Sector News

Tata Chemicals mulls selling fertiliser business for $1 billion

July 1, 2015
Chemical Value Chain
Tata Group Chairman Cyrus Mistry has initiated a plan to hive off and sell the fertiliser business, housed in Tata Chemicals, in his first major restructuring move after becoming chairman in 2012. 
 
Tata Chemicals (TCL) has asked Kotak Mahindra Bank to help find strategic buyers for the business at a valuation of close to a billion dollars, said multiple sources aware of the developments. Long considered a drag on Tata Chemicals’ profitability, a divestment will help the company trim debt and focus on the high-growth consumer and industrial chemicals businesses.
 
Several domestic and global majors — including Coromandel, Deepak Fertilisers, Aditya Birla Nuvo and Morocco’s OCP, the world’s largest producer of phosphate rock and phosphoric acid — have been sounded out about the possible sale of the fertiliser unit, added one of the sources mentioned above. However, this could not be independently verified.
 
While a Tata Chemicals spokesperson said the company would not like to comment on market speculation, an OCP spokesperson said the company had “no comment” to make on the matter. Responding to queries from ET, a Deepak Fertilisers spokesperson said, “We are closely evaluating all growth opportunities in this sector. In view of certain confidentiality constraints we are unable to react to your specific queries.” 
 
Mails to Coromandel, Aditya Birla Group or Zuari did not generate a response till the time of going to press.
 
The current market cap of Tata Chemicals is Rs 10,722 crore. The stock ended 2.4 per cent up on Tuesday at Rs 420.9. 
 
> View the full article on the Economic Times website
 
By Arijit Barman, Ramkrishna Kashelkar & Baiju Kalesh
 

comments closed

Related News

May 15, 2022

New York’s EPR and packaging reduction bills lauded as game-changers in plastic pollution battle

Chemical Value Chain

The US State of New York is introducing two new bills to combat over-packaging, poor recycling rates and litter issues, including an Extended Producer Responsibility (EPR) program requiring companies such as McDonald’s and Amazon to pay for the cost of packaging disposal and recycling.

May 15, 2022

Borealis and Reclay launch entity focused on lightweight packaging 

Chemical Value Chain

The new organization’s mission is to redesign the critical steps of the plastics sorting and recycling system for post-consumer lightweight packaging (LWP) to speed up circularity, born from a need to meet the rising market demand for high-quality recyclates for use in high-end plastic applications.

May 15, 2022

Starbucks and Hubbub launch reusable packaging fund as COVID-19 diminishes consumer appetite

Chemical Value Chain

Starbucks and Hubbub have launched a £1 million (US$1.22 million) “Bring It Back Fund” to increase the uptake of reusable packaging in the F&B industry. The funding will go toward innovative ideas that make it easier for customers to use alternatives to single-use packaging by supporting pilot projects that help shift consumption habits.