The company also intends to retrofit a new phosphoric acid production plant to increase its annual production by 120,000 MT and plans to install a new evaporator to increase annual production of strong phosphoric acid by 116,000 MT.
"We are investing heavily in topline growth. We are moving from 1.2 million MT to 1.8 million MT and with the acquisition of Goa Plant, we will get another 1.2 million MT with us," Sabaleel Nandy, President and Chief Operating Officer Paradeep Phosphates Ltd said.
As on March 31, 2021, the company''s total annual granulation capacity of DAP and NPK production plant was approximately 1.40 MT. Actual capacity for fiscal 2021, 2020 and 2019 was 1.2 MT, 1.39 MT and 0.30 MT, respectively.
The company''s manufacturing facility is located in Paradeep, Odisha and includes a DAP and NPK production facility, a sulphuric acid production plant and a phosphoric acid production plant. The company utilizes sulphuric and phosphoric acids for manufacturing DAP and NPK.
On the acquisition of Zuari Agrochemicals'' fertiliser plant and associated businesses at Goa, he said "because of the Goa plant acquisition, we are able to expand our geographical footprint, in terms of districts, in terms of penetration... we are becoming a pan-India player with a very strong presence in East, West and South."
Going ahead, Nandy said "we are open to in-organic growth opportunities and we intend to continue to do so going forward. Our cashflow going forward is quite positive and we expect to be able to employ them through suitable inorganic growth opportunities that come our way."
In February this year, Zuari Agrochemicals Ltd (ZACL) announced the sale of its fertiliser plant and the associated businesses at Goa to Paradeep Phosphates for an enterprise value of USD 280 million (over Rs 1,100 crore).
In June this year, fair trade regulator CCI gave its go-ahead to the acquisition of Zuari Agro Chemicals Ltd''s Zuarinagar plant by Paradeep Phosphates.
The leading fertilizer company in September this year received Sebi''s go-ahead to mop up funds through an initial public offering (IPO).
The IPO comprises fresh issue of equity shares worth Rs 1,255 crore and an offer-for-sale (OFS) of up to 12,00,35,800 shares by its existing shareholders and promoters.
Under the OFS, Zuari Maroc Phosphates Pvt Ltd (ZMPPL) will offer up to 75,46,800 shares and up to 11,24,89,000 equity shares will be offered by Government of India.
Currently, ZMPPL holds 80.45 per cent and the Government of India owns 19.55 per cent stake in the company.
Proceeds of fresh issue will be used to partly finance the acquisition of the fertiliser manufacturing facility in Goa, for payment of debt and general corporate purposes.
Paradeep Phosphates is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as DAP and NPK fertilizers.
Its fertilizers are marketed under brands like ''Jai Kisaan – Navratna'' and ''Navratna''. PTI DRR DRR ANU