Major Players in Indian Fertilizer Market
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The development trajectory of the agricultural industry derives its main stimulus from the growth in production of fertilizers in India. The fertilizer industry earlier witnessed the preponderance of the public sector units who still retain their status as the major players in Indian fertilizer market. Coupled with the private enterprisers manufacturing fertilizers, India has emerged as the third largest producer of the agro-input. The country has also emerged as one of the largest consumers of fertilizers along with China and the United States of America.
[br]The fertilizer sector in India holds a major share among the energy intensive industries of the country. The industry has shown unparalleled growth in the past few years. Although growing in an accelerating rate, the industry is faced with a number of challenges, inter alia, the lack of major plant resources such as nitrogen, phosphate and potassium. Notwithstanding these specificities, India produces both nitrogenous and phosphatic fertilizers in the domestic market. Urea and ammonium are the two popularly manufactured nitrogenous fertilizers in India. The various companies dedicated to the manufacture of fertilizers also produce straight phosphatic fertilizers such as single super phosphate and complex fertilizers such as di-ammonium phosphate or DAP. The lack of indigenous reserves of potash in India has stunted the production of potassic fertilizers in the country.The Indian fertilizer industry has a capacity of 56 lakh MT of phosphatic nutrient and 121 lakh MT of nitrogen. While the private sector has a huge installed capacity for phosphatic fertilizers, capacity utilization of nitrogenous fertilizers is higher in the public sector.
Sector-wise, Nutrient-wise Installed Fertilizer Manufacturing Capacity as on 31.01.2007
The government has established nine public sector undertakings in the Indian fertilizer market and one cooperative society, known as the Krishak Bharati Cooperative Limited (KRIBHCO) that functions under the supervision of the Department of Fertilizers in India. There are 63 large units dedicated to the production of fertilizers. Among these, 9 units produce ammonium sulphate while 38 units produce urea. There are 79 small and medium scale units producing single superphosphate.
The public sector companies in Indian fertilizer market are listed below:
Along with the public sector units, there has been a euphoric growth in the production of fertilizers in the private sector as well. Some of the companies dedicated to the production of fertilizers include Khaitan Chemicals and Fertilizers Limited, Managalore Chemicals, Nagarjuna Fertilizers, Zauri Chambal, BEC Fertilizers and Gujarat State Fertilizers &Chemicals Limited.
The fertilizer industry in India shows an upward rising trend that would challenge the broader market in future years. With an outstanding investment of Rs. 20, 677 Crore in the September, 2007 quarter, the sector will witness burgeoning production that will reach new heights in the coming years. Most of the companies are expecting an approval for their huge capital expenditure plans from the Department of Fertilizers in India. The flourishing industry will fill in the gap between demand and supply of fertilizers in India.
