on this launch.

However, the company changed its focus to concentrate on decorative and conventional paints. ICI sold a number of its divisions in the past two years.

It sold its rubber chemicals, explosives and speciality chemicals businesses in line with the restructuring by its British parent Imperial Chemical Industries Plc.

It sold Quest India, its flavour and food ingredients business, in October 2006. The company also sold its Uniqema business to Croda International Plc last year.

“The company’s 2K business will be transferred as a going concern to Asian PPG Industries Ltd, an affiliate of the PPG Group in India, over the next few weeks,” an ICI India statement said.

The business has about 60 employees and sales revenue of about Rs 50 crore in the fiscal ended March 31, 2006.

Asian PPG Industries is a 50:50 joint venture between Asian Paints and PPG Industries. Asian Paints also has a stake in ICI India Ltd.

The acquisition of ICI India’s advanced refinish business will help Asian PPG gain more ground in the rapidly growing automotive paints industry.

“Asian PPG will fund the acquisition from internal accruals,” an Asian Paints official said.

The joint venture gives Asian Paints — which dominates the decorative paints segment — and PPG their sole presence in the India auto paints market.