Rallis India, Tata Chem enter deal
Economic Times — October 24, 2002

As part of the restructuring initiatives in the Tata group, Rallis India and Tata Chemicals have entered into an understanding whereby the former will transfer its bulk fertiliser marketing arrangements to the latter. Tata Chemicals, had been selling urea through Rallis’ network, will sell the product through its own network. The transition will come into effect from April 1, ’03. Explaining the rationale, Tata Chemicals’ managing director Prasad Menon said that the company is the only urea producer which does not do its own marketing. The move will enable Tata Chemicals’ to gain complete control over the urea business. The transfer will optimize the marketing expenses leading to enhanced profitability, he said. The transition will also allow Rallis to focus on core business of specialty chemicals and R&D.