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Business Standard
17 hours ago
- Business
- Business Standard
Paradeep Phosphates eyes ₹1,500 cr expansion to double market share by FY26
Fertiliser manufacturer Paradeep Phosphates Ltd (PPL) plans to invest over ₹1,500 crore in capacity expansion over the next three years, targeting sales of 3 million tonnes in FY26 as it seeks to double its market share in India's 20-million tonnes phosphatic fertiliser sector. The Bhubaneswar-headquartered company, which reported nearly ₹14,000 crore turnover in FY25, aims to increase its market share from 12 per cent to 25 per cent by expanding production capacity from 2.6 million tonnes to 3.7 million tonnes by 2026. "Fertiliser sales have really picked up early this season with robust growth at retail and farmer levels. The water availability across our marketing areas has been quite good," PPL Managing Director and CEO Suresh Krishnan told PTI in an interview. The PPL's expansion strategy centres on the amalgamation of Mangalore Chemicals & Fertilize₹Ltd (MCFL), expected to close in the third quarter of the current financial year. This acquisition will add 7,00,000 tonnes of additional capacity, and enable construction of a new 6,00,000 tonnes phosphatic fertiliser plant in Mangalore. Listed in 2022, the company plans to increase granulation capacity by over one million tonnes across its west coast and east coast operations, while expanding phosphoric acid manufacturing capacity by 40 per cent from 5,00,000 tonnes to over 7,00,000 tonnes by end-2026. Combined with existing facilities - 1.8 million tonnes at Paradeep, 8,00,000 tonnes in Goa, and 3,00,000 tonnes at Mangalore - total phosphatic fertiliser capacity will reach 3.7 million tonnes. The company also operates 9,00,000 tonnes of urea capacity. Krishnan emphasised that the expansion will be funded through internal accruals and selective borrowing, leveraging the company's robust balance sheet. PPL maintains a capital of over ₹4,300 crore with long-term debt under ₹1,000 crore. "With the amalgamation of MCFL and the end of this year financial results, we expect that our net worth will be well over ₹5,500 crore," he said. The company's free cash flow generation provides the capability to finance annual capital projects of ₹1,000-1,500 crore without straining its debt profile, he added. Despite backward integration efforts, PPL continues securing long-term supply agreements for key raw materials. The company has locked in 1.6 million tonnes of rock phosphate supply with Morocco's OCP, which controls 70 per cent of global known rock reserves. "OCP in Morocco primarily controls over 70 per cent of the known rock reserves in the world. So they are a solid partner for us, both on an equity end and also as a strategic partner for our manufacturing," Krishnan explained. The company is expanding sulfuric acid capacity from 1.3 million tonnes to 2 million tonnes annually, with completion expected in three months. PPL sources 400,000 tonnes of sulfur yearly from Middle East supplie₹and Indian refiners, including Indian Oil Corporation. For ammonia requirements, the company maintains supply relationships with Saudi Arabia, the UAE, and Qatar, with plans to deepen these partnerships for long-term supply security. The expansion comes as India grapples with supply chain challenges in phosphatic fertilisers. Against a total demand of 20 million tonnes, domestic manufacturing capacity stands at only 14 million tonnes, requiring imports of 6-7 million tonnes annually. Krishnan said China's reduced exports have created particular challenges, with India previously importing about 2 million tonnes of DAP from its eastern neighbour. However, Morocco and Saudi Arabia have increased supplies to help fill the gap. "We believe that India's own production for this Atmanirbhar (self-reliance) strategy that the government of India has, needs to really create more capacities," he said. To achieve its 25 per cent market share target, PPL focuses on manufacturing one of the industry's widest ranges of NPK grades, including unique formulations like 19-19-19, of which it is India's sole manufacturer. The company is also targeting annual growth of 20-25 per cent in its nano-fertiliser business. After acquiring MCFL, PPL will operate seven granulation trains, enhancing its ability to produce varied NPK (nitrogen, phosphorus and potassium) combinations for different crop and soil requirements. The strategy emphasises "balanced fertilisation of the