Liberty Phosphate buys land in Dahej; to setup plant

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Liberty Phosphate buys land in Dahej; to setup plant

RR Dhanani, managing director of Liberty Phosphates tells CNBC-TV18 that the company plans to set up a plant for triple superphosphate on the newly purchased land at Dahej

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Liberty Phosphate recently purchased land at Dahej that sent industry observers speculating about the company's plans. RR Dhanani, managing director of Liberty Phosphates clarifies to CNBC-TV18 that the company plans to set up a plant for triple superphosphate on that land. "We envisage a capacity of 100,000 tonne of triple superphosphate and 100,000 tonne for complex and NPK fertilizers," he says. The purchase of the land is complete and the company is now in the process of acquiring environmental clearances for setting up the plant.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: We understand that you have purchased some land at Dahej, could you tell us what the plan is with respect to that? Are you planning to set up a plant there and what capacity increase would that mean?

A: We are already doing our single super phosphate, we are already manufacturing about more than 0.5 million tonne. Now we are going into triple super phosphate at Dahej and the plant capacity what we envisage is 100,000 tonne of triple super phosphate and 100,000 tonne for complex and NPK fertilisers. We have already purchased the land and we are in a process of putting up further environmental clearance and all other statutory requirement.

Q: After the decontrol came out in complex fertilisers, single superphosphate benefited a lot. Can you give us a guidance in terms of what we could we can expect in the PAT figure or the profitability of the company in FY12?

A: During FY12, we have projected about Rs 60 crore of profit.

Q: Any diversification plans that you have into other products etc now that urea might be decontrolled as well?

A: No, not in urea because we are in phosphate fertiliser company. We would like to go in the phosphate segment only. We have derivatives like triple superphosphate and NPK which is our core product, so we don't want to diversify right now. We are just doing debottlenecking of our existing capacity to utilise more capacity for single superphosphate.

Q: You are looking to put up new projects in other states Uttar Pradesh, Haryana, central Madhya Pradesh, Andhra Pradesh, when will all these plant fructify?

A: We have only one plant right now in Uttar Pradesh at Raibareilly, for which we are awaiting environmental clearance. We have already tied up for the working capital and term loan. We are just waiting for the clearance, so we will start putting up project and we will be completing by March 2012.

Q: You also indicated that you are looking to do about 60 crore with respect to the bottomline. What will revenues look like in FY12?

A: Maybe about Rs 450 crore.