Tata Chemicals Limited (TCL)

PO Durgachak

Haldia, District Purba

East Midnapore
West Bengal 721 602

HLCL is primarily in the fertilisers and chemicals business. Its integrated manufacturing complex produces bulk chemicals: sulphuric acid, phosphoric acid and phosphatic fertilisers like sodium tripoly phosphate (STPP), di-ammonium phosphate (DAP), NPK complexes and single super phosphate (SSP) fertiliser.

September 14, 2017 - Tata Chemicals has entered into discussions with Indorama Holdings BV, Netherlands (subsidiary of Indorama Corporation, Singapore) for selling its phosphatic fertiliser business at Haldia and the trading business comprising bulk and non-bulk fertilisers for a consideration of about Rs. 400-500 crore.  If the deal goes through, Tata Chemicals will exit the fertiliser business completely.  In August last year, Tata Chemicals sold its urea plant in Babrala, Uttar Pradesh, to the Indian unit of Norway-based Yara International for Rs. 2,670 crore. The company is awaiting final NCLT approval for the deal.  Tata Chemicals and Indonesia-based Indorama have signed an exclusive agreement on the sale of the Haldia plant. The agreement ends on October 31.  The potential transaction would be subject to due diligence, agreement on the definitive documents and approvals from the board, besides shareholders and regulatory authorities, said Tata Chemicals in a statement on Thursday.  The transaction, if it materialises, would involve transfer of the Haldia plant, trading business along with immovable, movable properties, working capital and product brands but excluding outstanding subsidy amounts, it added.  The Tata Chemicals Haldia plant has a production capacity of about 1.2 million tonnes per annum. It produces DAP (Di Ammonium Phosphate) and NPK (Nitrogen, Phosphorous, and Potash) fertilisers, sulphuric acid, phosphoric acid, sodium tripolyphosphate crop nutrition.  Production of phosphatic fertiliser at the Haldia plant was suspended for the entire June quarter due to lower sales volumes and higher input costs.  The delay in subsidy receivable from the government is one of the reasons for Tata Chemicals quitting the fertiliser business and focusing on high-margin agriculture products through its subsidiary Rallis India.  As of the June quarter, the subsidy receivable by Tata Chemicals from the Government was at Rs. 1,101 crore.  Indorama is a global chemicals company with 70 production facilities in 24 countries and a revenue of $7.2 billion from its integrated, diverse portfolio of chemicals, polymers and fibres.  Indorama Netherlands B.V. manufactures PET chips and polyester filament yarn. It manufactures and sells polyethylene terephthalate (PET) used in beverages, food, personal and homecare, pharmaceuticals and other consumer and industrial products.