Coromandel International, India's leading phosphatic fertilizer company, has completed the acquisition of a 45 percent equity stake in Senegal-based Baobab Mining and Chemicals Corporation (BMCC), the government announced on Wednesday.
"As part of the Atma Nirbhar Bharat initiative to promote fertilizer self-sufficiency, the government has advised and supported Indian fertilizer companies in strengthening their back-end supply chain." Given the country's reliance on raw materials such as rock phosphate and phosphoric acid, India intends to secure supplies and hedge against price increases by expanding its footprint in mineral-rich countries through investments and multi-year import deals, according to the Fertiliser Ministry.
Fertilizer Minister Mansukh Mandaviya, who presided over the event in which officials from BMCC handed over the acceptance letter from the Government of Senegal to Coromandel, stated that the investment in Senegal's rock mines will be mutually beneficial for both nations and will strengthen their friendship.
"Mining will take place in Senegal, and DAP will be manufactured in India-10 lakh tonnes (lt) of diammonium phosphate (DAP) and nitrogen-phosphorus-potassium (NPK) will be produced," Mandaviya explained.
"India is strengthening its raw material supply security by investing in mineral-rich geographies," he added. The government has been working with the industry to make such investments possible in order to meet supply security goals for the country's fertilizer needs. We are committed to ensuring fertilizer availability for our farmers and will continue to work toward increasing domestic production and forming partnerships with other countries."
According to executive Vice-Chairman Arun Alagappan, the investment in BMCC will secure up to one-third of Coromandel's rock phosphate requirement while also helping to diversify its sourcing base.
The country's DAP imports increased 12% year on year to 54.62 lt in 2021-22. The country imports approximately 80% of its phosphatic fertiliser requirements, for which the government subsidy has increased significantly this year and last year. Despite global price increases, the government has guaranteed a retail price of around Rs 1350-1400 per 50 kg bag of DAP.
