Paradeep Phosphates to Invest Rs 4,000 Crore in Odisha to Boost Fertilizer Production
Paradeep Phosphates Ltd. (PPL) has signed a memorandum of understanding (MoU) with the Odisha government to invest Rs 4,000 crore over the next five years, aiming to expand its phosphatic fertilizer manufacturing capacity and develop port infrastructure in the state.
PPL will invest Rs 4,000 Cr over five years to increase the Phosphatic Fertiliser Manufacturing capacity in both intermediate and final products including Port/Jetty and
infrastructure development. This will escalate the employment capacity directly between 100-150 and indirectly between 700-1000. Alongside, this strategic investment will increase production capacity, reduce environmental impact, and contribute to agricultural growth.
The MOU was signed today, between Mr. Hemant Sharma, IAS, Addl. Chief Secretary, Department of Industries, Govt of Odisha and Mr. Suresh Krishnan, MD & CEO, Paradeep Phosphates Limited. Mr. Subhendra Kumar Nayak, Special Secretary, Department of Industries, Mr. Bijoy Kumar Biswal, Chief Financial Officer, PPL and Mr. Sudhi Ranjan Mishra, Head-Corporate Affairs, PPL were Present during the event.
According to an exchange filing, the investment will enhance production of both intermediate and final fertilizer products, along with improvements in port and jetty infrastructure. The company expects this expansion to generate direct employment for 100-150 people and indirectly create 700-1,000 jobs.
“This strategic investment will not only increase production capacity but also reduce environmental impact and contribute to agricultural growth,” Paradeep Phosphates said in a statement. The company plans to integrate key raw materials and invest in renewable energy and sustainability initiatives to achieve its objectives.
Paradeep Phosphates currently has a total production capacity of 3 million metric tonnes (MT), including 2.6 million MT of phosphates and 0.4 million MT of urea. It operates manufacturing facilities in Paradeep, Odisha, and Zuarinagar, Goa, producing a range of fertilizers such as Di-Ammonium Phosphate (DAP) and various NPK grades. The company also supplies industrial products like gypsum, HFSA, sulfuric acid, and ammonia.
With a vast distribution network, PPL caters to over 9 million farmers through 70,000 retail points across 15 Indian states.
Following the announcement, shares of Paradeep Phosphates Ltd. closed 1.43% higher at Rs 112.90 apiece, outperforming the NSE Nifty 50 benchmark, which gained 0.37%. Over the past 12 months, the stock has surged 43.05%.
Market analysts remain optimistic about the company’s growth prospects. Out of three analysts tracking the stock, two have a ‘buy’ rating, while one recommends a ‘hold.’ Bloomberg data indicates a 12-month target price implying a potential upside of 19.5%.
