Paradeep Phosphates IPO

Paradeep Phosphates Ltd (PPL), is part of Adventz Group of Companies led by the group Chairman Saroj Kumar Poddar. It is a subsidiary of Zuari Maroc Phosphates Private Limited (ZMPPL), a joint venture between the Adventz group company, Zuari Agro Chemicals Limited, and Maroc Phosphore S.A., a wholly owned subsidiary of OCP, Morocco (Office Cherifien des Phosphates). 
Paradeep Phosphates is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as di-ammonium phosphate (DAP) and NPK fertilizers. Its fertilizers are marketed under brands like 'Jai Kisaan Navratna' and 'Navratna'.

Phosphate rock is processed to produce phosphorous, which is one of the three main nutrients most commonly used in fertilizers (the other two are nitrogen and potassium). India has negligible Phosphate reserves and is dependent on imports of Phosphate rock (a source raw material) or Phosphoric Acid (an intermediate raw material) or DAP (finished phosphatic fertilizer). The primary raw materials include Phosphate Rock, Phosphoric acid, Sulphur, Ammonia and MOP. The raw material is sourced locally as well as from various other countries such as Morocco, Jordan, Qatar and Saudi Arabia.

Upon the completion of the Goa Transaction, the company will acquire the business of developing, manufacturing and trading of urea and NPK products carried out at the Goa Facility. Subsequent to the acquisition of Goa Facility, the total fertilizer production capacity is expected to increase by 1.2 million MT, which includes

i) annual granulation capacity of DAP and NPK production plants to increase by approximately 0.80 million MT

ii) annual capacity of producing Urea to be approximately 0.40 million MT

The products are distributed across 17 states in India through the 11 regional marketing offices network and 1,324 stock points. The network includes 4,529 dealers and over 60,257 retailers, catering to over five million farmers in India