Yara, one of the world’s leading fertiliser and crop nutrition company, acquired the urea business of Tata Chemicals for Rs 26.82 billion some time ago and got all the necessary regulatory clearances recently.
“Our growth strategy in India would be a mix of fresh acquisitions as and when it is suitable. And bringing newer and more products such as NPK (Nitrogen, Phosphorous, and Potash), secondary nutrients, and micro-nutrients into the Indian market, as our global product portfolio is quite large,” Narasimha Rao, CEO and president of Yara Fertilizers India told Business Standard.
He said Yara would also like to offer Indian farmers a complete package of solutions, including full product portfolio and application tools.
“We currently have a market share of around three per cent in urea and around 25 per cent in NPK, but would like to expand this further,” Rao said.
Yara entered urea market in India with the acquistion of Tata Chemicals. It was the first foreign direct investment in the highly-regulated urea sector. The deal included transfer of all assets and liabilities (working capital) of Tata Chemicals’ Babrala plant in Uttar Pradesh.
Yara’s turnover, about $40 million in India currently, would increase to $350 million, Rao said. With this acquisition, Yara gains a significant position in North India with access to a strong network of 650700 dealers.
“Globally, too, it has been our strategy to first develop a market, then look for assets and expand further and we plan to do the same here,” Svein Tore Holsether, President and CEO of Yara International said. He said after Brazil, India is the second most important destination for the company.
The Babrala plant of Tata Chemicals, commissioned in 1994, is the most energy efficient plant in India, with energy efficiency on par with Yara’s best plants across the globe.
According to Yara, the acquired plant has an annual production of 0.7 million tonnes ammonia and 1.2 million tonnes urea.
“The urea produced is allocated for Uttar Pradesh, Uttarakhand, Bihar, West Bengal, Punjab and Haryana. It will be marketed under Yara’s global brand name for premium urea products — YaraVera,” the company said.
Yara: At a glance
* Acquired Tata Chemicals for Rs 26.82 billion
* With this Yara gains a significant position in North India, with access to a strong network of 650700 dealers
* Plans for fresh acquisitions
* Plans to bring new products mainly in the crop nutrients segment for the Indian market
* 3% market share in urea
* 25% market share in NPK
* Turnover of about $40 million in India currently, will increase to $350 mn