ICI » Topics » Background

This excerpt taken from the ICI 6-K filed Mar 21, 2007.
Background
Regional and Industrial comprises several businesses which are essentially local in their scope, the most significant of which is located in Pakistan. The businesses accounted for 9% of the Group’s continuing sales in 2006. In Pakistan, ICI operates through non wholly-owned subsidiary companies, quoted on the local stock exchange.

This excerpt taken from the ICI 20-F filed Mar 31, 2006.
Background
ICI Paints is a leading international paint business and accounted for 40% of the Group’s sales in 2005. It concentrates primarily on decorative paint (90% of ICI Paints’ sales in 2005) and packaging coatings for food and beverage cans.

ICI Paints’ global business headquarters is located in Slough, UK. Major manufacturing facilities are located in the USA, UK, Brazil, Argentina, Germany, the Netherlands, France, China, India and Malaysia. Additional manufacturing facilities are in 14 other countries. ICI Paints maintains its own sales distribution network in over 30 countries. The business also sells through agents and distributors.

Strategy
The strategy of ICI Paints is to develop its leading market positions in the global paints and coatings industry, particularly where it benefits from strong retail brands. ICI Paints expects to develop its strategy further by:

differentiated resource allocation – channelling scarce resource (revenue expenditure, capital and people) to those areas which will generate the highest rewards;
   
innovation – driving for new major differentiated products and services, linking marketing insights with world leading technical skills;
   
cost and capital effectiveness – implementing key restructuring plans and improving planning/operating processes to reduce costs and inventory while improving customer delivery reliability; and
   
people and organisation capability development.
   
Key competencies, which ICI Paints employs across its businesses, include:
   
 marketing – identifying areas of significant potential through market understanding and exploiting these through highly professional category and brand management skills;
   
research and development – supporting the increased emphasis on innovation in products, packaging and services, and targeting high impact cost reductions through leading edge colour, polymer and formulating science;
   
operations – implementing process improvements and improved delivery reliability by sharing expertise and best practice across its businesses; and
   
procurement – optimising the mix of central contracts using ICI’s total purchasing power and local contracts, bringing the advantages of tailored solutions and flexibility.

The regional markets for decorative paint are at different stages of growth and maturity and the ICI Paints strategy reflects this.

The Asia region is one of generally high growth. Paint markets tend to be fragmented, with a large number of country-specific competitors. Obtaining competitive advantage across the region requires leveraging marketing and manufacturing capabilities and transferring best practice in innovation, purchasing, marketing and channel development. The key focus of the business is to maintain accelerated, profitable growth, with particular focus on China, India, Indonesia, Thailand and Vietnam.

The European region has some large mature markets and a number of developing growth markets in Eastern and Central Europe. ICI Paints has a leading position in the UK, with strong brands underpinned by a focus on innovation. There is significant brand equity with ‘Dulux’, ‘Hammerite’, ‘Cuprinol’ and ‘Polycell’. The focus of the European business is on improvement of product range, expansion in developing markets, reduction of the cost-base and the improvement of operational efficiency and profitability of the Continental European operations.

The Latin American business has strong positions in Brazil, Argentina and Uruguay where brand strength is maintained through capability in marketing and a focus on innovation.

North American markets are generally mature and ICI has a significant presence in both trade and retail channels. In trade markets, the strategy is to establish insights into end user needs that can create competitive advantages, and in securing distribution density within metropolitan areas. In the retail business, the route to market is highly consolidated with a few major retailers controlling around 80% of distribution. ICI Paints has a significant relationship in this market with The Home Depot, a leading retailer.

ICI Paints is also a leader in internal and external coatings for food and beverage cans. It manufactures and distributes a broad product offering of packaging coatings with significant market positions in the established markets of Europe and North America and the emerging markets of Asia and Latin America. The strategy of this business is to focus on profitable growth in South East Asia and Latin America, to explore opportunities for growth in non-metal packaging, in particular with PET (polyethylene terephthalate) bottle coatings, and to optimise the supply chain.

Technology and innovation are also important factors in the growth of ICI Paints. Success is enhanced by being first to the market with innovative, value-adding products and services that meet market needs. ICI Paints benefits technologically from the colloid, polymer and particle related science base and research carried out by other parts of the ICI Group.


 

ICI Group and its businesses
ICI Annual Report and Accounts 2005 13

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This excerpt taken from the ICI 6-K filed Mar 14, 2006.
Background
ICI Paints is a leading international paint business and accounted for 40% of the Group’s sales in 2005. It concentrates primarily on decorative paint (90% of ICI Paints’ sales in 2005) and packaging coatings for food and beverage cans.

