GNFC, EcoPhos to establish Rs 526-cr chemical proj in Gujarat

State-run GNFC will form a joint venture (JV) with Belgium-based EcoPhos for establishing a chemical project with an investment of Rs 526 crore at Dahej in Gujarat.
In the JV firm 'EcoPhos GNFC India Pvt Ltd', the equity investment would be in the ratio of 15:85 between GNFC and EcoPhos, respectively. As part of equity, GNFC will invest Rs 24 crore and RcoPhos Rs 134 crore.
"The company has signed Joint Venture (JV) agreement with EcoPhos for setting up of 2 lakh tonnes Di-Calcium Phosphate project at Dahej...At an estimated cost of Rs 526 crore," Gujarat Narmada Valley Fertilisers and Chemicals Ltd (GNFC) said in a regulatory filing.

The process of incorporating JV firm is underway, it added.
The GNFC will have one director on the JV's board and remaining 5 will be from EcoPhos. The Gujarat-based firm has nominated its Managing Director Rajiv Kumar Gupta as director on the joint venture firm's board.
The JV will also issue 1,500 equity shares of face value Rs 10 to GNFC and 8,500 equity shares to EcoPhos after requisite compliance.
The Di-Calcium Phosphate which would be produced by the this JV firm is mainly used as dietary supplement in prepared instant food products like breakfast cereals, and noodle products.