Israel Chemicals Ltd. (TASE: CHIM) and Zuari Industries Ltd. will set up a joint venture that will build and operate a soluble NPK fertilizer production facility and its production throughout India. Zuari is a member of the KK Birla Group Ltd. (BSE:500335), an Indian multinational conglomerate, and a major producer and distributor of fertilizers and agricultural products.
The plant will have an initial capacity of 10,000 tons per year. The plant will utilize the two companies’ complementary technology, knowledge, experience, and raw materials.
Israel Chemicals said that the partnership would boost its sales of high-margin specialty fertilizers throughout the rapidly growing Indian market and position it to increase sales of all ICL Fertilizer products. Zuari will give the company access to its top-tier sales, marketing, and distribution channels as well as to its customer base in India, helping the company strengthen regional sales of its Specialty Fertilizer product lines.
ICL's Specialty Fertilizers senior VP Yossi Zidon said, "The fact that Zuari has been one of our primary Indian clients for years has built a strong platform of mutual respect and trust between our two companies, representing a solid foundation for our joint venture. Taken as a whole, we are pleased to enter into this partnership and optimistic regarding its future potential."
Published by Globes [online], Israel business news - www.globes.co.il - on July 31, 2007
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