Sector News

Tata Chemicals exits fertilizer biz

November 7, 2017
Chemical Value Chain

Tata Chemicals has sold its phosphatic fertilizers business to IRC Agrochemicals, a subsidiary of IndoRama for Rs. 375 crore to exit fertilizer business completely.

Last August, Tata Chemicals has sold its urea business at Babrala in Uttar Pradesh to Pune-based Yara Fertilizer for a Rs. 2,670 crore.

The Board of Directors on Monday accepted the recommendations made by committee of directors for sale and transfer of phosphatic fertilizers business and the trading business comprising of bulk fertilisers and non-bulk fertilizers by way of a slump sale, on a going concern basis to IRC Agrochemicals, a wholly-owned subsidiary of Indorama Holdings BV, Netherlands (part of Indorama Corporation Pte, Singapore).

The transaction would involve transfer of Haldia Plant along with immovable, movable properties, working capital and product brands but excluding outstanding subsidy amounts, it added.

The Board also approved the execution of definitive agreements between the Company, IRC and Indorama Holdings BV, Netherlands for the sale and transfer of the phosphatic business from the Company to IRC pursuant to the business transfer agreement and subject to satisfaction of conditions precedent and regulatory approvals.

The divestment by Tata Chemicals is in line with the strategic direction to focus on speciality chemical and food businesses, while maintaining leadership in inorganic chemicals and exiting the fertilizer business, it added.

The speciality chemical business of Tata Chemicals includes Sodium bicarbonate business, agrochemicals through its subsidiary, Rallis India in addition to the planned investments in the greenfield sites in Nellore for Nutraceuticals and in Dahej for the HD Silica business.

The food business of the company includes the pulses, spices and edible salt brand, Tata Salt.

Tata Chemicals is also among leading Soda Ash manufacturers in the world, with operations in India, Kenya, South Africa, UK and the US.

Indorama with its subsidiaries in Asia, Africa, CIS and the Middle East has interests in manufacturing Polyethylene, Polypropylene, Polyesters, Fertilisers (including Phosphoric Acid, which is a key input for the manufacture of DAP and other complex fertilisers at Haldia), Textiles, and Synthetic Disposable Gloves. It is the largest producer of fertilisers in Sub-Saharan Africa.

R Mukundan, Managing Director, Tata Chemicals said the move builds on earlier announcement with regard to the sale of the urea business to exit the fertilisers businesses completely. The company continues to move forward on its strategy to focus on speciality chemicals and consumer food business while maintaining leadership in Inorganic Chemicals Business, he added.

Source: The Hindu Business Line

comments closed

Related News

February 4, 2023

Eastman acquires performance films company Ai-Red Technology

Chemical Value Chain

Eastman Chemical Co. (Kingsport, Tenn.) announced it has acquired Ai-Red Technology (Dalian) Co., Ltd., a manufacturer and supplier of paint protection and window film for auto and architectural markets in the Asia Pacific region.

February 4, 2023

BASF and StePac partner on chemical recycling MAP packs to fight food waste

Chemical Value Chain

BASF and Israeli packager StePac have joined forces to create the “next generation” of fresh produce packaging. BASF will provide StePac with greater flexibility to advance contact-sensitive packaging formats to a higher sustainability standard by supplying StePac with Ultramid Ccycled – a chemically recycled polyamide 6.

February 4, 2023

TotalEnergies and Intraplás partner on food-grade renewable biopolymer production

Chemical Value Chain

TotalEnergies’ biorefinery in La Mède, France, allows direct access to renewable feedstock for its drop-in RE:newable polymer range derived from bio-based products. The company claims these polymers retain virgin-like properties.

How can we help you?

We're easy to reach