Zuari Agro Chemicals, a Saroj Poddar-controlled Adventz Group company, may sign an agreement with the UAE Government to set up an integrated phosphate plant at Ras al-Khaimah.
The UAE Government will offer land, infrastructure as well as tax concessions for the port-based facility. The ₹5,300-crore company had entered into a preliminary agreement for the one-million-tonne facility in November 2012.
“We expect to sign the agreement on March 31. It will mean the government of Ras al-Khaimah giving its firm commitment to provide for land and other facilities for the project. Our job is limited to setting up the project and running it,” Group Chairman Saroj Poddar told
Once the agreement is signed, Zuari will do a detailed feasibility study to finalise the project plan and estimated cost.
While funds can only be tied up once the feasibility report is ready, Poddar said initial discussions with bankers were fruitful. “There is lot of interest (among lenders),” he said.
Incorporated in 1967, Zuari has 30 per cent equity interest in Fosfatos del Pacifico (Fospac) of Peru through a joint venture, MCA Phosphates Pte Ltd, with Mitsubishi Corporation of Japan. The venture was formed in 2011 to invest in rock phosphates.
In India, Zuari produces a range of phosphatic fertilisers, either through its own facilities or through Odisha-based Paradeep Phosphates Ltd. To reduce focus on the regulated fertiliser market, the company recently started manufacturing speciality fertiliser that is sold at market determined rates. The Maharashtra-based Zuari Rotem Speciality Fertilisers Ltd, a 50:50 venture between Zuari and Rotem Amfert Negev of Israel, manufactures water soluble fertilisers.
Agri marketingThe company also retails seeds, pesticides, agri-nutrients etc. Zuari is now aiming to step up this business in order to reshape its corporate profile as a one-stop-shop for agri-inputs.
“We want to provide the farmer with all help and support in buying seeds, fertiliser, pesticides and so on,” Poddar said.