Sourcing and Backward Integration

Our Strategy

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.