IFFCO to invest $4 bn in next 3 yrs to expand capacity

Fertiliser cooperative major IFFCO and its joint venture partners will invest $4 billion over the next three years to expand the capacity of existing plants in India and set up facilities abroad.

"We, along with our JV partners, will invest $4 billion in the next three years to set up fertiliser plants in Argentina, Jordan and India," IFFCO Managing Director U S Awasthi said.

He, however, did not give details of how much investment to be made by IFFCO and the amount of money to come from its JV partners.

Awasthi said $1 billion would be invested to set up an ammonia plant in Argentina. Besides, he said IFFCO would build a phosphatic plant in Jordan through a JV.

In India, $1 billion each would be invested for expansion of existing plants in Gujarat and Andhra Pradesh.

When asked about the source of funding, he said about $3 billion would be raised through debt while the rest would come from internal accruals of IFFCO and its JV partners.

Awashi noted that the expansion would help in reducing country's dependence on imports.

IFFCO already has overseas investments in Oman, Senegal, Jordan, Australia and UAE.

Recently, IFFCO had picked up 20 per cent stake in GrowMax that owns potash deposit concessions over 820 sq km in Peru.

Growmax, a subsidiary of Americas Petrogas, is likely to start production in two and half years time with an initial capacity of 500,000 tonnes per annum, which could be doubled at a later date.

IFFCO has an offtake agreement for 50 per cent of the potash to be produced from the Bayovar project in Peru, Awasthi said, adding that imported potash would be used in the cooperative's Kandla and Paradeep plants.

India does not have any potash reserve and has to import around 6 million tonnes a year to meet its domestic demand, which is growing by three per cent each year.

"The stake buy in potash project, a maiden initiative by any Indian firm, will enable IFFCO to ensure continuity of supply of its potash requirements for DAP and MOP fertiliser production in the country," he said.