Paradeep Phosphate To Invest Rs 4,000 Crore In Odisha
The company to invest Rs 4,000 crore over five years to increase the phosphatic fertiliser manufacturing capacity in both intermediate and final products.
Paradeep Phosphate Ltd. announced on Thursday that it has signed a memorandum of understanding or MoU, with the government of Odisha for an investment of Rs 4,000 crores in the state.
The company is to invest Rs 4,000 crore over five years to increase the phosphatic fertiliser manufacturing capacity in both intermediate and final products, including port or jetty and infrastructure development, as per the exchange filing.
The investment will escalate the employment capacity directly between 100-150 and indirectly between 700-1,000. "Alongside this, this strategic investment will increase production capacity, reduce environmental impact, and contribute to agricultural growth," the company said.
To achieve this, the company will enhance fertiliser production capacity, integrate key raw materials, and invest in renewable energy and sustainability.
Paradeep Phosphates has a total production capacity of 3 million metric tonnes, including 2.6 million MT of phosphates and 0.4 million MT of urea, as per the filing. The company's manufacturing units in Paradeep, Odisha, and Zuarinagar, Goa, produce a wide range of fertilisers, including DAP and various NPK grades (N10, N-12, N-14, N-19, N-20, N-28), as well as urea.
PPL caters to over 9 million farmers through 70,000 retail points across 15 Indian states and supplies industrial products such as gypsum, HFSA, sulphuric acid, and ammonia.
Shares of Paradeep Phosphate Ltd. closed 1.43% higher at Rs 112.90 apiece, compared to a 0.37% advance at the benchmark NSE Nifty 50. It has risen 43.05% on a 12-month basis.
Two out of the three analysts tracking the company have a 'buy' rating on the stock and one recommends a 'hold,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 19.5%.
