SOUTHERN PETROCHEMICAL INDUSTRIES CORPORATION LIMITED Company Background Association of India and the National Safety Award for best safety performance by British Safety Southern Petrochemical Industries Corporation Council, UK, in 2003.The group's API and dosage Limited (SPIC), headquartered in Chennai, India, manufacturing facilities conform to WHO-cGMP was founded in 1969. SPIC Ltd. has four main norms and its antibiotic manufacturing facility is business divisions - the fertiliser division that the only Indian plant that has been approved by manufactures fertilisers and intermediates; the US FDA for the production of penicillin-G pharmaceuticals division that manufactures potassium. penicillin, active pharmaceutical ingredients (API), finished dosage products and industrial enzymes; For the financial year ending 31 March 2005 the engineering/construction services division that (FY05), SPIC registered a consolidated total income offers specialised and turnkey project-based of US$ 607.2 million and a profit after tax (PAT) solutions in sectors such as fertilisers, chemicals, of US$ 5.24 million. pharmaceuticals, oil and gas, and power; and the agri-business division that offers products, such as SPIC in the Arab World hybrid seeds, bio fertilisers etc., for agriculture development. SPIC marks its presence in the Arab World through its JVs - Indo-Jordan Chemicals Company Limited SPIC Ltd., an industrial conglomerate, operates its in Jordan, Gulf SPIC General Trading and business through a number of subsidiaries and joint Contracting Company Ltd. in Kuwait and SPIC ventures (JV), mainly in India and in the Middle East. Fertilizers & Chemicals FZE in the UAE. SPIC has multiple manufacturing facilities in India and abroad, which are backed by its technology SPIC in Jordan partners.The group has manufacturing facilities in SPIC Limited is present in Jordan through its JV, Tamil Nadu for the production of antibiotics,APIs Indo-Jordan Chemicals Company Limited (IJC). and finished dosages. It is among India's largest Its partners in the JV, Jordan Phosphate Mines manufacturers of fertilisers, with a distribution Company, Jordan, and the Arab Investment network that spans more than 12 states and Company, Saudi Arabia, have holdings of 34.8 per 4000 outlets.The group's engineering services cent and 13.0 per cent, respectively, while the division operates through Chennai and offers remaining 52.2 per cent is held by SPIC. IJC was set transmission and distribution, and operation and up in 1992 for manufacturing phosphoric and maintenance services to its clients. sulphuric acids, and it began commercial production in 1997.The plant has an annual installed SPIC was awarded with the Best Technical production capacity of 224,000 MT of phosphoric Innovation Award in 2003-04 by the Fertilizer acid and 660,000 MT of sulphuric acid. For 2005, 62 IJC had a turnover of US$ 82.41 million, with a Ahlia Industrial Projects, and has successfully net profit of US$ 10.95 million. executed them. It has constantly kept pace with market requirements; recently, it ventured into SPIC in the UAE trading design-related software to cater to market SPIC has a JV with the Emirates Trading Agency needs. in Dubai, which is called SPIC Fertilizers and Chemicals FZE, Dubai.This JV company, a wholly Future Plans owned subsidiary of SPIC Fertilizers and Chemicals Limited, Mauritius, is installing a manufacturing Expansion Plans complex at the Jebel Ali Free Zone in Dubai, which SPIC plans to go in for a second train at the SA/PA has been relocated from Sri Lanka. It has a complex at its JV unit (Indo-Jordan Chemicals production capacity of 226,050 tonnes per annum Company Ltd) in Jordan, whereby the overall (tpa) of ammonia and 396,000 tpa of urea. capacity of phosphoric acid would get enhanced to 450,000 MTPA. Factors for Success Collaborating with a Raw Materials Supplier With the increased demand-supply gap for phosphoric acid in India, coupled with a lack of raw materials (rock phosphates) for its production, SPIC decided to collaborate with a company that could provide it with rock phosphates.The company, in its quest to search for new avenues for rock phosphate availability, reached Jordan. It entered into a JV with Jordan Phosphate Mines Company Limited (JPMC), which provides it with the rock phosphates, owing to the huge reserves in that region.As a result, SPIC gained from JPMC's strategic location by acquiring raw materials from it and exporting the manufactured phosphoric acid to India. Business from Oil Reserves in the Arab World SPIC provides its engineering services to sectors such as oil and gas, petroleum refining, offshore and petrochemicals.The Arab world, with its huge oil reserves, was the obvious choice for the company to set up its base for providing these services. Gulf SPIC has already bagged some major projects from leading companies such as Kuwait National Petroleum Company, Petroleum Industries Company, Sankyang Engg,Technip, Prosernat and 63.