The Board of Directors of Tata Chemicals recently approved the sale, disposal and transfer of Phosphatic Fertilisers business and the Trading business comprising of bulk and non-bulk fertilisers (Divestment Business), by way of a slump sale on a going concern basis, by the company to IRC Agrochemicals Private Limited (IRC), a wholly owned subsidiary of Indorama Holdings BV, Netherlands (Part of Indorama Corporation Pte Ltd, Singapore 'Indorama') on the terms and conditions laid down in the Business Transfer Agreement (BTA), for a lump sum consideration of Rs. 375 crores subject to certain usual adjustments after closing as agreed between the parties in terms of the BTA.

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.

The Board of Directors also approved the execution of definitive agreements between the Company, IRC and Indorama Holdings BV, Netherlands for the sale and transfer of the Phosphatic Business from the Company to IRC pursuant to the BTA and subject to satisfaction of conditions precedent and all regulatory and other approvals as may be required, including the approval of the shareholders under Section 180(1)(a) of the Companies Act, 2013.

This divestment by Tata Chemicals Limited is in line with the strategic direction of the company to focus on speciality chemical and food businesses, while maintaining leadership in Inorganic chemicals and exiting the fertiliser business. The speciality chemical portfolio of the company 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. The company is amongst leading Soda Ash manufacturers in the world, with operations in India, Kenya, South Africa, UK and USA.

Speaking on the occasion R. Mukundan Managing Director, Tata Chemicals Limited commented that this move builds on our earlier announcement with regard to the sale of the urea business to exit the fertilisers businesses completely. 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. The Company is pleased to have found a partner with long term interest in the phosphatic and fertiliser business who would build this Phosphatic business further.