Market and product
Nagarjuna Fertilisers plans urea plant in Nigeria
“We are planning to set up a factory with an initial capacity of one million tonnes. It might need an investment of Rs 5,000 crore,” Mr K.S. Raju, Chairman and Managing Director of NFCL, told Business Line. The company will pick a local partner there to form a joint venture. “We are exploring various options to set up the plant in Nigeria that offers huge reserves of raw material,” he said.
He, however, did not give any timeline for the establishment of the factory. “Africa as a whole and Nigeria in particular is holding good promise for fertiliser companies as several countries are encouraging foreign investments for developing the agriculture sector,” he said.
The company had recently signed an agreement with NMDC to jointly explore mining opportunities abroad with a particular focus on rock phosphate and potash. “They are very good in mining and exploration but do not have expertise in fertilisers. We are good in making fertilisers. The association of the two entities is expected to bring in these synergies,” Mr Raju said.
He, however, said that the two had not found a suitable mining opportunity as yet. Mr Raju said the company was planning to set up a new unit to prepare custom-made fertilisers for specific crops and geographies.
In 2009-10, the company registered a turnover of Rs 1,993 crore and a net profit of Rs 66 crore.
(Source: newsystocks.com)
