Jubilant Industries to stop production at SSP plant in Rajasthan

Jubilant Industries Ltd, the flagship company of agri and performance polymers business of the Jubilant Bhartia group, has decided to temporarily stop single super phosphate (SSP) production from its Kapasan (Rajasthan) facility.
 
“Considering the unfavourable market conditions, the management of the company's material unlisted subsidiary, Jubilant Agri and Consumer Products Limited, have decided to temporarily discontinue the operations of its manufacturing facility located at Kapasan, Rajasthan engaged in the production of single super phosphate with immediate effect till further intimation,” said Jubilant Industries in a BSE filing on July 1, 2016.
 
The Kapasan manufacturing facility contributed revenues of Rs 4.01 crore for the financial year ended March 31, 2016 and its networth as on March 31, 2016 was Rs 50.43 crore, constituting 0.66 percent of the company’s consolidated revenue and 22.22 percent of the company's consolidated net worth.
 
SSSP, one of the main forms of phosphate fertilisers used in India, is a multi-nutrient fertiliser containing phosphate as primary nutrient and sulphur & calcium as secondary nutrients. It is preferred by small and marginal farmers due to lowest price per kg and is the cheaper source of sulphur.
 
SSP contributes around 15 percent to the total phosphate fertiliser usage in India, while in countries such as Egypt, China, Brazil, etc; the average contribution of SSP to the total phosphate fertilisers is much higher.