Akzo Nobel India is reportedly planning to set up manufacturing unit via tolling agreement in Bangladesh. In this regard, the company has tied-up with Bangaldesh distributing conglomerate ACI and depending on the success of this move the company would look to set up its own unit in the neighboring country in the next 24-36 months.
A tolling agreement is a contract between one company that owns raw materials and another that is engaged to process those materials.
Meanwhile, the company reported almost 59% growth in its net profit at Rs 55.18 crore in Q1 FY15 as compared to Rs 34.81 crore in same period previous year. The boost in the profit was mainly aided by phasing of mutual fund maturities. Moreover, the company’s net sales stood at Rs 627.93 crore against Rs 561.55 crore in a year ago period, a growth of about 12%.