soil" through crop-specific and soil-specific nutrient combinations. Krishnan praised the government's Nutrient-based Subsidy (NBS) scheme as "one of the most positive policy initiatives" for the fertiliser industry over the past 15 years. The scheme provides a profit visibility of 8-12 per cent before tax, depending on integration levels. The government has maintained fertiliser price stability despite global geopolitical challenges since 2022, absorbing cost increases through higher subsidies rather than allowing retail price hikes that would burden farmers. "Government has ensured that the price hike, which happened because of global geopolitical challenges, did not finally translate to MRP increases," he said. Looking ahead, Krishnan expects continued growth in the phosphatic fertiliser market while maintaining strategic supply chain partnerships to achieve above-average business growth. The fertiliser industry has faced disruptions from geopolitical tensions affecting traditional suppliers, including Russia and China, making domestic capacity expansion strategic for India's food security. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
18 hours ago
- Business
- Time of India
Paradeep Phosphates targets Rs 1,500 crore expansion to double market share by FY26
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: Fertiliser manufacturer Paradeep Phosphates Ltd (PPL) plans to invest over Rs 1,500 crore in capacity expansion over the next three years, targeting sales of 3 million tonnes in FY26 as it seeks to double its market share in India 's 20-million tonnes phosphatic fertiliser Bhubaneswar-headquartered company, which reported nearly Rs 14,000 crore turnover in FY25, aims to increase its market share from 12 per cent to 25 per cent by expanding production capacity from 2.6 million tonnes to 3.7 million tonnes by 2026."Fertiliser sales have really picked up early this season with robust growth at retail and farmer levels. The water availability across our marketing areas has been quite good," PPL Managing Director and CEO Suresh Krishnan told PTI in an PPL's expansion strategy centres on the amalgamation of Mangalore Chemicals & Fertilizers Ltd (MCFL), expected to close in the third quarter of the current financial acquisition will add 7,00,000 tonnes of additional capacity, and enable construction of a new 6,00,000 tonnes phosphatic fertiliser plant in in 2022, the company plans to increase granulation capacity by over one million tonnes across its west coast and east coast operations, while expanding phosphoric acid manufacturing capacity by 40 per cent from 5,00,000 tonnes to over 7,00,000 tonnes by with existing facilities - 1.8 million tonnes at Paradeep, 8,00,000 tonnes in Goa, and 3,00,000 tonnes at Mangalore - total phosphatic fertiliser capacity will reach 3.7 million tonnes. The company also operates 9,00,000 tonnes of urea emphasised that the expansion will be funded through internal accruals and selective borrowing, leveraging the company's robust balance maintains a capital of over Rs 4,300 crore with long-term debt under Rs 1,000 crore."With the amalgamation of MCFL and the end of this year financial results, we expect that our net worth will be well over Rs 5,500 crore," he company's free cash flow generation provides the capability to finance annual capital projects of Rs 1,000-1,500 crore without straining its debt profile, he backward integration efforts, PPL continues securing long-term supply agreements for key raw company has locked in 1.6 million tonnes of rock phosphate supply with Morocco's OCP, which controls 70 per cent of global known rock reserves."OCP in Morocco primarily controls over 70 per cent of the known rock reserves in the world. So they are a solid partner for us, both on an equity end and also as a strategic partner for our manufacturing," Krishnan company is expanding sulfuric acid capacity from 1.3 million tonnes to 2 million tonnes annually, with completion expected in three sources 400,000 tonnes of sulfur yearly from Middle East suppliers and Indian refiners, including Indian Oil Corporation For ammonia requirements, the company maintains supply relationships with Saudi Arabia, the UAE, and Qatar, with plans to deepen these partnerships for long-term supply expansion comes as India grapples with supply chain challenges in phosphatic fertilisers. Against a total demand of 20 million tonnes, domestic manufacturing capacity stands at only 14 million tonnes, requiring imports of 6-7 million tonnes said China's reduced