Introduction of chelated micronutrients will lead the Fertilizer Market to next Level of growth: Ken...

7/30/2019 Introduction of chelated micronutrients will lead the Fertilizer Market to next Level of growth: Ken Research

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TABL E OF CONTENTS

1. India Fertilizer Industry Introduction

2. India Fertilizer Market Size, FY 2006-FY2013

2.1. By Production and Consumption, FY2006-FY2013

2.2. By Revenue, FY2006-FY2013

3. India Fertilizer Market Segmentation

3.1. By Inorganic and Organic Fertilizers, FY 2012

3.2. By Generic and Bio-Fertilizers, FY2006-FY2012

3.3. By Micronutrients and Macronutrients, FY2012

3.3.1. By Macronutrients Production and Consumption, FY2006-FY2012

3.3.1.1. Nitrogenous Fertilizers, FY 2006-FY2012

3.3.1.2. Phosphatic Fertilizers, FY 2006-FY2012

3.3.1.3. Potassic Fertilizer, FY2006-FY2012

3.3.1.4. By Others, FY 2006-FY2012

3.3.2. By Micronutrients, FY 2012

3.3.2.1. Chelated Micronutrients

3.4. By Fertilizer Products Production and Consumption, FY2006-FY2012

3.4.1. By Urea, FY 2006-FY2012

3.4.2. By Di-Ammonium Phosphate (DAP), FY 2006-FY2012

3.4.3. By Muriate of Potash (MOP) and Single Super Phosphate (SSP), FY2006-

FY 2012

3.4.1. By Complex Fertilizers, FY 2006-FY2012

3.5. By Crops, FY2012

4. India Fertilizer Consumption by Regions, FY 2008-FY2011

5. India Bio-Fertilizer Production by States, FY 2006-FY2012


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6. Goverment Regulations/Intitiatives in India Fertilizer Industry

7. India Fertilizer Market Trends and Developments

8. Market Share of Major Players in India Fertilizer Industry

8.1. By Revenue, FY2012

8.2. By Urea, FY2011-FY2012

8.3. By DAP, FY2012

8.4. By Micronutrients, FY 2012

9. India Fertilizer Market Future Outlook

9.1.1. India Fertilizer Market Future Projections, FY2014-FY2018

9.1.1.1. By Revenue, FY2014-FY2018

9.1.1.2. By Urea, DAP and MOP, FY 2013-FY2017

9.1.1.3. By Macro Nutrients, FY2014-FY 2018

9.1.2. Cause and Effect Relationship between Industry Factors and India Fertilizer

Industry Prospects

10. Company Profiles of Major Players in India Fertilizer Industry Company Profiles

10.1. Indian Farmers Fertilizer Co-operative (IFFCO)

10.1.1. Company Overview10.1.2. Business Strategy

10.1.3. Financial Performance, FY2007-FY20012

10.2. National Fertilizers Limited

10.2.1. Company Overview

10.2.2. Business Strategy


10.3. Zuari Agro Chemicals




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10.4. Nagarjuna Fertilizers and Chemicals Limited




10.5. KRIBCHO




11. Macro Economic Factors of India Fertilizer Industry: Historical and Projected

11.1. GDP from Agriculture and Allied Activities, FY 2006- FY2018

11.2. Food grain Production in India, FY2006-2018

11.3. Total Area Under Cultivation for Food Grains and Crops, FY2016-FY2018

11.4. Population, 2006-2018

11.5. Gross Sown Area for Agricultural Inputs, FY 2006-FY2018

12. Appendix

12.1. Market Definition

12.2. Abbreviations

12.3. Research Methodology

12.4. Disclaimer


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L IST OF FIGURES

Figure 1: Types of Fertilizers Used in India

Figure 2: India Fertilizer Market Size on the Basis of Production in Thousand Tonnes, FY2006-

FY 2013

Figure 3: India Fertilizer Market Size on the Basis of Consumption in Thousand Tonnes,

FY 2006-FY2013

Figure 4: India Fertilizer Market Size by Revenue in USD Million, FY2006-FY 2013

Figure 5: India Fertilizer Market Segmentation by Organic and Inorganic Fertilizers on the Basis

of Contribution in Percentage (%), FY 2012

Figure 6: India Fertilizer Market Segmentation by Macronutrients and Micronutrients on the

Basis of Contribution in Percentage (%), FY 2012

Figure 7: India Fertilizer Market Size on Consumption and Production of Phosphatic Fertilizers

in Thousand Tonnes, FY2006-FY2012

Figure 8: Contribution of Fertilizer Products in Total Phosphatic Nutrient Production in India in

