Joint Venture agreement with Groupe Chimique Tunisien of Tunisia

Coromandel International Limited and Gujarat State fertiliser Corporation(GSFC) signed a joint venture agreement with Groupe Chimique Tunisien of Tunisia for manufacturing Phosphoric Acid, a critical raw material for manufacture of Phosphatic Fertilisers and DAP.

The joint venture will enable a steady supply of Phosphoric Acid, Which is in high demand. The strategic joint venture will enable Coromandel International Limited( Coromandel) and Godavari Fertilisers and Chemicals Limited (GFCL), the two fertiliser companies of the $1.5 Billion Murugappa Group meet their requirement of Phosphoric Acid. Murugappa Group’s fertiliser business currently requires 450,000 TPA ( Tonnes Per Annum) of Phosphoric Acid, which is slated to grow by 20-40% over the next three years. This joint venture would also benefit Gujarat state Fertiliser Corporation (GSFC) in meeting its requirement.

The proposed Joint Venture would be located at the existing site of Groupe Chimique Tunisien ( GCT ) at La Skhira and would share some of the existing facilities and services. The total project cost is estimated to be around US$ 180 million and is scheduled to be completed by 2008.

Speaking on the occasion, Mr. A Vellayan, Chairman of Coromandel and GFCL said, “”with this joint venture Tunisia continues to be the major source of phosphoric acid and the fertiliser companies in the Murugappa Group and GSFC are assured of steady supply to manufacture different grades of phosphate fertilisers””.

India has an annual demand of around 4.5 million tones of Phosphoric acid. Typically, out of the high grade phosphatic fertilisers produced in India, around 65 -70% is produced using imported Phosphoric acid.