Deepak Fertilizers and Petrochemicals Corporation (DFPCL), a manufacturer of industrial chemicals and fertilisers, announced a corporate restructuring plan under which it will demerge its mining chemicals and fertilisers businesses.
According to the company, the corporate restructuring plan will aid in maximising each business’s potential for growth. It approved the merging of Mahadhan Farm Technologies (MFTPL), a wholly owned subsidiary of STL, with STL as well as the demerger of STL’s TAN business (mining chemicals) to DMSPL, a wholly owned subsidiary of DFPCL.
DFPCL has focused on increasing investments in greenfield expansions over the past few years, which has improved its operational performance, generated cash flows, and strengthened the balance sheet.
The proposed corporate reorganisation will significantly contribute to the development of robust independent business platforms under the larger DFPCL brand umbrella, thereby increasing stakeholders’ value over time.
“This drastic change in tactics was thought to be required to greatly improve customer experience, increase market share, and create a long-lasting brand. Both the Crop Nutrition and TAN businesses have reached strategic sizes and relevance levels that merit independent corporate identities and focused leadership in terms of growth trajectory and value creation “said the company.