Indorama India Private Limited (“IIP”), an indirect subsidiary of Indorama Corporation Pte. Ltd., Singapore (“IRC”) has signed definitive documents with Grasim Industries, India (an Aditya Birla Group company) to acquire their Fertilizer business, Indo Gulf Fertilizers (“IGF) for a lump sum consideration of INR 26.5 billion (~US$ 355 million).
IGF is engaged in manufacturing, trading, and sale of urea and other agri-inputs including a plant to produce 1.2 mil tons per annum of Urea at Jagdishpur, Uttar Pradesh, India under its prominent “Shaktiman” brand in Northern India.
IIP shall acquire IGF as a slump sale transaction for the aforesaid lump sum consideration, which is subject to certain adjustments on closing, pursuant to the definitive documents. This acquisition is subject to necessary statutory and regulatory approvals.
Post-closing of this acquisition, Indorama will be the 3rd largest private sector producer of fertilizers in India, which will continue to benefit from the vibrant and growing agricultural sector in the country.
This acquisition will enable Indorama to add scale, breadth and capabilities to offer a complete range of agri-inputs to its farmer consumer base in Eastern, Northern and Central India.
Mr. Amit Lohia, Vice Chairman of Indorama Corporation, said, “We are pleased that with this acquisition, Shaktiman and the Paras brands will be able to join hands to offer a complete range of products for our farmers including urea, phosphate fertilizers, potash, soil health products, seeds, and crop protection products. We are excited about this union and believe it will facilitate greater access and development of high quality agri inputs for the farming community.”