Emerging Opportunities in the Fertilizer Market

Emerging Opportunities in the Fertilizer Market.

List of Profitable Projects on Fertilizers, Macronutrients and Micronutrients, NPK, SSP, Urea, Nitrogen Fertilizer.

 

Fertilizers are food for plants. Fertilizer helps farmers feed our growing population. Plants require 17 essential nutrients in the soil to survive and to grow. Fertilizers help replenish these nutrients after each harvest.

A fertilizer is a natural or synthetic, chemical-based substance that is used to enhance plant growth and fertility. Fertilizers may also enhance water retention and filter any excess liquid, hence enhancing soil effectiveness. Fertilizers typically offer the three major macronutrients potassium, phosphorus, and nitrogen. Fertilizers may also add secondary nutrients such as sulfur, magnesium, and calcium to the soil or growing media. Fertilizer is any substance, from plant food pellets to worm compost that makes the soil more fertile. After all, soil provides nutrients to plants, so fortifying it with the right minerals and microbes helps grow hardy, healthy plants.

Both organic and inorganic fertilizers provide plants with the nutrients needed to grow healthy and strong. However, each contains different ingredients and supplies these nutrients in different ways. Organic fertilizers work over time to create a healthy growing environment, while inorganic fertilizers provide rapid nutrition. Determining which is better for your plants depends largely on the needs of your plants and your preferences in terms of cost and environmental impact.

A benefit of inorganic fertilizers is that they work more quickly than do organic fertilizers because they contain a higher percentage of nutrients; however, long-term use of inorganic fertilizers may contribute to soil depletion.

The Indian Fertilizer Industry has shown tremendous growth in the last five decades and at present ranks third in the world. India is the second largest consumer of fertilizers after China. India also ranks second in the production of nitrogenous fertilizers and third in phosphatic fertilizers whereas the requirement of potash is met through imports since there are limited reserves of potash in the country. India is another major market for NPK (nitrogen, phosphate, and potash) fertilizers.

Fertilizers play an important role in increasing efficiency of agricultural output. With the strengthening of pricing control policies and reforms, the fertilizers market is expected to be regulated soon in India. Fertilizer products are based on chemicals such as Nitrogen, Potassium and Phosphorus, where nitrogen based fertilizers have the largest usage in India. The major factors which are driving the growth of the agricultural fertilizers market in India are government subsidy and increased demand of food grains.

 

Nitrogenous Fertilizer

Demand : Past and Future

Year

(In Million Metric Tonne)

1990-91

8.00

2000-01

11.11

2001-02

11.04

2002-03

10.63

2003-04

10.77

2004-05

11.75

2005-06

12.75

2006-07

13.80

2007-08

14.50

2008-09

15.40

2009-10

14.90

2010-11

15.35

2011-12

16.10

2012-13

16.90

2013-14

17.60

2014-15

18.10

2015-16

19.50

2016-17

19.95

2017-18

20.35

2018-19

20.85

2019-20

21.00

2024-25

23.50

 

Urea

Demand : Past and Future

Year

(In Million Metric Tonne)

1990-91

14.08

2000-01

19.72

2001-02

19.28

2002-03

18.78

2003-04

19.15

2004-05

20.86

2005-06

22.30

2006-07

24.25

2007-08

25.15

2008-09

26.25

2009-10

26.00

2010-11

26.75

2011-12

27.85

2012-13

29.80

2013-14

31.20

2014-15

31.95

2015-16

32.60

2016-17

33.25

2017-18

33.75

2018-19

34.35

2019-20

35.40

2024-25

40.50

 

Di-ammonium Phosphate (DAP)

Demand : Past and Future

Year

(In Million Metric Tonne)

1990-91

4.25

2000-01

5.85

2001-02

6.20

2002-03

5.45

2003-04

5.60

2004-05

6.25

2005-06

6.75

2006-07

7.40

2007-08

7.20

2008-09

7.65

2009-10

7.80

2010-11

8.85

2011-12

10.70

2012-13

11.25

2013-14

11.50

2014-15

12.00

2015-16

12.20

2016-17

12.50

2017-18

12.65

2018-19

12.95

2019-20

13.20

2024-25                         

14.25

 

Single Super Phosphate (SSP)

Demand : Past and Future

Year

(In Million Metric Tonne)

1990-91

3.56

2000-01

2.86

2001-02

2.60

2002-03

2.50

2003-04

2.54

2004-05

2.55

2005-06

2.75

2006-07

2.90

2007-08

2.95

2008-09

3.10

2009-10

3.05

2010-11

3.15

2011-12

3.75

2012-13

4.10

2013-14

4.50

2014-15

4.90

2015-16

5.10

2016-17

5.75

2017-18

6.20

2018-19

6.70

2019-20

6.90

2024-25

8.25

 

Here are few Projects for Startups:

