Kribhco and Morocco's OCP to set up $230 mn fertiliser plant in AP

Krishak Bharati Cooperative Limited (Kribhco) and Morocco’s OCP have formed a 50:50 joint venture firm to develop a large-scale greenfield NPK fertiliser plant in Krishnapatnam, Andhra Pradesh.

The plant, to be built with an initial investment of approximately $ 230 million (about Rs 1,500 crore), will have an annual production capacity of 1.2 million tonne (MT) of NPK fertilisers. Furthermore, the project also includes the development of logistical infrastructure in the region.

“Proposed JV is a unique example of global cooperation between two leading organisations joining hands for making available phosphate based fertiliser products to Indian farmers by channelising their respective strengths. Farmers of the country shall benefit with continued supply of various NPK grade products based on best quality phosphate in the world,” said Dr Chandra Pal Singh, chairman, Kribhco. 

NPK (nitrogen, phosphorus, and potassium) grade of fertilisers are very important for balance fertilisation of soil and nutrition to the crop according to its requirement. N Sambasiva Rao, managing director, Kribhco emphasised that the proposed project will unlock the hidden value of the soil and crop of farmers and will add to their all-round prosperity.

Fertilisers are one of 25 core sectors identified for Make in India campaign by the Government of India. The JV will provide quality indigenous NPK fertilisers to Indian farmers by leveraging on Kribhco’s deep knowledge of market and farmers requirement, as well as OCP’s world-class industrial capabilities and expertise. 

Mostafa Terrab, chairman and CEO, OCP, commented, “OCP has always been, and remains fully committed to contribute to India’s agricultural development. We believe large scale local investments designed to respond to farmer’s specific needs is the key ingredient to successful agricultural ecosystem development. As one of the major cooperatives in India, Kribhco is an excellent partner to develop a farmer-oriented agricultural input joint venture. This partnership is designed to be truly a win-win project for all the stakeholders involved but foremost for India’s agriculture and particularly for Indian farmers.”

OCP-Kribhco joint-venture is expected to be the first step in a broader strategic cooperation between both groups that could include Kribhco’s investment in a phosphoric acid unit in Morocco.