Norwegian fertiliser giant Yara International, on Friday, announced the completion of its acquisition of Tata Chemicals Ltd’s 1.2 million tonnes per annum production capacity urea plant at Babrala in Uttar Pradesh.
“The acquisition represents a major step, as it deepens our footprint in the world’s second largest fertiliser
market,” Svein Tore Holsether, president and chief executive officer (CEO) of the Oslo-headquartered 95.2 Norwegian krone ($12.4 billion) company told newspersons here.
The Rs 2,682-crore deal includes the transfer of all assets and liabilities (working capital) relating to the Babrala unit, while marking the first foreign direct investment in India’s highly regulated urea sector.
“A greenfield urea-ammonia plant of this size will entail a setting up cost of $1 billion. So, this is a worthwhile acquisition for us, more so given that it was being operated by the Tata Group and with energy efficiency on par with any of our urea plants across the globe,” said Narasimha Rao, CEO and president, Yara India.
Yara does annual sales of $35-40 million in India. Much of it comprises premium micronutrients, complex and water-soluble fertilisers used in high-value crops such as apples, banana, grapes, sugarcane, chilli and vegetables. These are grown mainly in Maharashtra, Karnataka, Andhra Pradesh and Himachal Pradesh.