Meghmani Organics forays into nano urea, to set up Rs 150-crore plant in Gujarat

A farmer casts urea on her mustard field in the northern Indian city of Allahabad

Meghmani Organics Limited’s wholly owned subsidiary MCNL has signed a licensing agreement with one of India's leading domestic fertiliser manufacturer to produce nano urea fertiliser, the company said on December 23.

Nano urea is a liquid fertilizer and is effective in enhancing the nutritional quality, crop’s productivity and is environmentally safe.

MCNL will incur a capex of Rs 150 crore for setting up a nano urea plant in Gujarat, the company said in a statement.

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The plant's annual capacity is pegged at 5 crore bottles (500 ml) a year. MNCL is expected to commence the commercial production by Q4 FY24 and will achieve a top line of Rs 1,000 crore on annual basis, the statement said.

India’s urea demand stands at 35 million metric tons (mmt) per annum, of which nearly 29 mmt is produced domestically while the balance is imported.

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The government has set the target to eliminate India’s dependency on urea imports by 2025, as more farmers adopt nano urea. It will also help reduce government’s subsidy burden on the conventional urea.

Fertilisers minister Mansukh Mandaviya has said India aims to end imports of urea from 2025, as the nation boosts its local production capacity with the commissioning of new plants,

India, the top importer of urea, imports about 30 percent of its average 35 million tonnes of annual consumption of the crop nutrient.

"We are aiming for ending our dependence on imported urea by 2025... our five new plants will be commissioned by then," Mandaviya had said.