Deepak Fertilisers announced demerger of its mining chemicals and fertiliser businesses on Thursday. The move will help the company provide focused leadership, simplify its structure and add to growth potential. 

The restructuring would be done in line with the company’s strategic shift from commodity to speciality, the company said in an exchange filing. 

The board of directors of Smartchem Technologies – a wholly-owned subsidiary of Deepak Fertilisers and Petrochemicals Corporation – had in its meeting recently approved the corporate restructuring plan of its companies. 

This includes the demerger of the TAN Business (mining chemicals) from Smartchem to Deepak Mining Services, a wholly-owned subsidiary of Deepak Fertilisers and Petrochemicals Corporation, and amalgamation of Mahadhan Farm Technologies – a wholly-owned subsidiary of Smatchem – with Smartchem. 

Deepak Fertilisers Chairman and Managing Director Sailesh C Mehta said: “The proposed corporate restructuring shall considerably help create strong independent business platforms within the larger Deepak Fertilisers brand umbrella, hence enhancing stakeholders’ value over time.” 

Mr Mehta added that the Deepak Fertilisers Group’s strategy used to primarily focus on production, cost optimisation, capacity utilisation and improvement of efficiency. However, after extensive deliberation to deliver an outward consumer focus, a specified Transformation Strategy was executed.