HYDERABAD: Nagarjuna Fertilizers and Chemicals Ltd, which is part of the Rs 20,000 crore turnover Hyderabad-based Nagarjuna group, is planning to pump in Rs 5000 crore in expanding its fertilizer facility in Kakinada by setting up a 1.3 million tonne per annum brownfield urea project.
This will take up the total capacity of the Kakinada plant to around 3 million tonnes per annum. The Kakinada facility currently has two plants making urea and ammonia with a total capacity of 1.6 mpta and is spread over 1100 acres. The new expansion facility is slated to come up within the existing complex.
We are adding 1.3 mtpa capacity over the next three years at a cost of Rs 5,000 crore. We shall commence work on the project next year. It will take two years to complete," Nagarjuna group chairman K S Raju said on Tuesday.
The company hopes to raise funds for the expansion through a combination of debt, equity and internal accruals. "Debt funding is available in plenty. We will also look at equity and internal accruals to finance the project," Raju explained. The company is already understood to have sought a 2.4 mmscmd gas allocation for the expansion project by 2014-15 and has applied for the necessary approvals for the same. NFCL, the flagship of Nagarjuna group that was set up in 1986-87, manufactures and markets plant nutrients under the Nagarjuna brand.
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