Yara International ASA has signed a Heads of Agreement with Kribhco of India with the intention to establish a joint venture for production and marketing of mineral fertilizer. The partners will each own 50% of the planned joint venture.
The joint venture’s objective is to establish an Indian production base by acquiring existing production facilities, combined with import. The partners will seek to establish a foreign production base in areas with competitively priced raw materials.
India is the worlds third biggest fertilizer market, and growing strongly. During recent years market growth has been met by increased import.
India’s consumption of the plant nutrients N, P and K is not optimally balanced, with a deficit in application of P and K. The joint venture will introduce balanced fertilization, principally as NPKs, into the Indian market.
“Our new partnership with Kribhco is a strong fit between their distribution position in one of the words biggest and fastest growing fertilizer markets, and our global sourcing and leadership on NPKs”, says Thorleif Enger, President and CEO at Yara International ASA.
Krishak Bharati Cooperative Limited (Kribhco) is the largest agricultural cooperative in India. The Indian Government owns 67% of Kribhco. Its members include more than 7,000 local agricultural cooperatives.