Percentage (%), FY2012

Figure 9: India Fertilizer Market Size on the Basis of Consumption of Potassic Fertilizer in

Thousand Tonnes, FY2006-FY2012

Figure 10: India Fertilizer Market Size on Consumption and Production of Urea in Thousand

Tonnes, FY2006-FY2012

Figure 11 : India Fertilizer Market Size on Consumption and Production of Di-Ammonium

Phosphate (DAP) in Thousand Tonnes, FY 2006-FY2012

Figure 12: India Fertilizer Market Size by Consumption of Muriate of Potash (MOP) and Single

Super Phosphate (SSP) in Thousand Tonnes, FY2006-FY2012

Figure 13: India Fertilizer Market Size by Consumption of Complex Fertilizers in Thousand


Figure 14: Crop wise Consumption of Fertilizers in India in Percentage (%), FY2012

Figure 15: India Fertilizer Consumption by West, North, South and East Region on the Basis of

Contribution in Percentage (%), FY2008-FY2011

Figure 16: India Bio-fertilizer Production by South, West, North and East Region on the Basis of



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Figure 17: Market Share of Leading Companies in Urea Fertilizer Market on the Basis of

Production in Percentage (%), FY2012

Figure 18: Market Share of Leading Companies in DAP on the Basis of Production in India in


Figure 19: Market Share of Leading Companies in Micronutrients on the Basis of Production in

Percentage, FY2012

Figure 20: India Fertilizer Market Future Projections on the Basis of Revenue in USD Million,

FY 2014-FY2018

Figure 21: India Fertilizer Market Future Projections by Consumption of Urea in Thousand


Figure 22: India Fertilizer Market Future Projections by Consumption of DAP in Thousand


Figure 23: India Fertilizer Market Future Projections by Consumption of MOP in Thousand


Figure 24: Indian Farmers Fertilizer Co-operative Limited Revenue from Fertilizers in USD

Million, FY 2007-FY2012

Figure 25: National Fertilizer Industry Revenue from Fertilizers in USD Million, FY-2007-FY-

2012

Figure 26: Nagarjuna Fertilizers and Chemicals Limited Revenue from Fertilizers in USD

Million, FY2007-FY 2012Figure 27: KRIBCHO Revenue from Fertilizers in USD Million, FY2007-FY2012

Figure 28: India GDP from Agriculture and Allied Activities in USD Million, FY2006-FY2018

Figure 29: Food Grain Production in India in Million Tons, FY2006-FY2018

Figure 30: Total Area under Cultivation of Food Grains and Crops in India in Million Hectares,

FY 2006-FY2018

Figure 31: Population of India in Million, FY2006 FY2018

Figure 32: Gross Sown Area for Agriculture Inputs in India in Million Hectares, FY 2006-FY 2018


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L IST OF TABLES

Table 1: Fertilizer Prices in India in USD per Ton, 2009-2012

Table 2: India Fertilizer Market Segmentation by Organic and Inorganic Fertilizers on the Basis

of Revenue in USD Million, FY 2012

Table 3: Organic Fertilizers Production Units Supported by NPOF by Type of Organic Fertilizers

on the Basis of Production and Availability in Thousand Tonnes and Area Covered in Thousand

Hectares, FY2011

Table 4: India Fertilizer Market Segmentation by Bio-fertilizers and Generic Fertilizers on the

Basis of Production in Thousand Tonnes, FY 2006-FY2012

Table 5: India Fertilizer Market Segmentation by Bio-fertilizers and Generic on the Basis of


Table 6: Bio-Fertilizers Production Units Supported by NPOF under Credit Linked Back-Ended

Subsidy Scheme through NABARD and Total Subsidy Committed since the Inception of NPOF

in USD Million, FY 2011

Table 7: India Fertilizer Market Segmentation on the Basis of Consumption of Nitrogen,

Phosphorus, Potassium, Calcium, Sulfur and Magnesium in Percentage (%), FY2006-FY2012

Table 8: India Fertilizer Market Segmentation on the Basis of Consumption of Nitrogen,

Phosphorus Potassium, Calcium, Sulfur and Magnesium in Thousand Tonnes, FY2006-

FY 2012

Table 9: India Fertilizer Market Size on Consumption and Production of Nitrogenous Fertilizers

in Thousand Tonnes, FY2006-FY2012

Table 10: Contribution of Fertilizer Products in Total N Nutrient Production in India in