MINI FERTILIZER PLANT

All living beings require certain essential nutrition for its survival & growth. Plants and other vegetation are also requiring certain foods to grow. The fertilizers are that materials which are added to the soil, to supply nutrients for the survival & formed growth of plants. It is the most important product of the chemical industry……..Read more

SINGLE SUPER PHOSPHATE & MIXED FERTILIZER

Broadly speaking a fertilizer or manure, may be interpreted to mean anything that will increase the yield of a crop is added to the soil. Generally the fertilizers are divided into two main classes. First natural or organic manures and second artificial fertilizers. The Indian fertilizer industry is spread in all parts and corners of the country……Read more

NPK FERTILIZERS

Fertilizer is a material that is added to the soil to supply one or more elements required for plant growth and productiveness. The major three elements are nitrogen, potassium and phosphorus, the secondary elements are calcium, sulfur, magnesium, and other elements are boron, manganese, iron, zinc, copper and molybdenum…….Read more

ORGANIC FERTILIZER (IN SOLID AND LIQUID FORMS)

Like human beings, plants too need the right kind and amount of food for their growth and development. But unlike man, plants cannot move around to collect their food. They have to synthesize their own food. To synthesize their food, plants require nutrients in addition to light, heat, air and water. Organic fertilizer is used to produce the tasteful crops……..Read more

MAGNESIUM SULPHATE AS FERTILIZER GRADE

Magnesium sulphate is used, as fertilizer for supplying trace amounts of magnesium and sulphate to the plant. Magnesium sulphate is manufactured by using magnesium ores. There is requirement of grinding machine magnetic separator, stone separator and packing machine. It can be packed in gunny bag and store in the room of normal temperature…….Read more

MIXED FERTILIZER (FROM ORGANIC WASTE)

Mixed fertilizer is a mixture of balance bio-fertilizer and balance in organic fertilizer like DAP and potassium nitrate. There are varieties of use of mixed fertilizer. There are many private organizers and few organized manufacturers are available in India, who are manufacturing different variety of fertilizer……..Read more

SINGLE SUPER PHOSPHATE

Single Super Phosphate (SSP) Fertilizer industry is the pioneering fertilizer industry in the country and the first SSP plant is said to have been established by EID Parry in the year 1906. Manufacturing of SSP is based on perhaps the simplest chemical reaction amongst chemical fertilizer industry. The main raw materials required are rock phosphate and sulphuric acid…….Read more

CUSTOMIZED FERTILIZER (FOR HIGHER CROP PRODUCTIVITY)

Fertilizer is an essential key input for production and productivity of crops. Fertilizer alone contributes towards 55% of additional food production. Since there is no scope for extending the cultivable area, more productivity per unit area is the only option and fertilizer is the main cart puller…….Read more

VERMICOMPOST

Vermicompost is a newly developed compost fertilizer which can be used largely instead of inorganic as well as organic fertilizer. The production of vermicompost involves breeding of earth worms in a mixture of cow dung, soil and agriculture residue till the whole mass is converted into cast. This cast is then collected to give the vermicompost…….Read more

POTASSIUM SULPHATE (FERTILIZER GRADE)

Potassium sulphate is an important chemical fertilizer is preferably used for tobacco and citrus crops which is one of the most vital input for agriculture. With the increasing trend to multiply cropping in a year the needs for fertilizer is increasing……..Read more

MICRONUTRIENTS FERTILIZER

Micronutrients are elements which are essential for plant growth, but are required in much smaller amounts than those of the primary nutrients; nitrogen, phosphorus and potassium. The micronutrients are boron (B), copper (Cu), iron (Fe), manganese (Mn), molybdenum (Mo), zinc (Zn), and chloride (Cl)……..Read more

ZINC SULPHATE (AGRICULTURE GRADE)

Zinc sulfate is a powder that is colorless and completely water-soluble. The product can be used in different applications, including some connected with maintaining good health. A number of over the counter products contain some level of zinc sulfate, as well as many prescription medications………Read more

 

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And before diversifying/venturing into any product, wish to study the following aspects of the identified product:


• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period


We at NPCS, through our reliable expertise in the project consultancy and market research field, Provides exhaustive information about the project, which satisfies all the above mentioned requirements and has high growth potential in the markets. And through our report we aim to help you make sound and informed business decision.

 

The report contains all the data which will help an entrepreneur find answers to questions like:

• Why I should invest in this project?
• What will drive the growth of the product?
• What are the costs involved?
• What will be the market potential?


The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product.

The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.


Reasons for buying the report:

• This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, demand of the product and reasons for investing in the product.

• This report provides vital information on the product like its definition, characteristics and segmentation.

• This report helps you market and place the product correctly by identifying the target customer group of the product.

• This report helps you understand the viability of the project by disclosing details like raw materials required, manufacturing process, project costs and snapshot of other project financials.

• The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decision.

 

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• The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players. 

• We use reliable sources of information and databases.  And information from such sources is processed by us and included in the report.

 

Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

 

 

Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR