Grasim Sells Fertilizer Unit to Indorama
India’s Grasim Industries has agreed to sell its fertilizer business Indo Gulf Fertilisers (IGF) to Indorama India Private, a subsidiary of Singapore’s Indorama Corp., for a cash sum of about $355 million.
A flagship company of Indian conglomerate Aditya Birla Group, Grasim said the divestment is a “significant value unlocking exercise” and will further enable it to pursue growth opportunities in its core businesses. It added that the sale price is “commensurate to the strength and future potential of the business.”
Grasim’s board has approved the sale. The fertilizer business manufactures, trades and sells urea and other agricultural inputs. It operates a 1.2 million t/y urea plant in Jagdishpur, Uttar Pradesh.
Commenting on the deal, Grasim’s managing director Dilip Gaur said: “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 fertilizer player to own IGF. IGF will benefit from synergies and expertise of Indorama Corporation’s existing agri portfolio.”
Indorama’s vice chairman Amit Lohia added: “We are pleased that with this acquisition, Shaktiman and the Paras brands will be able to join hands to offer a complete range of products for our farmers including urea, phosphate fertilizers, potash, soil health products, seeds, and crop protection products.”
The business is to be transferred to Indorama on a “slump sale” basis, in accordance with a scheme of arrangement, and the lumpsum consideration is subject to certain adjustments as agreed between the parties. The transaction also remains subject to the necessary approvals and antitrust clearance.
Author: Elaine Burridge, Freelance Journalist
