Deepak Fertilisers signs pact with Yara to produce fertilisers

Pune: Yara International ASA and Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) signed a heads of agreement for establishing a joint venture company to produce and market ammonium nitrate and speciality fertilisers in India, a statement has said.

Yara is a $14-billion Norway-based global leader in ammonia, speciality and bulk fertilisers and Ammonium Nitrate(AN), industrial gases and other diversified chemical and pollution control products. DFPCL is an integrated chemicals and fertilisers major and has a market capitalisation of approximately $250 million. DFPCL will own 51 per cent of the joint venture while Yara will own the rest.

The heads of agreement would be converted into a final agreement after a due diligence and mandatory approvals.

The joint venture will review opportunities for production, marketing and import of speciality fertilisers in focused states viz. Maharashtra and Gujarat, where DFPCL has considerable strengths. It will also invest in the 300,000 mt per annum plant under construction at Paradip in Orissa.

Yara will bring its international expertise in nutrient management and application of speciality fertilisers for improving farm productivity and quality. The joint venture with Yara is expected to provide cost effective solutions to farmers and the mining and infrastructure sector in India.