DOCSLIB.ORG

Chambal Fertilizers and Chemicals Ltd

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Chambal Fertilizers and Chemicals Ltd October 26, 2017 Chambal Fertilizers and chemicals Ltd. Bridging structural demand supply gap for growth CMP INR 141 Target INR 228 Initiating Coverage – Buy Key Share Data Company Background Face Value (INR) 10.0 Chambal Fertilizers and Chemicals Ltd (Chambal), promoted by Late K K Birla in Equity Capital (INR Mn) 4162.1 1985, now professionally managed under Chairmanship of Mr Saroj Poddar, is Market Cap (INR mn) 58685.3 India’s largest private sector urea manufacturer. Its two hi-tech nitrogenous fertilizer plants are located at Gadepan, District Kota, Rajasthan, with an installed capacity of 52 Week High/Low (INR) 157/54 ~2 mtpa, sold under ‘Uttam Veer’ brand, primarily in North & West India. It trades in Avg. Daily Volume (BSE) 229,282 complex fertilizers like DAP, MOP, NPK fertilizers, crop protection chemicals BSE Code 500085 (insecticides, fungicides & herbicides), seeds, sulphur, micro-nutrients, complex NSE Code CHAMBLFERT fertilisers and city compost etc. Reuters Code CHMB.NS Investment Rationale Bloomberg Code CHMB:IN Largest private urea manufacturer with robust distribution network Shareholding Pattern (Sept 30, 2017) Chambal is the largest domestic private urea manufacturer with ~6% market share (4th largest in capacity). It has a vast marketing network comprising ~11 regional offices, ~1,500 dealers and ~20,000 village level outlets, through which it caters to farmers in ~10 states in northern (80%), central and western regions 21% of India. To broaden its product offerings, Chambal trades in P&K fertilizers, specialty fertilizers, pesticides, seeds and micro nutrients. Promoters Well timed capex to bridge structural demand supply gap FII With no new capacity addition during the last 2 decades (except revamp of few 13% 58% DII existing plants), India is now a urea deficit market where it produces ~24 mn mt against demand of ~32 mn mt. With a view to bridge this gap, and 8% Government’s favourable New Investment Policy, Chambal is setting up 1.34 mtpa brownfield urea plant at Gadepan, Rajasthan (named as Gadepan III) at a capex of USD 917 mn (~Rs 59.4 bn) of which ~USD 711 mn is being funded through debt. The plant is expected to commission by January 2019. Post Key Financials (INR mn) expansion, Chambal’s urea capacity will increase from 2.01 mtpa to 3.35 Particulars FY17 FY18E FY19E FY20E mtpa, further strengthening its leadership position in the industry. Net Sales 75,534.5 81,784.3 88,002.0 112,590.7 Chambal has entered into long term agreement w.e.f. April 1, 2018 with GAIL Growth (%) -28.2% 8.3% 7.6% 27.9% for supply of natural gas for Gadepan III unit. The gas can also be used in EBT 5,656.3 8,056.4 8,337.9 14,505.9 existing plants Gadepan I & Gadepan II. PAT 2,092.1 5,268.1 5,452.2 9,485.4 Easing/favourable Government regulations augurs well Growth (%) -3.2% 151.8% 3.5% 74.0% The fertilizer industry is highly regulated and with an aim to boost investments, EPS (INR) 5.0 12.7 13.1 22.8 GoI has initiated policy steps that could structurally improve fertiliser industry’s BVPS (INR) 51.0 61.4 72.2 92.7 dynamics with schemes like gas price pooling, DBT, NPS III, Modified NPS III, Key Financials Ratios New Investment Policy, and New Urea policy. The manufacturers get subsidy based on the policies slated in these schemes. Particulars FY17 FY18E FY19E FY20E P/E (x) 28.1 11.1 10.8 6.2 Gas price pooling seeks to change industry dynamics by levelling gas costs for P/BVPS (x) 2.8 2.3 2.0 1.5 all players. The scheme encourages competition among fertilizer manufacturers Mcap/Sales (x) 0.8 0.7 0.7 0.5 mainly