Topsoe, along with IFU and DAF, has secured an 11.7% stake in the Ramagundam fertilizer plant in Telangana, India, as part of the government's initiative to enhance domestic urea production and food security.

Information on the Target

Topsoe has entered into a shareholder agreement to acquire an 11.7% stake in the Ramagundam fertilizer plant located in Telangana, India. This facility consists of two major plants capable of producing 2,200 metric tons per day (MTPD) of ammonia and 3,850 MTPD of urea. The establishment of the Ramagundam project is a crucial component of the Indian government’s initiative to rejuvenate the domestic fertilizer industry, aiming for self-sufficiency in urea fertilizers.

As part of this collaborative venture, Topsoe is partnering with the Danish government-owned Investment Fund for Developing Countries (IFU) and The Danish Agribusiness Fund (DAF). The partners have engaged with key entities, including National Fertilizers Limited (NFL), Engineers India Limited (EIL), Fertilizer Corporation of India Limited (FCIL), Gail (India) Limited (GAIL), and the State of Telangana, to coordinate investments and ensure the successful operation of the plant, which is anticipated to commence in the second quarter of 2019.

Industry Overview in India

The Indian fertilizer sector plays a vital role in the country’s agricultural productivity and food security. Historically dominated by publicly owned companies, the sector has seen limited foreign direct investment due to regulatory challe