India needs fertilizer, which can contribute to increasing the yield from local agricultural production and thereby the food supply. Ramagundam Fertilizer, which is a state-of-the-art fertilizer plant, will contribute to this and is also part of the Indian government’s strategy to ensure self-sufficiency in fertilizers.
Haldor Topsøe, IFU and the Danish Agribusiness Fund are investing DKK 150m in the new plant. The investment is made with a number of Indian companies, such as National Fertilizers Ltd., Engineers India Ltd. and Fertilizer Corporation of India Ltd. The total investment is DKK 5bn.
– Topsøe’s and IFU’s investment is an important part of the total financing, and we see it as a sign of confidence in the local management team and the project. Topsøe’s participation ensures optimal operational efficiency and high energy efficiency. Furthermore, the participation of Topsøe and IFU on the board will contribute with good corporate governance and technical vision, said Mr V.K. Malhotra, CEO of Ramagundam Fertilizer.
Efficient and sustainable production
Ramagundam Fertilizer, which is located in the state of Telangana, will replace a worn-out, closed factory, which was based on coal. The new fertilizer plant will use natural gas in production, and with Haldor Topsøe’s process and catalyst solutions it will become one of the most efficient and sustainable in India. Total annual production will be 1.3m tons urea, which corresponds to approximately four per cent of the Indian consumption.
– Topsøe has a long-standing presence in India, where our world-leading technologies have been instrumental in building a domestic fertilizer industry. We are therefore proud that we can expand our engagement through this investment in Ramagundam and contribute to the revival of the Indian fertilizer industry, said Amy Herbert, Executive Vice President and Deputy CEO of Haldor Topsøe.
An important contribution to Indian development
The Indian agricultural sector is of great importance, as it makes up a large part of the economy and also plays an important role in supplying food to the large population. Until 2005, India was self-sufficient in fertilizers, but today the country imports 25 per cent of the total annual demand of more than 30 million tons urea. Therefore, for the last ten years, the Indian government has focussed on increasing investments and production capacity within the country’s fertilizer sector. In addition to the production of fertilizer, the new plant will create 400 jobs and local tax payments.
– We are very pleased with our investment in Ramagundam Fertilizer, which is important to fulfil India’s ambition to be self-sufficient within the fertilizer which is crucial to the country’s development and the supply of food for more than 1.3bn Indians, said Torben Huss, Acting CEO of IFU.