on the basis of energy efficiency and production volume and not on price of natural gas input. EV/EBITDA (x) 13.3 15.0 15.2 7.8 ROCE (%) 10.1% 8.2% 7.3% 11.4% Under DBT, the government aims to transfer the subsidy amount directly to ROE (%) 9.9% 20.6% 18.1% 24.6% manufacturers and importers on the basis of actual sales made by retailers to EBT Mar (%) 7.5% 9.9% 9.5% 12.9% beneficiaries. Currently, pilot projects are being conducted and pan-India DBT PAT Mar (%) 5.0% 6.4% 6.2% 8.4% rollout will take some time. Post DBT implementation, we believe companies Debt - Equity (x) 2.2 2.7 2.8 2.3 across the sector are likely to benefit in terms of better working capital cycle. Source: Company, SKP Research Sale of non-core business to turn Chambal a pure urea company As part of long-term strategy, Chambal has divested its non-core businesses Price Performance Chambal vs BSE 500 (textiles, shipping and BPO/BPM arm of IT business solutions). These three 180% businesses were either loss-making or had relatively lower margins, but 160% Chambal 140% BSE 500 accounted for ~30% of the company’s capital employed. 120% The business reorganisation has enabled Chambal to focus on its core 100% 80% business of urea manufacturing and trading in complex fertilisers, where it is 60% planning an aggressive expansion. 40% 20% Valuation 0% Chambal is the largest private urea manufacturer with robust distribution 16 16 17 17 16 16 17 17 17 17 -20% 17 17 17 - - - - - - - - - - - - - network and has planned a well timed capex to bridge structural demand supply Jul Jan Jun Oct Sep Feb Apr Sep Dec Aug Nov Mar May gap in the industry. Post FY19, it is well placed to reap the benefits of reforms Analysts: Nikhil Saboo such as DBT of fertilizer subsidy and possible steps towards removing price Tel No: +91-33-40077019; Mobile: +91-9330186643 regulations on urea in the long term. Its earnings and margins profile is also e-mail: [email protected] likely to improve substantially. VineetAgrawal We have valued the stock at a P/E of 10x of FY20E EPS of Rs 22.8and Tel No: +91-22-49226006; Mobile: +91-9819510575 recommend buy on the stock with a target price if Rs 228 (~62% upside) in 18 e-mail: [email protected] months. SKP Securities Ltd www.skpmoneywise.com Page 1 of 26 Chambal Fertilizers and Chemicals Ltd. Fertilizer industry – an overview Fertilizer is defined as any organic and inorganic substance, natural or artificial in nature, supplying one or more of the chemical elements/nutrients required for plant growth. Categories of nutrients: Sixteen plant nutrients are necessary for plant development. These are classified into three categories viz primary (macro) nutrients, secondary nutrients and micro-nutrients. Application of essential plant nutrients in right proportion, with the use of correct method and time of application helps in increasing crop production. Category Nutrients Comments Nitrogen (N) These are basic nutrients Primary nutrients Phosphorus (P) needed in large quantity Potassium (K) Calcium (Ca2+) Secondary nutrients Magnesium (Mg2+) Needed in small quantity Sulfur Iron, Cobalt, Chromium, Lack of micronutrients may Micronutrients Copper, Iodine, manganese, hamper plant growth Selenium, Zinc etc Source: SKP Research Primary nutrients: Primary nutrients are Nitrogen (N), Phosphorus (P), Potassium (K), Ammonium (NH4+), Dihydrogen Phosphate etc. NPK are frequently required in a crop fertilization programme and are needed in larger quantity by plants. Thus, the Indian fertilizer industry majorly focuses on primary nutrients. Secondary nutrients: Calcium (Ca2+), Magnesium (Mg2+) and Sulfur are secondary nutrients for plants, but are as important as other essential plant