Troubled Fertilizers and Agrochemicals player receives catalyst for renewed growth
Prominent public sector player adopts creative strategy to remain resilient and accomplish turnaround during adversity
The client’s challenge: Staying buoyant during the pricing norms revision for regulated fertilizers, higher feedstock prices, huge recovery of past subsidies, and market constraints
After successfully being in the business for over 4 decades, a prominent public sector Fertilizers and Agrochemicals company suffered losses for 3 consecutive years and saw its fortunes plummeting, mainly due to the revision in pricing norms, high-cost feedstock, recovery of past subsidies, and overall market challenges.
Additionally, deleterious factors internal to its management served the company a double whammy. The gravity of the situation that rather demanded attention and discussion for course correction worsened with the sponsors instead contemplating divestment. Lenders were quick to suggest liquidation of assets. Under the given circumstances, hopes for turnaround seemed forlorn.
