Zuari Agrochemicals sells Goa fertilizer plant to Paradeep Phosphates Ltd

The Goa plant of ZACL is engaged in the manufacture, distribution, imports and sale of urea, DAP and various grades of NPK fertilizers under the 'Jai kisaan' brand, with a total installed capacity of 1.2 million tpy.

The divestment of the Goa plant by ZACL is aimed at consolidating the bulk fertilizer business and achieving a significant reduction of leverage of the company.

With this restructuring move, the company now has a clearly earmarked venture into specialty nutrients and retail through its wholly owned subsidiary Zuari FarmHub Ltd (ZFHL) and the bulk business of Goa plant and Paradeep operations consolidated under its joint venture, Paradeep Phosphates Ltd (PPL). This apart, the company continues to own 54.03% shareholding in the South India focused company Mangalore Chemicals & Fertilizers Ltd (MCFL). Going forward, the company intends to focus a dual strategy of growing the bulk fertilizer business through PPL & MCFL and the speciality business through ZFHL.

PPL and ZACL will shortly be signing the definitive Business Transfer Agreement (BTA) with regard to this transaction. The lump sum consideration, based on an Enterprise Value of US$280 million, is subject to certain adjustments as agreed between the parties in the BTA.

Read the article online at: https://www.worldfertilizer.com/project-news/05032021/zuari-agrochemicals-sells-goa-fertilizer-plant-to-paradeep-phosphates-ltd/