Osloaa-Yara International ASA said Feb. 6 that it has signed a Heads of Agreement with Deepak Fertilisers and Petrochemicals Ltd., with the intention of establishing a joint venture company for the production and marketing of technical ammonium nitrate and specialty fertilizers. Yara will own 49 percent of the planned joint venture. The jv’s objective is to develop the technical ammonium nitrate market (TAN) in India. The jv will include the 300,000 mt/y TAN plant under construction at Paradip in Orissa on the east coast of India. Indian TAN consumption is approximately 400,000 mt/y and is growing at about 5-6 percent per annum, driven by strong coal demand for power generation. Deepak is the only major domestic producer of TAN, with a current installed capacity of 140,000 mt/y. The remaining demand is mostly met via imports. The jv will also review opportunities for the production and marketing of specialty fertilizers in the states of Maharashtra and Gujarat, where Deepak has a strong presence. The state of Maharashtra is India’s largest fruit and vegetable producing region and is the most attractive market for a wide range of specialty fertilizer products. Yara will contribute with its international expertise in nutrient management and application of specialty fertilizers for improving the productivity and quality of cash crops, thus improving farm economics in this region. Yara says the jv is expected to provide cost-effective solutions to the farming community and the mining and infrastructure sector in India. The heads of agreement will be converted into a final agreement after due diligence and the necessary company and regulatory approvals.
Transparency Across the Fertilizer Value-Chain