ICI India Limited, a part of Dutch-based Akzo Nobel Group, will invest over Rs 250 crore in the next two years to set up a new production unit and modernize its existing facilities.

“We are at the final stage of planning and after that only everything will be finalized. We will start the construction of the unit by the end of this year and it will be completed within two years,'' said Sandeep Batra, Chief Financial Officer and Executive Director of the company.

Gurgaon-based, ICI India was founded in 1911. The company manufactures and markets paints, specialty chemicals, adhesives, and starch in India. It offers decorative and refinish paints, food starch, polymers, and adhesives. ICI India, through its joint venture, also manufactures and markets fragrances and flavors.

The company has currently three manufacturing units in Mumbai, Hyderabad and Chandigarh with a total production of about 70 million litres per annum.

ICI India Ltd. has announced a 37% decrease in net profit at Rs 182.7 million for the quarter to Dec. 2007. Its sales increased by 14% to Rs 2566.9 million.