VASCO
Zuari Agro Chemicals Limited ( ZACL ), the agriculture vertical of the Adventz Group, has completed the sale of its Goa fertiliser plant to Paradeep Phosphates Limited ( PPL ), incidentally a subsidiary of its own joint venture company for $ 280 million (about Rs2,135 crore).
The sale was completed on Tuesday, the company's sources said, adding that the Zuarinagar plant's new owner, PPL, is a subsidiary of its own joint venture Zuari Morocco Paradeep Phosphate Limited (ZMPPL).
When contacted ZACL Chief Manufacturing Officer (CMO ), Nilesh Desai, said that the sale was in effect a strategic business transfer.
"ZACL company's Goa Fertilizer plant and other allied business related to this plant have been sold to PPL on a slump sale basis through a business transfer agreement between ZACL and PPL, which is a sister concern of ZACL," Desai said, adding that ZACL owns 40 percent shares of PPL.
"It is more of a strategic business arrangement wherein the Goa Plant and its allied businesses have been transferred to PPL. Our product Urea under the brand name Jai Kissan will remain the same and we will sell the same fertilizer in the market," Desai said, adding that even the employees will remain the same.
This is just a transfer of business to PPL on a slump sale basis. Zuari Agro Chemicals is a very big company and we have many plants but only the Goa Fertilizer plant has been sold to PPL on slump sale, the top official said.
"There is no change or any issues with regard to employees and they all will remain as they are. I am the CMO and I will continue as the CMO who will be handling the Goa plant and reporting to the Corporate office and the CEO of PPL," he said, adding that they will all now become employees of PPL.
