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Iffco procures OCFL unit
 
Iffco procures OCFL unit
OCFL unit(Oswal Chemicals & Fertilizers Ltds ) and DAP ( Di-ammonium phosphate) has been procured by Fertiliser Co- operative major Iffco in Paradip for Rs 2,180. Crore in all -cash deal. According to sources the largest cash deal in the fertiliser sector is that OCFL,s debts worth Rs 1,915 crore will be settled directly by Iffco and Oswals will get only Rs 265 crore. Due to underutilization and mounting inventories the DAP plant was incurring huge losses the sources described. Meeting is held on 28th september whereby the Iffcos board of directors will meet to ratify the deal for which the company has already advanced Rs 250 crore. Iffco is also undertaking control over the phosphoric acid plant, the entire Oswals township in Paradip, Orissa, and the railways siding unit at the site apart from the 2 million tonne DAP and fertiliser production unit. Financial Institutions and lead banks have been already informed about the deal by Iffco and Oswals.As Iffco is cash- rich without any long-term debt in its books the 17-member banks consortium is favourably leaning towards the deal. A 3 Member Iffco team led by its executive director,K.L Singh, has reached Paradip to commence joint operations revealed the sources. Production cost of phosphoric acid ,produced from Paradip facility, is expected to be in proximity of $445 per tonne. The attainment of Oswals DAP plant promoted as the worlds largest facility, is in addition to Iffcos $1 billion investment plans announced recently to setup green field phosphatic fertiliser facilities in the country and abroad.
Posted On : 9/19/2005 2:43:58 PM

 
 
 
Iffco procures OCFL unit