India's Coromandel Acquires 45 percent of BMCC; Will Help Manufacturing DAP fertilizers
India’s Dependency on imports, for raw materials of fertilisers, is said to be reduced in upcoming years. In India, 15.3 Million Tonnes of indigenous deposits of high grade rock phosphate could meet hardly 35 percent of the total demand and remaining demand is met through its import. The government is also trying to solve the problem by advising and helping indigenous companies whenever needed.
In the same line, India’s one of the biggest players in fertilisers, Coromandel International Ltd, has announced to acquire 45 percent equity share in Baobab Mining and Chemicals Corporation (BMCC), a rock phosphate mining company based in Senegal. Union Minister of Health and Family Welfare and Minister of Chemicals and Fertilizers, Dr. Mansukh Mandaviya was present during the ceremony held for the same. An acceptation letter from government of Senegal has been given the Coromandal.
This acquisition will help the country to cope up with the shortage of Di-Ammonium Phosphate (DAP) based fertiliser. DAP is used for almost all crops, and helps to provide full phosphorus nutrition throughout crop growth and development, as well as a starter dose of nitrogen and low sulphur. Its quality of being soluble in the water makes it perfect to release plant-available phosphate and ammonium.
Speaking on the occasion, the Union Minister stated that “India is strengthening its raw material supply security by investing in mineral rich geographies. Government of India has been partnering with the industry to enable such investments to achieve supply security goals for meeting the country’s fertiliser needs. We are committed to ensure availability of fertilisers for our farmers and will continue to work towards ramping up domestic production and establishing partnerships with other countries”.
He also said that the country will enjoy relations with Senegal. The investment in the rock mines with Senegal will be mutually beneficial for both the nations and will further strengthen this relation. The mining will be done in Senegal and production of DAP will be done in India. 10 Lakh Metric Tonnes (LMT) of DAP and Nitrogen-Phosphorus-Potassium (NPK) will be manufactured.
Coromandel’s Executive Vice Chairman, Arun Alagappan thanked Government of India for its continuous guidance and encouragement towards establishing backward linkages for key raw materials for fertilisers. He said that the investment in BMCC will secure up to one-third of our rock phosphate requirement, diversify our sourcing base and drive self-sufficiency in our operations. the company will continue investing towards achieving Atma Nirbhar Bharat’s vision for building supply security in phosphatic fertilisers.