Coromandel to Focus on Developing Fertilizer Value Chain Amidst Geo-Political Unrests
Chennai: Coromandel International is focused on developing a strong fertilizer value chain amidst the disruptions in the global market, said S Sankarasubramanian, MD & CEO, Coromandel International told Sangeetha G in an interview.
1. The government has been reducing subsidies for fertilizers. How is this affecting the sector as well as your company?
The government's reduction in fertilizer subsidies is impacting the sector in multiple ways.
The Government of India’s Nutrient-Based Subsidy (NBS) policy plays a vital role in keeping fertilizers affordable. The reduction in subsidy rates for Kharif 2024 is largely attributed to the decline in global commodity prices.
However, during the first half of the year, the demand fundamentals for the industry remained strong. The timely announcement of subsidy rates and subsidy payouts helped the industry plan raw material procurement ahead of time.
As a company, Coromandel focuses on promoting balanced nutrition and offering differentiated, value-added products.
2. How are you strengthening your business in a reducing subsidy scenario?
We have focused on developing a strong fertilizer value chain by enhancing our raw material sourcing capabilities and investing in backward integration. Our approach to reducing import dependence has led to the expansion of intermediate capacities and improved infrastructure. This year, we laid the foundation for new phosphoric acid and sulfuric acid plants at Kakinada, making all our fertilizer sites backward integrated.
Additionally, we have entered mining operations in Senegal to secure a steady supply of rock for our phosphoric acid plants.
3. The availability of fertilizers globally has been a major issue since the Russia-Ukraine war. What was the impact of this on your business?
The Russia-Ukraine war caused significant supply chain disruptions, leading to price volatility and shortages of key fertilizer raw materials like potash, phosphate, and ammonia. Coromandel successfully ran its plants at full capacity, thanks to strategic long-term supply contracts and recent investments in intermediate capacities.
4. How do you see the future of nano fertilizers in India?
The future of Nano DAP in India is promising with potential to replace conventional fertilizers.
We have invested in our R&D centre Monash Academy at IIT Bombay where Gromor Nano DAP was developed. We have also established a Nano Technology Centre in Coimbatore.
5. Tell us something about the benefits of bio-pesticides and your plans.
Coromandel offers a range of biopesticides, including Azadirachtin-based products, which are produced at the world’s largest manufacturing facility in Cuddalore. We are also setting up a captive neem plantation and expanding our product portfolio to include bio-fertilizers, microbial crop protection solutions, and plant-based extracts.
6. Tell us more about your export business.
Our Crop Protection and Bio-pesticide products are sold in 80 countries. We are expanding in Brazil and Southeast Asia, and have established subsidiaries in the Philippines and Vietnam.
