Zuari looking to set up acid plant abroad

04 Apr 2011 Evaluate

Zuari Industries Ltd is looking to set up a phosphoric acid plant abroad as well as scouting for rock phosphate mines in North Africa and Australia.

Phosphoric acid is derived from rock phosphate, which is not available much in India. Phosphoric acid is used with ammonia to produce diammonium phosphate (DAP), a complex fertiliser used as a nutrient across farms in India. The company is currently setting up Rs 750-crore, 1-million tone di-ammonium phosphate (DAP) plant at Karwar in Karnataka. Zuari will need 0.4-0.5 million tones of phosphoric acid to produce 1 million tones of DAP. It will need 1.5-2 million tones of rock phosphate for which it wants to buy a mine or enter into a 10-20 year long-term contract with a supplier.

The DAP plant, and its backward integration is part of the group’s $2 billion (around Rs 10,000 crore) expansion in the next four years. It plans to spend Rs 5,000 crore to set up a 1.1 million tonnes urea plant in Belgaum, Rs 750 crore in a DAP plant and Rs 2,000 crore for an phosphoric acid plant with a possible mine acquisition. When implemented, the projects could double group’s turnover to $5 billion in five years.

Zuari Industries Share Price

331.50 -0.05 (-0.02%)
23-Dec-2024 09:32 View Price Chart
Peers
Company Name CMP
Redington 205.95
Adani Enterprises 2357.75
Amrapali Industries 17.77
Rashi Peripheral 423.15
Compuage Infocom 3.05
View more..
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt. Ltd.