Published On:October 22 2016
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Morocco's OCP, Kribhco tie up forfertiliser plant in Krishnapatnam.
OCP and Kribhco have entered into a 50:50 joint venture to develop a greenfield NPK fertiliser plant at Krishnapatnam in Andhra Pradesh.
This fertiliser plant will require an initial investment of approximately $230 million and have an annual production capacity of 1.2 mt of NPK fertilisers.
Furthermore, the project also includes the development of logistical infrastructure in the region.
The venture would provide indigenous NPK fertilisers to Indian farmers by leveraging Kribhco’s deep knowledge of the market and farmers’ requirement, as well as OCP’s expertise.
Moroccan company OCP’s Chairman and CEO, Mostafa Terrab, in a statement said: “We believe large-scale local investments designed to respond to farmers’ specific needs is the key ingredient to the successful agricultural ecosystem development. As one of the major cooperatives in India, Kribhco is an excellent partner to develop a farmer-oriented agricultural input joint venture.”
“This partnership is designed to be a win-win project for all the stakeholders involved, but foremost for India’s agriculture and particularly for Indian farmers,” he said.
Kribhco Chairman Chandra Pal Singh said: “Proposed JV is a unique example of global cooperation between two leading organisations joining hands to make available phosphate-based fertiliser products to Indian farmers by channelising their respective strengths. Farmers would benefit from the continued supply of various NPK grade products, based on the best quality phosphate in the world”.
Kribhco MD N. Sambasiva Rao said the NPK grade of fertilisers were important for balanced fertilisation of soil and nutrition to the crop according to its requirement.
“The proposed project will unlock the hidden value of the soil and crop of farmers and will add to their all-round prosperity,” he said.
The venture is expected to be the first step in a broader strategic cooperation between both the groups that could include Kribhco’s investment in a phosphoric acid unit in Morocco.