Home >Companies >News >Grasim Industries announces sale of fertilisers biz to Indorama Corp for 2649cr
The fertiliser unit had a turnover of  ₹2,679.51 crore in 2019-20 accounted for 3.45% of the total consolidated turnover of Grasim Industries (Photo: Mint)
The fertiliser unit had a turnover of 2,679.51 crore in 2019-20 accounted for 3.45% of the total consolidated turnover of Grasim Industries (Photo: Mint)

Grasim Industries announces sale of fertilisers biz to Indorama Corp for 2649cr

Grasim Industries' board today approved the divestment of the company's fertiliser business, Indo Gulf Fertilisers, by way of a slump sale to Indorama India, a subsidiary of Indorama Corporation, the company said in a regulatory filing

NEW DELHI : Aditya Birla Group flagship firm Grasim Industries on Thursday announced the sale of its fertilisers business to Indorama Corporation for 2,649 crore.

Grasim Industries' board on Thursday approved the divestment of the company's fertiliser business, Indo Gulf Fertilisers, by way of a slump sale to Indorama India Pvt Ltd (IIP), a subsidiary of Indorama Corporation Pte. Ltd, Singapore, the company said in a regulatory filing.

"The transfer of the business will be for a lump-sum cash consideration of 2,649 crore to be paid by IIP to Grasim. This consideration is commensurate to the strength and future potential of the business," it said.

The divestment of the fertiliser business is a significant value unlocking exercise for Grasim. It will further enable the company to pursue growth opportunities in its core businesses, the filing added.

The fertiliser unit had a turnover of 2,679.51 crore in 2019-20 accounted for 3.45% of the total consolidated turnover of Grasim Industries, it said.

Grasim Industries Managing Director Dilip Gaur 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."

Indo Gulf Fertilisers is synonymous with strong performance and high sustainability standards. To take it to the next level in size and value, the company is pleased to have found in Indorama Corporation a credible fertiliser player to own IGF, he added.

"IGF will benefit from synergies and expertise of Indorama Corporation's existing agri portfolio," Gaur said.

Indorama Corporation Vice-Chairman Amit Lohia said that with this acquisition, Shaktiman and the Paras brands will be able to join hands to offer a complete range of products for farmers. That will include 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," he added.

Indo Gulf Fertilisers is engaged in manufacturing, trading, and sale of urea and other agri-inputs with a 1.2 million tonnes per annum urea manufacturing plant at Jagdishpur in Uttar Pradesh.

Grasim Industries said the lump sum consideration for the transfer of its fertiliser business to IIP on slump sale basis is subject to certain adjustments as agreed between the parties in terms of the definitive agreement and the scheme.

"The transaction is subject to the necessary statutory and regulatory approvals, including approvals of the NCLT, stock exchanges, Sebi, Competition Commission of India (CCI), respective shareholders and lenders / creditors of each of the companies," it said.

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