Chemicals and fibers manufacturer Grasim Industries Ltd. announced Friday that is Board of Directors approved a slump sale of its fertilizer business, Indo Gulf Fertilisers (IGF), to Indorama’s local subsidiary, Indorama India Private Ltd. (IIP).

“The divestment of the Fertilizer business by Grasim is a strategic portfolio choice and unlocks value for the shareholders. It is in line with the strategic thrust of the company to focus on core businesses,” Dilip Guar of Grasim said in a company press release. “Indo Gulf Fertilisers is synonymous with strong performance and high sustainability standards. To take it to the next level in size and value, the company is pleased to have found in Indrorama Corporation, a credible fertilizer player to own IGF.”

Indorama will pay Rs. 2,649 Cr. To Grasim under the terms of the transaction. Indo Gulf Fertilisers manufactures, trades, and sells urea and other agricultural inputs. The business currently operates a 1.2 million tn/yr urea production facility in Jagdishpur, Uttar Pradesh.

“We are pleased that with this acquisition, Shaktiman and the Paras brands will be able to join hands to offer a complete range of products for our farmers including urea, phosphate fertilizers, potash, soil health products, seeds, and crop protection products,” said Amit Lohia, vice chairman of Indorama Corporation, in a statement. “We are excited about this union and believe it will facilitate greater access and development of high quality agri inputs for the farming community.”

The transaction will close after regulatory approvals are secured and closing conditions are met.