Our unique approach to raw material sourcing, along with our backward integrated manufacturing process, gives us a competitive edge in the fertilizer market. Our integrated value chain begins with the strategic sourcing of raw materials from trusted long-term suppliers.
We make use of five primary raw materials in our manufacturing processes — namely, phosphate rock, ammonia, phosphoric acid, sulphur and muriate of potash. Our long-term supply contract with our promoter OCP Group, custodian of 70% of the world’s phosphate reserves, is an asset here. It allows us to secure phosphate rock at a competitive price and manufacture phosphoric acid in-house at Paradeep plant. In fact, Paradeep plant produces 14% of India’s phosphoric acid, making us the country’s second-largest private sector producer. As a result of our backward integration in phosphoric acid, we enjoy a significantly higher margin than our competitors and are well-protected from volatile market prices.
Following a similar strategy, our Goa facility is backward integrated in nitrogen — excess ammonia from urea production is utilised in running one of its NPK trains. We also have a long-term agreement with GAIL for the procurement of Regasified Liquefied Natural Gas (RLNG), a key raw material used in ammonia and urea production.
Long-term raw material security
More efficient production capabilities
Increased purchasing power for other raw materials
Higher profit margins
Protection from price volatility
As part of our backward integration strategy, we have established long-term agreements with both local and overseas suppliers to secure phosphate rock, phosphoric acid, sulphur, ammonia and MOP at competitive prices.
Paradeep plant procures phosphate rock exclusively from OCP Group to produce phosphoric acid in-house.
Our Goa facility purchases phosphoric acid directly from OCP Group on a long-term basis.
We procure molten sulphur from manufacturers and traders in the Middle East.
We source ammonia from manufacturers in the Middle East.
We purchase MOP from suppliers in Jordan as well as on a spot basis.