Mumbai, Aug 10 (IANS) Tata Chemicals on Wednesday said it has sold its urea business to Yara Fertilisers India Private Limited for a consideration of Rs 2,670 crore.
“The Board of Directors has accepted the transfer of the business of sale and distribution of urea and customised fertilisers, manufactured by the company at its plants located in Babrala, Uttar Pradesh, by way of a slump sale by the company to Yara Fertilisers India Private Limited,” the company said in a filing to BSE.
The lump sum consideration for the transfer of the urea business of the company by way of a slump sale pursuant to the scheme is Rs 2,670 crore, the filing said.
The company said divestment of the urea business would unlock value for the company, strengthen its balance sheet and would help to pursue growth potentials and opportunities in line with its strategic directions.
“This marks a decisive move on the part of the company to move forward on its strategy to build consumer business while maintaining leadership in inorganic chemicals business and focusing the farm business through its subsidiary Rallis and Metahelix,” said the company’s MD R. Mukundan.
Yara India is the Indian arm of Norway’s Yara International ASA and it imports, sells and distributes plant nutrition products in the country.
“The urea business will now have the benefit of international network of Yara and its global expertise… The company will continue to own the brands Paras, TKS and Daksha. This transaction does not include specialty products and complex fertilisers,” the filing said.