Tata Chemicals, the renowned subsidiary of the Tata Group with a proportionate share in India specialty chemicals market, has apparently declared that its Board has officially approved the sale of one of its fertilizer units. As per sources, Tata Chemicals’ statement was mentioned in a regulatory filing, as it announced the Board’s approval of the sale of its Haldia fertilizer unit located in the state of West Bengal, India, to Indorama Holdings BV. Experts vouch that the sale of this phosphatic fertilizers business unit to IRC Agrochemicals, the wholly-owned subsidiary of the Netherlands-based Indorama Holdings BV, for a valuation of INR 375 crore is likely to make a mark in India specialty chemicals industry.
Sources claim that Tata Chemicals’ move is likely to prove beneficial for the company, specifically in terms of the stock price fluctuations. The reasons behind the claim are reportedly attributed to the fact that this sale would considerably lower the interest costs and subsidies borne by the company, in addition to increasing the cash inflows, which would reportedly be used to clear off some debt that the firm may be facing presently.
As per authentic reports, the sale is inclusive of the exclusive transfer of the Haldia plant, the bulk and non-bulk fertilizers business, and the working capital, movable and immovable properties, & myriad other product brands. The transaction however, excludes the outstanding subsidy amounts.
Industry analysts claim that now Tata Chemicals would retain its focus on the specialty chemicals market and its consumer food business unit.
In other news, it has been reported that specialty chemicals industry giant, Lanxess, has launched an all-new portfolio of iron oxide red pigments for the coatings domain. This all-inclusive product range has apparently been launched in specialty chemicals market post an intensive testing trial by the IPG (inorganic pigments) business unit.