nutrients. Micronutrients: Micronutrients which includes Iron, Cobalt, Chromium, Copper, Iodine, Manganese, Selenium, Zinc and Molybdenum, are nutrients required by plants throughout life in small quantities to orchestrate a range of physiological functions. Micronutrients are as important to plant nutrition as primary and secondary macronutrients, though plants don't require as much of them. A lack of any one of the micronutrients in the soil can limit growth, even when all other nutrients are present in adequate amounts. SKP Securities Ltd www.skpmoneywise.com Page 2 of 26 Chambal Fertilizers and Chemicals Ltd. Demand drivers for fertilizers 1. Scarcity of nutrients creates demand for fertilizers: Deficiency of nutrients that are essential for plant growth can lead to lower plant yield. More than 50% of districts in India are deficient in essential plant nutrients, as shown in the diagram below: Source: Investor Roadshow Presentation – May 2017 – Coromandel Fertilizers As per the estimates of ‘Indian Institute of Soil Science’, about 90 mn hectare land is affected by various soil related deficiencies and around 41% of the Indian soil are deficit in Sulphur content leading to stunted plant growth and subsequent lower yields. This creates demand for fertilizers and opportunities for players like Chambal. 2. Unbalanced nutrient applications: Though India ranks amongst the largest agriculture economies globally, its crop yields remain marginal. Nutrient application, a major determinant to crop productivity, has been grossly inadequate and unbalanced, affecting soil health and output quality. Against the ideal NPK nutrient application ratio of 4:2:1, fertiliser usage is divergent towards N, recording nutrient ratio of 7.8:3.2:1 in 2015-16. The main reason behind this imbalance is availability of urea at subsidised price (Rs 5,360/ton), leading the farmers to use urea in unbalanced way. This has also led to illegal export of urea to neighbouring countries. Potash and Phosphate fertilizers are available at ~Rs 24,000/ton and are currently under a decontrolled regime (sold at indicative maximum retail prices). Once decontrolled, there was a steep hike in P&K fertilizers resulting in decline in their demand, causing nutrient imbalance in the soil.
Load more

Recommended publications
  • Jain Irrigation
    15 November 2016 2QFY17 Results Update | Sector: Others Jain Irrigation BSE SENSEX S&P CNX CMP: INR86 TP: INR99(+15%) BUY 26,305 8,108 Bloomberg JI IN Inline results; Outlook remain healthy for 2HFY17; Retain Buy Equity Shares (m) 443.1 Revenue & EBITDA inline, PAT beat estimates: JI reported overall revenue of M.Cap.(INRb)/(USDb) 29.3 / 0.4 INR14.4b (est INR14.34b) as against INR13.17b in 2QFY16 marking a YoY 52-Week Range (INR) 109 / 47 1, 6, 12 Rel. Per (%) -4/27/27 growth of 9.3%. EBITDA stood at INR1.91b (est INR1.86b) in 2QFY17 with Avg Val, INRm/ Vol m 401 EBITDA margins at 13.3% (est 13%), expanding 160bp YoY. Interest cost Free float (%) 69.3 increased to INR1.2b in 2QFY17 vs INR1.1b in 1QFY17 due to increase in debt in this quarter. Adjusted PAT for the quarter stood at a INR280m (est. INR135m) Financials & Valuations (INR b) as against loss of INR54m in 2QFY16. PAT beat our estimates due to tax Y/E Mar 2016 2017E 2018E reversal of INR174m vs our estimates tax outgo of INR35m. Net Sales 62.9 72.3 83.4 EBITDA 8.2 9.9 11.7 Healthy growth outlook for 2HFY17: On consolidated basis, overall Micro PAT 1.0 2.5 4.1 Irrigation Systems (MIS) grew by 13.6% yoy with healthy growth in key markets EPS (INR) 2.2 5.4 8.2 like Maharashtra, AP, Karnataka and Gujarat. Plastic division recorded a 1.3% Gr. (%) 17.7 146.1 52.9 growth YoY due to lower off-take of PE & PVC pipe.
