Which Companies Manufacture Fertilizers in India?

Can you imagine going through your day-to-day activities without food? Not really, right?

In the world's most populous country (now that India has surpassed China), with a population of over 145 crore people, we need to have enough food production.

To achieve this, using fertilizers for higher productivity and yield is mandatory. Until we find out a way to live without food, it's almost guaranteed that fertilizers will be in use.

Right now, the Indian agriculture sector is experiencing a significant revolution as fertilizer companies reshape production to address the challenges of a growing population.

Traditionally, fertilizers have been crucial for boosting crop yields and ensuring food security, but the focus is now shifting towards quality and environmental responsibility.

Fertilizer manufacturers are developing solutions that enhance productivity while promoting soil health and minimizing environmental impact.

That is why you need to closely track the fertilizer industry now more than ever. The sector is poised for structural growth, led by a renewed emphasis towards food security due to shortages and food quality.

Here are the listed Indian fertilizer companies that manufacture fertilizers.

#1 Gujarat State Fertilisers & Chemicals

Founded in 1962, Gujarat State Fertilisers & Chemicals (GSFC) is a leader in India's fertiliser industry, specialising in urea, complex fertilisers, and industrial chemicals.

It operates in two segments - fertilizers and industrial products. It manufactures fertilizers like di-ammonium phosphate, ammonium sulphate, ammonium phosphate sulphate, and urea, as well as industrial products like caprolactam, nylon-6, melamine, MEK oxime, and polymers, among others.

The company's integrated manufacturing facilities enable it to benefit from synergies.

GSFC plays a critical role in enhancing agricultural productivity through innovative solutions and extensive outreach programs for farmers.

In 2023, GSFC launched a series of eco-friendly fertilisers aimed at promoting sustainable agriculture, aligning with government initiatives for soil health.

At present, fertilizers contribute more than 70% to the company's operating income.

At the start of 2024, the company informed the stock exchanges about its commencement of a plant.

Its ammonium sulphate manufacturing plant in Vadodara has started production and the new manufacturing plant added annual capacity of 1.32 lakh MT of ammonium sulphate.

GSFC has planned a massive capex for the next four years, around Rs 28 billion (bn). This should keep the company in healthy stead going forward.

To know more, check out GSFC's financial factsheet.

#2 Coromandel International

Established in 1961, Coromandel International is a major player in the Indian agribusiness sector, specialising in fertilisers, organic fertilisers, crop protection, and specialty nutrients.

The company is dedicated to providing farmers with innovative agricultural solutions, including nutrient management and pest control products.

It's the 2nd largest manufacturer of phosphatic fertilizer in India.

Coromandel also operates a network of around 750+ rural retail outlets across Andhra Pradesh, Telangana, and Karnataka.

Through these retail outlets, the company offers farming services including crop advisory, soil testing, and farm mechanisation to around 3 million farmers.

Earlier this year in 2024, Coromandel's board approved a proposal to set up new phosphoric acid and sulphuric acid plants at Kakinada in Andhra Pradesh with an investment of Rs 10.3 bn.

Last year in 2023, the company had announced the plan to expand its operations in crop protection chemicals and foray into the contract development & manufacturing organization (CDMO) business.

What about the company's financials? They are impressive with strong cash flows as well as a rock-solid balance sheet.

After posting record profit and sales in FY23, the company saw a degrowth in profit as well as sales in FY24. Price pressure particularly in exports amid ongoing competitive dynamics from China affected the demand.

Despite these challenges, management remains positive and anticipates improved numbers from Q2 due to efficient procurement and increased captive production.

To know more, check out Coromandel's financial factsheet.

#3 Tata Chemicals

Founded in 1939, Tata Chemicals operates in both basic and speciality chemistry. The company has the largest saltworks in Asia, is the 3rd largest soda ash manufacturer in the world, and is the 6^th largest sodium bicarbonate manufacturer in the world.

The Tata group firm provides key ingredients to many of the world's leading brands for glass, detergents, pharma, biscuit manufacturing, bakeries, and other industries.

Through its subsidiary, Rallis India, the company is already in the agrochemicals business. Over 50% of Tata Chemicals revenue comes from its key product, soda ash.

Soda ash is mostly used as an ingredient in the manufacture of dyes and colouring agents, synthetic detergents, fertilisers, glass, and gum.

Demand for soda ash is already being driven by rising construction in emerging economies, particularly India. It is widely used in the construction, paper, and textiles industry among others.

According to the company's management, in the short term, the current demand-supply situation is likely to persist but should improve and stabilise over the long term, driven by growth sectors based on sustainability trends.

To know more, check out Tata Chemicals financial factsheet.

#4 Chambal Fertilisers

Founded in 1985, Chambal Fertilisers and Chemicals Ltd. is a leading manufacturer of urea and various fertilisers in India.

