Tata Chemicals completes sale of Phosphatic business to IRC Agrochemicals Pvt.Ltd
Moves out of fertilizer and regulated farm business
01st June, 2018: Tata Chemicals today announced that the Company has completed the sale and disposal of its Phosphatic Fertilisers business and the Trading business comprising bulk and non-bulk fertilisers, by way of a slump sale on a going concern basis, to IRC Agrochemicals Private Limited after the receipt of requisite regulatory approvals and fulfillment of Conditions Precedent as contemplated in the Business Transfer Agreement dated November 6, 2017.
The Company has received the consideration of Rs. 872.84 crores (subject to usual post completion adjustments) from IRC today, i.e. June 1, 2018. The consideration includes Rs. 572.76 crores in cash and balance by way of letters of credit/bank guarantees. Subsidy receivables were not included in the transaction.
Thus, on completion of the transaction, the Divestment Business of the Company pursuant to the BTA stands transferred to IRC Agrochemicals effective June 1, 2018.
Earlier this year the Company also announced the completion of sale of the Urea business to Yara Fertilisers India for a consideration of Rs.2682 Cr.
Mr. R. Mukundan, Managing Director, Tata Chemicals Ltd., said “The sale of the fertilizer and regulated farm business is in line with our strategic direction to unlock value and pursue growth potential in our focus areas. With today’s announcement, I am pleased to say that we have successfully completed our first stage of transformation. The company is poised for growth with a transformation agenda built on Innovation, Sustainability and Digitisation.
We are excited to explore the opportunities that lie ahead for us as we move forward with a focus on specialty chemicals and consumer food business, while maintaining leadership in Inorganic Chemicals Business. The company will continue to have a presence in the farm business through its subsidiary Rallis and Metahelix"
About Tata Chemicals
A part of the over US$ 100 billion Tata Group, Tata Chemicals Limited, is a global company with interests in businesses that focus on LIFE —Living, Industrial and Farm Essentials. The story of the company is about harnessing the fruits of science for goals that go beyond business.
Through its Living Essentials portfolio the company has positively impacted the lives of millions of Indians. Tata Chemicals is the pioneer and market leader in India’s branded Iodised salt segment. Extending its portfolio from salt to other food essentials, TCL unveiled India’s first national brand of pulses, followed by a range of spices. Tata Chemicals has been rated as one of the top 10% in Business and Consumer brands across all industry and consumer brand categories in India by Superbrands™.
The company’s Industry Essentials product range provides key ingredients to some of the world’s largest manufacturers of glass, detergents and other industrial products. Tata Chemicals currently is the world’s third largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. With its Farming Essentials portfolio the company through its subsidiary Rallis, has a strong position in the crop protection business. The Tata Chemicals Innovation Centre is home to world class R&D capabilities in the emerging areas of food sciences, nanotechnology and biotechnology.
For more information please contact:
R Nanda | Keya Muriya
Tata Chemicals Ltd.
Tel: +91 22 66657860 |+ 91 9819635036
Email: rnanda@tatachemicals.com; kmuriya@tatachemicals.com
Anand Rao | Vilas Bade
Adfactors PR
Mobile: 9820199367 / 8007771343
Email: anand.rao@adfactorspr.com; vilas.bade@adfactorspr.com