Table 11: Nutrient Content of High Analysis Fertilizer Materials in Percentage (%)

Table 12: India Fertilizer Market Segmentation by Consumption of Micronutrients in Percentage

(%), FY 2012

Table 13: Micronutrients Deficiencies in Soils by States in Percentage (%)

Table 14: India Fertilizer Consumption by West, North, South and East Region in Thousand



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Table 15: State Wise Consumption of Fertilizer Nutrients in Thousand Tonnes, FY2008-

FY 2011

Table 16: India Bio-fertilizer Production by South, West, North and East Region in Tonnes,

FY 2006-FY2012

Table 17: State Wise Production of Bio-Fertilizers in India in Thousand Tonnes, FY2006-

FY 2011

Table 18: India Subsidy on Fertilizers Released by Urea and P&K Fertilizers in USD Million,

FY 2006-FY2013

Table 19: Per Ton Nutrient Based Subsidy by Fertilizers Products in USD, FY2011-FY2012

Table 20: Import of Fertilizer Nutrients in India in Thousand Tonnes, FY2006 FY2012

Table 21: Import of Fertilizer Products in India in Thousand Tonnes, FY2006-FY2012

Table 22: Subsidy Paid on Indigenous De-Controlled P&K Fertilizers by Companies in USD

Million, FY 2006-FY2010

Table 23: Market Positioning of Major Players on the Basis of Revenue in USD Million and

Percentage, FY 2012

Table 24: Leading Players in Urea Fertilizer Market on the Basis of Production in Thousand


Table 25: Leading Players in DAP Fertilizer Market on the Basis of Production in Thousand


Table 26: Company Profile of Major Players (Aries Agro, Multiplex Group, Vanita Agrochem,

Zuari Agro and Coromandel International) in Micronutrients Manufacturing in India

Table 27: Per ton Additional Subsidy for Fortified Fertilizers with Secondary and Micro-

Nutrients as allowed under NBS in USD

Table 28: India Fertilizer Market Future Projections by Consumption of Nitrogenous,

Phosphorus, Potassic, Sulphur, Magnesium and Calcium Fertilizer in Percentage (%), FY2013-

FY 2017

Table 29: India Fertilizer Market Future Projections by Consumption of Nitrogenous,

Phosphorus, Potassic, Sulphur, Magnesium and Calcium Fertilizer in Thousand Tonnes,

FY 2013-FY2017

Table 30: Cause and Effect Relationship between Industry Factors and Indian Fertilizer Industry

Prospects


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Table 31: IFFCO Production Unit and their Capacity of Fertilizers in Million TPA, FY2012

Table 32: IFFCO Sales of Fertilizer Materials in Thousand Tonnes, FY2011-FY2012

Table 33: IFFCO sale of Secondary and Micronutrients and Phospho Gypsum in Tonnes,

FY 2012

Table 34 : National Fertilizers Limited Production of Urea in Thousand Tons, FY 2010-

FY 2012

Table 35: National Fertilizer Limited Production Units by Capacity, FY2012

Table 36: KRIBCHO Bio-fertilizer Production and Sale in Tonnes, FY2010-FY2012

Table 37: KRIBCHO Urea Sales in Thousand Tons, FY2010-FY2012

Table 38: Correlation Matrix

Table 39: Regression Matrix


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INDIA FERTILIZER MARKET SIZE, FY 2006-FY 2013

BY PRODUCTION AND CONSUMPTION, FY 2006-FY 2013

Fertilizers have played an important role in increased crop production, especially in cereals, and

will continue to be a foundation stone of the technology-driven agriculture required to feed the

expanding population. Fertilizers stock up the nutrients

the market in India has experienced a robust growth during FY 2006-FY2011 on account of

increase in the demand of fertilizers led by The domestic production of fertilizers in India is

not enough to meet the demand; hence, the rest of the demand is fulfilled by imports of fertilizers

in the country. Indian fertilizer companies majorly produce

it was observed that the production of fertilizers has grown at a CAGR of ~% during

FY2006-FY2013 and has reached ~thousand tonnes in FY 2013. The production of fertilizersin India is largely dependent on

Table: Fertilizer Prices in India in USD per Ton, 2009-2012

Fertilizer 2009 2010 2011 2012

DAP

MOP

Urea

over the period, FY2008-FY2009, the production of fertilizers in India witnessed a decline

due to price volatility. In FY 2008, the fertilizer suppliers had begun increasing prices of

fertilizers in a quest for which create an imbalance between supply and rapidly mounting

demand of fertilizers in FY2008. Another factor which led to an increase in the price was


