Tata Chemicals Ltd. (TCL; Mumbai, India; www.tatachemicals.com) announced the sale and transfer of its Phosphatic Fertilizers business, as well as the trading business comprising bulk fertilizers and non-bulk fertilizers, to IRC Agrochemicals Private Ltd., a wholly owned subsidiary of Indorama Holdings BV, Netherlands. The transactions involves the transfer of the Haldia Plant, along with other assets. The total sum in considerations for the Phosphatic business is 375 crore (around $58 million), subject to certain adjustments after closing, as agreed between the parties.
The divestment by TCL is in line with the strategic direction of the company to focus on the specialty chemicals and food sectors, while maintaining leadership in inorganic chemicals and exiting the fertilizers business.
Mukundan Managing Director, Tata Chemicals commented: “This move builds on our earlier announcement with regard to the sale of the urea business to exit the fertilizers businesses completely. The Company continues to move forward on its strategy to focus on the specialty chemicals and consumer food businesses while maintaining leadership in Inorganic Chemicals Business. The Company is pleased to have found a partner with long term interest in the phosphatic and fertilizer business who would build this Phosphatic business further.”