India’s Basant Agro Tech acquires fert plants

22 May 2008 18:31  [Source: ICIS news]

NEW DELHI (ICIS news)--Basant Agro Tech India Limited (BATIL) said on Thursday that it had acquired a 75,000 tonne/year single super phosphate (SSP) plant and a 50,000 tonne/year nitrogen, phosphate and potash (NPK) mixture fertilizers plant in Madhya Pradesh State.

India’s fertilizers industry has stepped up acquisitions and alliances due to a policy regarding single super phosphate (SSP) announced last month by the government.

In a communication with the Mumbai Stock Exchange, the company said this acquisition, coupled with massive increase in SSP subsides under the new government policy, would substantially benefit it.

BATIL did not provide additional information on the acquisition. It already produces SSP and NPK fertilizers and also has presence in seeds business.

Another fertilizers and chemicals producer, DCM Shriram Consolidated Limited (DSCL) earlier this month acquired 81.41% equity stake in Shri Ganpati Fertilizers Limited, which operates a 198,000 tonne/year SSP plant at Chittorgarh in Rajasthan State.

A company official said that the acquisition was “very good addition to our agri portfolio”.

Meanwhile, both large fertilizer companies as well as small SSP producers are exploring prospects of marketing tie-ups as provided under the new policy.

Rashtriya Chemicals and Fertilisers Limited (RCF) is already in the midst of selecting SSP manufacturers whose product it would like to market.

The company said: “RCF intends to play important role in distribution and enhancing the capacity production of SSP during this critical shortage situation of DAP [diammonium phosphate] in Indian market.”

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By: Naresh Minocha
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