    [Show full text]
  • Promoting Micro Irrigation in India
    [This is a draft paper for discussion. Please do not quote.] IWMI-Tata Water Policy Program Annual Partners’ Meet 2004 Promoting Micro Irrigation in India: A Review of Evidence and Recent Developments* Shilp Verma The research covered by this paper was carried out with generous support from Sir Ratan Tata Trust, Mumbai under the IWMI-Tata Water Policy Program. This is a pre-publication paper prepared for the IWMI-Tata Annual Partners’ Meet, 2004. This is not a peer reviewed paper; views contained in it are those of the author(s) and not of the International Water Management Institute or Sir Ratan Tata Trust. * Based on Research by IWMI-Tata Core Team Visit: http://www.iwmi.org/iwmi-tata ABSTRACT In the classical model of irrigation efficiency, all water applied to the crop is treated as consumed or lost while the integrated basin view of irrigation efficiency views only the effective evapo-transpiration as the consumptive use in irrigation. In either case, increased water efficiency at farm/individual level would not lead to water saving at the system (basin) level unless these higher farm efficiencies are achieved system-wide! Thus, unless the adoption of micro-irrigation is scaled up, it would not make any significant contribution to alleviating the problem of groundwater depletion and in resolving various related issues. Even after more than three decades of promotion by various government and non-government agencies, the spread of micro-irrigation in India is miniscule. The limited growth of micro-irrigation technologies in India can, to a large extent, be explained by the apparent gap between what has been marketed and where the demand lies.
    [Show full text]
  • Marginal Farmers Cover
    SYNTHESIS OF IMPORTANT DICUSSIONS ON MICROFINANCE AND LIVELIHOOD SUPPORT TO SMALL AND MARGINAL FARMERS SPECIAL THANKS We are grateful to the following members of Solution Exchange for their responses to the discussions related to small and marginal farmers – Abhinandan L. B. Prakash Rakesh Das Abhishek Mendiratta L. P. Semwal Rakesh Kumar Gupta Anupama Sharma M L Sukhdeve Ramakrishna Nallathiga Arun Jindal M. Vijaybhasker Srinivas Ravinder Yadav Ashok Kumar Sinha, Mahendra Parida Resham Singh Avishek Gupta Mangesh Patankar Ritesh Dwivedi Bharathi Bhupal Manoj Singh Ruturaj Pattanaik Bhupal Neog Maroti Upare Sachin Kumar Bibhuti B. Pradhan N. Jeyaseelan Sanjay Kumar Gupta D. S. K. Rao N. Srinivasan Sanjay Verma G. K. Agrawal Navin Anand Sanjeev Kumar G. V. Krishnagopal Neelesh Kumar Singh Sarat Kumar Patnaik G. V. Ramanjaneyulu Neelkanth Mishra Satish Kumar Anand George Thomas Neeraj Verma Saurabh Vikas Girija Srinivasan Nidhi Sadana Sabharwal Shailja Kishore Gurusamy Gandhi Nitin Bembalkar Shivani Bhardwaj Harish Chotani P. Purushotham Suman K. A Hemantha Kumar Pamarthy P. S. M. Rao Sunil Kumar Indu Chandra Ram P. Uday Shankar Susanta Kumar Nayak Jalpa Sukhanandi Prakash Kumar Trilochan Sastry Jay Prakash Lall PSM Rao Umesh Chandra Gaur Jaya Patel Puran Singh Yadav Veerashekharappa Kalika Mohapatra R. K. Swarnkar Vineet Rai Kedareswar Choudhury R. V. Kotnala Vineet Sinha Krishan Khanna Rajesh K. Verma The Consolidated Responses in this document are the outcome of the expertise and skills of Resource Persons and Research Associates. We profusely thank Gopi Ghosh, Monika Khanna, Raj Ganguly, T. N. Anuradha, Nitya Jacob and Sunetra Lala. We acknowledge their valuable contributions in preparing some of the consolidate replies incorporated in this document.
