The board of Grasim Industries Ltd. has approved the divestment of the company’s fertiliser business, Indo Gulf Fertilisers by way of a slump sale to Indorama India Pvt. Ltd., a subsidiary of Indorama Corporation Pte. Ltd., Singapore for a lump sum cash consideration of ₹2,649 crore.
“This consideration is commensurate [with] the strength and future potential of the business,” Grasim said in a statement.
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.
This divestment would enable Grasim to pursue growth opportunities in its core businesses, it said.
Dilip Gaur, managing director, Grasim Industries, said: “The divestment is a strategic portfolio choice and unlocks value for shareholders. It is in line with the strategic thrust of the company to focus on core businesses”.