Norwegian fertiliser giant Yara International has announced completion of its acquisition of Tata Chemicals’ 1.2 million tonnes per annum production capacity urea plant at Babrala in Uttar Pradesh.
The Rs. 2,682-crore acquisition deal includes transfer of all assets and liabilities (including working capital) relating to Babrala unit. It marks first foreign direct investment (FDI) in India’s highly regulated urea sector.
The acquisition represents a major step of Yara as it deepens its footprint in India, world’s second largest fertiliser market after China. Moreover, a greenfield urea-ammonia plant of this size at Babrala will entail a setting up cost of $1 billion.
Yara is headquartered in Oslo, Norway. Current it 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 banana, grapes, apples, sugarcane, chilli and vegetables grown mainly in Maharashtra, Karnataka, Andhra Pradesh and Himachal Pradesh.