    [Show full text]
  • DIFFUSION of AGRICULTURAL TECHNOLOGICAL INNOVATIONS in UTTAR PRADESH SINCE 1980'S
    DIFFUSION OF AGRICULTURAL TECHNOLOGICAL INNOVATIONS IN UTTAR PRADESH SINCE 1980's DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF iWaster of ^Ijilosopi)? IN GEOGRAPHY BY MD. SHAMIM KHAN UNDER THE SUPERVISION OF DR. ATEEQUE AHMAD (Reader) DEPARTMENT OF GEOGRAPHY ALIGARH MUSLIM UNIVERSITY ALIGARH (INDIA) 2005 DS3938 Dr. Ateeque Ahmad Department of Geography Reader Aligarh Muslim University Aligarh-202002 (India) Dated ^:tJ<.. This is to certify that Mr. Md. Shamim Khan has compehed his M.Phil, dissertation entitled "Diffusion of Agricultural Technological Innovations in Uttar Pradesh since 1980" under my sueprvision. The work presented in the dissertation in my opinion is fit for evaluation. He completed this work with unflagging zeal, interest and enthusiasm and tried to learn the subject assidously. (Dr. Ateeque Ahmad) CONTENTS Page No. Acknowledgement List of Figures List of Tables r-I INTRODUCTION 1 -• 36 (a) Meaning and Definition of Diffusion of Innovations i"^) Sowces of DaVa (c) Work Review Done so Far (d) Methodology (e) Hypothesis (f) Objectives Chapter-II GENERAL PHYSICAL SETTING AND DEMOGRAPHIC CHARACTERISTICS OF 13TTAR PRADESH ^"^ - ^'^ (i) Geogrpahical Background f (a) Physical Feature (b) Geology ^(c) Soil) (d) Groundwater /(e) Climate ) (f) Rainfall ^ (g) Drainage f (h) Physical Resource Base (i) Importance of Agriculture in State Economy (ii) Demographic Characteristics Chapter-Ill AGRICULTURAL DEVLEOPMENT 68-119 (i) Techno-Institutional Development in ^^ Agriculture - A
    [Show full text]
  • Investment in Water Infrastructure in India
    MAY 2010 In this issue ¢ Analyzing the US$30 bn annual Deluge of opportunity ¢ Understanding Opportunity pricing and regulation in the water sector ¢ Identifying social and corporate risks Gamechangers ¢ Cost-plus pricing for water, energy ¢ Significant investment in water infrastructure ¢ Water conservation Akhilesh Tilotia [email protected] Mumbai: +91-22-6634-1139 Important disclosures appear at the back About Gamechanger Gamechanger offers perspectives on ideas and developments that can potentially alter the course of the markets. The series will explore and analyze ideas, challenge conventional wisdom, play advocate or devil’s advocate depending on research conclusions. The factors that we identify as market gamechangers could come from anywhere – from policy or politics, from people or ideas, from rain or from regulation. They could change the game for the better or for worse. Gamechanger research has implications on macro socio-economics and on long-term market behavior. Read it and stay ahead of the India story. April 2010 An analysis of India’s readiness for its forthcoming demographic dividend KOTAK INSTITUTIONAL EQUITIES RESEARCH 2 Foreword We borrow from Adam Smith who aptly used the term ‘paradox of value’ to describe the fact that water though life-giving is free while diamonds command a high price. More than 200 years later, the irony persists, save in small pockets of the globe where water is finally getting its due. The debate between ‘inalienable rights to natural resources’ rages alongside free- market valuations of the commodity. Between these poles, we explore the space where appropriate pricing can make the ‘right to water’ a viable proposition.