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Figure: India Fertilizer Market Size on the Basis of Production in Thousand Tonnes,

FY2006-FY2013

Figure: India Fertilizer Market Size on the Basis of Consumption in Thousand Tonnes,

FY2006-FY2013

13,000.0

13,500.0

14,000.0

14,500.0

15,000.0

15,500.0

16,000.0

16,500.0

17,000.0

FY'2006 FY'2007 FY'2008 FY'2009 FY'2010 FY'2011 FY'2012 FY'2013P

'000Tonnes

0.0

5,000.0

10,000.0

15,000.0

20,000.0

25,000.0

30,000.0

35,000.0


'000Tonne

s


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BY VALUE, FY 2006-FY 2013

The agriculture sector in India accounts for ~% of Indias export earnings. Thus, if theagricultural waste is low and productivity is high, then the export earnings tend to be more

robust. Agricultural growth is mainly dependent on The fortune of fertilizer industry is highly

dependent on factors such as

there was decrease in the consumption and production of fertilizers in India in FY2013 due

industry has grown at a CAGR of ~% from FY2006-FY-2013. In FY2013, the fertilizer

market in India was valued at USD ~million as compared to USD ~million in the previous year,

thereby showcasing a growth of ~% during the yearover the period, FY2006-FY2013, the

revenue of the industry has showcased a positive trend. However, it was observed due to

resulting in an inventory pile up.

a negative impact on the domestic fertilizer market as small farmers faced acute affordability

issues. in FY 2012, the market grew by ~% in FY 2012 and reached USD ~million as during

the year. It was observed that due to witnessed a decline.

Figure: India Fertilizer Market Size by Revenue in USD Million, FY2006-FY2013

0.0

10,000.0

20,000.0

30,000.0

40,000.0

50,000.0

60,000.0


USDMillion


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INDIA FERTILIZER MARKET SEGMENTATION

BY INORGANIC AND ORGANIC FERTILIZERS, FY 2012

Organic fertilizers are inefficientOrganic manures are available in the different forms in India,

such Though organic fertilizers are low analysis fertilizers having nutrients (NPK) in the

range of ~to ~%, their importance is mainly attributed to their potential in increasing soil

organic carbon and

In FY 2012, organic fertilizers contributed nearly ~% of the overall fertilizer market revenue as

compared to inorganic fertilizers which contributed around ~% of total revenue in the country. It

was observed, that organic fertilizer .

The revenue generated from organic fertilizers in India was recorded as USD ~ million in

FY2012 as compared to USD ~million generated by inorganic fertilizers.

Table: India Fertilizer Market Segmentation by Organic and Inorganic Fertilizers on the

Basis of Revenue in USD Million and contribution inn Percentage (%), FY2012

Particulars Revenue Contribution (%)

Inorganic Fertilizers

Organic Fertilizers

Total


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BY GENERIC AND BIO-FERTIL IZERS, FY 2006-FY 2012

The fertilizer industry in India is largely segmented on the basis of bio-fertilizers and generic

fertilizers. Bio-fertilizer is a substance, which contains There are ~bio-fertilizer production

units in India. Andhra Pradesh has ~bio-fertilizer production units, with a capacity of ~tons.

Bio-fertilizers have much lower nutrient density and are required in large quantities. Thus, the

farmers in India have been increasing their focus on generic fertilizers, as they are more

effective as compared to bio-fertilizers.

Generic fertilizers have held the lions share in the overall production of fertilizers in India over

the years. Generic fertilizers In FY2012, generic fertilizers accounted for ~% of the overall

production of fertilizers in India as compared to ~% in FY 2006.

In the recent years, the government has been promoting the usage bio-fertilizers in India, as the

dependence on chemical fertilizers limits the soil fertility choices available to farmers. In the

recent years, it has been observed that the market for inorganic fertilizers witnessed

In FY 2012, bio-fertilizer contributed ~% to the total production of fertilizers in India as

compared to ~% in FY2006. This was due to the fact that

The production of bio-fertilizers in India has grown at a CAGR of ~% during the period

FY2006-FY2012 and reached ~thousand tonnes in FY2012. It was observed that

Table: India Fertilizer Market Segmentation by Bio-fertilizers and Generic Fertilizers on

the Basis of Production in Thousand Tonnes, FY2006-FY2012

Categories FY'2006 FY'2007 FY'2008 FY'2009 FY'2010 FY'2011 FY'2012

Generic Fertilizers

Bio Fertilizers

Total


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Over the years, FY2006-FY2013, the

consumption of nitrogenous fertilizer hasshowcased a robust growth of ~% every year

