Prime Highlights
- Coromandel International signs long-term DAP and NP/NPK supply pact with Saudi Arabian Ma’aden.
- The pact provides assured and sustainable supply of fertilizers for driving India’s agri growth.
Key Facts
- Ma’aden aims to double its fertiliser production to 9 million tonnes from 6 million tonnes.
- Coromandel has tie-ups with more than 4.5 million farmers in India for encouraging sustainable agriculture.
Key Background:
India’s largest agri-input company Coromandel International signed a long-term strategic agreement with Saudi Arabian mining behemoth Ma’aden (Saudi Arabian Mining Company), one of the world’s largest producers of phosphate-based fertilizers. The agreement is for DAP and complex fertilizers like NP/NPK, the backbone of India’s agri-business economy. The two companies’ top brass signed the agreement and look to further enhance India’s fertilizer security as demand around the world is increasing.
The partnership is entered into at a time of uncertainty in the world agri-input supply chain, making Indian markets unstable. This, and this long-term collaboration, Coromandel would like to have an assured supply of key agri-inputs to Indian farmers. Ma’aden increasing its capacity from 6 million to 9 million tonnes per annum puts more muscle in its capacity to service increasing demands from large agri-economies such as India.
For Coromandel International, with more than 4.5 million Indian farmers as its customers, the transaction is strategic in advancing Indian food security interests. The firm will use this partnership not just for the assurance of availability of inputs but also for collaborative development of tailored, sustainable fertilizer products dovetailing with India’s agriculture and soil needs.
The partnership also addresses Coromandel’s innovation and global sourcing thrust. As agriculture is also going to remain dependent on well-oiled and efficient supply chains, partnership with such global players as Ma’aden who are reliable is of critical importance. The transaction also has the scope of opening up the gates to joint research initiatives and value-added product innovations, improving farm productivity without forsaking sustainable agriculture. On the whole, the transaction is a landmark achievement toward building a healthy farm environment in India.
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