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IFFCO Eyes Global JV for Raw Materials
10 Dec
Summary
- IFFCO plans joint ventures in Sri Lanka, Jordan, and Senegal.
- The company seeks 100% buyback of finished fertiliser products.
- Geopolitical issues drive demand for overseas raw material sourcing.
India's largest fertiliser maker, IFFCO, is proactively establishing joint venture manufacturing facilities in countries like Sri Lanka, Jordan, and Senegal. This strategy aims to secure a 100% buyback of finished products, mitigating the increasing scarcity of critical raw materials in a fragmented global market. The company is exploring opportunities for producing diammonium phosphate (DAP) and phosphoric acid in these nations.
These international ventures are driven by the challenge of sourcing high-quality raw materials, which are not produced in India and must be imported. Geopolitical factors have recently led to price hikes and curbs on outbound shipments of rock phosphate and phosphoric acid, escalating production costs for DAP in India. IFFCO's MD, KJ Patel, highlighted this as a more viable option than paying higher prices or incurring greater financial burdens for raw materials.
IFFCO is also advancing its nano fertiliser products, with plans to launch nano granular NPK soon. While current sales of nano urea and DAP are below capacity, increased farmer awareness is expected to boost demand. The company's FY25 turnover reached ₹41,244 crore, with a profit after tax of ₹2,823 crore, demonstrating robust performance despite global supply chain complexities.
