On January 28, 2021, CCI approved the acquisition of Indo Gulf Fertilizers (‘IGF’), the fertilizer division of Grasim Industries Limited (‘GIL’), by Indorama India Private Limited (‘IIPL’).^[1]

IIPL is a wholly-owned subsidiary of Indorama Holdings B.V., which is a Netherlands-based investment holding company. Indorama Holdings B.V., in turn, is wholly-owned by Indorama Corporation Group. IIPL is engaged in the business of phosphatic fertilizers, specialty plant nutrients and various grades of Nitrogen, Phosphorus and Potassium (‘NPK’) based fertilizers.

IGF is a division of GIL, which is a part of the Aditya Birla conglomerate. It is engaged in manufacturing, trading and selling urea, customized fertilizers, and agri-inputs such as plant and soil health products, including specialty fertilizers.

CCI found that the parties overlapped in the broad market of manufacturing and/or selling fertilizers, and in the following narrower segments: (i) primary nutrients of Nitrogen, Phosphorous and Potash and in micro-nutrients of Boron and Zinc; (ii) compound NPK fertilizers; (iii) considering each fertilizer product separately, in the sub-segment of Zinc Sulphate, Powdered Boron, Granulated Boron, Calcium Nitrate and City Compost.

CCI observed that the combined market shares of IGF and IIPL in the narrower segments were in the range of 0-16%. It also found each overlapping segment to be highly fragmented and characterized by the presence of several players.  It found that the transaction was not likely to cause any appreciable adverse effect on competition in India.

[1] Combination Registration No C-2020/12/796.