Paradeep Phosphates Ltd

Paradeep Phosphates Ltd is a leading fertilizer company in India was incorporated in 24th December, 1981. The Company is primarily engaged in the manufacture of DiAmmonium Phosphate (DAP), Complex Fertilizers of NPK grades, and Zypmite (Gypsum based product) having its manufacturing facility at the port town of Paradeep, in the District Jagatsinghpur, Odisha. The Company is also involved in trading of fertilizers, ammonia, neutralized phospo gypsum, micronutrient and other materials. With its head office at Bhubaneswar and various regional offices across the country, the Company caters to the demands of farmers all over the country through its Navratna brand of fertilizers.The Company markets ammonia and sulphuric acid to industrial users. Their units are DiAmmonium Phosphate (DAP) Plant with the annual capacity of 720,000 metric tonnes, Sulphuric Acid Plant with the annual capacity of 660,000 metric tonnes and Phosphoric Acid Plant with the annual capacity of 225,000 metric tonnes. The products are sold through private and institutional channels. They market their products in Andhra Pradesh, Assam, Bihar, Chhattisgarh, Haryana, Jammu Kashmir, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, and West Bengal. The Company was formed as a joint venture between the Government of India and the Republic of Nauru. In August 1986, the company commissioned DAP plant with an annual capacity of 720,000 metric tonnes along with offsite facilities with 3.4 km closed conveyor from port to plant site as well as a railway siding, raw material storage yards and a 3.1 km long pipe rake.In June 1992, the company commissioned Sulphuric Acid Plant with an annual capacity of 660,000 metric tonnes and a Phosphoric Acid Plant with an annual capacity of 225,000 metric tonnes. They also commissioned two captive power units of 16 MW each, designed to run on excess steam generated by the Sulphuric Acid Plant.In June 1993, the Republic of Nauru divested their investment in the company, by which the company became a Public Sector Enterprise, wholly owned by the Government of India.The organization incurred huge loss in recent years and was consequently declared sick unit. Their production was stopped. Further they were referred to the Disinvestment Commission in the year 1998. Furthermore, the Commission recommended for strategic sale of not less than 51%. The government of India, cabinet committee on disinvestment ordered for disinvestment of 74% equity sale.In February 2002, the Government of India divested 74% of their stake in the company in favour of selected partner, Zuari Maroc Phosphates Pvt Ltd, a 5050 joint venture of Zuari Industries Ltd and Maroc Phosphore SA, a wholly owned subsidiary of OCP, Morocco.During the year 200304, the company executed an export order to Nepal of around 5000 MT of DAP. Also, the company bagged an award from the Fertilizer Association of India during the year for their turnaround performance. During the year 200405, the company entered into Finance Lease arrangement with Srei International Finance Ltd for procuring a Ship Unloader on lease. In May 2006, the company received the ISO 14001: 2004 certification for good environment management systems. In March 2007, Zuari Maroc Phosphates Pvt Ltd holds 80.45% stake in the company and the Government of India holds 19.55% stake in the company.The company proposes to ramp up DAP capacity from their present 720,000 tonnes to over one million at their existing plant through investments to modernize equipment and achieve optimum capacity utilization.In 201920, the Company commissioned Gypsum pondII. It took up engineering work for 4 Evaporator of capacity 350 TPD by Simon India Limited. It was decided to put up 400 TPD Phosphoric acid plant by using Prayon Technology. Basic engineering completed by M/s Jacobs, Lakeland (USA). It commissioned site fabrication for Scrubber vessels Preneutralization tank. It commended dismantling activities erection of new equipment. On 1 June 2022, the Company acquired the Goa Fertilizer Plant from Zuari Agro Chemicals Limited (ZACL) for USD 280 million on a slump sale basis. Through the Offer or Sale in the IPO, the Government divested its residual stake of 19.55% in the Company. The initial divestment took place when the Government sold 74% of its stake in 2002, and consequently, after the second round of stake sale by Government, the Company became fully a Private Company.