Tata Chem sells Haldia plant to Indorama for 375 cr
The board of Tata Chemicals Ltd has approved the sale of its non-bulk phosphatic business to IRC Agrochemicals for ` 375 crore. IRC Agrochemicals is a wholly owned subsidiary of the Netherlands-based Indorama Holdings BV.
The transaction will involve sale of the fertilizer business, the assets attached to it as well as the company’s Haldia plant, Tata Chemicals said. The plant produces DAP (Di Ammonium Phosphate) and NPK (Nitrogen, Phosphorous, and Potash) fertilisers, sulphuric acid, phosphoric acid, sodium tripolyphosphate crop nutrition.
The Haldia plant (fertilisers segment) was temporarily closed earlier this year because of the ammonia pipeline relocation project and commissioning and a no- ` tice issued by the Central Pollution Control Board. The delay in subsidy receivable from the government is one of the reasons for Tata Chemicals to quit fertiliser business. As of June quarter, the subsidy receivable by Tata Chemicals from the government is about ` 1,101 crore.
R Mukundan, Managing Director, Tata Chemicals, said the company continues to move forward on its strategy to focus on speciality chemicals and consumer food business, while maintaining leadership in inorganic chemicals business.