Aditya Birla Group conglomerate Grasim Industries on Thursday announced the sale of its fertilisers business to Indorama Corporation for Rs 2,649 crore. "The transfer of the business will be for a lump-sum cash consideration of Rs 2,649 crore to be paid by IIP to Grasim. This consideration is commensurate to the strength and future potential of the business," it said. The divestment of the fertiliser business is a significant value unlocking exercise for Grasim. It will further enable the company to pursue growth opportunities in its core businesses, the filing added.
The fertiliser unit had a turnover of Rs 2,679.51 crore in 2019-20 accounted for 3.45 per cent of the total consolidated turnover of Grasim Industries, it said. Grasim Industries MD Dilip Gaur said, "The divestment of the fertiliser business by Grasim is a strategic portfolio choice and unlocks value for the shareholders. It is in line with the strategic thrust of the company to focus on core businesses."
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 fertiliser player to own IGF, he added.
Indo Gulf Fertilisers is engaged in manufacturing, trading, and sale of urea and other agri-inputs with a 1.2 million tonnes per annum urea manufacturing plant at Jagdishpur in Uttar Pradesh.
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