Indesen Industries shareholders yesterday approved a name change for the videotape-maker. It will in future be called Central China Enterprises. Company director Albert Ha Shu-tong said the name change reflected Indesen's new business strategy; future growth would come as a diversified investment company rather than from videotape manufacturing. Indesen has been on a buying spree in the past year, acquiring stakes in various mainland infrastructure projects and an 80 per cent stake in Henan Motor Car Repairing. Indesen recently completed a $98 million general offer for shares in a troubled freight-forwarding company, Ideal Pacific, and now holds a 45 per cent stake. 'Basically, Indesen is a holding company now for various strategic investments, and the name change will reflect that,' Mr Ha said. Mr Ha said the videotape business gave Indesen a steady revenue base, but a competitive market meant gross margins were languishing in single digits. 'We invested in a new factory in Vietnam last year, but we are again running at 100 per cent capacity,' he said. Mr Ha said growth would require further large investments, which Indesen was loathe to make, given potentially higher returns in other less mature industries. He said there were many otherwise overlooked areas of business, such as commercial pig-farming, that Indesen would look into for growth. Indesen's relatively low borrowings and its $300 million war chest would help its diversification, Mr Ha said. Net debt to equity was 30 per cent, with the bulk of it videotape-related trade financing. 'The next two years will be an investment phase . . . we expect to reap the rewards three to five years down the road,' he said. Indesen's videotape business accounted for 93 per cent of its $289 million in sales last year and returned an operating profit of $41 million.