Table: India Fertilizer Market Segmentation by Bio-fertilizers and Generic on the Basis of


Categories FY'2006 FY '2007 FY '2008 FY '2009 FY '2010 FY '2011 FY '2012

Generic Fertilizers

Bio Fertilizers

Total

Source: National Centre of Organic Farming, Industry and Primary Source, Ken research

BY MICRONUTRIENTS AND MACRONUTRIENTS, FY 2012

The Indian fertilizer market is bifurcated into It has been observed that widespread usage offertilizers along with neglected usage of organic fertilizers in India has resulted in an increased

It was observed that in FY 2012 macronutrients which are majorly consumed in India

contributed ~% in the overall fertilizers consumption in India as compared to micronutrients

which contributed nearly ~% to the total fertilizer consumption in India during the year. The

awareness of micronutrients....

furthermore, out of ~nutrients, the major focus has been on a greater emphasis must be laid

on improving fertilizer use efficiency in India. This can be achieved through

BY MACRONUTRIENTS PRODUCTION AND CONSUMPTION, FY 2006-

FY 2012

Fertilizer production in India is capital intensive and the cost of production of indigenous

material is high and the return on investment

is low. The Indian fertilizer industry which

achieved phenomenal growth during 1980s,

witnessed a decline in the growth rate during

1990s. it has been observed


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Fertilizer consumption basically measures the quantity of plant nutrients used per unit of arable

land. Over the years, FY2006-FY2013, the consumption of nitrogenous fertilizer has

showcased a robust growth of ~% every year. It was observed that, due to... In FY2012, it was

observed that the consumption of nitrogenous fertilizers increased by ~% over the previous year

due to

The consumption of phosphorus fertilizer has showcased a stable growth from FY2006-

FY2012. It has increased from ~thousand tonnes in FY 2006 to ~thousand tonnes in FY 2012

with a CAGR of ~%. However, the consumption of potassic fertilizers in the country has been

The country fertilizers production has grown at a CAGR of ~% during FY2006-FY2013, and

has reached ~thousand tonnes in FY2013. The production of fertilizers in India is largely

dependent

In FY 2012, the production of nitrogenous fertilizer reached ~thousand tonnes as compared to ~

thousand tonnes in the previous year. The production of nitrogenous fertilizer has grown at a

CAGR of ~% during the period FY-2006-FY2012. This was primarily due

Table: India Fertilizer Market Segmentation on the Basis of Consumption of Nitrogen,

Phosphorus, Potassium, Calcium, Sulfur and Magnesium in Percentage (%), FY2006-

FY2012

Fertilizer Consumption FY'2006 FY'2007 FY'2008 FY'2009 FY'2010 FY'2011 FY'2012

Nitrogenous

Phosphatic

Potassic

Sulphur

Magnesium

Calcium

Total

Table: India Fertilizer Market Segmentation on the Basis of Consumption of Nitrogen,

Phosphorus Potassium, Calcium, Sulfur and Magnesium in Thousand Tonnes, FY2006-

FY2012

Nutrient Categories FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012

Nitrogen

Phosphorus


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Potassium

Sulphur

Magnesium

Calcium

Total

NITROGENOUS FERTILIZER, FY 2006-FY 2012

Out of all the macronutrients, India produces nitrogenous fertilizer

it was observed that, over the years, the production of nitrogenous fertilizer has grown at aCAGR of ~% and reached ~ thousand tonnes in FY2012. The dominance of nitrogenous

fertilizer in overall consumption of fertilizers in India can be attributed .

During the period FY 2008-FY2009, the production of nitrogenous fertilizers witnessed a

Table: India Fertilizer Market Size on Consumption and Production of Nitrogenous

Fertilizers in Thousand Tonnes, FY2006-FY2012

0.0

2,000.0

4,000.0

6,000.0

8,000.0

10,000.0

12,000.0

14,000.0

16,000.0

18,000.0

20,000.0

FY'2006 FY'2007 FY'2008 FY'2009 FY'2010 FY'2011 FY'2012

'000Tonnes

Consumption Production


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In FY2012, it was observed that nearly ~% of the total nitrogen nutrient production was

accounted

Table: Contribution of Fertilizer Products in Total N Nutrient Production in India in


Fertilizer Product Contribution in Production (%)

Straight Nitrogenous Fertilizer:

Urea

Others

NP/NPK Complex Fertilizers

Total

BY MICRONUTRIENTS, FY 2012

Micronutrients are the nutrients that are required by the plants in relatively small amounts.

