The Hindu : Business : IFFCO forms venture in Egypt

Online edition of India's National Newspaper
Wednesday, Nov 23, 2005

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Business

IFFCO forms venture in Egypt

NEW DELHI: Fertilizer and cooperative giant Indian Farmers and Fertiliser Cooperative (IFFCO) has formed a joint venture company for setting up a state-of-the-art phosphoic acid unit in Egypt in collaboration with El Nasar Mining Company (ENMC) estimated to cost $325 million.

The project, Indo-Egyptian Fertiliser Company (IEFC), launched on Monday in Egypt will be financed with a debt equity ratio of 70:30 in which IFFCO is the major stake holder with 76 per cent while the balance 24 per cent will be held by ENMC, an IFFCO release said here on Tuesday.

Egypt's largest rock phosphate mining company will supply rock phosphate, the basic raw material for the project while IFFCO will buy back the entire phosphoric acid, thus produced for its DAP plant at Kandla.

Surinder Kumar Jakhar, Chairman, IFFCO, has been elected Chairman of IEFC.

Free Zone status

After the first board meeting of the joint venture company in Cairo, IFFCO Managing Director, U. S. Awasthi, said necessary land for the construction of the project at Edfu, near the rock phosphate mines, has been allotted by the Aswan Governorate and the project had been accorded Free Zone status by the General Authority for Investments and Free Zones, Egypt.

Discussions with international financial institutions for syndication of about $220 million loan for the project were in progress, he said. Mr. Awasthi said with the commissioning of the project, IFFCO would have assured supply of bulk phosphoric acid for its Kandla Plant. — UNI

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