    [Show full text]
  • Decline of Tank Irrigation Institutions in South India - a Case of Tamil Nadu
    National Seminr on Water & Culture, Hampi,Bellary Dist TITLE:DECLINE OF TANK IRRIGATION INSTITUTIONS IN SOUTH INDIA - A CASE OF TAMIL NADU V.Gandhiraj Research Scholar, Madras Institute of Development Studies No. 79, Second Main Road, Gandhi Nagar, Adyar, Chennai-600 020 Tamil Nadu Phone: 044-24412589,Fax 022-24910872 email: [email protected] Abstract: The tanks occupy vital role in the irrigation as well as local ecosystem in the semi-arid and regions of South India. Meanwhile, tank provides multiple uses like source of drinking water for uncountable rural and urban communities and livestock, fish culture, recharge of ground water, control of floods etc. However, after the independence the significant source of tank irrigation has drastically decreased due to several socio-economic and institutional factors, particularly the changes in land ownership pattern, caste, class configuration and importance given to canal systems and over exploitation of ground water. At the same time today there is alarm that these valuable and extensive resources are in a state of collapse, contributing to increased drought vulnerability in some of the poorest districts in the country. The main motivation of this paper is to examine the importance of tank irrigation in South India particularly in case of Tamil Nadu and tries to find out why tank irrigation failed in the reign and how to improve this precious irrigation system. The paper also makes an effort to recommend policy guideline measures to revive tank irrigation in south India. The study is based on a critical reading of tank irrigation literature and available secondary data. DECLINE OF TANK IRRIGATION INSTITUTIONS IN SOUTH INDIA - A CASE OF TAMIL NADU Full paper Tank irrigation is one of the oldest and significant sources of irrigation in India and is particularly in south India (Palanisamy, 1998).
    [Show full text]
  • National Infrastructure Pipeline
    National Infrastructure Pipeline Report of the Task Force Department of Economic Affairs Ministry of Finance Government of India Volume II 1 2 Contents Infrastructure Progress 20 Sector Progress, Deficits and Challenges, Vision and Reforms 23 General Reforms 174 Financial Sector Reforms 188 Infrastructure Financing 206 Business Models 230 Financing the NIP 244 Way Forward 248 Annexure 254 3 List of Figures Figure 1 Year-wise investment trend in infrastructure (Rs lakh crore, FY13-17, FY 18E and FY 19E) 21 Figure 2 Share of infrastructure investment by the Centre, states and private sector 21 Figure 3 Power sector investment (Rs lakh crore) and share in total infrastructure investment (%) 24 Figure 4 Trends in power generation capacity (GW) and per capita electricity consumption in India (kWh) 25 Figure 5 Trend in power transmission lines in India (ckm) 25 Figure 6 Length of natural gas pipeline in India (in km) 27 Figure 7 CGD bidding rounds snapshot 27 Figure 8 Per capita consumption (kWh/ person) 29 Figure 9 Share of fossil fuel in electricity generation (%) 29 Figure 10 Electricity distribution losses (%) 29 Figure 11 Gas consumption by different sectors (in MMSCMD) 30 Figure 12 Roads sector infrastructure investment (Rs lakh crore) and share in total infrastructure investment (%) 46 Figure 13 Trend in road network in India (lakh km) 46 Figure 14 Achievement targets set by MoRTH 47 Figure 15 Road connectivity (Score: 1 - 100) 49 Figure 16 Quality of road infrastructure (Score: 1 – 7) 49 Figure 17 Railways infrastructure investment (Rs
    [Show full text]
  • Irrigation and Water Use Efficiency in South Asia
    Irrigation and Water Use Efficiency in South Asia Ali Hasanain1, Shahid Ahmad2, Muhammad Zia Mehmood3, Sidra Majeed4, and Genet Zinabou5,6 South Asia is one of the world’s most densely populated and poorest regions, but also the region with the highest rates of irrigated agriculture. Increasingly, the region’s water resources are becoming stressed through population growth coupled with poor management. This paper reviews the water policy experiences of India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan and the Maldives, and documents important differences and many commonalities in these practices. It then discusses the theory of water pricing in centrally managed as well as market irrigation systems. Often, the proposed solution to the lack of water use efficiency is to prescribe the adoption of better technical solutions. We review some of these in an appendix. The paper also summarizes the problems of water use, discusses obstacles to solving these issues, elaborates on policy options that are realistic in the given context, and the obstacles to the implementation of even these more realistic policy options. We conclude that water does not exist in a vacuum: while better policies can make a difference, more efficient management of water ultimately requires the state to play a strong supporting role to farmers, and any public service delivery improvement is in South Asia, as elsewhere, contingent on deep and sustained political reforms. 1 Lahore University of Management Sciences 2 Pakistan Agricultural Research Council 3 Lahore University of Management Sciences 4 Pakistan Agricultural Research Council 5 Global Development Network 6 We would like to thank Minahil Zafar, Danya Arif and Maha Rehman for excellent research support.
