The company has decided to exit the shipping business in view of the long-term shipping industry outlook and the requirement of funds for a new ammonia-urea project, proposed to be set up in Rajasthan’s Kota district.
The company has decided to exit the shipping business in view of the long-term shipping industry outlook and the requirement of funds for a new ammonia-urea project, proposed to be set up in Rajasthan’s Kota district.
The sale is subject to the approval of the company's shareholders, Chambal Fertilisers told stock exchanges on Tuesday.
Chambal Fertilizers said that the Board gave its in-principle consent to the sale or disposal of one or more or all of the five ships owned by the company; or sell, transfer or dispose of the entire shipping undertaking or business of the company on slump sale basis or some other appropriate structure.
“The proposed transaction(s) will be consummated as and when the company receives commercially viable and acceptable offers from third parties in this regard,” the company said.
In 2004, Chambal Fertilisers had decided to enter the energy transportation sector and acquired India Steamship Co. Ltd., one of India’s oldest shipping companies.
Currently, India Steamship has a fleet capacity of over 5,00,000 DWT in the form of five Aframax tankers.
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