Market Research Report : Fertilizers Market in India 2010

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The usage of fertilizers in India has been a very old phenomenon owing to the large scale production of a variety of crops. India being an agro-based country, agriculture is a very important part of the livelihood of a large section of the population. This ever increasing population has put a tremendous pressure on the availability of food grains. This phenomenon is in turn boosting the fertilizers market. Government regulates a large portion of this sector and provides the second largest amount of subsidies to the players. Players are rapidly increasing their production capacities of fertilizer manufacturing plants and so the market is set to boom in the near future. Players in the market are utilizing foreign technologies as well, and are devising better products to suit the crop production and increase the per hectare productivity.

The report begins with an introduction to the fertilizer market indicating the types of fertilizers in India. The market overview section provides details about the consumption levels of fertilizers in terms of nutrients and the segmentation of the nutrients widely used in India for crop production. The production level of such fertilizers in nutrient terms has been indicated along with the import figures of the nutrients. This is followed by the description of the kinds of fertilizer products used in India with the existent nutrients. Their production and consumption levels have been highlighted.

An analysis of the drivers explain the factors for growth of the industry including large subsidies, lack of sufficient usage of fertilizers, growing investments in the fertilizer industry and increasing food grain production. The key challenges identified include price hike of natural gas, unavailability of raw materials and volatile international prices and growing use of micro irrigation systems. The major government bodies regulating this sector have been described with their key roles, activities and functions. Policies of government in form of the new Nutrient based Subsidy Policy (NBS) have been included. The key incentives provided by the government have been analyzed with the key initiatives that the government has taken to boost the overall sector. Key trends identified in the market have been highlighted including water soluble fertilizers, investments from technology providers & players and increasing joint ventures.

The competition section provides an overview of the competitive landscape in the industry illustrating the share of players in terms of Urea production capacities. It also includes a detailed profile of the major players in the market including their financials. The key developments in the sector over the past year have been highlighted.

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Market Research Report : Fertilizers Market in India 2010

