KRIBHCO to set up fertilizer plant in Andhra Pradesh and declares 15% dividend

Krishak Bharati Cooperative Limited (KRIBHCO), the premier fertiliser producing farmers' cooperative society, has announced setting up of Phosphoric and Potassic (P& K) fertilizer plant at Krishnapatnam in Andhra Pradesh at with total investment of Rs 1000 Crore and incentives from the Andhra Pradesh Government.

This will be the first P&K fertiliser plant of the cooperative, which produces urea only. The plant is being set up in Andhra Pradesh as the state government has offered power at Rs 1 per unit for next Ten years, VAT exemption for next Seven years and host of other incentives, giving benefit to KRIBCO of about Rs 500 crore" said Dr Chandra Pal Singh, Chairman, KRIBHCO, While speaking the 35th Annual General Body meet.

"The land has already been allotted by state government for the fertiliser plant. The annual capacity of the plant will be about 600,000 tonnes and it will require an investment of Rs 1,000 crore . It will take 4-5 years for the project to become operational. There are also plans to increase the capacity of this plant in the second phase and take the total annual capacity to 1.2 million tonnes per annum." Said Mr Singh.

"At present, Kribhco has one urea plant in Hazira in Gujarat having an annual capacity of 2.2 million tonnes. Besides, the cooperative has one plant in Shajhanpur in Uttar Pradesh in partnership with the Shyam group having a capacity of 1 million tonnes and one plant in Oman in partnership with IFFCO." Said KRIBHCO, Managing Director N Samasiva Rao, while speaking on the occasion.

KRIBHCO also declared a dividend of 15 per cent for member cooperative shareholders. The company made a profit of Rs.52 in the year 2014-15.

KRIBHCO's urea production during the year 2014-15 was 22.25 Lakh Metric tonnes and its total Ammonia sales were worth 13.22 Lakh Metric. It also produced and sold 3.55 lakh quintals of seeds of various crops. This included Bt Cotton seeds and other products including maize and hybrid paddy.

Krishak Bharati Cooperative Ltd (Kribhco), a leading fertiliser, seeds and bio-fertiliser producer in the cooperative sector Kribhco, since its commercial operations from 1986-87, has been consistently earning profit and paying dividend to its equity holders - Member societies and Government of India.

Source : Equity Bulls

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