NEW DELHI: Tata Chemicals Limited on Wednesday announced that it will sell its business of sale and distribution of urea and customised fertilizers manufactured at Babrala, Uttar Pradesh, to Yara Fertilisers India Private Limited for a consideration of Rs 2,670 crore.
However, Tata Chemicals will continue to own the brands Paras, TKS and Daksha. The urea business along with the assets, liabilities, contracts, deeds etc shall be transferred and vested with Yara India on a slump sale basis, Tata Chemicals said on Wednesday.
The company said that the divestment is in line with the strategic direction of the company to continue to strengthen the fertiliser businesses by partnerships and transfer of ownership to world class companies. “The divestment of the urea business by Tata Chemicals will unlock value for the company, strengthen its balance sheet and will help to pursue growth potentials and opportunities in line with its strategic directions,” the company statement said.
R. Mukundan, managing director, Tata Chemicals said the sale marks a decisive move on part of the company to move ahead on its strategy to build consumer business while maintaining leadership in inorganic chemicals business and focusing the farm through its subsidiary Rallis and Metahelix.