  1. 1. Fertilizers Market – India October 2010
  2. 2. 2FERTILIZERS MARKET IN INDIA 2010.PPT SAMPLE Executive Summary Market Fertilizer production in India, nutrient-wise, was X mn tonnes in 20-- Fertilizers are primarily created using 3 nutrients, Nutrient 1, Nutrient 2, and Nutrient 3 X fertilizers with Product 1 are the most extensively consumed fertilizers in India Growth in the market has been propelled by favourable policies by the government Drivers & Challenges Drivers: Large subsidies Lack of sufficient usage of fertilizers Growing investments in the fertilizer industry Increasing lifestyle diseases and therapies Increasing food grain production Challenges: Price hike of natural gas Unavailability of raw materials and volatile international prices Growing use of micro irrigation systems Trends Water soluble fertilizers (WSF) Investments from technology providers & players Increasing joint ventures Govt. Regulations & Initiatives Govt. bodies and associations like X, Y and Z are aiming to provide lucrative opportunities to players in the market by efficiently regulating the usage of fertilizers Recent launch of Policy X provided a major thrust to the market in the form of subsidies Govt. is also promoting indigenous production of fertilizers to reduce dependence on imports Competition Market is highly competitive with major companies battling for increased market share Players are also actively expanding their production capacities and are also reviving their plants Company 1, Company 2 and Company 3 are some of the major X producers in the Indian market
  3. 3. 3FERTILIZERS MARKET IN INDIA 2010.PPT •Introduction •Market Overview •Drivers & Challenges •Government Regulations & Initiatives •Trends •Competition •Key Developments
  4. 4. 4FERTILIZERS MARKET IN INDIA 2010.PPT SAMPLE Consumption of fertilizers has been gradually increasing with rising demand for food Overview Consumption of Fertilizers (Nutrient-wise) Source: • Fertilizer consumption in India has risen steadily owing to the increasing need for food grains to feed India’s large population State 1, 2,3,4,5,6,7 are the largest consumers of fertilizers X-based Product Z accounts for more than half of the fertilizer consumption because of heavy government subsidies • Growth in the Indian industry has been largely due to the policies pursued by the government m 0 z% 2009 s j% k% l% 2008 r g% h% i% 2007 q d% e% f% 2006 p a% b% c% n mn tonnes l o p Fertilizers – Segmentation (Nutrient-wise) Segment 1 Segment 3 Segment 2 Fertilizers Segment 1 Segment 2 Segment 3 Overall consumption is set to grow at a CAGR of X% till 20XX- XX Fertilizers Consumption (20-- - --) A% B% Country 1 Others
  5. 5. 5FERTILIZERS MARKET IN INDIA 2010.PPT SAMPLE Urea is the most extensively produced and consumed fertilizer in India Fertilizer Products – Overview Production of Fertilizer Products Source: •Product 1 is the cheapest and most overused fertilizer in India There are three types of urea plants — X-based, Y- based and Z-based •Major companies like Company 1, 2, 3 and 4 are the leading producers of Urea in India •Apart from Product X, the major fertilizer products used in India are Y, Z, A and B There are X grades of Z complex fertilizers in India •Availability of raw materials and intermediates has been a major bottleneck in the domestic production of fertilizer products During 20XX-XX, the imports of fertilizer products was Z mn tonnes •Furthermore, excess consumption of fertilizer products has led to a large import market •It costs up to USD X bn to set up a Z MT fertilizer plant Consumption of Fertilizer Products mn tonnes t s r q p 0 y% 2010 q j% k% l% 2009 P g% h% i% mn tonnes s r q p 0 z% 2010 y d% e% f% 2009 x a% b% c% Segment 3 Segment 2 Segment 1 Segment 3 Segment 2 Segment 1
  6. 6. 6FERTILIZERS MARKET IN INDIA 2010.PPT Drivers & Challenges – Summary Increasing food grain production Lack of sufficient usage of fertilizers Growing investments in the fertilizer industry Large Subsidies Drivers Growing use of micro irrigation systems Unavailability of raw materials and volatile international prices Price hike of natural gas Challenges
  7. 7. 7FERTILIZERS MARKET IN INDIA 2010.PPT Trends – Summary Key Trends Water soluble fertilizers (WSF) Increasing joint ventures Investments from technology providers & players
  8. 8. 8FERTILIZERS MARKET IN INDIA 2010.PPT SAMPLE In spite of high regulations in the sector, many players are competing for larger market share •Currently, there are X large size fertilizer units in India manufacturing a range of A, B and C fertilizers Of these, P units produce Product 1, Q units produce Product 2 and 3, R units produce low analysis straight Z fertilizers •In spite of tight regulations, there are many companies vying for a larger market share •Lack of fresh investments and price control has for long affected the financial strength of the companies However, new policies and further liberalization is expected to benefit the sector and increase competition •Growing investment from private players in the market for capacity expansion and entry of newer players will increase competition Overview X Production – India (20-- - --) Source: k% j% i% h% g% f% e% d% c% b% a% Others Company 10 Company 9 Company 8 Company 7 Company 6 Company 5 Company 4 Company 3 Company 2 Company 1
  9. 9. 9FERTILIZERS MARKET IN INDIA 2010.PPT SAMPLE Major Players (1/24) • It engages in the manufacture of X and other nutritional products for plants and animals in India • Produces various products including plant nutrients, insecticides, and veterinary products • Also produces fertilizers of various quality, anti-bacterial products for agricultural use, and nutritional products for animals • It markets its products through super distributors, distributors, marketing agents, and dealers/retailers Source: Headquarters State 1 Founded 19-- Products Multi-micro nutrient fertilizers, chelated micro nutrient fertilizers, specialty soluble fertilizers Key People MR. A – MD, Chairman Company Snapshot: Company 1 Ltd. Business Highlights Corporate Information Financial Performance Profit / Loss Revenue 1,114.7 727.4 1,016.7 0 500 1,000 1,500 2,000 0 50 100 150 Profit INR mn Revenue INR mn 2010 1,508.6 200920082007
  10. 10. 10FERTILIZERS MARKET IN INDIA 2010.PPT Thank you for the attention About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. The Fertilizers Market – India report is part of Research on India’s Agriculture Industry Series. For more detailed information or customized research requirements please contact: Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on Gagan Uppal Phone: +91 22 4098 7530 E-Mail: gagan.uppal@netscribes.com Gaurav Kumar Phone: +91 33 4064 6214 E-Mail: gaurav.kumar@netscribes.com

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