Coromandel, GSFC tie up with Tunisian firm

Coromandel Fertilizers today announced that, along with Gujarat State Fertilizer Corporation, it had signed an agreement with Tunisia's Groupe Chimique Tunisien to make phosphoric acid. The total project cost would be around $ 180 million (about Rs 828 crore) and is scheduled to be completed by 2008.

A Murugappa Group press release said that the project would meet the phosphoric acid requirement of the group's fertiliser companies - Coromandel Fertilizers and Godavari Fertilisers. The requirement of Gujarat State Fertilizer Corporation would also be met through the deal.

Phosphoric acid is a key raw material in manufacturing phosphatic fertilisers and DAP. The deal with the Tunisian group is meant to secure the supplies of the Murugappa Group's phosphoric acid needs.

The Murugappa Group's fertiliser companies currently need 4.5 lakh tonne of phosphoric acid every year, and the demand is expected to grow by 20-40 per cent, over the next three years, said the press release.