The Zuari Agro Chemicals Ltd. Board of Directors on Feb. 22 announced that it has approved the sale of the company’s nitrogen and NPK fertilizer plant at Goa and associated businesses to Paradeep Phosphates Ltd. (PPL) for an agreed enterprise value of $280 million. The board approved the sale in-principle last summer (GM June 26, 2020).
Zuari Agro Chemicals’ Goa site has four production units comprising ammonia and urea, as well as two NPK units. The company said it would use sale proceeds to reduce debt.
PPL is 80.45 percent owned by Zuari Maroc Phosphates Pvt Ltd., a joint venture between Zuari Agro Chemicals and Maroc Phosphore SA, a wholly owned subsidiary of OCP SA. The Indian government owns the remaining 19.55 percent interest in PPL.
PPL has 1.2 million mt/y production capacity for DAP, NPK, and NP.