Grasim Industries will be selling the company’s fertiliser business, Indo Gulf Fertilisers (IGF), by way of a slump sale to Indorama India (IIP), a subsidiary of Indorama Corporation, Singapore, for a cash consideration of Rs 2,649 crore.
Indo Gulf Fertilisers is engaged in manufacture, trade and sale of urea and other agri-inputs with a 1.2 MTPA urea manufacturing plant at Jagdishpur in Uttar Pradesh. The divestment of the fertiliser business is a significant value unlocking exercise for Grasim. It will enable the company to pursue growth opportunities in its core businesses, the company said in a statement.
Dilip Gaur, managing director, Grasim Industries, said, “The divestment of the fertiliser business by Grasim is a strategic portfolio choice and unlocks value for the shareholders. It is in line with the strategic thrust of the company to focus on core businesses.”
Amit Lohia, vice chairman, Indorama Corporation, said, “We are pleased that with this acquisition, the Shaktiman and Paras brands will be able to join hands to offer a complete range of products for our farmers, including urea, phosphate fertilisers, potash, soil health products, seeds and crop protection products. We are excited about this union and believe it will facilitate greater access and development of high quality agri inputs for the farming community.”
The transaction is subject to the necessary statutory and regulatory approvals, including approvals of the NCLT, the stock exchanges, SEBI, Competition Commission of India, and the respective shareholders and lenders/creditors of each of the companies.