Paradeep Phosphates Limited (PPL) has an integrated manufacturing facility in Paradeep and currently operates a DAP and NPK production facility (annual granulation capacity of 1.4 million MT), a Sulphuric acid production plant and a Phosphoric acid production plant. The company has a backward integrated manufacturing process by producing the two other key raw material by value, Phosphoric acid and Sulphuric acid. Our primary raw materials include Phosphate Rock, Phosphoric acid, Sulphur, Ammonia and MOP.
Captive Power Units
PPL’s manufacturing facility at Paradeep, Odisha comprises of two captive power units of 16 MW each, designed to run on excess steam generated by our Sulphuric acid production plant, and a 23 MW power plant (total 55 MW). We also require furnace oil and high speed diesel for our manufacturing process and have entered into an agreement with a Government owned oil and gas corporation for the procurement of furnace oil and high speed diesel. Our manufacturing facility is equipped with a quality control laboratory where we test raw materials and finished products for quality and quantity.
Handling and Storage Facilities
- PPL’s manufacturing facility is strategically located near the Paradeep port, where we own a captive berth with 14 meters draft with facilities to unload solid and liquid cargo. As a result, we are able to meet loading and unloading schedules of the carriers and reduce demurrage charges.
- We have a 3.4 km long closed conveyor belt connecting the Paradeep port to our facility, which enables us to transport our raw materials in solid form directly to our facility. In addition, we have a 3.1 km long pipeline that enables us to transport raw material in liquid form directly to our facility, and also own a railway siding.
- In order to maintain a stable production cycle, have capacity to store up to 120,000 MT, 65,000 MT, 50,000 MT and 35,000 MT of Phosphate Rock, Phosphoric acid, Sulphur and MOP, respectively. We also have an Ammonia storage facility of approximately 40,000 MT.
- The ability to store raw materials at our facility enables us to withstand disruptions in supply as well as volatility in the price of raw materials for a short duration. Our storage facilities allow us to avoid suspending our production processes (particularly between peak fertiliser sale seasons), which are costly and time consuming to restart, and also enable us to accumulate products to satisfy market demand effectively during peak times by being able to meet the customers’ demand in full and on time.
Potential for Expansion
PPL also owns large parcels of land aggregating to over 2,000 acres in Paradeep, Odisha. The existing manufacturing facility is constructed on approximately 33% of such land parcel. Accordingly, we have the ability to further significantly expand our facilities on the remaining portion of the land parcel. Our captive berth with 14 meters draft at Paradeep port also has capacity to process additional unloading as our operations further grow.