Micronutrient deficiency is widespread in plants due...the consumption of micronutrients in

Indian fertilizer market

The overall contribution of micronutrients in fertilizer consumption in India was recorded at ~%

in FY2012 as compared to ~% for macronutrients. Among the micronutrients, zinc contributed

nearly ~% to the overall consumption of micronutrients in India followed by boron and iron

which contributed contributing nearly ~% and ~% respectively to the overall consumption of

micronutrients during the year.

zinc is an essential nutrient for the plant growth as it helps in transformation of carbohydrates

in plants and also regulates the consumption of sugar in plants. Zinc deficiency in plants can

affect the health and growth of the plant, thereby leading to lower yields and poorer crop quality.


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Table: India Fertilizer Market Segmentation by Consumption of Micronutrients in


Category Consumption (%)

Zinc

Boron

Iron

Copper

Manganese

Chlorine

Molybdenum

Nickel

It has been observed that the use of micronutrient-enriched fertilizers results in significant

economic benefit

The major players who are engaged in manufacturing of micronutrients in India include Aries

agro limited, Vanita Agro, Multiplex group, Coromandel International, Zuari Agrochemicals

Nagarjuna fertilizers and chemicals and Gujarat state fertilizers which captured ~% of the market

in FY 2012.

Table: Competitive Landscape of Major Players in Micronutrients Manufacturing in India

Company Company Overview Product Portfolio Business Strategy

Aries agro Limited

Multiplex Group

Vanita Agro


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Zuari Agro ChemicalsLimited

CoromandelInternational

CHELATED MICRONUTRIENTS

Chelated micronutrients are widely used in agriculture and in the recent years, companies have

been actively promoting the use of micronutrients in India. Chelate refers to the

it was recorded that chelated micronutrients contributed nearly ~% of the overall consumption

of micronutrients in India in FY 2012. Chelate basically forms an organic coating

Ethylene Diamine Tetraacetic Acid (EDTA) is the synthetic on the other hand, Diethylene

Triamine Penta Acetic Acid (DTPA) is used mainly for chelates

There are a number of natural products used as chelating agents. For instance,

BY FERTILIZER PRODUCTS PRODUCTION AND CONSUMPTION,

FY 2006-FY 2012

BY UREA, FY 2006-FY 2012

Urea is major nitrogenous fertilizer and accounts for nearly ~% of Indias total nitrogen

consumption in India. It is a waste product of many living organisms


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..urea is a white crystalline solid containing ~% of nitrogen. It can be applied to soil as a solid or

solution or to certain crops as

In FY2012, it was recorded that ~thousand tonnes of urea was consumed, thereby growing by ~

over the previous year during which the consumption was ~thousand tonnes. The import of urea

has risen drastically from ~thousand tonnes in FY2006 to ~thousand tonnes in FY 2012. InFY2012, it was recorded that ~ thousand tonnes of urea were produced domestically. The

import of urea in the country has been rising over the years

Figure: India Fertilizer Market Size on Consumption and Production of Urea in Thousand

Tonnes, FY 2006-FY2012

BY OTHERS, FY 2006-FY 2012

This category includes macronutrients such as sulphur and magnesium and calcium, which are

consumed

In FY 2012, the consumption of sulphur fertilizer reached ~thousand tonnes as compared to ~

thousand tonnes in FY2011. The nutrient contributed nearly ~% to the overall consumption of

macronutrient fertilizers in India in FY2012.

Calcium and magnesium are also crucial for many cellular functions in plants as well as in fruit

and flower formation. Plants need

0.0

5,000.0

10,000.0

15,000.0

20,000.0

25,000.0

30,000.0

35,000.0

FY'2006 FY'2007 FY'2008 FY'2009 FY'2010 FY'2011 FY'2012

'000Tonnes

Production Consumption


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The consumption of magnesium and calcium fertilizer in India was recorded as ~ thousand

tonnes and ~thousand tonnes respectively in FY2012. The nutrients contributed ~% and 0.62%

to the overall consumption of macronutrients in India in FY 2012.