    [Show full text]
  • Micro-Irrigation: an Efficient Technology for India's Sustainable
    Kalpa Publications in Civil Engineering Volume 1, 2017, Pages 398{402 ICRISET2017. International Conference on Re- search and Innovations in Science, Engineering &Technology. Selected papers in Civil Engineering Micro-Irrigation: An Efficient Technology for India’s Sustainable Agricultural Growth Dr. Khadeeja Priyan1,2 and Ratansharan Panchal1,2 1 Department of Civil Engineering 2 G H Patel College of Engineering & Technology, Vallabh Vidyanagar, India. [email protected], [email protected] Abstract India being an agrarian country, the present and future challenges of agricultural demand due to population increase can be met by technological innovations for sustainable agriculture. Indian agriculture beset with water scarcity and becomes less remunerative and uncertain. Since water being a precious resource for agriculture, every drop of water available for irrigation is significant for overall farm efficiency. Hence there is prudent and paramount need for efficient use of the available water and micro- irrigation is one such innovative technology. Economic return is very important for the adoption of any new technology. Economic return with more engineering approaches to keep water productivity more relevant in economic considerations [1]. Raising the physical productivity of water in crops without due considerations to economics will not have much relevance to small farmers in developing countries [2]. This paper assesses the current status and technologies of micro-irrigation and evaluating the future prospects of micro-irrigation adoption in India. The rationale of the paper is to appraise micro-irrigation as an innovative technology for sustainable agriculture in India and its significant impact on water productivity and land productivity. 1 Introduction Water is a scarce natural resource and the major requirement of water is in agricultural sector.
    [Show full text]
  • Zuari Agro Chemicals Ltd
    October 3, 2018 Zuari Agro Chemicals Ltd. Integrated solution provider for farmers… CMP INR 243 Target: INR 400 Initiating Coverage: Buy Key Share Data Company Background Zuari Agro Chemicals Ltd. (Zuari), a part of Adventz Group of Mr Saroj Poddar (originally Face Value (INR) 10.0 promoted by Late K.K. Birla in 1967), is amongst India‘s largest pure-play fertilizer companies Equity Capital (INR Mn) 420.6 on a consolidated basis, manufacturing Urea, DAP, NPK and other complex fertilizers. Its eight Market Cap (INR mn) 10220.1 plants are located in Goa, Maharashtra, Karnataka (MCFL) and Odhisa (PPL) with an installed capacity of ~3.5 mtpa, sold under ‗Jai Kisaan‘ brand, with pan India presence. It also sells 52 Week High/Low (INR) 689/220 externally sourced products like DAP, SSP, MOP, specialty fertilizers, and other agri inputs like Avg. Daily Volume (BSE) 28,973 pesticides, seeds and micro-nutrients, through its extensive retail distribution network. It BSE Code 534742 acquired Mangalore Chemicals & Fertilisers Ltd. (MCFL) in 2015. It also owns 40% in its associate Paradeep Phosphates Ltd (PPL), Odhisa. NSE Code ZUARI Investment Rationale Reuters Code ZUAR.NS India’s largest private player in complex fertilizers with strong brand recall and robust Bloomberg Code ZUAC:IN distribution network Shareholding Pattern (Jun 30, 2018) Zuari Group (Zuari, MCFL, PPL) is the largest private complex fertilizer manufacturer in India. It is the largest Water Soluble Fertiliser (WSF) maker with 24% market share and fourth largest private DAP manufacturer with 16% market share. Its robust distribution network comprising of ~8,000 dealers and ~75,000 sub-dealers nationwide with access to ~23 mn farmers, helped Zuari Group retain its industry leadership.
