Tata Chemicals eyes fertiliser units in the Middle East
Financial Express — June 1, 2007

Tata Chemicals, which failed to acquire Egyptian Fertilizer Company, is once again looking out for acquisitions in the Middle East, where low-cost of gas makes fertiliser projects viable, to ramp up its fertiliser business.

The company will also aim at a fertiliser capex in India dramatically, once gas from the KG basin is available.

"Middle East is definitely on our acquisition radar; we are very keen to increase our presence in that market to take advantage of the abundant and low-cost gas available," Homi Khusrokhan, managing director, Tata Chemicals, told FE.

"Our Bangladesh project has been in limbo for a while due to the political unrest in the country, but we are very keen on that. Once gas from the KG basin is available, we will look at increasing capacity substantially within India as well," he added.

After acquiring UK-based Brunner Mond Group, Tata Chemicals has become the third largest soda ash player globally, and the company now wants to catalyse its growth in the fertiliser business through overseas acquisitions and greenfield ventures.

The company is also simultaneously de-bottlenecking its capacity in the domestic market. The capacity at the Babrala urea manufacturing facility is being increased by 40 per cent with an investment of Rs150 crore.

The fertiliser business currently contributes over 62 per cent of the total revenue.

However, the division is plagued by subsidy outstanding in both nitrogenous and phosphatic fertiliser.