ICI Paints’ global business headquarters is located in Slough, UK. Major manufacturing facilities are located in the USA, UK, Brazil, Argentina, Germany, the Netherlands, France, China, India and Malaysia. Additional manufacturing facilities are in 14 other countries. ICI Paints maintains its own sales distribution network in over 30 countries. The business also sells through agents and distributors.

Strategy
The strategy of ICI Paints is to develop its leading market positions in the global paints and coatings industry, particularly where it benefits from strong retail brands. ICI Paints expects to develop its strategy further by:

differentiated resource allocation – channelling scarce resource (revenue expenditure, capital and people) to those areas which will generate the highest rewards;
   
innovation – driving for new major differentiated products and services, linking marketing insights with world leading technical skills;
   
cost and capital effectiveness – implementing key restructuring plans and improving planning/operating processes to reduce costs and inventory while improving customer delivery reliability; and
   
people and organisation capability development.
   
Key competencies, which ICI Paints employs across its businesses, include:
   
 marketing – identifying areas of significant potential through market understanding and exploiting these through highly professional category and brand management skills;
   
research and development – supporting the increased emphasis on innovation in products, packaging and services, and targeting high impact cost reductions through leading edge colour, polymer and formulating science;
   
operations – implementing process improvements and improved delivery reliability by sharing expertise and best practice across its businesses; and
   
procurement – optimising the mix of central contracts using ICI’s total purchasing power and local contracts, bringing the advantages of tailored solutions and flexibility.

The regional markets for decorative paint are at different stages of growth and maturity and the ICI Paints strategy reflects this.

The Asia region is one of generally high growth. Paint markets tend to be fragmented, with a large number of country-specific competitors. Obtaining competitive advantage across the region requires leveraging marketing and manufacturing capabilities and transferring best practice in innovation, purchasing, marketing and channel development. The key focus of the business is to maintain accelerated, profitable growth, with particular focus on China, India, Indonesia, Thailand and Vietnam.

The European region has some large mature markets and a number of developing growth markets in Eastern and Central Europe. ICI Paints has a leading position in the UK, with strong brands underpinned by a focus on innovation. There is significant brand equity with ‘Dulux’, ‘Hammerite’, ‘Cuprinol’ and ‘Polycell’. The focus of the European business is on improvement of product range, expansion in developing markets, reduction of the cost-base and the improvement of operational efficiency and profitability of the Continental European operations.

The Latin American business has strong positions in Brazil, Argentina and Uruguay where brand strength is maintained through capability in marketing and a focus on innovation.

North American markets are generally mature and ICI has a significant presence in both trade and retail channels. In trade markets, the strategy is to establish insights into end user needs that can create competitive advantages, and in securing distribution density within metropolitan areas. In the retail business, the route to market is highly consolidated with a few major retailers controlling around 80% of distribution. ICI Paints has a significant relationship in this market with The Home Depot, a leading retailer.

ICI Paints is also a leader in internal and external coatings for food and beverage cans. It manufactures and distributes a broad product offering of packaging coatings with significant market positions in the established markets of Europe and North America and the emerging markets of Asia and Latin America. The strategy of this business is to focus on profitable growth in South East Asia and Latin America, to explore opportunities for growth in non-metal packaging, in particular with PET (polyethylene terephthalate) bottle coatings, and to optimise the supply chain.

Technology and innovation are also important factors in the growth of ICI Paints. Success is enhanced by being first to the market with innovative, value-adding products and services that meet market needs. ICI Paints benefits technologically from the colloid, polymer and particle related science base and research carried out by other parts of the ICI Group.


 

ICI Group and its businesses
ICI Annual Report and Accounts 2005 13

Back to Contents

This excerpt taken from the ICI 20-F filed Apr 1, 2005.
Background
Regional and Industrial comprises several businesses which are essentially local in their scope, the most significant of which are located in Pakistan, Argentina and India. The businesses accounted for 7% of the Groups sales in 2004. In Pakistan and India, ICI operates through non wholly-owned subsidiary companies, quoted on the local stock exchanges.

This excerpt taken from the ICI 6-K filed Mar 16, 2005.
Background
Regional and Industrial comprises several businesses which are essentially local in their scope, the most significant of which are located in Pakistan, Argentina and India. The businesses accounted for 7% of the Groups sales in 2004. In Pakistan and India, ICI operates through non wholly-owned subsidiary companies, quoted on the local stock exchanges.

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