exports have created particular challenges, with India previously importing about 2 million tonnes of DAP from its eastern neighbour. However, Morocco and Saudi Arabia have increased supplies to help fill the gap."We believe that India's own production for this Atmanirbhar (self-reliance) strategy that the government of India has, needs to really create more capacities," he achieve its 25 per cent market share target, PPL focuses on manufacturing one of the industry's widest ranges of NPK grades, including unique formulations like 19-19-19, of which it is India's sole company is also targeting annual growth of 20-25 per cent in its nano-fertiliser acquiring MCFL, PPL will operate seven granulation trains, enhancing its ability to produce varied NPK (nitrogen, phosphorus and potassium) combinations for different crop and soil strategy emphasises "balanced fertilisation of the soil" through crop-specific and soil-specific nutrient praised the government's Nutrient-based Subsidy (NBS) scheme as "one of the most positive policy initiatives" for the fertiliser industry over the past 15 years. The scheme provides a profit visibility of 8-12 per cent before tax, depending on integration government has maintained fertiliser price stability despite global geopolitical challenges since 2022, absorbing cost increases through higher subsidies rather than allowing retail price hikes that would burden farmers."Government has ensured that the price hike, which happened because of global geopolitical challenges, did not finally translate to MRP increases," he ahead, Krishnan expects continued growth in the phosphatic fertiliser market while maintaining strategic supply chain partnerships to achieve above-average business fertiliser industry has faced disruptions from geopolitical tensions affecting traditional suppliers, including Russia and China, making domestic capacity expansion strategic for India's food security.
The Hindu
04-07-2025
- Business
- The Hindu
Visakhapatnam Junction to have 14 platforms to cater to the growing demand
The redevelopment of Visakhapatnam Railway Station, which is among the top 20 stations in India in passenger revenue for the financial year 2023-24, has begun after much delay. Visakhapatnam Junction will have 14 platforms to cater to the growing demand. In fact, Visakhapatnam Junction was the highest revenue earner among all the railway stations in the Bhubaneswar-headquartered East Coast Railway (ECoR) during 2022-23 and 2021-22 financial years also, according to data obtained by Kanchumurthi Eswar of Duvvada under the RTI Act. It may be recalled that Prime Minister Narendra Modi had laid the foundation stone for redevelopment of Visakhapatnam Railway Station, at an estimated cost of ₹456 crore, on November 12, 2022. The redeveloped station is designed to cater to the needs of 75,000 passengers a day. The work commenced in the first quarter of 2023 but was subsequently held up reportedly due to issues with the contractor. Notwithstanding the delay, there is enough reason for people of the city to cheer up. The redeveloped Visakhapatnam Junction will have six new platforms taking the total to 14. It may be recalled that a survey for construction of new platforms was conducted more than a decade ago to reduce the congestion at the station. There were demands for construction of four additional platforms ever since. The station redevelopment plan originally included provision for construction of two new platforms. A revised DPR submitted to make Visakhapatnam Junction as a terminal station with six additional platforms, major yard remodelling works to prevent criss-crossing of trains, leaving and entering Visakhapatnam Railway Station, is under consideration of the railways, according to sources. It is learnt that of the six new platforms, two would be terminal platforms for the operation of Vande Bharat Express trains, which do not require engine reversal. A coach maintenance depot would be established in Visakhapatnam for the maintenance of Vande Bharat express trains. 'The revised master plan for redevelopment of the entire station, including yard redevelopment, provision of new escalators and 12 m wide FOB have been submitted, and it is under consideration of the authorities concerned,' Divisional Railway Manager Lalit Bohra told The Hindu. 'The delay in the redevelopment work of the station is because the old contractor approaching the court on the issue. We (railways) have won the case and the construction work would be hastened,' he added.
