Tata Chemicals said its board has approved the sale of its Haldia fertiliser unit in West Bengal to Netherlands-based Indorama Holdings BV for Rs 375 crore.
In a regulatory filing, the company said its board approved the sale of the Phosphatic fertiliser business by way of slump sale on a going concern basis to IRC Agrochemicals, a wholly-owned subsidiary of Indorama Holdings BV.
"The transaction would involve transfer of Haldia plant, trading business of bulk and non-bulk fertilisers along with immovable, movable properties, working capital and product brands but excluding outstanding subsidy amounts," it said.
The board also approved the execution of definitive agreements in this regard subject to regulatory approvals. Commenting on the development, Tata Chemicals Managing Director R Mukundan 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."
Tata Chemicals further said that the divestment is in line with its strategic direction to focus on speciality chemical and food businesses while maintaining leadership in inorganic chemicals.
The company's speciality chemical portfolio includes sodium bicarbonate business, agrochemicals through its subsidiary, Rallis India in addition to the planned investments in the greenfield sites in Nellore for nutraceuticals and in Dahej for the HD Silica business.
Its food business includes pulses, spices under Tata Sampann brand in addition to edible salt brand Tata Salt.
Tata Chemicals is amongst leading soda ash manufacturers in the world, with operations in India, Kenya, South Africa, the UK and the US.
Shares of the company rose by 0.78 per cent to settle at Rs 735.80 a piece on the BSE today.
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