On Tuesday, fair trade watchdog Competition Commission of India (CCI) had approved Zuari's open offer to acquire up to 36.56 percent stake in Mangalore Chemicals and Fertilizers Ltd (MCFL) for Rs 398.2 crore.
The increase of Rs 350 per tonne will add an extra burden on the urea subsidy to the tune of Rs 900 crore. Already, the subsidy of Rs 32,000 was rolled over and there was no money with the government to pay the industry even on account bill after April and May (2013).
Suresh Krishnan, MD of Zuari Industries spoke to CNBC-TV18 regarding the urea investment policy and how the issue of gas supply shortage is yet to be resolved
Fertiliser maker Zuari Industries reported a dismal performance in Q4FY12 with a net loss of Rs 4.37 crore. The company had recently demerged its fertiliser business into a separate entity called Zuari Holdings.
Suresh Krishnan, managing director of Zuari Industries said they expect one time positive impact of Rs 25-27 crore from this proposal. "The company had Rs 440 crore worth pending bonds," he told CNBC-TV18.
The managing director of Zuari Industries Suresh Krishnan spoke to CNBC-TV18 about the company’s recent demerger plans. He also elaborated on the fertilizer space as well as what he expects to do in terms of growth for FY12.
The fertilizer manufacturing company sees its FY11 volumes at 2.1 million tonne, while Krishnan says, "the FY12 volumes are expected to grow at 10%."