Chambal Fertilizers to sell its shipping business to set up ammonia-urea project at Kota, Rajasthan

 Chambal Fertilizers and Chemicals Limited, part of KK Birla Group is one amongst the leading manufacturers of fertilizers in India. The company has decided to dissolve its shipping business by selling one or more out of all its five ships or vessels on the basis of some appropriate structure. The divestment is planned with the objective to raise funds for setting up new ammonia-urea project at Kota, Rajasthan. The existing urea manufacturing facility was temporarily shut in February, 2015 due to malfunctioning of the boiler unit and also in August, 2014 due to leakage in ammonia synthesis gas converter.

TechSci Research depicts that investment in ammonia-urea business would further strengthen Chambal Fertilizer’s market position in the India fertilizers industry as one of the leading players in addition to IFFCO, RCF, NFL, etc.

According to the recent report published by TechSci Research, “India Fertilizers Market Forecast & Opportunities, 2019", urea is the most widely consumed fertilizer in the country and accounted for majority chunk of the volume market. Urea is primarily consumed in north and south regions of the country. Urea being the prime fertilizer, the manufacturers are focusing on the same with increasing the investment in relation with the new investment policy for urea and high subsidies.