BY CROPS, FY 2012

The use of fertilizers in India has been increasing over the years. It is largely dependent

largest portion of fertilizers consumed in India has been used in the production contributed

nearly ~% to the overall consumption of fertilizers in India in FY 2012. The dominance is due

to high demand

Figure: Crop wise Consumption of Fertilizers in India in Percentage (%), FY2012

INDIA FERT IL IZER CONSUMPTI ON BY REGI ONS,

FY 2008-FY 2011

The consumption of fertilizers in India is much skewed with broad inter-regional, inter-state, and

inter-district variations .The consumption of fertilizer is usually been elevated in the northern

and

Rice Wheat

Foodgrain Oil Seeds

Sugarcane Cotton

Vegetables Pulse

Fruits Others


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On the basis of zones, the consumption of fertilizers in India was primarily held by west region

which accounted for ~% share in the overall consumption of fertilizers in India. The total

consumption of fertilizers in the region was recorded to be ~thousand tonnes in FY2011 as

compared to ~thousand tonnes in FY2008.

In the northern region, Uttar Pradesh was the leading state which consumed approximately ~%of fertilizers followed by Punjab consuming around ~% of fertilizers in FY2011. Uttar Pradesh

has been leading state in the northern region over the past few years in terms of consumption of

fertilizer nutrients, as it is the largest contributor of the food grain stock in the country This is

mainly, due to

Figure: India Fertilizer Consumption by West, North, South and East Region on the Basis

of Contribution in Percentage (%), FY2008-FY2011

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

FY'2008 FY'2009 FY'2010 FY'2011

Percentage(%)

West North South East


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INDIA BIO-FERTIL IZER PRODUCTION BY STATES,

FY 2006-FY 2012

it is believed that the use of bio fertilizers should be increased as more use of chemical The

production of bio-fertilizers in India increased to ~tonnes in FY 2011 as compared to ~tonnes

in FY 2010. This is due to increasing awareness

In India, the companies which are into manufacturing of bio-fertilizers include National Organic

Fertilizer, Krishak Bharati Cooperative Limited (KRIBCHO), Indian Farmers Fertilizer Co-

operative Limited (IFFCO), Madras Fertilizer Limited (MFL), National Fertilizer Limited (NFL)

and Maharashtra Biofertilizer India Limited among others

West zone accounted for ~% of total bio-fertilizers production in FY 2011, Maharashtra was

the leading state in terms of production of bio fertilizers in the region which contributed nearly~% of the total bio-fertilizer production in Western zone in FY2011 ~

Figure: India Bio-fertilizer Production by South, West, North and East Region on the Basis

of Contribution in Percentage (%), FY2006-FY2012

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

FY '2006 FY '2007 FY '2008 FY '2009 FY '2010 FY '2011 FY '2012

Percentage(%)

South West North East


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MARK ET SHARE OF MAJ OR PLAY ERS IN INDIA

FERTIL IZER INDUSTRY

BY REVENUE, FY2012

There are a number of public and private players operating in the Indian fertilizer market. These

players are majorly engaged in the production of urea, DAP, complex fertilizer, ammonium

sulphate, and ammonium nitrate among others. Indian Farmers Fertilizer Co-operative Ltd is the

largest player Indian Farmers Fertilizer Co-operative Limited accounted for ~% of the market

in FY 2012 and generated revenue worth USD ~million during the year. The company has

recently entered into a joint venture outside India in order to procure raw materials for the

production of phosphatic fertilizer at economical cost. In FY2012, the company recorded thehighest ever urea production of ~million tonnes.

Table: Market Positioning of Major Players on the Basis of Revenue in USD Million and

Percentage, FY 2012

Leading Fertilizer Companies Revenue (USD Million) Market Share (%)

IFFCO

National Fertilizers Limited

Zuari Agro Chemicals

Nagarjuna Fertilizers and Chemicals Limited

Krishak Bharati Cooperative Limited

Mangalore Chemicals

Gujarat State Fertilizer & Chemical Co Limited

Coromandel International

Chambal Fertilizers and Chemicals Limited

Madras Fertilizers

Fertilizer and Chemical Tranvacore Limited

Rashtriya Fertilizers and Chemicals Limited


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Deepak Fertilizers

Others

Total

BY UREA, FY 2011-FY 2012

In FY 2012, the production of urea in India was largely held by Indian Farmers Fertilizer Co-

operative Limited (IFFCO), National Fertilizer Limited (NFL), Chambal Fertilizers and

Chemicals Limited (CFCL) and Rashtriya Fertilizers and Chemicals Limited (RFCL) which

together accounted for ~% of the overall production of urea in FY 2012

National Fertilizers Limited is the second largest player in the production of urea fertilizer in