It is the largest private player in manufacturing urea, with an installed capacity of 3.4 million tonnes per annum (MTPA).

Apart from urea, it also markets other fertilizers, including di-ammonium Phosphate (DAP), muriate of potash (MOP), speciality plant nutrients and crop protection chemicals.

The company caters to the needs of the farmers in 10 states and is the lead supplier in the states of Rajasthan, Madhya Pradesh, Punjab, and Haryana.

The company recently decided to set up a plant for the manufacture of technical ammonium nitrate, with a capacity of about 240,000 MTPA including a plant to manufacture 210,000 MTPA of weak nitric acid at its existing site at Gadepan, District Kota, Rajasthan.

The total cost of the project is Rs 16.4 bn and is expected to be completed by October 2025.

The company is launching one biological product next year and doubling the pipeline in collaboration with R&D-based organisations in the next 3 years.

It has a pipeline of 12 products currently, the majority of which are weedicides. They have already launched four of these products in the last month.

In addition, the company has now started focusing on biological products. It is targeting a revenue of Rs 17.5 bn from this segment by FY27.

To know more, check out Chambal Fertilizers financial factsheet.

#5 Deepak Fertilisers

Established in 1979, Deepak Fertilisers and Petrochemicals is engaged in manufacturing fertilisers, industrial chemicals, bulk and speciality fertilisers, and technical ammonium nitrate.

It also offers agri services such as farming diagnostics and solutions and is India's first and largest retail destination for home interiors and design.

The company is the largest manufacturer of nitric acid and the only manufacturer of prilled and medical grade ammonium nitrate in India.

It enjoys over 40% market share in the technical ammonium market in India.

Deepak Fertilisers has three manufacturing units with an installed capacity of 1.3 million metric tonnes per annum (MTPA) of industrial chemicals, 0.48 million MTPA of technical ammonium, and 1.1 million MTPA of crop nutrition.

Being the largest manufacturer of nitric acid and the only manufacturer of medical-grade ammonium nitrate, the company has several plans to grow its business. It is investing in expanding its nitric acid and ammonia capacity to cater to the growing demand.

The company is also investing in the crop protection business to ensure steady growth in this segment.

It has entered into long-term gas supply agreements with companies to ensure steady and consistent revenue and profitability.

To know more, check out Deepak Fertilizers financial factsheet.

#6 Rashtriya Chemicals and Fertilisers (RCF)

Founded in 1978, Rashtriya Chemicals and Fertilisers (RCF) is a prominent manufacturer of fertilisers, particularly urea and complex fertilisers in India.

RCF manufactures a wide range of urea, NPK, and water-soluble fertilizers, catering to both soil and greenhouse needs.

Its "Suphala" brand is a household name in the Indian agricultural sector.

The Indian government aims to reduce fertilizer imports by 50% by 2025. This translates to substantial growth opportunities for domestic players like RCF, potentially securing increased government contracts and subsidies.

About 75% of RCF's equity is held by the government of India.

RCF has also forayed into specialty fertilizers and bio-fertilizer segments, to cater to the growing demand for sustainable agricultural practices.

The company is embarking on significant capacity expansion projects for both fertilizers and chemicals.

To know more, check out RCF's financial factsheet.

#7 FACT

Fertilizers & Chemicals Travancore (FACT) is engaged in the manufacturing and selling of fertilizers, its by-products and caprolactam.

The company produces a wide range of fertilisers like complex fertilisers, straight fertilisers, organic fertilisers, bio fertilisers, and imported fertilisers.

FACT also produces bagged gypsum and caprolactam which is used in manufacturing nylon tyre cord, nylon filament yarn, engineering plastics, etc.

To know more, check out the company's financial factsheet.

Which Other Indian Companies Manufacture Fertilizers?

Apart from the above, here are some other companies that are involved in the manufacturing of fertilizers:

• Shree Pushkar Chemicals & Fertilizers
• Khaitan Chemicals & Fertilizers
• National Fertilizers
• Madras Fertilizers
• Gujarat Narmada
• Indian Phosphate
• Agro Phos India

For the entire list, check out Equitymaster's stock screener which has a separate screen for fertilizer companies in India.

Conclusion

The fertilizer sector's role is critical, serving as the backbone of India's agricultural sector, which employs nearly half of the country's workforce.

As the sector moves towards more sustainable and technologically advanced solutions like slow-release fertilizers and nutrient management, the opportunities for investors have never been more abundant.

If you're considering an investment in fertilizer sector stocks, vetting is essential. Look into the financial stability of the company, its market share, and future plans.

Regulatory changes, weather conditions, and raw material availability are also factors that could greatly impact these stocks.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...