    [Show full text]
  • Pampered Views and Parrot Talks: in the Cause of Well Irrigation in India
    Pampered Views and Parrot Talks: In the Cause of Well Irrigation in India M. Dinesh Kumar 1 and MVK Sivamohan 2 ABSTRACT The paper reveals some of the fallacies in Indian irrigation. They are as follows. Groundwater is a democratic resource; access to well irrigation is more equitable than canals; well irrigation is more productive than canal irrigation and therefore is superior to canal irrigation. Surface irrigation is becoming increasingly irrelevant in India’s irrigation landscape in spite of growing investments, and therefore future investments in the sector should be diverted for well irrigation. The growth in well irrigation in semi arid regions of India can be sustained by recharging the aquifers using local runoff. Well irrigation can boost agricultural growth and eradicate poverty in water-abundant eastern India. The paper makes the following arguments. The inherent advantages of surface irrigation system over well irrigation such as higher system dependability and the ability to effectively address spatial mismatch in resource availability and demand, means the second is not a substitute for the first. The use of outdated irrigation management concepts which treat “drainage” as waste leads to underassessment of efficiency of surface systems. Sustaining well irrigation in semi arid and arid regions would need “imported surface water” rather than local runoff for recharging. The use of simple statistics of “area irrigated’ to pass judgements about performance of surface irrigation systems is sheer misuse of statistics, as there are complex socio-economic and hydrological processes adversely affecting their performance, which are beyond the institutional capacity of irrigation agencies to control. Well irrigation alone cannot boost agricultural growth and reduce poverty in eastern India as the region has very low per capita arable land, and offers low marginal returns from irrigation owing to high humidity and rainfall.
    [Show full text]
  • Morning Notes Date: 18.02.2013
    Morning Notes Date: 18.02.2013 For Internal circulation only GRAPH GLOBAL NEWS Singapore’s January Exports Rise Less Than Estimated on Drugs Singapore’s exports rose less than estimated in January as manufacturers shipped fewer electronics and pharmaceutical goods. Non-oil domestic exports gained 0.5 KEY INDICES percent from a year earlier, after a 16.3 percent drop in Indian Markets December, the trade promotion agency said in a statement today. The median of 11 estimates in a Bloomberg News Index Close Pt. Chg. Change % survey was for a 3 percent increase. “It’s still looking a little bit subdued” outside of China, Euben Paracuelles, an S&P CNX NIFTY 5887.40 -9.55 -0.16 economist at Nomura Holdings Inc. in Singapore, said CNX NIFTY JUNIOR 11871.35 +26.95 0.23 before the report. The U.S. economy is still weak and CNX 100 5798.10 -5.95 -0.10 Europe remains in a recession, he said. S&P CNX DEFTY 3774.10 -18.80 -0.50 Yen Weakens After G-20 Refrains From Censuring Japan S&P CNX 500 4647.25 -3.10 -0.07 CNX MIDCAP 7925.20 +29.85 0.38 The yen fell against the dollar, extending losses that made it the worst-performing major currency in the past three NIFTY MIDCAP 50 2152.25 +12.45 0.58 months, after the Group of 20 refrained from censuring SENSEX 19468.55 -29.03 -0.15 Japanese policies driving the decline. The final G-20 communique released in Moscow on the weekend fell short Global Markets of last week’s Group-of-Seven statement and means recent trends in major currencies are now set to resume, Morgan Index Close Pt.
    [Show full text]