India. The company produced ~thousand tonnes of urea fertilizer in FY 2012 as compared to ~

thousand tonnes produced in FY 2006. NFL held ~% share in the overall production of urea in

India followed by

Figure: Market Share of Leading Companies in Urea Fertilizer Market on the Basis of

Production in Percentage (%), FY2012

Indian Farmers Fertilizer Co-operative LimitedNational Fertilizers Limited

Chambal Fertilizers and ChemicalsLimitedRashtriya Fertilizers and ChemcialsLimitedNagarjuna Fertilizers andChemicals LimitedKrishak Bharati CooperativeLimitedMadras Fertilizers

Mangalore Chemicals

Zuari Agro chemicals

Others


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Table: Leading Players in Urea Fertilizer Market on the Basis of Production in Thousand

Tonnes, FY 2011-FY2012

Leading Companies FY'2011 FY'2012

IFFCO

National Fertilizers Limited

Chambal Fertilizers and ChemicalsLimited

Rashtriya Fertilizers and ChemicalsLimited

Nagarjuna Fertilizers andChemicals Limited

Krishak Bharati CooperativeLimited

Madras Fertilizers

Mangalore Chemicals


Gujarat State Fertilizer & ChemicalCo Ltd

Others

Total

BY MICRONUTRIENTS, FY 2012

Micronutrients contribution to the overall fertilizer consumption is nearly ~% in India. Due to

lack ofAries agro Limited is a leading company in the manufacturing of micronutrients in

India. The company is engaged in the production of multi micronutrients fertilizers and chelated

micronutrients fertilizers. Aries agro Limited has in-house expertise in the area of mineral

nutrition .The company has pioneered the concept of Chelates in India. They are also one of the

leading manufacturer and seller of chelates in India. Aries Agro Limited had a market share of

~% in FY 2012


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Figure: Market Share of Leading Companies in Micronutrients on the Basis of Production

in Percentage, FY2012

INDIA FERTIL IZER MARKET FUTURE OUTLOOK

Fertilizer demand in India is mainly affected by . the demand for fertilizers is expected to rise

in the coming years with an increase in the demand The growth will be led by surging

demand for food grains among the masses, growing thrust on irrigation projects leading to

demand for fertilizers is expected to rise in the coming years with an increase in the demand

for food. With the increasing pace of urbanization and population growth and shrinking of arable

landthis has necessitated the usage of fertilizers in the country in order to improve yields.

Furthermore, increasing crop prices in both domestic and international markets is expected toimprove farmer profitability, thereby aiding the growth of fertilizers, crop protection and crop

nutrition market

it is expected that the demand of urea will increase in the near termthe demand of

nitrogenous fertilizers in the country is expected to grow at a CAGR of ~% over the period

Aries Agro Limited

Multiplex Group

Vanita Agrochem (I) Pvt. Limited.


Coromandel International

Nagarjuna Fertilizers and ChemicalsLlimited

Gujarat State Fertilizer & Chemicals Limited

Others


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FY2014-FY2018 and will reach nearly ~thousand tonnes in FY2018. It is observed that, due

these factors are responsible for the prices of DAP fertilizers. It is expected that the demand

of DAP fertilizers will grow at a negative CAGR of ~% from FY 2014-FY2018.

thus, overall the fertilizer market in India is expected to grow at a CAGR of 3.78% over the

period FY 2014-FY2018.

INDIA FERTILIZER MARKET FUTURE PROJECTIONS, FY 2014-FY 2018

BY REVENUE, FY2014-FY 2018

The development of the agricultural industry mainly depends on the growth in production offertilizers in India. It has been projected that the fertilizer market in India will grow at a CAGR

of ~% over the period FY 2014-FY2018. The revenue of the market will rise to USD ~million

in FY2018 from USD ~million in FY2013

the demand for fertilizer, crop protection and crop nutrition is expected to it is projected that

the demand of nitrogenous fertilizers will experience a robust growth in the future, and will grow

at a CAGR of ~% ,over the period FY2013-FY2017.This growth will be primarily due to

Micronutrients are expected to grow at a CAGR of ~% in the coming years, and the contributionof micronutrients in the overall revenue of the market is estimated to grow at a


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Figure: India Fertilizer Market Future Projections on the Basis of Revenue in USD Million,

FY2014-FY2018

46,000.0

48,000.0

50,000.0

52,000.0

54,000.0

56,000.0

58,000.0

60,000.0

62,000.0

FY'2014 FY'2015 FY'2016 FY'2017 FY'2018

USDMillion


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