Kribhco Plans to Establish Phosphorus and Potash Production Plant in India

India: Krishak Bharati Cooperative Limited (Kribhco), a manufacturer of fertilizers, mainly involved in the production of urea, revealed its plan to establish a phosphorus and potash (P&K) production facility in Krishnapatnam, Andhra Pradesh. The company will invest approximately USD150 million to set up 0.6 million tons production capacity plant in the state. The construction project is expected to be completed by 2019. At present, the company has an annual capacity to produce 2.2 million tons of urea at its facility in Gujrat. The company also has one urea production plant with capacity of 1 million tons per annum. Through the setup of P&K production plant, the company would grab the incentives offered to new entrants in Andhra Pradesh by the state government. As per the government incentives, the company will be provided power to its new plant at USD 0.015 per unit for next 10 years with exception of VAT for next 7 years. The company plans to save approximately USD75.19 million through government incentives.

TechSci Research depicts that the set-up of a new P&K production plant will boost the demand for PK fertilizers in the state. Additionally, through judicial use of government incentives, the company will be able to double the production capacity of the plant to 1.2 million tons per annum, thereby catering to the demand for fertilizer across India and thus globally.  

According to the report by TechSci Research, “Global Water Soluble Fertilizers Market, By Type, By Composition, By Grade, By Structure, By Application, By Crop, By Region, By Sales Channel, Competition Forecast and Opportunities, 2011-2021”, the global market for water soluble fertilizers is projected to grow at a CAGR of more than 5% over the next five years, on account of growing demand for food grains, depleting water levels, shrinking availability of arable land, coupled with high efficiency and ease of usage of water soluble fertilizers as compared to conventional chemical fertilizers. In 2015, Europe dominated the global water soluble fertilizers market, followed by North America and Asia-Pacific. The global market for water soluble fertilizers is highly consolidated and dominated by few major players such as Coromandel International Ltd., Yara International, Agrium Inc., and Haifa Chemicals Ltd.